Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

thalestrader

Reading Charts in Real Time

Recommended Posts

Hi Folks,

 

EURJPY gave some nice lessons last night in the power of support and resistance, as well as another good example of why you should be careful and trade with a tight stop loss if you are trying to sell a break to new lows against a possible ending diagonal (obviously you also want to be careful when buying new highs against a possible ending diagonal in a rally).

 

Last night's "break down" occurred just a short distance above an anticipated support level. There was enough day light to justify a short, so long as you moved to break even once price moved more than 5-7 ticks in your favor. Price fell to within a whisper of support, and then rallied strongly, "completing" (for lack of a better phrase) the ending diagonal. After that, it was the S&R show, one of my favorite bands. I never tire of their music.

 

attachment.php?attachmentid=17297&stc=1&d=1262784345

 

 

Best Wishes,

 

Thales

5aa70f95bf310_2010-01-06EURJPY2.thumb.jpg.88098954e11cff566cb1749863463004.jpg

Edited by thalestrader

Share this post


Link to post
Share on other sites
Yes, it has been a long day, sorry once again.. correct image with luck this time!

 

Hi Rustie,

 

If you are asking whether I would have seen a short there, I would likely not have shorted due to the large quick impulse immediately prior to the choppy overlapping price action following. This does not mean that a decline would not develop there, but I would not be participating, at least not based upon what I see on your chart. If anything, I'd be inclined to buy a break to new highs (see chart below).

 

 

 

Best Wishes,

 

Thales

5aa70f95c44b2_2010-01-06Rustie2.jpg.e67aba36be96ef636caf1f1096ead690.jpg

Share this post


Link to post
Share on other sites

Hello Thales

 

Ive just read Your PM ---- it is encouraging

 

///////////////////////////////////////////////////////////////////////////////////////

i don't believe in making many trades in a day ( scalping )

 

i'm more of a swing trader looking to hold trades 2 - 14 days

 

and look for 3 - 7 trade set-ups per week on average

 

Thales , just like most traders out there

i've got software that can helps me in the hunt for these trade-setups ,,,,,

but unfortunately i wont be able to talk about them in here ,

because you will think it's commercial ---

 

Just so you know I'm a real world trader ---- and part of a group ---- and is " Not Commercial "

 

Here is this mornings main chart of interest

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

 

29d8if6.gif

Edited by marketwavez

Share this post


Link to post
Share on other sites

Hi Thales, thanks for that. I didnt consider the impulse so much as the pattern forming!

I your previous post you mention moving the stop to BE once 5 or so ticks in profit and I've been wanting to ask about this. How quickly do you move to BE once the trade is triggered? I can understand logical chart stop placement but not sure on after entry...

 

Cheers

Russell

Share this post


Link to post
Share on other sites

Hello Everyone,

 

My first post on this great thread and a paper trade from this morning (I am without internet at the moment) just showing what I saw with EURJPY. My reasoning for shorting into the strong up move was that the level where price stalled coincided with what looked like a possible natural reversal level if one looked at H4. What is interesting me now is what happens at the level I have marked for taking some profit. I think of these sorts of levels as being a bit like traffic lights!!

 

5aa70f95d4820_eurjpy100106m15b.thumb.gif.c6f851423573db2679281abeafb73039.gif

 

5aa70f95dfa2b_eurjpy100106m15c.thumb.gif.6f1359c010b0eab9fe916e38c7360fbb.gif

 

5aa70f95ec672_eurjpy100106m15d.thumb.gif.bdf7fc80730630e3ea1acefcc92981c0.gif

 

I hope to be able to post some charts from time to time and would like to thank Thales for a brilliant thread which has done masses for my trading.

 

All the best

BT

 

Edit: Although my TP level is set at 132.23 I would probably have been looking at taking half off the table at around 132.30 and using that level as more of a zone (with the obvious benefit of hindsight!)

Share this post


Link to post
Share on other sites
i don't believe in making many trades in a day ( scalping )

 

i'm more of a swing trader looking to hold trades 2 - 14 days

 

and look for 3 - 7 trade set-ups per week on average

 

No problem. Just remember, a chart tells very little about what you are seeing, and therefore nothing as to what you want us to see. As I recommended in my PM to you, you should spend some time reading the thread before posting so that you get an idea of what we are trying to accomplish here. If what we are doing here is not what you are looking for, then you are free to start your own thread.

