Spider's Den

Yes ... near 1.4185 (which is my DPP - doesn't matter) or somewhat around 1.4208 ...

May be capped soon there ...



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Just for the record, I shed 1/3 of my account last night. Pretty sure everybody knows the shitty feeling, I even started smoking again...
Needed the whole day to collect my thoughts and find the reason why it happened.

So today only low risk trades for me, NFP and minilots... like in the first weeks of trading

Beautiful moves ...

Ooops !


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There's nothing wrong with smoking ... but the other story is not soo nice ...

Always play with your BE ... always adjust your BE ... always be active ...

In and out ... or like Trading Cat uses to say "Rein und Raus" heißt das Spielchen ...

Don't mary your positions ... be active ...



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UK numbers a nonevent ...

So we keep on playing ... as if we are shocked by Trichet's remarks from yesterday ...



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Europe- The main trading session and the HUB of Forex trading.

FRANKFURT opens at 7 AM. Strategy: Exploit the main ASIA direction. If Asian trend was up we can consider long trades, if it was down then look for short trades.

LONDON opens at 8 AM. It is the HUB of Forex trading. 33-35 % of all Forex volume is traded in London. That makes London the highest volume trading central - 33 % of all FX trading... Breakout strategy is exploited.

!!!PROFIT TAKING!!! 11 AM -12 PM. This is important in my trading strategy. London noon is usually when profit taking takes place. Being mostly a trend follower I usually close all my positions before PROFIT TAKING. For you that dont know, profit taking is basically a retracement, but when London closes its positions that may lead to a zero effect. Zero effect is a complete and sudden retracement where price may end up where it started at the beginning of LONDON trend. If that is the case usually they go for stops thus setting up a trap where someone could think that REVERSAL is taking place. Reversal is considered a trend change ( I may talk about positive and negative reversals in RSI strategies).

CONSOLIDATION TIME -New York 12 PM-1 PM ( extending to 1.30pm)

After some profit taking we will experience a decrease of volatility and momentum. Momentum is THE MOST important thing in forex as forex is not a centralized market so there IS NO volume in forex, only MOMENTUM.

NEW YORK 1 PM- Some volatility is expected but its too low. Positioning and scalps are taking place. Strategy: Either scalps or following the main London trend with positioning for CROSS SESSIONS

CHICAGO 2 PM- Some counter trend moves may be expected as Wall street- Dow Jones index opens up

DOW JONES- WALL STREET 2.30 PM This tend to be one of most volatile trading hour after the London session. DJIA ( Dow Jones 30) tend to give a momentum lift and usually after the US news it drives EU pair. Positive index would usually drive EU pair up and vice versa for negative.

LONDON and FRANKFURT final profit taking and close 4PM-5PM. I would advise profit taking from every position between 4 an 5 pm as those 2 markets are closing and take the profits. The price tends to reverse.

US session- Either a trend continuation ( after before mentioned profit taking ) trend resumes in its previous direction or ranging.

Trying to poop up a little ...

Looking forward to this T.
Thanks

Very nice survey ...

Yes I agree in most parts ... only late US session ... there may be observed some counter moves afterwards ... when Europe Markets has closed its doors and floors ...



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This survey is that superb ... that you should post it every Friday ... as a reminder for our fellow traders here !





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Yes but those counter trend moves mostly tend to be in range that London has previously set up.

Thanks Mercy, next time I will write about when to AVOID trading.

What scenarios can we expect after NFP?

If ADP is confirmed and we see some slight improvement (90-100K), this would put some pressure on troubled Euro.

Above 100K which is highly unlikely, would definitely be the signal to long the greenback across all pairs except precious metals. In that case E/U could end the week below 1.3840

Anything between 80-90K would give us the usual jittery-jattery yakady-juck with hundreds of pips up and down until emergence of a clear direction hours later. Could go either way but repeat of yesterday is more likely.

Below 80K, I don't know. All I know is I wont long gold like I tried yesterday. Will probably go for the Swissie

EU may pop up now ...

Buy order at 4170.

I expect it being capped there ...

Scalp trades.

The 50% fibo of 1.4577-1.3836 hi-lo sits at 1.4206 and conveniently, yesterday's 1.4371 high to today's 1.4055 low 50% retracement points to 1.4213
Those two might mean something to some

Yes ... has not been the last upside attempt ...



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