THE MAGIC TRADING PORTFOLIO: ***Friday October 17*** Good US & CAD data ***PORTFOLIO -> ***REVIEW -> $NZDUSD

General Notes:

Welcome all new subscribers to the blog. Below you'll find a breakdown of all the major currency pairs along with their Supply & Demand zones. Know these areas and mark your charts because price will move between these areas. Major $USD data came out today which was bad and perfectly timed to proper the currency pairs in the direction they should be heading based on hitting the higher time frame zones. Take a look at the currency pairs to see what i mean. The institutions buy the currency or sell the currency in their respective supply/demand zones and then the news helps propel price in the direction they need to profit! Understand this one concept and you too will profit like the banks do! The CFTC Commitments of Traders Report came out on Friday and shows some interesting facts. Institutional traders are becoming heavily short the Aussie dollar. All other data from the COT report is presented in the currency sections below.

Market Movers October 13th - 17th:
Click here for the Week Ahead -> Oct 13 - 17, 2014 Market Movers

The Magic Trading Portfolio's Position Sizing:

Currencies --> Risking only $100 per trade. As my risk tolerance gets larger, I will slowly start increasing my risk amount. This is how you become a consistently profitable trader.

You can follow, learn & PROFIT from The Magic Portfolio by following the members only @MagicAlerts on Twitter. I'll be sharing my thoughts on the markets, providing video lessons on trading Supply & Demand and also be sharing with followers some very exclusive stuff. You'll have to follow to find out what. I am mapping out Institutional Demand & Supply. Do your own DD and use the info whatever way you see fit. Welcome to The Magic Trading Portfolio!

How to keep updated with the blog? I tweet updates to The Magic Trading Portfolio all day live, my advice is if you have an iphone etc, turn notifications on for my account @magikev to get the updates to the portfolio. If you missed an update, just come to the blog and check on the right side where the twitter feed is located and go through the feed to see what updates you may have missed. Otherwise, subscribe to the email updates and receive them in your inbox.

Magic Ingredient:
If there is any one thing that has added more to my success than anything else, it is understanding how important it is to time the market with your trades. The key to my strategy is to time the $USD's GREEN and RED zones with the GREEN and RED zones from the setups. If they are both entering their same colored zones at around the same time then the probability of the setup working out is highest. Otherwise, currencies need to be trending upwards to take entry of setups in the GREEN zones or currencies needs to be trending downwards to take entry of setups in the RED zones.
SHADED GREEN ZONES = Strong Buy Zones

SHADED RED ZONES = Strong Sell Zones

Markets Overview (The Big Picture):

Take note of the GREEN demand zones and RED supply zones mapped out below. These are the areas of interest for me because this is where there is a great deal of demand to fill buy orders and supply to fill sell orders from the institutions.

$USD Overview (Weekly Chart)
Perception of Monetary Standing: HAWKISH => NUETRAL
--> $USD could drop to the weekly demand zone at 84ish.

$USD Overview (Daily Chart)

--> We could be seeing more downside on the USD this week.

Economic Data October 15 update:

Currencies:

The Million Dollar Strategy:

Chart Setup --> Chart has an 89 period EMA and an 8 period EMA, RSI indicator of 60 overbought and 40 oversold.

Buying or Selling when price enters a 240 minute area of demand/supply outlined by the green zone/red zone. First target will be opposing 240 min supply zone/demand zone and the opposing daily or weekly supply zone/demand zone.

Perception of Monetary Standing (courtesy of DailyFX):

$USDCAD -> Commitment Of Traders Report: Institutional traders are LONG biased. (10/7/14)

Increased <== LONG -> 46k SHORT -> 39K ==> Increased

Perception of Monetary Standing: DOVISH
Notes: Weekly supply has been hit and seems to be getting weaker. Idea is that price will break up to new highs and head to weekly supply at 1.16000.

THE SETUP ==>

$AUDUSD -> Commitment Of Traders Report: Institutional traders are VERY SHORT biased. (10/7/14)

Decreased <== LONG -> 31k SHORT -> 58K ==> Increased

Perception of Monetary Standing: DOVISH
Notes: The Aussie hit weekly demand that is not authentic but fresh so this level should not hold, it rallied up into daily supply and is now dropping. Price should drop and break through the weekly demand zone area and head to at least daily demand at 0.84000.

THE SETUP ==>

$USDCHF -> Commitment Of Traders Report: Institutional traders are LONG biased. (10/7/14)

Increased <== LONG -> 27k SHORT -> 15K ==> Increased

Perception of Monetary Standing: NUETRAL
Notes: Fresh weekly supply is at 1.00950 and price hit fresh but not authentic daily supply so would expect price to continue higher. Just hit some daily demand and should be heading higher.

THE SETUP ==>

$EURUSD -> Commitment Of Traders Report: Institutional traders are VERY SHORT biased. (10/7/14)

Decreased <== LONG -> 61k SHORT -> 207K ==> Increased

Perception of Monetary Standing: DOVISH
Notes: Weekly RBR demand hit and price went higher towards daily supply but is now reacting to Draghi news falling straight from 240 supply. Seems to want back down. Next stop 240 demand at 1.24614.