 

When we post a chart, we expect to see a trading plan that telss us your prosoed entry point, your stop loss, and your profit targets (or if your are trailing a stop, just tell us so).

 

Read the some more of the thread, and look at our charts and how we post our perceived opportunities. I am certainly open to EW traders, and I have no problem with swing traders, but simply posting a chart without any explanation or indication of how one would trade based upon your analysis is without much value. There are more than enough thread like that on the internet. This thread is for posting real time opportunities and showing other traders how to spot those opportunities and manage those trades for themselves.

 

Read the thread, then post.

 

Best Wishes,

 

Thales

Edited by thalestrader

Share this post


Link to post
Share on other sites
I your previous post you mention moving the stop to BE once 5 or so ticks in profit and I've been wanting to ask about this. How quickly do you move to BE once the trade is triggered? I can understand logical chart stop placement but not sure on after entry...l

 

I usually go to break even once price reaches a point that is equal to my initial risk, or between 1.27 up to 1.618 of the initial impulse leg (points 1-2) of the trade. In the case you mention, I was shorting just 15 ticks or so above support, and price had etched out a potential ending diagonal pattern, and so I go to break even very quickly, once price moves 5-7 ticks in my favor, in such cases. If you go to breakeven at +5 ticks all the time, you may as well stop trading, because you will have too many stop outs at break even. It is not uncommon for a trade to go +10-15 and then retrace to +/- 2 or so before heading on its way.

 

You will need to come up with your own rules and guidelines over time.

 

Best Wishes,

 

Thales

Share this post


Link to post
Share on other sites
I usually go to break even once price reaches a point that is equal to my initial risk, or between 1.27 up to 1.618 of the initial impulse leg (points 1-2) of the trade. In the case you mention, I was shorting just 15 ticks or so above support, and price had etched out a potential ending diagonal pattern, and so I go to break even very quickly, once price moves 5-7 ticks in my favor, in such cases. If you go to breakeven at +5 ticks all the time, you may as well stop trading, because you will have too many stop outs at break even. It is not uncommon for a trade to go +10-15 and then retrace to +/- 2 or so before heading on its way.

 

You will need to come up with your own rules and guidelines over time.

 

Best Wishes,

 

Thales

 

I really need to work on the management side of things, so many times 10 ticks profit and reverse for a 10 tick loss. But as you say if strangled you'll stop out on good trades all the time.

Thanks for the idea.

Cheers

Share this post


Link to post
Share on other sites
No problem. Just remember, a chart tells very little about what you are seeing, and therefore nothing as to what you want us to see. As I recommended in my PM to you, you should spend some time reading the thread before posting so that you get an idea of what we are trying to accomplish here. If what we are doing here is not what you are looking for, then you are free to start your own thread.

 

When we post a chart, we expect to see a trading plan that telss us your prosoed entry point, your stop loss, and your profit targets (or if your are trailing a stop, just tell us so).

 

Read the some more of the thread, and look at our charts and how we post our perceived opportunities. I am certainly open to EW traders, and I have no problem with swing traders, but simply posting a chart without any explanation or indication of how one would trade based upon your analysis is without much value. There are more than enough thread like that on the internet. This thread is for posting real time opportunities and showing other traders how to spot those opportunities and manage those trades for themselves.

 

Read the thread, then post.

 

Best Wishes,

 

Thales

 

Thales

 

These are all things that i am already doing ........

remember, I did all these things you are mentioning in the thread where you met me

Share this post


Link to post
Share on other sites
Here is this mornings main chart of interest

 

When we post a chart, we expect to see a trading plan that tells us your prosoed entry point, your stop loss, and your profit targets (or if your are trailing a stop, just tell us so).

 

These are all things that i am already

 

 

I do not see anything in your chart that would tell anyone why they should be interested in your chart, let alone how one might view a trade opportunity on your chart.

 

I do not do much with the 6A/AUDUSD, but here is how I would present the chart currently. The blue line is a short entry, the red line is the intial stop loss, the magenta line is the point at which I would move my stop loss to break even, and the green lines are where I would scale out with profits. These are the conventions of the this thread, and I would ask that everyone follow them in future contributions. If that is too much, then as I said, you are free to start your own thread.

 

attachment.php?attachmentid=17304&stc=1&d=1262789311

 

 

Best Wishes,

 

Thales

5aa70f960b07c_2010-01-06AUDUSD1.thumb.jpg.91dc49f29f3105d96bfe5d12f1b54be6.jpg

Share this post


Link to post
Share on other sites
...

