138 PIPS ON GBP USD AS USD STRENGTHENS ACROSS THE FOREX MARKET - forex trading system mt4

138 PIPS ON GBP USD AS USD STRENGTHENS ACROSS THE FOREX MARKET ~ forex trading system mt4

This latest trade took advantage of the Bearish Consolidation Breakout on the Daily Chart of the GBP USD which started in the last week of December. It provided a gain of 138 Pips within 4 days, just ahead of the pullback that is now taking place. Entry was based on the Daily Charts Bearish Candlestick Signals as well as the setup on the 4 Hour Chart.

The first video below shows the description and analysis of the Daily and 4 Hour Charts before the trade was made. 

Trade Setup Video

This video shows the trade result and provides a detailed analysis of the main elements behind the breakout.

Trade Result Video

The Daily Chart below shows the Pennant Setup and Candlestick Signals that started and continued the breakout below the Support boundary. The target was set to the Breakout Equivalent (see Trading Manual & Video above) of the previous Consolidation at 1,4562.

DAILY CHART TRADE SETUP

(FXCM Charts used for Entry Signals based on the New York Close of the Daily Candle)

After analyzing the Setup on the 4 Hour Chart and being satisfied that it met the requirements for the trade, an Entry Order was set. Within 4 Days, the trading target was hit.

DAILY CHART TRADE RESULT

(Dukascopy Charts used for actual trades)

The Breakout Equivalent is the target to which Consolidations head towards before pulling back. It is therefore the best area to exit when it comes to these types of trades. This is being confirmed by the pullback now taking place on the 1 Hour Chart with a Tweezer Bottom - a common Candlestick Signal that leads to reversals.

TWEEZER BOTTOM RALLY 1 HOUR CHART

TRADE SUMMARY

Identifying Consolidation Setups and entering at the right time can be the easier parts of these trades. However, deciding where to exit is a common dilemma. By being able to accurately spot these pullback areas that are associated with Consolidations ahead of time, we can take the guess work out of where to take profit when it comes to these popular but challenging setups.

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Can a trader be a do gooder - best forex trading strategy videos

Can a trader be a do gooder ~ best forex trading strategy videos

It occurs to me that the only way in which a trader can become more than a completely selfish, self-enriching, narcissistic person is to trade well enough so that you can manage other peoples money and thus saving these investors from crooks and charlatans (provided you are convinced you are not a crook and charlatan yourself).

Other traders have advanced other arguments in favor of trading. But I am not convinced by them.

They say that we provide liquidity to other long-term investors who may need to liquidate their investments. But then, this applies only to mean-reversal strategies. Momentum strategies take away liquidity from the market, and in some cases exacerbating price bubbles. Certainly not something your grandma would approve.

Others argue that momentum strategies help disseminate information about companies through quick price movements. But cant we just watch Bloomberg or CNBC? Do we really need some devious insiders to convey that information to the rest of us through price movements?

No, I think that independent trading should serve only one purpose (besides short-term self-sustenance): as training and preparation to become a fund manager. Once you graduated from independent trading, you then enter into the grand contest among all fund managers to see who can best serve and protect investors assets, (and be rewarded according to your standing in this contest.)

I know, this is the idealistic way to look at things. Serving and protecting seem to be what policemen should be doing, not traders. But as in quantitative trading, I think it helps one becomes more successful in ones activities by having a simple guiding principle or model. And it doesnt hurt that in this case, the principle would also be conscience-nourishing!
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SUMMARY OF 35 RATE OF RETURN - mbfx forex trading system v2.0

SUMMARY OF 35 RATE OF RETURN ~ mbfx forex trading system v2.0

The last 13 Months have proven to be both challenging and rewarding with this new Price Action Swing Trading Methodology. Transitioning from Day Trading to Swing Trading is very difficult especially if you - like myself- have spent most of your trading years glued to the computer screen in search of immediate gains each day, only to be constantly disappointed. Swing Trading solves most of the problems associated with Day Trading and provides a more solid foundation upon which to establish a viable source of Long-Term Wealth.

THE PERFORMANCE

The Trade Setup Service, which was started on July 1, 2014, involves providing detailed trade information on trading opportunities on the Daily and 4 Hour Charts for Subscribers to trade on their personal accounts. Assuming a level of risk of 5% per trade, a Subscriber would now have generated a Rate of Return equivalent to 35%-from 15 Trades. This has come from 9 winning trades and 6 losses.

