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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CAD CHF TREND LINE BREAK AS EXPECTED BUT WHAT NEXT - forex trading system resources

CAD CHF TREND LINE BREAK AS EXPECTED BUT WHAT NEXT ~ forex trading system resources

Having broken the Outer Uptrend Line as expected, the CAD CHF is now at a bit of a crossroads. The Double Tops that were formed were strong enough to lead to the bearish break, but may not be enough to push the pair down much farther. We could see the formation of a Range that eventually leads to the start of a downtrend, but if we see a strong Bull Candle above the Counter Trend Line (CTL) the Uptrend could continue.

Daily Chart below shows the breakout that took place below the Inner and Outer Trend Lines. Supporting this breakout were the Double Tops and the fact that we had rallied by  600 Pips, exceeding the Monthly Range for this pair.

DAILY CHART

Despite this break, the Double Tops seen here were too weak to start a significant downtrend. The first part of this pattern was strong, but the weakness of the candles for the 2nd `Top` rendered the signal too weak.

DAILY CHART

The candles shown here, however, are closer to what we would expect for Double Tops.

DAILY CHART

So what can we expect at this juncture? Well one of two options. 

SCENARIO 1 - CONSOLIDATION ?

Since this breakout may not take place right away, the market could go into a period of Consolidation in the form of a Range. This is typically what you will see when the Monthly Range is hit and/or a Trend Change is going to take place.

DAILY CHART- RANGE SETUP?

We would see a rally to form the 2nd Support to complete the Range followed by a U-turn to breakout bearish. The new trend would be formed as the Swiss Franc regains lost ground against the Loonie.

SCENARIO 2 - RESUMPTION OF UPTREND ?

The Uptrend could actually resume with a simple Bullish Candle and break of the Counter Trend Line (CTL). Even though we are at the Monthly Range of the currency pair, trends can also continue once the setup and signals are strong enough.

DAILY CHART

Until the market shows us its cards, lets wait on the sidelines and then take appropriate action. Get familiar with how to trade these setups and then enjoy the Pips as they continue to roll in using my Methodology.

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

Currency Analyst/Trader

Contact: shepherdduane@gmail.com

Twitter: @WorldWide876

Facebook: DRFXTRADING 

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GBP AUD MAJOR DOWNTREND REVERSAL IN SIGHT - stealth forex trading system review

GBP AUD MAJOR DOWNTREND REVERSAL IN SIGHT ~ stealth forex trading system review

OVERALL SCENARIO

• At End of a Major Uptrend;
• Broken Inner & Outer Trend Lines;
• Within a Large Pennant Consolidation;
• Possible Rally to Resistance;
• Likely Break of Support to Start Downtrend

  

CHART 1 - END OF MAJOR UPTREND

POSSIBLE SHORT-TERM SCENARIOS

• Rally to Pennant Resistance after/without hitting Support;
• Break of Pennant Support to Start New Downtrend;

CHART 2- PENNANT CONSOLIDATION

 LONG-TERM SCENARIO

• Support Likely to be Broken;
• Major Uptrend has ended, Trend Lines Broken,Large Pennant Formed;
• This is the typical setup for a new, major Trend Change;

ACTION RECOMMENDED

• Wait for Strong Bull Signal now or at Support to Trade to Resistance;
• Wait for Strong Bearish Break to start Downtrend;
• Aim for 100 - 200 Pips;

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Currency Analyst/Trader

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Twitter: @WorldWide876

Facebook: DRFXTRADING 

More info for GBP AUD MAJOR DOWNTREND REVERSAL IN SIGHT ~ stealth forex trading system review:

USD JPY BREAKOUT SHORT CRISIS LOOMING - forex day trading system simple 1m scalping strategy

USD JPY BREAKOUT SHORT CRISIS LOOMING ~ forex day trading system simple 1m scalping strategy

As we continue to struggle in a very low liquidity environment for the Currency Market, the USD JPY has also fallen victim to the absence of meaningful, tradeable volatility. This has led to the formation of a 145-Pip Range within which the pair has moved since the middle of April this year. Short-term aggressive traders may have profited from this period of market indecision by trading between Support and Resistance despite the erratic nature of the candles. However, those focused on the larger picture could be rewarded for their patience with a strong bearish breakout of 300 Pips that seems to be looming following the break of two previous Uptrend Lines. 

The chart below shows the Range within which we have been for the last 3 months. Traders who enter and use the Resistance and Support boundaries for Stop Losses would have done so at the 102,75 and 101,30 price areas, respectively.

DAILY CHART

Trading based solely on Support and Resistance without strong candle signals can be a very risk strategy given the possibility of large price spikes at these areas. The absence of such strong candle signals also leads to unexpected Double Tops and Bottoms that appear at the mid-point of these Ranges. On the other hand, if these Range traders were to instead take a broader look at this currency pair, they would see the potential for even larger gains in the next few days.

The chart below shows that this Range is actually sitting atop the Outer Trend Line that has been in place since November of 2012. We can also see that the movement to this Trend Line followed the break of two Inner Trend Lines.

DAILY CHART

In general, trend reversals tend to occur whenever there are successive breaks of trend lines and/or long periods of indecision and sideways patterns. Whenever they are as large as the patterns that we are seeing here, however, they are usually associated with a major change in investor sentiment such as with the GBP USD prior to the safe-haven trading of 2008;


DAILY CHART - GBP USD

And the return of risk-appetite to the markets in 2009;


DAILY CHART - AUD USD

Given that we are seeing something very similar with the USD JPY, we are very likely to see a significant trend change associated with another major shift in market sentiment. If this actually takes place, it is likely to start with a break of the Support of the current Range setup.

