CADJPY H1 – Trade Analysis

2015-11-20 19_35_28-CADJPY,H1

This is a trade analysis where I give some tips about what you should avoid in your trading. This trade was opened right after strong signal (Demand) appeared on the chart. Strong signals show that buying has entered the market. But if you do not have other components of a valid VSA setup you need to step away and wait another chance. This demand may represent buying from weak holders which open long trades against current price movement.

  1. At the time of entry background was weak and it was wrong to think about long trades in this case.
  2. Entry was made after strong signal, but dynamic trend is still red. For a long trade dynamic trend has to turn from red to green.

Also in this chart you can see our new indicator – “Reversals”, which is designed to detect price reversals. As you can see “Reversals” also does not support the entry after the strong signal.

NZDJPY M30 – VSA+Reversals Trading +41Pips

2015-11-19 20_19_37-vps49648.vps.ovh.ca — Подключение к удаленному рабочему столу

In this trade I will show how to use in your trading joint work of two indicators (VSA and Reversals) in order to significantly improve your chances for success. Trading becomes much easier with these indicators. As you can see Reversals with high accuracy shows places where price changes its direction. It may be used alone and as a good addition to VSA indicator (in this case you have the best view of the market).

  1. At the time of entry background was weak;
  2. Weak (Minor Supply) and reversal signals before trend change. Reversal signal confirms the signal given by VSA;
  3. Dynamic trend turned from green to red, entry while price didn’t move too far;
  4. Exit after reversal signal. Right after this signal on the chart appeared several strong signals, high volume and the price started to rise.

Total: + 41 Pips

USDCHF M30 – Follow-up Trade +61 Pips

2015-11-17 20_04_52-USDCHF,M30

This is a follow-up trade of previous USDCHF analysis. In H4 timeframe price has broken long-term resistance and continued to rise. Background is strong. This is a good time to look for long trades.

  1. Background is strong
  2. Strong signals appeared on the chart (Demand, Minor Demand) before dynamic trend changed from red to green
  3. Entry after dynamic trend turned green
  4. Exit immediately after weak signal (Supply).

Total: + 61 Pips

USDSEK – Market Analysis

2015-11-14 14_48_10-USDSEK,Weekly

If we look at big picture in USDSEK, we see that Swedish krona has been moving in Mark-up phase since March 2014. It was a very persistent bull market without any reaction to the uptrend. As the price was reaching resistance level of previous high, the nature of movement was changed and mark-up phase was replaced by distribution phase. Price formed a resistance at 8.8000 level. It is well known that people think in round numbers and place limit orders, stop losses in this point. Here is some tip: Avoid round numbers when placing your stops – market-makers will know where your stops are. Above and below any actively traded market are not hundreds, but thousands of stops. The professional traders will gun for these stops, especially during periods of thin trading activity, as this represents an excellent moneymaking tactic.

2015-11-14 15_41_18-USDSEK,Daily

In daily chart it is well seen that the price is moving sideways limited by levels of support and resistance. The rally was stopped when supply has entered the market (several weak signals on the chart). Nature of bullish trend was changed in this point and price started to move in a trading range. Watch carefully when the price is coming close to the support or resistance. Weak or strong signals in Analytical Trader will help you to understand whether the price will break these levels or not.

EURCHF M15 – Trade Analysis

2015-11-12 20_07_41-EURCHF,M15

There is no stable trend in EURCHF (M15) and the price is moving sideways. On the above chart we have upper and lower limit of trading range. It is not a good idea to open a long trade when the price is near upper limit and you do not have strong signals suggesting that the resistance will be broken. Because it is unlikely that the price will leave trading range if there is no imbalance between supply and demand.

