Archive for 'forex tips'

Possible 900 Pip Move. See This Weeks Forex Video

Comments (31)

Hi, as I said in my email update, I am currently spending 12+ hours a day working on an educational forex course for a major forex traders site. As a result, my trading has been very limited, and I am making much fewer trades than normal, BUT still seeing good returns due to the fact that I am only trading off the daily (and a few 4 hour) charts. Three trades this week off daily charts netted me over 500 pips with one trade still open.

Normal service will be resumed towards the end of the month. There are lots of experienced people here on the blog & in the forum who are willing and able to help. I am still giving email support, so if you can’t find the answer anywhere else, then drop me a line.

In todays video below I show you a classic set up on one of the forex pairs that COULD make somewhere in the region of 900 pips in the coming weeks.

Re the LMT. There have been some good day chart trades in the last few weeks, but much poorer with the 4 hour. Until the markets resume a trend then caution is still my best advice. I know that it is frustrating, but you can’t force the markets. Someone posted on the blog here a while ago the analogy that this change in trend was similar to an aircraft carrier doing a 360 degree turn, ie painfully slow!!

You have to wait for the favourable conditions to come to you. The markets are still waiting to decide where to go next. This is normal after a summer break. Sometimes the big boys come back and immediately set off in a new direction. Other times like now, there is major uncertainty.This phase will pass. You will look back on this period in a few months time and wonder why you were stressing yourselves out!!

The global situation is that all the major western economies are in a mess. What traders are trying to decide which ones are in a least big a mess as the others! As soon as this current indecision ends, the trends will return and we will have easier trading conditions. If you use the information from my free ebook re different trading methods, eg support & resistance and emas etc you can use this to make money with or without the lmt at the moment.

Earlier in the year I showed you how trading off more than 1 platform gave you more opportunities and possible trades. This was relevant when the markets are trending. At the moment there is little or no advantage to increasing your numbers until the trends re-establish themselves. All you are doing is swamping yourselves with poor potential trades. Take a look at todays video for another way that you can make profitable trades whilst we wait for the trends to restart. To enlarge the video click on the symbol to the left of the timer – bottom right hand corner.

Forex Analysis for the Week Ahead (13th sept) & LMT returns to winning ways

Comments (7)
As I mentioned in last weeks video I am expecting the markets to resume a trend and we have seen the possible beginnings of that the week just finished. Accordingly (as I predicted) the LMT has started to perform again. The LMT could have gained you 1000 pips last week from signals given on the daily charts. This ties in nicely with my “week aheads” video analysis which is all based on the daily charts. Had you followed my last 3 weeks video analysis, you could now be up over 1500 pips!!

If you can learn to combine my methods and the LMT together you can rapidly learn to make a serious income from forex.

The LMT is still inconsistant on the 4 hour charts and you need to be careful. The problem is that we have lots of pairs near strong support & resistance levels  which is proving difficult with some lmt trades. You need to use discretion when taking these trades. When the markets resume full trends it will be much easier, as it was May through to mid July when the LMT was winning 80+% of the time and in many cases you just needed to take the trades that the software gave you.

For now, look carefully at potential trades before they arrive. Look for the ones that have the most potential. Follow Deans advice re candle stick formations, shape of the trigger bar etc. Then have a look at my advanced rules (I am updating these at the moment). Finally look for areas where trades may get stopped in their tracks, ie support & resistance, psychological levels etc. It is probably a very good idea to re-read Deans manual & my advanced rules again. Those of us whom were lucky enough to be trading the LMT earlier in the year had to be “match fit.”

There were so many profitable signals, often all arriving at once, that if you hadn’t planned ahead you would have missed a golden opportunity to profit. As I have explained before. The LMT is a trend following system. Normally the markets trend September through to Christmas & then late January to June. We have to maximise our profits at this time and then do as I told you in the summer holiday period, walk away & leave it. Amateurs continued to trade through this 6 week period and then wondered why it didn’t work. Follow my advice. Re learn the rules & you WILL have a profitable run in up to Christmas.

Those of you who do not currently have the LMT check it out here:

This weeks video is below (Please ignore the intro- I do a guest video for a subscription site)



600+ Pips profit from Sundays Video Analysis

Comments (4)

Had you simply traded from my last two weeks daily analysis videos you would now be over 1000 pips in profit in just 8 trading days!! Most of these trades could have been placed Sunday evening and left on auto-pilot!

The more I look at the daily charts, the more I am convinced that this is where my future forex trading lies. If you can get away from the smaller time frames, your forex trading will be much less time consuming, less stressful and will give you lots more time to enjoy yourself.

In my 1st 3 years trading forex I was sat at my computer for up to 12 hours a day!

This weeks Pre Sunday Market Open Video

If you didn’t catch this on Sunday or you just want to refresh your memory, take a look below. See how again I told you to look for activity around the major areas of support & resistance & how you could have placed low risk trades on Sunday evening, with potential big gains.

You could have earned somewhere in the region of 460 pips from the moves on Monday/Tuesday & a futher 200 today.  I predicted the moves on just three pairs: on cable, euro/$ & $/chf,  a gain of over 600 pips for a maximum risk of 150. That is a phenomenal risk/reward ratio.

Below the video is an explanation of where you could have re-entered the gbp/$ again today.

I have banked 60 pips from this trade again Today

and even better my stop was automatically moved to break even with forexexecutorpro on the second lot. The second lot is currently + 80 pips.

The euro/$ is curently +100 pips from todays pullback and the chf + 70 pips.

