Big ups and big downs

Many markets, the currency pairings being no exception, have had significant surprise price moves recently—and will probably continue to do so for some time to come.

Have we changed our trading style to deal with these rare times? No, we are driven by the market structure as reflected on a chart.

Over the last week or so many of the currency markets are price changing within what we refer to as trading ranges. Big ups and big downs. How do we deal with that?

We take our trades based on context, value, setup, and price action. In a trading range, we look to sell high, buy low, use an appropriate stop, scale in, trade small and take small profits. (Small being relative to account size).

We’ve added a page showing the chart analysis by James. These are a synopsis of a cycle or a particular trading period. In the charts posted, most of the bars represent one hour within a structure that takes us over several days.

Unless you are familiar with the price action terms, it is unlikely that the detail will make any sense. But for those who can read the terminology, you will gleam the significant edge that we feel we have.

As I have mentioned previously, most competent price action analysts can accurately annotate a chart after the event. Only an exceptional analyst can do so ahead of a live market with a high degree of probability.

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