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Podcast:
In this video:
01:00 Big movements on the daily charts
02:28 Live training room webinar with 150 people registered
03:26 The importance of the various support and resistance levels
04:47 How you get yourself a really good solid trading plan
06:42 More of continuation and reversal trades next week
Japanese strength this week
Well it’s all been the Japanese strength this week, yet again let me tell you more right now.
Hi every body Andrew Mitchem here.
Today’s Friday the 14th of June. And that’s right it’s been about the JPY strength, yet again this week.
We’ve seen the Yen pairs just falling. We’ve seen a lot of weakness on the US/Yen, the Canadian/Yen, like the Aussie/Yen, the Kiwi/Yen, and I’ve taken quite a number of those trades myself and done very nicely on them, again this week. So there’s two weeks in a row where we’ve seen that.
From time to time, we’ve had the odd day where the prices have pulled back slightly. But overall it’s definitely been JPY strength, and also throughout the week a lot of weakness in the USD itself. But it’s just been great opportunities, looking for those opportunities and those trades out there. Every time we’re looking at shorting anything against the Yen, we’re being jumping in on those trades.
Big Movements for many pairs this week
Now, there’s also been some really big movements especially on the daily charts. And so, as a result of that it’s meant that the stop losses that I’ve been suggesting and placing on the trades on the daily charts have been quite large in somewhere between around 70 and around at 100 pips in cases. But even though that sounds large, don’t forget that when you’re risking with a set amount of risk per trade and you’re using a sensible risk to reward it means that as a consequence the profit targets that we’re looking for are somewhere around the 250-300 and I’ve even got some trades still open behind me, here, on the US/Yen and Canadian/Yen, that the profit targets are up around 330 pips, but again it comes back to risks to reward, like I’ve said so many times.
And if you’ve got a trade, of let’s say for round numbers 100 pip stop loss but a 300 pip profit target, you’re still achieving that 3 to 1 risk to reward trade that we’re looking at achieving, especially on those longer time frame charts. Now again, you could go back to, let’s say an hour chart, and you may have, let’s say again for an example a 25 pip stop loss but the profit target may be somewhere around 70-80 pips, so again it’s still giving us that same 3 to 1 risk to reward. But some big moves and it’s been a great opportunity for cashing in on the strength there on the JPY.
Live Trading Room Webinar – Important Support and Resistance Levels
Yesterday, I had a live training room webinar for my clients. We had about 150 people register and attend that webinar. It was a huge turnout, really good people from all over the world on that. And we took some trades, I had 2 trades on the 1 hour charts, and 2 trades on the 4 hourly charts that I took live in front of people. And I had some trades, quite a number of trades already still open, before the webinar started.
But I spent a lot of time looking over, obviously live trades, and when they showed, looking at a lot of chart time, answered a huge amount of questions for people. So a lot of good, valuable information was shared there. And then also we were looking at where trades might be going in the future, and we also concentrated on daily charts and 1 hour charts.
We didn’t go so much into the 4 hourlies, yesterday, but that’s again for a future event. One thing that we did discuss, and it’s really important, that a huge number of clients are starting to really see the importance of the various support and resistance levels that I use within my strategy. And that could be a number of things, the daily pivot points, obviously a very important level, and that is a level that where price will often go to and turn around and bounce at that level, within a given day. So I’m very strongly looking at daily pivot points. We’re also looking at round numbers, so that’s a number that ends in a 50 or a 00 a double 0.
And the other thing I’m looking at on a daily chart, and so, when I’m looking for bounce levels and the furthest that a price will go, the resistance 3 and support 3 levels, because as my clients know, and as I know, and because we’ve seen it so many times, that very often the furthest the price will go within a day is the support 3, if it’s a short position, or resistance 3 if it’s a long trade. And it happens so many times, so those pivot points and support and resistance levels are critical within your trading because what they do is give you guidelines, they give you places to aim for, and they give you sort of boundaries, of sort of “Well the prices have already reached here for today, quite likely it’s not going to go any further”.
So when you combine these support/resistance levels, the pivot points, the round numbers, put that together with the candle patterns, and daily strength and weakness, and you can see how you get yourself a really good, solid trading plan which makes me lead on to one more thing.
I’ve got here some print outs that I’ve just printed out before I made this video just that I want to share with you. Three comments that I’ve had sent through this week. There’s the three of them, there, that I’ve had sent through.
Happy Clients Feedback
The first one I’ll read to you from Christopher, he asks some other questions, but also at the end, he said, “By the way, I’ve made +7.78% return on my capital since the beginning of the month. I’m so pleased I took your course”. This was written yesterday, the 13th of June.
Another one just came through today on Friday, the 14th. This is from Lucy. “I’m currently up +10% in one week with only 1 risk, sorry 1% risk on any given trade. I’ve currently got 5 trades that I’ve taken; I’ve only had 1 stopped out.” So there’s a +10% gain there, for Lucy.
And the last one, this is from Trevor Brewerton, who’s down on the south coast, the south island of New Zealand. “Andrew, I’d like to say thank you for last week’s trades. I’m really busy at the moment, so I only had time to take your daily trade suggestions. At the end of the week my account was up +6.38% by risking only a quarter of 1% per trade. So I’m very happy about that.”
Well, I’m sure you are, Trevor, and that’s great news to have that. So thanks for sharing that information, and thanks for allowing me to use your names there, as well. Of course whenever I ask for names, like Trevor, and give his whole name Trevor Brewerton, of course we had permission first.
So it’s really good that clients are coming through with, you know, and sending me through that information, sharing their results. The webinar, yesterday, had exactly the same – lots of people sharing their results, how happy they are since they’ve taken the course.
So that’s all I’d like to share for now.
Next Week – Continuation and Reversal Patterns
There was one other thing, actually quickly, we were talking about continuation trades and reversal trades.
I’ll talk about that more next week. So that will be next week’s topic.
So that’s all for now. Have yourself a great weekend. Look forward to talking to you next week, talking about those continuation and reversal trades, really important point to add to your trading arsenal, but more about that next week.
That’s all for now.
This is Andrew Mitchem, the Forex Trading Coach.