THE SETUP ==>

$GBPUSD -> Commitment Of Traders Report: Institutional traders are SHORT biased. (10/7/14)

Decreased <== LONG -> 46k SHORT -> 47K ==> Decreased

Perception of Monetary Standing: HAWKISH => NEUTRAL
Notes: Might see more upside on the Pound, as it hit Monthly/Weekly/Daily demand zones.

THE SETUP ==> Long @ 1.5818, SL - 1.5766, TP 1 - 1.5900, TP2 - 1.6028

$USDJPY -> Commitment Of Traders Report: Institutional traders are LONG biased. (10/7/14)
Decreased <== LONG -> 137k SHORT -> 24K ==> Decreased
Perception of Monetary Standing: DOVISH
Notes: Hit some weekly supply and should be heading down towards daily demand at 107.300.

THE SETUP ==>

$NZDUSD -> Commitment Of Traders Report: Institutional traders are NOT biased. (10/7/14)

Increased <== LONG -> 10k SHORT -> 10K ==> Increased

Perception of Monetary Standing: HAWKISH => NEUTRAL
Notes: Price has hit weekly supply/previous demand. It's a hidden zone but a zone nonetheless. Idea is to watch price fall back down through the weekly/daily demand it bounced from which is not authentic zones. Price will fall to the 240/daily demand below at the 0.76000 area.

THE SETUP ==>

$NZDUSD -> Commitment Of Traders Report: Institutional traders are NOT biased. (10/7/14)

Increased <== LONG -> 10k SHORT -> 10K ==> Increased

Perception of Monetary Standing: HAWKISH => NEUTRAL

Notes: Price has hit weekly supply/previous demand. It's a hidden zone but a zone nonetheless. Idea is to watch price fall back down through the weekly/daily demand it bounced from which is not authentic zones. Price will fall to the 240/daily demand below at the 0.76000 area.

THE SETUP ==> Long @ 0.79265, SL - 0.78850, TP1 - 0.80445, TP2 - 0.81145

Oct 16 -> Trade Activated

Oct 16 -> Stop hit

Trade Review => Click 2 Review

$USDCAD -> Commitment Of Traders Report: Institutional traders are LONG biased. (10/7/14)

Increased <== LONG -> 46k SHORT -> 39K ==> Increased

Perception of Monetary Standing: DOVISH
Notes: Weekly supply has been hit and seems to be getting weaker. Idea is that price will break up to new highs and head to weekly supply at 1.16000.

THE SETUP ==> LONG ==> 1.11990, SL - 1.11690, TP1 - 1.2515, TP2 - 1.13451
Oct 10 -> Trade Activated
Oct 12 -> Moved stop
Oct 14 - Trade Closed for profit.
Trade Review => Click to Review

$AUDUSD -> Commitment Of Traders Report: Institutional traders are VERY SHORT biased. (10/7/14)

Decreased <== LONG -> 31k SHORT -> 58K ==> Increased

THE SETUP ==> SHORT - 0.87639, SL - 0.88000, PT1 - 0.84990
Oct 13 -> Trade Activated.
Oct 13 -> Trade Closed.
Trade Review - Link

THE SETUP ==> Long @ 107.252, SL - 107.010, TP1 - 107.520, TP2 - 108.750

Oct 12 8:50 pm -> Trade Activated

Oct 13 -> Trade Closed

Trade Review -> Link

$USDCAD -> Commitment Of Traders Report: Institutional traders are LONG biased. (09/30/14)

Increased <== LONG -> 37k SHORT -> 33K ==> Increased

Perception of Monetary Standing: DOVISH
Notes: Weekly supply has been hit and seems to be getting weaker. Idea is that price will break up to new highs and head to weekly supply at 1.16000.
THE SETUP ==> Tried a quick scalp and got out too early. Amateur move.
Trade Review => Click to Review

$NZDUSD -> Commitment Of Traders Report: Institutional traders are LONG biased. (09/30/14)

Increased <== LONG -> 10k SHORT -> 10K ==> Increased

Notes:

THE SETUP ==> LONG @ 0.79231, Stop @ 0.78855, T1 - 0.79860, T2 - 0.80530
Oct 9 -> Stop hit
Trade Review => Click to review

$AUDUSD -> Commitment Of Traders Report: Institutional traders are LONG biased. (09/30/14)

Decreased <== LONG -> 43k SHORT -> 45K ==> Increased

Notes: Price is breaking through weekly demand zone.

THE SETUP ==> SHORT => 0.87685, Stop @ 0.87700, Target 1 - 0.85990, Target 2 0.85000
October 6 -> Trade Activated
Trade Review ==> click to see review

$EURUSD -> Commitment Of Traders Report: Institutional traders are SHORT biased. (09/30/14)

Increased <== LONG -> 67k SHORT -> 204K ==> Increased

Notes: Price hits weekly/daily/240 demand. Trend change time?

THE SETUP ==> SHORT => 1.26147, Stop @ 1.26360, Target 1 - 1.25705, Target 2 - 1.24255
October 6 -> Trade Activated
October 6 -> Trade Closed
Trade Review ==> Click to see review