Forex price action analysis – December 2nd 2014

In today’s Forex price action analysis we will look at a few pairs, starting with GPB/USD. If you want to see my support and resistance areas for these pairs, please check out the support and resistance areas section.

GBP/USD Analysis

We have already had a trade on GBP/USD this week. The first candle of the week gaped up by around 10 pips on the four hour chart. After the gap, price fell back down to our 1.5620 support area and formed indecision…

…This lead to a pretty awesome trade which you can see in the image below.

GBP/USD Analysis 2014-12-02

The 1.5620 support area has proved to be quite strong. Price is heading to the area right now. I will be looking to take a long reversal if we see indecision forming on the 1.5620 area. If price drops down to the 1.5540 area, I will also be looking to take a long reversal trade.

What about short trades?

Well, if price makes it’s way back up to the 1.5720 I will be looking to take a short reversal. I am also keeping an eye on the 1.5820 area for short reversals.

GBP/AUD Analysis

GBP/AUD has been a very good pair to trade recently. However, this week it has been stuck in a boringly tight range. Regardless, I will still be looking for some trades from this pair. In the image below, the red highlighted areas show resistance, the green support.

GBP/AUD Analysis 2014-12-02

I will be looking for short reversals from the 1.8540 and the 1.8660. I will be looking for long reversal from the 1.8370 and the 1.8240 areas.

Please keep in mind that the indecision currently sitting on the 1.8540 is not valid. An indecision candle is only part of a valid set up if there is a preceding trend. The current indecision candle has no preceding trend.

If you want some more clarification on this please check out my free price action Forex strategy.

AUD/USD Analysis

AUD/USD has also been a great pair to trade in recent weeks. Currently I do not have area lower than the 0.8430 for AUD/USD. I may add some soon, so keep an eye on the support and resistance section.

AUD/USD Analysis 2014-12-02

For AUD/USD short reversal I will be monitoring the 0.8510 and 0.8590 resistance areas. For long reversal trades I will be looking at the 0.8430 support area.

Any questions?

I may be doing some additional analysis on more pairs late on in the week.

I hope you found this analysis useful, if you have any questions please ask using the comment form below.

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54 thoughts on “Forex price action analysis – December 2nd 2014
  1. Thanks Nick for that great analysis, am using a demo account on MT4 Alpari but I cannot find that pair you did analysis for GBP/AUD .How can I add it so that I can start monitoring it as well.

    1. I am not sure, I do not really use the MT4 platform, I never liked it. I would suggest you sign up for a MT5 demo or look for another charting platform.

    2. On the left side of your platform, there is a list of available pairs under “Market Watch” tab. Just right click and choose “Show All”. After this, when you click File>New Chart, all pairs will be available to picked.

  2. Thanks Nick. Having followed your strategy for some time it’s good to see you analysis matching my own efforts! Will you be posting a video of the Three Day Blitz from last week as unfortunately I missed it. Cheers, Jack

  3. Hi Nick, thanks for your analysis.

    I spotted the gbp/usd on the 8hour chart and took it, got a good result. I didnt see the others as Im still learning one pair at the moment.

    Dave

    1. There was also a short on GBP/USD on the 8 hour… I missed that one but some people in the advanced course took it. Two trades in two days from GBP/USD. The people who caught them both have had an awesome week.

  4. Hi nick what chart time frame do you use to add your support and resistance lines on. If you use the 8hr chart would those resistance levels be the same for the 6hr and 4hr charts or do you have to go through all time frames to add support and resistant levels. Cheers andrew

    1. I use the 8 hour chart to place support and resistance…

      … and yes, they are valid on all time frames ranging from 4hr-12hr. The daily chart has separate support and resistance areas though.

  5. Hi Nick, I think you stop/loss at 30pips is useless since it gets hit by “Forex Brokers – Stop/Loss Hunters” whats your take on that ?

    1. I think a lot of the talk about stop hunters comes from bitter trades who lose because they do not know how to trade. Instead of blaming themselves for their bad decisions, they concoct stories about evil brokers hunting stops. Dishonest brokers definitely do hunt stops. However, if you register with a well regulated broker in a country with strict regulations… you will be fine.

      My stops vary anywhere between 20-80 pips depending on the pairs and the location of support and resistance. Once price has started to move away from an area of support or resistance, it rarely pushes back to that area with any force.

      Extending my stops to 100 pips based on unverifiable stories from inexperienced traders would be useless and harmful.

  6. Hi Nick, I don’t know if you agree with my trade but i’m in EUR-CAD short since yesterday. Enetered at 1.41846 with first target at 1.41414 and latest target at 1.4087.
    I’m sending you this message just for call your attention on that setup if you think it’s a good one for a case study.

    Thanks for your works, i really appreciate that.

    Andrea

  7. I see you are using M5 — for us MT4 users, would you say the H4 would be OK to track this ? Or would D1 be better ?
    Thanks, Jim R.

    1. I would suggest you stop charting with MT4. It makes no sense to limit your charting to a ten year old piece of software. Even though charting technology is pretty slow to advance…

      … It has actually improved a lot in the last ten years.

