This article by Joe Ross could not have come at a better time in my life.
Joe Ross' Chart Scan
I'm moving back to longer term trading from Intra-day trading. With this longer term style comes wider stops. I have developed my position sizing Spread sheet that I update daily. I only need to update the Daily Price movements. I have coordinated this with a long and short entry code set that draws lines after I enter my trades. I have attached both to this entry. Email me if you need some help with the spread sheet. Right now; I'm using .5 and 1n stops. this equates to about a 1/2% to 1% of my account balance.
My work schedule just doesn't allow me to catch either the begining of the Euro/Brittish market open or the US market open. Intra-day trading the Asia market is kinda boring. I'm working on my set strategy where you Take Breakouts / break downs and combine it with Swing trading. I'm only able to use the 4hr/daily/weekly charts to trade off of.
Once entry is made around a .xx20 / .xx50 / .xx80 / or .xx00 area. I add the N Long or short to my chart. I can now see where my prices are. I can visually see what a .5/1/1.5/or 2% gain (or loss) is in terms of price levels on the chart in reference to Price structure.
I have attached the N code and the spread sheet below. I hope this helps everyone.
The attached chart is my short position in cable. 4hr chart failed to make a new high in a declining market. .5n stop gets my stop placed just outside the prior daily high and above a .xx00 area. I could have gone 1n but, I'm feeling more comfortable with the .5n for now.
Joe Ross' Chart Scan
I'm moving back to longer term trading from Intra-day trading. With this longer term style comes wider stops. I have developed my position sizing Spread sheet that I update daily. I only need to update the Daily Price movements. I have coordinated this with a long and short entry code set that draws lines after I enter my trades. I have attached both to this entry. Email me if you need some help with the spread sheet. Right now; I'm using .5 and 1n stops. this equates to about a 1/2% to 1% of my account balance.
My work schedule just doesn't allow me to catch either the begining of the Euro/Brittish market open or the US market open. Intra-day trading the Asia market is kinda boring. I'm working on my set strategy where you Take Breakouts / break downs and combine it with Swing trading. I'm only able to use the 4hr/daily/weekly charts to trade off of.
Once entry is made around a .xx20 / .xx50 / .xx80 / or .xx00 area. I add the N Long or short to my chart. I can now see where my prices are. I can visually see what a .5/1/1.5/or 2% gain (or loss) is in terms of price levels on the chart in reference to Price structure.
I have attached the N code and the spread sheet below. I hope this helps everyone.
The attached chart is my short position in cable. 4hr chart failed to make a new high in a declining market. .5n stop gets my stop placed just outside the prior daily high and above a .xx00 area. I could have gone 1n but, I'm feeling more comfortable with the .5n for now.
This article by Joe Ross could not have come at a better time in my life.
Joe Ross' Chart Scan
I'm moving back to longer term trading from Intra-day trading. With this longer term style comes wider stops. I have developed my position sizing Spread sheet that I update daily. I only need to update the Daily Price movements. I have coordinated this with a long and short entry code set that draws lines after I enter my trades. I have attached both to this entry. Email me if you need some help with the spread sheet. Right now; I'm using .5 and 1n stops. this equates to about a 1/2% to 1% of my account balance.
My work schedule just doesn't allow me to catch either the begining of the Euro/Brittish market open or the US market open. Intra-day trading the Asia market is kinda boring. I'm working on my set strategy where you Take Breakouts / break downs and combine it with Swing trading. I'm only able to use the 4hr/daily/weekly charts to trade off of.
Once entry is made around a .xx20 / .xx50 / .xx80 / or .xx00 area. I add the N Long or short to my chart. I can now see where my prices are. I can visually see what a .5/1/1.5/or 2% gain (or loss) is in terms of price levels on the chart in reference to Price structure.
I have attached the N code and the spread sheet below. I hope this helps everyone.
The attached chart is my short position in cable. 4hr chart failed to make a new high in a declining market. .5n stop gets my stop placed just outside the prior daily high and above a .xx00 area. I could have gone 1n but, I'm feeling more comfortable with the .5n for now.
