Forex Chart Pattern Recognition technique on the Breakout System

[mystikal]

Originally posted by forexgreenland:
[QB]
[10:13:27] Stalion : sell stop for gbpusd @ 1.7840,1st target @ 1.7659

[/QB]

[QB]
[10:13:57] Stalion : 2nd target @ 1.7592[/QB]

[QB][10:19:15] Stalion : no probs....had to take it from the monthly timeframe, so it might take a lil while before it gets

fulfilled'[/QB]

 

[onwukarisa]

Re:

Hello mystikal,

Please when using MACD for divergences what should i use: the trough that form when red and blue lines cross or the histogram of the MACD . Please Advise.

Onwuka Arisa

 

[mystikal]

[10:00:53] Stalion : BUY STOP ON GBPUSD@ 1.7635, 1ST TARGET @ 1.7713, 2ND TARGET @ 1.7755, 40

pip stop loss..
We are looking at approximately 120 pips here,$120 minilot,$1200 standard lots on cable

 

[onwukarisa]

Re:

Hello Great Mystikal,

Please i hope you wont be offended if i ask this question:

How do you exactly know which part of the chart or graph that you have to choose as a 1-2-3 top or bottom before applying your analysis and calculations. i have noticed that you select some parts and leave the others where i also think that a 1-2-3 formation forms. please if there are any conditions or factors you have to put into consideration before choosing for a 1-2-3 top or bottom,please let me know.

Expecting a reply

 

[mystikal]

Originally posted by forexgreenland:
[QB] [10:00:53] Stalion : BUY STOP ON GBPUSD@ 1.7635, 1ST TARGET @ 1.7713, 2ND TARGET @ 1.7755, 40

pip stop loss..
We are looking at approximately 120 pips here,$120 minilot,$1200 standard lots on cable [/QB]

Can't win them all Forexgreenland

Yes, Stuart, nothing is 100% perfect in trading as well as in life..Though we got stopped out on 40 pips, 7 pips less to hit our target,we still locked in profits of +20 or more pips along the way..If you noticed, price on the cable(GBPUSD) eventually shot through our target points, with more extra pips for good measure.

http://i32.servimg.com/u/f32/11/82/15/01/gu0910.gif

Hello mystikal,

Please when using MACD for divergences what should i use: the trough that form when red and blue lines cross or the histogram of the MACD . Please Advise.

Onwuka Arisa
***************
Hi Onwuka, if you observed, we used the MACD Histogram from the 1st chart to ascertain whether there was divergence or not. The Macd Histogram told us that price was overbought and buying pressure was reducing, which was a precursor to the downward movement on the charts. In order words, MACD Histogram was telling us that the bullish momentum was tapering off. There was also a bearish hammer and a trendline break to the downside, telling us to cover our longs.
If I had to choose between the trough that form when the red and blue lines cross(MACD proper) or MACD Histogram, I'll choose the Hisogram because it is much faster...Notice from the chart above that MACD was trailing behind its Histogram, which would have been quite slow in forwarning us to cover our longs or take profits at that level on the charts.
Anyways, we learn from our mistakes.

http://i32.servimg.com/u/f32/11/82/15/01/gu1210.gif

140 pips less our 40 pips that was stopped out on the 9th, which gave us 100 pips net, $100 minilot,$1000 standard lot on Friday.

 

[mystikal]

[09:26:43] Stalion : price on the gbpusd looks like its retracing downward from last week's bullish run

[09:31:46] caprica1 : yeah its going towards the current overnight low

[09:38:04] Stalion : there's negative MACD divergence to price on the charts...we are looking for a convincing trendline

break to go short on gu

[09:54:07] Stalion : SELL STOP ON GBPUSD @ 1.7970, 1ST TARGET @ 1.7875, 2ND TARGET @ 1.7788

[09:59:54] Stalion : u can put a sell limit on our entry if you came in late or buy at current market price..

[10:02:40] eugen3000 : limit triggered

[10:02:44] eugen3000 : hi Stal

[10:04:20] Stalion : at what price, eugen?

[10:04:48] Stalion : price is at 1.7991 now

[10:05:25] eugen3000 : 7970 like you wrote

[10:06:49] Stalion : yea

[10:10:35] Stalion : lets sit back and relax, eugen....

[10:49:19] Stalion : LOCK HALF PROFITS AT +20 TO +30 PIPS,WHILE PUTTING STOP LOSS TO ENTRY

LEVEL..

[11:00:00] caprica1 : jot back Stal. Whats this about a sell stop?

[11:00:06] eugen3000 : did it

 

[onwukarisa]

Re:

Hello Mystikal,

Thanks alot. you answered my first question but you didnt answer the second. the question is :

How do you exactly know which part of the chart or graph that you have to choose as a 1-2-3 top or bottom before applying your analysis and calculations. i have noticed that you select some parts and leave the others where i also think that a 1-2-3 formation forms. If there are any conditions or factors you have to put into consideration before choosing for a 1-2-3 top or bottom,please let me know.

