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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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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USD CHF 100s OF PIPS BULLISH OR BEARISH - forex trading system reviews

USD CHF 100s OF PIPS BULLISH OR BEARISH ~ forex trading system reviews

Hundreds of Pips in either direction appear to be possible for the next few weeks if we see strong Bullish or Bearish breakout signals. The Weekly Range has recently been hit after a very long and slow trend and has now settled above a major Downtrend Line. A convincing Bullish Candle break above Resistance would put the 0,9400 area in play, while a break short to also take out the Uptrend Line would make 0,8700 the long-term bearish target.

The currency pair has started to move within a small Range above the Inner Uptrend Line, following a rally to the 0,9100 area.

DAILY CHART

The gains for the Swiss Franc also put the pair above a major Outer Trend Line of a previous Downtrend.


DAILY CHART

As you can see, the recent uptrend was part of a break from the Inner Trend Line to the Outer Trend Line of that Downtrend. From this point, the market could either break higher for an even stronger Uptrend or break lower to resume the overall Downtrend. In continuing higher, the Daily Chart would first have to break the Resistance of its current Range setup.

DAILY CHART

The first major target would be the next Weekly Range which would be at the 0,9435 area. Short-term targets will be hit along the way as traders exit profitable positions in this new uptrend. Equally profitable targets could also be hit going short if there is a breakout bearish from this Range along with a break of the Outer Uptrend Line.

DAILY CHART

Before breaking bearish, the currency pair could actually spend a little longer in this Range to carry it closer to the Outer Trend Line. At times, trend changes that involve Consolidation breakouts tend to take place simultaneously with Trend Line breaks to make the start of the new trend even more convincing (TRADE TIP).

See how the concept of the Weekly Range and Consolidation breakouts worked on past trades in the Free Preview of the Trading Manual;

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More info for USD CHF 100s OF PIPS BULLISH OR BEARISH ~ forex trading system reviews:

AUD NZD BULLISH BREAKOUT SIGNAL ABOVE MAJOR CONSOLIDATION - the ultimate forex trading system pdf

AUD NZD BULLISH BREAKOUT SIGNAL ABOVE MAJOR CONSOLIDATION ~ the ultimate forex trading system pdf

This pair has given us a Bullish breakout candle to signal the possible start of a sharp breakout in favour of the Aussie Dollar. A Range setup that lies above the Resistance of the larger Pennant was broken today with a strong Bull Candle. Breakouts from large Consolidations often have smaller setups at their boundaries which provide the signal needed to start the breakout. If this breakout materializes, then we could see the first major target at 1,1298 being hit by the end of this month.

The chart below shows that this pair began forming the large Pennant after breaking above the major Inner Trend Line of a previous Downtrend.

DAILY CHART

Large sideways patterns and breaks of Inner Trend Lines often appear at the end of a very long trend and the start of new one. The chart below shows us a closer view of this Pennant that could represent the setup that starts this new trend and takes us up to the Outer Downtrend Line.

DAILY CHART

You can see the Range setup above the Resistance of the Pennant. Smaller Consolidation patterns are often formed ahead of a breakout from an even larger Consolidation. Assuming that the signal given above this Range will lead to a new Uptrend, the first target to be hit would be the Breakout Equivalent (B.E.) of the Range. This is the target to which all Consolidation patterns break towards before coming to an end. 

DAILY CHART

When this first target is hit, the market is likely to pause for a short period before moving on to hit higher targets. Traders have the option of either exiting for a profit at this area and re-entering when the trend resumes or holding on for even larger gains. This decision will often come down to the trading objectives of the individual Retail/Institutional Trader. 

As straightforward as this setup appears to be, trading Consolidation Breakouts can be very difficult. The Pip targets are much larger and can present a challenge as to how many we should aim for and the time period over which we should hold our positions. We are also confronted with the dilemma of whether to monitor the positions or leave them until the target is hit. All of these issues and more are broken down and solved in the Trading Manual below. Targets, Stop Losses, Limits as well as the Holding Period for these types of trades are all based on clear and proven trading rules that you can use for this and upcoming trading opportunities.

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More info for AUD NZD BULLISH BREAKOUT SIGNAL ABOVE MAJOR CONSOLIDATION ~ the ultimate forex trading system pdf:

SHARP AUD NZD BREAKOUT BUT PULLBACK NEEDED - forex daily trading system review

SHARP AUD NZD BREAKOUT BUT PULLBACK NEEDED ~ forex daily trading system review

OVERALL SCENARIO

• Consolidation at end of Major Downtrend;
• Possible Start of Move to Outer Downtrend Line;
• Broke Resistance of Pennant; 
• Needs to Pullback to Start New Uptrend;

CHART 1 - END OF DOWNTREND

   
CURRENT SCENARIO

• Pennant Broken;
• Candle Signal Too Large;
• Weekly Range Exceeded;

CHART 2 - PENNANT BREAKOUT

 ACTION STEPS

• Wait for a Pullback/Small Consolidation;
• Wait for another Strong Bull Signal to Start New Weekly Range;
• Enter Based on Daily Signal or 4H Chart Signal;
• Aim for 200 Pips;

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NZD JPY ABC SIGNAL GIVEN BUT TO WEAK TO TRADE - the forex trading pro system course

NZD JPY ABC SIGNAL GIVEN BUT TO WEAK TO TRADE ~ the forex trading pro system course

We were a bit tempted to enter long on this pair yesterday when it gave us an ABC Bull Signal above the broken Downtrend Line. This could have been the signal needed to take us up to the Resistance of the Range being formed and capture some Pips in the process. However, like many of the signals in the Forex Market these days, this was too weak to justify taking a position. As such, we will either have to wait for a stronger Bullish signal, or look to another pair altogether.

The last few weeks have seen the pair gradually moving sideways towards the Inner Uptrend Line.

DAILY CHART

In doing so, the currency pair has moved in waves of Uptrends and Downtrends to slowly form a large Range pattern.

DAILY CANDLE 

The Resistance has already been formed with only the 2nd Support price point needed to complete the Consolidation. This was expected to be started with a Bull signal to break the Counter Trend Line (CTL), following the break of the Downtrend Line (DTL).

DAILY CANDLE

   
The Bull Candle appeared and broke the CTL setup as expected. Unfortunately, the size of the candle given was below what we are accustomed to for ABC signals and candles in general that start trends. A candle similar to that on the right would have been better and is the type that usually leads to strong breakouts, without hesitation.

DAILY CHART

ABC setups can be thought of as spring boards- the greater the force applied/the larger the candle, the greater the distance traveled.

DAILY CHART - EURO AUD

If the candle is not strong enough, the market either reverses or provides another setup and signal. In some cases, the market actually moves in response to the weaker signal, but this rarely happens. When it does, the trend tends to be volatile and take a much longer time to reach its target, with unexpected price spikes along the way. 

Nevertheless, for those who have chosen to trade this setup,  lets hope that I am wrong- for those opting not to trade, lets hope that I am right.

Happy (no) Trading.

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