Daily Market Action

Tuesday, September 30, 2008

Every morning, upon waking, I open up my Forex trading platform and look for any major changes in the world of finance.This morning, for example, I see that carry trades have had a bounce overnight.So what, right?Well, wait a minute here. Bounces represent opportunity. If you look at the 1hr GBPJPY or AUDJPY you'll notice some serious signals. Sure, the CCI, Williams %R and stochastics all

Panic In The Streets

Okay, I'm not going to offer any groundbreaking news, we all know what happened to the so-called TARP program.After the House refused to pass the bill in a bi-partisan manner we saw market participants run for the hills to the tune of a 777 point drop on the DOW. It was quite the day.Did I forget to mention that the VIX closed at a new high? I even think I saw pieces of the sky fall!After all

Shuffle Off To Buffalo

Wednesday, September 24, 2008

Is it just me or are the Yen based carry trades in stasis?I might be daydreaming, but it seems to me that the markets are just going to wait around until they find out what happens with the 700 billion bailout program.Have you looked at the 1 hour AUDJPY or GBPJPY? Unbelievable!

Market Uncertainty

Tuesday, September 23, 2008

While the government prevaricates on what best to implement in terms of a housing crisis fix, the details of the TARP proposal, financial markets are in a holding pattern.Nobody wants to simply assume things will go forward as proposed. However, I'm sure nobody wants to stand on the wrong side of a 700 billion tsunami either.Jim Cramer of Mad Money had an interesting viewpoint on how to deal


Last signal of AudUsd failed. AU decided to turn the trend with a single move. Currently working on a short term system. Now I know its really hard, to trade short term but always trade with fixed amount of SL in order to control your loss.

Long UsdJpy @ 105.20 or better
SL = 50 pip
TP = will inform later.

EU and GU is currently in uptrend mode with EU being the strongest of the two. Correction is coming. Its better to short GU at 1.8622 or better. You have to calculate the risk yourself.

Back To Trading?

Monday, September 22, 2008

During the last few weeks I've been content to play it safe and collect small carry trade positions. However, the markets are starting to act normal, in that they are generally unpredictable but they do seem to adhere to technical indicators a reasonable amount of the time.It might be time to start trading again.Prior to the recent market meltdown I was having some success with my trading and


Friday, September 19, 2008

AudUsd has made a double top level 3 (thats what I called it). signal should be as follows

Short AudUsd @ 0.8074 or better
SL = 50 pips
TP = will inform later (Its a moving target)

Market Panic To Market Euphoria?

I'm not certain that euphoria is any wiser than panic, but I do know that the Forex world has changed.The Fed, Congress and the Senate were meeting earlier this evening and are putting together what is touted to be a comprehensive plan to solve the ongoing financial crisis. Basically, by creating an organization to buy and then auction off troubled assets, the fear and uncertainty in the markets

Forex Market Deconstruction

Now that the trading week is over I thought I'd write about a few things that came to mind over the last couple of days.Current SituationEveryone is expecting the Fed to come along and put a multi-hundred billion dollar package together with the help of congress. Obviously, this is relieving a lot of the unprecedented pressure on both stocks and various Forex markets. The only fly in the


Wednesday, September 17, 2008

There are many ways to make money in Forex, not to forget there are a million ways to lose money in Forex market. Its an open market design for open competition. Only the smartest will survive.

A little something about Baseline Trader. I have spend more than 2 years looking at charts. I am looking at charts through technical aspect. Meaning, there must be some logical explanation why forex behave the way it is. Looking thru the naked eyes, forex market is unpredictable, wild and hungry. Its like a tsunami wave, destroying everything in its path but then there are wave surfers who make a living out of surfing waves. How is that possible?