Joe Ross' Chart Scan
I'm moving back to longer term trading from Intra-day trading. With this longer term style comes wider stops. I have developed my position sizing Spread sheet that I update daily. I only need to update the Daily Price movements. I have coordinated this with a long and short entry code set that draws lines after I enter my trades. I have attached both to this entry. Email me if you need some help with the spread sheet. Right now; I'm using .5 and 1n stops. this equates to about a 1/2% to 1% of my account balance.
My work schedule just doesn't allow me to catch either the begining of the Euro/Brittish market open or the US market open. Intra-day trading the Asia market is kinda boring. I'm working on my set strategy where you Take Breakouts / break downs and combine it with Swing trading. I'm only able to use the 4hr/daily/weekly charts to trade off of.
Once entry is made around a .xx20 / .xx50 / .xx80 / or .xx00 area. I add the N Long or short to my chart. I can now see where my prices are. I can visually see what a .5/1/1.5/or 2% gain (or loss) is in terms of price levels on the chart in reference to Price structure.
I have attached the N code and the spread sheet below. I hope this helps everyone.
The attached chart is my short position in cable. 4hr chart failed to make a new high in a declining market. .5n stop gets my stop placed just outside the prior daily high and above a .xx00 area. I could have gone 1n but, I'm feeling more comfortable with the .5n for now.
Filed under Latest FX Articles · Tagged with asia market, declining market, joe ross, position sizing, swing trading
Forexpros Daily Analysis Oct 29, 2009
Free webinar TODAY - Get to grips with Position Sizing
Expert: Tony Beckwith
When: Thu, Oct 29, 2009, 12:00 EST
Tony Beckwith of specialist risk control software firm MTPredictor returns to explain how to get your forex trade size right to cope with winners - and why it is imperative to do so!
Click here to join the webinar.
---
Traders await tomorrows announcement (Oct 30) by the Bank of Japans Monetary Policy Committee (MPC) on the new monthly short term interest rate.
The decision on where to set interest rates depends mostly on growth outlook and inflation. The primary objective of the central bank is to achieve price stability. High interest rates attract foreigners looking for the best "risk-free" return on their money, which can dramatically increases demand for the nation's currency.
A higher than expected rate is positive/bullish for the JPY, while a lower than expected rate is negative/bearish for the JPY.
Analysts expect no new changes from the banks executives, with this months interests remaining stable at 0.10%.
---
Euro Dollar
In agreement with the negative technical outlook we talked about in the past two days, the Euro stopped at the first resistance in the report 1.4844 with great accuracy (highest price after the issuance of the report is 1.4840), then dropped breaking the support 1.4801, and reached the first target of that break 1.4702. And after reaching 1.4702, we should not neglect the rising probability of an upward correction for the drop from 1.5061, which reached almost 400 pips so far. Short-term support is Fibonacci 61.8% for the whole rise from .4480, which is at 1.4702, and breaking it would mean that the drop coming from 1.5061 will be larger than our expectation, and the next targets will be 1.4649 and 1.4610. Short-term resistance is 1.4737, and breaking it would target the Fibonacci 38.2% at 1.4827, and may be Fibonacci 50% at 1.4872. If the negative outlook is to persist, the Euro should not break the most important resistance for the medium-term 1.4916.
Support:
1.4702: Fibonacci 61.8% for the whole move from 1.4480.
1.4649: Oct 7th low.
1.4610: previous support.
Resistance:
1.4737: short-term resistance.
1.4827: Fibonacci 38.2% for the drop 1.5061.
1.4872: Fibonacci 61.8% for the drop 1.5061.
---
USD/JPY
Dollar-Yen broke 90.76 and had some drop after that, but it stopped before 90. In spite of that, the technical outlook became more negative, because we broke the rising channel that we have been monitoring lately. The most important support for the short-term is 90.16, and until this moment it managed to hold above it. If it can maintain to do so, we expect a correction for the down move from 92.31. But if it is broken, more of the drop is to be expected, first towards the important 89.61, the last important support above 89, since the next important support is 88.82. On the other hand, the most important resistance for the short-term is 91.02, which represents both Fibonacci 38.2%, and also the retest level for the broken channel. If broken, we expect to rise towards the important 91.52, and if we are in front of a correction, we should not break this level. But if a surprise happens and we break it, the price would be on the way back to 92.17.
Support:
90.16: short-term support.
