Keep your entry process simple, here’s why
FX markets remain
somewhat trendless in the big picture overall, akin to their equity market
brethren. That doesn’t mean opportunity for profit doesn’t exist…
far from it!
In my opinion, currency traders are probable to
have better success keeping the trade entry process simple. I have found that
60-minute charts along with a few simple chart tools are all one needs to
succeed. Adding the Power Ratings FX filter to trade signals will add
clarity to which trades may run for significant profits.
I myself find no advantage in monitoring several
different timeframe charts looking for confluence among them. Have no need plot
a plethora of oscillators that resemble spilled spaghetti serpentined together.
Likewise, I don’t bother trying to layer Fib values clustered all over the
screen. Get carried away with trend lines, and a trading chart can soon look
like an air traffic controller’s radar grid.
Lastly, I absolutely will not attempt to decipher
what foreign currencies may be doing on a fundamental basis. Heck, I can’t make
the slightest sense of my own local government in a town of 2,300 people…
short-term logistics for any wiggle in cross-currency pairs based on what a
country may do is way, way above my own mental scope.
Trader’s View:
GBP/USD (+$10
per pip)
British Pound-USD pair offered a buy signal on
the 23rd and sell signals on the 24th around the daily pivot point. Short
signals today didn’t cover a lot of ground, but potential for +40 pips or so was
offered.
EUR/USD (+$10
per pip)
Euro-USD pair paints a similar picture to the
Pound, as one would expect. A series of hourly candle sell signals near 1925
offered at least +50 pips to the downside in what was a rather muted Friday
session.
USD/JPY (+$9
per pip)
USD-Yen gave perfectly clear sell signals almost every hour thru the entire
session on Wednesday 22nd. Traders who knew what to look for woke up with some
very pleasant readings in their account balance ledger. Sell signals all the way
in this one, not a hint of buying opportunity at all. Nice break for a maximum
of +200 pips if held for the duration, solid potential in between.
EUR/JPY (+$9
per pip)
Euro-Yen pair was just as clean & persistently
short all day on Wednesday. First series of signals near pivot resistance,
second series a little big below. When the Yen broke out, EUR shed more than 200
pips of value in favor of this cross-pair shorted by savvy traders.
{Price levels noted by arrows above are compiled
from numerous market measurements}
Powerfully Simple
One chart, a couple of indicators and Power Ratings FX to help
stay in trades on the correct side of potential solid profits. FX markets are
(in my opinion) the hardest financial forum to trade, based upon the level of
volatility & sharp reversals coupled with round-the-clock action. That said, FX
markets are probably best traded with the simplest of methods to counter their
natural degree of difficulty. “Analysis paralysis” is the usual result of
excessive study. Clean charts, Power Rankings FX, cut losers short and let
winners run. Simple recipe for potential success in a complex marketplace!
Trade To Win
Austin P
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Austin Passamonte is a full-time professional trader
who specializes in E-mini stock index futures, equity options and commodity
markets.
Mr. Passamonte’s trading approach uses proprietary chart patterns found on an
intraday basis. Austin trades privately in the Finger Lakes region of New York.
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