Forex Signals for 24/02/2010

Recap

Hello everyone,

Hope the week is going well. We have yet experienced some crazy price action in relation to news after some bad economic data in the US. Surprisingly though Dollar did not react as we would expect it to, You see academically speaking the number that came out last night in CB Consumer Confidence was a sign that US economy not looking good. This would usually signal that economy us tightening and any suspicion of rate hike is non-existent.

However what we saw was an appreciation in dollar in most of the currency pairs bringing us back to our scenario of risk aversion. Dollar at the open of the market on Tuesday was already showing some signs of strength as commodities were heading down, My view would be that investor jumped on the bandwagon ignoring the economic data in this instance.

It’s quite an uncertain market at the moment and the best way to minimize risk is to go back to the Dollar which is considered as the safe-haven.

NEW TRADING STRATEGY

Ok after the latest fundamental wave hitting the market, volatility has increased quite a bit. Thus my levels are not working well in current market conditions.

We will use a different strategy from this point on which will be based on a swing trading style that I have developed over the years with great success. I was reluctant to put out this strategy mainly due to the fact that it requires a lot of workJ. However, taking into account the current market condition, this method would be best suited for this market.

Currency of concern will be most of the majors and some of the popular cross currencies.

The risk to reward ratio will be 1:2.

The best way to work around this strategy is to risk 2% of your total account each time those signals are sent out. You may get a signal on any particular currency at least once a week. Pairs such as the EUR/JPY and the GBP/JPY may generate up to 2 trades per week due to their high volatility.

Stick to only two pairs a week, example you may want to trade the GBP/USD and the AUD/JPY only each week risking 1% on each pair every week. Our goal here is to increase our account by 2% to 4% (ideal case) every week.

You may be in the market for more than a day and those trades are completely STREE FREE with entry, stop loss and take profit.

If ever there are any funny development going on I will post it on twitter and the website. Please check my twitter page frequently to see if any changes are made. I will be sending emails too soon which will make life easier for you to follow my entries etc…

GBP/AUD -100 pips

GBP/USD Still Active

PS- I posted the wrong TP for EUR/JPY it was meant to be twice the size of the Stop loss. My mistake but we did take profit though.

Today’s Signal: No trades yet

EUR|GBP – Buy Only – 0 | SL- 0 | TP- 0

Sell Only– 0 | SL –0 | TP – 0

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__More trades will come tomorrow as the market opens__

NOTE: For those who are thrill seekers, you may decide not to bring SL to BE once half target is reached and let profit run until final target is reached. On the other hand for those more cautious, do not be afraid to bring your SL to BE when you reach half way to target and take partial profit half way.

IMPORTANT: I will be sending two possible scenarios from tomorrow. Buy and sell orders on most of the majors and the Yen pairs. If for example buy order is triggered, cancel sell order and vice versa.

PSS: There may be changes i the trade posted throughout the day, if trade does not look favorable, I will advice all of you ASAP through twitter.

TRADE MANAGEMENT:

Bring Stop Loss to break-even as soon as you reach half way to profit target and take partial profit at this point.

Happy trading

Ash Naeck