148 PIPS AUD USD- 2 WEEKS, 2 TRADES, 218 PIPS

This latest trade based on our Price Action, Swing Trading Methodology provided 148 Pips on the Aussie Dollar over a short 4-day period. This took our total gain to 218 Pips in 2 weeks following the 70-Pip trade on the AUD NZD pair at the start of the month. At this rate, we could see a triple digit rate of return for 2014 when these results are combined with previous setups identified by the Methodology. It would also provide further evidence of the stability and higher returns that are possible when trading is done on the Larger Time Frames.

The AUD NZD gain took place following a break of a large Consolidation setup on the Daily Chart. The signal to enter came from a Bullish Candle break of a Range at the Resistance of this large Pennant.


AUD NZD -DAILY CHART SETUP



















AUD NZD- DAILY CHART SIGNAL

 















TRADE RESULT - LIVE ACCOUNT























The chart patterns and candles from FXCM are used to identify the entry signals while the Dukascopy platform is used for trades on the Live Account. The Methodology utilizes the New York Candle close of the Daily Chart as the basis for the Price Action strategy, which is best provided by FXCM.

The AUD NZD was one of the last pairs that saw gains for the Aussie dollar this month. Since then, the currency began to lose value against several of the other major currencies over the last few days.  It was within this context that the AUD USD trade opportunity presented itself on Thursday September 11, 2014.

The setup was a bearish break of a large Pennant formed between April and September this year.


AUD USD - DAILY CHART PENNANT



The size of the Consolidation suggested that a breakout could continue for several hundred pips in favour of the US Dollar in the months ahead. However, based on our strategy and a specific technical aspect of this setup, a short-term gain of between 100 and 200 Pips was the more prudent decision.

Entry took place at the third candle that broke the Consolidation with the target set based on the criteria established for this type of breakout. The Stop Loss was also placed at a strategy-determined area to prevent the trade from being affected by spikes along the way.


DAILY CHART TRADE SETUP

















After only a few days, the target was hit. Towards the end of the trend, the market actually reversed to the entry price with a Bullish Candlestick Formation. However, a large Bearish Candle shortly followed to take out that attempted reversal and give us our reward.


TRADE RESULT 

 














LIVE ACCOUNT RESULT























TRADE SUMMARY

TRADE TYPE
CONSOLIDATION BREAKOUT
STOP LOSS
116 PIPS
TRADE RESULT
148 PIPS
TIME TO TARGET
4 DAYS
 

This trend was always expected to provide large gains for the trader in a short time since breakouts from Consolidations always produce sharp movements. In fact, it only took 2 days for the 100-Pip mark to be reached. 


DAILY CHART -100 PIPS IN 2 DAYS


















Nevertheless, if the trader was looking at the Pip count or the Account Balance on their trading platform, chances are he/she would have started to panic and exit at the start of the bullish reversal to the entry price. If trading was also being done on the 30 Minute Chart, that sharp bullish signal combined with the Trend Line break and the Double Bottoms may have even convinced the trader to start going Long.


30 MINUTE CHART- REVERSAL SIGNALS


















The net result would have been a much smaller profit compared to that which was offered by the market. Constantly monitoring the trade and using the Smaller Time Frames will always tempt us to make decisions based on emotions and our ego despite our best intentions. Trades that are objectively analyzed and executed can be easily sabotaged by the desire to always know what is happening with the trade.

Nevertheless, this habit is understandable and expected especially if you are transitioning to the Larger Time Frames. Most of us have been taught by trading companies and brokers to trade in a way that requires us to develop this and other bad habits. We have been led to believe that trading has to be done every hour and every day in order to be profitable. This frame of mind will always lead to certain practices that generate an impatient temperament in us and cause us to constantly make unwise trade decisions. The best thing to do is to persist until these habits are no longer a part of your trading. 

Alternately, one could open up a separate Demo Account, practice trading on the Daily and 4 Hour Charts and compare the results with an existing strategy on the lower charts. Over time, you will see the large difference in profitability and appreciate how unnecessary it is to monitor the trade. This can be done using the detailed Trade Setups that are emailed to you as a Subscriber.


TRADE SETUP-  AUD USD

PAIR
AUD USD
TRADE TYPE
CONSOLIDATION BREAKOUT
ENTRY DATE
TODAY, SEPTEMBER 11, 2014
ENTRY TIME
21 00 GMT


ENTRY PRICE (MINIMUM)
0,9096
STOP LOSS
0,9216
LIMIT ORDER
0,8952


HOLDING PERIOD / FINAL DAY
5 DAYS-  THURSDAY SEPTEMBER 18
DAILY TIME CHECK
21 00 GMT
  

Without even reading the Trading Manual, you can become a Subscriber with the code at the end of the book and benefit from these setups sent 30 Minutes before entry. In addition to this, you will also be able to receive;

  • Daily Analysis of Currency Pairs;
  • Weekly Technical Analysis on Specific Topics; 
  • Detailed Explanations of Trade Results;
  • A Currency Trading Experience focused entirely on Making Money;




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Duane Shepherd 
(M.Sc. Economics, B.Sc. Management and Economics)
Currency Analyst/Trader
Contact: shepherdduane@gmail.com
Twitter: @WorldWide876
Facebook: DRFXTRADING 

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