Monthly Archives: August 2009
GBP/USD Short Looking Good!
Just wanted to post a quick update on this trade that triggered yesterday. We actually closed out a portion at 1.6175, for a 175 pip gain. This pair is the biggest loser of the day so far (-1.04%), so it appears that other traders may have recognized the H&S pattern as well. The reason we closed a portion was because of the doji that occurred on the 5-minute chart, and the stochastic cross that occurred as well. See chart (click to enlarge) While this trade started out as a pattern on the daily chart, we chose to drop down to the 5-minute chart to manage the trade as our first profit target was hit. Our trailing stop for the rest of the position is now at 1.6275, which is just above the most recent area of resistance, and also represents a 75 pip gain. So basically this is now a risk free trade! To learn how you can spot trades such as this one, check out our inexpensive currency course! To get started with a live, free practice account, click here . none Continue reading
Trade triggered!
Well it looks like we didn’t have to wait very long for that possible GBP/USD H&S pattern to trigger a short sale. (See below) We are short this pair and looking for a major push down in the next day or two. Our stop is placed just above 1.66 (above the top of the right hand shoulder) and we’ll be trailing the stop. Check back in to see the progress of this trade. none Continue reading
Possible Head and Shoulders Pattern in GBP/USD?
A lot of times, especially during the summer slow months, there isn’t enough fundamental news to drive the markets and it’s times like these when the technicals can really take over. Just doing a quick perusal of some charts, I came across this: a possible head and shoulders pattern in GBP/USD. Have a look: As you can see, this pattern isn’t “perfect”. Yet it’s close enough to merit some observation in my book. I’m going to keep an eye on this pair and will be shorting the breakdown around 1.635 should the pattern complete. Stay tuned! none Continue reading
How to know how much a “pip” is worth for any pair!
Many times, newer traders ask me how they can find out how much a “pip” is worth for any pair. Some will refer to these as pip “costs”, others will say pip “values”, etc. Continue reading
Here’s what makes the Carry Trade so great!
Many people don’t really get the “carry trade” strategy and why it’s so great. Continue reading
Dollar’s rally is just about to run out of steam!
Even bear markets have rallies. But why would I refer to the dollar’s recent rally as a “bear market rally” and not a rally into a “new trend”? Because there is no technical indication that has surfaced to think otherwise Continue reading
New Zealand strength starts to emerge!
New Zealand is climbing its way up to the top of the pack of stronger currencies. It has THE highest CPI (year over year) and has the 2nd highest interest rate out there. With the high CPI readings, traders are starting to bet that they will have to hike rates sooner rather than later Continue reading
Don’t be fooled by Friday’s “dollar rally”!
The U.S. dollar got a nice “pop” on Friday as a better-than-expected NFP (employment) report came out. Continue reading
Canada’s central bank is “smoking something”!
Well, “intervention talk” is in the air again! This time it’s the Bank of Canada! Why are they so concerned with their currency? Well the USD/CAD exchange rate has dropped from 1.30 to 1.07 (2,700 pips) in mere months (5 months to be exact). This can wreak havoc upon a company that is trying to figure out how to hedge their currency exposure so that it doesn’t eat into the profits of their business…and the central bank realizes this too. Continue reading
How much influence does a government really have over its currency?
I’m often asked…”How much influence does a government really have over its currency?” I say, it has tons to do with it. A government really “sets the tone” for its currency in many respects Continue reading