Welcome to my trading journal. This is where I share my thoughts on the Forex market, and talk through the actual trades that I make. Today, I’m analyzing the market and deciding where to put my money for January 10th, 2024. Read on to find out what I see.
Gosh, I’m stupid. We’ll see how this plays out.
First of all, on the bright side, I was able to get out of bed early enough that I had a protein shake, meditated and made my first cup of coffee before 8:30. that’s a good start, and I hope to keep that train going.
Secondly, I remembered this morning a tool I used to use that compared the strength/weakness of the 8 currencies visually with lines on a graph. I opened that up because I remember getting some pretty good signals using that chart.
I’m starting with a couple pairs I like because of that tool, and then moving on to sorting by volume. I don’t have a lot of pairs I’ve pulled out from this chart right now, but I’m going to ramp up my use of this tool going forward.
Let’s dive in
EUR/CHF – Short
This was the first chart that I pulled out from the “RSW Chart” and I’m immediately disqualifying it. For a couple of reasons. For one, the RSW suggests that CHF is stronger than EUR, so in this Euro-Franc pair, I should be bearish. Looking at the chart, though, price has been up over the last couple of days, and looks to be making a bull-pullback.
That said, the highs that his made today before the pullback is at a very strong resistance area that’s held up going back to the end of December, so that might actually be a sign of weakness. Actually, the more I look at it, a short range-bound play might make a lot of sense here.
Honestly, it’s tough either way. I’m not going to completely disqualify this, but I will hold off for now and maybe revisit later today.
EUR/JPY – Long
This was also from the RSW chart and it looks promising. Price has been up quite a bit, has broken some key areas and appears to be building energy to make another break to the upside. That said, though, price is in overbought territory, so I’m not sure how much more upside it has.
There is a target that looks decent enough to give me a good R:R, and on the 15 minute chart, there’s a solid base/bull-pullback that’s formed, so this might be viable. I’ll run the numbers and see if it makes sense.
GBP/JPY – Long
This is why I started this with “I’m stupid”. After looking at EUR/JPY and not loving it, I moved on to this. It looked similar to Euro-Yen, but the high base was cleaner, and as I was looking at it, the highs were being broken. I didn’t take my time and do a full analysis here, I just zoomed out and picked a target, then ran the numbers using a market order (since price was moving and I didn’t want to miss it). The R:R was hovering around 2, so I just entered the trade. It’s going okay right now, we’ll see how it ends up.
I will say that despite all of it’s strength, it’s also definitely in overbought territory. Let’s see how much that matters today; stay tuned to see the full analysis of this trade.
Thanks for reading! What did you think about my moves today? Let me know in the comments. I dove in to something immediately today, so be sure to check back soon to see how that trade played out.