Do You See A Trade Here? (A Professional Stocks/Futures Trader Is Coming To Forex)

Hi Everyone,

By writing that I'm a professional Stock/Futures trader I mean that I'm constantly making money for a few years now.

Recently I decided to really get in to the forex market, I'm trying for a month or so to find some strategy or at least a start of something. I know that one month is usually not enough and I'm ok with it, But in my case, I have all the basics that it takes because I'm a profitable trader for years now, So hopefully you guys will help me a little bit.

Before my questions I think that It's important to mention that my style of trading is DayTrading and I'm using pure technical analysis without any additional indicators at all.

Question One: When I'm trading the NASDAQ, I'm looking at the S&P500, RUSSELL 2000, Dow Jones. And when I'm trading the DAX Futures, I'm looking at the EURO STOXX 50 index.

Now, I want to know what to look at when trading forex. Right now I'm looking at six charts: EURUSD, EURGB, EURJPY, GBPUSD, USDJPY, GBPJPY. I know theres more charts with the CAD and AUD and CHF etc... But I don't want too many charts for now. Is this good enough ?

Question Two: If for example I see that the EURUSD is down, It mean that the EUR is weak at the moment and the USD is strong ? Or maybe It can be that only one of them is getting weak or strong ? Also, Do I need to look at other pairs to confirm that ? I hope you understand what I'm trying to understand here. I can give an example from my world: When I see that the S&P500 is up I know that the NASDAQ is more likely to go up, It's that simple.

Question Three: When I look at one of the products that I'm trading today(NASDAQ, S&P500, RUSSELL 2000, Dow Jones, DAX, EURO STOXX 50), I know within a few seconds if theres a trade for me or not. And 95% of the time I even know if there will be a trade for me tomorrow.

Personally, I believe in "Pre-Planned Trading" When the trader know specific price levels that he or she is going to enter a trade.

If it's not an effort, Please explaine where do you see an opportunity on the chart attached to this post (or upload your own) + Explain what are the other conditions that you wanna see in order to take the trade, For example what do you wanna see in other pairs at the same time or if you have a specifit time that the market is more likely to be with more energy etc...

Sincerely,

Johny-Raa.

Try getting a USD Index chart up as well.

Welcome to the world of forex. While I don't have a chart to upload for you as yet, but I do think a comment on your chart would be required.

That big drop is probably what has you going, oh yes, is there something that could have predicted that, some trendline, or indicator etc.

In short, no. Unless you had Trichet's live telecast of his speech. And that still would have beent tricky, because NFP came out at the same time (bad numbers for usd). The big drop was caused by Trichet saying/hinting that there was no bias towards more interest rate rises. Bang, sell eur/usd. Nothing to do with usd strenght, but more to do with eur weakness.

Just thought it migh help.

Regards,
K.

If Gold and/or Oil are rising the Euro will usually be rising as USD is losing value, so that's a good indicator for you as to where the strength/weakness is. Also examine the DAX/Stoxx vs EURUSD and FTSE vs GBPUSD, see if you pick up on the relationship.

Regarding your chart, why not simply try to adapt your strategy on the NQ to FX ?

Hi JodyOng, Thank you for your post.

By saying "USD Index chart" Do you mean the "DX A0" Like the chart I attached ? What the exact chart please ?

Hi kermut, I appreciate your comment.

However, You didn't understand me. By asking if you see a trade on the chart I didnt mean in the past, I meant a trade for the near future.

Thank you very much bobblong, I will try to pick up on the relationship of the products you suggested.

About my strategy on the NQ's, This is the first thing I tried on all the pairs - but no luck. The NASDAQ is totally different than forex.

Well in that case, you're going to have to stare at charts for a while to get a feel for the rhythm and character of the different fx pairs. Volume won't do you any good as it is not a centralized figure.

I don't know how you trade, whether you need very precisely timed entries or not etc, so where you may see a trade I might not and vice a versa. FX is pure sentiment driven, so knowing what the sentiment is, supported by exchange rate activity, helps construct an educated guess for direction. I do not rely on uber-precise timing so I start with very small portions of the total position and if I get follow through I pile it up.

Refer to thread "Technical Analysis Fallacy" in Forex Discussion and James16 Chart Thread in Trading Systems.


Rgds.