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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Twitter: @WorldWide876

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HIGHER LOWER TIME FRAMES THE DYNAMIC YOU WONT SEE ANYWHERE ELSE - forex system trader review

HIGHER LOWER TIME FRAMES THE DYNAMIC YOU WONT SEE ANYWHERE ELSE ~ forex system trader review

THE DYNAMIC RELATIONSHIP

At the start of a trend on the Daily and 4 Hour Charts, one will notice a unique relationship between these charts that is also replicated on other time frames. For every candle seen on a Larger Time Frame, there is a setup and signal on a corresponding Lower Time Frame that led to that candle. Then, in a recursive manner, every candle on the Larger Time Frame that is going to lead to a trend, produces another setup and signal on the Lower Time Frame in response to that candle. To make this even more complicated, the time it takes for the Lower Time Frame to respond to that signal is approximately the same as the Larger Time Frame.

This relationship takes place between all Higher Time Frames and Lower Time Frames that are directly linked to each other, from the Monthly Chart down to the 1 Minute Chart. Here are the pairs of time frames that are directly linked to each other that follow this pattern of setups and signals.

LARGER & LOWER TIME FRAMES DIRECTLY LINKED

The graph below shows this relationship between the Daily and 4H Charts. This took place on the AUD NZD on April 30 this year with the start of a Bear Crown formation.

DAILY CHART

The signal for the Right Tip of the formation was provided with a break of a Counter Trend Line.  It was part of a Trend Line break at the Resistance of a newly formed Pennant. The 4 Hour Chart below shows the setup that led to that signal.

4 HOUR CHART

Following this Daily Signal, the 4H Chart provided a follow-up signal in the form of a Bearish U-turn (Evening Star) after 24 hours (four 4 H candles preceded the Bear Signal).


4 HOUR CHART

You will see this relationship played out on most trends on these time frames across the currency market. This dynamic allows the trader to anticipate a setup that can be traded after the Higher Time Frame has provided the signal. It also helps in anticipating False Signals as well. If the signal given on the Higher Time Frame will not lead to a successful trend, then the Lower Time Frame will not produce a follow-up signal. This can happen when the market has hit a major price point that will lead to a reversal.

The other useful aspect of these signals and setups is that one can determine the type of setup to expect on the Lower Time Frame. If these are in sync between both time frames, it gives added confirmation that the trade will be successful. So how do we know which setups to expect on the Lower Time Frames so that we do not enter prematurely to then get stopped out?

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Currency Analyst/Trader

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Twitter: @WorldWide876

Facebook: DRFXTRADING 

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350 PIPS NZD JPY SHORT TERM RALLY LONG TERM DOWNTREND - forex trading system rating

350 PIPS NZD JPY SHORT TERM RALLY LONG TERM DOWNTREND ~ forex trading system rating

This pair has finally come to the end of a very strong Uptrend that began in June of 2012, reaching its peak in March of this year. As with most trend changes that are about to take place, the market goes through a period of Consolidation in the form of a Range or a Pennant before breaking out in the new direction. As these patterns are being formed, however, they can also provide setups to trade between Resistance and Support. Such an opportunity may be seen in the next few days if the 2nd Support price point is formed. Once a strong enough Bullish Candle signal appears to also break the current Downtrend Line, a rally of 350 Pips will be on offer for the sharp Swing Trader.

Looking at the figure below, we can see the current sideways movement of the pair that followed the end of the Uptrend. The Inner Uptrend Line was broken and is now hovering above the Outer Uptrend Line, indicating an imminent trend change bearish.

DAILY CHART

The chart below shows us more closely the Pennant pattern gradually being formed above this Outer Uptrend Line. The Resistance boundary has already been formed but with only one Support price point so far, a rally back to Resistance would be needed to complete the Pennant.

DAILY CHART

Such a rally would need to be started with a strong enough Bullish Candle to justify trading the mini-uptrend. This can be similar to the two previous U-turns at the 1st Support point and the 2nd Resistance point.

DAILY CHART

After this rally takes place, we could see another downtrend back to Support. If a major trend change bearish is actually going to take place for the NZD JPY, the Support boundary and the Outer Uptrend Line will be broken simultaneously.

DAILY CHART

This setup to start a new downtrend would be similar to the one that occurred in April of 2013. The Inner Uptrend Line at the time was broken along with a small Range setup.

DAILY CHART

The breakout continued until the Outer Uptrend Line was hit to then continue the overall Uptrend. The major difference between this scenario and the one currently taking place, however, is the size of the Consolidation. The larger the Consolidation being formed after a very long trend, the greater the chance of a trend change. If this is accompanied by a break of an Inner Trend Line, this probability increases even more.

While this trend change looks likely to take place later this year, profitable gains can be had in the short-run. If the setups and trends that are formed inside the Pennant are strong and clear, a few hundred pips can be added to your trading account over the next few weeks.

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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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300 PIP AUSSIE BREAKOUT MAY HAVE TO WAIT - forex trading system requirements

300 PIP AUSSIE BREAKOUT MAY HAVE TO WAIT ~ forex trading system requirements

This pair has recently attempted to start a breakout from a Range on the Daily Chart, with a break of a Counter Trend Line (CTL) setup below the Support. This is a common way for Consolidation breakouts to begin following a test of the Range with this CTL barrier. However, the bearish break candle was not strong enough and would need to be followed by another bear candle to convincingly start the downtrend. Nevertheless, with a break of the Uptrend Line already taking place and a False Breakout of a previous Consolidation, it is only a matter of time before the USD begins to regain lost ground against its Aussie counterpart.

We can see the CTL setup that was broken in the graph below. CTLs tend to appear at the Resistance or Support of a broken Consolidation as a way of testing these areas before the breakout begins.

DAILY CHART

Despite being a strong candle on its own, the break below the CTL was not far enough to start the breakout. The distance below the CTL normally has to be greater such as in the example below for the CAD CHF this year.

DAILY CHART- CAD CHF

Whenever the breakout is not strong enough, one of two things can take place. There could either be a False Breakout that takes us back inside of the Range or another, stronger bear candle that continues the breakout short. What could tip the balance in favour of a bearish move, however, are three technical factors;

1. The Break below the Uptrend Line;
2. The Plateauing, Sideways Movement of the Currency Pair;
3. A Previous False Consolidation Breakout;

It is very common for trend changes to follow False Consolidation Breakouts and periods of sideways movements. There was a Pennant setup on the left-hand-side of the chart that attempted to break long to continue the uptrend, but this was short-lived, giving way to the Range setup that we now see. These two Consolidations side by side then created a type of plateau which normally means that the momentum of the trend has been exhausted. If we add a break of a Trend Line into the mix, then a trend change is the inevitable outcome.

DAILY CHART

Once this bearish trend gets going, the target that is expected to be hit in the short-term is the 0,9000 area. This coincides with the Breakout Equivalent of the Range and is the price point at which the breakouts from Consolidations come to an end.

DAILY CHART

So long as the signals and setups on the Daily and 4 Hour Charts are strong, we can capture a large part of this expected 300- Pip decline.

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____________________________________________________

SUBSCRIBE TODAY

____________________________________________________

US$120.00

Free 

 ___________________________________________

Duane Shepherd 

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

Currency Analyst/Trader

Contact: shepherdduane@gmail.com

Twitter: @WorldWide876

Facebook: DRFXTRADING 

More info for 300 PIP AUSSIE BREAKOUT MAY HAVE TO WAIT ~ forex trading system requirements: