Hope you had a great weekend with plenty of relaxing and learning. The weekend is a great time to:
a) Evaluate your trading performance;
b) Compile all the stats of your trading journal;
c) Do some extra learning via book reading or webinar watching.
It is part of my Forex trading plan to keep an eye on sharpening my learning skills. So this weekend I learned something from/in a totally different field than trading. I studied “thinking and memory”.
In this course I found out that we humans generate 60,000 (!) thoughts per day. Wow – amazing. Even more astonishing is that 95% of those thoughts are the same ideas as the day before! (Source: Jim Kwik, Kwik Learning).
That is scary.
One definition of insanity is doing the same things over and over again and expecting different results.
If we are thinking day in and day out in the same way and about the same things, then there is a good chance your results will not improve!
So I took up the challenge to train my brain and improve my own “pc processing” speed. I hope to improve my:
b) Thinking process
d) Brain speed
e) Pattern recognition abilities
I am excited as this will not only help me with learning Forex trading more efficiently, but it will also improve my educative value for you in my Forex trading advice, Forex writing, Forex lessons, etc.…
Please share with us whether you have specific memory methods that you think will help other traders? Thanks! In any case, will keep you updated on my new learning mission!
Looking at the markets today we can see many trend lines on the EURUSD, GBPUSD, AUDUSD, NZDUSD. I was and still am hesitant to trade anything at these bounce or break spots, especially on a slow trading day like Monday.
The AUDUSD seems stuck in 2 worlds. The long-term weekly down pressure is evident, but it refuses to crash downwards and always seems to find new pushes up.
I attached the week chart: will we get a break or a bounce back to the bottom of the wedge? Price action will tell sooner or later.
The GBPUSD is right at a trend line as well, this one coming from the upside. If the GU bounces up it could be building an ascending wedge. The EURUSD and NZDUSD have similar scenarios as the GU and Aussie.
Maybe the USDJPY offers some tradable setup? It is close to a trend line and made a corrective pattern back to the 500 Fib.
The Yen has made such a strong move up in the last 2 months. It is more similar to the trajectory of a space ship leaving earth’s orbit than to a classical 45 degree trend.
However, I will monitor if the strong uptrend will keep its legs on straight and continue its march upwards. I am looking for bullish impulsive momentum in the price action before even considering an attempt though.
Last but not least, I am a bit more interested in the crosses again. The NZD seems to be biggest bull of them all and relatively the strongest currency.
I can see a down move fully in motion on the EURNZD and GBPNZD currency pairs. To decide which of the 2 is more interesting to sell, we can look at the EURGBP for more information.
The EURGBP is at the bottom of a trend line on the week chart and a bounce is something to reckon with. So looking at the balance between the 2, we should count on the GBP being weaker.
Selling the GU should have better odds, so the GBPNZD seems to be an interesting cross to keep an eye on. I am looking for a hook back to the sideways move and 382 FIB + price action confirmation on the 1 hour chart for a potential short entry.
With a hawk’s eye I will be monitoring the markets this week to see whether:
a) we have Dollar weakness à most likely EURUSD and GBPUSD trend line bounces and AUDUSD and NZDUSD trend line breaks to the upside
b) or we have Dollar strength à most likely EURUSD and GBPUSD trend lines breaks to and AUD & NZD trend line bounces to the downside
Extremely interesting will also be how the EUR, GBP, AUD and NZD crosses behave towards each other. Will we get the bounces or breaks on the EURAUD and EURGBP, just as Nathan’s video analysis mentioned (doesn’t he give the best Forex education ever!?). Plus, will the Yen keep trending up? Please wait for confirmations before taking a trade. I sure am.
The week just started so I will await the sunrise on Tuesday morning, as well as how price action looks like at and during London open before taking action.
Winner’s Edge Trading, as seen on: