Quick analysis of today’s 2 trades

As planned, spent a few hours on trading today (in the morning), whilst spending the afternoon working on another project, and finally getting some decent exercise done in the sunny outdoors for the evening.

May3 NZDJPY 4H

Following my exercise and good pasta dish for dinner, I had another look over the two trades I took today.  Sharing my bit of insight.

Incidentally, both trades were 100% in line with the strength/weakness assessment from yesterday  – one being long CADCHF, the other being short NZDJPY – both utilised setups on the 4-hour chart.  The first was a full stop out, and the second hit a tightened stop after going 30 pips into profit.

Below is a chart of the price behavior using the 15M timeframe (remember there are 16 15M-candles inside each 4-hour bar!).  I share these charts here because i thought it was interesting that both trades were exited on price extremes – so either I put the stops in bad places or I was just very unlucky (twice); secondly, on the 15M timeframe, both instruments showed clear reversal patterns after two relatively sharp and fast price moves.

Here’s CADCHF:

May3 CADCHF

 

And here’s NZDJPY

 

May3 NZDJPY

 

I did think it was rather interesting to see how a 4-hour setup played out on a lower timeframe.

More trading work on tomorrow’s agenda.

This entry was posted in Financial Markets 101, Reversals Strategy. Bookmark the permalink.

2 Responses to Quick analysis of today’s 2 trades

  1. Malen says:

    Thanks for sharing Georges. Could you expand a little on your “thinking” / what you mean by “strength/ weakness assessment”. There were several excellent charts structures developping although this can be completely flipped over by major news release” like US CPI or Boe. Oh after checking the date i see you wrote this post last week ….Last week my focus was GB and Eur weakness and which pairs were lagging …ie: GBP -CAD and GBP- JPY had still some downward momentum versus the early signs of some downward exhaustion in GBP- USD and even more so in EUR-USD .Thanks for sharing. I see you like your pin bar 🙂

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    • The strength/weakness I discussed a little in the linked post https://trick-or-trade.com/2018/05/02/market-analysis-looking-for-trending-conditions-may-2018/. Strength and weakness for each currency is determined by whether price is above or below a particular moving average. Yes, I agree that news (whether scheduled or unscheduled) can completely nullify technical patterns that the charts display (more so the lower the timeframe). Some argue that the pattern gives an indication which way the market will go following the news (I don’t subscribe to that few). An exception is where you have a tightening pattern, such as a symmetrical triangle, prior to a scheduled news item, which makes sense. Yes, I use the pinbars sometimes. Sometimes the news item will mark the start of a new trend (which is logical also). Sounds like your analysis is quite thorough – keep up the good work!

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