Forex Academy Quick Links:
Language:
English

1-2-3 Pattern

October 29th, 2007 @ 11:28 pm by Eugene Teplitsky

Click here to read the full article.

This is a video summary of the Live Forex Trading Room session on October 29, 2007.

Today’s Summary, by Sunil Mangwani:

Mondays usually are slow days and we wait for the technicals to settle down before we think of following up with the last week’s trades or looking at intraday. But on Mondays we do look forward, as we get the technical setups for Gap Trading.

The gaps are not present on forex as much as other markets, as it is a continuous market, but on Mondays the market can open with a gap, and currencies will give you excellent setups. Gap trading techniques are very effective. Lets have a look at one of the currencies which gave us an excellent one today.

The NZD/USD gave us a gap, though not a very large one – usually the larger the gap, the larger the move. We wait for the market to come back down to fill the gap, and went in Short upon a Bearish Divergence, expecting the price to fill the gap, which it did. The gap turns into a kind of channel, and price found support at this level. A nice Short trade on the NZD/USD, without all that much effort, which is the main advantage of gap trading. Read the rest of this entry »

Click here to read the full article.

October 28th, 2007 @ 7:42 pm by Eugene Teplitsky

Click here to read the full article.

This is a video summary of the Live Forex Trading Room session on October 26, 2007.

Today’s Summary, by Sunil Mangwani:

Lets go over the long term things first which we’ve been following. On the GBP/USD, we were looking for a breakout on the daily timeframe from a Bullish Flag Formation. Price has been moving with lots of upwards momentum, and so far has remained above the mid channel of the flag. We were expecting a breakout this week, but it has not yet taken place. We have a penetration, but not a close.

On the intraday timeframes we did have an indication that today we might not get the close that we are looking for, because we had a Bullish 1-2-3 Formation. As I always say, “give me a 1-2-3 formation, and I can give you the targets”. We plotted Fibonacci Expansions to determine our targets, and price was rejected at the 127 level, so we do expect some retracement. Today is just not the day for the breakout. Lets see how it goes. Monday we do expect strong upmoves on the GBP/USD. Read the rest of this entry »

Click here to read the full article.

October 26th, 2007 @ 1:51 am by Eugene Teplitsky

Click here to read the full article.

This is a video summary of the Live Forex Trading Room session on October 25, 2007.

Today’s Summary, by Sunil Mangwani:

Lets start with one of the trades we were following since yesterday’s recap – the GBP/CHF on 30 min timeframe. The trigger was a Bearish Divergence. Price made higher highs, while stochastics were giving lower highs. We consider this an aggressive “Class A” divergence. The entry for this trade was determined by certain Fibonacci Retracements, and price did go down beyond our target of 2.3940.

We also use the Andrew’s Pitchfork in different ways to confirm the entry. In this case, the price broke through the midline of the APF, and came back to retest it as a resistance. This is another strong confirmation that a downtrend is in progress. In our room we do like to twist around the technical tools available to give us better results.

Lets go over an intraday trade we ended up taking today. The GBP/JPY, one of the most popular pairs in our room, had a Long trade, though the extent was not too large. As I always say, its the technique and methodology which is always more important than the result. Read the rest of this entry »

Click here to read the full article.

October 23rd, 2007 @ 2:14 am by Eugene Teplitsky

Click here to read the full article.

This is a video summary of the Live Forex Trading Room session on October 22, 2007.

Today’s Summary, by Sunil Mangwani:

Today the markets opened the new week with gaps, and we concentrated today’s trading activites on trading the gap. There is a specific way we trade the gap, which works a lot of the time and gives us the direction of the trend, subsequent to the day.

On the NZD/USD, we had a Short trade which we were able to predict due to the gap strategy, going in right after the price broke out of the gap channel, for a good trade.

The AUD/USD had a similar situation, giving a good entry for a Short trade, though not taken. Read the rest of this entry »

Click here to read the full article.

October 17th, 2007 @ 12:08 am by Eugene Teplitsky

Click here to read the full article.

This is a video summary of the Live Forex Trading Room session on October 16, 2007.

Today’s Summary, by Sunil Mangwani:

As I have mentioned often – its not the trade that is important, it is the method, and the tools you use to analyze your trade. We have an agenda here in the Live Trading Room – to train our members to analyze the markets in the correct fashion. Once you can do that, you are well set on your way, and correct trades should follow.

Lets jump straight into the intraday activity of today’s session.

We have been following the USD/JPY at a longer timeframe, and having been Long on a swing trade, we still expect the price to go further up. Today on an intraday basis we had entered into a Short trade. When you have a trade which is against the main trend, but you have sufficient confirmations, there is no harm in taking it.

Read the rest of this entry »

Click here to read the full article.

October 11th, 2007 @ 12:54 am by Eugene Teplitsky

Click here to read the full article.

This is a video summary of the Live Forex Trading Room session on October 10, 2007.

Today’s Summary, by Sunil Mangwani:

Not much of a day today, but lets go over a couple of things that we’ve been following since yesterday.

The EUR/JPY, since yesterday’s recap and close of the session, we mentioned a 1-2-3 Formation on which we went Long. We have a set of rules and a system for trading the 1-2-3 Formation. It is a classical pullback formation – a continuation pattern in the beginning of a new trend. We use a combination of Fibonacci Expansions and Fans for our confirmation.

We went into our Long trade at the break of a certain level which is a standard entry point we use in our room. We closed off the trade at the 161% Fibonacci Expansion level, which also coincides with a fan level. This was an excellent trade of about 120 points, and the sort of setups we really enjoy looking at, as they are generally stress free and confident. Having faith in your systems is very important.

Read the rest of this entry »

Click here to read the full article.

October 10th, 2007 @ 12:54 am by Eugene Teplitsky

Click here to read the full article.

This is a video summary of the Live Forex Trading Room session on October 8, 2007.

Today’s Summary, by Sunil Mangwani:

Besides the trades that we execute, these recaps are becoming more and more important for the procedures which we use to analyze the trade, and the different tools we have in our toolbox to correctly assess the situation and make a good trade. Lets go over the different procedures we follow which hopefully culminate in a profit.

On the GBP/JPY, 1h charts, what we were looking for is a Hidden Bullish Divergence – waiting for price to come and find support at a Fibonacci Fan level. When it did so, we went Long on this pair, and managed to capture some profit on the upmove. This was a decent trade, but he point is that we identify a situation and use our tools to let price give us a confirmation.

Read the rest of this entry »

Click here to read the full article.

October 8th, 2007 @ 11:36 pm by Eugene Teplitsky

Click here to read the full article.

This is a video summary of the Live Forex Trading Room session on October 8, 2007.

Today’s Summary, by Sunil Mangwani:

Mondays are usually slow days and don’t really have too much movement. We are still waiting for the dust to settle from the opening of the trading week, and this time doesn’t usually give immediate trades.

Lets have a look at a couple of intraday setups that did fit into our desired patterns for an entry. We don’t enter into a trade until we see a technical pattern – something which conforms to our techniques, and lets us formulate a trading plan:

  • Where to enter
  • Where to exit
  • Where we would take partial profits
  • The amount of risk we will accept
  • … and so on

Read the rest of this entry »

Click here to read the full article.

Our Global Forex Community

Follow us on Twitter! Join us on Facebook! Watch us on YouTube! Stumble Us!

Advertising

Next Free Forex Webinar

Free Market Commentaries

Advertising

Blog Archive

Forex Links

Educational Partners

The Geek Knows
AgriMoney.com
Traders' Magazine

Finance Blogs Blogarama - The Blog Directory