HOW TO ANALYZE YOUR FOREX CHARTS WITH JAPANESE CANDLESTICK SIGNALS & TREND LINES




Japanese Candlestick Signals and Trend Lines are very powerful tools when it comes to analyzing the Forex Market and predicting market direction. Nevertheless, it can be quite challenging to use them if you have become accustomed to using Statistical Indicators as part of your trading. 


However, this quick guide - which uses illustrations from the Trading Manual - will show you how it is done with the Daily Chart so that you can begin to Swing Trade the market with confidence and accuracy.














STEP 1 - CLEAN YOUR CHARTS


Clear your charts of all previous Trend Lines and other analytical tools. This will give you a fresh and clear perspective of what is taking place on the Currency Pair you are analyzing.




DAILY CHART - CAD CHF, OCTOBER 9, 2017 




STEP 2 - IDENTIFY SUPPORT/RESISTANCE POINTS



Since this is clearly an Uptrend, we will focus on identifying the major Support Points that have been formed along the way as part of this Bullish Trend.








As you would have noticed, not all "Low Points" were identified as being Support. This is because they did not meet 2 important criteria that help us to distinguish between market lows and Support (see Trading Manual).



STEP 3 - DRAW THE TREND LINES


Once we have the Support Points identified, we then need to use them to draw our Trend Lines. Trend Lines are important in allowing us to more clearly see the direction of the pair and to establish whether the existing trend direction is still holding.




To draw the Uptrend Lines, we draw the line below the Support Points identified. In doing so, we must ensure that the Lines are not drawn through Candlesticks that are between the latest Support Point and the most recent Resistance Point...







STEP 4 - IDENTIFY COUNTER TREND LINES


Counter Trend Lines are drawn across the Highs (in Uptrends) and Lows (in a Downtrend) of the Candles as the market pulls back temporarily. Breaks of these are used to signal the resumption of the trend and provide us with an Entry Signal...











STEP 5 - IDENTIFY CONSOLIDATIONS


These are also common chart patterns that can be formed as part of a trend. They can be either Ranges or Pennant Setups defined by their Resistance and Support Boundaries...












Breakouts from these patterns also indicate the resumption of the defined trend and provide entry opportunities to trade the pair.


THE COMMON MARKET TRAP!


Not only must we analyze the current market direction of the pair, but we must also take a wider view of the market by narrowing the candles. Many traders fail to do this and often ignore important factors that influence the current movements of the pair.







In doing this, we can now see that there is another Consolidation Pattern that must be taken into account...







STEP 6 - ANALY
ZE THE CURRENCY PAIR

Now that we have established the main elements of this chart, we then need to conduct a scenario analysis concerning what is happening and what is likely to take place in the days ahead.


Based on the chart, the pair formed the Uptrend as it rallied from the Support to break above the Resistance of the Large Pennant. The pair has now settled above this area following a pullback to the Resistance Line over the last few days...









What this means is that we will either see...


THE BULLISH SCENARIO

A Break above the Counter Trend Line to continue the Breakout from the Consolidation..


THE BEARISH SCENARIO

A continued reversal Short that breaks the Uptrend Line to start a Downtrend that takes us back to the Support of the Pennant...









STEP 7 - WAIT FOR THE CORRECT SIGNALS



Before trading, we must now wait for the pair to provide us with the right signals to trade either Bullish or Bearish. These signals can come in various forms and we must ensure that they meet the criteria required for these signals to ensure they are strong enough to justify trading them.







We will then also analyze the setup using the Trade Sheet to make sure that the trade meets the important criteria as highlighted in the Trading Manual and follow the Guidelines that will ensure trading discipline and success.




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Happy Trading

Your Mentor

Duane

DRFXTRADING

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THE 3-MONTH SERVICES





WHAT MAKES MY SERVICES DIFFERENT FROM THE REST?


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1. YOU WILL HAVE SPECIFIC RATE OF RETURN TRADING TARGETS
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Assumes an Average Risk of 3% Per Trade, trading just a few times per month. You may use the Risk Per Trade you prefer when applying my Trading Signals.


 These are Strong and Realistic Targets that will keep you Focused and Motivated.


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2. YOU WILL EXPERIENCE TRADING ACCURACY BEYOND THE COMPETITION
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 NZD CHF CONSOLIDATION BREAKOUT IN JANUARY 2015 



ACCURATE EXIT AHEAD OF THE SWISS NATIONAL BANK "SHOCKER" - JUST A FEW DAYS LATER
(See full description of this trade here New Year off to a Flying Start - 231 Pips & 194 Pips on NZD CHF Trade & more Financial Crisis trade results here 200 Pip Targets Still Hit During Financial Crisis )


 Candlestick Patterns accurately identify the best Trading Targets ahead of both Normal and Abnormal Market Reversals. 

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3. YOU WILL TAKE ADVANTAGE OF STRESS-FREE, INDICATOR-FREE SWING TRADING
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Instead of using Complicated Statistical Indicators or volatile Economic Data, the more reliable Japanese Candlestick Signals of the Daily and 4 Hour Charts are used to predict and trade the Weekly Direction of Currency Pairs.



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4. YOU WILL ENJOY TRADING WITH AN AGGRESSIVE 24-HOUR STRATEGY
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The Previous Conservative Strategy targeted 100 to 200 Pips of these movements per trade each month. This provided average annual returns of 40% in 2015 and 2016. 

