Forex Chart Pattern Recognition technique on the Breakout System
- Thread starter mystikal
- Start date
luck and trading
Helloo fellow traders,
We made up to 55 pips last friday as price rocketed up from 1.9780 to 1.9835, giving us something to celebrate for d weekend.
Cor blimey,fxscalper2, does seasoned traders believe in luck while trading the markets?
Napoleon Hill, in his timeless classic, THINK AND GROW RICH, referred to luck as when OPPORTUNITY meets PREPARATION.
Loius Pastuer,the great 19th century french scientist, on discussing the role of chance in scientific discovery stated ''In the field of observation, chance favours only the prepared mind''.
How prepared are you, fxscalper?
How vigilant are you when profitable setups recurr in the markets?
How ready are you to take advantage of timing in your trades?
After years coaching traders and managing funds, I believe you make your own luck in trading the speculative markets, according to your skills, abilities and hardwork. Besides, the CHART PATTERN RECOGNITION AND PRICE PATTERN STRATEGY is not based on luck neither is it based on the random walk theory.
Helloo fellow traders,
We made up to 55 pips last friday as price rocketed up from 1.9780 to 1.9835, giving us something to celebrate for d weekend.
Cor blimey,fxscalper2, does seasoned traders believe in luck while trading the markets?
Napoleon Hill, in his timeless classic, THINK AND GROW RICH, referred to luck as when OPPORTUNITY meets PREPARATION.
Loius Pastuer,the great 19th century french scientist, on discussing the role of chance in scientific discovery stated ''In the field of observation, chance favours only the prepared mind''.
How prepared are you, fxscalper?
How vigilant are you when profitable setups recurr in the markets?
How ready are you to take advantage of timing in your trades?
After years coaching traders and managing funds, I believe you make your own luck in trading the speculative markets, according to your skills, abilities and hardwork. Besides, the CHART PATTERN RECOGNITION AND PRICE PATTERN STRATEGY is not based on luck neither is it based on the random walk theory.
117+ pips,$117 minilot,$1170 standard lot on Thursday
Hi folks,
hope you'all having a wonderful week trading the currency markets. Lets review what happened yesterday on the GBPUSD. We had the UK Industrial and Manufacturing Production reports,which came out less than expectations(-0.5% actual vs 0.3% previous). That was bearish for the GBPUSD, which supported the CHART PATTERN RECOGNITION and PRICE PROJECTION TECHNIQUE downward bias.
We also had MACD negative divergence to price,which also confirmed our move to the downside.
117 pips approximately, was made yesterday,$117 minilots, $1170 standard lots on the GBPUSD .
1.9766-1.9649=0.0117
1.9688-0.0117=1.9571(target point)
Hi folks,
hope you'all having a wonderful week trading the currency markets. Lets review what happened yesterday on the GBPUSD. We had the UK Industrial and Manufacturing Production reports,which came out less than expectations(-0.5% actual vs 0.3% previous). That was bearish for the GBPUSD, which supported the CHART PATTERN RECOGNITION and PRICE PROJECTION TECHNIQUE downward bias.
We also had MACD negative divergence to price,which also confirmed our move to the downside.
117 pips approximately, was made yesterday,$117 minilots, $1170 standard lots on the GBPUSD .
1.9766-1.9649=0.0117
1.9688-0.0117=1.9571(target point)
106+ pips, $106 minilot,$1060 standard lot yesterday on GBPJPY
Helloo fellow currency traders,
Hope you'all had a nice trading day.Lets review what happened on the GBPJPY (British Pound/ Yen) yesterday. After getting bored seeing 1-2-3 bottoms almost all the time on the charts,surprisingly we had a 1-2-3 TOP show up coming in from the Asian Session. A 1-2-3 top is the direct opposite of the 1-2-3 bottom, which is usually seen in an uptrend, signifying that price is about to go down. MACD was also trending downward which was also a good sign to go bearish. 106 pips was made,$106 minilots,$1060 standard lot yesterday.
