MAJOR BREAKOUT TO CONTINUE ON CHF JPY - new science of forex trading system

MAJOR BREAKOUT TO CONTINUE ON CHF JPY ~ new science of forex trading system

Following the start of a sharp Bullish breakout from its large Pennant Consolidation, this pair has taken a bit of a pause before it resumes the sharp rate of gains for the Swiss Franc. This pause in the breakout is what I refer to as the Mid Point of the Breakout. It is where the pair will form a smaller pattern of Consolidation such as a Pennant or Range before continuing to the major target of the Breakout Equivalent.

Whenever Consolidation patterns are broken, they will ultimately go to this Breakout Equivalent target before either pausing for a very long time or reversing all together. This concept can be seen across all time frames and for both Ranges and Pennant Consolidations. The accurate measurement of this target helps traders to confidently identify their Limit Orders in their trade setups without the need to monitor the trade for signs of pullbacks. One can confidently leave the trade to move towards this area knowing that this target will be hit 95% of time once identified.

There are times when the market will move quickly to this area with very few pullbacks along the way and there are times when it takes a breather before resuming its breakout. If it takes a pause during the breakout, it will provide another profitable entry point for traders who would have exited their first trade at this area.

The larger the Consolidation, the larger the breakout and the greater the distance to be covered to reach its ultimate target. Given the size of this Consolidation on the Daily Chart of the CHF JPY, traders have a very large number of Pips that they will be able to capture once the breakout resumes.


DAILY CHART

This breakout has taken place within the context of a strong Uptrend that began from a low of 78.35 in July of 2012, providing added momentum to this Bullish move.


DAILY CHART

The Bullish signal that started the breakout came on November 3, following which the pair rallied quickly by 647 Pips over a 25 day period.


DAILY CHART

After reaching this area, we can now see the gradual formation of a possible Consolidation setup in the form of a Range. If we see a U-Turn from its current price in the next few days towards Resistance, the Support and the Range will be complete.


DAILY CHART

If we then see a strong enough Bullish Breakout Candle to resume the breakout, we will enter accordingly to take advantage of the rally. Assuming this Range is formed, we would now have two possible targets to aim for during this breakout.


DAILY CHART

After ensuring that the trade setup meets our criteria, we will then need to decide which of these targets to choose. We could see the pair rally towards the Breakout Equivalent of the Range and then pause for a few days or weeks before continuing to the 2nd Breakout Equivalent. It could also bypass that 1st target with very few pullbacks or pauses to then hit the 2nd target. This decision can be avoided, however, if our targeted range of Pips is achieved prior to these areas being reached. If on the other hand, our target range coincides with any of these points, then our Limit Order will be based on our criteria for trading these types of scenarios.

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Duane Shepherd

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

Currency Analyst/Trader

Contact: shepherdduane@gmail.com

Twitter: @WorldWide876

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Website: www.drfxswingtrading.com

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GBP CAD FORMING LARGER RANGE - narrow range breakout forex trading system

GBP CAD FORMING LARGER RANGE ~ narrow range breakout forex trading system

GBP CAD appears to be forming a larger Range Setup than the one previously traded. This could provide a larger range of Pips to target if we see a strong Bearish Signal in the next few days. 

This was the previous setup. It had formed a Range Setup that was initially broken short, but was followed by a sharp, False Breakout Reversal. This took it to the Resistance area where it began to pullback by a few pips.


DAILY CHART - REVERSAL SIGNAL

With this setup, it would have been expected to either break out at the other end of the Range to continue long, or come back inside to continue within the Range (Figures 36 & 37, Currency Trading With the Daily & 4 Hour Charts). However, after re-examining this chart, it appears that the Double Bottoms and the rally may actually have formed the Support for a larger Range.



DAILY CHART- LARGER RANGE?



If we see a strong and convincing setup and signal below this Uptrend Line, it will start this move to Support. As to which Support it will be targeting, we will just have to wait and see.

________________________________________

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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AUD JPY WITH A STRONGER BULLISH SIGNAL 100s OF PIPS IN SIGHT - best forex trading system pdf

AUD JPY WITH A STRONGER BULLISH SIGNAL 100s OF PIPS IN SIGHT ~ best forex trading system pdf

The Daily Charts Pennant for this pair has finally been broken with Bullish candles breaching the Resistance barrier at 96,50. Given the size of this Consolidation which has taken 5 months to be formed, there is a potential for a move of several hundred pips over the next few weeks. Nevertheless, the candles that have started this breakout have so far been small and appear to be too weak to support the type of profitable, strong and reliable breakouts that are associated with these Consolidations. We may therefore have to wait for either a temporary pullback to test the Resistance or a small Consolidation setup followed by a more convincing Bull signal.

The overall direction of the pair has been bullish since August of 2013, giving added support for the continued strengthening of the Aussie dollar.

DAILY CHART

The breakout started a few days ago on August 22 last week and has continued moving higher but with weak candles.

DAILY CHART

Breakouts from Consolidations need to have stronger candles otherwise they could turn out to be False Breakouts or volatile trends. For us to trade this setup, we would need a setup such as a small Consolidation followed by a stronger Bull candle;


DAILY CHART - AUD JPY - NOVEMBER 2011

 



Or a pullback to test the Resistance boundary and then give us a stronger Bull signal.


DAILY CHART - NZD CAD - MARCH 2014

As stated earlier, it is still possible for the breakout to continue moving higher without either of these setups being formed. The more eager of traders may to take the risk of getting in on the trade to avoid missing out on a big payday in this slow period for the market. However, past examples in the Currency Market suggest that waiting on these setups is the better way to protect our Stop Losses from being taken out by spikes along the way. Whatever route one takes, always ensure that your targets and Stop Losses are carefully chosen and the risk taken is within your trading rules.