The blue line is a short entry, the red line is the intial stop loss, the magenta line is the point at which I would move my stop loss to break even, and the green lines are where I would scale out with profits. These are the conventions of the this thread, and I would ask that everyone follow them in future contributions.

....

 

Sorry, my colors were wrong too ....

Share this post


Link to post
Share on other sites
I do not see anything in your chart that would tell anyone why they should be interested in your chart, let alone how one might view a trade opportunity on your chart.

 

I do not do much with the 6A/AUDUSD, but here is how I would present the chart currently. The blue line is a short entry, the red line is the intial stop loss, the magenta line is the point at which I would move my stop loss to break even, and the green lines are where I would scale out with profits. These are the conventions of the this thread, and I would ask that everyone follow them in future contributions. If that is too much, then as I said, you are free to start your own thread.

 

 

Best Wishes,

 

Thales

 

Aud/Usd

---------------

Long Trade Set-up

 

----------------------------------------

looking to go long @ 9170

 

 

Thales ,,,,,

 

i had posted my entry and target on the chart --- its there

 

Scroll back and see post # 2009

 

here its is again

 

-- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

293d547.jpg

Edited by marketwavez

Share this post


Link to post
Share on other sites
Sorry, my colors were wrong too ....

 

No problem, I could always tell what you were doing from you chart and your text. Keeping the colors standard does two things though: At a glance, anyone here knows exactly what opportunity is being communicated by the chart, and 2) I have a group of friends and we share our charts amongst us. I do not have to redo my charts for them (One of them participates in an FF thread, and he uses the same convention). Eventually, perhaps, it will be an international custom!

 

Best Wishes,

 

Thales

Share this post


Link to post
Share on other sites
Not surprisingly I got stopped out on the EU short - think I managed to overstay my welcome on this trade.

 

One thing that I have not mentioned, but that you might want to stick in your notes along with distinguishing impulses from corrections, is the factor of time. Take a look at the EURJPY since last night's Tokyo low. See how much territory it covered on its rallies, and how quickly it did so. Look at how quickly it rallied from its low at the Frankfurt open to its high a little over two hours later. Then look at this morning's decline. Nearly 5 hours from top to bottom and it managed to retrace only a little more than a third of its last rally (a rally that took about 1/3 the time of the decline). And now look how quickly it recovered the entire 5 hour decline, making new highs in the process. When price moves quickly, that tells you something. When price chops slowly, that tells you something as well. It is on its own nothing to trade on, but it does offer valuable information that can help you make decisions when added to other information.

 

Best Wishes,

 

Thales

5aa70f9620d3c_2010-01-06EURJPY5.thumb.jpg.2c8f320dd2013d47b0b7954239135f42.jpg

5aa70f96264ae_2010-01-06EURJPY6.thumb.jpg.4fd42c007d94bd8af3d8e82df961d96b.jpg

Share this post


Link to post
Share on other sites

Ok ok ok... i'm a pansy for not "working" more than 10 minutes today but I came, I saw, I took, and i'm walking. Caught two really nice setups on the JY. One ran a bit and I got a great fill for an exit, and the other one I exited right before its final push down and didn't walk away with much. But to be honest... i'm more than happy with my measly 7 ticks. I'm really impressed with the consistency i've finally found in my trades (I'm hitting 6 wins out of 6 trades this year so far). And any day you can walk away with profit is a good day. :)

 

One other thing i've done (and maybe you guys might consider) is each trade i take i save the image to the hard drive and put it in a folder for all of my trades on a given week. I've found it is a great way to go back and inspect everything your doing and examine those instances where you could've done better or worse on something. And because its visual I find it to be a much better "trading log" than just a excel spreadsheet. Something to consider!

 

Two trades, +5, +2, JY 89T on OEC.

 

Off to shovel more god forsaken snow that won't stop falling!

 

Cheers!

1.png.5f9c5276de73e432db1d649afca116df.png

2.png.576bd0c8a6c7f56181f23f58a3984206.png

Untitled.png.6a6f82677eb283675227e133deed0b3c.png

Share this post


Link to post
Share on other sites

Important level for EURGBP - support from December now becomes resistance? Faster moves down than up showing possible strength of sellers? For a short I would be looking for a LrH off the current level (and the entry level below the round number).

 

5aa70f9636f76_eurgbp100106m15d.thumb.gif.b2e1fcb910388b04b15cbe89ea66989f.gif

 

Kind regards

BT

Share this post


Link to post
Share on other sites

Looking at a potential GU long setup.

