I’ll admit, writing these daily watchlist before coffee is quite hard, and yes, a FX trader doesn’t necessarily need to be drinking coffee! Big new eh.
My AUD/NZD scale in from 2 days ago, the one I explained yesterday, is now closed for -1R, it reached my stop loss.
Wasn’t the prettiest set-up but it fits my trading plan so I’m happy.
That being said, it did make me think about the validity of different set-ups, so I did some data analysis to see if there was a pattern of scale in I shouldn’t be taking.
On my drawing the black box is the 4h entry, the grey one the 1h scale in entry.
So in 1/2 the 50EMA is above the 4h entry, in 2/4 the 50EMA was below the 4h entry.
In 1 & 3 the 1h scale in was taken above the 4h entry, and 2/4 below it.
Was interesting, it reinforced my belief that the set-up 4 is definitely not worth it, out of the 14 trades taken that followed this plan, only 3 were profits. I usually want to take a scale in when the price is confirming my bias, not if there’s no additional confirmation since the original entry.
Hope you guys enjoyed this quick behind the scene work explanation!
Now onto the important stuff, my daily watchlist!
Daily Watchlist
AUD/USD
Still on watch from yesterday, we nearly reached the zone – we barely barely touched it, so it remains fresh in my eyes, however we didn’t reach the weekly stack, so there wasn’t any trade for us.
As you can see on this screenshot, the zone I’m interested in begins at 0.6995 when we adjust it to the weekly stack.
We’ll see if the price reaches this level, and if it does, if it gives us an entry signal.
https://www.tradingview.com/x/C15EPQ8S/
CHF/JPY
As we can see on the left, there was a strong supply area where the price currently is, it lead to 5 move lowers, a lot of support and resistance traders will want to be buying long.
I’ll be waiting for the zone I have drawn here (below 113.5) to be reached before looking for a potential long.
Once that area is reached, most of the support and resistance traders will be getting out of their positions which will give us liquidity to enter in the trades to the upside.
Let’s see what happens
https://www.tradingview.com/x/Ud6b66DZ/
EUR/AUD
Euro Aussie is another pair I mentioned yesterday but didn’t go into depth about it since it still had a decent amount of distance before reaching the zone
This zone, a counter zone of a counter zone, is something I’m keen to see play out, I wouldn’t be surprised if we saw the price move lower today and then back up on Monday, we are currently at the upper limit of a wedge/correction pattern so people that trade patterns and market structure will be looking for shorts.
We want to be shorting this pair when they are forced to buy out from their positions, I believe this zone is valid, so we’ll see what happens
I will obviously wait for an entry pattern before taking a trade
https://www.tradingview.com/x/2Qx3JwBS/
GBP/JPY
As mentioned more or less for the entire week, I’m still looking for a potential GBP/JPY long play, time will tell. I’m not going to spend too much time talking about it, feel free to check out my previous daily watchlist for more details
To be entirely honest, I’d be more than happy if the Pound would just explode to the upside 🙂
Here’s a screenshot of my GBP/JPY chart
https://www.tradingview.com/x/LbRyJGJv/
Book wise…
I’m going through my physical version of meditations at the moment to be able to take notes and refresh my memory.
At the same time I’m reading a fun book (One from the Jack Reacher series), waiting on the 29th for the Lives of the Stoics to be released 🙂 The three chapters I got to read from pre-ordering it were good so I’m looking forward to it!
Didn’t especially enjoy the beginning of the Malcom X biography so I stopped reading it, it was recommended by several people so I’ll give it another try next month!
Tweet wise…. Here’s my favourite of the day
Short and sweet, I hope I didn’t waste your time with this daily watch!
Feel free to contact me on Twitter too! Probably more responsive there than IG these days
Bullish on Coffee - a Forex Trader Blog 