Please give a star rating to the video/post a comment on you tube. to do this and view the video in higher quality, click on the “you tube” icon bottom right.

Gbp/$ rejects at trend line on daily forex chart again

Gbp/$ rejects at trend line on daily forex chart again

See how price on the far left of the chart broke through the strong support line of recent weeks (as per last weeks videos).

This area of strong support became equally strong resistance.

Price has pulled back three times to this area including todays (right hand arrow). All you needed to do was place a forward order with a small stop of 20/30 pips for large gains.

Mondays candle (the middle arrow of the 3) gave you a possible 250+ pips move.

Todays move (also notice the doji candle for confirmation)  has given me 60 pips on my 1st lot which is now closed and the 2nd lots is currently + 80 pips as I write this 18.00 London time.

gbp/$ reverse on 1 hour forex chart

gbp/$ reverse on 1 hour forex chart

Because I was near my computer I went to look for confirmation on the hourly charts, however had you traded this off the daily charts it was not necessary.

Again price had failed to break the blue daily trend line. We had a doji candle & the yellow lines are macd divergence.

I will save that lesson for another day!

To see previous videos check out our new forum in the “Learn Forex Free Lessons section)” Link above.

I will email you details of my analysis for the week ahead on Sunday. If you are not on my list just fill in the box top left of this page. You will also receive a free copy of my 60 page ebook “How to Trade Forex”,

Regards,

Marc

Forex Daily Signal 25th August

Comments (15)

Apologies to those of you who couldn’t see the videos last night. I have now split the analysis into 2 videos The videos show how you could have both won & lost from yesterdays analysis!!

These videos are some of the best educational presentations I have done (before the event). If you are serious about learning forex, do yourself a favour and watch them all the way through

Video 1 shows you how I had re-entered the NZD/$ on the DAILY chart & why; this trade is currently +90 pips as I write this update.

Video 2 is some of my best video analysis BEFORE the event on a number of pairs. Cable, euro/$, chf & nzd/4 gained over 500 pips from these moves

    How to use support & resistance to look for and where price could go next.

    Please remember this is only an experiment for trading forex from daily charts. I am not putting real money on these trades and nor should you. This is purely educational.

    However had we combined my normal trading method with yesterdays daily analysis there was a potential 500+ pips profit. regards, marc

    Video 1: Result of mondays analysis

    (If you find the videos useful, please add a comment/star rating on you tube)

    Video 2. Todays analysis (This analysis on the gbp/$ alone has gained 200 pips so far today + 300 on euro, chf & nzd/$)

    Webinar

    I mentioned in my previous update that there is a new piece of forex software being released this week that could be invaluable for USA members & LMT owners particularly.

    There are two (limited place) free webinars tomorrow, thursday 27th august.

    Click the Link below to find out more;

    Register for free webinar (limited places)

    Click Here!

L M T Forex Formula Review

Comments (118)

Greetings ! My name is Marc Walton. I trade forex from my home here in the Canary Islands. For the 1st three years I struggled like 90%+ of new forex traders and I lost money, I lost a lot of money, over $20.000! The last two and a half years I have become steadily more successful. So far this year I have gained 6000+ pips (most trades posted live on twitter).

I now have 1000′s of followers for whom I offer free forex trading tuition, support and advice. My attempt to give something back to the forex community.

Until now I have never endorsed a forex product, in all honesty because most of them I ran across were either a scam or vastly over-priced….. Costing people thousands of dollars, and doing hardly anything that they claimed. Its no wonder I’ve never endorsed anything. For the most part you can find better information on my site right here!

However, I started to use the LMT forex formula to trade currencies since mid May. It was recommended to me by the creator, Dean Saunders himself, and so far its worked wonders! So read on to learn more about it;

Dean Saunders LMT Forex formula.

The LMT formula (low maintenance Forex trading formula) was hyped as a “set and forget, make a fortune in only 15 minutes a day” forex trading system. They always make it sound too good to be true, and it typically is, however there is some truth to these claims!

It can be traded straight out of the box even if you have very little forex currency experience, however the more forex trading knowledge you have the better. I would strongly recommend that anyone trying any new forex product use a free demo account at first.

The formula is described fully & simply in a downloadable e book and comes with a file that you attach to your metatrader trading platform (if you don’t have metatrader at the moment, its free and there are instructions how to download that too).

You can read Mr Saunders e book and have the whole lot up and working in just a few short hours.


Formula

The forex trading formula is very conservative. You only buy a currency pair if the long term trend is going up and only sell if the trend is down.  I’m sure many of you have heard the expression “The Trend Is Your Friend.” Currency Trading in the direction of the current trend has shown to increase your chances of a profitable forex trade by up to 30%.

When Do I get in to a trade?

When a trade opportunity presents itself an alarm will sound to tell you which pairs have possible trades.

When do I get out?

Finally, when to get out of the trade. The hardest part of forex that I find is knowing when to close the trade, ie getting out too soon. Again Dean Saunders has a simple solution. When a candle crosses a specific ema (line) and closes through it. Get out.

Concerns

The only thing that concerned me initially was that for those of you who can only trade the daily forex charts, I didn’t think you could just set it and forget it as they claim in their marketing. I thought that you would need to sit around to wait for the 1st profit target to be hit and then move the stop loss to break even on the second lot. However there is a trick with metatrader that solves that potential problem.

The LMT Forex trading formula. Does it work ?

Week 1 forex trading the lmt forex formula on a demo account (I wish i’d done it on my live account)! I made over a 1000 pips with the lmt formula.

