70 PIP TRADE DAY TRADING STRESS VS SWING TRADING BLISS ~ forex turtle trading system pdf
The recent 70-Pip trade made on the AUD NZD highlighted the main challenges faced by the typical Day Traders using the Lower Time Frames. This trade required entry at the Bullish Candle Signal that started a breakout from a Range and a large Pennant Consolidation on the Daily Chart. However, Day Traders would have encountered a more volatile picture on the smaller charts that would have severely limited their profitability during this Bullish breakout.
The charts below show the breakout that started the trend that provided the trading gain. Entry took place immediately at the close of the Bull Candle with the Stop Loss and Profit Targets set according to the rules of the strategy.
DAILY CHART - SIGNAL
DAILY CHART - TRADE RESULT
This was a simultaneous breakout from a large Pennant Consolidation and a Range setup at its Resistance. DAILY CHART- TRADE SETUP
In contrast to this fairly straightforward setup, many Day-Traders on the 30 Minute Chart would have faced a more challenging scenario. As we can see in the chart below, the Bullish Candle on the Daily Chart was actually formed by a Range breakout on the 30 Minute Chart.
30 MINUTE CHART
Many Day Traders would have avoided entry here, however, given the size and volatile nature of the candle. The large wick on that candle would also have suggested the end of the breakout, while the subsequent reversal and sideways pattern limited any possibility of a profitable trade.
Nevertheless, a trading possibility eventually appeared on this time frame in the form of another Consolidation breakout.
30 MINUTE CHART- PENNANT TRADE
Entry could have taken place at the Bullish Candle that broke Resistance with the Stop Loss at the Support area. Unfortunately, the breakout for this would have been limited to only 15 Pips ahead of the reversal a few hours later. For scalpers, this 15-Pip gain would have been a good trade, but for others holding out for more, breaking even or incurring a small loss would have been the result. Yet for others who may have held out in hopes of a turnaround, a total loss on the trade would have been suffered.
Following this period, the currency began to move sideways in a volatile pattern, offering very little in the way of tradeable setups.
30 MINUTE CHART - VOLATILITY
Those aiming for small Pips may have been able to scrape out a few more to add on to the 15 Pips. However, the sharp reversals and spikes would have made this a very stressful, losing endeavor. Others aiming for more would also have been left without any opportunity to compensate for the previous losses.
The results from this type of trading over the long-run are often lower than expectations despite the attraction of the smaller charts. The greater volatility and the need to continuously monitor the market at all hours of the day can take their toll on a trader. For Swing Traders on the other hand, only a few hours are spent trading and analyzing the market prior to entry. Instead of aggressively battling a large number of candles at a time, only a few candles stand in the way between entry and profitability.
DAILY CHART - STRESS FREE TRADING
Trading can be a lot more enjoyable and profitable than what many are led to believe. If this is done using the higher time frames that reward the trader rather than the smaller time frames that reward the broker, long-term gains will be made.Spikes that come out of no where to take out our Stop Losses and unexplained pullbacks that reduce our profits can all be avoided.
By using my Methodology and emailing the Code at the end of the Manual and you will also benefit from;
Detailed Trade Setups sent 30 Minutes before Entry;
Daily Analysis of Currency Pairs;
Weekly Technical Analysis on Specific Topics;
A Currency Trading Experience focused entirely on Making Money;
Swing Trading vs Day Trading Has the Debate Ended ~ omni forex trading system review
Within the context of the ongoing debate between Swing Trading and Day Trading, these early results from my Methodology appear to tip scale decisively towards Swing Trading. Only 7 trades have been done so far and to date, the results have already beaten the Year-to-Date returns of 80% of the Top Traders Ranked by BarclayHedge. With only 9 trades left for this strategy to generate a 100% return for my clients (sadly, cost of Manual will go up accordingly- see Table), Day Trading may soon by a thing of the past as you spend less time trading and more time earning.
Currency Trading can be a very lucrative means of earning income on a short and long-term basis. The most popular way of doing this by traders has been to profit from the intra-day changes in a currency’s value, during the most liquid trading sessions of the day. However, given the difficulty of consistently modelling the random price behaviour of a financial asset class at this micro level, sustainable success from this approach can be an elusive goal. Instead, if traders focused on the clearer trends provided by the Larger Time Frames, they can achieve of more consistent rate of success.
