DAX analysis for the week beginning 24th October As tweeted last week, daily supply is weakening and looking increasingly likely to break to the upside. The bounce off daily demand was coupled with a “spike double bottom”. Since then, the market has formed a broad rounded bottom and based on these factors we could see new…
DetailsRecently, 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…
DetailsIt’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…
DetailsI’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…
DetailsHere’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…
DetailsI 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…
DetailsI 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…
DetailsThis 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…
DetailsThis 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.…
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