Update: I went live using the LMT friday 29th May 2009. By tuesday  morning, 2nd June I had made 1500+ pips !! At $10 a pip that would have made you $15.000 in 3 days! This was simply astounding. Some of my followers who are relatively new to forex gained 400/500/600 pips in their 1st week (see comments bottom of this page)

Had I started last week, trading on the daily charts I would be currently 3800 pips up and still going strong !!

The only problem if you are new to forex trading is that you need to use some discretion before deciding to take some of the trades. Sometimes the LMT will signal 7 or 8 trades all at the same time !! You need to learn which  trades have the greatest potential and which ones to leave. You also need to use strict money management rules.

Therefore for those of you who join the system from my link I will do an “lmt advisory service.”  I have written a number of articles for “LMT advanced forex trading rules.”  I will email you details and reasons why I did (and, just as important, why i didn’t take the trades). Also, if you have any questions feel free to contact me.

The product comes with a 60 day money back guarantee, so you have nothing to lose and plenty to gain. However Dean Saunders has said that he will limit the number of members he will allow so that he and I can provide the level of support to our respective followers.

Check to see if its still available:

Conclusion

As i said at the beginning I hardly ever recommend a forex training product as most of them are scams or at best not worth the paper that they are written on. This is the 1st new forex product that has got me excited in a long time. At the end of the day if you are serious about trading currencies and risking $1000′s then you have to spend some money on improving your forex education.

I told you at the beginning of this review that I lost approx $20.000 in my first 3 years forex trading because I was trying to do the “quick” trades.  The 4 hour and daily charts are a lot less stressful as well as more predictable in my experience. The sooner you can get away from these small time frames the better.

Use the banner link above or below to join the LMT Forex Formula. Email me with your confirmation details (marc@forex-fxtrader.com) and I will include you in my lmt advice service. I will email details of trades I made and answer questions that you may have,

good trading, regards marc

Privacy Statement

LMT Forex Formula Example

Comments (14)

Hi, I have explained how the lmt (low maintenance forex trading) system works. I thought it would be a good idea to show you a few  trades that I made. The 1st example is from a “live”micro account that I started trading late wednesday night.

I don’t normally dive in to a new product and put money on the table until I have tested it for weeks, but the lmt was making so many pips that I thought I would dabble but with reduced amounts.

Its a sterling account so in $US x 1.61 = $2035 profit in 2 days ! My screen shot is not wide enough to show the figures here on the blog, but I will post it on the main site later today and provide a link for you to check out that I am telling the truth. link is here now;
http://www.forex-fxtrader.com/LMT-forex-formula-trade-examples.html

Gbp trade from 4 hour signal 29th may 2009

Gbp trade from 4 hour signal 29th may 2009

Following the lmt rules, this was an excellent trade. (I have put the white arrow on the screen to show you where I entered). The signal was good for a number of reasons.
  1. The trade was with the trend
  2. There was a red pin bar, signifying price reversal 2 bars before the entry.
  3. There was a minimum of 3 red lines on the bottom indicator, prior to 1 closed green bar. For long trades this is the lmt rule.
  4. The signal bar (1st green bar to close was only small) therefore stop loss was small.
  5. I entered at 1.5950. Current price 1.6162= + 212 pips
  6. This was a 4 hour signal, but it took place 1opm gmt +2 on my alpari, same time as the close of the daily candle. Thus if you were looking for a daily signal you should have then looked on 4 hour charts.
As it was one of my 1st trade on a live account I only risked one micro lot (approx $3.30 per pip). I didn’t do my usual strategy of 2 lots and closing 1 for profit, I just let it run.

These 1st 3 trades have paid for my LMT software 15 x over. Do you wonder that I have gone on and on about it.

If you want the chance to earn (and learn) how to make big money from forex trading only 15 minutes a day on the daily charts or a few hours a day on 4 hour charts, then this is the nearest thing to forex heaven I have found in years.

Anyone who tries to tell you its a scam doesn’t understand it. My first 3 trades have given me 1000% return on my investment.

I think some of you who are new to forex may simply not understand the workings of the market combined with the LMT system.

Because of this I am offering a LMT forex advisory service to those of you who join the LMT formula through my link.

I will email detailed examples of trades I have made (like this free example here). I will explain why I stayed out of some trades. For example, there was a “sell” signal on the jpy this week that lost. I didn’t take it as the market looked to be turning from my normal system, so i stayed out. Result I saved a 68 pip loss.
I will try in the next few weeks, whenever possible to post you “live” emails of trades that I am making. I can’t promise this feature as it will only be on days I trade and there is a potential problem. By the time I have made the trades and sent the email, the price may have already moved, but lets see if I can make it work.
If this is successful, then in the future I would probably have to charge a fee for this, but if you are making big bucks I dont thing you will mind !
The author of the LMT formula has said that once he has sold a certain number of copies he will close the site as he needs to be able to provide support for his followers. To see if LMT is still available and to find out more about it,  click here :


Remember, to receive my advisory service all I ask is that you join through one of my links.
I have been asked if I am making a commission if you buy the product. Of course silly ! But I will only ever recommend something to you that I have tried, tested and believe in and that comes with a 60 day money back guarantee.As you know I recommend you ignore most of the forex products that are being peddled on the internet. All the forex robots are a scam in my opinion.
This way you get an honest appraisal from someone who has “been there and done that” and i get a contribution towards the administrative costs of running the blog, main site, aweber and the 100′s of hours I have spent creating all of this.
Once again the link to the LMT forex formula is here. If you decide to join, email me confirmation of your purchase to marc@forex-fxtrader.com and I will include you in my lmt e mail updates happy and profitable trading to you all.