Swing Trading takes advantage of the clearer and more reliable breakout signals and trends of the Daily and 4 Hour Charts. It is a style of trading that is similar to Long-Term Trend trading in which positions are taken based on the longer-term fundamental value of a currency. However, given the time horizon of Swing Trades - 2 to 7 days- some of these trades will either be in line with that value or diverge from it in the short-term.
Among the benefits of Swing Trading are;
Stronger Trends with Larger Pips per Trade;
Accuracy of Signals, with fewer False Breakouts;
Predictable Times for Analysis and Trade Execution;
Fewer Trades needed for Large Rates of Return;
Compatibility with a non-Forex 9-5 Schedule;
This style of trading also allows traders to sidestep the volatility surrounding the release of macroeconomic data each week. Several important reports related to the major currencies can provide an indication about market direction during the day. Nevertheless, due to the subjective and conflicting interpretation of these by traders, large spikes in prices tend to appear, taking out small Stop Losses and eroding the Day Trader’s profitability.
In addition to the significant personal benefits, Retail Traders will also be better able to offer their services to Prop Trading houses and Hedge Funds that want this style of trading - earning very large commissions in the process. Based on these early results...
148 PIPS AUD USD 2 WEEKS 2 TRADES 218 PIPS ~ fibonacci forex trading system pdf
This latest trade based on our Price Action, Swing Trading Methodology provided 148 Pips on the Aussie Dollar over a short 4-day period. This took our total gain to 218 Pips in 2 weeks following the 70-Pip trade on the AUD NZD pair at the start of the month. At this rate, we could see a triple digit rate of return for 2014 when these results are combined with previous setups identified by the Methodology. It would also provide further evidence of the stability and higher returns that are possible when trading is done on the Larger Time Frames.
The AUD NZD gain took place following a break of a large Consolidation setup on the Daily Chart. The signal to enter came from a Bullish Candle break of a Range at the Resistance of this large Pennant.
AUD NZD -DAILY CHART SETUP
AUD NZD- DAILY CHART SIGNAL
TRADE RESULT - LIVE ACCOUNT
The chart patterns and candles from FXCM are used to identify the entry signals while the Dukascopy platform is used for trades on the Live Account. The Methodology utilizes the New York Candle close of the Daily Chart as the basis for the Price Action strategy, which is best provided by FXCM.
The AUD NZD was one of the last pairs that saw gains for the Aussie dollar this month. Since then, the currency began to lose value against several of the other major currencies over the last few days. It was within this context that the AUD USD trade opportunity presented itself on Thursday September 11, 2014.
The setup was a bearish break of a large Pennant formed between April and September this year.
AUD USD - DAILY CHART PENNANT
The size of the Consolidation suggested that a breakout could continue for several hundred pips in favour of the US Dollar in the months ahead. However, based on our strategy and a specific technical aspect of this setup, a short-term gain of between 100 and 200 Pips was the more prudent decision.
Entry took place at the third candle that broke the Consolidation with the target set based on the criteria established for this type of breakout. The Stop Loss was also placed at a strategy-determined area to prevent the trade from being affected by spikes along the way.
DAILY CHART TRADE SETUP
After only a few days, the target was hit. Towards the end of the trend, the market actually reversed to the entry price with a Bullish Candlestick Formation. However, a large Bearish Candle shortly followed to take out that attempted reversal and give us our reward.
TRADE RESULT
LIVE ACCOUNT RESULT
TRADE SUMMARY
TRADE TYPE
CONSOLIDATION BREAKOUT
STOP LOSS
116 PIPS
TRADE RESULT
148 PIPS
TIME TO TARGET
4 DAYS
This trend was always expected to provide large gains for the trader in a short time since breakouts from Consolidations always produce sharp movements. In fact, it only took 2 days for the 100-Pip mark to be reached.
DAILY CHART -100 PIPS IN 2 DAYS
Nevertheless, if the trader was looking at the Pip count or the Account Balance on their trading platform, chances are he/she would have started to panic and exit at the start of the bullish reversal to the entry price. If trading was also being done on the 30 Minute Chart, that sharp bullish signal combined with the Trend Line break and the Double Bottoms may have even convinced the trader to start going Long.
30 MINUTE CHART- REVERSAL SIGNALS
The net result would have been a much smaller profit compared to that which was offered by the market. Constantly monitoring the trade and using the Smaller Time Frames will always tempt us to make decisions based on emotions and our ego despite our best intentions. Trades that are objectively analyzed and executed can be easily sabotaged by the desire to always know what is happening with the trade.