And if you observed, price then made a turn around and shot way up after breaching the final target point of 201.88
203.67-202.61=1.06
202.94-1.06=201.88
Helloo fellow currency traders,
Hope you'all had a nice trading day.Lets review what happened on the GBPJPY (British Pound/ Yen) yesterday. After getting bored seeing 1-2-3 bottoms almost all the time on the charts,surprisingly we had a 1-2-3 TOP show up coming in from the Asian Session. A 1-2-3 top is the direct opposite of the 1-2-3 bottom, which is usually seen in an uptrend, signifying that price is about to go down. MACD was also trending downward which was also a good sign to go bearish. 106 pips was made,$106 minilots,$1060 standard lot yesterday.
And if you observed, price then made a turn around and shot way up after breaching the final target point of 201.88
203.67-202.61=1.06
202.94-1.06=201.88
106+ pips, $106 minilot,$1060 standard lot yesterday on GBPJPY
Helloo fellow currency traders,
Hope you'all had a nice trading day.Lets review what happened on the GBPJPY (British Pound/ Yen) yesterday. After getting bored seeing 1-2-3 bottoms almost all the time on the charts,surprisingly we had a 1-2-3 TOP show up coming in from the Asian Session. A 1-2-3 top is the direct opposite of the 1-2-3 bottom, which is usually seen in an uptrend, signifying that price is about to go down. MACD was also trending downward which was also a good sign to go bearish. 106 pips was made,$106 minilots,$1060 standard lot yesterday.
And if you observed, price then made a turn around and shot way up after breaching the final target point of 201.88
203.67-202.61=1.06
202.94-1.06=201.88
Helloo fellow currency traders,
Hope you'all had a nice trading day.Lets review what happened on the GBPJPY (British Pound/ Yen) yesterday. After getting bored seeing 1-2-3 bottoms almost all the time on the charts,surprisingly we had a 1-2-3 TOP show up coming in from the Asian Session. A 1-2-3 top is the direct opposite of the 1-2-3 bottom, which is usually seen in an uptrend, signifying that price is about to go down. MACD was also trending downward which was also a good sign to go bearish. 106 pips was made,$106 minilots,$1060 standard lot yesterday.
And if you observed, price then made a turn around and shot way up after breaching the final target point of 201.88
203.67-202.61=1.06
202.94-1.06=201.88
Evolving your State of Mind Insures Long-Term Trading Success
It has been theorized that your state of mind will dictate your trading methods. Experts in the field of trading psychology have pinpointed three main states of mind and how each has a direct effect on a trader's profitability.
These three mind states are "having", "doing" and "being". Psychologists have noted that those new to trading start with a "having" state of mind. As they gain more experience, they move on to a "doing" state of mind. The pinnacle of profitability occurs when a trader moves into the last and final "being" frame of mind.
The "Having" Mind Set
A novice trader may focus primarily on profits. In this "having" state of mind, they are out of sync with the markets. They are blinded by their obsession to obtain the all mighty dollar and what it can afford them. Trading is not viewed as a job that must be mastered, but as a vehicle to escape from a world of mediocrity.
Many traders are in the business to make money, as well as they should be. However, if they are blinded by greed, they tend to take uncalculated risks. Looking at the potential payoff without carefully calculating market trends and other factors is a recipe for disaster.
It is impossible to graduate to a high performance level when you concentrate on "having" instead of how the game is won. If you trade in a "having" frame of mind, you may become frustrated when profits are not immediately forthcoming. With frustration comes a lack of focus. Without the ability to focus, you cannot gain knowledge from your experience on the trading field.
Other negative consequences of this mindset are feelings of frustration and anger. Frustration stemming from a lack of expected profits and anger directed at oneself or the market in general. These adverse emotions will only cause further decline in profitability. Without witnessing gains from one's efforts, an individual may not give their best and may be tempted to "throw in the towel".
