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;
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:
MAJOR TREND CHANGE EURO JPY EASY 250 PIPS ~ mathematical forex trading system review
The bearish pattern now seen on the EURO JPY as part of a major trend change, could either be one of the largest Bear Crowns you will see in the Forex or a setup for a very large Pennant Consolidation. A small Pennant has just been broken on the Daily Chart that could provide 250- 280 Pips of potential trading gains. However, given the uncertainty of the larger formation taking shape, this might actually be a very risky trade.
The Pennant broken can be seen here along with the potential take profit areas if the breakout takes place. The Breakout Equivalent is the expected target to be hit based on the size of the Pennant, while the Weekly Range is the average distance that this pair moves when it is trending.
DAILY CHART - PENNANT BREAKOUT
DAILY CHART - BREAKOUT TARGETS
On the face of it, this looks like a very straightforward Consolidation Breakout setup with a strong bearish candle signal. If this breakout materializes, the targets would be hit within 3-6 days to give traders a good profit in a market offering very few opportunities. This may even be supported by a very large, though awkward-looking Bear Crown Setup and a movement towards the major Outer Uptrend Line.
DAILY CHART - BEAR CROWN
DAILY CHART - INNER & OUTER TREND LINES
Breaks of Trend Lines that follow the end of a major trend usually lead to movement towards an Outer Trend Line if this exits. However, another look at the setup also gives us the impression that this awkward pattern may actually be a very large Pennant that is being formed. This would mean that a Reversal and False Breakout will actually be the pattern that we actually see that leads to the 2nd Support of this Pennant being formed.
DAILY CHART - CONSOLIDATION ?
This setup actually looks to be the more likely outcome given the unusual pattern of this currency pair. Such large Consolidations also tend to appear when the market is transitioning from the end of a major trend to the start of another.
DAILY CHART- EURO USD
DAILY CHART- AUD USD
Aggressive traders could take the chance to trade this breakout in case we are wrong about this large Pennant. But given the examples of similar setups across the market, it may be better to forgo this one and wait for another, clearer trade setup.
STRONG PROFITS STILL CAPTURED BY EURO USD TRADERS ~ omni forex trading system
Before the Non-Farm Payroll Numbers for the US on Friday, the EURO USD continued to offer profitable short positions for lucky traders. The downtrend on this pair started at the turn at Resistance of the large Pennant at the 1,4000 area, declining by 1,500 Pips. With the pair now close to the Support of this Consolidation formed in the aftermath of the 2008 flight to safety, we could see another period of volatility ahead of a rally back to Resistance or a significant breakout short.
The chart below shows the Pennant that has defined the movements of the Currency Pair since 2008.
DAILY CHART- LARGE PENNANT SETUP
The turn at Resistance took place in May this year, leading to the sharp downtrend that provided strong gains for the US Dollar.
DAILY CHART- SHARP DOWNTREND
Several opportunities presented themselves during this decline for traders as the Support area came in to focus. These trades would have taken place with breaks of Consolidation patterns and Counter Trend Lines on both the Daily and 4 Hour Charts. The most recent one came a few days before the NFP data on Friday and allowed traders to exit ahead of the potentially volatile reaction.
DAILY CHART- COUNTER TREND LINE BREAK
4 HOUR CHART - PENNANT & COUNTER TREND LINE BREAKS
Evening Stars are also a popular bearish signal that can be traded with confidence. Stop Losses are placed above the high of these U-turns. (CURRENCY TRADING WITH THE DAILY & 4 HOUR CHARTS - Section 3 - Currency Patterns & Market Direction) In September, breaks of a Pennant, Counter Trend Lines on the 4 Hour Chart also provided a significant payout for the sharp trader following the continuation of the trend with a break of a Counter Trend Line on the Daily Chart.
DAILY CHART- CTL BREAKOUT
4 HOUR CHART- ENTRY SETUPS
Taking advantage of these trends requires spotting the strongest setups and signals that allow traders to remain in the trade without the need to move their Stop Losses nor monitor their positions. One must also be aware of the targets at which to exit trades so that there arent any unexpected reversals that erode our profits. At the stage of the trend, the proximity of the pair to the Support Level suggests that we are likely to see an upcoming period of sideways movement.
Generally after such larger trends that take us to the boundary of a major Consolidation, the market will pause as it decides on its next move. We could either see a rally that takes us all the way back up to Resistance or a break of Support. Such a break would be significant as it would represent the end of the long period of market indecision on this pair following the safe-haven buying of US Dollars during the 2008 Financial Crisis. Which ever direction materializes, let´s stay prepared with the right strategy for more opportunities that will surely be offered.