RATE OF RETURN

JULY 1, 2014 - JULY 23, 2015

At this current rate of growth, this Subscriber would now only need 6 more trades to achieve a remarkable Rate of Return of 100%. 

100% RATE OF RETURN IN 3 MONTHS

         (Assumes an Average Risk & Gain of 105 Pips and 150 Pips, respectively)

By continuing to trade the Currency Markets with this unique Methodology, you too will be able to attain your major Short to Long-Term Monetary Goals. 

THE STRATEGY

FXCM Charts are used to provide the entry signals from the Daily Chart, as this platform uses the New York Close Candle of the Daily Chart - crucial to this Price Action Methodology. Stop Losses range from 90 and 120 Pips, depending on the time frame used, while the targeted Pips Per Trade is between 100 to 200 Pips. Targeting fewer than 100 Pips exposes your trades to the more volatile, lower probability setups while aiming above 200 Pips risks pullbacks that take away your gains.

Trades are usually held for a few days, with the actual number of days depending on the individual trade. This holding period acts as an anchor that controls our greed so that we do not hold out for more than the market is offering. Based on this rule, some of these trades have had to be closed earlier than planned if they had not reached their targets on the last day of the holding period.

THE TRADES 

Following a somewhat shaky start with the initial 100 Pip loss on the AUD USD, the Methodology was able to recover with consistent gains in subsequent months. These included the AUD NZD, the AUD USD and the GBP CAD.

AUD NZD TRADE - 69 PIPS

AUD USD TRADE - 148 PIPS

GBP CAD TRADE - 199 PIPS

The AUD NZD trade was an example of a trade that had to be closed early. The original target of over 100 Pips was expected to be hit within the allotted time, especially since we were breaking out from a Consolidation. However, even though I believed that this was going to go higher, I had to closed the trade in order to comply with my rule. As you can appreciate from that pullback below the Trend Line, this was the correct decision - a difficult one after an initial loss, but a necessary one.

The AUD USD trade was a prime example of the discipline and patience demanded of us in order to be successful Swing Traders. As you can see from the graph, there was a sharp pullback bullish that took the trade right back to the Entry Price just before it U-Turned to hit our target. Had we been constantly monitoring the trade as we used to do as Day Traders, we would have began to panic and second-guess ourselves tempting us to close the trade for a small gain. After all, a small gain is always better than a loss any day of the week. However....

If a trade is going to be successful, it has to be allowed to move according to the natural waves of the market. Ideally, we want our trades to move quickly to our targets - as was the case with the GBP CAD above - but the reality is that the market does not always move on our schedule. In order for winning trades to captured, therefore, we must not interfere with the natural dynamic of the market.

It is for this reason that I have included in the Trade Setup sent to Subscribers, the Guideline of never monitoring a trade while it is in motion.

Configure your trading platform so that you only see that the trade is still open without seeing the actual graph, floating balance or account balance. This is a crucial safeguard required to keep our emotions out of the picture.

As with all strategies, there are periods of losing streaks that have to be faced before we can continue towards our targets. The last three trades have led to losses with the latest one coming from the GBP USD. Although these periods are challenging, they are easier to face and overcome compared to Day Trading. This is because the time in between Swing Trades is sufficient to allow us to objectively analyze these trades and regain our composure and objectivity ahead of the next opportunity.

With Day Trading, we believed we could not afford to sit back because there was always another trade within a few hours that could erase the losing ones and make us "feel better". This left little time to ensure that the next trade was not hastily and emotionally taken in order get quick "revenge" on the market and the brokers.

SUMMARY

If Long-Term Wealth is your goal, then Swing Trading the Currency Market will definitely help you along this journey. We have been made to believe that things need to happen immediately and that waiting patiently for anything is the greatest sin of all. Rome was not built in a day and neither is significant Financial Independence. The Forex Market is a very attractive market to trade but where is stated that the only way to benefit from it is to trade it every day or whenever we want?

By trading only twice per month and thereby minimizing your exposure to this dangerous market, that 35% Return is comparable to most conservative investments instruments. Even if you decided to risk only 2% Per Trade, you would have still earned a significant return of 14%...

RATE OF RETURN AT 2% RISK PER TRADE

In either case, you would be right up there with the best in the industry...

