My Chart setups

I often get emails and advice on chart setups. First of all, I never use any charts under 5 minutes. Stay away especially from 1 minute charts. 1 minute charts just are too busy with price action all over the place. I am a short to medium day trader. I use 5 and 15 minutes for all intraday trading, I use the longer time frames to determine trend.

The main chart I use is the below chart, which I have set up with different oscillators and dynamic support and resistance indicators, as well as different moving averages.

My secondary charts are just as important, but only use them on the 5 minute time frame. It is a set up I came across on Forex Factory one day, and have had such good results with it that I have used it as my primary trigger. I will go into how it works another time.

With this setup, I had a great trade short on the EURJPY at 118.60 to 118.40 for a quick +20 pips.

What effect will the NFP have on the Aussie Train

Good morning everyone. As predicted the Aussie climbed to more dizzy heights yesterday, coming within 30 pips of the 1.0400 level. I got short at my first short level at 1.0350, and am currently in profit at about 30 pips. I am looking for the AUDUSD to test the 1.0400 area again before retracing all the way back to 1.0200. In any case if it hits 1.0400 I will be taking another short, or if it hits 1.0200 then I will unload the trade I am currently short with.

Tonights NFP will be interesting on the aussie, the adp had little effect in stopping its strong bid trend. Tonights forecast is for 191K more NFP jobs, if this number increases it will be interesting to see if it will be able to stop the Aussie. At the moment it looks like it is taking on all obstables.

Main news this morning to watch will be the China PMI which is at 0900 hrs Perth time. Because of the close trade relations between China and Australia this news can sometime have an effect.

Aussie Building and Retail figures this morning

On the Aussie I am currently flat, still not happy about taking any shorts until the price gets up to 1.0350 and 1.0400 area. With good Aussie economic figures this morning we may well see these numbers.

Nevertheless, I watch and wait. Especially with Non-Farm payroll on Friday. With the big short I had earlier in the week with the Aussie, and the scalps on the pound and euro I am sitting pretty well on about 6% ROI for the week. So I am not in a hurry to rush into any trades and jeopardize the good trades for the week.

Trading the FX market is all about patience and being able to wait for your trade.

More later.

ADP News Day

Well the Aussie headed down to the 1.0200 level as predicted yesterday, almost touching it. I am flat now as I dumped all the rest of my shorts that I had accumulated the day before at 1.0300.

Have not done much trading today. Have been watching price action of my favorite pairs and waiting for the ADP to come out at 2015 hrs my time here in Perth.

Still waiting for the Aussie to climb to the next areas what I consider good shorting opportunities in the area between 1.0350 and 1.0400.

Good trading, hope you get some great pips today.

Re-shorting Aussie

Got a few emails with thanks for the call on the Aussie at 1.0300. I was asked if I would re-short at that level again. My answer is yes and no, I think next time it pushes through the 1.0300 level, it is going to be a nice push higher toward the 1.0400 area.

So I think the best answer to all the emails would be this, start scaling in your shorts at 1.0300 again. Scale in with nice small amounts, expecting the next price hit to be around 1.0400. I imagine there will be a whole lot of hedge funds waiting for 1.0400 anyway, so that would not be a bad place to make a substantial position.

AUDUSD retraces after hitting 1.0300

Good morning everyone! Well I hope some of you at least got in on this trade. Talking for myself I am still short from 1.0300 with several contracts. At +50 pips I took half profit, and have moved my stop loss to break even + whatever pips I need to cover the day to day swap interest. I am looking for 1.0200 to take the rest of my profit and closing out this trade.

My robot is still buying AUDUSD in small quantities and doing very well. Today's trade will be a price action trade for the GBPUSD with today's news.

AUDUSD here today gone tomorrow

As you can see I have changed over from my old blogger spot to this new URL with Google, I have found it a much better platform for my day to day Forex comments. Now on to today's Forex commentary.

I have been getting a lot of emails in regards to my position on the AUDUSD pair. As everyone has noted this pair has been on a real terror for the last 6 to 7 days, and has really stabilized itself around the 1.0250 area. In regards to my own trading I have closed all my long positions. I am now taking small hit and run scalps shorts around the 1.0250 area whenever there is perceived weakness or the stochastics are high and overbought each time when it hits that area.

In regards to longs, I won't be entering any long term big positions on the AUDUSD till we have a substantial pullback. Although saying that, I have started my trend-master robot with small percentage on my account until it gets to an area that has a high potential for reversal.

In regards to the EURUSD and GBPUSD pairs, both look good for from nice swing trading short. Watch your money management and the news, as I see Portugal's problems have come back to haunt us.

My big money trade to watch today is definetly the AUDUSD, look for good positioning on shorts around the 1.0300 to 1.0350...use good money management with these trades with no stops loss, and everyone should make some good dollars with this trade.

Remember there is no substitute for discipline in Forex trading.