89.61: previous support & Oct 12th low.
88.82: previous support & Oct 14th low.
Resistance:
91.02: Fibonacci 38.2% for the short-term, and the retest level for the broken channel, important resistance.
91.52: Fibonacci 38.2% for the short-term, important resistance.
92.17: previous well known resistance area.
---
Forex trading analysis by Forexpros - Written by Munther T. Marji
---
Disclaimer:
Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
__________________
Forexpros.com - Bringing you live news, analysis advanced charts and quotes.
Check out our new and improved Technical Studies Section.
Free webinar TODAY - Get to grips with Position Sizing
Expert: Tony Beckwith
When: Thu, Oct 29, 2009, 12:00 EST
Tony Beckwith of specialist risk control software firm MTPredictor returns to explain how to get your forex trade size right to cope with winners - and why it is imperative to do so!
Click here to join the webinar.
---
Traders await tomorrows announcement (Oct 30) by the Bank of Japans Monetary Policy Committee (MPC) on the new monthly short term interest rate.
The decision on where to set interest rates depends mostly on growth outlook and inflation. The primary objective of the central bank is to achieve price stability. High interest rates attract foreigners looking for the best "risk-free" return on their money, which can dramatically increases demand for the nation's currency.
A higher than expected rate is positive/bullish for the JPY, while a lower than expected rate is negative/bearish for the JPY.
Analysts expect no new changes from the banks executives, with this months interests remaining stable at 0.10%.
---
Euro Dollar
In agreement with the negative technical outlook we talked about in the past two days, the Euro stopped at the first resistance in the report 1.4844 with great accuracy (highest price after the issuance of the report is 1.4840), then dropped breaking the support 1.4801, and reached the first target of that break 1.4702. And after reaching 1.4702, we should not neglect the rising probability of an upward correction for the drop from 1.5061, which reached almost 400 pips so far. Short-term support is Fibonacci 61.8% for the whole rise from .4480, which is at 1.4702, and breaking it would mean that the drop coming from 1.5061 will be larger than our expectation, and the next targets will be 1.4649 and 1.4610. Short-term resistance is 1.4737, and breaking it would target the Fibonacci 38.2% at 1.4827, and may be Fibonacci 50% at 1.4872. If the negative outlook is to persist, the Euro should not break the most important resistance for the medium-term 1.4916.
Support:
1.4702: Fibonacci 61.8% for the whole move from 1.4480.
1.4649: Oct 7th low.
1.4610: previous support.
Resistance:
1.4737: short-term resistance.
1.4827: Fibonacci 38.2% for the drop 1.5061.
1.4872: Fibonacci 61.8% for the drop 1.5061.
---
USD/JPY
Dollar-Yen broke 90.76 and had some drop after that, but it stopped before 90. In spite of that, the technical outlook became more negative, because we broke the rising channel that we have been monitoring lately. The most important support for the short-term is 90.16, and until this moment it managed to hold above it. If it can maintain to do so, we expect a correction for the down move from 92.31. But if it is broken, more of the drop is to be expected, first towards the important 89.61, the last important support above 89, since the next important support is 88.82. On the other hand, the most important resistance for the short-term is 91.02, which represents both Fibonacci 38.2%, and also the retest level for the broken channel. If broken, we expect to rise towards the important 91.52, and if we are in front of a correction, we should not break this level. But if a surprise happens and we break it, the price would be on the way back to 92.17.
Support:
90.16: short-term support.
89.61: previous support & Oct 12th low.
88.82: previous support & Oct 14th low.
Resistance:
91.02: Fibonacci 38.2% for the short-term, and the retest level for the broken channel, important resistance.
91.52: Fibonacci 38.2% for the short-term, important resistance.
92.17: previous well known resistance area.
---
Forex trading analysis by Forexpros - Written by Munther T. Marji
---
Disclaimer:
Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
__________________
Forexpros.com - Bringing you live news, analysis advanced charts and quotes.
Check out our new and improved Technical Studies Section.
Filed under Latest FX Articles · Tagged with free webinar, high interest rates, monetary policy committee, position sizing, technical outlook
Forexpros Daily Analysis Oct 21, 2009
Free webinar - Get to grips with Position Sizing
Expert: Tony Beckwith
When: Thu, Oct 29, 2009, 12:00 EST
Tony Beckwith of specialist risk control software firm MTPredictor returns to explain how to get your forex trade size right to cope with winners - and why it is imperative to do so!
