Thread: Trader123's trading ideas

Three reasons to be bearish on USDCAD

1. Previously USDCAD is up because oil price is falling. Now oil price has rebounded, this should strengthen CAD and push USDCAD lower.

2. Resistance is formed at 1.0300.

3. Daily stochastic is showing sell signal.

Shorted 20,000 USDCAD at 1.0236
Stop level at 1.0314
Target level at 1.0114

Chart: http://binarytrading.blogspot.com/20...on-usdcad.html

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EURGBP should continue to trade sideways

European data has turned downturn, UK data has continued to be weak, so EURGBP should continue to trade in range.

Daily stochastics is pointing up for EURGBP.

Bought 20,000 EURGBP at 0.7878
Stop level at 0.7820
Target level at 0.7950

Chart: http://binarytrading.blogspot.com/20...-sideways.html

EURGBP strongly rebounds

U.K. pound fell against the euro for a third day and dropped versus the dollar.

The pound had its biggest weekly drop against the dollar last week since mid-June as manufacturing business shrank by the most in a decade, adding to evidence a recession is looming.

The faltering economy will weaken the pound to $1.90 and to 80 pence per euro by year-end, according to the median forecast of analysts and strategists surveyed by Bloomberg. The yield on the 10-year note will end the year at 4.87 percent, according to a separate survey.

Last Friday I had bought 20,000 EURGBP at 0.7878, stop level at 0.7820, target level at 0.7950. Current rate is 0.7916, unrealised profit is US$141.48.

Chart: http://binarytrading.blogspot.com/20...-rebounds.html

AUDUSD looks oversold

Techically AUDUSD looks oversold based on stochastics, with good support at around 0.9300.

Short term chart shows that AUDUSD is picking up from a base of 0.9280.

Market expects Reserve Bank of Australia to keep its benchmarket rate at 7.25% tomorrow. I predict RBA to keep interest rate the same. So I expect AUDUSD to move higher after the announcement.

Bought 20,000 AUDUSD at 0.9334
Stop level at 0.9260
Target level at 0.9450

Chart: http://binarytrading.blogspot.com/20...-oversold.html

My Trading System for Forex

The key word for my trading strategy is back-testing. If back-testing result shows that this indicator has proven to be successful and profitable, I will be interested to use this indicator in my trading.

Previously I have done back-testing based on 2 years period. I had used the indicators for my trading and this system had helped me to double my account balance. But the success rate has fallen for the past few weeeks, so I decide to improve my system.

This time I had done back-testing based on 1 year period as well. I will enter a trade only when both 1 year indicator and 2 year indicator are pointing in the same signal (buy or sell).

Currencies Pairs : Indicator for 1 year / Indicator for 2 year
USDJPY : Parabolic / MACD
USDCHF : Stochastics / Stochastics
USDCAD : Comm Channel / Parabolic
AUDUSD : Bollinger / Bollinger
EURGBP : Stochastics / Comm Channel
NZDUSD :Comm Channel / Bollinger

I had used ForexYard platform for my own trading, I had only done my testing on currencies pairs that have spreads of 4 pips or less. If you are interested to ask me to do testing for other currency pairs, send an email to me at metal.commodity@gmail.com.

Two indicators signal buy for USDJPY

Two of the proven indicator for USDJPY is Parabolic and MACD, currently both indicators are signalling buy.

But I have to warn my readers that FOMC is going to announce their interest rate decision at 18.15 GMT Time, so we have to expect volatility.

Bought 20,000 USDJPY at 107.86
Stop level at 107.00
Target level at 108.60

Chart: http://binarytrading.blogspot.com/20...or-usdjpy.html

Originally Posted by trader123

Two indicators signal buy for USDJPY

Two of the proven indicator for USDJPY is Parabolic and MACD, currently both indicators are signalling buy.

But I have to warn my readers that FOMC is going to announce their interest rate decision at 18.15 GMT Time, so we have to expect volatility.

Bought 20,000 USDJPY at 107.86
Stop level at 107.00
Target level at 108.60

Chart: http://binarytrading.blogspot.com/20...or-usdjpy.html

Target level of 108.60 is reached, profit is US$136.

Bearish on NZDUSD

High yield currencies continue to suffer for the past 2 weeks as market perceives that the high interest rate will not be sustainable, sooner or later their central banks will have to cut interest rate to support their economy.

Kiwi is one of the high yield currency. Due to weak economy data, market expects central bank to cut its interest rate over the next few months. Falling commodities prices also help to push Kiwi lower.

Bollingerband is showing sell signal for the daily chart. Hourly chart is still a downtrend. The trend is your friend.

Shorted 20,000 NZDUSD at 0.7199
Stop level at 0.7278
Target level at 0.7100

Chart: http://binarytrading.blogspot.com/20...on-nzdusd.html

Originally Posted by trader123

Bearish on NZDUSD

High yield currencies continue to suffer for the past 2 weeks as market perceives that the high interest rate will not be sustainable, sooner or later their central banks will have to cut interest rate to support their economy.

Kiwi is one of the high yield currency. Due to weak economy data, market expects central bank to cut its interest rate over the next few months. Falling commodities prices also help to push Kiwi lower.

Bollingerband is showing sell signal for the daily chart. Hourly chart is still a downtrend. The trend is your friend.

Shorted 20,000 NZDUSD at 0.7199
Stop level at 0.7278
Target level at 0.7100

Chart: http://binarytrading.blogspot.com/20...on-nzdusd.html

This morning I had Shorted 20,000 NZDUSD at 0.7199, stop level at 0.7278, target level at 0.7100.

A base is formed at 0.7170 preventing NZDUSD from going lower. If the base is solidified, NZDUSD can rebound from there. So I decide to take profit first, bought back at 0.7185, profit is US$27.20.

ECB President Mr. Trichet said that recent economic data pointed toward "a weakening of real GDP growth in mid-2008" following strong growth during Q1.

I have been waiting for a good entry level to buy EURGBP. This has pushed EURGBP lower, creating an opportunity to buy EURGBP at lower price.

Both stochastic and comm channel had signaled buy for EURGBP.

Bought 20,000 EURGBP at 0.7912
Stop level at 0.7890
Target level at 0.7950

Chart: http://binarytrading.blogspot.com/20...00-eurgbp.html