FX setup commentary - 30 July 2012

NZDUSD - Daily Chart

This pair has caught my attention as breakout occurred. The price has breakthrough the key resistance level at 0.80500 last week with "big" and "obvious" bullish engulfing bar. The 0.80500 level used to be support level in the past somewhere around March'12 to May'12.

The bias of this pair now is bullish and and it breakout from key level (0.80500). We anticipate that the price will rally (never come back) and moving upwards to the next key resistance level - 0.82500. The setup of this trade is as follow:

Entry                :     0.80864
Profit Target     :     0.82500
Stoploss           :     0.80100
Reward            :     1,636 pipettes
Risk                 :     764 pipettes
R/R ratio          :     2.1

(Note: The above calculation not inclusive of spread charged by different brokers)

Introduction of myself

My name is Desmond Chin.

I am a part-time forex trader and I trade solely using high quality Price Action signals from key levels along with strict money management to protect capital at all times. Most of my trading is done on daily charts.

In the past, I have been flooded myself with numerous indicators, such as Ichimoku Kinko Hyo, Stochastic, MACD and William Percent Range. All these did not help in my forex trading but detrimental to my forex trading. I faced substantial losses by trading with indicators and I have also blown up few live accounts.

Is it until when I come across a simple and straight forward forex trading strategy - Price Action. My trading performance has improved drastically after I learnt Price Action. I am a person who always prefer something that is straight forward and simple, that's what I have tweaked my trading technique to reflect that.

I started this blog to commit myself to maintain a trading journal for my live trading as well as to share and help other traders to learn how to trade Price Action. I also wish that this blog could be a great learning avenue for traders who are interested in Price Action trading method.

I hope everyone enjoys this blog and please feel free to comment and ask questions regarding my Price Action analysis on forex market.