Click here to join the webinar.
---
The US Department of Labor will publish its weekly Initial Jobless Claims Report Tomorrow (22 Oct).
The Report is a measure of the number of people who file for unemployment benefits for the first time during the given week.
The number of jobless claims is used as a measure of the health of the job market, as a series of increases indicates that there are fewer people being hired.
Usually, a move of at least 35K in claims is required to signal a meaningful change in job growth.
A higher than expected reading should be taken as negative/bearish for the USD, while a lower than expected reading should be taken as positive/bullish for the USD.
Analysts forecast last weeks measure of 514.00K to rise to 518.00K.
---
Euro Dollar
The Euro broke the yesterday's support 1.4964, and reached the first target of this break, and Fibonacci important support 1.4891, tested it strongly, but eventually it survived (yesterday's low 1.4881). We will adopt this support level as support of the day, because if it holds, this would mean that the short-term correction is already over, and that we are heading to areas above yesterday's high 1.4993. But, if broken, what will be expected is a correction for the move up from 1.4480, and if this is the case, targets will not be less than 1.4797, and may be 1.4737 also. Short-term resistance is 1.4950, and if broken, we will head with the Euro to the top of the rising channel on the hourly chart, which is currently at 1.5048, and may be we will reach the highest level since Aug 2008, at the resistance 1.5082. The support level at 1.4891 is the most important level for today, and is the line separating positive areas from negative.
Support:
1.4891: Fibonacci 61.8% for the short-term.
1.4842-1.4849: The support area which contains the lows of Thursday & Friday.
1.4797: Fibonacci 38.2% for the whole move from 1.4480.
Resistance:
1.4950: short-term resistance.
1.5000: psychological level.
1.5048: the top of the rising channel on the hourly chart.
---
USD/JPY
The Dollar-Yen with amazing accuracy at the first support in yesterday's report (lowest price after the issuance of yesterday's report is 90.06), and then rose to 91.05, breaking 90.73 on the way, but what followed was a modest move. The most important support is the Fibonacci 61.8% for the short-term at 89.77, and if broken the direction would be down to test the important support 88.68, which must hold to prevent another attempt to test 87.97 which survived 2 weeks ago an attempt for a break. As for the resistance, the most important one is 90.90, and the key to the most important stop in these areas is 91.63, which is expected to be an important test. Breaking it means that this rise will continue in the next few days, to areas above 92, where 92.52-92.58 is the first target for this break. While failure here would indicate that this is but a short-term rise.
Support:
89.77: Fibonacci 50% short-term and the bottom of the rising channel on the intraday charts.
89.38: Oct 7th high.
88.68: support area that supported the price twice this month.
Resistance:
90.90: short-term resistance.
91.63: previous support & resistance area, the most important resistance for the short-term.
91.93: Sep 2nd low.
--
Forex trading analysis by Forexpros - Written by Munther T. Marji
---
Disclaimer
Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
__________________
Forexpros.com - Bringing you live news, analysis advanced charts and quotes.
Check out our new and improved Technical Studies Section.
Free webinar - Get to grips with Position Sizing
Expert: Tony Beckwith
When: Thu, Oct 29, 2009, 12:00 EST
Tony Beckwith of specialist risk control software firm MTPredictor returns to explain how to get your forex trade size right to cope with winners - and why it is imperative to do so!
Click here to join the webinar.
---
The US Department of Labor will publish its weekly Initial Jobless Claims Report Tomorrow (22 Oct).
The Report is a measure of the number of people who file for unemployment benefits for the first time during the given week.
The number of jobless claims is used as a measure of the health of the job market, as a series of increases indicates that there are fewer people being hired.
Usually, a move of at least 35K in claims is required to signal a meaningful change in job growth.
A higher than expected reading should be taken as negative/bearish for the USD, while a lower than expected reading should be taken as positive/bullish for the USD.
Analysts forecast last weeks measure of 514.00K to rise to 518.00K.
