DRFX FOREX SWING TRADING

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...

Given the strong positive correlation between the AUD USD and the NZD USD, the NZD USD could resume its bearish trend following the recent decline of the Aussie Dollar by nearly 600 Pips. The Aussie Dollar has been steadily declining over the last several days after breaking the Support of the very large Pennant setup. DAILY CHART- AUD USD In  breaking out of this Pennant, the pair broke a smaller Pennant and a Counter Trend Line that tested the Support before starting the breakout. DAILY CHART-AUD USD Whenever large Consolidations are being broken, they normally form these smaller setups at Resistance and Support which "test" the strength of these boundaries before breaking out. For its part, the Kiwi Dollar has also formed a small Pennant at the Support of its large Pennant as well, but has not yet provided us with a breakout signal. DAILY CHART- NZD USD DAILY CHART- NZD USD ...

This trade was intended to take advantage of a sharp breakout short from a Pennant Consolidation, with the target set for its Breakout Equivalent.  All Consolidations have Breakout Equivalents (B.E.) - it is the area that they break towards before pulling back. They will either pause here to then resume the trend or become volatile and reverse. Nevertheless, once spotted and measured accurately, one should either be exiting your trades there (see the AUD USD 148 Pip Trade and the AUD NZD 70 Pip Trade ) or avoiding entries at these areas altogether. In this instance, the pair had already broken out from a previous Range and was now breaking a Pennant.  DAILY CHART - AUD CAD (FXCM Charts used for Trade Signals- Dukascopy used for Live Trades) Based on the way I had originally measured the B.E. for this Range, it would not be hit until a few hundred pips. However after analyzing the chart again for confirmation that my Entry Setup was correct, I realized the er...

After starting what appeared to be a strong Bearish breakout from its Consolidation setup this week, this pair has now started to pull back sharply Bullish, much to the chagrin of Currency Traders. As surprising as this may have been to some, there was a key Technical Factor at work that was always going to have a hand in this reversal that my traders were aware of - the 3-Wave Rule of trends in the Currency Market. There are generally two types of trends that are seen in this market. They will either be sharp and fast with very few pullbacks or slow and steady with waves of U-Turns along the way. Whenever they take the form of waves as was the case in this Range breakout, they will usually pullback and reverse after 3 of these waves are completed. Following this, the pair will either take a break before resuming the trend or start a new trend in the opposite direction ( Section 9 - “Consolidation Trading on the Forex Market - A Complete System for Illiquid Market Conditions”) . ...