Pre-NFP Friday Outlook

Based on today’s price range where the high (resistance) is 1.56991 and the low (support) is 1.55688, and the current price trends seems to head low, I would expect the EURUSD will be dipping lower again.

I will trade after the release of US NFP at 8:30 pm (Brunei) and will observe the market condition by as early as 8:00 pm (Brunei). Shall the EURUSD penetrate or trading below 1.55688 I will focus on short trade. Alternatively, if the EURUSD trading above 1.56991 I will focus on long trade. Subject to trend line confirmation and the development of the candle bars between the support and resistance line of today.

See you tomorrow for the great wave. Happy trading guys ;)

Updated Version of SRDC

The basic version of the SRDC objective is to filter out false move or signal created by the market. From the Daily chart, we need to add Bollinger Band (Period 21 with Deviation 3) and SMA 84 at Close.

As part of filtration technique, the SRDC rules require a trader to use multiple time frame say 1-hour and 15 minute chart. The daily candle support and resistance will act as guide for trend breakout.

In order to enter for a trade a simple rules must be obey, i.e. as follows:

Long : Price must be above the 84 SMA
Short : Price must be below the 84 SMA

Price must not be touching either the 84 SMA or the middle band of Bollinger Band.

The Outer Band (Upper & Lower) must point in the direction of the trade or price movement. If price going low the Outer Band must be pointing down not up. If price going high the Outer Band must be pointing up and not down.

A trade must ensure the he/she have enough room between entry point and the Outer Band to allow the trade to develop a suitable exit point. The exit point is when the price touch the Outer Band.

The stop loss for this technique will be the point where the middle band of the Bollinger Band currently position.

I will show this technique in real market condition as it happens. Happy trading guys ;)

Waiting for news to trade

I am not posting any trade setup today as today we all will be expecting wild ride from the Euro zone multiple trade data. So my strategy is to wait for the news to make some movements within the market, particularly EURUSD and use any breakout point as entry opportunity. Today I will be using Sure-Fire Forex Trading method to increase my profit probability.

I will update on the event and any entry opportunity as it happens. Happy trading guys ;)

Loss EURUSD with SRDC, but profit with Sure-Fire

My SRDC method today post a loss of 20 pips as the price briefly reverse from my entry point on EURUSD. But taking the Sure-Fire Forex Trading system will give me better profit margin with minimal risk. Let see how it works as illustrated by the chart below:



Sure-Fire Forex Trading system use somewhat similar breakout technique like the SRDC but using different trading approach. It require the trader to use multiple time frame, where longer period chart time frame to identify trend and lower chart time frame to make entry. I like to use 30-min, 5-min and 1-min chart. The 1-min chart will not be discussed here as it will require advance entry technique.

My 30-min chart give me a signal to go short (sell) based on the signal given by the EMA where the red line cross below the gold line. Before I can make any entry the price must first break the most recent support line which today is at 1.55581. Once it break this price I will immediately go to the 5-min chart to find an entry point.

For any entry, the Sure-Fire Forex Trading rules that a trader must use a fibo line where an entry must only be executed when the price start to retrace from 38.2%. Target must be at least twice the risk and in today's case the profit potential is 3 times the risk at 1.55271 or 38 pips against risk or stop loss of 11 pips (1.55761) at the 61.8% point.

As you can see from the 5-min chart, I can easily achieved my profit in less than 1 hour from my executable entry. In case you wish to now more about the EMA that are use in this system, I suggest you personally purchase the e-book. I cannot give the full parameter settings here as it will dragged me into legal trouble with Mr Mark McRae, owner of Sure-Fire Forex Trading.

Happy trading guys ;)

Trade Setup: 30 July 2008

Yesterday my SRDC trading method yield $100 on EURUSD and on USDJPY despite earlier loss on USDJPY. It all hit the target just after 9 pm Brunei. Today may be the same story as of yesterday as the market seems to be in directionless movement. CNBC reports, today maybe quiet until Thursday market data will make some move on the currency market with Friday as the mother of all movers & shakers when the US NFP will be released.

So let's take a look on my trading setup today starting with EURUSD followed by USDJPY. The blue dotted line represent my Buy Stop and Sell Stop order currently in place:




As always, I put my stop loss 20 pips from every entry with 10 pips target profit.

Happy trading guys ;)

Loss on USDJPY

The mixed data on the Japanese retails and unemployment has created somewhat choppy market wave. My trade hit it's stop loss just now when the price climb briefly to 107.535 and my account loss 20 pips. However I still have EURUSD pending orders and I will likely delete my other pending buy stop order on USDJPY as precaution with the choppy market volatility.

Never give up in trading guys. I am addicted to it...so happy trading ;)

Trade Setup: July 29, 2008

Here are my trading setups for both EURUSD and USDJPY for today, Tuesday 29th July 2008 using SRDC (Basic) method:


Place buy stop at 1.57681 with stop 20 pips away from entry and target at 1.57781 (10 pips). I also place sell stop at 1.56836 with stop 20 pips away from entry and target 1.56736.

Here is the trade setup for USDJPY:

Place buy stop at yesterday's high of 108.065 with stop 20 pips from entry and target at 108.165 (10 pips). I also place sell stop at yesterday's low of 107.335 with stop 20 pips from entry and target 107.335 (10 pips).

I personally feel that the USDJPY will hit the target first today if the Japan number is better than expected earlier today.

Until then, happy trading guys ;)