The Forex Edition – Multiple Cross-rates Setting Up Tradeable Patterns
16
November, 2016
There are multiple cross-rates that are approaching support or resistance levels. Some of these are not what you would call the “majors” but they are tradeable nontheless.
Because there are multiple cross-rates this article will deviate from our usual format. Normally we pick a market and discuss it in some detail.
But we can’t do that with all of these cross-rates. So we’re going to show you the charts and provide the primary trade idea that we see. We’ll suggest a level where your protective stop order should initially reside but leave the rest of trade management up to you.
GBPCAD
Short Trade
- Market is in a down-trend
- Market is at resistance
- Most oscillators are overbought
- Short term oscillators are turning back down
Entry: Sell-short at the market.
Exit: Exit 50% of your position when your favorite SHORT TERM oscillator is half-way to its over-sold area. At that time pull your stop to break-even.
Protective Stop Order: Exit your position at 1.73 (yes, its a very side stop but remember, this is a daily time frame so average moves are larger!)
Chart images provided by Tradestation Charting Software
GBPNZD
Short Trade
- Market is in a down-trend
- Market is at resistance
- Most oscillators are overbought
- Short term oscillators are turning back down
Entry: Sell-short at the market.
Exit: Exit 50% of your position when your favorite SHORT TERM oscillator is half-way to its over-sold area. At that time pull your stop to break-even.
Protective Stop Order: Exit your position on a CLOSE at 1.80 or higher.
If you get stopped out, re-enter short on a close below 1.76 and try the trade one more time.
GBPCHF
Short Trade
- Market is in a down-trend
- Market is at resistance
- Most oscillators are overbought
- Short term oscillators are turning back down
Entry: Sell-short at the market.
Exit: Exit 50% of your position when your favorite SHORT TERM oscillator is half-way to its over-sold area. At that time pull your stop to break-even.
Protective Stop Order: Exit your position on a CLOSE at 1.30 or higher.
If you get stopped out, re-enter short on a close below 1.25 and try the trade one more time.
AUDCAD
Long Trade
- Market is in an up-trend (can you see why?)
- Market is at support
- Most oscillators are oversold
- Short term oscillators are turning back up.
Entry: Buy at the market.
Exit: Exit 50% of your position when your favorite SHORT TERM oscillator is half-way to its over-sold area. At that time pull your stop to break-even.
Protective Stop Order: Exit your position at 1.005.
Chart images provided by Tradestation Charting Software
NZDJPY
Short Trade
- Market is in downtrend
- Market is at resistance and showing an (unconfirmed) power-sale structure.
- Most oscillators are overbought
- Short term oscillators are turning back down
Entry: Sell-short at the market.
Exit: Exit 50% of your position when your favorite SHORT TERM oscillator is half-way to its over-sold area. At that time pull your stop to break-even.
Protective Stop Order: Exit your position on a CLOSE at 79 or higher.
AUDJPY
Short Trade
- Market is in downtrend
- Market is at resistance and showing an (unconfirmed) power-sale structure.
- Most oscillators are overbought
- Short term oscillators are turning back down
Entry: Buy at the market.
Exit: Exit 50% of your position when your favorite SHORT TERM oscillator is half-way to its over-sold area. At that time pull your stop to break-even.
Protective Stop Order: Exit your position on a CLOSE at 84.00 or higher.
EURGBP
Long Trade
- Market is in an up-trend
- Market is at support
- Most oscillators are oversold
- Short term oscillators are turning back up.
Entry: Buy at the market.
Exit: Exit 50% of your position when your favorite SHORT TERM oscillator is half-way to its over-sold area. At that time pull your stop to break-even.
Protective Stop Order: Exit your position at 0.8200.
Chart images provided by Tradestation Charting Software
NZDCAD
Long Trade
- Market is in an up-trend
- Market is at support
- Most oscillators are oversold
- Short term oscillators are turning back up
Entry: Buy when the swing turns GREEN
Exit: Trail a 3 ATR stop
Protective Stop Order: Set an initial protective stop at the prior swing low created after the GREEN bar forms.
USDMXN
Long Trade
- Market is in an up-trend
- Market is at support
- Most oscillators are oversold
- Short term oscillators are turning back up
Entry: Buy on any further push lower – preferably below 19.91
Exit: Trail a 3 ATR stop
Protective Stop Order: 19.0000
9 Forex Trades
Photograph provided by shutterstock.com
Wrap Up
We deviated from our standard article format because there were so many FOREX patterns setting up. We outlined 9 of those patterns above. Hopefully you find at least one that is suitable for your style of trading!
PS: don’t forget – if you have questions about the techniques used in this article, a simple 1 hour technical analysis coaching session can get all your questions answered!
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