Video Blog – The power and precision of trading off horizontal levels…

In this short video we run through the power of trading off horizontal levels, how to find them, how to draw them and more importantly how to trade and profit from them. I use horizontal levels all the time to trade off, in line with my other technical clues. They give me clarity on where buyers or sellers are likely to turn up and and in which direction the market should go if price action reacts as I expect it to. It’s powerful stuff, but like most things in trading it takes time to master so get straight onto your charts and practice, practice, practice.

2 Comments

  • Neil

    Hi Tom,
    Recently, the USD has gone very strong in several currency pairs, like GBPUSD kept going down continously for weeks, which does not happen very often. That made me worried about trading currency pairs relevant to USD. Currently, the USDJPY has gone up a lot and from a technical aspect, this currency pair has approached the horizontal resistance level above and the price has been too far away form the MAs. However, worried about if USD will keep getting stronger, I am not sure if I shall take the trade to sell USDJPY. What’s your opinion about the lately movement about USD? Looking ofrward to your reply.

    Reply
    • Tom

      Hi Neil

      Thanks for the note.

      USD strength has come off the back of the FED hinting that a rate hike may come sooner rather than later if the positive data out of the US continues. This has lead to strength across the board. However for me personally I would be ideally looking to trade the strong dollar versus the weakest possible pairs. In terms of weak, I would be looking at EUR and JPY predominantly so looking to buy USDJPY and sell EURUSD. However everything is very overextended on the charts so will be looking for some decent pullbacks into support/resistance levels in combination with other technical factors such as fibs, stoch, price action etc….before entering.

      Hope that helps.

      Tom

      Reply

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