Successful Technical Trades
The last few weeks we have had lots of profitable forex trades just from my Sunday analysis. Last Sunday I showed you how we were looking for trend line breaks on lots of forex pairs & many worked brilliantly.
In mid July I explained that in these thinner summer markets you often find price respects technical areas often to the pip. In recent weeks we have had price bouncing between areas of support & resistance. How important fibs are. Macd divergence. M2 trend line break outs & pullbacks of which we had many last week.
If you are still struggling & still “don’t get it” then look back at last Sundays video before you watch todays. There I showed you how we were looking for trend/triangle break outs & pullbacks.
I showed you where the lines were & what to do if price fell into our “trap”. I show in the first part of todays video how one trade on one pair (Euro/Gbp) would have made you more than a weeks target.
I suspect that the fundamental problem is that some of you still do not plan in advance what you are going to do.
If you do not plan & simply react after a movement, you will invariably lose. If you are scared to “pull the trigger” then reduce your stake. Plan your entry, stop & exit strategy before price comes to your area.
Pierre showed a perfect demonstration of this in the forum last week. He had waited for over a week for the Euro/$ to come to his entry. He planned the stop. He planned where he was going to take his 1st profit & second.
Some people seem to get confused about targets & yet the principle is exactly the same as looking for entries. We are looking for logical areas where price is going to stop or at least react; eg recent highs & lows, support & resistance, emas, whole numbers etc ( I show more about choosing targets in the video).
Yesterday I received the following email from one of our members, Frieda who joined forexmentorpro pre Christmas. Frieda has had her struggles with forex the same as everyone else & she has taken her time in getting to her current level.
She has persevered. She has learned the importance of Patience & discipline. She has studied all the videos in the forex strategies page, over & over again. She has reduced the number of pairs that she trades.
She has joined our forum, in other words she has done all that we advise but more importantly she has made a huge effort. Last week Frieda made……drum roll…..1600+ pips!
To see how far Frieda has come in a relatively short space of time, here is her Christmas competition entry: I love a challenge. Retain a sense of humour
This what Frieda had to say yesterday:
Marc, a little note to thank you, again, and assure you that your teaching method is working!!! I had such an awesome week that I cannot believe it myself. I keep going to my platform to check and double check, but it was not a dream. … So far in august, in just the last week, I made 1600 and a few pips.
Wednesday, I quickly closed all my trades when I realized I made 1000 pips in one day, trying to close them before I went even a pip below 1000. And, I just opened a Meta4 account with forex.com-uk, that I also quickly got from US $500 to $832 in the last week. Hard to believe.
After that, on Friday, I opened a trade to promptly close it at 6 pips, because I knew I should not have been trading. I did that twice, then successfully managed to shut off the computer.
I promise myself I will only make trades that are planned and can be justified, with traps set ahead of time. Last minute decisions will have to go on the demo. Now I am just so scared to lose it all again, I will have to force myself to pull the trigger, next time a good one comes around.
But I know I can do it, at least after analysing your analysis. The analysis, the patience, the money management part, stop losses, and very importantly, confidence, as well as the famous moveondotcom, when a trade goes wrong, ..it’s all coming together. poco a poco. (well, this week was not poco 
)
Next week, though, I shall be extremely satisfied with 100 pips for the week?
gracias por todo. Frieda
Absolutely fantastic achievement Frieda. I know from private emails how much effort she has put in & that it has not all been plain sailing. I take my hat off to you & hopefully those who are struggling will take comfort.
One of the recent competition entries had the following quotation that I think sums it up perfectly: “Treat forex like a hobby & it will pay you like a hobby. Treat it like a profession & it will pay you like a professional”
If you are struggling at the moment then take heart from Frieda’s story ( I get dozens of similar emails every month). There is enough information, help & advice here & in the forum for you to live the dream, if you put in the time & effort.
The Week Ahead
There are a lot of weekly engulfing candles on many pairs (explained in the forex strategies section & todays video). These signify that price is reversing BUT a lot of last weeks candles were huge, so I will be looking for pullbacks as per my normal M2 method.
Either pullbacks to fib areas or recent support & resistance.
