500 Pips Trade set up - forex trading latest news

500 Pips Trade set up ~ forex trading latest news

Welcome to a new trading year - 2011. What I will be discussing this year is taking our trade to higher levels. Looking for those highly profitable set up for the major pairs. This first posting will be on the GBPUSD. The principle are simple as follows:

1. We rely of the weekly chart for the overall direction
2. The daily chart determines whether to buy or sell
3. H4 or M15 for excellent entry.

Based on the above analysis, here is the set up for a potential 500+ pips trade based on Head & Shoulder on the weekly .

a) The weekly trend is up
b) The daily RSI is getting close to 70 RSI and currently withing a possible left shoulder of Head & Shoulder on the weekly chart.
c) It took about 21 days from when the signal was given on the daily and roughly 750 pips so far.
d) The yellow area is where we are watching now. A daily open and close above 1.61140 area will invalidate our head & shoulder set-up. If this happens a second kiss of 1.63000 is possible to give us double top.

Until this happens our H&S is still valid. Furthermore the daily RSI is currently kissing 70 point mark. This means the cable is getting ripe for short. However, we need to see where the daily candle closes today.

If you are ready for a 500-pips or more trade, you can begin to short between 1.610000 - 1.630000 or the first reversal candle (bear candle on the daily). Everything is in the chart!

Enjoy your trading!
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The retrace is almost complete - forex news trader mt4

The retrace is almost complete ~ forex news trader mt4

The retrace which started when price reached around 1.60000 in August is almost complete. I.60000 is the target now. How many days are we going to spend between 1.58385 and 1.60000? I dont know. What I know is that a daily candle above or below the box will signal the next direction.



This daily chart has been valid since August. I will update the daily chart whenever we move out of current box. The daily chart gives the trend, which is still up, the H4 gives signal of when to trade and M15 is for entry.



I have alway said it trading within the concrete zone is the best option for any retail trader who desires success. Afterall, if your Account size is $1,000.00 and you trade 0.10 lots, you only need to make $100 a month (about 100 pips/month or 5 pips/day) to grow your account by 10% monthly. If you are able to achieve this regularly within a year, you will outperform most Funds/Fund Managers.



If you have the above mindset, your success is almost guaranteed in this highly volatile endeavour.



Happy trading!
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Bigger Picture for AUDUSD - forex news.gci trading

Bigger Picture for AUDUSD ~ forex news.gci trading

Audusd is currently trying to move back to the top of the weekly trendline from 0.80634, when the took off to the currently high. The trendline is what it holding the pair from rising higher for now. If the weekly successful opened and closed above the trendline, then the trend will resume on the higher time frame. If the trendline holds, the a fall to 1.02500 which is the base for the current move is possible. A fall below will drop the pair back to its concrete zone 1.02500 - 0.95000 where it traded for the past 6 months.

My view is that a big reverse is in the horizon, the monthly, weekly, daily are all dangerously close to the overbought zone. A touch of 50 point mark is due on the daily RSI.

Recommendation: short whenever H4 enters the yellow zone and take profit if it drops back to the 50 point mark on H4 RSI

This is the bigger picture.
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Cable still respecting the the concrete zone - forex news gun trading

Cable still respecting the the concrete zone ~ forex news gun trading

Cable is still respecting the concrete zone and the pressure is to the downside. For any move to the upside to be valid, the pin on H4 will have to be neutralised by another H4 candle above the pin.
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USDCHF Analysis - forex market moving news

USDCHF Analysis ~ forex market moving news

USDCHF is currently close to its historical low level of 0.96360 recorded in March 2008. The monthly and weekly candles however show that the pair is still descending. This could be attributable to the general weakness of USD against most major currencies. I must admit however, the pair is very tempting for long. The best option if you are trading this currency long-term is to wait for the trend reverse and follow it. A weekly candle close above 0.98963, which is a very strong support will confirm the reversal. This is an area I will be watching


For a short term trade the sell signal was given by M15 on 0.97161. The best option for short term trading is to wait for another signal sell signal on M15.

