DRFX FOREX SWING TRADING

This successful trade took advantage of the sharp False Breakout Reversal from the Pennant Consolidation on the Daily Chart that started on December 3, 2015. As with all of these types of setups, the initial breakout attempt was quickly taken out by a strong, opposing signal that led to a breakout at the other end of the Consolidation. Given that this setup was in sync with the theory of False Breakouts that is outlined on Page 54 of the Trading Manual, the trade provided a strong gain of 140 Pips. The graph below shows one of the examples of False Breakouts that are explained in detail in the Manual. FALSE BREAKOUT SETUPS As you can see from the Daily Chart of the GBP CAD below, the setup was almost exactly the same as the one above.  DAILY CHART FALSE BREAKOUT PENNANT SETUP (FXCM Charts used to provide Entry Signals based on the New York Candle Close of the Daily Chart) Following the Bear Candle that attempted a breakout at Support, the bu...

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...

Last month, the EURO JPY and CHF JPY pairs broke their respective Consolidation Setups on their Daily Charts to start downtrends in favour of the Japanese Yen. This was expected to provide several hundreds of Pips in gains for traders over several weeks given the size of the Consolidations that were broken. However, although the CHF JPY did move by over 200 Pips (providing us with a 101-Pip gain), the EURO JPY only provided us with just under 50 Pips in profits before pulling back.  Nevertheless, despite the combined profitability of these trades being lower than expected, the sharp 400-Pip reversals that took place highlighted the accuracy of the Holding Periods used for these Swing Trading Strategies. EURO JPY TRADE A target of 172 Pips was initially set to be captured from the Pennant breakout below its Support boundary. However, due partly to the lack of market activity during the Thanksgiving holiday period, the trade was only up by 47 Pips at the end...

This is my general guide to getting started in the Forex Market so that you are able  to stay focused from the beginning. Often times traders jump into this market without any clear goals defined which leads to only moderate levels of success that can take an unnecessary amount of time and experimentation. Once you know your goals and how to get to them, you will reach your goals in a much shorter time with fewer setbacks along the way. 1- DETERMINE HOW MUCH MONEY YOU WANT FROM FOREX TRADING Many times people jump into Forex Trading without knowing what they want from it. This then leads to experimentation for a longer time than is necessary and with the 1000s of strategies out there, you can easily get lost and frustrated. 2 - FIND OUT WHICH METHODOLOGY/STYLE OF TRADING CAN GET YOU THAN MONETARY TARGET If there is a strategy out there that can get you what you are looking for, there is no need to reinvent the wheel. If there isn't one, then develop ...

If so, my advice is to ensure you have a Trading Plan Trade Sheet. I used to be nervous too especially trading smaller time frames. These move very quickly and the minute you enter a trade, there is a possibility to lose very quickly - not a nice feeling. You get a lot of unnecessary tension and nerves. This is one of the many reasons I and others switched to the larger time frames and Swing Trading. Nevertheless, whatever time frame you use, get a Trade Sheet that has rules and checklists to justify each trade. I found that whenever I traded without this, I would be unsure if I had taken everything into account before clicking that button. This uncertainty creates anxiety and fear. If you have a Trade Sheet that you know will provide you with a good trade 80-90% of the time, you will be more confident. It gives you a visual confirmation that you are making the right decision and that everything has been accounted for. These are examples of the Trade Sheets checkli...

A Large Range Setup appears to be forming on the Daily Chart of the NZD CAD that could offer us up to 255 Pips this week. The Support Boundary has already been formed at the 0,8335 area and once we see continued gains for the CAD, this will take us back to Support and complete the Resistance Boundary and the Range. The overall setup can be seen in the graph below. The pattern of movements that have taken place in the last few months appears to indicate the formation of this large Consolidation in the days ahead. POSSIBLE RANGE SETUP - DAILY CHART If the pair continues to decline in the next few days, the Resistance Boundary would be formed at 0,8855 to complement the Support area at 0,8335. RESISTANCE & SUPPORT BOUNDARIES - DAILY CHART With a distance of 255 Pips from the current market price to the Support area, Swing Traders could realize a large trading gain once the pair gets going again. This would follow the current sideways movement now...