Live Trading Analysis Guideline

1. Choose 1 or 2 currency pairs (e.g. USDJPY, EURUSD, GBPUSD etc) that you
want to analyse based on the suitability of your lifestyle. (e.g. If you wake
up very early and has time to trade, choose currency pairs that has AUD,
NZD and JPY)

2. Identify current market trend and market phrases

Market Trend

You may identify market trends by using support and resistance, trendline
and/or identifying LH/LL/HH/HL.
Market Phrase

Price has changed from a downward bounce into a downward noise. Preferably
not to make any trading decision as of now.
 3. Plot support and resistance levels. Choose one bigger timeframe (H4 and
above) and one smaller timeframe (H1 and below). You may choose to
use different colour for support and resistance and/or different thickness
for different timeframe.
Support and Resistance in Bigger Timeframe (D1 Chart)

You may use a thicker horizontal line to plot your major or key support and
resistance level in the bigger timeframe.
Support and Resistance in Smaller Timeframe (H1 Chart)

You may readjust the major support and resistance in the smaller timeframe to
connect the candlesticks more accurately.
You may use a thinner horizontal line to market your minor support and
resistance levels in the smaller timeframe.
 4. Identify Important News related to the currency pair you have chosen to
analyse. Summarize news and explain how it will affect the currency
movement (strengthen/weaken in long/short term)

Visit websites that are considered reliable source such as:

http://www.bloomberg.com/topics/currency
http://www.wsj.com/public/page/news-currency-currencies-trading.html
http://www.bbc.com/news/business/economy
http://www.reuters.com/finance/markets

Here is an example of an article took from Bloomberg with the key

sentences/phrases/words highlighted and a summary of how it will affect the
currency.

Euro in Worst Losing Run Versus Yen on Bets

Draghi Over-Delivers

Single currency set for 7-Week drop before Dec. 3 ECB meeting
Aussie halts 2-week gain on increasing wagers RBA to cut rate

The euro is set for its longest stretch of weekly declines versus the yen since
the common currencys creation in 1999 as anticipation builds that
the European Central Bank will surprise some investors with the size of its
stimulus next week.
The 19-nation currency is also headed for its biggest monthly loss since March
versus the greenback, notching up declines against all but the Danish krone
among 16 major peers. Reports Friday are forecast to show industrial
confidence in the region deteriorated in November, while annual price
pressures in Spain remained negative. Australias dollar is poised to end a
series of weekly gains as swaps signal increasing odds that the Reserve Bank
will lower benchmark rates in the first quarter of 2016.
If theres anyone who has the markets firm belief that they can over-deliver,
its always going to be Mario Draghi, Chris Weston, chief market strategist in
Melbourne at IG Ltd., said of the ECB president. The reason we havent
started seeing traders looking to fade the euro with any great conviction is
theres a genuine belief that hes guided the market to an extent and can
come out and do more.
The euro fetched 130.03 yen as of 2:37 p.m. in Tokyo, set to complete a
seven-week slide of 4.8 percent.
Europes common currency was at $1.0612, down 0.3 percent this week and
3.6 percent since Oct. 30. It slid to $1.0566 on Wednesday, the lowest since
April. U.S. financial markets were shut Thursday for Thanksgiving.
Draghi Decision

ECB policy makers will meet on Dec. 3. Australia & New Zealand Banking
Group Ltd. estimates that movements in swap rates since the last meeting
indicate that markets need Draghi to deliver at least a 14 basis point cut to
the deposit rate along with an expansion of its quantitative easing program.
The deposit rate is currently at minus 0.2 percent.
Australias dollar held a two-day decline as swap prices indicated theres
a 37 percent chance the Reserve Bank will lower its key rate by March-end.
The probability was about 31 percent on Nov. 23.
The Aussie was little changed at 72.27 U.S. cents, set for a 0.2 percent drop
this week.
Source from: http://www.bloomberg.com/news/articles/2015-11-27/euro-in-
worst-losing-run-versus-yen-on-bets-draghi-over-delivers

News Article Summary:

Euro was the worst performing currency among the 8 majors throughout November
and it all started since ECB president Draghi opened the gate for more QE and even
allowing deposit rate to go deeper into negative.

It is possible that EURUSD may hit parity by next year once the Fed begin to raise
rate.

The aussie probably wont fall too much and RBA has shown no signs of further rate
cut. Thats mainly because their currency is low enough for the time being.

That consideration will change only when aussie hit at least 73 cents again and a
rate cut will follow if it hits 75 cents.

5. Present your trading plan such as what price are you waiting for to
buy/sell and why? What are your stop loss level and take profit levels and
how do you identify them?
Example:

Price is falling down from the of a rising trend channel towards the trendline
below the current price in the H4 chart.
I am waiting for price to retrace to resistance level 1.5617 to look for trade setup
(magic candle and confirmation) to sell.
I will set stop loss about 50 pips above the resistance level or the high of highest
candlesticks.
These are my take profit levels based in certain support levels.
My take profit 3 will be at the bottom of the trend channel.

6. As your present your trading plan, relate your news analysis as much as
possible to your trading decision based on technical analysis.

Good Luck with Your Trading and

All the Best!