EURO USD TRADING GAIN AHEAD OF STRONG REVERSAL - forex lines 7 trading system review

EURO USD TRADING GAIN AHEAD OF STRONG REVERSAL ~ forex lines 7 trading system review

The EURO USD provided us with a small trading gain of 46 Pips on Thursday as we took advantage of the sharp Bullish Reversal that was predicted in December 2015. The original trading target was 165 Pips but by the end of the Holding Period established for this trade this had not been hit, obligating us to close our trade for the smaller profit. During this trade, a sharp bearish pullback had threatened our Stop Loss, coming within 5 Pips of taking out our trade. 

This pullback would have tempted many to exit the trade for fear of being stopped out. However, thanks to the rule that we have of never looking at our trades while they are open, we were able to capture this trading gain as the market u-turned and rallied once more. As a result, this trade, combined with the 138 Pips from the GBP USD, has now given us a good start to 2016 with a Rate of Return of 9.4%.

The screenshot below is taken from the Private Video Analysis we did for the EURO USD in December which predicted the sharp rally. 

As can be seen from the current patterns for this pair, this was exactly what occurred in the last few days. This provided us with the trading gain as we entered at one of the Bullish Candlestick Signals.

The chart below shows our Entry Setup on the 4 Hour Chart, including the original target that was set at the Resistance Boundary of the Range.

Entry and our Stop Loss placement were done using this ABC setup - a setup that was predicted a few days earlier...

Now this is where it got interesting. For traders who choose to follow their trades, the pullback that took place after entry would have led many to close the trade as the market began reversing towards the Stop Loss.

This would have led to an unnecessary loss instead of the trading gains offered by the rally that eventually took place. The temptation to monitor our trades while they are in motion is very common. It is very natural to want to ensure that our trades are heading towards our targets without any pullbacks that threaten our Stops. While this can prevent some losses, it is a habit that can affect our long-term profitability. 

The Forex, like all markets, has a natural tendency to move in waves towards its daily, weekly, monthly and yearly targets. This reflects the changing value of currency pairs in response to changes in economic fundamentals and investor sentiment. It is therefore necessary for us to expect this for all our trades and not interfere. This is why it is crucial to adjust your platform so that you do not see the chart of the trade open nor the balance but only the tab that shows you whether the trade is still open.

Another important issue related to this trade was the Holding Period. Keeping our trades open for too short a period can curtail our profitability while having them open for too long can expose us open to unnecessary volatility. It is for this reason why a specific time period is used for each type of trade to establish a balance between these two extremes. 

When the Holding Period for this trade had ended, we had to close the trade regardless of the floating profit/loss at the time. This decision was later proven to be accurate as you can see from the pullback now taking place.

This trade highlighted many of the important things we need to succeed at trading over the long-term. These relate to the technical factors that determine our decision to execute a trade but more importantly the emotional aspects of trading - the traders Achilles Heel. 

Watching our trades can feel like the right thing to do to ensure profitability given the volatility of this market. However, this can be a serious hindrance to success if this leads to the habit of constantly closing trades before they have a chance to hit our targets. By adhering to the rule of not watching your trades and obeying the Holding Period, you will be assured of maximum gains for each trade ahead of sharp market reversals.

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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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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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ANOTHER FALSE BREAKOUT ON THE EURO USD - m1 forex trading system

ANOTHER FALSE BREAKOUT ON THE EURO USD ~ m1 forex trading system

Many traders will now be wondering why the 2 strong Bullish Breakout attempts on this pair have been met by sharp Bearish reversals in favour of the USD? The Bull Candle Signals given on the Daily Chart appeared to be strong enough to justify entry and provide sharp EURO gains, yet on each occasion, the Bears took control aggressively to pull us back inside of the Pennant Setup. So are there explanations for these reversals that are all so common across the Forex Market or should we put them down to just being random movements?

The Pennant Setup on the Daily Chart was formed by waves of Uptrends and Downtrends since June of this year. Within the last few weeks, we saw the first attempt to break out of this attempt with a strong Bull Candle at Resistance. However, this was followed up by sharp Bearish Candles that took the pair back inside of the Consolidation.

DAILY CHART- FALSE BREAKOUT SIGNALS

After only managing to reach half-way inside of the Pennant, we saw another attempt to head higher and breakout once more. This was given with a smaller candle signal but a very strong one nonetheless that usually leads to successful breakouts. Yet, once more, the Bulls were taken out by sharp Bearish Candles that have taken us back below the Resistance boundary. Based on this, it is very possible that we see a break to the Support boundary at 1.0815.

DAILY CHART - EXPECTED BREAK TO SUPPORT

These scenarios are very common traps that lead to trading losses. Breaks of Consolidation barriers are usually strong indicators that a profitable move will take place, offering large gains in a very short time. So it is no exaggeration to say that these losses can be surprising and frustrating for traders -especially when the signals are strong.

