Good day forex traders,
making money in forex is not easy. If you want to make money in forex, you need to have patience and commitment. The Koala System is all about it!
In the last review, we saw the system giving us 4 standard opportunities. Having said so, we noticed that individual moves were getting tighter and a consideration of 30 pips take profit might be a suitable one. The 200 EMA continued to prove it’s usefulness, often acting as a support and resistance line.
Looking at the EUR/USD 15 minutes chart above, the week was quite a good run for system. As many as 6 standard opportunities were up for grabs.
The first opportunity came at the start of the trading week as investors prime the currency pair for a bearish drop. Sentiments were bad and the money market was apparently tightening. While investors tried to take stock of the current situation, the EUR/USD ranged widely providing for the second opportunity. In fact the currency pair continued ranging into the second day, providing for 2 more opportunities. The Koala System is a trend trader and hence such almost trend like ranges were good for the system to harvest.
As a result of risk aversion, the EUR/USD was overwhelmed by bearish pressure and dipped lower. That move was not highlighted because the momentum was too fast. The Koala System is a defensive system and hence not much risk allowance is given. Fast momentum may be a target of a fast rebound. However if you were still in position from the earlier opportunity, with an appropriate trailing stop loss your harvest may be a bountiful one. After touching a low the currency pair slowly recovered due to improving sentiments with regard to the actions taken by the Euro Zone to curb the crisis. The upwards move provided for the remaining two opportunities.
This week the 200EMA once again proved to be a useful indication of possible support and resistance. I am currently testing a take profit of 30 pips. The market is an ever changing arena and hence we must be constantly evolving or risk the chance of losing the edge.
Trade safely and i will see you next week.
Read the latest EUR/USD weekly review for a heads up.