Forex Trading Thoughts and....

Well they aren't all that new, but they offer some of the best trading instruction on the web .  This first link is to a site called BabyPips. You can ignore nearly all the other forum threads except this one. Pay particular attention to posts by Tess, Jocelyn, Andre, Sean and Jimmy. They all work together at a medium size currency focused hedge fund with offices in NY, London, and Hong Kong. What they offer is a price action based template for trading the markets that works in nearly any market condition: http://forums.babypips.com/free-forex-trading-systems/19076-technical-templates-2-a-new-post.html The second link is to a web site called Forex4Noobs. Sounds really lame, but they have some excellent resources and most of it is free. Pay attention to posts from Fetor. He has a blog and other resources offering training along the same lines as the group from BabyPips. Go here: forex4noobs.com

This was an excellent entry for a short on GBP/USD. Nice bear flag. Two gravestone dojis in a row. Top it off with a bit of the UK's Mervyn King spouting off about how the UK growth will not be all that great and you have the recipe for a highly profitable trade. If you go take a peek at the daily chart you'll see yesterday's daily candle is a bearish shooting star just looking for a reason to be pushed off the cliff. To be honest this trade did give a little bit of a scare as it charged up past the entry. Stop loss was placed above the recent high. The bad of this was leaving 80+ pips on the table. Price ran down, took my limit at 1.6300 and kept right on chugging.

Absolutely crushed this one. Knocked it out of the park. Perfect RSI divergence set up off the daily chart 38.2% fib. Couldn't be any happier the way this trade worked out.

This market has been a real bear with tight ranges and volatility that borders on insane some times. It's these times when it's good to be familiar with more than one solid setup. I've used this in the past. It's the RSI divergence set up on the 5m chart. The trick is to use this only at S/R levels from the higher time frames(daily, 4-hr and 60m). It can provide a nice tight entry with limited risk. If you look, you'll find several setups across the major pairs every day.

Nice AUD/USD trade to start the day. Same formula as usual.