This Weeks Analysis

Posted by Nick 9 Comments

Hey Guys,

Wow this site is getting popular. I had 29 emails today asking when this weeks analysis would be out. Well sadly there is no analysis this week. Did you see last weeks moves? I am going to steal a post from my friend Metalhawk’s blog

Looking at the GBP/JPY chart right now, I don’t see anything I like. Last week, price went one way only, so no scalp line formed, and I hate trading when price is in an area it hasn’t been in a while (it’s been many years since GBP/JPY has been this low), and I find price behavior to be unpredictable in those situations, even with regular S&R lines. So I am not taking any trade for a couple days at least until some familiarity develops on the charts.

Metalhawk trades my method, and he has pretty much said exactly what I was thinking. After a move like this we need to wait for familiarity to return to the market.

Don’t worry though, I wont be taking another break. I will release a article or two this week.

Tags: forex, forex analysis, forex profit, forex trading, forex trading education, forex4noobs, free forex education, free forex signals, gbp/jpy, scalp line, trade update, weekly analysis, www.forex4noobs.com

Dan

Thanks Nick, sounds like great advice from Metalhawk.
ashfaq

thanx nick, gud advice
Grace

Greatly appreciate your advice Nick.
lou fiore

I agree with you…..the dust needs to settle
Colin Judd

Come on guys don’t be scared of the market get in there and trade. It is great times to be trading, especially in forex.
NickB

@Colin Judd: Here is a quote from a experienced currency trader.

“The currency markets have been absolutely insane lately. Currency pairs have moved more in a single month than they normally move in a year or two.

This never happens. I know I’ve never seen anything like this in the 16 years I’ve been in the currency trenches. And I’m hearing the same comments from guys who have been in this field for the last 30 years. No one can recall anything like it.”

This is the most unpredictable and dangerous market I have EVER seen. I see people all proud of themselves for marking 400 pips in this market. A 10 year old kid could make 400 pips in this market.

This is not a safe market. It is way too unpredictable as we saw yesterday.
Colin Judd

Make hay while the sun shines as the saying goes. Come on, a trader of 16 years experience should be able to trade easily in these conditions. I’m sure the majority aren’t just sitting back doing nothing. They are making the most of it. Don’t let the comments put you off. I trade the last 3 hours of the US session and the first 2 of the Asian session as this time frame suits me here in NZ.
Mike

Hy Nick,

When you look back at tha charts don’t you wish you were that 10 year old kid? Price action is still price action no matter tha volatility. Just have to adjust SL and TP. Looking just at price action, everything is quite clear, don’t you think?
NickB

@Mike: Price action is price action, but to trade S+R lines in this market you need a 200+ pip stop. On three separate occasions last week I saw it cross a line, move up about 30 pips, and reverse 200+ pips.

That to me is an unsafe and unpredictable market. A market I do not want to be a part of.

I have been trading 4 years. Through consistency and discipline I turned a $45k account into a $900k account. I have a set target of 100 pips per week and I do not trade risky markets. I have been through similar (though less volatile) periods and I always play it the same. You find that in these periods undisciplined traders make mountains of pips. However, as soon as the market regains normality their lack of discipline becomes their downfall.

I simply do not trade highly volatile and unpredictable markets. Say what you want but my discipline has certainly paid off.

Currently I am looking at trading more stable markets. I am looking at doing some oil trading.