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Sunday, September 11, 2011

Trend for 11th of September 2011

Hi, lovers of trend trading. Since nothing was happening during weekend (markets are closed) I do not want to go into long talks today. I just looked at aud/jpy pair and decided to say a few words on the security. As you may see it fell sharply on Friday. However, if you looked at 4 hour chart you can clearly see that it hit previous support and jumped off it. What does that say to us?

I do not know about you, but I see that a reversal is coming and the pair might continue its’ upward trend. From my perspective I see that the best way to trade the pair is to wait till it consolidates (probably during Asian session) and then buy it near most recent support (that is to be established yet). Then, if my prediction is ok, market will continue upwards and those that have open long positions will go with the flow. 

I would not trade Asian sessions though. They are mostly consolidation times with low range and one cannot get much out of such small ranges. Well, if you are a scalper of a faithful day trader with a good trading system, then I do not have any objections. Just do not overtrade! 

See you tomorrow.

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