Happy Trading.

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Twitter: @WorldWide876

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GBP JPY LOOKING TO CONTINUE NEW DOWNTTREND - forex day trading system - peak and valley method

GBP JPY LOOKING TO CONTINUE NEW DOWNTTREND ~ forex day trading system - peak and valley method

With most of the major Currency Pairs already starting new trends, the GBP JPY also looks to be starting one of its own after breaking its major Inner Uprtrend Line. Having done this, the pair has hit its 500 - Pip Weekly Range and has been moving sideways as is customary at this area. If this movement eventually takes the form of a Range pattern and leads to a bearish breakout, then further gains are expected for the Japanese Yen.

We can see the broken Inner Uptrend Line in the chart below that has started a new Downtrend. If this new direction continues, then the Outer Uptrend Lines would be the next major targets.

DAILY CHART

The sideways movement now taking place could lead to the formation of a Range setup if the 2nd Resistance point is formed (r2). A break of Support with a strong Bearish Candle would then be needed to confirm the continuation of this Downtrend.

DAILY CHART

  

Looking ahead, the next price target to be hit would be the 2nd Weekly Range. This would lie around the 167.00 area and could be reached within 10 days from this breakout.

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Twitter: @WorldWide876

Facebook: DRFXTRADING 

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SHARP RALLY IN YEN PAIRS TRADING GAINS AHEAD - forex binary options ultimatum trading system

SHARP RALLY IN YEN PAIRS TRADING GAINS AHEAD ~ forex binary options ultimatum trading system

The major crosses for the Japanese Yen have rallied sharply in the last few days, with gains of between 500 and 1000 Pips seen for the USD, EURO, GBP and the CHF. Although some of these have started to pullback, the setups on their respective Daily Charts suggest that this could be temporary ahead of further losses for the Japanese Yen.

The USD JPY led the way with a strong breakout from a Range setup on August 20.


DAILY CHART- RANGE SETUP

DAILY CHART- BREAKOUT

The GBP JPY followed with a breakout of its own of over 1000 Pips from a Pennant setup.



DAILY CHART- PENNANT SETUP

 

DAILY CHART- BREAKOUT

 


In breaking the Resistance of this Pennant, however, the pair exceeded its Monthly Range (see Trading Manual). This means that it is expected to pullback or move sideways for awhile before resuming the uptrend. As long as the bullish signal given after this pause is strong and clear, traders will be able to capture between 100 and 200 Pips.

The EURO JPY also started to break out of its large Pennant with a move of 500 Pips. It did this with a breakout from a small Range at the Support  and has now pulled back to the Resistance of the Pennant. The reason for the pullback has to do with the Breakout Equivalent (B.E.) of this Range being hit which is the target that all breakouts from Consolidations go towards before they pause to either resume the trend or reverse.


DAILY CHART- PENNANT & UPTREND

DAILY CHART- BREAKOUT & BREAKOUT EQUIVALENT

 

 



If the breakout is going to continue in favour of the EURO, we will have to see a strong U-turn and bullish signal following this test of the Resistance. It is then likely to start a trend that takes us back to the high of 145,67 set on December 27, 2013.

Breakout Equivalent and Monthly Range targets are important technical price points to take into consideration when trading the Daily Chart. They act as strong profit targets for our trades as well as major pullback points for all the Currency Pairs in the Forex. An awareness of these areas greatly enhances your profitability as you anticipate sharp reversals in the market and identify the best exit points for your trades.


Sign up today, become a Subscriber and you will receive;

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Twitter: @WorldWide876

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More info for SHARP RALLY IN YEN PAIRS TRADING GAINS AHEAD ~ forex binary options ultimatum trading system:

AUSSIE DECLINE TO CONTINUE WITH AUD JPY FALSE BREAKOUT - forex trading system profitable

AUSSIE DECLINE TO CONTINUE WITH AUD JPY FALSE BREAKOUT ~ forex trading system profitable

The market-wide decline in the value of the Australian Dollar appears to be about to continue with the AUD JPY this week. The pair had recently attempted to break long from a large Consolidation on the Daily Chart, but has now become volatile above the Resistance boundary. If we see a strong Bearish Candle Signal that breaks below this Resistance, sharp gains for the Japanese Yen are likely to be seen over the next few weeks.

The Daily Chart below shows the Pennant setup and the short-lived Bullish breakout.


DAILY CHART - PENNANT BREAKOUT

 


We can also see that this was taking place in the context of an existing Uptrend, which should have provided additional support to that breakout.


DAILY CHART- UPTREND

 

Given the extent of the pullback to the Resistance, however, this breakout is likely to give way to a Bearish reversal in favour of the Japanese Yen. The start of this downtrend could take the form of an ABC setup (see Trade Manual) or a small Consolidation breakout. In either case, if the Bearish Candle is strong enough to break below the Resistance, we could see a decline to 94,37 at Support and then lower to the Outer Uptrend Line at 91,77.



DAILY CHART- BEARISH TARGETS

 

This decline in the Aussie Dollar would be similar to that on the AUD NZD as well as the AUD USD where a trade was recently made.


DAILY CHART - AUD NZD

DAILY CHART - AUD USD

DAILY CHART- LIVE ACCOUNT AUD USD TRADE

FXCM Charts used for Trade Signals; Trades executed on Dukascopy Swiss Forex Marketplace

As the market continues to break out of these large Consolidation setups, hundreds of Pips will continue to be on offer for the sharp trader. With the right Methodology that maximizes on these opportunities, your Trading Account will continue to grow over the Long-Run.

Become a Subscriber today and you will receive;

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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 

More info for AUSSIE DECLINE TO CONTINUE WITH AUD JPY FALSE BREAKOUT ~ forex trading system profitable: