Tuesday 15th March

by 22:59 0 comments
Didn't take any trades today but studied the 5 minute charts for a considerable part of the day. I have three annotated charts to post that I would like to talk about.

Firstly we'll look at Eddie, all of these trades were buys, in favour of the Euro strengthening. Following on from yesterday, I marked the close of the highest volume bar with a line out into the future. What we were then looking for was for the market to come above this line and then back down to test on a narrow spread bar with volume less than the previous two. This happened on a couple of occasions. The first two bars i've marked were actually failed tests as the following bar didn't break through the high. The third bar marked was a perfect test and produced a large enough move to the upside. Moving 126 pips to the high.

Eddie 5min

Secondly, EUR/CHF; much the same set up as mentioned previously the trigger line was tested twice, with both tests producing a significant move.


EUR/CHF 5min

Thirdly EUR/JPY; again, almost a carbon copy of the EUR/CHF trade. The spread on the first test is perhaps a little wide, breaking the low of the previous bar, but it seems to work well.

EUR/JPY 5min

I'm very encouraged by the last few days looking at the 5min charts, it seems to have brought a lot of clarity to what i'm looking at. Multiple time frame analysis. Looking for the volume to come in on the hourly charts then drilling down to the 20min and 5min time frames to get a better idea of trigger numbers and forming set ups.

One thing to look into is stop placement. As the 5min chart is a different beast to the 20min this is something i'll have to look into a bit further. 

The main thing I find interesting about today's trading is whilst there was a lot of movement on all the Euro pairs as well as Cable, there wasn't really a valid entry on the 20min charts whereas the set ups were there on the 5min.

Food for thought.

That's enough from me,




28. Forex. Trading. Music. Beer. Food. Travel.


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