Also, I’ve just realised I probably shouldn’t be writing good morning since I have no clue when you check this article – but I’ve got my cup of coffee so life is good.
We got to update you on the trades I took! Well, first the trades that got closed.
May this position rest in peace, it finally reached my stop loss, which is fine, I know close to half my trades are going to be doing exactly that so it’s something I’ve come to terms quite a while ago.
Looking back, I am still happy I executed this position, it was a clear SF set-up in my book, slightly above the area of demand however it remains within the 50% additional area, there was a gorgeous monthly stack so all in all I’ll take this set-up every time it happens! Except if my data on these changes.
Pound Dollar was a quick win, nothing to complain about it, it reached my TP shortly after writing my watchlist here yesterday morning, so I’m happy with it.
I did not take a scale in opportunity since the 1h50EMA was too low as well as the 4h 50EMA.
Once again, there was a gorgeous monthly stack, an extremely clear double top pattern on the daily with a nice U shape (well a lot more flat than a u shape but you know what I mean! Maybe a the shape or a paella pan!
New Position: GBP/AUD
I executed a short position on GBP/AUD once it reached the area of supply I was interested in, it had clearly broken an ascending trendline after the volume was absorbed so I’m happy to be taking a position here.
The first weekly area isn’t really valid since the imbalance isn’t stacked but if we look further back we have a valid stack in November, this 4hour entry is another SF position for me, so let’s wait and see what happens.
Let me be frank with you, I have absolutely nothing else on watch for today, I’ll be only interested in a potential scale in opportunity on GBP/AUD. None of the other pairs seem ready to give us a position.
As you can see we are currently resting on the 1hour 50EMA which has been respected or at least taken into account multiple times in the past, so I’ll be happy to see it clearly break it and drop 🙂
Have a wonderful day & weekend folks & Speak to you on Monday!
Let’s dive straight into the trade update, I’ve closed a position and opened a new one.
GBP/CAD – 3R
The long position on GBP/CAD I had opened on Friday has reached its TP for 3R
I’m happy with it, there’s no “Oh I wish I had taken a bigger target” or “Oh I wish I had taken the 1h scale in opportunity”.
I executed according to my plan and it reached the objective so that’s what I’m all about.
There was a potential 1hour scale in, however, it took place at 10pm on Friday night French time – one hour before the weekly close so I decided not to execute it.
The price then never reached the 50EMA again so I did not have the opportunity to enter.
That’s fine, I place more importance on capital protection than on capital gains.
GBP/USD – Short position
Pound Dollar also gave us an entry opportunity last night at the close.
It’s not the prettiest four hour – however the daily and the monthly is rather gorgeous.
In terms of 4hour we saw a double top formation after having formed a clear U shape on the daily so let’s be patient and see what happens 🙂
Now let’s jump into the
Yep I’m mentioning CADCHF just because it’s forming a double top on the 4hour, I’m not sure I’d say the zone is fresh anymore, it took too long to form the double top formation so not a big fan I’ll admit.
Just mentioning it so you have it on your radar
Pound Aussie is approaching an area of supply, but let’s be honest since I’m in GBP/USD I’d prefer if pound would drop like a stone instead of reaching it. However I’m not in control of the market so time will tell.
I’ll be ready to execute a short if we have the opportunity!
That’s it for today!
Oh and if you could send vibes for EUR/JPY to drop I’d be grateful 🙂 Been a while I’ve been in this position ahah
Trying to find things to share on my watch today but seems like a rather chill day that will be focused on backtesting
While it reached the area of supply I am interested in yesterday and then moved lower without giving us an entry opportunity, it’s worth noting that it may form a double top, time will tell 🙂
Pound Yen broke slightly above the area of supply I was looking at for a potential short and is now stalling, I’m okay with it stalling for 24hours, but I know how my script is coded and I doubt I’ll get an entry sadly.
Pound Dollar is also worth mention – we reached the area of supply, let’s see what happens now! We still have quite a lot of room inside the zone so it may head higher before reversing.
Dollar Canadian has spent too much time going sideways for me to be interested in a long opportunity sadly.
I’m in a really good mood today, I’ve just found a lovely new musicians I’m really jamming to (Gilsons) & really enjoying my new book (Accelerating Excellence by James King)
Anyway, enough talk about my life when I just took a trade, it’s time to jump into it
I just took a long position on GBP/CAD
We have just reached the low of the recent correction, I’m sure a lot of people will be looking to take longs from this area, so it’s not guaranteed.
We have a clear weekly stack (not fresh) that dates back to late June / early July.
This area has already been used as an area of supply quite a few times in the past, however this zone is fresh – it was drawn on the 11th of December to represent a counter zone.
Really enjoy this set-up. Let’s see what happens.
Oh and did I tell you guys I was no longer in my NZD/JPY positions yesterday? I think I did, but in case I didn’t, I’m out of all three positions for -1R (2 at BE and one for a full loss)
No regret on those losses, I know the rejection of a phase line has an impact on my performance but I can’t come up with a clear number from memory so it’s on my list of things to do.
Anyway, to recap
I am long in GBP/CAD and short in EUR/JPY.
Let the pip gods be on my side 🙂
I love my job, I love trading I love understanding how currencies moved against each other, fuck me I’m grateful for this.
Canadian Swiss is on my watch for a potential short play.
We just reached the area of supply – we probably “pipped” it, however we didn’t get an entry signal on this pair this morning, so let’s wait and be patient, we may get something later on today.
The area of supply must be clear to everyone that’s been following this blog for a while now, it’s a gorgeous trend line break which also created its own weekly area of reversal, all in all, I’m liking this set-up.
If an opportunity is presented to us I’ll be looking to enter.
Euro Kiwi reached the area of demand yesterday and saw quite a strong move higher from it, it remains on my watchlist in case it forms a double bottom today and gives us an entry opportunity, let’s be patient, rushing in won’t help us.
It’s a question of patience 🙂
Euro Dollar is also on my watch for a potential short today.
We recently broke out of an ascending trendline, which in turn has created an area of supply that has a weekly stack, so I’m happy with that 🙂
Let’s see if the price reaches it and if it gives us a script entry for a potential short play.
Dollar Canadian is probably the last pair I’m watching for today, we have reached the zone from 2017 – which I’m quite surprised I had drawn it, I’m not the biggest fan of those long term zones, but it’s clear that UC is in need of a pull back 🙂
The quaterly chart of UC is also quite interesting – it isn’t giving us a clear entry since there’s no fresh zones, however we’re forming a double bottom, will we see another leg up? Maybe
On the monthly we have another gorgeous setting of two zones that are stacked on reach other in this area, so let’s just put it this way, the demand will be here in this price range
The only problem I have with this chart is the fact that we’ve already had two bullish candles on the 4hour which means I’m not very likely to see a script signal to allow me to enter the trade.
I only follow my trading plan, so I won’t be executing a set-up that doesn’t fit my trading plan, but USD/CAD is rather pretty.
Let’s see what happens.
Oh and, I’d be happy if we see the CAD just drop like a stone and UC gain a lot of value since it would say that my GC position is paying off, so whatever happens I’ll be happy