While my trading team and I are mostly on vacation for the month of July, I wanted to write a brief article giving 2 key clues to understanding support and resistance levels, which is also a follow up to my prior article the best support and resistance levels part 1.  If you can learn to understand these two key points, you will be able to detect key levels, when…

Today I am going to give a lesson on how to find some of the best support and resistance levels in the market.  If I had to say - I think there are three types which are the best support and resistance levels you could find.  But it would take a long time to go into each type, what are the characteristics of each, what they mean from an order flow perspective, and how to trade each type.

So I am going to cover in today's lesson, what are some of the most critical variables to…

EURUSD

The Euro shed about 300pips last week ending by forming a bullish engulfing bar off the 1.2300 figure.  Although it has done this earlier during this one month sell-off and downtrend, we feel its possible this one has a little more chap in it being the record IMM shorts we have been talking about on this blog.…

Spain, Greece and the Horror with No End...For Now

Although markets were calm today from the US Memorial Holiday, Spain today asked the EU to act in providing support for fiscally frail gov'ts (read 'Spain is begging for help') as its fiscal gaps and banking system (but, but...Bankia is fully solvent you said) are getting pummeled with soaring yields which are punishing the rates on bonds.  Again, Spain is 4x larger than Greece so if Spain…

China Slowing Down, Fear & Loathing in Europe



Prior to the London open, the China HSBC Flash Manufacturing came out worse than expectated, alarming investors globally since the motherland slowing down is a big concern as the weakening output affects all.  This initially sent the AUD and NZD lower but both recovered shortly after to hold modest gains throughout the day.

 

The situation did not get any better with German manufacturing also…

Euro Hits Near 2-Yr Low, Grexit Fears Persist



The Euro got hammered in NY trading dropping 120+pips in about 3 hours as the EU summit didn't really calm any fears of an eventual Grexit from the EZ.  Of course EZ officials telling members of the currency bloc to prepare contingency plans for an exit are not helping. 



Oh yeah, did we forget to mention European banks have the highest loan-to-deposit ratio in the world (3x that of the US banks)?…

In conjunction with FXStreet, I am doing a webinar whereby you get to choose the topic!



Just go to the facebook page for the webinar here;

Chris Capre FXStreet.com Facebook Webinar Choose the Topic



Choose from any subject related to trading so make sure to cast your vote.



You have from May 28th to vote so make sure to do it soon.



The webinar will be on Thursday June 7th…

I am going to start this article with a question which could signify a major portion of your current level of success or failure in trading.

 

The question is;



Do you believe willpower (and specifically - your willpower) is a limited resource, and if so, what do you think it limits you to learn, achieve and accomplish?  

 

A follow up question to this is:



If you work on a difficult task,…

In one of my most recent webinars on price action forex trading, I talked about a key method for detecting when a trend is over-extended, which is to look for a climax or exhaustion reversal bar.  I had mentioned how from an order flow perspective why these exhaustion and climax bars tend to represent a high probability reversal coming based on the various…

Lately I have been spending a lot of time crunching data on some of the forex price action algorithms my programmer and I created, that the data can at times become overwhelming to digest.  In times like these, in needing a break, I often enjoy reading something completely unrelated to forex so I can engage other aspects of my brain.  Recently, the subject…

One of the more popular price action forex reversal patterns people trade today is the engulfing bar reversal pattern which is one of many two bar reversal patterns or AB reversal patterns (AB as in it has an A bar and B bar as part of the pattern) available.  Although this is a commonly traded pattern, many traders fail to find the best entry or are able to gauge a proper target using any…

Here is a collection of some of my students recent price action trades across EUR/USD, GBP/USD, Gold, AUD/USD, etc.  



All of these are trade setups from students in my price action course whom have been really turning it up lately finding some great setups.



The top winners of these are some nice 4 and 5+:1 R:R plays so congrats to all my students!



#1 Riga P.…

I was talking with one of my price action forex students today who in some sense, has a very typical story - they tried everything, from forex robots, signal services, listening to expert trade advice, reading all kinds of books, etc. but no matter what they did, they still were consistently losing.  They are definitely dedicated and sincerely want to learn to trade the forex market successfully so it…

Often times, we measure our success as a trader by our account value, whether it has grown, perhaps doubled in size, or whether we have lost and are under water.  Unfortunately, this is really a myopic way of measuring our success in trading.  If this was the true benchmark, then for my first 6 mos of trading, I must have been a rock star turning 3k into 83k.  How did I do it? Over-leveraging to the hilt and having the most unbridled approach to the markets.  If you measured success by my…

Last week I was busy traveling on business so missed it but am back now for my weekly forex trading insights.



 

Yesterday on my facebook page, I wrote about a short term bottoming formation in the NZDUSD as it was approaching a key support level.  The traders in my price action course also noticed this setup and were looking for an entry as well.  Below is the chart around the time I…

Today I am going to discuss trading the price action pattern called a Pinbar which is a fantastic technique for catching reversals, entering traps, and getting into trends.  In this article, I will specifically talk about how you can use it for finding short term tops and bottoms, what it is communicating from a price action and order flow perspective, and one method for trading them.



 

The term was originally penned by Martin Pring calling it…

This week I'm going to discuss something that has probably happened to many of you before and something that just happened to me a couple days ago.



 

The Two Trades



 

The NZDUSD had just dropped three days in a row, shedding 300pips in the process with each candle selling off fiercely and price breaking and close below the daily 20ema for the first time all year (actually since Dec. 2011).  I blogged about this in my …

Back in 2008 I started speaking about evolving or dynamic support and resistance, both in the Ichimoku Cloud and in using moving averages.  I've been getting a lot of questions from my newer students lately about dynamic support and resistance so thought I would write an article about it here, what it represents and how you can use it in trading.



 

In essence, there really are two types of support and resistance levels (or…

In a constant effort to refine the trading and educational process in helping traders become profitable, I have put together this article which will give you five keys to improving your trading and particularly help with the learning process to becoming a successful trader.



 

Key #1:  The Zone of Proximal Development



 

This is the idea that learning works best when you the trader tackle something that is just beyond your current…

I have been working really hard lately on my upcoming book 'Trading Price Action' which I am seriously looking forward to finish and deliver to the world at large.  Currently I am dissecting a chapter on pattern recognition and came across this interesting chart.  In trading, we often look for fixed patterns we are trained to see, such as;…