Technical Trading - Forex Market

Weekly FOREX Outlook

forextrainingcourse — Mon, 27 Jul 2009 07:06:36 +0000

The Dollar seems unable to make a move in either direction these last few weeks. The ranges have given us many great trading opportunities but lacking of actual direction. We continue to want to own Dollars at these levels but caution is still the word for the week as we could still see a few head fakes to the downside in Dollars before turning. We are still up over 800 pips for the month and are looking to finish out this month strong. Most of the comments below are the same from last week but since we have had almost no movement last week these same levels still apply.

EUR/USD:
We remain short this pair and are still targeting a move back into the mid 1.30’s by end of summer. Selling rallies above 1.42 should be good entry points.

GBP/USD:
This pair remains volatile and lots of fun to trade. We are looking to sell rallies near 1.65 this week and expecting the lower 1.60’s to be tested by end of week.

USD/CHF:
This pair saw a nice breakdown and we are now long from just below 1.07 and loosing for a move back towards the 1.10 level.

USD/JPY:
We are still looking for this pair to track stocks lower in the weeks ahead so our bias remains to sell rallies above 95 and focus on managing risk on every trade every day without fail.

AUD/USD:
We are still selling rallies here as well and I know this sounds nuts and I may be wrong but the odds of a further advance are very low in the near term so I am happy to remain short.

USD/CAD:
Canadian continues the charge back towards parity I have mentioned in prior issues. I am now looking to buy dips near the 1.08 level this week. This is really a dead cat bounce trade but risk reward is good.

Weekly FOREX Outlook

forextrainingcourse — Mon, 27 Jul 2009 07:06:15 +0000

EUR/USD:
We remain short this pair and are still targeting a move back into the mid 1.30’s by end of summer. Selling rallies above 1.42 should be good entry points.

GBP/USD:
This pair remains volatile and lots of fun to trade. We are looking to sell rallies near 1.65 this week and expecting the lower 1.60’s to be tested by end of week.

USD/CHF:
This pair saw a nice breakdown and we are now long from just below 1.07 and loosing for a move back towards the 1.10 level.

USD/JPY:
We are still looking for this pair to track stocks lower in the weeks ahead so our bias remains to sell rallies above 95 and focus on managing risk on every trade every day without fail.

AUD/USD:
We are still selling rallies here as well and I know this sounds nuts and I may be wrong but the odds of a further advance are very low in the near term so I am happy to remain short.

FX Trading is "Waiting"

Derek Frey — Fri, 24 Jul 2009 16:02:53 +0000

“FX Trading is waiting” Let’s face it, trading while exciting at sometimes is quite a lot of hurry up and wait. When I took my first trading mentorship, my mentor said “fx trading is waiting”. At the time I thought he was just having a frustrating day. I now know what he meant after 20 years of trading myself. Most of the time as forex traders we are waiting for something. Waiting for a market to set up, waiting for our limit order to be filled. Waiting for the move to get going, then waiting for it to “complete”. Or if it goes the other way waiting to get stopped out. Then it starts over again with waiting for the set up. So the majority of our time is passively sitting and waiting for something to happen. This is not easy for the new forex trader to deal with as when they start they almost surely expect lots of “action”. So after the initial rush of those first few trades is long gone you too will understand what is meant by the words “fx trading is waiting.”

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To learn more about FX Trading, Technical Analysis, and Technical Indicators, visit with Derek Frey daily and weekly as he shares his Weekly Forex Market Updates and sage advice!
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Forex Market Volatility

Derek Frey — Wed, 22 Jul 2009 11:24:11 +0000

Forex markets that are manipulated by governments, with the best of intentions of course, historically serve to create the very thing they are trying to fight, Volatility.

Forex markets have seen huge increases in volatility over recent years. Princess Leia in Star Wars said it best when she said to Darth Vader: “ the more you tighten your grip the more the rebellion will slip through your fingers.” The same could be said to our governments around the world today. They are desperately trying every trick in the book and has any of it gotten Forex market volatility to calm down? Not at all, in fact market volatility is still trending higher. So while they may have the best of intentions, a quick look at history will show that it is government interventions that cause things to get worse and only after the people are fed up will we see the changes that are so desperately needed.

