Market analysis and insights on Forex & Commodities!

Using 3 timeframes of 5-min, 1-hour and 1-min, this is a simple way to pinpoint entries and exits to scalp the EUR/USD, as well as take longer term intraday swing positions.

From the chart, it is obvious the price action is contained in a downwards sloping channel, which means that most opportunities will have a short bias, since the edge lies in that direction – the path of least resistance.

In total, there were at least 20 good entry opportunities which provided a scalp/swing ranging from 4 to 16 ticks (each tick is USD 12.50 per contract), for those who are thinking of trading intraday. I am waiting for it to pull back to the top of the channel for another opportunity to catch another major swing down.

 

After my previous post, the EUR/USD has continued downwards and hit my profit target, where I took profit on my accumulated shorts and watched to see if the next support would be broken. 

Despite the bullish news in the evening today, which caused a major spike up on most equity and Euro-related forex futures, the EUR/USD gave up its gains and went back into negative territory. 

Watching the price action throughout the day, I knew that while retail traders might be going long for a breakout play, professionals were already taking the chance to liquidate their longs and were initiating short positions.

I started scaling in shorts after the major spike, and managed to get in most of my positions near the day high. I used the 5-minute charts to scale out my positions and take profit as price started to break down. 

Now, I am still net short, and I am waiting to see if price manages to convincingly break the support for another leg down.

Stayed tuned in the Synapse forum!

Cheers
Spencer

Hi peeps

I hope the market has been treating you well, with bullish stock markets and volatile forex markets. This has provided many good trading opportunities, and I hope you didn’t miss out on them.
 

On the 29th of June, I was looking to initiate shorts, and subsequently did, using a range trading strategy to stack my position size. Although I did have several intraday trades on the 5-min charts, my larger view was bearish, hence I also held on to the bulk of my positions. 
 

This is an example of a breakout play, where price breaks support and provides opportunities for trading when it comes back to test the breakout point. 

For this EUR/USD chart, price came back twice to test the support-turned-resistance, giving me opportunities to stack my shorts.

If we zoom in on the smaller timeframe, such as the hourly charts, we start seeing more obvious signals like the shooting star reversal bar, and also a nice downward sloping trendline which provided many shorting opportunities.

My minimum target is the test of the previous swing low, which is likely to get hit before the market closes for the weekend, but I have already started scaling out my positions to lock in the profit.

Cheers
Spencer

Last week, we have an open seminar at CIMB Securities to share about what it takes to be a professional trader. We started off with the different attributes required of a trader, then delved into our trading style, before ending off with a market outlook and stock picks.

As it was a full house event, we apologise if some of you could not make it this time. Since the response was rather good, we might consider having more of such seminars for the public in the future. Do sign up for our mailing list to stay informed! 

 

As we mentioned during the seminar, they keyword of the day is “SHORT”. I hope that all participants have a better idea of how we use price action to understand the past, anticipate the future, and trade in the present. Remember: only take a position just as a significant move is about to take place!

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This is the daily chart of the EUR/USD. It has broken below the previous swing low, and pulled back to test the breakout. I will be looking to short this.
This is the daily chart of the USD/JPY. It is pulling back after a strong upmove, and is now resting on the fibonacci 61.8% retracement. I will be staying out of this one for now. Keep watch to see if the uptrend resumes.
This is the daily chart of the GBP/USD. It is trading in a range, and is now in the middle of the range, resting on support. After the failed wedge breakout, it has decline rapidly, and I am looking to see if the support holds.