Based on what I have observed in the market over the years, I have found that there are 3 main categories of Breakout Signals that appear at Consolidations and only 1 of these leads to profitable breakouts. I have also noted that these candles also have to break the Resistance/Support boundary by a large enough distance in order to justify entry.

TAKEN FROM THE TRADING MANUAL 

("Successful Currency Trading With the Daily & 4 Hour Time Frames"-
Available as part of the Swing Trading Course at www.drfxswingtrading.com)

The first Candle that attempted the break out is one of those that have a low probability of success and should be avoided. The 2nd Candle is actually one of those that are normally safe to trade but the distance by which it broke the Resistance was not enough. Ideally, more than half of the body of the Candle needs to close beyond the boundary.

DAILY CHART- TYPES OF BREAKOUT SIGNALS

In order to have a correct signal, therefore, the type of candle and the distance of the breakout need to be appropriate. Once you are able to identify these types of Candles and examine if they should be traded based on these and other criteria in the Trading Manual, you will be able to avoid these traps and focus on those that lead to profitable moves.

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FOREX TRADING MANUAL TRADING SERVICES - forex london open trading system

FOREX TRADING MANUAL TRADING SERVICES ~ forex london open trading system

The ability to accurately forecast and profit from the movements on the Forex Market is what you will enjoy with this Trading Manual and Swing Trading Services.

DRFX FOREX SWING TRADING

With this Manual, you will learn the Techniques based on Candlestick Patterns that determine market direction every day. Youll be able to apply this knowledge to your Swing, Day Trading or Scalping strategies for Maximum Returns every week, as you trade your way to Long-Term Wealth.

PREDICTING MARKET DIRECTION & PATTERNS

There are times when you may be trading what appears to be an Uptrend on the 30 Minute Chart only to realize that this was part of a temporary reversal on the Daily Chart leading to unexpected losses. These problems are easily solved with the Manual as you’ll discover the main Technical Factors of the Daily and 4 Hour Charts that allow you to accurately identify Market Direction and predict Candlestick Signals.

Consolidations are easily the most profitable and yet the most feared market pattern for Forex Traders. Identifying when they have been formed is enough of a challenge. However, when you add the difficulty of distinguishing between profitable and False Breakouts, trading them can feel a lot like guess work.

The Trading Manual takes the guess work out of Consolidations. You’ll be given the tools that allow you to determine the best time to trade Breakouts and learn how to correctly draw Consolidations to spot breakout signals. You’ll discover the strategies behind spotting False Breakouts so that you’ll only be trading when the time’s right, exiting ahead of Market Reversals.

The Currency Market has a small set of Candlestick Patterns that are repeated every day on all time frames. These are seen on all Time Frames but they are more reliable and profitable on the Daily and 4 Hour Charts. Once you know what these Patterns are, how they work and when to trade them, youll find yourself being able to

• Confidently Choose More of the Right Trades at the Right Times

• Place your Stop Losses at the Safest Areas

• Target Larger Pips Per Trade Each Week

• Exit Ahead of Major Reversals

Making money from the Currency Market requires targeting the best trades every month that have the highest chance of success. Most of these will come from the larger movements of the Higher Time Frames due to the greater reliability of the patterns and signals that they provide. The key, therefore, is to apply a set of strategies that will allow the trader to take advantage of these consistently and objectively. As long as the rules that underlie these strategies are obeyed, the trader will have the ability to make this market his/her personal source of Long-Term Wealth.

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EURO CAD AT MAJOR TREND LINE MAJOR REVERSAL - free forex trading system software

EURO CAD AT MAJOR TREND LINE MAJOR REVERSAL ~ free forex trading system software

After completing a large Bear Crown Setup on the Daily Chart, the currency pair declined significantly to complete its 2nd Weekly Range in favour of the Canadian Dollar. Traders who were lucky enough to have traded in this direction, would have been able to capture some of the 700 Pips on offer throughout this decline.

DAILY CHART

Having now exited from their short positions, traders would now be patiently contemplating the next move for this pair. Given the fact that we have settled on top of a major Uptrend Line that has been in place since 2012, they will have to especially careful with what takes place next.

DAILY CHART

In general, whenever trend lines are hit, there is usually a pullback that leads to a trend reversal or a break to continue the existing movement. However, the more significant the Trend Line the greater the likelihood of a reversal to either start a new trend or resume the major trend that had been defined by this Trend Line. With the Currency Pair having hit such a significant Trend Line and the fact that we have also come to the end of the Monthly Range, we are likely to see a strong rally that resumes the overall uptrend.

DAILY CHART

Such a rally would not take place in a very short time, however, as currencies tend to move sideways in the form of a Range or Pennant before starting a new trend. This tends to happen at major Trend Lines, Weekly & Monthly Ranges and the Support & Resistance of major Consolidations. As such we are likely to see a long period of volatility before a clear trading opportunity takes place. But when it does start, several hundreds of pips are likely to be on offer as they were in this recent downtrend.

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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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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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___________________________________________________________

____________________________________________________

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 

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