 

This setup might be a bit agressive - Thales, would you consider this an appropriate setup?

 

Cheers,

eNQ

5aa70f963ead8_6JanGUlongsetup-trade3.thumb.png.397176f452fd5df9581c76f77f038330.png

Edited by fxThunder
typo

Share this post


Link to post
Share on other sites

Eur/Usd

 

------------------ -----------

End of Wave C rally

 

------------------------------- ------------------- ---------------

Long @4370 ....... Target - ( see chart below )

 

2hz7jap.jpg

 

===============================================================

 

2luawl4.jpg

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • Date: 4th April 2025.   USDJPY Falls to 25-Week Low as Safe Havens Surge and Markets Eye NFP Data.   Safe haven currencies and the traditional alternative to the US Dollar continue to increase in value while the Dollar declines. Investors traditionally opt to invest in the Japanese Yen and Swiss Franc at times of uncertainty and when they wish to avoid the Dollar. The Japanese Yen continues to be the best-performing currency of the week and of the day. Will this continue to be the case after today’s US employment figures?   USDJPY - NFP Data And Trade Negotiations The USDJPY is currently trading at a 25-week low and is witnessing one of its strongest declines this week. The exchange rate is no longer obtaining indications from the RSI that the price is oversold. The current bullish swing is obtaining indications of divergence as the price fails to form a higher high. Therefore, short-term momentum is in favour of the US Dollar, but there are still signs the Japanese Yen can regain momentum quickly.       USDJPY 1-Hour Chart     The price movement of the exchange rate in both the short and long term will depend on 3 factors. Today’s US employment data, next week’s inflation rate and most importantly the progress of negotiations between the US and trade partners. If today’s Unemployment Rate increases above 4.1%, the reading will be the highest seen so far in 2025. Currently, the market expects the Unemployment Rate to remain at 4.1% and the Non-Farm Payroll Change to add 137,000 jobs. The average NFP reading this year so far has been 194,000.   If data does not meet expectations, US investors may continue to increase exposure away from the Dollar and to other safe-haven assets. Previously investors were expecting only 2 rate cuts this year from the Federal Reserve, however, most investors now expect up to 4. If today’s employment data deteriorates, economists advise the Federal Reserve may opt to cut interest rates sooner.   Therefore, it is important to note that today’s NFP will influence the USDJPY to a large extent. Whereas in the longer-term, trade negotiations will steal the spotlight. If trade partners are able to negotiate the US Dollar can correct back upwards. Whereas, if other countries retaliate and do not negotiate the US Dollar will remain weak.   USDJPY - The Yen and the Bank of Japan The Japanese Yen is the best-performing currency in 2025 increasing by 6.70% so far. Risk indicators such as the VIX and High-Low Indexes continue to worsen which is positive for the JPY as a safe haven currency.   Yesterday Japan released March business activity data that came in weaker than expected: the Services PMI dropped from 53.7 to 50.0, while the Composite PMI fell from 52.0 to 48.9. The data is the lowest in two years. These figures could hinder further interest rate hikes by the Bank of Japan. However, most economists still expect the Bank Of Japan to hike at least once more. It's also important to note, that even if the BOJ opts for a prolonged pause, a cut is not likely.   Additionally, a 24% tariff was imposed on Japanese exports to the US yesterday. Prime Minister Mr Ishiba expressed disappointment over Japan's failure to secure a tariff exemption and pledged support measures to help domestic industries manage the impact.   Key Takeaway Points: US Dollar Weakens, Safe Havens Rise: The Japanese Yen and Swiss Franc continue to gain as investors shift away from the US Dollar. USDJPY Under Pressure: USDJPY trades at a 25-week low, with short-term momentum favouring the Dollar but long-term trends pointing to potential Yen strength. NFP and Unemployment Crucial: Today’s Non-Farm Payrolls and unemployment figures will heavily influence short-term USDJPY. On the other hand, trade negotiations will dictate longer-term trends. Japan Faces Mixed Signals: Despite weak PMI data and new US tariffs, the Japanese Yen remains strong. Economists expect at least one more rate hike from the Bank of Japan, but no cuts are in sight. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Michalis Efthymiou HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • YUM Yum Brands stock, nice breakout with volume +34.5%, from Stocks to Watch at https://stockconsultant.com/?YUM