Despite these great results, a more aggressive strategy is now being used beginning February 1st, 2018.



(Some Trades - where justified - will use larger Stop Losses)



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5. YOU WILL LEARN ABOUT THE WEEKLY RANGES OF CURRENCY PAIRS
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The First Step in Swing Trading the Forex with me is to accurately predict the Weekly Range Direction of the major Currency Pairs. 

All Currency Pairs have Weekly Ranges which is their average Exchange Rate Price Movements expressed in Pips over 5 to 7 Days. Trading is then done in this direction to capture our Pip Targets according to our Swing Trading Strategy.


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6. YOU WILL LEARN ABOUT TRENDS & THE PATTERNS THAT LEAD TO TREND CHANGES 

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Mastery of Downtrends, Uptrends and Trend Changes will be achieved with a detailed understanding of the Structure of these Market Patterns.


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7. YOU WILL LEARN HOW TO IDENTIFY CONSOLIDATION BOUNDARIES

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There are many schools of thought on how to draw Consolidation Support and Resistance Lines. However, the "Line of Best Fit" method is the only way to do this accurately. 


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8. YOU WILL LEARN HOW TO PREDICT & TRADE FALSE CONSOLIDATION BREAKOUTS 
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Instead of losing due to unexpected Consolidation Market Reversals, we can master and profit from them once we understand their Structure and the Candlestick Signals that start them.


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9. YOU WILL LEARN HOW TO PREDICT THE FORMATION OF CONSOLIDATIONS
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 Once we are able to spot the Bullish and Bearish Waves that form Consolidations, we can trade these waves for large Pip gains instead of waiting until they are completed.


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10. YOU WILL LEARN TRADING TECHNIQUES THAT HAVE WON CONTEST PRIZES 
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11. YOU WILL HAVE A MENTOR WITH A LIVE FOREX ACCOUNT 
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At 7.3% from just 2 trades in February 2018, only a few trades are left to hit the first target of 14% before moving on to the next major targets.


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12. YOU WILL ENJOY THE BENEFITS OF A PATIENT APPROACH TO TRADING SUCCESS
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ONE OF THE FREE VIDEO LESSONS AVAILABLE ON MY YOUTUBE CHANNEL & IN TRADING BLOGS
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WHO WILL BENEFIT THE MOST FROM THIS MENTORING SERVICE?
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Day Traders Looking to Switch to the Stability of the Higher Time Frames


Swing Traders looking for a New Trading Strategy


Japanese Candlestick Traders who want to further master these Powerful Trading Tools


Traders who no longer want to be Handcuffed to their Computers Every Day 


Traders patiently focused on their Long-Term Success from this Market


New Traders who want both the Foundation and Advanced Level Knowledge to Understand this Challenging Market 


New and Experienced Traders who want to Demo Trade to practice hitting Large Trading Targets before going/returning to Live Trading


Traders who accurately predict Market Direction but cannot decide on the right Pip Targets 


Traders who are annoyed at being Stopped Out too early only to see the market continue to their Initial Targets!


Traders who want to avoid the temptation of interfering with their Profitable Trades – that would have closed on their own at a Larger Profit had they not interfered! Yes I’m talking about you!


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GET STARTED ON YOUR JOURNEY TOWARDS TRADING SUCCESS TODAY
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THE 3-MONTH SERVICES




Standard Service includes the Trading Manual, Daily Video Lessons, Trading Signals & Daily Trade Support.

VIP Service includes the Standard Package & VIP Mentoring.



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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
Facebook: DRFXTRADING
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RISK DISCLOSURE

All the information provided in this blog and as part of my Services, including the Trading Manual, Video Lessons, Daily Trade Support and Skype Mentoring represent my opinions on the relationship between Japanese Candlestick Patterns on the Daily & 4 Hour Charts and Exchange Rate Movements.

Although I use this information to execute trades in the Forex Market using my personal funds via a Live Forex Account, the Trading Signals I provide represent what I am about to do on a Demo Account that I also have at FXCM where no money is used and therefore where no investment can take place.

I do not provide Investment Advice and therefore my Trading Signals and my opinions about the Forex are intented to be executed on Demo Accounts.

Essentially, I am a Live Account Forex Trader who teaches you how to trade on a Demo Account. You can then use your performance on your Demo Account to enter Demo Account Trading Contests to win prize money, apply for Trading Jobs or use it when consulting with a Licensed Investment Advisor to decide if trading on a Live Forex Account is appropriate for you.


TRADING IS NOT FOR EVERYONE. TRADING FOREX INVOLVES HIGH RISKS AND THE POTENTIAL TO LOSE ALL OF YOUR TRADING CAPITAL 

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. Before deciding to use my material on a Live Account, you should speak to a Licensed Investment Advisor, carefully consider your investment objectives, level of experience and risk appetite. You can lose all of your invested capital.

There is considerable exposure to risk in any off-exchange foreign exchange transaction, including, but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair.


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No information presented constitutes a recommendation by drfxtrading.blogspot.com to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy.

Any opinions, news, research, analyses, prices, or other information contained on this blog are provided as my opinion of how Exchange Rates move in accordance with Japanese Candlestick Patterns and do not constitute investment advice.
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You should NOT rely solely upon the information or opinions that you read on the blog or receive via my Services. Rather, you should use what you read and receive as a starting point for doing your own independent research, your own independent analysis, and refine your own trading methods before placing your money at risk.

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