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Showing posts from December, 2014

74 PIPS FROM EURO CAD PROVIDES A 27% RETURN AND 567 PIPS FROM 9 TRADES

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EURO CAD provided us with a smaller-than-expected but positive result on Tuesday, due to the lower liquidity conditions of the Christmas Holidays. Our original target of 150 Pips could not be met under these circumstances, requiring us to exit for 74 Pips at the end of our specified Holding Period. Nevertheless, the strong gain had a significant influence on our overall Rate of Return, which now stands at 27.4% since July of this year. With over 500 Pips from only 9 trades, we are only 3 trades away from the 1000 Pip mark and a 50% Rate of Return. After meeting this short-term target, we would then need only 4 more trades for a remarkable return of 100%. This pair began to decline following a False Breakout Reversal at the Resistance of the Range on the Daily Chart. As with all False Breakouts, a move to the end of the boundary was expected. DAILY CHART FXCM used for Entry Signal based on the New York Close Candle The move was also taking place wit

TRANSITIONING FROM DAY TRADING TO SWING TRADING

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Forex Trading has become a very popular means of earning income by individuals all around the world, ever since the market was opened up for Retail Trading several years ago. Those who have been successful in this challenging market have done so by Scalping, Day Trading or Swing Trading the major Currency Pairs each month, with a wide range of trading strategies. As lucrative as Scalping and Day Trading have proven to be for most of these traders, many have chosen to move away from these shorter term strategies in favour of the larger trends of Swing Trading. This style of trading is not as aggressive nor as exciting as the other strategies, but provides less exposure to market volatility and is a flexible, practical option for those with a non-Forex full-time job. Despite the intention to trade the market with this new approach, however, many have found the transition very difficult given the new way of thinking that successful Swing Trading demands. The previous habit of analyz

GBP CAD FORMING LARGER RANGE?

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GBP CAD appears to be forming a larger Range Setup than the one previously traded. This could provide a larger range of Pips to target if we see a strong Bearish Signal in the next few days.  This was the previous setup. It had formed a Range Setup that was initially broken short, but was followed by a sharp, False Breakout Reversal.  This took it to the Resistance area where it began to pullback by a few pips. DAILY CHART - REVERSAL SIGNAL With this setup, it would have been expected to either break out at the other end of the Range to continue long, or come back inside to continue within the Range (Figures 36 & 37, Currency Trading With the Daily & 4 Hour Charts ).  H owever, after re-examining this chart, it appears that the Double Bottoms and the rally may actually have formed the Support for a larger Range. DAILY CHART- LARGER RANGE? If we see a strong and convincing setup and signal below this Uptrend Line, it will start this move to Support. A

MAJOR BREAKOUT TO CONTINUE ON CHF JPY

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Following the start of a sharp Bullish breakout from its large Pennant Consolidation, this pair has taken a bit of a pause before it resumes the sharp rate of gains for the Swiss Franc. This pause in the breakout is what I refer to as the Mid Point of the Breakout. It is where the pair will form a smaller pattern of Consolidation such as a Pennant or Range before continuing to the major target of the Breakout Equivalent. Whenever Consolidation patterns are broken, they will ultimately go to this Breakout Equivalent target before either pausing for a very long time or reversing all together. This concept can be seen across all time frames and for both Ranges and Pennant Consolidations. The accurate measurement of this target helps traders to confidently identify their Limit Orders in their trade setups without the need to monitor the trade for signs of pullbacks. One can confidently leave the trade to move towards this area knowing that this target will be hit 95% of time once ident

3-WAVE RULE DENIES BEARS ON CAD CHF

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What looked like a promising bearish breakout has now turned Bullish with a sharp U-Turn that appears to have come out of thin air. However, based on our 3-Wave Rule of market trends, this pullback was always expected at some point in time. Daily Chart below shows the strong Bull Candle that is now heading back to the broken Support barrier. DAILY CHART The cause of this reversal was the trend on the 4 Hour Chart. Several waves of bearish setups had led to that Daily Bearish Signal that broke the Range Support. However, pullbacks such as these are always to be expected to take place, making a short position an unwise one. 4 HOUR CHART This technical aspect of trends can be seen across the Forex Market on all time frames. If there are several of these waves on a lower time frame, the immediate higher time frame will eventually pullback sharply. In situations like these, we will either see a continuation of this rally that takes us

199 PIPS ON GBP CAD TRADE PUSHES RETURN UP TO 22%

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The Swing Trading Methodology continues to produce results with the most recent gain of 199 Pips on the GBP CAD. This brings the overall return from the strategy to 22% since it was launched in July, from only 8 trades. As it stands, clients are now only 8 trades away from a return of 100%, which is likely to be reached in the first four months of 2015. The Demo Account, which lags the Live Account by just 3 trades, is now up 17% since it was opened in October. The R ange Consolidation on the Daily Chart of this pair was initially broken short a few days ago, indicating the potential start of a sharp bearish breakout. However, given that the pair had already provided 3-Waves of Bearish Signals in breaking the Support boundary, a bullish pullback was always expected. DAILY CHART This reversal began a few days later with the appearance of Bullish Signals and a break of the Downtrend Line. DAILY CHART At this juncture, there were two possible scen