Forex Trading Strategies 10

Currency Trading Strategy Number 49:
I had somebody ask me why I waited until 03:00:00am New York
time to make my move, in the mean time missing potential in
advance of that timeframe. The answer is quite simple. That is when
London trading kicks in, and that is generally the busiest session on
the forex. You will notice that is when the Euro usually starts its
major trend to find its average daily range of 76 pips. Those pips are
usually put in within the first 12 hours of trading. Check it out for
yourself. It happens each and every day, over and over again.

Currency Trading Strategy Number 50:
"Ascending Triangle": Price forms higher lows, and looks like
somewhat of a horizontal line on top and a rising lower trend line.
This formation is normally bullish. You take its height at its highest
point, and measure that distance from the upper line to obtain the
upside target. If you want to see an example of this type of triangle,
please send me a note: prbain@tradingsmarts.com and reference
May 26/03.

Currency Trading Strategy Number 51:
By combining "pivot point readings" with other signals – like
divergence, multi-tops, trendline breakouts, triangular patterns, etc.
– you can pretty much tell where price is going next. Normally, I
would say that you should only enter trades in and around pivot
points. But, given the large distances that can sometimes happen
between pivot point areas, you then have to be on the lookout for
other evidence of future price direction.
Like I keep saying, trading is "shades of gray." Nothing is always
black and white in this business. Trading is as much an art as it is a
science. That all said and done, when price does encounter a pivot
point, you can see that that point has a powerful influence over
price. So, always be on the alert for that next point of interaction
with the next pivot point, as it will have a distinct bearing on what
happens next.

Currency Trading Strategy Number 52:
If you are trying to catch the major trend that unfolds during the
London hours, but are afraid of getting your entry point figured out
correctly, wait to catch the next entry point, as the Euro "reaches"
for its average daily range of 76 pips. The next entry point will occur
in and around the next pivot point that price passes through. Or, you
may catch price as it tries to retest the pivot point it just went
through. That way, you won't run the risk of getting in too early,
when the trend tries to unfold in early trading. Sometimes, price
fakes you out, and goes in one direction for a while, and then
reverses course, before finally picking its direction. My favorite
saying is, "He/she who procrastinates wins." What you are giving up,
of course, are those initial pips of the trend, which may amount to,
say 30 give or take, but you are more sure of capturing the
remaining 46, as the major trend of the session matures.

Currency Trading Strategy Number 53:
I would like to remind you that the pivot points above the central
"Pivot Point" have a "sell" bias, and the pivot points below the central
"Pivot Point" have a buy bias. These biases hold true unless price
action turns a pivot point's bias from sell to buy or buy to sell – i.e.,
from resistance to support or support to resistance.
On June 6, 2003, you would have observed from price action that M3
held its bias, but the pivot points below the central pivot points were
turned from buy, or support, points into sell, or resistance, points. Of
course, price action determined this.
The other important point to make is that when the major trend
reveals itself, as it did on that day (and does every day, within 12
hours of the start of trading for the session), you should think along
the lines of the bias. That day's bias in early trading was "short."
Meaning, you should have forgotten how to spell the word "long."
Scalpers want it both ways, but that doesn't work in the forex –
unless, of course, you want a short haircut. I say this because
currencies trend well. Don't second-guess the trend until it reverses
itself with bona fide signals. In other words, don't sell to soon, and
don't buy too soon.

Currency Trading Strategy Number 54:
Keep those trading journals going! If you always trade the way you
always traded, you'll always get what you always got.