Trading week 37/14

This week was all about euro getting much weaker and dollar going up. There is no discussion – trend on eur/usd is down. Still, I ended week by going long on this pair. This is very short term approach and many of this trades are daily (I close them on same day). Why I decided to do that? eur/usd stopped at weekly S1 level and monthly S2 pivot point. Especially this monthly S2 is important. Price stopped here, formed triangle and ended week with breaking out. Maybe it’s false signal, but in short term bulls may try to buy from these levels.


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Stock picks – 25/14

I blog mostly about Forex, but I also invest in stock market (but with longer approach). Below are some interesting examples. Remember, it’s not buy/sell recommendation. I simply focus on charts in this post.

ATVI – Activision Blizzard

Nice breakout above resistance line, retest and move continuation. Uptrend on Activision Blizzard is strong, so it is possible that we will see price at higher levels.

daily atvi - activision blizzard

daily atvi – activision blizzard

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Paper trading – what is it?

We talk about paper trading when you are trading with virtual money. Years before simulators you simply put trades on a piece of paper. When you felt ready to trade on real account, you made a switch. In 1930’s it wasn’t that easy to open brokerage acount, besides fees for opening and closing trades were also high. Paper trades were good solution – you were able to learn how to trade without losing real money. Continue reading

Trading week 21/14

During last week usd/jpy broke down below support at 101.20. I look closely at this area, because just below is another important support at 100.78.

support lines at daily usd/jpy chart

support lines at daily usd/jpy chart

For now there was a strong move down and right after that was bounce back. As you can see, usd/jpy returned from 138.2% Fibonacci extension line: Continue reading

Ichimoku Kinko Hyo trading – tutorial

This is a practical guide which will help you to use Ichimoku in your trading.

Ichimoku Kinko Hyo is a Japanese investing technique. It provides all – trading signals, resistance and support levels. It is very different from normal western techniques such as trading with moving averages, but after a while you should understand it easily. It was created around 50 years ago by Japanese journalist Goichi Hosoda. He started to work on Ichimoku before World War II. To the West, this technique is know from 90s, just like candles it was unknown for many decades.

First, let’s see how Ichimoku is build. Later we will check how it can be used in trading stocks and Forex.

Ichimoku components

Ichimoku Kinko Hyo is build from 5 averages (notice – these are different averages than standard moving average that you know):

  • Senkou Span A and Senkou Span B – area between them is called Kumo, or simply just Ichimoku cloud. This is a resistance and support area
  • Kijun-Sen – longer signal average
  • Tenkan-Sen – shorter signal average
  • Chikou Span – this average is shifted back by 26 periods

So when we put this together, we’ve got a ready investing system:

ichimoku components

ichimoku components

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Renko charts – how to trade with Renko

This is a practical guide which will help you to use Renko charts.

Renko is another kind of candles. The most popular are candlestick charts, but there are many others types of charts created in Japan. There is for example Kagi, Three Line Break or Renko chart. Lets focus on Renko.

How Renko chart is build?

Chart is constructed by placing a brick once price surpasses the top or bottom of the previous brick by a predefined amount. Renko chart is time and volume independent – if there is no condition to draw another brick then chart may stay the same for days (until condition to draw another brick is created). White brick means the move is up, black the move is down. With Renko it is easier to spot trends and avoid trading when market is flat.

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Trading week 19/14 – examples

It was a long break, but from now on I am back. First of all, thank you for your kind emails. You really liked guide to Fibonacci retracements and Fibonacci trading. That is great. I plan to post more educational content.
Today let’s have a look at some good price setups which worked nicely.

On eurusd it was a pretty nervous week. Everyone was talking about possible move to 1.4. Indeed, buyers tried to force that level, but we saw a selloff from here. In the same time there was an ECB meeting and comments from ECB did not help euro.

eurusd 4 hour chart

eurusd 4 hour chart

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Government shutdown – what is next for SP500?

The next week may be very interesting for traders. Government shutdown topic is back again and situation in the markets may be not clear (so possible strong moves in both directions). When we check S&P500 on monthly chart we can see that area around 1690 points is a strong resistance. It looks like September will be a third month in a row, when price fail to close higher than 1690. On top of that add the whole government shutdown. As I said – it may be nervous. On the other hand, it is possible that after some good news price will close above that resistance.

monthly sp500 chart

monthly sp500 chart

Basically that is the whole news for now. I expect some good volatility on lower time frames and I will try to catch some good moves on both e-mini SP500 and eur/usd. I will write another post with trade examples.

Great day on eurusd

Today was a great day on eurusd, but not so obvious at first. Let’s look at bigger picture. SP500 cut Italy’s rating and eurusd tanked – that was yesterday. Add to this fact that eurusd is in a downtrend so it is hard to take a long position. In a long term yes but when you are daytrading then you can take a risk. Today was a good day for that because on lower time frames we saw an uptrend and some corrections down.

In the morning there was a great setup – move up, correction to 61.8% retracement and 55 simple moving average and then move up to the extension line. Pure and simple.

eurusd - 1st good trade opportunity

eurusd – 1st good trade opportunity

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