Forex Trade Tip of The Week.

Comments (14)

Caution is still the best advice I can give if you intend to trade in this summer lull period. Very few of the forex pairs are trending and those that are, are simply moving sideways in tight ranges. I explained in yesterdays update “Forex trade examples” how you can use break outs from these trends for devastating profits.

Those of you who are trading the LMT Forex formula I still recommend that you only take trades when the trend is the same on the 4 hour & daily charts. The following analysis is not LMT related. If you are new to forex just follow the rules and keep it simple. Don’t panic with all this technical mumbo jumbo! But if you want to learn more about forex then read on !

There are trades to be had this week and I have posted below my analysis for 7 or 8 pairs including my “forex tip of the week” (please let me be right) ! I suspect that lots of the pairs may be due a pullback this week as many have rejected at recent highs or lows

Forex Trade Tip of the Week – Head & Shoulders Pattern

There is a classic head & shoulders pattern building on one of the 4 hour charts for the week ahead.

A head and shoulders pattern signifies that there is a major reversal imminent in the price of a forex pair. I am convinced that this particular pair is fundamentally due a fall as well.

The most significant head and shoulders pattern is in a weekly or monthly or daily charts. Head and shoulders on lower time frame can be unreliable. Anything less than a 4 hour forex chart and I ignore them.

What is a Head & Shoulders Forex Pattern?

The name of this pattern is given after its shape. This formation looks like, guess what, a head and shoulders. It consists of three consecutive rallies all based in the same support line named neckline. The two shoulders should be almost equal height and the “head” should be the highest. The great thing is that it gives you a specific entry point, stop loss point and target.

Fig 1. Euro/gbp 4 hour forex chart

euro_gbp_head_and_shoulders

This is a classic example forming of a forex head & shoulders pattern.

You may enter the market during either a break of the “neckline” with the stop above the nearest “shoulder” or more conservative traders look for a pullback/retest of the broken neckline with a much smaller stop just the other side of the neckline.

Price target is the length between top of head and neckline which in this case is 150 pips below @ approximately 0.8430/0.8400 which coincidentally are recent lows for this pair. If price breaks & closes back above the neckline the pattern is void.

A more aggressive entry is to start taking parts of the trades as the price falls. For example I have taken 25% of the trade at 0.8500 area (price could pullback to 0.857o area (left shoulder), I would look to short 25% again there. If price break above the 0.8700 area then the pattern is void and we should look for reasons to long.

If you are trading the LMT then the conservative way is to wait for the trends to turn back down on both time-frames. If that point coincides with a break of the neckline then that would be an extremely strong signal for me.

Analysis of other forex pairs for the week ahead

The euro/$ The last 3 days this pair has been range bound. Moving sideways in a tight range between 1.4050 and 1.4150. It may continue like this for a few days, but look for confirmed break outs (on the 4 hour charts) as per my explanation in yesterdays “forex trade examples” post.

If it breaks up recent high was 1.4300 and then dec 2008′s high was 1.4400. If it breaks down 1st target area would be 1.3850, 2nd 1.3700

Cable (gbp/$) There was a “shooting star” candle pattern on the daily charts. I will explain this in a later post. The thing you need to know is that this pattern usually signals a change in direction, ie down in this case. It is range bound as well between 1.6300 and 1.6465, so again look for breaks here in either direction.

Aud- Almost an engulfing candle on the daily chart, suggests pullback, ie price to fall. Price again is stuck in a tight range, look to trade break outs in either direction.

Cad – There is a doji candle on the daily chart which signifies indecision. Price has now entered a tight range, which is normal after a big move such as last weeks. If breaks out upwards, could go to 1.1400 area or down to 1.0800

Euro/cad- Similar scenario to cad

$/yen Near a double top at 94.50. Dont take longs here unless it breaks and closes above. It looks bullish to me but with limited upside (there are lots of emas and things in 95.00 area that would be difficult to break). If it does break 95.00 though, next target would be 97.00 area.

Lots of the experts are predicting a fall to 90.00 area. Best advice is probably leave alone this week unless there is a major move and you can catch a pullback.

Euro/yen, Gbp/yen These two are both in a tight range, again look for confirmed break outs on the 4 hour charts.

If you would like to trade forex successfully with us here on the blog, we have more than 1500 registered traders, and 15.000+ on twitter following both my advice, and sharing advice with each other.

The following is concerning the LMT forex formula. More than 500 of us here trade this system. It is the BEST, SIMPLEST,CHEAPEST forex trading system I have found in almost 6 years of trading forex. Click on the coloured banner below to find out more, regards, marc walton


Forex Trade Examples

Comments (21)

In these summer months with reduced numbers of forex traders and hence reduced liquidity in the forex markets it can be very difficult to trade. In many ways the best advice is simply to have a break and do not trade.

However, there are low risk trades out there, but you need to be patient and disciplined in your approach. I find it best when the forex markets are bouncing around to stay away from the smaller time frames and go to the 4 hour and daily forex charts. This way you avoid most of the intra-day choppiness and you have much more time to plan your trades.

Below are some great forex trade examples taken from this current week.
I previewed them in my analysis that was sent to members at the start of the week; if you would like to be included in these free updates simply e mail me and ask: marc@forex-fxtrader.com

I mentioned in last weeks update that the euro/cad and cad/$  looked good for a move. These were both potential moves off the 4 hour and daily forex charts.

I said with cad “Ironically cad (which I normally avoid) is holding above 78.6% fib on daily for last week,and trend has been up for a while. Could go up to 1.1800 or if breaks down to 1.1450. It broke down, straight through 1.1450 all the way to 1.1112.  for a 400 pip gain. You read it here first !

Unfortunately I dont usually trade this pair, it whip- saws far too much for my liking. Ironically it was one of the best movers of the week. I spotted it but didn’t take it.

Below is  a detailed explanation as to what happened and how you could use this knowledge to improve your future forex trading.

There are also a few tricks you can use to catch some of these bigger moves and integrate this knowledge with the LMT Forex Formula that many of my followers are trading.

Fig 1

Daily chart for cad. Price is trapped between

Daily chart for cad. Price is trapped between

Here we can see price bouncing between the 2 fib lines for over a week.

The doji candle was the 1st indication that price might be reversing.

If we had decided to long this pair we would have had to wait for a candle to break above and CLOSE before taking a trade.

As it was price broke and closed down below the 78.6/support line. The very next candle came back up and touched this area before setting off back down (support became resistance) a fundamental rule in forex trading.

There was an even better example of this kind of break out trade on this weeks euro/cad. The following is a 4 hour forex trade example.

Fig 2

Euro cad break out on a 4 hour forex chart

Euro cad break out on a 4 hour forex chart

As you can see in Fig 2, price for the euro/cad was squeezed into a narrow price band which coincided with my fib levels
(100 & 23.4%).

Once price entered this range it had multiple attempts at breaking out but either spiked or pulled back completely.

When this situation arises it is indicative of buyers and sellers being in agreement, but it does seem to forge a build up of latent energy. Once this energy is released price will often race away.

Notice the dotted blue line. This is the recent high of price which was rejected 4 or 5 times on the far left. This would have kept us out of going long (up) in this area, as you should never take a trade with such a poor risk reward ratio, ie the chances of price failing to break and then bouncing back down here were very strong.

Had price broken up you should wait for price to break through and stay above this area. Another trick that I use is to only take a trade if price moves 5 pips + spread beyond the breakout.

My preferred method of dealing with break outs is to wait for price to break out and close through support or resistance. Then look for the next candle to pullback to this area. For example when price finally broke down through the 1.6130 area, the very next candle came back up and touched this area before bouncing off and racing down 400 pips in a fairly straight line.

You would have only needed to place your stop 20/30 pips above this former support line therefore your potential risk reward was great as well.

Target

Notice how price stopped at 78.6 fib area again, as covered previously here and in the free lessons on the main site.

If you would like to trade forex successfully with us here on the blog, we have more than 1500 registered traders, and 15.000+ on twitter following both my advice, and sharing advice with each other.

The following is concerning the LMT forex formula. More than 500 of us here trade this system. It is the BEST, SIMPLEST,CHEAPEST forex trading system I have found in almost 6 years of trading forex. Click on the coloured banner below to find out more, regards, marc walton


Potential 400+ Forex pips gbp Monday

Comments (38)

The gbp/$ could present us with some very good trades on Monday, both with and without the LMT. Take a look at the 4 hour forex chart below. Notice how price has been trapped within a 400 pip range for the last few weeks. 400 pips @ $10 a pip will give you $4000 ! and is a months worth of pips if we can catch this move !

Price has failed to break the upper resistance line of 1.6600 since the 3rd of june (recent high). Price did actually “spike” through to 1.6620 on the 11th of June, but the candle closed back down below.  Price promptly fell back to 1.6200 which has acted as strong support 3 or 4 times.

Fig 1

Gbp/$ trending sideways on 4 hour forex chart

Gbp/$ trending sideways on 4 hour forex chart

Notice how the price at the last bounce back up returned up off the daily trend line which has been supporting price since april (diagonal yellow line). So how do we use this information to grab some of those pips ?

Lots of traders will be sat with orders placed to sell the pair at 1.6600 with a stop above 1.6625 (more conservative may go to 1.6670 recent 3rd june high). If you see that price is turning back down before there, look for reasons to support your theory, fibs, emas rolling over etc- as per the free lessons on the main site. This is not an LMT trade.

For lmt followers do not take a buy signal near to the top resistance line unless price breaks and closes above the 1.6600 resistance line.

However if price falls back to 1.6200/ daily trend line and we get an LMT trade. That would be great.

If price comes back down to the daily trend line (as I write this that would be the 1.6300 area), all of us need to look for reasons to buy with a stop either just the other side of the trend line (look for fibs/emas to help you decide) or more conservatively the other side of the 1.6200 strong support. 1.6180 is the recent low, so below that would be ultra conservative. Adjust your stake accordingly.

The other option is of course that price may break through (up or down). Do not be tempted to dive in. Wait for a candle to close. Often price will break through an area of strong support or resistance. Come back to that line and THEN continue the move. This is known as resistance becoming support or vice versa.

Fig 2

support_and_resistanceThis is the same 4 hour fx chart, just before the move shown in figure 1.

Working from the left, notice how price twice failed to break up through the 1.6200 line & the doji (indecision) candle.

The 6th candle finally breaks & closes above. The very next candle price comes back down and touches the line before continuing back up. That is a pullback. That is where we should enter. Resistance has now become support.

The 2nd arrow shows how price comes back down to this area and  (line is still continuing as support) price bounces back up again. Then we have a red candle that comes down and pierces (but doesn’t close). Finally a candle closes below the line. The next green candle comes back up and touches the line (pullback entry). The support line is now acting as resistance.

This is all basic forex chart tactics. Support and resistance are main areas to look for price to react. The secret is to plan ahead. Be sat waiting, like a bear waiting for a salmon, at just the place you know something is likely to happen.

