This trade starts off on the 4 hour chart.  Here is the BaseLine and the EntryLine; just focus on the BaseLine right now.

And
here is the 1 hour chart, and here is the EntryLine closer up.  A close
below the EntryLine should take us all the way to the green BaseLine.

The CAD/JPY is setting up nicely for a reversal.

The first chart is the 1 hour and it shows our green BaseLine:

The
second chart is the 15 minute chart and it shows our blue EntryLine.
If the pair closes above this line, we could have a good buy trade and
target the green BaseLine.

Now,
the pair has moved so far so fast that we can draw a red SteepLine, and
maybe even get in earlier on a close above the red trendline.  The goal
would be for the pair to carry us up to the blue EntryLine and we’d
have a huge jump on the reversal.  Be careful, however: with an earlier
entry and a tighter stop, we get the chance that we could stop out of
the trade more easily.

Here’s the SteepLine chart (also the 15 minute):

The EUR/USD dropped out of the channel it has been in; it’s now staying outside of the channel, and this could bring further losses.  I am excited to see where we go from here.  That’s why I am updating the blog, which is obvious.

Here’s the basic channel on the 4 hour chart:

Now we’re going to add some Winnipeg lines to the chart to give us an idea of where we might be going.

The red lines below the channel are what we call Winnipeg lines; they are extensions of the width of the channel itself.  The first red line you see is a 100% extension outside the channel.  It’s very easy for me to imagine the pair falling all the way to that level.  I might wait to enter the trade, to see if the pair can rise back up a bit (even to the bottom of the old channel it broke).

Over the past year I’ve received hundreds of questions about the support and resistance trading that we do here in the Postcards blog.  Francesc, Dave Murphy, and I decided that it would be a good idea to release a DVD to help explain in greater detail the methods and the techniques that we use here.

Here’s the result: the FXStreet.com Complete Guide to Support and Resistance Trading.  Click the image below for more information:

I’ve been looking at a EUR/USD trade for a few days now and I’m finally ready to give up on the trade.  The pair did not fall to the green baseline.  And it’s nearly the weekend.  So I am closing the trade.

Here is a link to the last EUR/USD update and the original trade idea.

We’re getting close to the entry on the USD/CAD.  Keep an eye on this one.

The USD/CAD, it is no secret, is my least favorite currency pair on the planet.  I could do without it, really, sometimes.  It can really annoy me at times.

Here is a new setup.  Here’s the 4 hour chart, with our green Baseline:

And her is the 1 hour chart, and our blue Entryline.  If the pair closes above the blue line, we should see a move to the baseline.

The EUR/USD has been wild lately, and it’s no secret that 99% of the human population sold the EUR/USD on Monday.  This includes my payroll guy; he called me today and wanted to know how he could sell US Dollars.  Well, the money has been in counter-trend trading for the last 24 hours, folks.

Here is the original trade idea.

And here is the update: the pair has fallen and it’s getting closer and closer to the green BaseLine.  I am happy to stay in the trade with my stop on the position at break even.

PipMonster wrote an excellent comment.  I’m going to respond to it here.

Now that we’ve lost on the previous EUR/USD trade, I’m ready to get back my pips.  Here is what I’m going to do:

We’ll start with the four hour chart and draw ourselves a delicious green BaseLine trendline.

And then we’re going to move down to the 1 hour chart and draw ourselves a blue EntryLine, and if the pair closes below that line we’ll go ahead and sell the pair and use the green BaseLine as our profit target.  The stop loss is above 1.6050 (mine is at 1.6065).