MAJOR NZD JPY REVERSAL AS PREDICTED - 10 DAYS AGO



The sharp gains in favour of the Japanese Yen against the New Zealand Dollar in the last several days were accurately predicted within the last 2 weeks. Based on the Theories of False Consolidation Breakouts and the patterns that predict the Formation of Large Consolidations from the Trading Manual...









....I was able to predict the start of this Reversal...






REVERSAL PREDICTION

DAILY CHART 




VIDEO ANALYSIS







....with tremendous accuracy...





DAILY CHART




VIDEO ANALYSIS





This reversal highlighted both the accuracy of the predictions as well as the dangers of trading on the Lower Time Frames, where you can easily miss the start of reversals that are determined by the Larger Time Frames.


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1. FALSE CONSOLIDATION BREAKOUTS



This was the first reason to expect the market to reverse bearish in favour of the JPY. Despite the fact that there was a breakout above Resistance with a Strong Bull Candle, the pair was about to hit a major Resistance Price Point, which is one of three main Market Factors that usually lead to these types of pullbacks.



If one or more of these 3 factors (see Trading Manual) are present, you will generally see the market head back inside of the Consolidation. This can take many forms as illustrated below from the Trading Manual....


















Therefore, given the significance of the Resistance Point that was hit, it was expected that the market would respond by pulling back...




DAILY CHART- MAJOR RESISTANCE HIT




DAILY CHART - CONSOLIDATION BREAKOUT ATTEMPT





2. WAVES THAT LEAD TO THE FORMATION OF CONSOLIDATIONS




The 2nd Market Factor that indicated the start of a reversal relates to the Bullish and Bearish Waves that form Consolidations. As you can see in the graph below from the Trading Manual, once the market has formed 2 Consecutive, Sharp & Opposing Bull and Bear Trends, they usually lead to a Consolidation Setup.








As you can see below, these were the same types of waves already formed on the Daily Chart, indicating that a reversal to create a 3rd Wave was likely...





DAILY CHART- WAVES FORMING CONSOLIDATION







...from the chart below, you can now this predicted Consolidation and Wave now taking shape ...





DAILY CHART- 3RD WAVE BEING FORMED




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SO HOW CAN YOU USE THIS INFORMATION AS A TRADER?
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1. EASILY AVOID MARKET REVERSALS


As a DRFX Trader focusing solely on the Larger Charts, you will be able to spot these major market pullbacks well ahead of Day Traders. You can identify where they will take place and position yourself to take advantage of them.



2. STOP BLAMING BROKERS AND CONSPIRACY THEORIES FOR LOSSES



Once you trade on the 4 Hour and Daily Charts, you can no longer use the excuse that there are crooked brokers and powerful persons determined to empty your account. These reversals do not appear of out of nowhere. There a are clear, Technical Factors that are responsible for 95% of what takes place. Once you are aware of them, you will be on the right side of the market.





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Your Mentor



Duane Shepherd
(M.Sc. Economics, B.Sc. Management and Economics)
Currency Analyst/Trader
shepherdduane@gmail.com /(876)-3825648
Twitter: @WorldWide876
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