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How does the financial crisis affect quantitative trading - forex trading system 96 percent winners

How does the financial crisis affect quantitative trading ~ forex trading system 96 percent winners

Now that we are reasonably sure the financial world is not coming to an end yet, it is reasonable to ask how quantitative strategies have been faring under this extreme market stress. Despite reports of massive hedge fund deleveraging and negative YTD returns, I believe quantitative strategies, especially statistical arbitrage, have survived the period relatively unscathed. But here are a few of my thoughts:

1) The paltry 10% annual returns that a mediocre statarb fund can deliver is suddenly looking pretty good when the risk-free rate is under 1% and a prolonged bear market is on the horizon.

2) Mean-reversal models continue to beat momentum models in this crisis environment, as in previous crisis environments. This is not surprising because market returns have completely dominated specific returns, and of course market returns have been highly mean-reverting lately.

3) Models involving shorts are under some tumoil because of regime-change induced by new and ever-changing short-sale regulations. (For a while, I even have difficulties locating SPY for hedging purposes!)

4) Models are generally trained on data with far lower volatility than is recently realized. (Even incorporting VIX in a model does not guarantee that it can match realized volatility any better.)
As a result, P&Ls fluctuations are also much higher than usual, which induces deleveraging as a risk-management measure, which drains liquidity from the market, which in turn leads to still higher volatility. The usual viscious cycle.

5) Political risks in an election year have further reduced leverage and increased volatility. What if there is an assassination? What if the wrong party got elected? What if the paper-trailess electronic voting machines cause another dispute for a month? The nightmares will continue at least until the morning of Nov 5.

6) Normally, lack of liquidity in the market is good for statarb models since they profit from renting out temporary liquidity. However, this profitability assumes that there are buyers of last resort for the market: the long-term investors, the mutual funds, Warren Buffet, etc. When they are absent, statarb investors can be left holding the bag. Fortunately, Warren Buffet & Co. has indeed stepped in and we statarb traders can breathe a sigh of relief.

7) I have been paying particular attention to 3 websites since the crisis began in order to judge whether I should return to my normal leverage: the Ted spread (I am waiting for it to return to below 2), the Calculated Risk blog, and Paul Krugmans blog. This crisis is caused by panic in the credit market, so we should look for credit market returning to normal before declaring victory. The VIX? Not so much because I believe it is backward-looking in this environment.

8) Watching Fannie, Freddie, Lehman, AIG, WaMu, Wachovia, Iceland, and the initial bailout bill failed feels like reading Chapter 8 of Harry Potter and the Deathly Hallows: "The Ministry has fallen. Scrimgeour is dead. They are coming." The Dark Lord is taking over our economy.
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Statistical electoral vote predictor Update - forex trading system price action

Statistical electoral vote predictor Update ~ forex trading system price action

For readers who have been tracking the Gott and Colley presidential electoral vote prediction, they will notice a sudden switch over to a predicted Obama victory in the last few days. That is because polls from OH, VA and MO are now available -- surprising because the 3 states are not hitherto known for their Democratic leanings.

It seems to me that, after all, the stability of prediction at this early date is quite questionable due to the paucity of state polls, a point already made by Dr. Colley.
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GBP USD CLOSE TO WEEKLY RANGE - forex trading system rules

GBP USD CLOSE TO WEEKLY RANGE ~ forex trading system rules

The GBP USD has been moving in step with the EURO USD as both pairs decline in sync with strong gains for the Greenback across the Forex market.  Similar to the EURO USD, the Sterling pair is closing in on its Weekly Range target which lies only 120 pips away. When that area is hit in the next few days, we could see a temporary pullback or consolidation take place before the downtrend continues. On the other hand, the slow and staggered nature of the downtrend also points to the possibility of a large Range being formed in the months ahead.

Daily Chart below shows that the pair is very close to hitting its first Weekly Range target of the new downtrend.

DAILY CHART

Within a very short time after hitting this price area, we could see one of two alternate scenarios unfolding.

SCENARIO 1

• A Pullback/Small Consolidation;
• New Bearish Signal to Continue Downtrend;

If the downtrend is going to continue in the next few weeks, we could either have a temporary pullback or a small consolidation being formed. This will then give way to another bearish signal to resume the existing trend direction.

