A-B-C-D Trade - page 210
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Viewing the Money In Motion currency trading show, we had some fun in taking a couple of their trades and adding our views.
Bear in mind that they are position traders that also use fundamentals.
About a month ago, one of the featured trades was a short on AUD/NZD. We narrated an intra-day version of that for profit.
The Singapore Dollar/Yen trade featured 2 weeks ago is updated below in some detail.
The attached chart is 4-hour Singapore Dollar/Yen (SGD/JPY). A BUY trade scenario was featured on Money In Motion. We placed our own touch on this trade, and identified 5 exit levels, which are labeled.
Pink arrows point to start of that Aug 22nd week and starting point of trade. Our particular chart showed a gap up at open price of 63.21.
So far, price hit our first 2 exit levels precisely (within 1-cent). The price of 63.72 was reached Aug 22nd 01:00 GMT. The 2nd TP level of 63.91 hit Aug 24th 20:00. Currently, still facing resistance at MML 2/8th price of 64.06.
We pulled trade on Aug 23rd at 63.63.
Note that these exotic cross-pairs not only charge more in spread, but also more in swap fees if going in certain direction. Read up on swap fees.
A trade can cost a lot in swap fees PER DAY. Therefore when sideways activity means piling on the swap fees, it can outweighed the reward potential. Many brokers, including MT4 platforms, charge triple the normal swap fee on Wednesdays.
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Last Friday's show included a short on EUR/USD. We'll expand our view about that, but with the NFP Friday, it's not something we would do. Otherwise, they did have another trade post-NFP: shorting the USD against the Mexican Peso.
Attached is a split-screen on the CFD NAS100, which tries to mimic the NASDAQ 100 Futures.
On the left is a 30-min chart with 2 fib extension plots.
Plot #1: Low = Aug 30th 2201 High = Aug 30th 2249
138.2 = 2268
Plot #2: Low = Aug 31st 2222 High = Aug 31st 2250
161.8 = 2267
The pink arrows are, once again, from the 15-min Demark TD Sequential turning points.
We can see price bounce off 1st revisit to 2250 level on Aug 31st. It only retraced 23.6% to 2243, as move was strong.
Both fib plot's extensions per above was the high at top Aug 31st 14:00. Both peaks had BAJA bearish divergence, as marked. The 14:00 peak was a short opportunity due to the 2 fib extension levels coinciding, along with the divergence.
The chart on the right is also 30-min, with PSQ9. We inserted the Mars 315-degree, which caught the 14:00 top. We don't use 45-degree intervals as it adds clutter onto the chart, but can insert it anytime.
The sell off was strong, retracing 100% by 18:30.
EUR/AUD on a sell is a little pricey on the spread but can be rewarding, including overnight swap in favor of AUD.
EU Data at 08:00 ahead.
07:00 European open once again like yesterday, see pressure on Euro. Definitely acute concerns with Greece/PIIGS.
Split-screen,
left is EUR/USD hitting 200% extension based on yesterday's European high/low plot. Asian Low = 1.43530 to 200% 1.43197.
right is EUR/AUD arriving at 138.2 extension.
France PMI comes in below 50 at 49, after Italian was 47. Germany missed projection. This is becoming a slaughter.
Pic of extension by 3 Euro pairs:
EUR/USD to FE 127.2
EUR/AUD to FE 127.2 and looking for more
EUR/CHF to FE 127.2 (moved plot), late start but caught up with a vengeance
Hello Friends
I can get good advice about gold trading?
Follow-up on 3-pair split screen, as the U.S. session joins the party.
EUR/USD whipsaws to the FE 200 and bounces above FE 161.8 in current position. Totaled 137 pips to downside during European.
EUR/CHF to 1.1333 near FE 161.8 and 220 pips from 07:00 European open.
EUR/AUD to reg 161.8 of 1.32648. Moved reg extension plot using Point C of ABC as High and 09:00 pivot Low 1.33300. Decline from 07:00 was 137 pips.
Hello FriendsI can get good advice about gold trading?
We comment on XAU_USD, which mimics gold futures. Which do you trade, futures or spot?