1. Always use a strategy You should have a trading strategy for every trade you do. 2. Always use a stop loss Your stop loss should be the first thing that your strategy gives you . This is what protects your account. If you are letting a trade run and run into a massive defecit […]
Most forex traders use 1 way to trade the markets . Technical Analysis. They do this using indicators , support & resistance lines , trendlines , the list goes on and on. Lets take a look at a typical “trendline trade” We learn that a trendline forms when it touches 3 points on a chart […]
This was book written about 150 years ago, it chronicles historical events where people followed the crowd mentality. The same applies in our trading where popular opinion tells us that we should be trading from pivot , support or reistance levels , expecting a bounce . We have proved that this theory does not hold […]
We are all aware as traders that there are only 3 ways the price on a chart can move , up ,down or sideways. So how do we know as traders which way the price is going to move (note future tense) . The real truth is that we dont. All we can do as […]
Seems to be some divergence occuring here on EURJPY daily chart. We need to be watching the price action if the price drops back down to the lower trend lines for the possbility of a trend reversal.
There is a bearish butterfly pattern setting up on the EURAUD daily chart. The pattern becomes live around 1.3540 so a while to go on it yet , may be a good one to keep an eye on.
Good example here of a Gartley pattern starting to form up and then becoming invalid. All the levels were correct we just had to wait until the D point was formed to take the short . As can be seen the d point was not reached and as soon as the price broke below the […]
Harmonic trading is a trading method that uses defined patterns in an attempt to predict a price reversal of a financial instrument. The actual patterns are generated by previous price reversals at certain fibonacci levels. The assumption is that these patterns when repeated offer a high probability of a successful trade. The patterns are not […]
Here we can see the volumes for the EURUSD currency pair from August 2011 to August 2012 You can clearly see the holiday / low volume periods marked by the yellow areas. These are the times that you do not want to be trading as the lower volumes means that the markets are lacking in […]
We have a Bearish Bat developing on the GBPUSD 4 hour timeframe Has a bit to do yet to get to its predicted D point , but if it does it could be a good one to take back down to around the 1.57 area. One to watch for the longer term. If price breaks […]