---
Euro Dollar
The Euro broke the yesterday's support 1.4964, and reached the first target of this break, and Fibonacci important support 1.4891, tested it strongly, but eventually it survived (yesterday's low 1.4881). We will adopt this support level as support of the day, because if it holds, this would mean that the short-term correction is already over, and that we are heading to areas above yesterday's high 1.4993. But, if broken, what will be expected is a correction for the move up from 1.4480, and if this is the case, targets will not be less than 1.4797, and may be 1.4737 also. Short-term resistance is 1.4950, and if broken, we will head with the Euro to the top of the rising channel on the hourly chart, which is currently at 1.5048, and may be we will reach the highest level since Aug 2008, at the resistance 1.5082. The support level at 1.4891 is the most important level for today, and is the line separating positive areas from negative.
Support:
1.4891: Fibonacci 61.8% for the short-term.
1.4842-1.4849: The support area which contains the lows of Thursday & Friday.
1.4797: Fibonacci 38.2% for the whole move from 1.4480.
Resistance:
1.4950: short-term resistance.
1.5000: psychological level.
1.5048: the top of the rising channel on the hourly chart.
---
USD/JPY
The Dollar-Yen with amazing accuracy at the first support in yesterday's report (lowest price after the issuance of yesterday's report is 90.06), and then rose to 91.05, breaking 90.73 on the way, but what followed was a modest move. The most important support is the Fibonacci 61.8% for the short-term at 89.77, and if broken the direction would be down to test the important support 88.68, which must hold to prevent another attempt to test 87.97 which survived 2 weeks ago an attempt for a break. As for the resistance, the most important one is 90.90, and the key to the most important stop in these areas is 91.63, which is expected to be an important test. Breaking it means that this rise will continue in the next few days, to areas above 92, where 92.52-92.58 is the first target for this break. While failure here would indicate that this is but a short-term rise.
Support:
89.77: Fibonacci 50% short-term and the bottom of the rising channel on the intraday charts.
89.38: Oct 7th high.
88.68: support area that supported the price twice this month.
Resistance:
90.90: short-term resistance.
91.63: previous support & resistance area, the most important resistance for the short-term.
91.93: Sep 2nd low.
--
Forex trading analysis by Forexpros - Written by Munther T. Marji
---
Disclaimer
Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
__________________
Forexpros.com - Bringing you live news, analysis advanced charts and quotes.
Check out our new and improved Technical Studies Section.
I have two upcoming webinars here on FXstreet.com this month. The first one is for FXstreet.com Premium members only, while the second one is an open webinar where all are invited to attend. The information and links are below. Hope to see everyone there!
PREMIUM WEBINAR:
Managing Risk to Target Consistent Profitability in the Forex Market
Tue, Jul 14 2009, 12:00-12:45 GMT (8:00 AM to 8:45 AM U.S. Eastern Time)
Learn how the most important element of consistent profitability is a good risk and money management strategy. Find out the ways in which experienced traders manage risk in their forex trades with stop-losses, position sizing, and prudent exit strategies.
* Link for more information and to pre-register: http://www.fxstreet.com/live/sessions/session.aspx?id=8405dbb2-3773-4900-beb0-275caa24545d
OPEN WEBINAR:
Maximizing Trade Entry Opportunities in the Forex Market
Fri, Jul 24 2009, 12:00 GMT-12:45 GMT (8:00 AM to 8:45 AM U.S. Eastern Time)
Learn detailed entry methods used by professional forex traders to enter into all different types of forex trades, from breakouts to bounces to swings and more. Find out how a good entry can both increase the probability of any trade, as well as maximize its profitability.
* Link for more information and to pre-register: http://www.fxstreet.com/live/sessions/session.aspx?id=e12a0726-730d-4c5d-ad99-b0331e49a18b
- James Chen, CTA, CMT
* I will be key speaker at FXstreet.com’s International Traders Conference in Barcelona, Spain in October 2009 - for more information, please go to: www.traders-conference.com .
* For information on my book, Essentials of Foreign Exchange Trading (Wiley), please click here.
* Follow my intraday forex updates on Twitter: http://twitter.com/JamesChenFX
Filed under Technical Analyses · Tagged with consistent profitability, Foreign exchange trading, fxstreet com, money management strategy, position sizing