Expecting a reply

 

[mystikal]

Hello Mystikal,

Thanks alot. you answered my first question but you didnt answer the second. the question is :

How do you exactly know which part of the chart or graph that you have to choose as a 1-2-3 top or bottom before

applying your analysis and calculations. i have noticed that you select some parts and leave the others where i also think

that a 1-2-3 formation forms. If there are any conditions or factors you have to put into consideration before choosing for

a 1-2-3 top or bottom,please let me know.

Expecting a reply

Hi Onwuka,
We give glory to God for He is Great. To know which part of the chart or graph that you choose as a 1-2-3 bottom or

top requires practice and patience. We could say it hides from most traders that are not aware of its pattern on the

graphs and on the other hand, reveals itself regularly to some that are familiar with its occurence on the charts.
If you observe the Eurodollar(EURUSD) chart on the 15th of September, we could see the 1-2-3 top being numbered.
The 1 is always the swing high at the peak or apex...2 is an intermediate low and 3 is a lower high that failed to retest the

1 level(swing high).

At the break of the 2 level, it confirms the downward/ bearish movement of price and also validates the concept of the

1-2-3 top.
A 1-2-3 top is usually seen at the end of an uptrend, while a 1-2-3 bottom is usually seen at the end of a downtrend.
Hope you now understand...

Please feel free to ask questions or make comments...

Originally posted by zero:
[QB] IS FOREXGREENLAND POSTING THOSE TRADE CALLS
BEFORE OR AS HE MAKES THE TRADES OR IS HE
POSTING TRADES THAT HAVE ALREADY MYSTERIOUSLY
RUN THEIR COURSE?

CUZ POSTING TRADE CALLS AFTER THE FACT ISNT
VERY IMPRESSIVE AT ALL. I HOPE THAT IS NOT
WHAT YOU ARE DOING. CUZ I'LL BE ALL OVER YOU
LIKE STINK ON A TURD. MAY GOD HAVE MERCY ON
YOUR SOUL IF THATS YOUR GAME.

''Mysteriously run their course? What do you think this is, zero? A mystery moovie? Wake up and smell the roses without

stinking, mon ami...
Those participants you read on the chats are real live traders from different parts of the world who are serious about

making money in forex trading. They earn and learn while those trade calls are made,real time, online and the only game

they are interested in playing is forex.
Need I say more???
MAY THE GOOD LORD HAVE MERCY ON US ALL..

Originally posted by rodney:
[QB] The world financial system is in a mess with prospects of the global credit bubble bursting according to many

credible pundits. We will explore why bubbles form and why they burst from an Austrian Economics perspective. We

will also explore why cash and cash equivalent in times of deflation - yes, I said deflation - is your best asset hedge

against the bubble bursting. We will also cover specific trading ideas to win in this globalization 3.0 era, and how to

preserve capital and profit.Why will be the role of gold and silver ? T.Bonds? Dollar index, etc. Will the major and

regional banks in US lose $2 trillion in capital as forecast by a famous NYU Economist?

_____________
rodney

Foreclosed Homes[URL] [/QB]

Hi Rodney, we'd be glad to have your constructive theories on the global economic dynamics that is happening right

now...
But dont you think holding cash or its equivalent might not really be an hedge coz of its declining

value(depreciation)against market forces?
And how does the Austrian Economic perspective on cyclical trends(bubbles and bursts) fit in with the much larger EU

perspective of the same phenoma?

 

[mystikal]

Sell stop on GBPUSD @ 1.8321...1st target @ 1.8275,2nd target @ 1.8245, 3rd target @ 1.8207

 

[mystikal]

Conversations With Forexgreenland (The Matrix Pt 1)

[quote author=Stalion link=topic=24.msg147943#msg147943 date=1222040241]
Sell stop on GBPUSD @ 1.8321...1st target @ 1.8275,2nd target @ 1.8245, 3rd target @ 1.8207
[/quote]

Chris Taylor (9/22/2008 10:25:28 AM): I got stopped out on te cable trade during the nite.

Stallion (9/22/2008 10:29:35 AM): how come you got stopped out,cap?

Stallion (9/22/2008 10:30:36 AM): didnt u get to 1st target b4 putting sl to entry?

Chris Taylor (9/22/2008 10:32:08 AM): I set the trade up at 12:35pm GMT and got stopped out at 04:35am. It never

got lower than 1.8262, that was after I got stopped out.

Stallion (9/22/2008 10:32:30 AM): Sell stop on GBPUSD @ 1.8321...1st target @ 1.8275,2nd target @ 1.8245, 3rd

target @ 1.8207

Stallion (9/22/2008 10:33:06 AM): it got lower dan 1.8275 to 1st target....how come you got stopped out?