The points are clearly indicated in the charts below
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The blue zones - forex market gold news

The blue zones ~ forex market gold news

See where we are on the blue zones. It is always useful to plan ahead. I will be updating the blue zones every two weeks
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EURUSD (updated) Trade set up - forex market news indicator

EURUSD (updated) Trade set up ~ forex market news indicator

The EURUSD weekly chart is on an uptrend a continuation of the reversal of the fall from 1.51387. The current move started from 1.18757 and is currently moving into a wedge between the upper and lower trendline. A break of the trendline will determine the next direction

The daily chart is our trading guide. The daily chart has been on the uptrend move for the past fifteen days. The daily RSI is current around 65 point mark. It is getting ready short. Historically EURUSD is capable of going up to 78.750 mark. It is therefore necessary to watch the current move for the next few days until we see the first full bear candle. As you can see there is no bear candle now. Furthermore, a break of the uptrend line on H4 will confirm when this happens.

The weekly, daily and H4 charts are attached
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GBPUSD 220 Pips concrete zone - instaforex news trading

GBPUSD 220 Pips concrete zone ~ instaforex news trading

The Cable is currently forming the left shoulder of H&S on the weekly chart. A set-up which I identified when price was around 1.53500. As long as 1.61000 is not broken this set-up is still valid.



The daily is currently consolidating between 1.58821 and 1.60247, while the concrete zone is 1.60550 and 1.58300 (about 220 pips). Until a daily candle opens and closes outside the box, this zone is still valid.


How do you trade the current set-up? My view is the cable is primed for a fall. In this case follow H4 chart and short anywhere close to the top of the concrete zone, using M15 chart for entry.



Note that it is the big players that determine where they want to take the price. However, the concrete zone trading strategy will expose their intention. The first signal is that daily candle rise or fall within the concrete zone and lose outside it. The next signal is that a daily candle will open and close outside the zone. Then you will know the direction of the big boys.


I attach herewith the daily, h4 and m15 charts in support of the above analyses.



Enjoy your trading!
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Concrete Zones - quantina forex news trader myfxbook

Concrete Zones ~ quantina forex news trader myfxbook

I posted the charts earlier. I re-post again it to show that the analysis is still valid until the range between 1.60000 to 1-53214 is broken either way

For now price will only move to the next level if the daily closed above the resistance line at around 1.58535 or move back to where it came and close below 1.57147.

It is always better to trade within established concrete zones. That way, you will be insulated from the noisy signals all around you.

That is how I trade. The daily shows me the trend, H4 gives the signal and I use M15 to enter my trades. If you trade this way you might miss some trades, but you will only take first class trades.
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GBPUSD See where we are! - forex trading on news or news importance

GBPUSD See where we are! ~ forex trading on news or news importance

Its always a nice feeling when a set-up plays out nicely. The descent has begun, its is a matter of time before we reach 1.56000 while 1.53500 is beckoning

See where we are now on H4 and daily
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GBPJPY Trade Set up - forex market news live

GBPJPY Trade Set up ~ forex market news live

Trading without knowing what is happening on the weekly chart could be described as partially sighted trading. This is more important for the GBPJPY. I have earlier posted critical levels for the dragon. If you want to trade GBPJPY, learn these levels by heart and never trade in between. You can check some few posts before this to refresh your memory on these very important levels.

Let us examine our set up for GBPJPY as follows:

a) The weekly is on a bullish run for the past three weeks and has moved by about 700 pips so far

b) The weekly RSI since September 2009 has been reversing around 50 point mark

c) The daily RSI is currently around 65 point mark – it is get close to
overbought region

d) The next minor resistance is at 133 and a major at 135 area

How to trade this set-up

1. Monitor daily RSI until it reaches around 70 point mark
2. Wait for the next bearish daily candle around this area
3. GBPJPY will give you at least three daily candles or pin on a daily candle
to signal reversal
4. The top for now is 132.54
5. Monitor the next two to three daily candles.
6. 131.24 is the line on the sand now, wait for the daily to
7. Follow the train and know the first stop is at 130.00, with 126-125 area
being the next. Below 125, the possibilities are endless 123, 120, 118, 117.
8. In simple term, get ready to short and look out for at least three daily
candles or pin on a daily candle to signal time to pull the trigger.
Fortunately, yesterday’s (18/1/2001) daily candle gave us the pin.

Happy trading!
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