How I Use the Trade Focus Numbers

The trade focus number(s) are potential entry point(s) I expect PA to break if it must continue its journey, and should it retrace, I also try to be ready for the counter trend trade. 

Let me use the attached CADCHF to illustrate the way I use the trade focus numbers:

1.    First, I identify the trend on the H1, H4 & D1 charts, and look for trades in that direction, as we've all learnt that the trend is our friend. The trend however need to take a breather and will pullback; therefore I also take counter trend trades, when PA is retracing and 3 consecutive lower TFs are moving in the same direction; 

2.    On the attached CADCHF, my initial focus was to go long on a break of the Aqua horizontal line @ 9189 and/or short on convincing break of 9105;

3.    The new session opened at the vertical plum line, and no long trade was triggered; but a short trade was later triggered during the US session;

4.    As stated above, I always like to see at least 3 consecutive TFs moving in the same direction before I enter any trade but in this case we had almost all the TFs in agreement to the down side. Therefore I consider this a high probability trade;

5.    I will only be looking for short entries on any retracement, using either the M5 or M15 TF;

6.    The pair has been in a downtrend before retracing up, but the H4 chart has since confirmed resumption of the downtrend around April 6th, as per attached H4 chart.

7.    The Asian session resumed on May 1st with PA going down and bouncing off the WS2 at 9123 and going to 9171 where it met another resistance, to resume its ride down, thereby giving us a better entry point;

8.    So we had an opportunity to enter short at 9144, and another one after the small pullback to 9137, on break of 9123 (where it initially bounced during the Asian session) for additional 18 - 39 pips before the focus number.

I also use the MACD and/or Zoltan Kiss' TWS QQE to filter my trades, in addition to the Heatmap from Mark McDonnell of Forexearlywarning.com to monitor strong and weak currencies.

This service is not for newbies but for "experienced" traders, who already have their own system and method of trading, as the focus number(s) will only confirm your analysis/research.

DISCLAIMER

Traders should recognize the risks associated with trading in the Foreign exchange markets, as government intervention and/or large institutional trade(s) can change the direction of the market in a second. Therefore we are by no means recommending the purchase or sale of any financial instrument or currency by the release of these numbers. The trade focus numbers displayed on this blog are for demo/practice trading only, and should not be relied upon as a substitute for your own research and analysis. Past performance is not necessarily indicative of future results. Individual traders are ultimately responsible for their trading decisions.

©2011