Hey Guys,
It’s been a while since I last posted. Sorry I haven’t been around much but I have been busy with a family emergency. It’s also Christmas time so I have been running around like crazy, organizing Christmas and buying presents.
I am back to trading now so let’s take a look at the current market conditions and how to trade them. The key in a market like this is how well you can adapt to the current situation. With the market moving so erratically I have had to adapt my trading method, in order to keep making pips. This does not mean I have completely changed my method. Actually I have further simplified my method to work better in this kind of market. So what have I done?
For now, I have stopped trading support + resistance lines. However, I have found that scalp lines and reversal patterns are working even better than normal, in these conditions. The problem with support + resistance lines on GBP/JPY at the moment is that GBP/JPY is in an area we have not seen since 1995. This makes it very hard to pick S+R lines. That’s why scalp lines are so effective at the moment because they are based off current price action. SO what do we do?
WE ADAPT!
We do not use S+R lines until the market reverses and moves towards more familiar prices, where there is more history to base S+R lines accurately.
You can’t try to place S+R lines when you have no historical data to place them. If there are no lines to place DO NOT PLACE THEM. You do not try to fit lines in when they shouldn’t be there.
So right now all I am using is scalp lines and candle patterns and there are still a number of trades to be taken.
I will release an article in which I will discuss this issue in more detail tomorrow.
blogvalas
I’m waiting for your strategy about GBP/JPY. Adapting the market, I agree 100%. The GBP/JPY is extreme pair to trade. Challenger …
geoff
Hi Nick, i am new to forex but i was wondering how and where you were placing s/r lines considering how low the pound is at the mo.
geoff
…that wasnt a question by the way.
NickB
@geoff: I was think for a second…. “didn’t this post jsut explain that?” lol thanks for clarifying. Glad I could answer your question.
Maori Pip
Hay Nick, that’s for the update. Sorry to get all sentimental on you but your advice (which I have read all over this site) really brings trading back down to ground zero. I appreciate the fact that your video goes to charity, that you have taken the time to do a PDF of your trading method, and that you let us know how well you are doing without bragging. Sometimes I compare your analysis with those I find on forexfactory and to be honest, their charts are so crowded I cant even see the candles, just bloody lines everywhere.
Point is Nick, this site is awesome, combined with Babypips they too sites make a good combination for any forex trader pro or noob.
Kia Ora Kare (be well friend)
beetee
Hi Nick,
You say that since we are at price levels not seen since 1995 we cannot select S/R lines until the
market moves back to more familiar prices, where there is more history to base S/R lines
accurately. My question is how far back historically do you feel comfortable/confident going
to find S/R lines that you think would be reliable for the current market ?
Mark
Thanks Nick.
luis
Thanks Its been hard this days