The "Doing" State of Mind
If an individual continues on to trade another day, they will eventually move from a "having" to a "doing" state of mind. Learning that there is more to trading than the amassing of money, a trader will turn their focus on learning new methods of trading and what does and doesn’t work.
This state of mind is still primarily centered on how to turn a profit. Although a "doing" mind state is essential to becoming a seasoned adept trader, the main focus is still short of the mark. It is crucial to know what works and what doesn't. However, a skilled trader will tell you there is more to the business then choosing one method and using it arbitrarily to make trades across the board.
Becoming a trader of means requires not only a winning attitude, but also a fine honing of trading skills. To develop these skills, you must make trades using various methods under a wide spectrum of market conditions. Only then can you develop the needed intuition to master the art of trading.
Pinnacle of Profitability: The "Being" State of Mind
A successful trader almost instinctively knows how to make a trade using the best method available for the current market trend and/or condition. This ability does not occur overnight. It is only accomplished through perseverance, knowledge of various trading methods and learning which one works given a particular market condition.
No trade is ever a "sure thing". However, a profitable synchronicity almost naturally occurs when you are faced with a potential trade, have a feel for the current market trends and conditions, and utilize the method best suited for a potential payoff. This "being" state of mind ultimately lends itself to long-term success in the high stakes of trading.
It has been theorized that your state of mind will dictate your trading methods. Experts in the field of trading psychology have pinpointed three main states of mind and how each has a direct effect on a trader's profitability.
These three mind states are "having", "doing" and "being". Psychologists have noted that those new to trading start with a "having" state of mind. As they gain more experience, they move on to a "doing" state of mind. The pinnacle of profitability occurs when a trader moves into the last and final "being" frame of mind.
The "Having" Mind Set
A novice trader may focus primarily on profits. In this "having" state of mind, they are out of sync with the markets. They are blinded by their obsession to obtain the all mighty dollar and what it can afford them. Trading is not viewed as a job that must be mastered, but as a vehicle to escape from a world of mediocrity.
Many traders are in the business to make money, as well as they should be. However, if they are blinded by greed, they tend to take uncalculated risks. Looking at the potential payoff without carefully calculating market trends and other factors is a recipe for disaster.
It is impossible to graduate to a high performance level when you concentrate on "having" instead of how the game is won. If you trade in a "having" frame of mind, you may become frustrated when profits are not immediately forthcoming. With frustration comes a lack of focus. Without the ability to focus, you cannot gain knowledge from your experience on the trading field.
Other negative consequences of this mindset are feelings of frustration and anger. Frustration stemming from a lack of expected profits and anger directed at oneself or the market in general. These adverse emotions will only cause further decline in profitability. Without witnessing gains from one's efforts, an individual may not give their best and may be tempted to "throw in the towel".
The "Doing" State of Mind
If an individual continues on to trade another day, they will eventually move from a "having" to a "doing" state of mind. Learning that there is more to trading than the amassing of money, a trader will turn their focus on learning new methods of trading and what does and doesn’t work.
This state of mind is still primarily centered on how to turn a profit. Although a "doing" mind state is essential to becoming a seasoned adept trader, the main focus is still short of the mark. It is crucial to know what works and what doesn't. However, a skilled trader will tell you there is more to the business then choosing one method and using it arbitrarily to make trades across the board.
Becoming a trader of means requires not only a winning attitude, but also a fine honing of trading skills. To develop these skills, you must make trades using various methods under a wide spectrum of market conditions. Only then can you develop the needed intuition to master the art of trading.
Pinnacle of Profitability: The "Being" State of Mind
A successful trader almost instinctively knows how to make a trade using the best method available for the current market trend and/or condition. This ability does not occur overnight. It is only accomplished through perseverance, knowledge of various trading methods and learning which one works given a particular market condition.
