Good Evening / Morning Dynamic Traders
“Better to have tried and failed, than not tried at all”
Cross = EURCAD, EURJPY, NOK Daily below (Courtesy of Advanced Get / E Signal)
On our last blog we discussed what has proved to be our most successful strategy for making a profit, BREAKOUTS.
I have received lots of feedback with regard to this subject and was encouraged when my blog was stamped a “Favourite” by a well known spokesperson within the Financial Sector. He is regularly seen on Sky News commenting from his City Offices with regards the Markets.
Trading is an emotional subject and your frame of mind as you sit at your computer may well effect the results that you will get. My office at home has the walls surrounded with pictures of happy memories and I may play my favourite music in the background as I do my analysis. I suggest you read “Trading in the Zone” by Mark Douglas to expand on these comments.
As it is an “Emotional” subject, the more “Mechanical” we can make it, the less our “Emotions” will effect our decisions. I as a person or we as a group, would never agree on a 100% “Mechanical” or “Black Box” system to do everything for us, and no one yet has invented one, despite many claims that they have.
Therefore a combination of the Mechanical and confirmation by you the human being, is our answer.
The human eye and the training you have had should point out to you, Support, Resistance, Round Numbers, Price as always being our No1 indicator. This should eliminate getting into a trade that the “Mechanical” system offers us.
With all this in mind, lets take a look at a couple of current Mechanically alerted trades that we have been offered but have declined and why.
EURCAD Daily
EURCAD
We had received a mechanical signal to go short on this cross, however when you look at the chart there is little space for the trade to work with a key support area marginally below our alert. We have a RN further below and we would be better awaiting Price to give us a BOB through the Support and use it as Resistance. We would then have plenty of room to reach T1 before reaching the RN, which would offer support. Trade not taken.
EURJPY
EURJPY Daily
Again we have the same scenario with the EURJPY, except our support is within touching distance of a MAJOR RN. We would be better off waiting a BOB of the RN 100.00 and using Support as Resistance. Trade not taken.
NOK
NOK Daily
To show we do get “Long” trades, the NOK has given us a mechanical alert, however previous Resistance and RN 6.0000 are all within a small area that taking the trade could prove the wrong decision. A BOB of the Resistance and Price turning this to support would be a better set-up. For those sharp eyed amongst you you will see a “Cup & Handle” formation which offers hope of a possible further Bullish move.
In these 3 Mechanical alerts our knowledge and training prevented us taking the trades. To get the knowledge and the tools to give you this edge, become a member of the “Trading Room” by clicking the link below. Use “JDM” for a discount.
Remember PRICE is your number 1 indicator, Support & Resistance is your second. Keep it simple.
Please do your own analysis before entering a trade.
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Trade with Passion
John Maher
Forex Analyst