DAILY CHART

  

After resuming the trend, the currency pair will decline until the 2nd Weekly Range Target is hit.

SCENARIO 2

• A Rally that starts a Consolidation;

The slow nature of the downtrend suggests that a Consolidation could also be formed over the next few months. If this is going to take the form of a Range, then the Weekly Range target that will be hit would represent the Support boundary of that Range.

DAILY CHART

 

Only time and traders will show us what actually transpires in the next few days. However, given the manner in which currency pairs behave based on the types of candles and their Weekly Range, these are likely to be the scenarios to look out for going forward.

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Duane Shepherd 

(M.Sc. Economics, B.Sc. Management and Economics)

Currency Analyst/Trader

Contact: shepherdduane@gmail.com

Twitter: @WorldWide876

Facebook: DRFXTRADING 

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Pairs Trading Workshop in Hong Kong - forex trading trendline strategy

Pairs Trading Workshop in Hong Kong ~ forex trading trendline strategy

For my readers in Asia, I will be conducting a pairs trading workshop in Hong Kong on March 10-11. This workshop is organized by the Technical Analyst magazine and is similar to the one I gave in London last year.
However, I have added a few useful insights based on audience feedback. As always, no prior knowledge of Matlab or advanced statistics is assumed. The numerous in-class exercises should be sufficient to bring your Matlab programming skills up to speed.

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MONTHLY RANGE PUTS EURO AUD AT MAJOR CROSSROADS - forex trading system simple

MONTHLY RANGE PUTS EURO AUD AT MAJOR CROSSROADS ~ forex trading system simple

After completing a Bear Crown setup that led to a strong downtrend of over 1,000 Pips, the EURO AUD is now at a crossroads that could either lead to more gains for the Aussie or a strong trend change altogether.

The Chart below shows how this downtrend began, the breaks of the Uptrend Lines and the current Pennant setup that the pair has now formed. 

DAILY CHART

Bull and Bear Crowns as well as the breaks of Trend Lines are typically what we see when major trend changes take place. Traders can either enter at the start and hold trades for long periods or can aggressively trade the waves of the trend. As this trend continued to create lower lows, the Monthly Range of the pair was also breached. Trends that reach this important price point will either pause for a period before resuming the trend or change direction. In the chart below, we can see that this pause took the form of a Pennant that was eventually broken, indicating that we could see a continuation of the downtrend. 

DAILY CHART

On the other hand, as we can also see from the chart above, the current Pennant that has been formed has moved the pair above the Inner Downtrend Line. This could indicate that the current downtrend may actually be coming to an end, given the slow and unconvincing breakout from the larger Pennant. Currency pairs can exceed their Monthly Ranges to give the impression that the trend will continue but the longer the trend takes to get going, the more likely that a trend change will take place. The chart below shows how these two scenarios could unfold.

DAILY CHART 

A simple bearish breakout from the Pennant could be the signal required to continue the existing trend. If the candle given to start this breakout is strong enough, entry can take place there with the appropriate target of between 100 and 200 Pips. However, this Pennant may also be the Centre Tip of a possible Bull Crown that starts a new trend above the Downtrend Lines. One would have to wait for a Right Tip that completes the Bull Crown or another formation before considering entry to go long. Strong trend changes require strong setups and the current Pennant is not large enough to support a trend change. 

Only time will tell what takes place with this currency pair. Regardless of the ultimate direction, we can take advantage by patiently waiting on the appropriate Daily and 4 Hour Chart signals for profitable trades.

RECENT EMAIL FROM CLIENT

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SUBSCRIBE TODAY

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US$120.00

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Duane Shepherd 

(M.Sc. Economics, B.Sc. Management and Economics)

Currency Analyst/Trader

Contact: shepherdduane@gmail.com

Twitter: @WorldWide876

Facebook: DRFXTRADING 

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Forex Megadroid Make Forex Trading Easier With Forex Software - guppy forex trading system

Forex Megadroid Make Forex Trading Easier With Forex Software ~ guppy forex trading system

Forex Megadroid is relatively new in the field of automated Forex trading systems, also known as "forex robots" and done his share of attention as a bestseller. Comments and success stories of all parties agree that it is not only a lot of smoke and mirrors: this software has earned its reputation. In short, it is a program designed to automate the market analysis and interactions of agents, allowing you to make informed operations on the currency market - and therefore the advantage - without even being near your computer. The long version of the story explains why this program is highlighted.