      I would suggest that you use a separate charting plat form. Your trading and charting platform, do not need to be the same.

  8. Hi Nick, I am not a trader yet, probably soon, I just want to thank you for sharing your trade ideas, it’s a great help for me. Please, keep doing.

    TJ

  9. Hi Nick, I attended your 3 day webinars last week (I was the Dark age of Camelot player :) ). Can I just say your strategy has made more sense than anything else I have seen/listened to in my 3 short months of largely unprofitable trading lol. So I have changed everything this week and just followed your guidance, and I’m soooo pleased to read about your GBP/USD trade as I took EXACTLY the same trade, I had to set a take profit level on it as I was away from my pc, so it made 30 pips which I’m happy with. Thanks again for the webinar – it’s great when you see a chart do what you expect it to do!!

    Thanks again

    Andy

    1. Hey Andy, I remember you. Camelot Unchained looks really good, I am waiting to play it. I am getting tired of Archeage, it was good to start with but the developers are making it worse and worse.

      Glad you caught the GBP/USD trade man.

  10. Hello Nick, I am learning reversal trading through your strategy. The above analyses help those of us who are not yet in the advance course benefit from your insights. I deeply appreciate this and will put it to use immediately. Thanks.

  11. Hi Nick. I am a brand new ‘noobie’. Have just come across your site and I am interested in learning more. I noticed that you have done some webinars recently. Can I gain access to them? Tried via your mobile site by registering but have had no response. If you can help that would be great. Thanks for your time. Andy M.

  12. Hi Nick
    Thank you for the Analysis it is a big help to compare with my own, I was unable to attend the 3 day blitz and looking forward to the videos, regards Barry

  13. Thanks for the analysis Nick. Very useful reminders to help keep focused, along with all the other great info coming out of the website.
    Cheers, John

  14. This is great! Also USDCAD had a nice 6HR short (missed) but I kept my eye on the ball and hit all of 50 pips on the following 8HR Long from the 1.3272 area. Keep up the good work Nick!

  15. Great analysis. I’m trading only your strategie the last month. And I’m happy to say that it is the first time in my tradingcarrier that i had no losses for 20 days. I mean at the and of the trading day I had over all my trades a win or BE.
    Love your simple strategie and i hope to learn more about it. Great work!

  16. Hi NIck,

    For the 1st analysis (GBP/USD), I agree that 1.5620 is a solid S/R area. However, 1.5630 also shows strong bounces recently (in fact, your S/R areas section in this blog still on 1.5630).

    My question, do you consider S/R areas to be dynamic? As if we still use 1.5630, then that indecision candle is slightly outside the S/R area.

    And, if indecision was formed on 1.5630-1.5640, will you still take the trade?

    Thanks.

    1. I consider support and resistance to be dynamic. I only move it if there is a good reason to move it though. I move the area if it has two or three recent bounces. recent data is always the most important and I am always adjusting the areas to fit with the recent data… as long as the recent data is more that a single point.

      I would not take a trade too far above the support area. At the 1.5640 the risk to reward ration would be horrible.

    1. Personally, the trend direction does not have a huge impact on my trade. My targets are small enough that they are reachable even if they are opposite to the main trend.

  17. Hi Nick, how do I join the advanced course? Do you charge for it?

    What else can I learn from the advanced course?

    Thanks, David

    1. Yes I charge for it, the course is closed right now and I am not taking any new members. You learn my strategy in more depth, have access to weekly webinars, and have access to a live trading forum.

  18. Hi Nick, thanks so much for your great work, I’m really thankful to be able to compare your S/R levels with mine and most of them are around the same. But for the EUR/USD pair, I have plotted an S/R based on the 4 hour chart at 1.24080 which wasn’t in your own list. Is it wrong?

    1. I place on the 8 hour so that filters out some of the weaker lines like the one you have placed.

      I consider the 1.2408 a area of minor support and resistance. I will pay attention to it if it is in the path of a trade. However, if indecision forms on it I will not trade.

  19. Hi nick, thank’s for the set up, i’m a price action trader which i base my analysis on daily time frame only, the worst part of it is that i may wait for good 2 weeks without seen any setup to trade, even i may see a setup at times but to exit it on loss, i come across your website and i attended the last day of your recent blitz and this open my eyes to some of the setup that form on my platform and i took the setup on gbp/usd which i exit on over 50pips profit withing short time. im now watching eur/jpy on 4hr going towards support looking to going long from the support if possible set up appearS. please i want to learn more from you. THANK’S AGAIN. SAFE TRADING.

  20. Thanks for the chat formation secret you have made me to remain more confidence on my trading strateges. Is very similar.

  21. Hi nick, how confident are you that someone else could make a full time living from forex using your strategy, assuming they have the right mind set to trading and totally understand risk management?

    I appreciate this is a difficult question to answer but I like to think I could do it based on my betfair trading I’ve done for the past 2 years.

    Cheers, Dave

  22. Great article Nick, it’s good to see these quick analysis posts back.

    All the best mate, I hope England is treating you well.

    Ben