Recently, I’ve been paying a lot more attention to momentum (or flow) in my trading. When I trade with momentum, I’m often able to hold my trades for much bigger risk/reward because the force of higher timeframes is with me. How do we recognise momentum? Well, a clue are the impulses that price makes. Are they larger and…
It’s been a while since I wrote on this blog, so I thought I’d use the opportunity to explain this morning’s 5 minute Gold short that I tweeted live on Twitter. This was a great setup, because not only was it at a supply zone, but it was also our famous bull trap. As price broke the…
I’ve had a few consecutive winners, so I was probably due a loss and today it happened! The trade was a long from a 30 min EURUSD demand zone. Price spiked the zone by 2 pips and I was stopped out for -10 pips. The market then proceeded to go up in my chosen direction to the first small…
Here’s a trade on the GBPUSD that I tweeted live on Twitter this morning. It was a classic Bull trap into supply and netted me 53 pips. So what happened? Well… breakout traders got tempted long on the break of the prior swing high (blue line). At the same time, traders who were short from that prior…
I thought I’d post some observations about silver after reading a tweet from a good friend regarding a 1 hour supply zone. The supply zone looked good, but he (rightly) cautioned about holding the short for too long. This was because their was a tempting range of stoplosses above the supply (as shown on the chart below). Looking at the 5…
I posted this trade live on Twitter at the London Open. It was a long AUDUSD trade from daily demand. One of the ideas that makes this setup so powerful is it’s at the origin of the initial move up. So why did I draw my demand zone as shown, and not encompass the full swing low…
This is a trade on gold that I didn’t take (as I’m currently in the AUDUSD), but I have posted it as it’s interesting from an educational point of view. The Bull or Bear trap is a setup that occurs often. In this case, price broke a prior swing high and encouraged bulls to get long. The…
This morning I tweeted that I had shorted the “Kiwi” (NZDUSD) pair, so I thought I’d write a quick note to explain my trade. The green line was my entry and the red lines are my stop and potential target. I actually closed the trade for a 20 pip profit as there were tell-tale signs it was reversing.…
I thought I’d post this chart of a profitable scalping session this afternoon on the EMini S&P Futures.
We were heading into the FOMC announcement and price action was very slow and choppy, so I was looking for quick scalps and targets.
Some analysts were calling the GBPUSD pair long, going into today’s UK news events. I’m going to show you why that was a bad idea, based purely on the technicals.