Forex Commentary

One excellent trade, one wrong trade, and one non-conforming trade today.

GBP/JPY, on the intraday charts had the kind of Bullish Divergence on which one can take aggressive entries – its a so-called Class A divergence, giving very strong signals with a higher low on Stochastics, starting in the oversold region, and lower lows on Price.

This was an excellent trade of about 95 points. More importantly, this was followed up step-by-step with our money management strategies.

The advantage of the Live Trading Room is that trades in progress are observed and managed together with our students – everyone sees what we do and hears what we think. Nobody trades alone.

On the USD/CAD, we identified a Bearish Wolfe Wave. It is a 5 point chart pattern, and the market fit the setup perfectly. We expected prices to drop to the line 1-4′s target, but it did not, and went up to stop us out.

We were also looking at the USD/JPY to go Long, and on the 30 minute charts we saw a Bullish Hidden Divergence. We were expecting price to go up, but it did not yet confirm our entry of a trendline break on the upside. We expect the entry should materialize some time during the Asian or early London session on Wednesday.

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Duration : 0:4:50

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