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Thursday, January 14, 2016

Another Divergence Setup on the SP500

The 1-hour chart on the SP500 just showed this beautiful setup. An enormous bullish engulfing candlestick just closed and the RSI oscillator is showing a good amount of divergence. Stocks have been dumping hard for the past two weeks, so maybe this setup is finally signalling that market sentiment is about to shift. I don't really trade Index Futures/CFDs, but if this setup occurred on an FX pair, I would enter a buy at the high of that bullish engulfing bar. These setups don't always work, so I always place my entry orders just a bit above than the close of the bar, usually just a bit above the high.

Tuesday, January 12, 2016

Crazy GBPUSD Countertrend Trade

The GBP/USD forex pair has been getting absolutely crushed the past few weeks, but this setup on the 1-hour chart was too good to pass up. In my experience, when a bar forms that mirrors the previous bar but in the opposite direction - a reversal is likely. If you were to take the blue and the red bar and combine them on a 2-hr chart, you get nice long Pin candle. Actually, the 4-hour chart closed as a very nice Pin-Bar, but if I had waited for that candle to close before I entered my long position, I would have gotten a worse entry price. The stop-loss order on this trade was initially under the low of the blue candle, and I placed the take-profit order just bellow that swing low from yesterday. Trading counter to such a monster bear market is not advisable, but I moved my stop to break-even already, so at this point the trade is risk-free.

Friday, January 8, 2016

SP500 Divergence Setup on 1-Hour Chart

I don't trade stock futures, but this setup is really great. A triple-low with a nice Pin-Bar and plenty of divergence. If this setup showed up on any liquid currency pair, I would be all over it in a heartbeat. Stocks have been tanking hard since the start of 2016, and I think that the downtrend seems to be a little overextended now.

Monday, January 4, 2016

My First USDJPY Long Trade of 2016

I just entered into this long USD/JPY trade. The selling pressure has been relentless, but to me it seems that the selling is a bit overdone. The RSI started to show divergence and a nice bullish engulfing candle appeared on the 1-hour chart, so I decided to take a counter-trend trade. The stop-loss on this trade was initially placed just under that large blue bar, and the take-profit order is sitting about 50 pips away from the entry point. I have now moved my stop order to break-even and I am going to let this trade work itself out.

Wednesday, December 2, 2015

EURUSD Long Trade: Hit or Miss?

I got myself into this long EUR/USD trade off that big 1-hour bullish engulfing bar. The take-profit on this trade is at 1.0630. This level has been used as resistance about five times over the past week, so I think that is a good area to exit. Stop-loss was initially at the low of that bullish engulfing candle, but I have now moved it to break-even.

Wednesday, November 25, 2015

30-Minute EUR/USD Trade Today

Will this EUR/USD trade hit its target? I sure hope so! Classic divergence trade with a Pin-Bar. risj is about 27 pips and I have placed a take-profit order at 44 pips. The 1.0638 level has held as support/resistance quite a bit over the last two days, so I think this area is a good place to get out.

Sunday, November 1, 2015

End of October Forex Trades Analysis

I explain some of the profitable trades I took in the past week, and also some of the failed ones. The Pin-Bar formations do work, but not 100% of the time, so you have to swing for the bigger wins.