1st week of Oct 14

Another week has just past adding many good things to traders whether collecting green pips or achieving new level in trading.

Volatility has been back in oil (USoil/WTI/ CL) and Aussie dollars (6A/AU). Good pips could be collected both up and down sides but stop loss has to be wider to avoid fakeys if day traders respected the main trend. Oil and Australian dollars have been on down trend mode so short sells produced better results . 

As a day trader trading both Futures and FX I normally enter trades from 5 minutes (M5) charts, using 1 hour (H1) and 15 minutes (M15) charts for trend direction.

Some basics are very useful to be mentioned whether trading  from naked charts or with indicators.

Here is the 1st basis that helps in making breakout trades: indecision candle (IC) which can be red or green or doji (a cross), body has to be small and both tails (wicks) have the same lengths.

The trade will work nicely if the IC bounces off support/resistant which can be off 10 moving average (10 MA), 50 MA, or 200 MA, pivots, etc. In the below example, IC bounced off 10MA and 50MA from CL (oil futures) on M5 chart.

indecision candles (small body).jpg

New trading hours for Aussies (Melbourne and Sydney traders) changed from AEST to AEDT. From Monday 6th Oct 2014, for Singapore open is 12pm, London open is 6pm, Oil open is 10pm.

Best wishes and happy trading.