Stallion (9/22/2008 10:33:28 AM): dat was around 2a.m this morning

Chris Taylor (9/22/2008 10:34:45 AM): the time I entered the trade it went up. Got stopped out, then it went back

down. I was in bed asleep so couldn't re-enter.

Stallion (9/22/2008 10:35:28 AM): awwwww!!

Stallion (9/22/2008 10:35:39 AM): u took the signals late

Chris Taylor (9/22/2008 10:37:07 AM): i didn't check my emails till half 12. I see where it hit past 1st target, but I was

asleep then so wasn't able to take any pips.

Stallion (9/22/2008 10:37:57 AM): no probs...we are looking at a long gu trade right now...

Chris Taylor (9/22/2008 10:38:24 AM): OK. Any ideas on entries yet?

Stallion (9/22/2008 10:39:44 AM): yea....entries asre the most delicate part in trading...u might be right in going bullish or

bearish...but if ur entry is too late or too early, d stops are out..

Stallion (9/22/2008 10:54:09 AM): Buy Stop on the gbpusd @1.8480, 1st target @ 1.8530, 2nd target @ 1.8565, 40

pip sl..

Chris Taylor (9/22/2008 10:55:11 AM): brb need to re-boot pc.

Chris Taylor (9/22/2008 11:15:31 AM): I've still got 2 pending sell stops on cable Stal. Should I be deleting them?

Stallion (9/22/2008 11:16:08 AM): yea....delete d pending sell stop for now....

Stallion (9/22/2008 11:16:21 AM): we r going for the buy stop

Chris Taylor (9/22/2008 11:16:35 AM): ok

Chris Taylor (9/22/2008 11:23:34 AM): do you use the MACD indicator on your charts?

Stallion (9/22/2008 11:25:12 AM): I rarely do, cap....I prefer taking signals straight from the charts...

Chris Taylor (9/22/2008 11:26:09 AM): ok

Chris Taylor (9/22/2008 5:05:41 PM): I've staerted adding the spread and on the longs, and rounding to the nearest

whole number. My entry was then 1.8485. then I put my 40 pip stop from there.

Chris Taylor (9/22/2008 5:06:20 PM): I also made another 110pips on a 123 patttern I saw on the EURJPY this

morning.

Stallion (9/22/2008 5:06:33 PM):

Stallion (9/22/2008 5:06:38 PM): way to go, man

Chris Taylor (9/22/2008 5:07:20 PM): Dont expect that every time. Just been fortunate I guess with the last 2 I found.

I'm not complaining though

Stallion (9/22/2008 5:12:42 PM): yea..

Chris Taylor (9/22/2008 5:47:41 PM): you there dude?

Chris Taylor (9/22/2008 6:18:14 PM): we're almost at 2nd target for the long cable Stal

Stallion (9/22/2008 6:20:53 PM): yea...

Stallion (9/22/2008 6:21:23 PM): remember ur trailing stops,man

Chris Taylor (9/22/2008 6:21:31 PM): I moved my stop to +20 from entry and added a 20 point trailing stop.

Stallion (9/22/2008 6:21:55 PM): yea...forget about targets for now....jus ride with it..

Chris Taylor (9/22/2008 6:22:29 PM): I have a target price of 1.8600, but I'l have to keep adjusting that as it goes on.

Chris Taylor (9/22/2008 6:24:26 PM): do you think a 20 point trailing stop is enough?

Stallion (9/22/2008 6:25:14 PM): a 25 point might be better...

Stallion (9/22/2008 6:25:31 PM): price is at 1.8579 right now..

Chris Taylor (9/22/2008 6:25:52 PM): yeah and still climbing as well.

Chris Taylor (9/22/2008 6:26:05 PM): changed trailing stop to 25 points now then.

Stallion (9/22/2008 6:27:46 PM): cool

Chris Taylor (9/22/2008 6:28:45 PM): has there ben some news, because the EURUSD is fling as well.

Stallion (9/22/2008 6:31:23 PM): jus technical analysis, man...am 105 pips in profits as we speak on the gbpusd buy

order..

Chris Taylor (9/22/2008 6:32:25 PM): I think the price of oil has risen again today, maybe thats why the dollar is doing

what its doing.

Stallion (9/22/2008 6:33:58 PM): lol...oil and dollars don mix like 2 d**ks, else dey find demselves in serious sh**t

Chris Taylor (9/22/2008 6:34:28 PM): 2 d**ks certainly dont mix! lol

Stallion (9/22/2008 6:35:12 PM): 106 pips, $106 minilot,$1060 standard lot on gbpusd, less 40 pips.

Chris Taylor (9/22/2008 6:36:15 PM): I'm at 101 pips. Just seen the 123 bottom pattern on the cable 15M chart as well

for today. lol

Stallion (9/22/2008 6:41:10 PM): cool..