DRFX FOREX SWING TRADING

THE DYNAMIC RELATIONSHIP At the start of a trend on the Daily and 4 Hour Charts, one will notice a unique relationship between these charts that is also replicated on other time frames. For every candle seen on a Larger Time Frame, there is a setup and signal on a corresponding Lower Time Frame that led to that candle. Then, in a recursive manner, every candle on the Larger Time Frame that is going to lead to a trend, produces another setup and signal on the Lower Time Frame in response to that candle. To make this even more complicated, the time it takes for the Lower Time Frame to respond to that signal is approximately the same as the Larger Time Frame. This relationship takes place between all Higher Time Frames and Lower Time Frames that are directly linked to each other, from the Monthly Chart down to the 1 Minute Chart. Here are the pairs of time frames that are directly linked to each other that follow this pattern of setups and signals. LARGER & LOWE

OVERALL SCENARIO At End of a Major Uptrend; Broken Inner & Outer Trend Lines; Within a Large Pennant Consolidation; Possible Rally to Resistance; Likely Break of Support to Start Downtrend    CHART 1 - END OF MAJOR UPTREND POSSIBLE SHORT-TERM SCENARIOS Rally to Pennant Resistance after/without hitting Support; Break of Pennant Support to Start New Downtrend; CHART 2- PENNANT CONSOLIDATION  LONG-TERM SCENARIO Support Likely to be Broken; Major Uptrend has ended, Trend Lines Broken,Large Pennant Formed; This is the typical setup for a new, major Trend Change; ACTION RECOMMENDED Wait for Strong Bull Signal now or at Support to Trade to Resistance; Wait for Strong Bearish Break to start Downtrend; Aim for 100 - 200 Pips; RECENT EMAIL FROM CLIENT ____________________________________________________ SUBSCRIBE TODAY ____________________________________________________ US$

OVERALL SCENARIO Consolidation at end of Major Downtrend; Possible Start of Move to Outer Downtrend Line; Broke Resistance of Pennant;   Needs to Pullback to Start New Uptrend; CHART 1 - END OF DOWNTREND     CURRENT SCENARIO Pennant Broken; Candle Signal Too Large; Weekly Range Exceeded; CHART 2 - PENNANT BREAKOUT  ACTION STEPS Wait for a Pullback/Small Consolidation; Wait for another Strong Bull Signal to Start New Weekly Range; Enter Based on Daily Signal or 4H Chart Signal; Aim for 200 Pips; RECENT EMAIL FROM CLIENT ____________________________________________________ SUBSCRIBE TODAY ____________________________________________________ US$120.00 Free     ___________________________________________ Duane Shepherd  ( M.Sc. Economics, B.Sc. Management and Economics) Currency Analyst/Trader Contact: shepherdduane@gmail.com Twitt

As part of my Day Trading arsenal a few months ago, I used to go after 100 Pip movements using the 30 Minute Charts, exiting within 24 to 36 Hours. The Daily and 4 Hour Charts were used to provide the major setup while the patterns and breakout signals on the 30 Minute Charts were used for Stop Losses, Entry and Targets.  This worked for awhile with moderate results, but the weight of the negative habits and difficulties of smaller time frame trading eventually took their toll on this strategy, shortening its lifespan. This was one of several failed strategies that eventually led to the more profitable strategy on the higher time frames that I now trade and promote. Take a look at this 100-Pip strategy and let me know if you could have continued with it or improved on it in anyway. These were the main aspects of the strategy. Wait on the Daily Chart to give Signal/Direction; Wait on the 4 Hour Chart to provide a Setup; Enter at the 30 Minute Signal that breaks the 4H Setup

A set of bearish candles have broken the Support of the Daily Chart`s Pennant to indicate a potential move lower by 200 Pips. The targets would be the Breakout Equivalent (BE) and the Weekly Range (WR) which are within a few pips of each other. However, the size of the candles given are too small relative to what we expect from Breakout Signals and the ones that normally lead to the start of profitable trends. FIGURE 1- EURO AUD DAILY CHART The downtrend is strong with Inner and Outer Downtrend Lines keeping the trend in place, giving it a high chance of continuing lower in favour of the Aussie. But the signals given to continue the trend have been weak, giving it a very low probability of actually hitting the BE and WR targets. FIGURE 2- EURO AUD DAILY CHART Breakout signals need to be strong enough to justify entry. If they are too weak, the trend can become volatile, reverse or move sideways. Eve

After what seemed like an eternity, we have finally got what appears to be a meaningful signal from the EURO USD that could indicate the start of a profitable trend. The pair had been meandering sideways for months above the Resistance of a major Monthly Pennant, forming a smaller Pennant on the Daily Chart in the process. Having formed an even smaller Pennant at the Weekly Range following the break of Support of that Pennant, a strong Bearish Candle Signal has now appeared. Although this might represent the start of further USD gains in the months ahead, a closer look at the price targets indicates the potential for short-term volatility that should be avoided. A look at the first chart shows the large Monthly Pennant that this pair has been in since the end of the sharp gains for the USD in 2008. We can also see the current area of price congestion above the Resistance of this Consolidation and the Inner & Outer Uptrend Lines. DAILY CHART- MONTHLY PENNANT