Divergence Pip Range Trading

Got myself in a pickle with EURAUD but haven't given up yet, will wait for a result plus have a GBPUSD short trade running which is looking okay.

Exited EURAUD for a aggregate loss of 43 pips. Had to use a couple of entries and it never really pulled back enough to get comfortable. One pleasing aspect was the ability to cut the trade off when it was the right time and save further losses. I truly believe the hardest part of trading is cutting the losses short.

The upside is I had a nice GBPUSD short that panned out nicely for +30 and will post charts in the morning. A very late night here and time for some sleep.

Morning everyone (evening here),

Currently in a short trade on EURAUD, seem to be fighting with EURAUD the last couple of sessions!

EURAUD proving to be my 'bogey' pair at the moment.

Decided to exit the trade as it's getting late and it's showing no signs of dropping lower any time soon.

Thought the initial setup looked strong with price bouncing from near the daily open and a nice setup on the divergence. Price never really broke the cloud and it merely served as support and kept making higher lows. Re-entered at 1.3790 but this too was thwarted by the cloud and took that as my sign to exit. Not a big loss of 40 pips but frustrating.

Onwards and upwards for the rest of the week.

Small redemption on EURUSD with +13 right before bed.

Chart to follow in the morning.

Here's the chart.



Decided to wait a little longer into the London session for EURAUD to develop, feel I'm entering a bit too early and not allowing something more substantial to setup.

A very slow session thus far with none of the pairs I watch even reaching 50% of their ADR and GBPUSD/GBPAUD struggling to break 30% of their ADR. Hopefully it'll liven up soon.

A very, very tight session leading into the US session.

Very thankful for a trade on GBPUSD. Price had been whizzing between 1.2440 and 1.2415 for the majority of the day and took action when had reasonable confirmation price again had been rejected from near the daily open level. +28.



Going to stay up and see if the US news and can shake GBPUSD free.

A quick trade here right before US data with GBPAUD. Both GBPAUD and GBPUSD were lining up on support and post exiting the above trade, GBPAUD seemed good for a bounce pre news. Only 15 pips but a satisfactory trade for a reasonable night in the end.

Morning one and all, mid week again.

Some good movement during the Asian session on the back of positive AUS GDP and then Mr. Trump making his speech.

This trade stung! Missed the TP by 0.1 of a pip, always cuts the deepest, haha. I moved the stop to +4 so not a terrible result but it was agony to see it miss by so little.

GBPUSD was reaching a key area:



And the pip range chart:



And whilst typing, had a nice little win on EURUSD for 11 pips. On the London open, EURUSD dropped quickly right to a key area and felt there was an opportunity for a small bounce. As EURUSD is a good 30% less volatile than GBPUSD/GBPAUD the risk is therefore different meaning fewer pips can still create the same winning %.



Looking forward to a good session (hopefully!)

It's all gone very quiet again, very similar to last night.

As important as a winning trade is understanding when to avoid a trade.

GBPUSD a case in point. Post UK news, it fell very flat and formed a range between 1.2365 and 1.2380. During this time the AO wasn't producing a very big histogram which can be a very good warning sign. Prior to the quick drop, technically there was a divergence setup. However, based on the weak histogram and the need for GBPUSD to break the range, I felt it was more productive to avoid the trade and wait for a better setup.

Hello one and all,

Back from a very enjoyable 7 night cruise around the Pacific islands and ready to tackle March.

A trade a took pre NFP that took a very long time to play out on EURUSD. Seems Draghi's comments bolstered the Euro yesterday but it was approaching a good level of resistance and felt it was worth a risk:



And here's one of my favourites from the cruise:



Looking forward to getting back into things.

Hello one and all,

Just back from watching Logan. Very full on but a good movie. 8/10.

Had a trade running from just before London open on GBPUSD where it popped considerably higher against a weak dollar. Had a good exit for +28.

Plenty of movement already in GBPUSD and the potential for a lot more. It seems PM May won't invoke article 50 this week but I wouldn't be surprised to see a surprise announcement (see what I did there?).

GBPUSD dropped to a major low as highlighted here:



Whilst only a small trade of +10 pips, it seemed a logical trade right off the support and I'll more than likely look for a short later if we get a reasonable bounce higher.

Euro crosses a very different picture to GBP with relatively low volatility.

EURAUD popped to near session highs and created a nice setup. I was holding for 1.4085 but chickened out and exited at 1.4087 and sure enough, 1.4085 was hit seconds later

Final trade of the evening on GBPAUD. Price punched lower past its daily average range which is currently sitting around 112 pips for the last week. Price made lower lows whilst the AO (Awesome Oscillator) made higher lows to complete divergence. Again, I wasn't greedy with the profit and settled for +12.

Hump day is here.

For the last 2 days in a row, the Pound has experienced a swift move right on 6AM UK time. I'm not seeing any news behind the move but seems awfully coincidental the big move has happened at the same time the last two days.

Either way, it presented a great opportunity on GBPAUD this morning. Firstly, a chart for some context. GBPAUD rammed straight into the 4 hour 85 EMA. Bingo.



In a significant downtrend that's a great sign.

On the pip range chart, I waited for a sign the move was finishing and entered after a couple of bearish candles. Exited for +28.



Don't forget there are plenty of examples on my instagram also.

It's been a while since I've had a trade on EURAUD. A 4 hour trade and it certainly took its time to develop.

The majority of price action favours the downside and spotted a reasonable setup on the turn of the European open. Price was making lower highs whilst the AO made higher lows. Plus price was dancing along the daily open area which I often like to use.



Decided to exit short of my ultimate goal of 1.3994 due to price stalling around the 1.4000 handle and I was itching to book a profit. Price is nicely contained and could ultimately go quite a bit lower but I'm happy with my +20.

Final trade of the night on GBPUSD. Post UK employment figures, GBPUSD took a real dive on not that bad data.

Price reached a nice area of support and with the nice pinbar I took my entry. I was aiming for the BRN of 1.2200 and was pleased with +14 pips to close the night.



Plenty of action overnight with the FOMC announcement, good luck to anyone trading.