Baseline Trader will be based on Fibonacci numbers. Believe or not, Fibonacci is a wonderful mathematical calculation. In the chart there will be short term and long term trade, fib levels, entry and exit, sl level all bunch up in a single chart. Sounds too much but believe me, once you know how to read it, one glance and you know where you are going to be. It is design to be simple yet precise. If you read the chart right, you will always be with the trend and you will always know your exit.

Below is a chart of GJ trade which I took. I like to share with you the chart since willcare is giving signal in the opposite direction. My entry and exit point is based on Fib levels. In the chart the level is not shown since Marketiva doesnt have the indicator available. My full chart is on MT4. Btw, I missed my entry so I will not trade GJ for now. My entry is exactly on the black line.

Long Term Carry Trade Prognosis

With the temporary loan facility made available to AIG by the Fed it seems that the currency markets are getting back a bit more appetite for risk.The Yen has been dropping and carry trade pairs have floated erratically to more respectable levels. The real question is how the US markets will react tomorrow. I'm expecting the equity markets, the DOW, to do well but I don't know if the carry

Forex Panic Attack

Monday, September 15, 2008

Well, if it looked like there was some panic last week, it should be very interesting to see what happens during trading this week.I hope you've kept your powder dry! There should be some Forex fire sales happening before long. The tough part is figuring out when the currency markets are finally starting to turn around again.Good luck out there...

Baseline Trader

Friday, September 12, 2008

Its been a long time since posted. On 16 July 2008 that is my birthday, a friend of mine call me up and gave me a birthday present. He said that I should short GBP/USD no matter what. Guess what, till today GU has moved down 2500 pips. Talk about a good birthday present. Thanks Abbas.

I will be posting a short term trading strategy soon. I called it Baseline Trader. It is a short term trade strategy couple with a good money management will give you good result. It is because the high win trade ratio.

In the mean time just sit back and enjoy my birthday present

Forex Carry Trade Bottom?

Thursday, September 11, 2008

I'm probably never going to try to call a bottom, but I will point out that there is a difference in behavior since the recent panic drop. Now, we see the Yen based carry pairs bouncing off a resistance point instead of simply dropping as if they are in free-fall.What am I doing about it?I'm glad you asked. My current trading activity involves playing with a bit of a gridding strategy. When

Carry Trade Panic Selling?

Sunday, September 7, 2008

Did anyone notice the panic selling out there?All kinds of carry trades unwound several hundred points in a very short period of time. Speculation in the Forex news rags suggests that losses due to the falling stock exchanges forced people to unwind their carry trades to cover their margins.In any case, after days of regimented downward movement, the sudden fallout represented a panic moment --

EURAUD Head And Shoulders?

Thursday, September 4, 2008

Are you a Forex carry trader?Don't look now but the EURAUD has completed two out of three components of a head and shoulders pattern on the hourlies.You might want to be on the lookout for this over the next several hours. If it activates it could spell a nice downward move for this carry pair.

Carry Trade Accumulation Strategy

Tuesday, September 2, 2008

As I haven't seen this forex tactic expressed anywhere else I thought I'd blog about it and share it with my small readership.Are you familiar with trailing stops?This is when you set a stop loss some number of points below the current price and then allow that stop loss to float when the price moves in a profitable direction. Well, I'm not going to talk about stop losses, but the idea is

Best Forex Trader Return

Monday, September 1, 2008

I see people in various forums asking what the best rate of return is for professional forex traders.What kind of question is that?Do you want an annualized answer based on a great trading day? I could boast a fabulous rate of return if I did that, but it wouldn't be meaningful.How about an annualized rate of return for a trader's best month? No? Maybe some arbitrary consecutive twelve month

Forex: What Is A Pip?

If you are a beginning forex trader you might be wondering what exactly a pip is. Everyone throws around the lingo but hardly anyone ever stops to give a good explanation that makes things clear for the aspiring trader.Generally, a pip is explained as the least significant digit of a price quote.So, if the US Dollar (USD) trades at 120.19 JPY (Japanese Yen) then each unit of change, such as a an

Copyright © Forex Control