DRFX FOREX SWING TRADING

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...

Many traders will now be wondering why the 2 strong Bullish Breakout attempts on this pair have been met by sharp Bearish reversals in favour of the USD? The Bull Candle Signals given on the Daily Chart appeared to be strong enough to justify entry and provide sharp EURO gains, yet on each occasion, the Bears took control aggressively to pull us back inside of the Pennant Setup. So are there explanations for these reversals that are all so common across the Forex Market or should we put them down to just being random movements? The Pennant Setup on the Daily Chart was formed by waves of Uptrends and Downtrends since June of this year. Within the last few weeks, we saw the first attempt to break out of this attempt with a strong Bull Candle at Resistance. However, this was followed up by sharp Bearish Candles that took the pair back inside of the Consolidation. DAILY CHART- FALSE BREAKOUT SIGNALS After only managing to reach half-way inside of the Pennant...

Last week, the EURO USD provided another example of how Consolidation Breakouts with Large Candles lead to False Breakouts -another "trap" set by the market. In the Daily Chart below taken from the Daily Market Update of Monday August 24, you can see the Large Candle that attempted to start the breakout above the Resistance of the Consolidation... However, as you can see in the note below the graph, I expected it to at least pause here before either moving sideways or reversing. A few days later, a sharp reversal took out that Bull Candle to start a False Breakout Reversal, taking us back inside of the Pennant... This reversal is due to the fact that these Large Candles- as attractive as they are -hardly lead to successful breakouts. Across the Currency Market these signals, as well as what are known as Weak Candles, are notorious for either leading to sideways, erratic moves or pullbacks. Traders who are not aware of this can get caugh...

The power of Price Action analysis is its capacity to predict the formation of major market patterns across all Time Frames. We can forecast movements that will take place the next day or even in the next few months and prepare our trading plans to take full advantage of them ahead of other traders. On Monday August 10th last week, the EURO USD was expected to provide a Bull Candle to indicate a Rally to the Resistance of a Pennant that was being formed. This Rally would complete the Support boundary and the Pennant Consolidation itself.  DAILY CHART- EURO USD    A pair of Double Bottoms were already given in addition to the the break of the Downtrend Line. This suggested that another Bull Signal would be given/needed to confirm the start of the move to Resistance and that a potential trading opportunity to go long was near. Two days later, this took place... DAILY CHART- EURO USD    ...a strong Bull Candle Signal that...