    • Date: 3rd April 2025.   Gold Prices Pull Back After Record High as Traders Eye Trump’s Tariffs.   Key Takeaways:   Gold prices retreated after hitting a record high of $3,167.57 per ounce due to profit-taking. President Trump announced a 10% baseline tariff on all US imports, escalating trade tensions. Gold remains exempt from reciprocal tariffs, reinforcing its safe-haven appeal. Investors await US non-farm payroll data for further market direction. Fed rate cut bets and weaker US Treasury yields underpin gold’s bullish outlook. Gold Prices Retreat from Record Highs Amid Profit-Taking Gold prices saw a pullback on Thursday as traders opted to take profits following a historic surge. Spot gold declined 0.4% to $3,122.10 per ounce as of 0710 GMT, retreating from its fresh all-time high of $3,167.57. Meanwhile, US gold futures slipped 0.7% to $3,145.00 per ounce, reflecting broader market uncertainty over economic and geopolitical developments.   The recent rally was largely fueled by concerns over escalating trade tensions after President Donald Trump unveiled sweeping new import tariffs. The 10% baseline tariff on all goods entering the US further deepened the global trade conflict, intensifying investor demand for safe-haven assets like gold. However, as traders locked in gains from the surge, prices saw a modest retracement.   Trump’s Tariffs and Their Market Implications On Wednesday, Trump introduced a sweeping tariff policy imposing a 10% baseline duty on all imports, with significantly higher tariffs on select nations. While this move was aimed at bolstering domestic manufacturing, it sent shockwaves across global markets, fueling inflation concerns and heightening trade war fears.   Gold’s Role Amid Trade War Escalations Despite the widespread tariff measures, the White House clarified that reciprocal tariffs do not apply to gold, energy, and ‘certain minerals that are not available in the US’. This exemption suggests that central banks and institutional investors may continue favouring gold as a hedge against economic instability. One of the key factors supporting gold is the slowdown that these tariffs could cause in the US economy, which raises the likelihood of future Federal Reserve rate cuts. Gold is currently in a pure momentum trade. Market participants are on the sidelines and until we see a significant shakeout, this momentum could persist.   Impact on the US Dollar and Bond Yields Gold prices typically move inversely to the US dollar, and the latest developments have pushed the dollar to its weakest level since October 2024. Market participants are increasingly pricing in the possibility of a Fed rate cut, as the tariffs could weigh on economic growth.   Additionally, US Treasury yields have plummeted, reflecting growing recession fears. Lower bond yields reduce the opportunity cost of holding non-yielding assets like gold, making it a more attractive investment.         Technical Analysis: Key Levels to Watch Gold’s recent rally has pushed it into overbought territory, with the Relative Strength Index (RSI) above 70. This indicates a potential short-term pullback before the uptrend resumes. The immediate support level lies at $3,115, aligning with the Asian session low. A further decline could bring gold towards the $3,100 psychological level, which has previously acted as a strong support zone. Below this, the $3,076–$3,057 region represents a critical weekly support range where buyers may re-enter the market. In the event of a more significant correction, $3,000 stands as a major psychological floor.   On the upside, gold faces immediate resistance at $3,149. A break above this level could signal renewed bullish momentum, potentially leading to a retest of the record high at $3,167. If bullish momentum persists, the next target is the $3,200 psychological barrier, which could pave the way for further gains. Despite the recent pullback, the broader trend remains bullish, with dips likely to be viewed as buying opportunities.   Looking Ahead: Non-Farm Payrolls and Fed Policy Traders are closely monitoring Friday’s US non-farm payrolls (NFP) report, which could provide critical insights into the Federal Reserve’s next policy moves. A weaker-than-expected jobs report may strengthen expectations for an interest rate cut, further boosting gold prices.   Other key economic data releases, such as jobless claims and the ISM Services PMI, may also impact market sentiment in the short term. However, with rising geopolitical uncertainties, trade tensions, and a weakening US dollar, gold’s safe-haven appeal remains strong.   Conclusion: While short-term profit-taking may trigger minor corrections, gold’s long-term outlook remains bullish. As global trade tensions mount and the Federal Reserve leans toward a more accommodative stance, gold could see further gains in the months ahead.   Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Andria Pichidi HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • AMZN Amazon stock, nice buying at the 187.26 triple+ support area at https://stockconsultant.com/?AMZN
    • DELL Dell Technologies stock, good day moving higher off the 90.99 double support area, from Stocks to Watch at https://stockconsultant.com/?DELL
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.