EUR USD long entry at prior 1 H Low near 30 EMA

Trading Plan: If todays opinion is stronger than yesterdays then make a trade

If todays opinion is stronger than yesterdays then make a trade

Trading Plan: Weekly Ranges gives you a good swing target

This week it was better to trade long EURJPY instead of long USDJPY because of the higher potential.

• USDJPY trades at a min weekly range of 120 pips, with 15 pips entry risk
  
• EURJPY trades at a min weekly range of 340 pips, with 30 pips entry risk

Trading Plan: Comparing the Majors

Between 7.30 am 9.30 am there is on one of the Major Pairs
a good chance to short below the low of the prior 10 min Bar.

This week the Canadian dollar provided the best opportunity, to identify which instrument to trade I either look at the daily chart (inverted hammer, already in down trend) or at the action that happend on monday and then try to participate in the moves that happen on the following weekdays

Trading Plan: 50% and 61,80% levels

Trading Plan: Compare Future and Forex Charts

Sometimes the forex charts have clearer signals than the futures chart, so the best way is to look at both.

Trading Plan: TS4 and DP setups

Trading Plan: Exiting Trend Trades at 200 ema

Its Ok to exit trend trades (long on 200 ema moving up) at a double bottom or at the 200 ema line

Trading Plan: Position Trading

Here is the logic for a profitable position trading system, I coded the projected moving average indicator myself which is sold as part of a charting package by a scam company thats starts with the letter "v" for 20,000 $ :-)

Trading Plan: 200 EMA Entries and Exits

If sets are near the 200 EMA wait till price closes above it then take the short signal

See on the GBPUSD chart, entries below 200 ema
can be stopped out at breakeven...

As you can see on the FGBL chart is always wise to exit with a limit order at the 200 ema line if the next target is near.

If there is a downtrend and price is already oversold (below 200 ema) to confirm the entry with a trendline break (see on gold chart) or a bounce off a trendline (see on corn chart).

Trading Plan When to enter

Its wise to look at the last weekday
to see for example when on wednesday the best entry will happen.

Trading Plan Which Instrument to trade

Always trade the instrument with the highest risk reward potential.

So shorting NZD was better than shorting GBP.

Trading Plan: In which Month is a particular currency bullish?

Normally the USD is
weaker at end of the year, but this year the Dollar seams to be already oversold, as predicted by Larry Williams we could see a dollar rally for this years end.

Anyway all the other currencies behaved "normal" this year:

• Canadian Dollar strong in July
• Australian Dollar strong in April, May, August, October, November
  
• Yen strong in May and October
• Euro strong in March, May, September October
• Pound strong in May and October
  

Trading Plan: Where to expect a reversal

There are 3 different points where a reversal can happen:

1. At the end of the 3th wave
2. At a fibonacci retracement
3. In a decision point area.

The reversal most likely happen at every hour, so taking a trade on the 5 min chart is still valid once one of the above mentioned criteria are met.

Trading Plan: Which data feed provider to choose

When comparing the different data feed provider I have to say GAIN CAPITAL (forex.com) provides the best forex data, all others (PFG Futures and Forex feeds as well as the popular ZENFIRE feed for Ninjatrader) simply dont generate charts that provide so clear signals with the MTPredictor Indicator.

4 Signals on the first screenshot (GAIN) and only 2 valid signals with even higher risk on the other screenshots that are from the other providers.

Trading Plan: Which setups can be skipped

Its important to not trade every setup, as long trades work most likely in oversold conditions (price near low of yesterday) or on trends (higher highs and lows). This ways going long euro and gold in the above charts is considered a risky trade. The only way to take these is waiting for a trend line to break.

In general there should be a clear base before entering a long trade, very seldom (mostly on news) it happens that there are spikes visible on those its valid to enter even if no base has been formed yet. However you have to rely on the concept that an uptrend requires a double bottom so the all market participants know price does not go lower.

Short setups in a trading range especially when the entry is at Point A of an upmove (see NZDUSD chart)

Trading Plan Which Instrument to short

When the US dollar gained strength overnight, its clear to short one of the currencies in the morning. But which one? Looking at the different instruments the YEN already traded near the low of yesterday, the Aussie Dollar almost, Canadian Dollar and Euro. So only the pound which was the strongest currency for the last few days has the best risk reward ratio.

Looking at the Dollar Index (DX) makes it also very clear when to enter, as only on certain times the pullback on an uptrend allows shorting other currencies.