Category Archives: Trading Signal

A leading indicator to spot financial market Black Swan Events?

Black Swan Events or 4-sigma moves (e.g. 1987 Black Monday and 2008 crash) in the markets are by definition hard to predict.  Hard, but not impossible.  Experienced traders utilize prudent risk management to shield themselves from monstrous losses, and some can even profit immensely from them.  However, for us average folks, is there some kind [...]
Posted in Trading Signal | Tagged black swan, indicator, market sentiment | Leave a comment

4 fundamental entry signs for trading and why they are not that important

Much has been written about when to buy stocks, forex, or other instruments.  In fact, it is the topic that is written the most about in trading.  As if there’s nothing else to trading than timing your entries.  On the contrary, I have come to realize that timing for entries is actually the least important [...]
Also posted in Risk Management | Tagged entry | Leave a comment

EUR/USD +95 pips in 2 hours: An example of swing and day trade convergence

I had my best day-trading day this quarter on November 27.  I made 95 pips in two hours at the open with only two trades.  This post is a review of my trades that day for my future reference.  To save you and myself from reading, the two reasons for this good run are:   Click [...]
Also posted in Major Pairs, Self Assessment | Tagged day trading, entry, EUR, exit, good trade, long, paper trade, USD | Leave a comment

AUDJPY Short 81.37/77.17: Anatomy of my first 400+ pips trade

420 pips in my demo account to be exact.  Still, I feel very lucky. In this post, I will review why I entered this position, why I added to it, and why I exited.  The goal is for myself to learn from what works and what can I do to improve on this trade given some [...]
Also posted in Aussie, Kiwi, Loonie, Self Assessment, Trading Strategy | Tagged AUD, entry, exit, FTR, good trade, JPY, paper trade, short | Leave a comment

EURCHF breaking 1.5100: A textbook perfect breakdown and reversal

Last night, EURCHF finally broke below the 1.5100 zone after weeks of consolidation around the area.  See Figure 1 for a daily chart of EUR/CHF.  I just happened to be looking at the charts when this breakdown occurred last night so I made a few day trades.  These scalps turned out better than I thought [...]
Also posted in European Crosses | Tagged breakout, day trading, fibonacci | Leave a comment

An introduction to my Forex Trend Continuation Setup (FTC)

After many trials and errors with paper trading the forex market for a month, the first of my trading setups is finally taking shape.  So I would like to document this approach here after a well executed trade this week (illustrated below). This trading setup is based solely on technical analysis.  Here’s an overview of the [...]
Also posted in Aussie, Kiwi, Loonie | Tagged CAD, entry, exit, FTC, good trade, JPY, paper trade | Leave a comment

Missed opportunity review: GBP/JPY spiked 500 pips in 24 hours

It looks as though my analysis for GBP/JPY making a reversal was correct.  However, my short term entry needed to be improved for me to profit on my intermediate term analysis.  In particular, I should have looked at a major short term resistance line instead of an arbitrary weak resisitance line as I did when [...]
Also posted in European Crosses, Self Assessment | Tagged GBP, hindsight, JPY | Leave a comment

Paper trade: Long EUR/USD 50% @ 1.49212, stopped out @ 1.4875 (-46.2 pips)

EUR/USD looked as though it was going to break through 1.50 when it broke 1.49 (Fig. 1).  I waited til it marked a short term top at 1.4920 (Fig. 2) and then placed a stop entry just above it at 1.4921.  EUR/USD traded above it for a few hours but failed to break 1.4970.  It [...]
Also posted in Major Pairs, Trading How-tos | Tagged entry, EUR, exit, paper trade, USD | Leave a comment