Happy Sunday everyone,

I hope you are having a great weekend. It's still hot in Amsterdam. I love it.

Yesterday, I explained how I trade to my nephew, and while I was doing so, I thought, damn, there is a lot to learn before you can trade profitably. He had questions like, How do I place an order with a broker so I always risk a fixed percentage per trade? And this question only came up, because I told him to backtest his trading idea/strategy and record the result in R won or lost. He then asked, why only record R. I said that you should always risk the same percentage of your account on every trade. If you record R, then you can know if your strategy is profitable or not. So finally, I pointed him to my free ebook: Learn to Trade. After he has read that, we will talk shop again :-).

Weekly review

Last week was a pretty active week. The result was 2R, and I still have one trade open in profit.

Here is the breakdown for the past week:

Wins: 2 (+4R)
Losses: 2 (-2R)
Breakeven: 0
Missed: 2 (+4R)
Canceled: 1
Open: 1 (+0,5R)

The two trades I missed would have been winners, so I left 4R profits on the table. This has happened before, and I still haven't realized how I didn't see these trades. It seems like this happens when I already have an open order that has not been filled yet. The missed trades were pretty clear inside bar continuation trades.

There is no point in dwelling on these missed profitable trades, but I do intend to minimize missing trades.

Weekly FX Forecast

I have again prepared charts for the FX pairs I intend to trade for the upcoming week. Specifically, I trade only four pairs: EURUSD, GBPUSD, USDCAD, and AUDUSD. I used to trade more pairs in the past, but after analyzing my Trading Log, I realized that focusing on these four pairs would yield the best results.

How to read my forecast?

So, my weekly forecasts are not trading signals. The best way to read and use my forecasts is to look at them as indications of where I will be looking for trades and in what direction. You will see the levels I have placed on my chart. The arrows indicate how I expect price to bounce, or break when it gets there. My forecast only looks at which level is directly above and which level is directly below the current price. For my next trade, I will be looking for a setup at (one of) those levels.

Dollar index

First, look at the Dollar index to get the big picture. I do not trade the Dollar Index, but knowing where the Dollar is heading overall will help you understand where the other pairs are going.

4 Forex pairs

On the EURUSD I am looking for a bounce of the support level. If the level breaks, then I will be on the lookout for a retest of the level that now has become resistance.

The Cable has already broken below the support level. This level can now act as resistance. If we immediately move lower then I will be looking for a bounce on the next support level.

The USDCAD can move lower of the current level. If it does then I will be looking for a bounce of the next support level. If it does not, then I will be looking at the overhead resistance to short from there.

I am currently in a continuation trade short. If we go lower, then I will take profit and look for a bounce of the next support level. If we move higher, then I will be stopped out for a -1R loss, which is OK, and then I will look for another short entry at the next resistance level.

If you are interested in my long-term investment strategy and analysis, please visit my profile on Etoro.

Additionally, if you want access to the same charts I use, consider checking out Tradingview.

Also, if you want to learn how to trade like I do, check out my Ebook: Learn to Trade.

Finally, please subscribe to my newsletter, if you haven't done so already, to get weekly updates by email.

Best of luck with your trading endeavors, and if you have any questions, please leave them in the comment section below.

Sincerely, Dave.

This information is for educational purposes only and is not trading advice. Please see the full disclaimer here: https://davetromp.com/disclaimer/

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