No trade is ever a "sure thing". However, a profitable synchronicity almost naturally occurs when you are faced with a potential trade, have a feel for the current market trends and conditions, and utilize the method best suited for a potential payoff. This "being" state of mind ultimately lends itself to long-term success in the high stakes of trading.
Buy Windows
Helloo Currency Traders,
Hope you'all enjoying the weekend. Lets review what happened yesterday on the GBPUSD.
Price is on a consolidation range right now on the GBPUSD, so we could put a BUY STOP @ 1.9500,target point @ 1.9531,with a 35 pip stop loss
Maybe I took too much black coffee, no sugar, no cream, like my guy roussell
..Well, we got stopped out before price reversed and rocketed up from our initial target of 1.9531 to 1.9596, approximately 65 more pips than projected. Imagine what you could do with that pile of moolah when you dont argue with money in the bank.
So what happened?How come we got stopped out?This involved not properly observing the difference between a trend and a retracement, while wrongly applying the BUY/SELL WINDOW in the opposite direction..
BUY/SELL windows are one part of trading tools used to implement the ''BUY THE DIPS, SELL THE RALLIES'' rule, a la John Crane's book ''Advanced Swing Trading''
. A buy window is used in an uptrend, while a sell window is used in a downtrend. A 60% buy/sell window is used in trends and retracements in order to know where price might retrace.
'well, during live forex trading, most traders make a recurring mistake of mistaking trends from retracement. A trend occurs when price makes higher highs and higher lows(uptrend) or lower lows and lower highs(downtrend). while a retracement is a price movement in the opposite direction of the previous trend. Buy the dips, sell the rally refers to the retracements of an upward or downward trend..
a general observation of the markets shows that they do not trade in a straight line. There is always a struggle for control between the bears (sellers) and the bulls. In this struggle, each side enjoys victories and defeats.
For example, if a market makes a nice bottom formation after an extended downward move and then retraces up to a price where many chart readers believe the market will run into resistance, the bearish traders will move in and sell. The bearish traders believe that the trend is still down and this correction provides a good selling opportunity.'
So lets illustrate what we are trying to say here, by use of charts;
On the 13th of May, we had a HIGH of 1.9588, which then commenced a LOW of 1.9362.Since it was in a downtrend,we use the SELL WINDOW to ''SELL THE RALLIES''.
The total price range of the original move from A to B is 1.9588-1.9362=0.0226
Now multiple the range by 60% SELL WINDOW= 0.0226* 0.6=0.01356
Add this total to the low; 0.01356+1.9362=1.9498(SELL WINDOW).
This price(1.9498) was the begining of the SELL WINDOW in which we could take a selling position and go short. Observe as price knocked the 1.9498 SELL WINDOW which is now a resistance area.
Knowing in advance where a market is likely to reverse or at least run into support or resistance can help give any trader an EDGE only when ENTERING or EXITING a trade.
This time 15th of May, price formed a new low A(1.9403) and a high of B(1.9525). since it was in an uptrend,I should have used the BUY WINDOW to ''BUY THE DIPS''.
The total price range of the original move from this current A to B is 1.9525-1.9403=0.0122
Now multiply the range by 60% BUY WINDOW=0.0122*0.6=0.00732
Subtract this total from the high; 1.9525-0.00732=1.9452(BUY WINDOW)
This price(1.9452) was the begining of the BUY WINDOW in which I should have placed a BUY STOP and go long. Observe that price formed an INSIDE CANDLE BAR formation(like a railway track) at that area, found support then and went up.
So guys, that was where I made my error...Stuff happens,right? Like my friend nine would say'' 1 AM RESPONSIBLE!':cheesy:.. The most important thing is to go back, know where you made the error, study and learn from it, then move on.
Well, from what was written above, who could help project where price on GBPUSD is going to be by market open on Monday?
First 2 traders that gets the price right BEFORE MONDAY OPEN would have FREE coaching sessions on the CHART PATTERN RECOGNITION AND PRICE PROJECTION STRATEGY.
Please feel free to ask any questions or make any comments.
Helloo Currency Traders,
Hope you'all enjoying the weekend. Lets review what happened yesterday on the GBPUSD.
Price is on a consolidation range right now on the GBPUSD, so we could put a BUY STOP @ 1.9500,target point @ 1.9531,with a 35 pip stop loss
Maybe I took too much black coffee, no sugar, no cream, like my guy roussell
..Well, we got stopped out before price reversed and rocketed up from our initial target of 1.9531 to 1.9596, approximately 65 more pips than projected. Imagine what you could do with that pile of moolah when you dont argue with money in the bank.So what happened?How come we got stopped out?This involved not properly observing the difference between a trend and a retracement, while wrongly applying the BUY/SELL WINDOW in the opposite direction..
BUY/SELL windows are one part of trading tools used to implement the ''BUY THE DIPS, SELL THE RALLIES'' rule, a la John Crane's book ''Advanced Swing Trading''
. A buy window is used in an uptrend, while a sell window is used in a downtrend. A 60% buy/sell window is used in trends and retracements in order to know where price might retrace.
'well, during live forex trading, most traders make a recurring mistake of mistaking trends from retracement. A trend occurs when price makes higher highs and higher lows(uptrend) or lower lows and lower highs(downtrend). while a retracement is a price movement in the opposite direction of the previous trend. Buy the dips, sell the rally refers to the retracements of an upward or downward trend..
a general observation of the markets shows that they do not trade in a straight line. There is always a struggle for control between the bears (sellers) and the bulls. In this struggle, each side enjoys victories and defeats.
For example, if a market makes a nice bottom formation after an extended downward move and then retraces up to a price where many chart readers believe the market will run into resistance, the bearish traders will move in and sell. The bearish traders believe that the trend is still down and this correction provides a good selling opportunity.'
So lets illustrate what we are trying to say here, by use of charts;
On the 13th of May, we had a HIGH of 1.9588, which then commenced a LOW of 1.9362.Since it was in a downtrend,we use the SELL WINDOW to ''SELL THE RALLIES''.
The total price range of the original move from A to B is 1.9588-1.9362=0.0226
Now multiple the range by 60% SELL WINDOW= 0.0226* 0.6=0.01356
Add this total to the low; 0.01356+1.9362=1.9498(SELL WINDOW).
This price(1.9498) was the begining of the SELL WINDOW in which we could take a selling position and go short. Observe as price knocked the 1.9498 SELL WINDOW which is now a resistance area.
Knowing in advance where a market is likely to reverse or at least run into support or resistance can help give any trader an EDGE only when ENTERING or EXITING a trade.
This time 15th of May, price formed a new low A(1.9403) and a high of B(1.9525). since it was in an uptrend,I should have used the BUY WINDOW to ''BUY THE DIPS''.
The total price range of the original move from this current A to B is 1.9525-1.9403=0.0122
Now multiply the range by 60% BUY WINDOW=0.0122*0.6=0.00732
Subtract this total from the high; 1.9525-0.00732=1.9452(BUY WINDOW)
This price(1.9452) was the begining of the BUY WINDOW in which I should have placed a BUY STOP and go long. Observe that price formed an INSIDE CANDLE BAR formation(like a railway track) at that area, found support then and went up.
So guys, that was where I made my error...Stuff happens,right? Like my friend nine would say'' 1 AM RESPONSIBLE!':cheesy:.. The most important thing is to go back, know where you made the error, study and learn from it, then move on.
Well, from what was written above, who could help project where price on GBPUSD is going to be by market open on Monday?
First 2 traders that gets the price right BEFORE MONDAY OPEN would have FREE coaching sessions on the CHART PATTERN RECOGNITION AND PRICE PROJECTION STRATEGY.
Please feel free to ask any questions or make any comments.
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