Hope this helps. Get in the habit of looking in detail at the charts, the week-end is a great time, when the markets are closed, to just sit and go through the different time frames.

Other pairs in brief: I have started to ignore the market open and wait for price to settle. The aud gapped down for the last 2 weeks. 

The euro/$ is coming up to a strong resistance area on the 4 hour chart at 1.4115. The last three or four,  4 hour candles are reversal/indecision. The LMT rightly has the pair in an uptrend, but I will not go long so near to that price. Wait and see how the market opens. Pullback likely. Then look for reasons to long.

Chf/$ has broken 50% fib on 4 hour chart. Could be on way back down as per long term trend. Be careful around fib lines.

Jpy/$ Potential double bottom at 94.86 area.

Take a look at the other pairs. Learn to look for clues yourself. Lots of them are at double top/bottoms/support resistance lines.

Having said all of the above, alex sent me a staement from last week. If you had just taken all the LMT signals, you would have made good pips. 73% wins to 27% losses in difficult markets is a hell of an achievement for a semi automated system.

To find out more about the LMT Forex Formula, Click on the link below;

Free Forex Strategies

Comments (3)

In the current topsy turvey currency markets it is difficult to know which forex strategies are most likely to work or not.  The experienced forex trader has a number of different currency trading strategies he or she will follow. Often the best plan is to simply walk away until the markets resume a tradeable trend.

I have 3 or 4 fx strategies that I have found that enable me to continue trading through the different market phases. All markets go through cycles. January to mid march I made more than 3000 pips from my own 4 hour system. Suddenly mid to late march the markets changed and it became unreliable and then un-tradeable.

I then went back to a simple 15 minute strategy that i have had success with in the past. I really don’t like trading 15 minute charts and yet April 2009 was my best month ever in my 5 year forex career. I made over 1800 pips, many of the trades posted live on twitter. Like to know the strategy ?  Send no money now ! This forex winning system is free, on the house;

Asian Break out forex strategy

Most forex strategies revolve around support and resistance. Price either bounces off previous areas or breaks through. Fx traders are looking at these areas to see how price reacts and look for clues as to where the price is going next.

This can be on any fx chart; 5 minute through to weekly. There are numerous examples of this here on the blog, mainly referring to trades on 4 hour charts (my preferred time frame).

This strategy that I am going to show you is very simple and relies upon the asian (tokyo) session being relatively quiet (it is most of the time). The price of a pair often bounces between 2 horizontal lines, above and below price;

$/chf trapped between 2 horizontal lines during asian session

$/chf trapped between 2 horizontal lines during asian session

As you can see in the diagram above the chf has been trapped in a tight (30 pip) overnight range. The average daily move on the chf in the last few months has been 150 pips. Therefore it is reasonable to assume that at some point (London forex market open or just before is the normal time) the price of this pair is going to set off up or down for a possible 120 pips.

The London open or the hour before is usually the catalyst for this movement. What we need to lok for is a break through one of these trend lines AND A PULLBACK. Eight times out of ten, price will break through this overnight range and then pullback inside. If you dive in at the 1st sign of a break you will lose nearly every time. I have been there, believe me !

Entry is critical on this type of trade. Where you enter depends on your risk tolerance. Under normal circumstances I would take the trade from the pullback to the 34/55 exponential moving averages (the top arrow in the following diagram). If you are new to these emas, check out the free forex lessons on the main site www.forex-fxtrader.com)
The beauty of entering here is that you would only need to place your stop 15 pips away (just above the asian overnight high). Therefore you have a risk reward of 15 pips to gain a potential 120 !
Swiss France breaks out of overnight asian range

Swiss France breaks out of overnight asian range

However, the reason i used this particular example is that price throughout the night failed to break the (green) 200 ema.

I never take a break out trade that is near to the 200ema.
So on this occasion I would need to look for entry after the break of the 200ema.
Either a pullback, which is my preferred entry or a move 5 pips below the closed candle that did break the 200ema ie the 2nd arrow on the chart.
Again the risk reward is excellent. I would place my stop 20 pips away – just above the 34/55 emas with a potential gain of 100+ pips.
This particular break out moved 200+ pips in total. Unfortunately I wasn’t trading and missed it.
There are lots of other rules and variations to the above. I will update this article at a later date. however those of you who have joined the traders secret library have access to an article there that goes into much greater detail.
Go to the trading techniques page (there are over a 100 techniques on this awesome site), click on range break outs. The gentleman is a more conservative trade than I am, but he gives you much more rules and a more detailed strategy there.
The traders secret library/Surefire challenge is one of the few forex products that I recommend. This site is, in my opinion, the best forex educational site on the internet. If you haven’t  seen it before (the sales page is too “hyped” for me and nearly put me off joining, but I am glad that i did). click on the link below;

Traders Secret Library/Surefire Challenge

Safe to go Back into the forex Markets Yet ?

Comments (19)

Hi, This is an update to the post earlier in the week advising my LMT Forex Followers not to trade until the current market turmoil settles down. My advice, nay insistance ! is continue to stay away. As you can clearly see in todays 4 hour Forex Chart of the aud ( I could have used loads of similar examples) price is shooting up and down within the same candle).

The wise trader simply walks away and lives to fight another day.

There is clearly no trend at the moment. These “spikes” are tearing through fx traders stop losses and will wipe out 1000′s of accounts of those who continue to trade through this extremely difficult (usually short) period of time.

The profits we have had with the LMT in the last month have been nothing less than spectacular. I have been trading Forex for over 5 years now and the current market conditions do not come along very often (thankfully).

