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Forex Chart Pattern Recognition technique on the Breakout System

Discussion in 'Forex Trading Systems and Strategies' started by mystikal, Mar 18, 2008.

  1. mystikal

    mystikal Sergeant

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    helloo fellow traders,
    This is mystikal at your service...veteran forex trader and mentor.We are going to be using my CHART PATTERN RECOGNITION AND PRICE PROJECTION STRATEGY to milk some dollars off the currency markets,especially via the breakout system.

    we are looking at the gbpusd pair right now...at 2.0031, we should be seeing a bullish target of 2.0130, based on the 1-2-3 pattern formation.
     
    #1 mystikal, Mar 18, 2008
    Last edited: Mar 18, 2008
  2. mystikal

    mystikal Sergeant

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    98 pips,$98 mini lots, $980 standard lots.

    ''we are looking at the gbpusd pair right now...at 2.0031, we should be seeing a bullish target of 2.0130, based on the 1-2-3 pattern formation.

    Price achieved 98 pips, $98 mini account, $980 standard account, in less than 3 hours after my initial posting.



    [​IMG]

    2.0051-1.9951=0.01
    2.0031+0.01=2.0131(TARGET POINT)
     

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    #2 mystikal, Mar 18, 2008
    Last edited: Mar 24, 2008
  3. mystikal

    mystikal Sergeant

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    Happy Easter,fellow Traders,
    hope you'all enjoying the holidays...markets were kind of dull and quite a little movement was seen from the cross pairs..
    anyways, gbpusd is on an accumulation phase now,where a 1-2-3 bottom has formed...so under normal market conditions, we can see price going from an initial entry point of 1.9847 to a bullish target of 1.9924..dats our first target.
     
  4. mystikal

    mystikal Sergeant

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    77 pips for Easter, $77 minilots, $770 standard lots

    [​IMG]
     

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    #4 mystikal, Mar 24, 2008
    Last edited: Mar 24, 2008
  5. mystikal

    mystikal Sergeant

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    72 pips made on 2nd target, 149 pips total for Easter Celebrations

    20:11:40] Stalion : Hi folks, hope you all having a wonderful Easter....

    [20:19:38] Stalion : anyways, gbpusd is on an accumulation phase now,where a 1-2-3 bottom

    has formed...so under normal market conditions, we can see price going from an initial entry

    point of 1.9847 to a bullish target of 1.9924..dats our first target

    [09:16:30] Stalion : helloo there,everyone...top of the morning

    [09:21:10] Stalion : we made up to 77 pips early this morning on our first target...so if the bullish

    trend continues, we could see price on the gbpusd going up to 1.9966 as our 2nd target

    [​IMG]
     
    #5 mystikal, Mar 26, 2008
    Last edited: Mar 26, 2008
  6. mystikal

    mystikal Sergeant

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    Greetings, fellow Traders,
    What happened yesterday morning? We saw price on the cable(gbpusd) shot up to a high of 2.0110, before exhausting its momentum and going down.

    We could see MACD trending downwards which shows an underlying weakness of the market at that point in time.

    There was a break of the support trendline which signified another cue to go short(sell).

    By applying my CHART PATTERN RECOGNITION and PRICE PROJECTION TECHNIQUE, we were able to get a target point of 1.9954, which made us approximately 79 pips this morning.

    All in a hard day's work,right?

    [​IMG]

    2.0103-2.0024=0.0079
    2.0033-0.0079=1.9954 (target point)
     
  7. mystikal

    mystikal Sergeant

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    Stalion has joined the chat the Thu Mar 27, 2008 9:31 am

    [09:31:59] Stalion : helloo fellow traders....

    [09:32:09] Stalion : hope you'all had a good nite rest

    [09:33:09] Stalion : on the gbpusd today, we should be seeing price going from an initial entry point of 2.0076 to 2.0106
     
  8. mystikal

    mystikal Sergeant

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    [09:45:49] Stalion : 1st target hit!!

    [09:46:23] Stalion : 30 pips, $30 mini, $300 standard lot on a thursday morning

    [09:52:51] Stalion : 2nd target should be 2.0132
     
    #8 mystikal, Mar 27, 2008
    Last edited: Mar 27, 2008
  9. mystikal

    mystikal Sergeant

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    56pips,$56 mini lot, $560 standard lot on a thursday morning

    2nd target hit!! @ EXACTLY 2.0132

    [​IMG]

    2.0073-2.0043=0.003
    2.0076+0.003=2.0106(1st target to the upside)

    2.0099-2.0043=0.0056
    2.0076+0.0056=2.0132( 2nd target point)
     
  10. mystikal

    mystikal Sergeant

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    risk mgt and trader pyschology


    ''If you miss out on those big moves that often
    happen overnight when you're sleeping . . .

    It's not your fault.

    If you have family, friends, or hobbies, etc,
    which take time away from your trading activities . . .

    It's not your fault.

    If you find yourself getting out of the market too
    early because of fear or too late because of greed . . .

    It's not your fault.

    If you haven't found a trading system that works
    for you . . .

    It's not your fault.

    If you find it challenging to actually "pull the
    trigger" and execute an order when you find a
    trading opportunity because you keep second
    guessing yourself . . .

    You guessed it. It's not your fault.

    It just means you're normal!

    Welcome to the club.

    Seriously, who has the time, money, energy and
    psychological makeup to endure staring at charts
    with bloodshot eyes for 12 hours a day?'':clap:

    Not a multitude, I guess. See, richy, its more about risk mgt and trader's pyschology than a good trading strategy.

    Depending on your equity, protective stops are put 35 to 40 pips, below the initial entry point.
    Closing half or a 'third' of the position at the first profit target, then moving your stops to breakeven at the initial price is like standard procedure in risk mgt.

    A trailing stop of 20 to 30 pips(depending on your risk tolerance), without a profit target , is also okay, since you would likely go the maximum distance wen price is on a rip,minus 20 to 30 pips, during retracements.

    For instance, price on the gbpusd might show up a BULLISH GAP when the market opens this Sunday, and we should be seeing price reach up from 1.9944 to 2.0015.
    Remember, there's no 100% perfection in the markets, neither is there a ''HOLY GRAIL''.That is where risk/money mgt comes in,mon ami.:idea:
     

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