38 PIPS GONE IN 277 PIP EURO USD TRADE - forex end of day trading system

38 PIPS GONE IN 277 PIP EURO USD TRADE ~ forex end of day trading system

The EURO USD has been steadily declining over the last several weeks following the turn at the Resistance of its large Pennant Consolidation. There have been very few pauses or pullbacks in this strong downtrend that now has its sights set on the Support boundary of this Pennant, 350 Pips away. Trading these slow trends can be very profitable and with a short time remaining before that boundary is hit, the current trade opened on this pair could provide a very large return in October.

The recent pullback at the Resistance of this Pennant setup can be seen in the Daily Chart below. This large Consolidation was actually formed following the sharp gains for the USD during the period of risk-aversion related to the Financial Crisis.


DAILY CHART - PENNANT CONSOLIDATION

DAILY CHART- OPEN TRADE

To take advantage of this strong trend, entry took place shortly after the currency pair broke a Counter Trend Line (CTL) to resume the trend. The Stop Loss was placed at the Resistance of the Pennant on the 4 Hour Chart and the target set to just above the Support Line.


4 HOUR CHART

As you can see from this chart, someone could actually enter another short position now following this recent U-turn and strong Bearish Candle signal. The Stop Loss would be place above the high of this CTL break.

The strong inverse correlation between the EURO USD and the USD CHF can also be used to capture additional profits. The USD CHF is now headed to an Outer Downtrend Line in a slow steady uptrend that could provide some additional pips when that target is hit.


USD CHF - RALLY TO OUTER DOWNTREND LINE 

DAILY CHART - UPTREND 

These targets could be hit within the next two weeks and can provide large gains for the patient Swing Trader.

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Contact: shepherdduane@gmail.com

Twitter: @WorldWide876

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More info for 38 PIPS GONE IN 277 PIP EURO USD TRADE ~ forex end of day trading system:

100 PIP TRADE ON AUD NZD - once a day forex trading system

100 PIP TRADE ON AUD NZD ~ once a day forex trading system

After pulling back from a short-lived breakout above its large Pennant setup recently, this pair now seems to be forming a small Range at the Resistance of that Consolidation. This created an opportunity to go long as it began to form the 1st Support point of this new setup. Entry took place using the signals on the Daily and 4 Hour Charts to provide a quick 100-Pip trade between Friday and Monday morning.

From the Daily Chart below, we can see the Pennant setup that was initially broken to start a rally in favour of the Aussie dollar. However, this would last for only a few days before the pair returned to the Resistance.



DAILY CHART- BREAKOUT & PULLBACK

The nature of the candles that had pulled back to this Resistance suggested that a small Range was going to be formed. These bearish candles were small and slow and are the type normally associated with the start of a Consolidation setup. These candles were then followed by a Bull Candle that pointed to the formation of the 1st Support area and the start of the rally to form the first uptrend of the Range.


DAILY CHART- START OF RANGE

 

On the 4 Hour Chart, we could see further evidence of this imminent move. Inner and Outer Downtrend Lines were being broken as the Daily Chart formed that strong Bull Candle signal. This was followed by a break of a Counter Trend Line (CTL) that pointed to the continuation of this rally.


4 HOUR CHART- BULLISH SIGNALS

Entry then took place at that Bull Candle, with the Stop Loss below the low of this U-Turn. The target was set to just below where the Resistance of this Range would be formed.


4 HOUR CHART- ENTRY SETUP

After only 20 hours of actual market activity between Friday and today, the target was hit.


4 HOUR CHART- TRADE RESULT

 

Confirmation that the target was correctly chosen came in the form of that large Bull Candle. These candles are strong indicators that a trend has ended and will be followed by a period of sideways movement and market indecision.

Trading opportunities such as these tend to be seen when the market is about to start a period of consolidation with limited liquidity. One of the main drawbacks of these setups however, is the uncertainty of the targets if the opposing boundary of the Consolidation has not yet been formed. Setups that may appear to be forming a Range could actually turn out to be a Pennant.


POSSIBLE PENNANT SETUP

This would reduce the number of Pips available and lead to a quick, unexpected loss as the market pulls back sharply to start the next bearish wave. This is one of the risks discussed in my current Trading Manual as well as in the upcoming one focused on Consolidations. If a Pennant was the actual setup being formed here, the distance between Resistance and Support would have been too small to justify trading. In such a scenario, it would be better to wait until a breakout actually takes place to then trade it with greater certainty and a larger Pip target. 

___________________________________________________________

RECENT EMAIL FROM CLIENT

___________________________________________________________

____________________________________________________

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 100 PIP TRADE ON AUD NZD ~ once a day forex trading system: