FORECASTING TOOLS THAT ALL FOREX TRADERS NEED
The Candlestick Signal and Patterns in the Trading Manual are extremely powerful in forecasting and taking advantage of the Currency Market each week. However, even if you are a Swing Trader or Day Trader with your own trading strategy, the power of these tools to accurately predict major market movements will definitely enhance your trading success.
The Daily and the 4 Hour Charts are undoubtedly two of the most significant time frames in the Forex Market. This therefore means that breakouts and reversals that take place on these charts have a major impact on the other time frames you trade on and your profitability in general. By ignoring them as Day Traders, you could be caught by surprise with reversals that appear out of nowhere while as Swing Traders, you could miss additional signals that provide even more trading opportunities.
There are various patterns of Candlesticks that have been identified to predict the formation of Consolidations as well as when reversals of several hundred Pips will take place. Once you incorporate these into your Trading Plan, you can be better prepared to exit at the right moment before the market has a chance to take away your gains.
FORMATION OF CONSOLIDATION
CONSOLIDATION FORECAST - CAD CHF
SEPTEMBER 2, 2015
SEPTEMBER 2, 2015
|(FXCM Charts are used for Chart Analysis &Signals as these use the New York Close of the Daily Candle - crucial for Price Action/Candlestick Strategies)|
ACTUAL FORMATION OF CONSOLIDATION
DECEMBER 10, 2015
ACCURATE EXITS AHEAD OF SHARP REVERSALS
SHARP CHF GAINS IN JANUARY 2015
CHF JPY TRADE IN NOVEMBER 2015
SHARP REVERSAL CHF JPY IN DECEMBER
EURO JPY TRADE IN NOVEMBER 2015
SHARP EURO JPY REVERSAL IN DECEMBER
As you can appreciate from these examples, the ability to forecast Consolidation and spot reversal points will help you to maximize trading gains and side-step the traps that lead to major losses. This is why it is extremely important for all types of traders to utilize and understand the dynamic behind the Larger Time Frames. It is very easy for us to get caught up in getting as much out of a trade as possible especially after a recent loss. However, knowing when it is necessary to cut our profits before they turn into losses will be the determining factor in your long-term success.