  1. At the time of entry background was weak – this is not o’k for a long trade. If we watch the price movement in this chart we see that background often turns from weak to neutral and to strong. This is because price is moving in a trading range and there is no clear trend.
  2. Weak signal near resistance before trend changed – this is a mistake to open a long trade in this point. Because this is a clear indication of price reversal. Also there are no strong signals which would suggest that price will continue to rise.
  3. Dynamic trend turned from red to green – o’k
  4. Long trade has to be immediately closed after Supply signal

USDCHF H4 – After the Swiss unpegged the Franc

2015-11-07 12_17_00-USDCHF,H4

On January 15th this year, when the Swiss National Bank (SNB) suddenly announced that it would no longer hold the Swiss franc at a fixed exchange rate with the euro, there was the biggest single-day move for this country’s currency in the last 40 years. Now let’s see how the Franc is doing in 10 months after this event.

Since May USDCHF movements have been limited by two lines: 1. Up-trendline which represented support for the prices (each next low is higher than previous one); 2. Resistance level (at 0.984) – it was a reversal point for the prices. Also this figure is known as ascending triangle. Each time Analytical Trader has detected strong signals near the up-trendline and weak signals near the resistance right before the price turned its direction.

Recently we had a break-out through the resistance. Then the price moved back to this resistance just to touch it and continue to move up (it happens very often when the resistance becomes support). In time of touching there was no big volume (it is called no-supply) and it means that professionals are not interested in down move – they are now bullish.

Now background is strong. The price is reaching two important long-term resistance levels: previous high and the price level which was valid before the SNB unpegged the franc. It will be interesting to watch price behavior near these levels. Look carefully for weak/strong signals and volume when the price is close to the resistances.

GBPAUD M30 – Trade Analysis

2015-11-05 21_18_53-GBPAUD,M30

  1. At the time of entry background was strong – o’k
  2. No strong signals at this price level before trend changed. This is a mistake. Only strong signal + strong background can guarantee that there is imbalance between supply and demand in favor of demand.
  3. Dynamic trend turned from red to green – o’k
  4. The trade was opened in a low spread up-bar when the price didn’t move too far after trend changed – o’k

GBPUSD H1 – Near support trade +105 Pips

2015-11-02 19_27_01-GBPUSD,H1

  1. At the time of entry background turned to strong. It means that imbalance between supply and demand is now in favor of demand.
  2. We have a long-term support in the chart. This support was established by previous low. Several strong signals (Major and Minor Demand) appeared as the price was approaching the support. One more strong signal here: Shake-out – wide spread down bar accompanied by high volume. But next bars are bullish and we see price reversal. It means that it was a stopping volume which contained more buying than selling. Otherwise the price would have continued to move downwards.
  3. Dynamic trend turned from red to green.
  4. Entry – when the background turned to strong in a low volume down bar.
  5. Exit after reaching TP level.

Total: +105 Pips

NZDCAD H1 – Follow-up trade +138 Pips

2015-10-25 13_01_33-NZDCAD,H1

In previous NZDCAD analysis it was noticed that the price was moving in mark-up phase. It is possible to draw an up-trendline with several touches which represents support line for the price. The following trade was based on near-trendline setup.

  1. Background is strong.
  2. Strong signals (Major Demand, Minor Demand) near the trendline.
  3. Dynamic trend turned from red to green
  4. Entry in a down-bar near the dynamic trend
  5. Exit by reaching TP level

Total +138 Pips

CADCHF – Market Analysis

2015-10-24 11_56_05-CADCHF,Daily

In daily chart CADCHF is moving in a bearish trading channel. Background is weak. Lower and upper lines of trading channel are trendlines with several touches. Upper line is a resistance to higher prices and Lower line is a support. The area between the upper and lower trend lines is known as the trading range. In VSA terms, the (sideways) market is trading within its range, and will continue to do so until applied (selling or buying) effort makes it break out. VSA trader will analyze price action in the top and bottom quarters of the trading range, because important observations take place in these areas, as the price heads for the supply or support lines. The area above the supply (higher) trend line is known as overbought and the area below the support (lower) trend line is referred to as oversold.

2015-10-24 12_26_26-CADCHF,H1

In H1 timeframe the price has reached the upper line of trading channel. Near this area we see several weak signals (Supply and Minor Supply).