Forex Megadroid has jurisdiction. Many competition. Forex trading software is a saturated market. That said, all these programs are not worth anywhere, even near its purchase price. The Forex market is a chaotic environment, and Forex programs are designed to detect subtle patterns in chaos and act on them. The problem is that even the models change over time, and the software that might be useful at some point may lose a fortune now. This is a major problem with Forex trading programs in general: they must either be constantly alert to prevent children make bad decisions, putting the lie to its claims to "make money with no effort" or if they need to buy versions constantly updated, eat a substantial part of their profits. This, needless to say, is a question that the designers of Forex Megadroid - merchants veterans Albert Perrie and John Grace - taken to heart during the development cycle of eight years of software.

The crucial to the success of the element Forex Megadroid is an innovative new system called "Reverse Correlated Time and Price Analysis" or RCTPA: it is a market analysis has advanced AI has consistently demonstrated its ability to predict the evolution of market 2 to 4 hours in advance There will never be such a thing as e clairvoyance, but RCTPA comes dangerously with an accuracy rate of 95.82% confirmed Forget having to take care of your computer..: This is software that stays true to its profitability promise handsfree.

There is no trick or deception involved with these results. Forex Megadroid was strictly by real Forex traders before it is made public, and reliability of the software is confirmed, the system makes money without any human intervention, multiplying investments, even as their merchants were far computers. This is the same software professionals can trust.

If you are looking to expand your operation or improve the existing business or you are a beginner looking to get your foot in the door, you really can not go wrong with Forex Megadroid. It is not a get rich quick scheme, its a way to make money safely and easily.

Guaranteed 95.82% Accuracy, see who is the best Forex Trading Robot [http://www.Bestforexrobot.org]

Forex MegaDroid Indisputably Proves A Robot Can trade with 95.82% accuracy in each market condition and at least quadruple every dollar you deposit. 38 years of combined experience in delivery Forex Megadroid RCTPA technology. Compare Forex Megadroid, FAP Turbo and Ivybot. See what really works!
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Forex trading is for everyone - the holy grail forex trading system james windsor

Forex trading is for everyone ~ the holy grail forex trading system james windsor

By KitKat

Foreign exchange rates for currency have created a multi billion dollar market for the trade of currency alone. Forex trading as it is called, exceeds 3 trillion dollars daily USD. Because it is done accross the world, it is the largest trading system in existence.

With traders from around the world getting involved there are those who are unscrupulous enough to try a forex trading system under false pretenses. Because the market is run 24 hours daily and is not located in one fixed location but is operated in many places world wide, and because it is not based on one set dollar amount but rather on many price ranges dependent on the traders location, it would be tempting to try and make a quick buck by using the system. However, there are a couple of international agencies who do try to track and maintain a certain level of honesty within the market.

With a wide spread of players from large multi national banks to currency speculators and retail traders involved in forexplatformm trading, a system has been worked out that helps to level the field for all involved. Unlike the stock market, forex strategy trading involves a number of prices dependent on how much one can trade. Larger levels or spreads of trade result in smaller differences in price. Larger corporations like banks and businesses can trade in much larger amounts than a retail broker or smaller local bank.

With forex currency trading being "over the counter", there is little cross boarder regulation and rather than one central market, there are several markets in many countries which are tracked daily and over weekends too. Their is, however, an existing practice of trading that is watched by international agencies to track the trade amounts so that no one can exploit a vast difference in currency exchange rates. Trades are done not by one dollar amount, but by a number of different range amounts depending on where you are trading from.

A number of companies have come out with forex trading software to help both the retail trader and the larger corporations track their trading. This has spurred forex online platform trading all over the world. The software is usually run on line and is accessible from most internet connections so that a trader could keep track and stay up to date from the office or home computer and even from a personal cell phone.

With the market being continuous thanks to operating world wide, forex online system trading has gained in popularity over the last few years. With easy access for even lower level players, forex platform trading can be done by almost anyone.

Forex online system trading has also become a great advantage to traders because it allows for real time tracking from home, office and even mobil devices such as your phone or PDA. There are several forex online platform trading systems and many offer a practice account to get used to their way of doing forex platform trading.

