Great Privilege

I would like take a moment and thank a fellow trader for his time he took this morning with me , Richard Estrada to go through an in depth currency analysis of the euro futures for me and help me on my quest to become a professional trader ,Richard himself is a professional trader I think he mentioned that he has been trading professionally on his own managing accounts for 10 years ,I have to say that the time Richard took to explain and go through the analysis with me was amazing ,there was no catch, there was no obligation to any product what so ever ,his insight and clarity and the way that he approached the analysis was simply mind blowing , I have been trading for 2 years but when you meet and chat to traders like Richard , you realize that there is still so much to learn.That is what professional traders are mad up of .

I  would like to post an article he wrote .........I do realize that I only have 2 followers but trust me when I say that an  avalanche starts with the rolling of the first snow flake,and I hope that any future followers who are serious about trading visit his site and have a chance to speak and chat to him.

Currency Futures Trading Having a Battle Plan

Posted by: Richard Estrada  //  Category: Euro USD Futures

When you step into the currency futures market are you executing from an offensive plan of attack or are you trading based on the current price action? Think of you yourself as a combat soldier for a moment. Are you entering the battle zone with an idea of where the enemy is and how you might engage the enemy, or do feel like you’re being ambushed by the enemy?

If you feel the market is ambushing you, than maybe you’re not thinking ahead. Remember, for me trading is about trying to anticipate where the market might be and how I might engage the market at some point in the future. Think again like a combat soldier. You get intelligence from superiors on where you think the enemy is or will be, and then as a leader of your unit you create a plan on how you want to engage the enemy.

Currency Futures Trading is similar in my opinion and this why. As a currency trader you want to anticipate the market and create contingencies on potential market movement. Here is an example of a report I wrote for Monday September 14, 2009, which could be considered intelligence and should not be construed as a way to engage the enemy (trade triggers).

“If a currency trader want to be short the Japanese Yen then a break below the 24-bar moving average (blue) on the 60-minute chart could trigger a short position. In this scenario a currency trader is looking for the Japanese Yen to pull back to the 5-day moving average (1.0940). If the Japanese Yen were to run back through the 24-bar moving average by x amount ticks, then this could be a cue to abandon the short position.”

Remember, if you are thinking like a combat soldier, then this briefing (currency technical report) on the potential enemy whereabouts is in my opinion very valuable. Let’s take a look at the battlefield (see 60-minute chart below).

This chart shows a break below the 24-bar moving average (blue), which was a battle scenario I created the day before. How a currency trader enters the market based on the intelligence comes down to personal preference. Now, let’s take a closer look at the Japanese Yen by assessing the 5-minute chart (below).

Again, you can see where the price went through the 24-bar moving average and how it held below the average on a retest of the average hours later. Also notice that the 5-day moving average is still well below the price of the Japanese Yen. Thought the closing price of 1.1003 today and a projected opening price around the same price as the close would put the 5-day moving average somewhere near 1.0963, which is very close proximity to the low of Monday’s Action (1.0979).

To get tomorrow’s intelligence report, simply request the Free Currency Futures Trading Report. If you want live analysis, simply request to join me in the Trading War Room.

Thanks again and I look forward to your comments, suggestions and or questions.

Please visit his site, I do highly recommend it ...I do urge you to get into contact with him but only if you are serious about trading and becoming a professional trade as the time he takes and the insight he has to share is amazing and time consuming ,and as we all know the market waits for no man ,so please only if you are serious about trading.
I am going to copy this blog to Richard and hopefully he approves ......... and allows me to post this on my blog ...if not please be aware that it will be removed promptly
www.currencyfuturestrading.org