Weekly Forex Price Action Trade Ideas 22.08 - 26.08.2016

AUDUSD

Consecutive week in which the price fails to overcome or closed firmly in the zone of resistance. We have two consecutive pin bar on the weekly chart reflecting the inability of the price to rise. The main trend remains bearish so there is a high probability of a fall in the quotation of next week.






























USDCAD

As suggested price fell after being pushed by the resistance last week. My expectations for the decline remain, but before that expect a slight increase over Friday's appreciation.



















XTIUSD - Spot US Crude

Another strong bullish week for oil and Technical likely bullish trend in recent weeks to keep very large. In this situation, it will follow an opportunity for a long position in a possible correction to the nearest support area that I drew.



















Trading discipline: Pointers

The following pointers can help to maintain good trading discipline:

START SMALL
Our introduction programme offers you reduced minimum commission on shares and lower minimum trade sizes on other markets. While you are new to CFDs, or still learning how to use our dealing platform, you can take advantage of this reduced exposure to practise and hone your skills. As you get more confident, or if things are going well, increase your size gradually

REMEMBER WHY YOU ARE TRADING
At all times your primary objective should be to profit from your positions. CFD trading can be a fun, exciting experience, but it’s important to remain disciplined in your trading.

This means:
• Don’t trade simply for fun
• Don’t trade out of boredom
• Don’t trade because you’re worried you might be missing out

If and when conditions are optimal, that’s the time to place a trade. Otherwise, save your money for a better opportunity.

ONLY RISK MONEY YOU CAN AFFORD
As mentioned in previous modules, it is vital to always have in mind how much you are actually risking. It is equally vital to make sure you are comfortable with the sums involved. If not, the pressure from the risk of making an unaffordable loss could negatively affect your decision-making.

TRADE WITH OBJECTIVELY MEASURABLE CRITERIA
There is a certain allure in placing a trade because of an intuition that the market may move one way or the other. This style of impulse trading can often put you in a difficult position, however.

If your intuition isn’t based on something concrete, such as technical analysis or economic data, there’s no way to measure whether your judgement is faulty if the trade doesn’t immediately move in the right direction. If the position starts to move against you, should you let it run five points or ten, twenty or more? There is no answer, because the reasons why you have entered into the trade are so vague.

If, however, you believe a share or an index is range-bound and you sell at the higher end of the range, seeking to take profit near the lower end of the range, you have objective criteria against which to measure how successful or not the trade is. If successfully profiting from the entire range would gain you 20 points of movement, for example, you might not want to let the position move against you more then ten points above the high end of the range (setting a favourable risk/reward ratio).

DEFINE ENTRY AND EXIT POINTS IN ADVANCE 
Setting yourself fixed target levels before you enter into a trade will help you to overcome more irrational, emotional influences, such as fear or greed. If your trading studies have shown you that there is value in trading at a certain level, set that as your entry point and then wait for it to happen; be tough with yourself and do not open a position prematurely just because the market has gone somewhere in the vicinity of that level.

You will need to define two exit levels: an exit point should things go wrong and an exit point for taking your profit when things go well.

DON’T DOUBLE UP AFTER A LOSING TRADE
The market owes you nothing; just because you lost on your last trade, does not mean that you are somehow more likely to win on your next trade. Doubling up should always be done with care: you should only hike the size you are dealing in by a substantial increment if you think there is a substantially greater chance of profiting than before. Even then, you should take care to carefully manage your risk.

by IG Markets Limited.

Spread bets and CFDs are leveraged products.
Spread betting and CFD trading may not be suitable for everyone and can result in losses that exceed you deposits, so please ensure that you fully understand the risks involved

Weekly Forex Price Action Trade Ideas 15.08 - 19.08.2016

EURUSD

At the end of the week the currency pair tested the resistance that I've drawn, but after the price broke above 1.1200 began to return.Since the price is still below the resistance short positions from these levels remain current.
















GBPUSD

Consecutive losing week for the pound as it seems that next week we will see an attack of temporary support and the formation of new lows.
















USDCAD

The price failed to hold and pass over the resistance and thus took down passing under the big bull bar last Friday. My expectations are to resume weekly downtrend.


































EURGBP

The euro continues to appreciate against the pound as a whole seems that the situation will remain so for a long time. What we can monitor is an opportunity for a long position on a possible price adjustment.