Here are forex trading signals/trade setups that I’d be watching for the coming week. The charts are self explanatory.
#1: Forex Trading Signal & Trade Setup On AUDUSD (Sell trade setup)
- there’s a downward trendline on the daily chart and your can see price has been heading up to it last week.
- if price touches it this week, watch for a bearish reversal candlestick to short it.
- you may have to switch to smaller like the 1hr to wait there to enter.
#2: Forex Trading Signal & Trade Setup on EURAUD (buy trade setup)
- there’s two levels/lines to watch out for on this one, the upward trendline and the major support level on 1.3797 as can be seen on the weekly chart.
- the first thing price will hit will be the upward trendline. Watch for a bullish reversal candlestick to buy if that happens.
- however, if price breaks that upward trendline, the next level it will test will be the support level. Same thing, watch for bullish reversal candlestick to buy if that happens.
- this is the weekly chart so switch to smaller timeframes to wait for buy signals when price hits these lines.
#3: Forex Trading Signal And Trade Setup on EURJPY (Buy trade setup)
- there’s a major support level on 134.065 and price is heading down to it and its quite close as can be seen on the weekly chart.
- watch for a bullish reversal candlestick to buy if price hits that support level.
- you should switch to smaller timeframes like the 1hr and wait there for better trade entry.
#4: Forex Trading Signal And Trade Setup On GBPJPY (buy setup)
- the first thing price hits if it goes down will be the main support level on 174.97 as as can be seen on the weekly chart.
- the next level if that support level fails will be the upward trendline.
- watch for bullish reversal candlesticks and switch to smaller timeframes like 1hr for your trade entries when and if price hits these levels.
#5: Forex Trading Signal & Trade Setup on GBPUSD (buy setup)
- This is one setup I will be monitoring closely one Monday when forex market opens.
- price may go down and re-test the upward trendline which can be seen on the monthly timeframe.
- on the 4hr chart, notice the price is just near that upward trendline.
- so if that happens, watch for bullish reversal candlesticks to buy and maybe switch to 1hr timeframe to do that instead of 4hr.
#6: Forex Trading Signal & Trade Setup on USDCAD (sell setup)
- This is my number 1 candidate to watch as soon as the forex market opens on Monday.
- notice on the daily chart, there’s a shooting star candlestick (bearish pin bar).
- I believe this is in reaction to the downward trendline which can be seen on the monthly timeframe. Even though you can see that this trendline is broken and price is above it, the price action is showing signs of weakness. That’s why I tend to mention in my posts that if you see a trendline or a support or resistance level get broken, don’t think its over yet…just wait and watch the price action to see if there are any signs of weakness.
#7: Forex Trading Signal & Trade Setup on USDJPY (either sell or buy setup depends on which direction price heads first)
- This is a setup that can be seen clearly in the 4hr timeframe.
- At this stage, its quite hard to tell what will happen on USDJPY but I see two possibilities…it can continue to climb up and hit the downward trendline and bounce back down (but if that trendline fails, price may continue to go up)
- or price will fall back down to a major support line on 115.55 and may bounce back up.
- whichever one happens first, you should know what to do as explained on the previous setups you’ve read.
HOW TO TRADE THESE SETUPS
- Note that many of these trading setups are in the larger timeframes so you need to switch to smaller timeframe to get a good entry like the 4hr and 1hr timeframe and even smaller if you chose to. I generally prefer the 1hr and smaller timeframes for better trade entries.
- Look for bullish or bearish reversal candlesticks for trade entry.
The risk:reward for these kind of trade setups are really good if trade works out as planned.
Every trade you take does not come with a 100% guarantee of profit. So know your trading risk and trade accordingly.
Similarly, support and resistance levels and trendlines are not lines drawn in concrete…they do get broken.
That’s why its important to understand about price action trading. If you haven’t downloaded the ebook (its free) “The Ultimate Price Action Trading Guide”, you’d better do so because I’ve done my best to cover the most fundamental concepts of price action trading there. Download link below or on the top right corner of this website.
WHAT TRADING SETUPS ARE MOST LIKELY TO HAPPEN ON MONDAY?
My bet would be the USDCAD and GBPUSD. (Refer to charts above).
On the USDCAD, there’s already a nice looking shooting star bearish reversal candlestick (also called bearish pin bar) you can see on the daily timeframe. The problem with the shooting star candlestick on the daily chart is the If I place a pending sell stop order, my stop loss distance will be huge. This will decrease my risk:reward ratio so I’m not going to do that.
So what I will be doing is looking for an opportunity to apply any one of the these two trading techniques below to get into a sell trade if and when it happens:
- daily-pin-bar-forex-trading-strategy-with-a-twist-for-low-risk-high-reward-entry
- daily-pin-bar-trading-strategy
The next setup I will be watching closely will be GBPUSD as you can see the price price is very close to the upward trendline and if there is a re-test, I’d be watching to buy on the upward bounce when that happens.
MAJOR FOREX NEWS COMING UP THIS WEEK SO CHECK BEFORE YOU PLACE ANY TRADES
Don’t get caught out. Go over to forexfactory/calendar to check the major forex news announcements and when they are scheduled to be released.
The main one I think for this week will be on the EURO due to the ECB Press conference on Thursday Jan 22nd .
And also there’s others like Claimant Count Change on GBP on Wednesday 21st Jan.
REMINDER!
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thanks coach