- This article, written by Patric Tengelin is taken from the FX Trader Magazine (JAN/MARCH 2013 issue).
In the stock market, the ultimate stock to day trade is whichever best fits your trading style and produces enough profits to buy 100 new shares faster than trading any other stock. We are market technicians and our favourite FX pair is the EUR/USD on the 30-minute chart. Technical analysis is not so much about the actual lines on the chart as it is trading the reaction of other traders at those lines.
By the end of this article you will have a clear understanding of how to eliminate the guesswork in trading and always be on the right side of the market.
This particular strategy will appeal to reactive traders who do not front run price action. The entries will be inferior but the hit rate superior. The equity curve will not be subject to the wild swings s o m e t i m e s experienced by anticipatory traders who constantly try to pick tops and bottoms but before we get into the meat of the strategy and when it is most profitable we need to make a few assumptions. We will list days when you should not trade at all and then talk about the time of day when you should look for setups. You will also learn about the key numbers for the EUR/ USD and how they constantly show up as support and resistance. Throughout the article we will give examples of the mechanics behind price movements and how to interpret price action, but let us first talk about indicators.
Editors’ Picks
EUR/USD declines below 1.0700 as USD recovery continues
EUR/USD lost its traction and declined below 1.0700 after spending the first half of the day in a tight channel. The US Dollar extends its recovery following the strong Unit Labor Costs data and weighs on the pair ahead of Friday's jobs report.
GBP/USD struggles to hold above 1.2500
GBP/USD turned south and dropped below 1.2500 in the American session on Thursday. The US Dollar continues to push higher following the Fed-inspired decline on Wednesday and doesn't allow the pair to regain its traction.
Gold slumps below $2,300 as US yields rebound
Gold extended its daily slide and dropped below $2,290 in the second half of the day on Thursday. The benchmark 10-year US Treasury bond yield erased its daily losses after US data, causing XAU/USD to stretch lower ahead of Friday's US jobs data.
Top 3 Price Prediction BTC, ETH, XRP: Altcoins to pump once BTC bottoms out, slow grind up for now
Bitcoin reclaiming above $59,200 would hint that BTC has already bottomed out, setting the tone for a run north. Ethereum holding above $2,900 keeps a bullish reversal pattern viable despite falling momentum. Ripple coils up for a move north as XRP bulls defend $0.5000.
Happy Apple day
Apple is due to report Q1 results today after the bell. Expectations are soft given that Apple’s Chinese business got a major hit in Q1 as competitors increased their market share against the giant Apple.
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