More Eurozone erosion?

Any attempts of an upward move this week were well and truly thwarted yesterday as the PA tail spinned only moments after reaching the 1.28770 level. Seemed like even the resulting  positive European  trade balance  figure of 6.10B was insufficient as this was severely overshadowed by the swift downgrading of France, Italy,  Spain,  Cyprus and Portugal with the latter receiving a BB near junk rating by Standard and Poor's, this of which is concisely covered by yesterday's BBC world news report on the incident.  

EURUSD-130112

Given the gradual upward movement of the single currency Euro against it's Greenback counterpart this week this is now revealing itself be an ideal setup for further upward advances; especially since the prices action is above the 60 SMA on the H1 chart and looks like an eventual crossover will

occur on the H4 chart at 1.28484.I strongly suspect it's next closest port of call will be the the 1.29 level at the very least. This will be given more credence if Europe's trade balance forecast increase for the month of December 2011 holds at 0.70B, due to be released at 10:00 hours GMT.

3 ducks in action 2

Well the resulting trade was a success, I do expect the euro to sink further what with more troubles within the eurozone. I suspect the next move for the PA is towards the next level of support at 1.26541. 

3 ducks in action

Here we have the 5M, 1H and 4H eurusd charts in consecutive order, PA at time of posting is below the 60 SMA on all 3 charts. A pending set and forget short (sell stop) trade being set to activate once PA reaches 1.28961. TP has been set to close trade at 1.28560 which is a main support level indicated on the H1 chart. There will (if reached) be an inevitable retracement once this is reached. At this point and if all goes well the trade will be closed and we can then look at placing another set and forget pending trade for any further downward movement should this occur. This simple trade setup has a 30 pip SL since the trade is being performed on the 5M chart which should prove more than adequate. All that needs to be done is see how the trade pans out.

3 ducks on a forex reprisal

My inauguration into the world of currency trading has been an absolute financial baptism of fire, many manual methods used and applied along with a handful of expert advisers that have failed to meet expectations, these of which I will not mention any names however those that have followed this blog to any degree will know. Having said such though I believe also that just like a tradesmen who should never blame his tools for bad workmanship I also have had to deal with my own shortcomings as a trader in terms of mindset. If there is one methodology that does have any merits it must be the 3 duck method as endorsed by Andy Perry aka Captain Currency whom of which I have mentioned before as you would know. Simple methods always work the best and nothing could be more so than this one. If your looking for profit making consistency  then look no further.

My only problem was not being able to watch any active trades since I work during the European/UK market open so often ended up being taken out with a small loss; since one needs to terminate the trade (and keep your profits made)  when the PA crosses above or below (depending if your long or short on a trade) the 60 SMA. this presented a problem since I wasn't at the trade station. Problem solved - after a Google search I came across a handy EA that would do just that, close the trade once the price action made a MA crossover. This particular EA is now indispensable to me, it's called the OrdMgrSL.mq4. I will reiterate it does not open any trade(s) it only closes them exactly on the mark. Anyone interested just Google and you will find it, I actually came across it through a forex forum group, but failing this if you email me at davidwilsonholmes(at)yahoo.com  and put ordmgrsl in the subject line I will attach it to a reply. 

Before I forget I'd like to wish everyone a very festive Christmas.

Trading results to date 

Forex find

A substantial degree of success in forex is product knowledge, especially within the formative stages when your setting out on your forex career. There are as a consequence a few sites that catalogue  such sites of importance as to the degree of their usefulness. At the top of this list is Forex On Top which although is a good site mainly concerns a sites popularity in terms of it's overall net ranking not only within it's own site but the individuals Alexa rating. Plus it contains many of the international forex brokerage houses. One site in particular that caught my attention was Online Forex Trading  which doesn't show all the sites, but more so a few of the more information and educational based sites which is more to the point of this posting. Each site reviewed not only has a ranking by popularity but a more in depth description to it's primary function, complete with the pros and cons of said sites. I guess the derivatives may include sites that monitor sites dealing with the fundamentals, that is to say forex news sites such as Dailyfx  which happens to be my favourite when it comes to global finance news and the calender of events which effect the market. Next you have forex forums which are as we know community based sites which deal with the exchange of information and idea's  and act like large think tanks. The top of this list would have to include the ever popular Baby Pips which is an absolute must for forex traders of all degrees of competency, followed by the Forex Peace Army which I believe should be called Forex Police Army since their main objective is as a watchdog on brokers and robot trader vendors that may attempt any misdealings and any other inappropriate behaviour such as attempted scams.    

Alive and still kicking

 I have been away from the blog for awhile admittedly but not gone. More so concentrating on a battered and bruised account and saving it from a horrible death such as a margin call. No more are the droid(s) in control but instead adhering to the methodology of Captain Currency and his 3 duck system. This of which has in actuality saved my bacon.

A couple of changes to the blog have been implemented, first of which is getting rid of the heady graphics which I discovered just interfered with some of the text especially the hypertext, not much point if you cannot see important links since I put such effort into setting them up. Another is the elimination of the monthly progress charts, weekly pip tally and active trade shots, instead just a link to the fxjunction profile page which says it all automatically which is ever so much easier. This also frees up time purely for blog posts. Indeed fxjunction does all of these.

We have noticed a monumental shift in the majors recently with some megatrends (mostly to the downside) which have given rise to some ballistically  profitable moves should you have noticed them, mind you, you would be seriously myopic if you hadn't. One look at the decline of the Euro for instance on the daily chart makes your jaw drop with absolute awe. That's not a downward trend move..... it's a friggin landslide!  Will the Euro drop to parity or even worse fall down further still against the Greenback, Let us not forget that 11 years ago in October of 2000 the Euro hit 0.82250 against the U.S. Dollar. Could this happen again?       

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