Determining Trend in Forex Is a Must & helps Pocket Pips

Last week’s Forex recap was a great success. The EURUSD win was probably the best one: it closed for +170 pips profitable trade. The GBPUSD was the 2^nd best with plus 100 pips and the AUDUSD missed the target a bit and could have ended up for a loss of 55 pips. All in all a net profits of +215 pips in total and this is a good job done. I truly hope that you were able to catch some of those green pips! 🙂

EURUSD +170 PIPS

Many traders did not see the downtrend on the EURUSD and were unwilling to trade it in the bigger daily consolidation. But I saw that on lower time frames there was a bearish downside pressure and was hunting for a short prior to the break. I know that the EURUSD likes use ‘25’ and ‘75’ levels as S/R so the short 1.1370 seemed ideal.

Price punched through my entry order a bit but eventually dropped to my target for a +170 pips win, nice! 🙂 The quick and swift fall to 1.12 was a great bonus too. That way I had capital freed up for new trades. It just shows how important it is to know the trend and spot the right signals.

GBPUSD +100 PIPS

The Cable however was in a bigger uptrend, going 180 degrees of the EURUSD. The bullish momentum spike was another clue that more bullishness was likely. And indeed… after a small little retracement it started to climb up aggressively and hit the target very quickly.

This was a setup I really enjoyed. The direction, entry and target were all neatly in harmony. And the +100 pips as a reward tasted very nice. Hope you got a slice of that profit.

AUDUSD -55 PIPS

The AUDUSD was a setup were price did respect my entry level… but it missed my first target by some 20 pips before going up higher. Unfortunately the AUDUSD made an aggressive move up whereas I was counting on shallow correction. Those things can happen and are a part of trading. At least the plus pips well compensate the loss on this pair.

Wisdom of the week: determining the trend is absolutely critical for good trading. Without the trend, the trader is trading in the dark without any compass. And traders must know the direction of trading otherwise they will never hit the target.

Many Green Pips, Tarantula FX