I would just like to call attention to this fact now so that a few years from now I can come back and reference this. As in time, it will become obvious that no one can spend money they do not have.

Weeekly newsletter

Derek Frey — Tue, 21 Jul 2009 17:35:01 +0000

We have seen a prolonged distributions / short squeeze last week and expect it to spill over into this week. That being said we are happy to short the S&P above 950 this week. We are still buying dollars on dips as we have successfully now all summer. We are excited to see support tested on the Dollar index and hope we see it broken at least a little bit so we can buy more. We have really had a lot of great ranges to trade within so far this summer. We are now up over 800 pips for the month in my trading room.

EUR/USD:
We remain short this pair and are still targeting a move back into the mid 1.30’s by end of summer. Selling rallies above 1.42 should be good entry points.

GBP/USD:
This pair remains volatile and lots of fun to trade. We are looking to sell rallies near 1.65 this week and expecting the lower 1.60’s to be tested by end of week.

USD/CHF:
This pair saw a nice breakdown and we are now long from just below 107 and loosing for a move back towards the 110 level.

USD/JPY:
We are still looking for this pair to track stocks lower in the weeks ahead so our bias remains to sell rallies and focus on managing risk on every trade every day without fail.

AUD/USD:
We are still selling rallies here as well and I know this sounds nuts and I may be wrong but the odds of a further advance are very low in the near term so I am happy to remain short.

USD/CAD:
Canadian continues the charge back towards parity I have mentioned in prior issues. I am now looking to buy dips near the 1.10 level this week. This is really a dead cat bounce trade but risk reward is good.

The Real Key to Successful FX Trading

Derek Frey — Mon, 20 Jul 2009 11:23:00 +0000

FX Trading is a business of odds. Much like insurance companies, successful forex traders constantly plan for the worst while hoping for the best. Just like hurricane Katrina, it is the events that you CANNOT foresee that cause the most damage.

So the real key to successful trading is not what you do know, but rather “knowing” what you do not and cannot know. I realize this sounds like a contradiction but it is not. Having the simple knowledge and understanding that anything can happen is more than the “Wizards of Wall Street” can say they had these last few years. So how can we use the fact that we cannot know the future to our advantage? It is simpler than it may seem. Having this core understanding as a forex trader prepares you for what you cannot expect by never allowing you to say or trade as if “that will never happen”. Those are the famous last words. Always expect the unexpected. That is why as traders we must at all times have risk controls in place.

No one can know the future with certainty. So on your next trades I suggest you do not look at where you want to get in, but rather focus on where you would get out, AT A LOSS! The real key to successful FX trading is knowing how and when to take a loss. Having that plan in place before the trade is ever placed allows one to not have to make decisions in the heat of battle.

Good generals do NOT go into battle without a retreat plan already in hand. Keep the odds in your favor by planning for the possibility of a loss before you enter the trade. While this may not be the most fun part about trading it is the most important.

FX Trading is a Business

Derek Frey — Wed, 03 Jun 2009 08:56:39 +0000

FX Trading can be one of the most rewarding “jobs” you can have. As I sit here and write this I realize that because I am a forex trader, I get to work from home and spend more time with my daughter than I would if I had the “real” job my parents wanted me to get. Don’t get me wrong, trading forex for a living is not easy, but it is nice especially on the losing days, to be able to spin around in my chair and see my daughter’s smiling face.

Having that reminder of why I trade the Forex markets can also help when things get tough. FX Trading is a business like any other but the nice part these days is that you can fit your “office” in your pocket on your iphone or blackberry. The freedom to spend more time with your family is something that even the greatest forex trades can’t beat, and I for one feel lucky to be able to call myself a forex trader.

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To learn more about FX Trading, Technical Analysis, and Technical Indicators, visit with Derek Frey daily and weekly as he shares his Weekly Forex Market Updates and sage advice!
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