In this video:
00:28 Continuation Patterns – what are they?
02:26 Summertime Blues – what does that mean?
04:27 The strongest currency for this week
05:17 Andrew being in Sydney at the GKR World Champs
Continuation Patterns and The Summertime Blues
Let me explain more right now.
Hi it’s Andrew Mitchem here, the Forex Trading Coach. Today is Friday, the 26th of July. And continuation patterns and the Summertime Blues are two things that I’d like to talk about in this video. Both are very different but let me start with continuation patterns.
What is a Continuation Pattern?
It’s something that I mentioned yesterday on my live two hour webinar with my clients. And it’s one of the ways that I’m looking at trading. I’m either looking for a reversal pattern or a continuation pattern. Continuation patterns are when, for example, you are buying a currency and you’re seeing the currency go up you then have a retracement and then you’re looking for it to go long again. So you’re waiting for that opportunity to go long in an overall uptrend but after we’ve had a pull back. So that’s what I mean by a continuation pattern.
There are certain things that I’m looking for to back up the candle pattern in terms of where it bounces and why it bounces and what particular levels it bounces at, but when you get a good continuation pattern they’re really good high probability, but also very safe trades. Now they’re safe because you are trading with the main trend. On the chart you’ll find a reversal pattern, so in other words, buying right at the bottom of a large down trend. A reversal pattern looks very dramatic, looks really impressive on your charts, as you’ve pulled out like the bottom and then you’re going long. But the continuation pattern is a safer pattern, because you’ve had that uptrend already, then you’ve had the pull back, then you’re looking to go long again. Exactly the same in reverse for a short position. You’ve had a large sell off, then a pull back a retracement back up, then you’re looking for the opportunity to ride the trend down again in a continuation of the main trend. So really important style of trading there, the continuation pattern.
It tends to act fairly quickly because you are trading with the main trend, so it’s not like a type of trade where you have to be hanging on for a long time. They tend to move fairly quickly once they show. But it’s something that I cover in my course. It’s something that I really encourage my clients to look for, and as I mentioned, it’s something that we spent a lot of time talking about on yesterday’s webinar. So I wanted to pass that information on and share it with you as you’ll find it really helpful when you spot these continuation patterns within your charts.
Trading the Summertime Blues
The other thing that I mentioned, Summertime Blues – what does that mean? Well for me, here, well it’s sort of winter time here really, it’s winter/spring time. But Summertime Blues, because the northern hemisphere, the main trading parts of the world, the Europe, the North America, etc, it’s your summer time. And so you generally find that towards the latter part of July, which you’re in right now, into August, you find that the charts sometimes become a little bit difficult to trade. Some quite erratic patterns sometimes, other times some just very plain, boring, range ban markets. And depending on the pair, we’ve seen both of those for the last couple of weeks.
Many pairs have just been quite tightly range ban, not a lot of good price action happening and it tends to be because the main markets, those European markets, those North American markets, the big players within the Forex market tend to be having their summertime holidays or vacations, so you’ll tend to find there’s less players within the market.
Go back through history, you’ll find that sort of later into July, early August, that happens year after year after year. Personally, I find that this is the time of year when I get my probably poorer results throughout the year, and it tends to be that Summertime Blues theory that I put it down to. To try and combat that I’m only taking the very strongest looking set ups, and I’m also trading more onto the one hour charts. It’s a slightly shorter time frames than I usually trade. I’m finding that the one hour chart, look if you like the 15 minute charts look at them, but for the one hourlies are about as short as I go. I’m not tied to my computer then. But one hour charts you’re in and out of trades slightly quicker than you might be on let’s say four hour charts. But if you see a decent pattern on a four hour chart, by all means, take it, but I’m finding the one hour charts, right now, are tending to find me the better opportunities.
What have we seen this week on the Forex charts?
Well we’ve seen some strength reappear again in the EUR, and the Swiss Franc, and especially the NZD. It’s been probably the strongest currency for this week, and I’m looking for that to continue, right now, being Friday. And also, the USD’s been the weakest currency for this last week. I have five trades open on the daily charts behind me right now. I don’t have any others open on shorter time frames. It’s in the Asian session right now when I’m recording this, so the market’s generally pretty quiet, but I’ll be looking at it for the hourly charts into the European session later tonight, my time. But five trades open here, looking for that New Zealand strength to continue, and that U.S. weakness to continue, predominantly. So that’s it in terms of the charts.
6th Place at the GKR Karate World Cup
The last thing that I wanted to mention was this time last week I was in Sydney at the GKR World Champs. There were over 1,200 competitors there, out of 48 competitors within my particular division, and I came 6th. So officially I’m 6th in the world for my division, which is my rank and my age. So I’m really pleased with that, really chuffed with it.
The thing to point out, all the people that do karate, that I’ve met, are high achievers, they’re there trying to achieve something. They work through difficulties, they have challenges, but they stick at things, they persist with things, persevere with things, and they work at something that works for them. Very positive minded people, and if you haven’t ever tried a martial art, I highly recommend it. It works tremendously well with Forex trading here, which tends to be more office bound. It also helps you up here, helps you focus, helps you be disciplined with your trading and your mind. Look the two go together really well.
That’s it for now. Look forward to talking to you this time next week.
Bye for now.