Price Action on Naked Daily Charts

Hello,

I try to find good risk/return opportunities based on the most evident Supports, Resistances and Trendlines.

When the price reaches such areas, I open (or close) my trades if a good pattern like "Pin Bar" or "Engulfing Bar" prints at the end of day, New York close time.

I don't use indicators like moving averages, macd, etc...

I intend to explain the reasons for each trade that I post here.

EURAUD

Recently there was an up move from 1.4100 and then a consolidation phase just below the 1.4500 area, which is an evident resistance zone.
Today the pair closed above 1.4500 with a very bullish candle (with a short wick on its top) and now 1.4500 is supposed to act as support.
If the bull run continues, there is a good room to go until 1.4900.
A close below 1.4500 in the days ahead might suggest a bull trap. In this case, I'll consider to exit.

I placed two orders:

1. Market buy @ 1.46009, stop @ 1.4370, tp @ 1.4890 (risk:reward = 1:1.25)
2. Buy limit @ 1.4520, stop @ 1.4370, tp @ 1.4890 (risk:reward = 1:2.47)

EURAUD - update

In line with my expectations the pair moved strongly to 1.4800 and closed at 1.4775. Almost 200 pips from the entry point.
It's important to mention that 1.4800 may be a light resistance IMHO, so if I see a "pin bar" in the days ahead I will consider to close the trade.
There wasn't an enough retracement to trigger the buy limit order @ 1.4520, ok this happens. So I deleted it because there is no more logic for its existence in the present scenario.
The "market buy" order is now risk free because I moved its stop to break even.

Hi leliofx,....This is my first post....your thread is exactly what I've been looking for!! I am just starting out trading forex and am looking to fit it around my job. I love the simple and effective approach you take....I'm really looking forward to your updates..thank you!!

EURAUD - update

Today the pair made a new high at 1.4842 (only 50 pips from my take profit level) and found a good selling pressure.
At the end of day a pinbar was printed on chart, although a bit below the resistance.
So I don't know whether a further retracement is on the cards or the bullish momentum will resume.
Given this mixed situation, I decided to book some profit @ 1.4750 and stay aside.

Welcome Ranjitd,

By recording my trades here I'm willing to improve my trading skills. I hope I can help you in some way.
There are good tutorials about "Price Action" on the following websites: Nial Fuller and Forex School Online.

Good luck my friend.

Hi Lélio,

Congratulations for your iniciative.

Hello my friend DundiFX

Good to see you here too !

EURNZD - resistance break.

The pair closed above the 1.6660 resistance level and the price action today suggests that the bullish momentum may continue.
If the pair retraces and closes below 1.6660 I'll consider to close the trade, if given the chance.
The next resistance zone is seen from 1.7000 to 1.7250 .

My orders:

1. buy market @ 1.6765, stop @ 1,6540, tp @ 1.7000 (risk:reward = 1:1.04)
2. buy limit @ 1.6670, stop @ 1,6540, tp @ 1.7000 (risk:reward = 1:2.54)

EURNZD - stop loss hit

Unfortunatelly the resistance break was short lived and the position was closed at 1,6540.

EURUSD - BUY

Reasons for entry:

1. Uptrend since July 2013;
2. Well defined support and resistance zone from 1.3600 to 1.3650;
3. Bull candle formed Friday with its close price above the resistance zone;
4. Today the pair tested the support and found buyers.
5. USDIndex closed below the support of 10.650 and more USD losses in the days ahead are possible.

Orders opened right after NY close:

buy @ 1.3671 stop loss @ 1.3530 take profit @ 1.3800 ( risk:reward = 1 : 0,91 )
buy @ 1.3671 stop loss @ 1.3530 take profit @ 1.4000 ( risk:reward = 1 : 2,33 )

EURUSD - trade closed.

For the last two days the bulls agonized and today finally the pair is trading below the support zone. Given the current bearish bias, it seems that will close below 1.36, so I decided to close the trade at 1.3540 for a loss.

I'll be waiting for another opportunity.

EURJPY - Resistance break

Reasons for entry:

1. Well defined up channel as seen in the weekly or daily chart.
2. For the last 6 days, the pair was trading in a tight range and finally today it closed above the resistance of 140.00, which suggests that the bulls are in control.
3. A short term down trend line (red line) was broken too.

All these factors suggest that an upward move is likely in the days ahead.


First obstacle seen around 142.50.

Order opened right after NY close:

buy @ 140.84, stop @ 139.40, take profit @ 144.90 (risk : return = 1 : 2.82)

EURJPY - Trade closed

News from Europe this morning were worse than expected, the 140.00 mark didn't hold and the stop loss was hit.

This is my 5th bad trade in a row.