The LMT is a trend following system that works great when there is a trend. We actually need this weeks big moves because when they settle down a new trend will start and we can catch it near the beginning and ride it a long way for BIG , low risk Profits.

The secret to successful forex trading is knowing when to stay out of the markets.I strongly recommend you leave them alone until this sorts itself out.

The beauty of forex trading is you can make money when the markets are going up or down, but not when they are going sideways.

In the current chaos and uncertainty let the gamblers fight it out amongst themselves. We the intelligent, shrewd traders will stroll back in and sweep up once the dust has settled. I keep telling you that we can get rich in forex, but slowly.

So what is going on and what started all this ?

Most of the the currencies that we are trading have just enjoyed 4 to 6 months of steady, trending movement. Had we been trading with the LMT since the turn of the year we would have made a lot of money by now. It will return, and very soon, don’t worry. Markets always trend longer term.

It is quiet normal after a period of sustained movement for the markets to stop for a “breather” whilst traders decide where the prices are going to go next. The same principle rules the stock market.

Added to this there has been a lot of fundamental news this last week or so. Gbp negative news for example, followed by $ negative. The market is now trying to decide whose economy is in the biggest mess ! Lots of pairs look as though they might be rolling over (think of an aircraft carrier turning around – a long and painfully slow manoeuver).

Lots of pairs are still on the verge of changing direction or resuming their current trend. Some are trending down on the 4 hour chart and up on the daily. The reason for this is that the trend is based upon the next time frame above. Therefore the daily chart is based on the weekly which takes ages to change.

Take a look at the following example of cable (gbp/$) on the 4 hour and daily charts respectively. The Gbp is clearly in a down trend on the 4 hour charts. Price has hit the top trend line on a number of occasions and similarly the bottom.

cable is clearly in a down trend on the 4 hour chart

cable is clearly in a down trend on the 4 hour chart

The more experienced trader could try to trade even these markets by simply selling near the top of the trend with a stop just the other size of the trend line. Vice versa for a buy from the bottom line. The problem is the size of some of the spikes will just wipe out the trade. Notice the shapes of some of the candles that have rejected.

Now look at the same currency pair on the daily chart;

cable on fx daily chart is clearly in an uptrend

cable on fx daily chart is clearly in an uptrend

 

 

 

 

 

 

 

 

 
What is extremely interesting to me is where price is now. The arrow is pointing to where the 4 hour and the daily trend lines meet. This area is critical. If price starts to go back up from here we could be at the bottom of  a major move upwards for 100′s of pips (possibly a 1000 to the top trend line).

The other option is that if price was to break & close below here we could be looking at a major change of direction. Either way there are a lots of pips to come. Don’t be hasty.Spend the next few days reading and learning as much
as you can. I will let you know when i think its safe to get back in.

This weekend I will provide you with detailed analysis of all the pairs. Where they are now and where I calculate they are going to go next.

To all our success, marc

If you would like to know more about the LMT Forex Formula Click the link Below. Those who join the LMT (low maintenace forex trading system) from this site receive regular free updates, support and advice

LMT Trade Plan Week 15th June & Results

Comments (14)
Last week I received over 40 LMT Forex Signals including 12 off the daily charts. I personally took 12 trades, all of which were winners. Some only hit the 1st target and pulled back and took out the 2nd lot at entry, but as I have explained often, I have found this to be the best way to trade the LMT profitably.

Update: Sorry missed it there is a 4 signal on aud when market opens later in about 5 hours time on forex meta

I open 2 trades (divide your stake in half). I close the 1st trade at the 1st target for a profit & then move the stop on the 2nd lot to entry. This makes sure I bank at least some profit from the trade but then have a risk free chance at a much bigger move with the 2nd part of the trade. Risk free trading is nirvana for forex traders !

My note taking has been atrocious this last few weeks due to all the emails and admin to do with the blog. Whilst at the same time trying to trade my own accounts (+ daughters micro account)!

Therefore some of the signal TIMES that I state below may be wrong. I did get a signal but I am not 100% sure of the times.
Please don’t email me saying that “I cant see the wednesday 20.00 hour signal on my charts”, because I might be wrong ! I am trying to implement a better, more accurate system for this coming week.

I will try to find the time to post more regularly during the week and wherever possible before the close of the daily candle my thoughts on what might happen, which trades are none starters and which of the possibles are most likely to be the best to take.

I have had days when 6/7 trades have come at once. if i had waited until they arrived i would not have had time to get many trades placed before price moved. as Isaid in one of the articles below it is vital in forex that you plan the trade ahead and then trade the plan.

The important part is there were over 40 signals (including12 daily) off the 2 platforms.

