Cool Runnings intraday swing trading

I was away from my desk today and missed this this consolidation break down for a nice 200 pip run. Such is the life of a Forex trader..... just remember, trades are always there, patience in waiting for the right trade pays off. To me, this was a very nice set up. Sorry I was away from my desk!

Consolidation made it's squeeze going into the Asian session. Broke the short term trend that formed the wedge, and then broke the psych level of 149. These are the breaks I like to look for. If action holds below, this when I'd enter the trade, and set a 50-60 pip stop. Once it moved 50-60 pips is when I move the stop to break even. Then just follow the price action down. At 148, would have cleared half my entry for 100 pips. For me, when you have 100 pips in hand, take it. Depending on price action, I may have cleared all, but this was making a nice clear run down. I honestly can't say when and where I would have cleared the rest, but it did turn out to be a nice move from the consolidation break, and break of the bull trend.

Now it is ranging between 147 and 147.74. Next key move might be it breaking back above 147.74, just before, or at the London open. Might want to keep an eye on it.

It made the break above 147.74, and is holding above the psych level of 148.

It made an attempt to get back to 149, but didn't quite make it. It amazes me sometimes how the trendlines hold true. See where it came up to the trendline, and held it there? (Red arrow) It maybe a sign of a reversal of the trend, headed to the downside. Could be temporary, could be a longer term trend. If it holds below the bear trendline into NY session, it could make a nice move down, in the short term. Just keep an eye on the news calendar, keep your stops tight, and protect any profits around news time.

Price started to consolidate during the NY session. With a possible move wanting to break to the upside going into the Asian session. I drew 2 down trendlines. The red line better reflects the squeeze during the past 10 hours. The present hourly candle has broken that line and is flirting with 149. Watch for a break above the yellow down trendline, at the 149.08 area. It could carry back to that high of 149.83, and if it moves past 150. 150 could become a new support.

A break down to the 148-147 level is possible if 149.08 proves too strong of a resistence level. Watch the price action in relation to the trendlines.

Watch for move after the top of the hour. Next candle may make a move.

JPY Monetary Base y/y

Description: Change in the total quantity of domestic currency in circulation and current account deposits held at the BOJ

Market might be waiting for the news before any significant move happens.

It's making the move, I talked about earlier, since passing the 149-149.08 resistence. Key level of yesterday's high at 149.83, then psych level of 150. Hope some of you were able to use the info, and are up a few pips.

I cleared half my position with 40 pips and the rest with 10. Price got whippy rather fast. Looking at GBPUSD, and GBP is taking a small dive, and lost ground on the JPY too. Hope you followed the advice on preserving profits by moving stops or setting TS (trailing stops). Will be away from my desk until just before London. I have my kids tonight so might not get a chance to post. Have a good night/day.... wherever you are

thanks fx dad for the info

Nice to know that I'm being read! I'm actually having a lot of fun doing the post, so I'm glad they might be of some help.

Looks range bound for now, stuck between 148.70-149.60. No consolidation (range not squeezing smaller). Though there is a sign that the range might be tightening. Look at the tops of the candles and wicks for the past 8 hours. They are starting to trend down, and the bottoms are coming up, and a triangle pattern, showing the "squeeze may start to develop. Usually, it will develop before the London open, and the Asian open. Today, it is moving more "sideways." I'm sure it is because the markets are waiting for the BOE Rate announcement that happens in just under 4 hours. Watch for the range, or consolidation to break out then. It is expected that the rate will remain unchanged, but if they surprise everyone, that is when the big moves happen. Move will be quick, so don't force a trade, because spikes during news events can happen in a matter of seconds. Let the news announcement happen, and then watch the price action. Just be careful, as PA (price action) can get very whippy after major news.

I've moved the yellow "up" trendline to reflect the recent move sideways. and left the earlier red trendline, as it seems to be holding true. Notice how the activity that earlier broke above the red trendline, is now riding it back down and is now bouncing off the yellow trend moving back up. Watch for it to tighten up. Range lines are drawn horizontally in yellow. Watch the Range, and for the forming of a consolidation squeeze. Be cautious as the BOE rate announcement will be out at 12:00 GMT. If you enter a trade, set your stops before the announcement! You don't want the news to take you in the opposite direction. I've seen news move the GBPJPY over 200 pips, in seconds.... so know that is possible.

My kids are spending the night with me, Daughter is 6 and son is 9. I've got to wake up in 7 hours to get them ready for school. So I won't be awake for rate announcement. Hopefully, I'll check in tomorrow.

Have a good one!

Just a follow up..... GBPUSD has just broken down, out of a range. USDJPY is forming a consolidation wedge....... Watch the action on those two paris and it may give some insight to price action on the GBPJPY.

u must of been at the computer for an hour to write that

Nah, I type fast..... 15 minutes

I was getting ready to shut down for the night, and noticed a nice consolidation forming on the EJ. Something to watch while the GJ does it's thing....

Euro rate decision is coming out later also. 45 minutes after GBP rate decision. So EURJPY may not make a definate move until then..... If price continues to move sidways in a tight range, adjust trendlines to compensate.

Oh yes fx dad, your posts are definitely read. Thanks very much for the help, you are doing a good job here.

Just start following your thread. I think you have something good going here, very nice of you.

Tell me though, do you use multiple time frames, if not which time frame do you trade?

Thanks Jermy365! I almost exclusively use the 1hr to watch for setups. I'll often use the 4hr and daily charts to look for prior support and resistence levels.

Broke the Range and made a decent move, enough to capture a 100 pips. There could have been a load of bank ordered shorts just under 151 in anticipation of the rate remaining unchanged would be a disappointment. I pointed out on the chart, areas of support/resistence in this area where it is slowing now. Notice how the fall landed right back on top of the red trendline and is holding and the bottom of the candles are following it down slowly. A sign the down trend could continue. Hope some of you were able to use the anticipated move to capture some pips.