Cleopiptra

The daily USD/CAD has formed a symmetrical triangle as the prices are being squeezed as the pair moves sideways in an accumulation cycle.

Remember that when you’re trading the USD/JPY, the risk appetite/aversion of equities will be a major factor. The current downtrend reflects that the yen continues to rally against the U.S. Dollar.

It wasn’t fun to sit through but there was a reason to wait out the pullback into the Wave on the daily chart. In fact there was also a reason to expect a deeper correction as well.

With the strong uptrend – and “strong” hardly seems enough to describe the trend the aussie has been in – I’ve been swing trading. This means that I wait for a pullback to a key level and buy into it. It’s a funny feeling to buy weakness but remember in a swing trade it’s a correction you’re looking for just as long as the overall trend is int

In my last post I mentioned that… “I’m looking for a bounce to either the 78.6 Fibo or the bottom line of my Wave (red) to short into AS LONG AS THE WAVE MAINTAINS THE MARK DOWN ANGLE.”

If Plan A was to play the soft support bounce in distribution… If Plan B was to play the breakdown if the market flattened out to accumulation then… Plan C is what to do not that the trend resumed the mark down.

The USD/JPY is setting up a a descending triangle on the 240 minute chart as prices have congested within downtrend line resistance and horizontal support. What the set up will be here depends upon the market cycle since there is a horizontal level that could be faded.

Let’s look at one of my five minute “daytrade” set ups from this morning on the cable as the mark down cycle showed prices moving swiftly lower. My goal was to take advantage of a bounce and short into the downtrend.

Short term trading is something that many traders are interested in but to me the main challenge to 1) discourage “overtrading” which by the way means trading without a plan for each and every entry. It’s not a matter of the number of trades, but the quality. The other challenge with short term trading is 2) “cost per trade” and this means factoring in the spread.

How does TIME effect your trading? This is not just limited to the time you enter the trade, although that is certainly going to impact your trade because of typical pip movement during the time of day and economic events.