Week 51 EuRJPY Analysis

(Technical analysis done by Eric Lye in our Forex Trading Blog. The purpose is to share how we analyze the market using price action and put ourselves on the side of higher probabilities of the possible scenarios)

Last week, price attempted to make a higher high but eventually still fail and tipped over forming a rising wedge and a possible CD leg down move in coming days.

It's going to be a new year soon.  I hope traders that are following my blog would put in more effort to learn about price action and understand the market better.  It is pointless trying to learn "trading systems" or "high probability strategies" without the fundamental abilities to understand the market.  If you do not have strong economic background, technical charts is your best friend!  If you are not good in either both, then highly likely you are a gambler without knowing yourself.

Week 50 EURJPY Analysis

(Technical analysis done by Eric Lye in our Forex Trading Blog. The purpose is to share how we analyze the market using price action and put ourselves on the side of higher probability of things happening.)

I have not been able to update my blog for past weeks.  Trying to figure out ways to make a difference in the way we deliver our knowledge to traders.  (Have been trying the Google Wave, quite a cool tool)

Anyway, year coming to an end, but that doesn't means there is no trading opportunities :-)
But, do trade with caution and take it a bit slower.  What is going to happen next year is really difficult to say, but as long the charts tell us something, we plan accordingly

Week 46 EURJPY Post Analysis

(Technical analysis done by Eric Lye in our Forex Trading Blog.  The purpose is to share how we analyze the market using price action and put ourselves on the side of higher probability of things happening.)

I always encourage my students when we are not trading well, having misreads, or miss trades.  Instead of giving up for the day, for the week, might as well put the time into productive activity like doing post analysis.

The purpose is to ask yourself if given a second chance how would I trade this.  This will help you to improve your recognition ability and reinforce your thought processes so that next time when similar pattern occurs, you have a better chance of catching it.

Forex trading is not necessary only for the faint heart.  You don't have to be fast, but you definitely need to plan.  

Week 46 AUDUSD Analysis (Thur Update)

(Technical analysis done by Eric Lye in our Forex Trading Blog.  The purpose is to share how we analyze the market using price action and put ourselves on the side of higher probability of things happening.)

Price found support and reversed up yesterday.  There was a bull flag in the lower time frame which presented opportunities for us to go long.

Week 46 AUDUSD Analysis (Tue Update)

(Technical analysis done by Eric Lye in our Forex Trading Blog.  The purpose is to share how we analyze the market using price action and put ourselves on the side of higher probability of things happening.)

Price is still consolidating within the inside bar.  i.e. market is undecided on its direction till a clear break above or below

Week 46 AUDUSD Analysis

(Technical analysis done by Eric Lye in our Forex Trading Blog.  The purpose is to share how we analyze the market using price action and put ourselves on the side of higher probability of things happening.)

There are many occasions when we try to analyze the market and not sure whether it would be up or down.  Example AUDUSD this week, it has came down by 300 pips last week and the immediate question is will it continue or reverse back to the previous flow.

Currently, it is sitting on the 61.8% Fibo but there is no evidence that the pair is turning up.  Thus, the plan is still to short this pair as of this morning unless the price starts to developed into a reversal pattern.

Week 45 EURUSD Analysis (Update)

(Technical analysis done by Eric Lye in our Forex Trading Blog.  The purpose is to share how we analyze the market using price action and put ourselves on the side of higher probability of things happening.)

Price is at support zone, but EURUSD is pretty bearish as EURGBP has started its down flow.  While there isn't enough information to make a plan, avoid...

2010-11-10 EURJPY Live Trade

(This is a live trade shared by Eric Lye in his Forex Trading Blog.  The purpose is to share how we trade and provide the learning points.  Note that there is no absolute right or wrong about a trade, it is all about managing it well)

H4 made a nice turn and bounced off from floor and the trend line.  Zoom into H1 to get a late entry and achieved a 2R trade.  In my opinion, price should be able to ride further, but my entry was not good enough and thus has less options to manage this trade.