All times are actual times I received them BST = Gmt +1 (not what platform says)
Monday 8th 6.00 am Forex meta: euro, chf, jpy,aud,nzd,cad
7.00 am Alpari uk: jpy,nzd,cad
Tuesday 9th Daily : Forex Meta gbp,euro,chf,jpy,aud,gbp/yen
I also had 4 hour signals (not sure time): euro/yen, aud/yen, nzd/$ Daily : Alpari uk: Chf, cad,gbp/yen, euro, gbp
Wednesday 4 hour Forex meta: 6.00 am jpy. 10.00 am: euro/cad
14.00 chf,cad,euro,euro/gbp 18.00: nzd, aud
Alpari uk: 15.00 nzd, aud, chf, euro, euro/gbp
Daily Forex meta: Gbp/yen
Thursday Forex meta : 6.00 am gbp, aud/jpy, aud * ( a friend of mine in mexico on same platform at exact same time had 2 extra signals here)
Alpari 15.00 euro7yen, aud/$
Friday Forex meta 06.00 am: jpy. 10.00 gbp/yen
18.00 DO NOT TAKE THESE TRADES LATE FRIDAY AS PER The LMT RULES: euro/gbp, nzd/$, gbp,aud/jpy, gbp/yen<br>
I made over 650 pips this week, JUST from the LMT. One of you, Rob, made 820. He had never made that many in 3 months before! I am trying to find some kind of way to verify my pips total for the doubters amongst you. My trades are spread over 3 accounts.
My priority at the moment is to make a living/pips and keep up to date with the support. But I am getting better organised, just bear with me
As i pointed out in this article http://forex-fxtrader.com/If-Its-Raining LMT-Pips-Where-Did-Mine-Go-.html, if you are not getting the same number of signals, you need to copy what i am doing. Forex meta is obviously giving me a lot more signals at the moment.

Simply download another free metatrader platform from forex meta and run 2 at the same time.

Last week I posted an article showing you how you can add fibonacci numbers to your charts and use them to give you clues where price is likely to reverse/stop after a major move:
http://www.forex-fxtrader.com/Forex-Trends-&-Double-Bottoms.html. It is important that you learn this. This worked amazingly well on numerous pairs this week. See the euro/$ example below

See how pice pulled back EXACTLY to the 61.6% fib line before resuming its downward direction

See how price pulled back EXACTLY to the 61.8% fib line before resuming its downward direction

The following $/yen example is even better. Remember I said that the more indications you have that price is going to head in a different direction the better. Here we had price rebounding off a 50% fib line (standard fib trade) at the same time as an lmt signal.

$/yen example of fibonacci move on 4 hour forex chart

$/yen example of fibonacci move on 4 hour forex chart

The week ahead. Trade plan week commencing 15th June 2009

This research is taken from forex meta charts. This has taken me 5 hours today and my wife is going nuts. You need to learn to do this for yourselves. It is also more detailed than you need. But hopefully it gives you an idea of the planning and thought processes that go through successful forex traders minds.

gbp/$ No. There is a quadruple top on the 4 hour chart. Price could move sideways for a few days. We need price to either break through for continued direction or bounce off for a pullback to give an entry late in the week

euro/$. There is the possibility of a trade in the next few days. Keep your eye on it. Price currently stuck between 1.4133 & 1.3930 area

chf, jpy/$, aud, NO

euro/yen Possible tuesday. But lots of rejection 138.00 area/sideways at moment

gbp/yen NO, but broke through double top at 160.65 area. We need a pullback

Aud/yen same as above, broke top at 79.50 area

cad & euro cad. I am still avoiding at the moment

Euro/gbp. possible pullback up if mondays candle closes green. Will be against the trend on a daily, but could give us a 4 hour signal

$/yen has no signal, but price broke above 200ema on daily at 98.00 area. Various yen pairs as i said above have broken through upwards resistance. We could see lots of movement this week, BUT stick to your lmt rules.

Daily Charts (remember if you only have time to trade the daily charts, check the 4 hour charts at the same time. Sometimes there are signals on the 4 hour that are not on the daily).

If you are here from an invitation from me on the forum at traders secret library or twitter and you would like to receive a copy of my advanced lmt rules and be included in future updates please email me: marc@forex-fxtrader.com


Awesome LMT Trades 1583 pips in 2 days

Comments (43)

Lots of you gained BIG pips today. Jaime reported winning 600+ pips: “Marc let me tell you so far 600 pips on GBPJPY, EURJPY . You hit a HOME RUN w/ this LMT advice.. thank you.”

I made 1017 pips closing fridays trades and 566 today. I earned more money in 2 days than I used to earn in a month and I was still mainly on reduced stakes of $3.30 a pip. My normal stake is well over $10 but caution is best when using a new system.

My trades were; 363 on gbp/yen ( i was up 460 at its highest point), +110 aud/yen (180 high) and +93 euro/yen (160 high) for a total of 566.

I also closed fridays trades for gains of  435 gbp/$ ( was up 212 friday night), 247 Nzd/$ ( 180 friday night) and finally cad +335.  Fridays total therefore was 1017 pips !!

This was gbp/jpy trade monday 1st June 2009

This was gbp/jpy trade monday 1st June 2009

The most important thing now for all of us using the system is to CALM DOWN !

It is very easy to get carried away when you are on a roll in forex. It is vital that you follow the money management rules and never risk more than 2.5% of your trading bank on a single trade.

This is further complicated with the LMT formula as we have 7 pairs that have the $ involved and 3 pairs that are jpy related.  We need to be very careful.

Also, I have had lots of emails and screenshots from members who are getting different signals to me due to variations of time settings on different platforms. I will let you know which platform/time settings that are giving the best results.

In the long run I suspect all should be the same, but I am running 2 metatrader platforms and one is much more successful than the other at the moment.

For those of you who joined LMT through my link, In todays email update I will send out a detailed set of “advanced rules” that you need to follow to make sure that you protect your bank. Which trade signals not to take. How to go forward with the LMT formula.

The Most important rule in forex is Protect your bank

For those of you considering joining the LMT, click on my link below to check it out. Then E mail me a copy of your purchase invoice and you will receive my support and advice to help you get started with this great system. Click on this banner below to find out more;


If you are still not sure read my review and the comments from my followers who have invested in the LMT and are gaining lots of pips !

http://forex-fxtrader.com/blog/?p=389#comments

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