Nevertheless, this habit is understandable and expected especially if you are transitioning to the Larger Time Frames. Most of us have been taught by trading companies and brokers to trade in a way that requires us to develop this and other bad habits. We have been led to believe that trading has to be done every hour and every day in order to be profitable. This frame of mind will always lead to certain practices that generate an impatient temperament in us and cause us to constantly make unwise trade decisions. The best thing to do is to persist until these habits are no longer a part of your trading.
Alternately, one could open up a separate Demo Account, practice trading on the Daily and 4 Hour Charts and compare the results with an existing strategy on the lower charts. Over time, you will see the large difference in profitability and appreciate how unnecessary it is to monitor the trade. This can be done using the detailed Trade Setups that are emailed to you as a Subscriber.
TRADE SETUP- AUD USD
PAIR
AUD USD
TRADE TYPE
CONSOLIDATION BREAKOUT
ENTRY DATE
TODAY, SEPTEMBER 11, 2014
ENTRY TIME
21 00 GMT
ENTRY PRICE (MINIMUM)
0,9096
STOP LOSS
0,9216
LIMIT ORDER
0,8952
More info for 148 PIPS AUD USD 2 WEEKS 2 TRADES 218 PIPS ~ fibonacci forex trading system pdf:
Emerging markets stocks vs natural resource stocks ~ forex trading system buy
Emerging market stocks have been reaching new highs almost everyday (see this article in the Economist magazine), and the natural resource sector has been on a tear as well. Given the giddy valuations of both sectors, which one is a better relative buy at this point? For those of you who have been following the IGE-EEM spread that I proposed before, its value is at an all-time-low these days -- it was at -6.77 standard deviations. Given their historical cointegration, I wouldnt be surprised if it will revert to a more sane value in the near future. More info for Emerging markets stocks vs natural resource stocks ~ forex trading system buy:
3 Wave Rule Denies Traders Sharp Gains on GBP CAD ~ oracle forex trading system
After starting what appeared to be a strong Bearish breakout from its Consolidation setup this week, this pair has now started to pull back sharply Bullish, much to the chagrin of Currency Traders. As surprising as this may have been to some, there was a key Technical Factor at work that was always going to have a hand in this reversal that my traders were aware of - the 3-Wave Rule of trends in the Currency Market. There are generally two types of trends that are seen in this market. They will either be sharp and fast with very few pullbacks or slow and steady with waves of U-Turns along the way. Whenever they take the form of waves as was the case in this Range breakout, they will usually pullback and reverse after 3 of these waves are completed. Following this, the pair will either take a break before resuming the trend or start a new trend in the opposite direction (Section 9 - “Consolidation Trading on the Forex Market - A Complete System for Illiquid Market Conditions”). As we see in the chart below, this is exactly what has taken place following the start of the downtrend at Resistance.
DAILY CHART - GBP CAD
The size of the Range, the three strong waves of bearish signals and the breakout at Support, should have meant the start of large Pip gains for short traders in the days that followed. However, as with the other Technical Factors that lead to False Breakouts in this market (Section 6), the 3-Wave Rule would not be denied. After a few days, the currency pair started to pullback with Bullish Candles to deny me and my clients valuable additions to our growing trade results.
DAILY CHART- GBP CAD
Spotting these pullback areas is key to choosing the currencies that can be traded successfully and side-stepping those that will lead to losses. From this point, we could have two alternate scenarios playing out in the days ahead. In the first, this pullback could only be temporary, giving way to a strong U-Turn after testing the Support of the Range. DAILY CHART- TEST OF SUPPORT
In the second scenario, this pullback could actually be the start of a Bullish reversal, supported by what would be the formation of Double Bottoms below this Range. DAILY CHART- DOUBLE BOTTOMS & BULLISH REVERSAL
We would then see the pair rally sharply back inside the Range to the Resistance boundary, over 300 Pips away. Setups and scenarios like these can be seen across the currency market on all pairs and on all time frames with Japanese Candlesticks. False Breakouts are a common occurrence and the 3-Wave Rule is one of the main reasons that they take place to surprise the unprepared trader. Once these and other important factors are incorporated into a comprehensive trading plan, more gains than losses will be realized, providing you with profitable trading results each month.
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