- This article, written by Patric Tengelin is taken from the FX Trader Magazine (JAN/MARCH 2013 issue).
In the stock market, the ultimate stock to day trade is whichever best fits your trading style and produces enough profits to buy 100 new shares faster than trading any other stock. We are market technicians and our favourite FX pair is the EUR/USD on the 30-minute chart. Technical analysis is not so much about the actual lines on the chart as it is trading the reaction of other traders at those lines.
By the end of this article you will have a clear understanding of how to eliminate the guesswork in trading and always be on the right side of the market.
This particular strategy will appeal to reactive traders who do not front run price action. The entries will be inferior but the hit rate superior. The equity curve will not be subject to the wild swings s o m e t i m e s experienced by anticipatory traders who constantly try to pick tops and bottoms but before we get into the meat of the strategy and when it is most profitable we need to make a few assumptions. We will list days when you should not trade at all and then talk about the time of day when you should look for setups. You will also learn about the key numbers for the EUR/ USD and how they constantly show up as support and resistance. Throughout the article we will give examples of the mechanics behind price movements and how to interpret price action, but let us first talk about indicators.
Editors’ Picks
EUR/USD accelerates losses to 1.0930 on stronger Dollar
The US Dollar's recovery regains extra impulse sending the US Dollar Index to fresh highs and relegating EUR/USD to navigate the area of daily troughs around 1.0930 in the latter part of Friday's session.
GBP/USD plummets to four-week lows near 1.2850
The US Dollar's rebound keep gathering steam and now sends GBP/USD to the area of multi-week lows in the 1.2850 region amid the broad-based pullback in the risk-associated universe.
Japanese Yen consolidates near multi-month top against USD as traders await US NFP report
The Japanese Yen bulls retain control amid worries about the economic fallout from Trump’s tariffs. The risk-off mood and relatively hawkish BoJ expectations further lend support to the safe-haven JPY. The USD selling bias keeps USD/JPY close to a multi-month low ahead of the crucial US NFP release.
Editors’ Picks
EUR/USD accelerates losses to 1.0930 on stronger Dollar
The US Dollar's recovery regains extra impulse sending the US Dollar Index to fresh highs and relegating EUR/USD to navigate the area of daily troughs around 1.0930 in the latter part of Friday's session.
GBP/USD plummets to four-week lows near 1.2850
The US Dollar's rebound keep gathering steam and now sends GBP/USD to the area of multi-week lows in the 1.2850 region amid the broad-based pullback in the risk-associated universe.
Gold trades on the back foot, flirts with $3,000
Gold prices are accelerating their daily decline, steadily approaching the critical $3,000 per troy ounce mark as the Greenback's rebound gains extra momentum and US yields tighten their retracement.
Can Maker break $1,450 hurdle as whales launch buying spree?
Maker holds steadily above $1,250 support as a whale scoops $1.21 million worth of MKR. Addresses with a 100k to 1 million MKR balance now account for 24.27% of Maker’s total supply. Maker battles a bear flag pattern as bulls gather for an epic weekend move.
Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.
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