Please remember, we are NOT a tipping service. What we are trying to do here is teach you how to do this for yourselves. Frieda is a classic example, she made far more pips than I did last week, but that gives me as much pleasure than if I had won that many myself.
| M1 | Hit & miss at the moment. In summer ranging markets this is not generally the best method, but wait & see what happens around London open & follow my previous videos where I showed you how to use this method to avoid losing trades: How to avoid losing trades |
| Lmt | Recent big moves could mean we get some signals later in the week. As ever make sure you follow the “Advanced Rules” and be very careful with big candles. |
| Gbp/$ | Currently sat on weekly 55ema & daily trend line that goes back to mid May. This one is not the easiest. There are conflicting signals. We have the above acting as support and yet Fridays candle was a hanging man reversal one.Best advice is await for market open on smaller time frames for a possible bounce back up. Personally I would prefer a short, for that I either need a break out followed by a pullback of that daily trend line/weekly 55ema or if price was to bounce back up to 1.5720 then I will look for clues to short.
If price gets above here later in the week then look at 1.5800/1.5900 & definitely 1.6000. There are simpler opportunities elsewhere. Be particularly careful with this pair on Wednesday. There are rumours that the MPC minutes release could contain some fireworks! Explained in the video, |
| Euro/$ | Weekly bearish engulfing candle suggests a reversal in price(back down) however last weeks candle was huge, so I need a pullback or a break & close below 1.2700 which is also the daily trend line. Some may consider a Plan B trade but the candle size puts me off & the trend line is too near.If we get a pullback then the first area to consider is the weekly 55ema round 1.2820 but that only gives a 100 pips back down to the trend line. I would prefer a pullback to 1.3000 which is around the weekly 50% fib area as well as being a huge psychological level.
Be mindful that price has stopped at whole numbers on the way up & down recently. |
| Chf/$ | It gets better further down the page, honest  I am not sure with this pair. Last weeks was also an engulfing candle that suggest reversal from a recent low but we are in a long term down trend. I mainly use this pair for correlation with the Euro/$, but will be interested to short at 1.0700 |
| $/Yen | Not for me. Price bounced off the 121.4 fib/recent low and now looks bullish but that is counter trend so not my cup of tea. You also need to be aware that there is talk of the Bank of Japan intervening here.
A strong Yen kills Japans exports so they may well start to manipulate the price in coming weeks which will make this a bumpy ride. I Might be interested in a short if price gets to 87.00. |
| Aud/$ | Weekly engulfing candle. Gave a great entry on Friday but I missed it. 0.9027 was major previous resistance & daily 78.6 retracement so price could well bounce between there and 0.8850 which was another similar area. So bounces off or break outs followed by pullbacks is the order of the day. I wouldn’t short from current price as its too near 0.8850.If price gets back to 0.9027 then I will place my stop 10 pips above the weekly 50% fib which is at at 0.9062 & was also previous support & resistance.
There is a lot of important AUD NEWS THIS WEEK SO CHECK CALENDARS CAREFULLY AS THIS COULD CAUSE VOLATILITY. |
| Cad | Bounced off upper trend line & daily 200ema at 1.0475 so break & close above to long but not for me. 1.0400 & 1.0300 have been the most important areas of late. Break & close below 1.0300 would interest me later in the week, but not my favourite pair. |
| Euro/Aud | We had a perfect example of a daily M2 trade last week. Another weekly engulfing candle so either 50% fib pullback to 1.4350 which is my preferred trade or a break and close below 1.4200 which is a weekly trend line |
| Euro/Yen | Perfect example of M2 on a 4 hour last week as shown in the video. Weekly 50% fib pullback is at 111.60. Counter trend traders will consider longing at 109.20 but not for me |
| Aud/jpy | Last 2 Sundays analysis has yielded 100’s of pips on this pair.Normally not my favourite, but its growing on me J Also great example of M2 last week. Now looking for potential short at 77.75 with stop above 78.00 which is also daily 55ema. May bounce off 76.00 again for counter trenders. If breaks & closes below here I will also be looking to short |
| Euro/Gbp | Simple break out & pullback of the trend line that we planned last week as per Sundays analysis. One trade on this pair would have given you over a weeks pips. Another text book M2 trade on the 4 hour charts.If you are not in already then look for clues to short at 0.8210 which was major previous support which broke on Friday. Weekly 200ema will be my target which is currently around 0.8135.
Beware Wednesday big GBp news. Could work in your favour if you are already in BUT don’t take trades just before that release. If it pulls back after news/later in the week to 0.8300/8320 then again I will short |
| Best of Luck, Marc |
The above is an example of the detailed analysis that members of my forex mentor service receive every trading day, as well as 50 mini videos that teach you how to trade forex profitably. Suitable for beginners to intermediate level, to find out more, click on the following link:
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