With these platforms and the ability to trade and track on line, you can take forex strategy trading to the next level and make some money for yourself.
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How Beginners Can Start Making Money Through Forex - forex gold trading system

How Beginners Can Start Making Money Through Forex ~ forex gold trading system

If you are in need of a company to invest your money for a profit, I recommend currency trading. Other markets, such as futures, Treasury bonds and stocks you can invest your money in. But why Forex is much better it is because of its liquidity and profitability.

Unlike other markets where it is not allowed to withdraw their money, as it gives you an interest gradually can withdraw your money in Forex whenever you want. In the currency market, determine how much you every day depending on how good you are. Forex trading takes place throughout the day and six days a week, as people from around the world to do business in different time zones.

Anyone who wants to trade the Forex market will go through intermediaries. Most brokers have almost all currency pairs, gold, silver, diamonds and other items such as real estate fair, crude oil, etc. The broker offers this service for you and will also advise you on what is best for merchandise trade.


The good news is that things have been made easier and the average person can now participate in the Forex market. People who can not afford to borrow $ 500 and pay as you begin to profit.

Traders analyze the market before placing a trade. Thats why the forex market is not a game of chance that many people think. There are two ways to analyze the Forex market. They understand the fundamental and technical analysis. Milking technical analysis of the use of panel meters and mapping to predict market direction. The others, fundamental analysis deals with the use of government reports to predict market direction.

The views of traders are very different. Some traders rely solely on technical analysis. They believe that technical analysis gives you everything you need. Some traders nevertheless prefer fundamental analysis when many other traders use to both the analysis of the market situation.

The currency market can change throughout the world. You only need a laptop, PC or a VPS (Virtual Private Server) to ensure that is always online. Gone are the days when you have to stay with the computer every time you place an order. Metatrader has made everything easier. In MetaTrader, you can place a stop loss or take profit and go anywhere. Ill cover that in my next post. Also, instead of VPS, you can monitor your business with smartphones.

Outside the version of the client base, an investor can choose to operate in the Forex market, using web-based versions. The web version is recommended for professional traders only. Best Edition is the version of the client base so they can operate effectively.

Studies show that more than four billion dollars traded on the Forex market. This makes the currency of the worlds largest market. This indicates that a person with a good knowledge of currency can make thousands of dollars.

An important question for traders is the potential, is risky in the Forex market? The answer is definitely yes. Like any other business, forex trading can be very risky. In fact, due to the volatility of the currency market, Forex is more risky than other companies. However, with proper knowledge and money management, you trade successfully and make thousands of dollars. As a beginner, it is advisable to risk some money on each trade is placed to prevent escape all the money in your account.
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255 PIPS ON OFFER FROM NZD CAD THIS WEEK - forex mutant trading system

255 PIPS ON OFFER FROM NZD CAD THIS WEEK ~ forex mutant trading system

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 taking place on the Daily & 4 Hour Charts.

EXPECTED TRADING GAINS - DAILY CHART

PENNANT SETUP - 4 HOUR CHART

When this downtrend finally resumes, we will actually be continuing the breakout from this Pennant Setup. The Support was initially broken with a Bearish Candle and has been followed by a pull back and U-Turn as the market "tests" the broken Support. Once this is done and we start to see additional bear candles, short positions can be opened as long as our Entry and Stop Loss Placements are correctly done according to the Trade Sheet for Consolidation Breakouts from the Trading Manual...

It is fairly easy for us to spot Consolidation Setups and trade them after they have been formed across all time frames. However, the challenge has always been to spot the signs that they are being formed so that we can quickly adjust our strategies from a Trend Trading one to a Consolidation Trading strategy. 


So how do we trade this?


There are several technical factors in the currency market that tell us when these setups are being formed. Many of them relate to how long a trend has been in place before it begins to move sideways or whether we have recently broken a major Trend Line. These and many other factors that lead to these setups can be found in Section 4 Part 2 of the Manual...

As soon as you spot these factors at work on your charts, you can begin drawing the expected lines of Support and Resistance. Once the distance between these boundaries is far enough to allow for trades of between 100 and 200 Pips - comfortably - strong gains can be had as long as the trade meets the requirements set out in Part 3 of the Manual...

The key is to now wait on the appropriate signal on the Daily Chart to start taking advantage of the move to Support and the breakout from the 4 Hour Chart Pennant.

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