DAILY CHART

Even though such a major trend change could last for several months, lets  examine what can take place in the very short-run period of 7 to 14 days.

As the breakout begins, there will be several price points of Support to provide traders with good exits for their trades. However, given the precocious nature of breakouts, the trader would need to know beforehand that a particular Support point targeted for profit, will in fact be hit before the trend ends.

This is where the concept of the Breakout Equivalent becomes useful. It measures the distance over which the breakout is expected to take place before coming to a slow or abrupt end. Knowledge of this price and how to measure it allows traders to set their pre-determined pip targets with greater certainty and avoid the trap of unexpected reversals. If this breakout actually takes place in favour of the Japanese Yen, the Breakout Equivalent target would be at 98,40, some 300 Pips away from the current price. 

This concept can be seen throughout the Currency Market, with the USD CAD providing a very recent example.

DAILY CHART - USD CAD

In this case, the Breakout Equivalent took us very close to a major Uptrend Line that started in September of 2012. You will also notice that the breakout signal was strong enough to give traders the added confidence that we would not fall into the trap of a False Breakout to go long. Once a strong enough signal is given to start a breakout, pre-determined targets can be comfortably set to capture between 100 and 200 Pips (125 Pips in this example). 

Another major issue related to these setups is the holding period for our trades. Breakouts can last anywhere from a few days to a few weeks depending on the speed of the market and the size of the Consolidation. This means that two currency pairs with similar size Ranges can reach their respective target at different times. Given that we do not necessarily want to hold our trades open indefinitely, what would determine our decision to stay in these trades for 4, 7, 10 or 14 days?

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

Currency Analyst/Trader

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Twitter: @WorldWide876

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AUD NZD 200 PIPS BEARSIH OR 150 PIPS BULLISH - quantum forex trading system

AUD NZD 200 PIPS BEARSIH OR 150 PIPS BULLISH ~ quantum forex trading system

Consolidation has been the name of the game in the Currency Market for most of 2014 and the AUD NZD has faithfully played its role in this regard. A large 300- Pip Pennant can now be seen following a nearly 3-year downtrend that started in 2011. Within the next few days, we will see either a continuation of this pattern with a Bearish break down to Support or a Bullish move that starts a new Uptrend towards the major Outer Downtrend Line.

The strong decline in the AUD NZD started from the high of 1,3794 in March 2011 to eventually end at the low of 1,0491 in January 2014. In the process, it created an Inner and Outer Trend Line as the market accelerated in the latter part of the downtrend before ending with the current Pennant formation.

DAILY CHART

This Pennant can be seen more closely on the next chart where a small Range has also been formed at the Resistance.

DAILY CHART

At this point, the currency pair could continue to move within the boundaries of the Pennant. This would require a break of this small Range to start the downtrend that carries us to the Support area at 1,0662.

DAILY CHART

The move could take approximately 6 to 10 days and offer traders between 100-250 Pips in gains. Given that it would start with a break of a small Consolidation, however, the trend could actually move very quickly, reaching that Support target in only 3-4 days.

In the Bullish scenario, a breakout above the Resistance of the Range would start a strong breakout that sees the Aussie rally a few hundred pips heading into September.

DAILY CHART

The first target to be hit would be the Weekly Range (WR) followed  by the Breakout Equivalent (BE) of the Range. This rally could also take fewer than 6 days to hit those price points and give the trader close to 150 Pips in gains. Following this stage, the market is likely to pause once more before continuing much higher to the larger target of the Outer Downtrend Line of the previous trend. 

Breaks of Inner Trend Lines usually lead to moves towards Outer Trend Lines as long as the setups to start these trends are strong enough. Given the size of the current Pennant Consolidation formed over an 8-Month period, it would only be a matter of time before that Outer Downtrend Line is hit.

Bullish or Bearish, stay sharp and patient fellow traders and large profits will be yours once more.

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 ___________________________________________

Duane Shepherd 

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

Currency Analyst/Trader

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Twitter: @WorldWide876

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More info for AUD NZD 200 PIPS BEARSIH OR 150 PIPS BULLISH ~ quantum forex trading system:

GBP CAD 500 PIP RALLY IN NEXT FEW DAYS - neural spray forex trading system

GBP CAD 500 PIP RALLY IN NEXT FEW DAYS ~ neural spray forex trading system

This pair has started to break out above the latest Pennant setup on the Daily Chart which could set the stage for strong Pip gains in the days ahead. Before this takes place, however, we would need to see a stronger Bull Candle (Normal Candle) than the one that has appeared at the end of Mondays session. 

DAILY CHART - WEAK CANDLE BREAKOUT

Once we have this signal, we will be able to enter with greater confidence that another 200-Pip trade will be there for the taking.


The expected rally would continue the momentum of the major break out above the Outer Downtrend Line, which started a few weeks ago on January 21, 2015.

DAILY CHART- OVERALL DOWNTREND

DAILY CHART- START OF TREND LINE BREAK

As is typical of the Currency Market, breaks of major barriers such as these tends to take place with a break of a large Consolidation - a Pennant in this scenario. What this means is that any breakout from the smaller Pennant Setup would be supported by the momentum of the breakout from that larger Pennant- leading to profit targets being hit in a very short time.

If we see the hoped for Bull Candle this week, it will need to first go through our gauntlet of checks and balances prior to entry.

TRADE SHEET CHECKLIST

Once these criteria are met, another strong trading gain will be added to our growing trading accounts.

________________________________________

________________________________________

Duane Shepherd

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

Currency Analyst/Trader

Contact: shepherdduane@gmail.com

Twitter: @WorldWide876

Facebook: DRFXTRADING
Website: www.drfxswingtrading.com

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