First we would like to decide if the up swing will continue or not, and looking at the 1 hour chart we do not believe it will. We have just had a steep angle cross of the MACD to the sell side of the signal line, and the 15 minute MACD continue to be strong on the sell side. The slow stochastic on the 1 hour chart had a steep angle cross several hour ago and both line are steeply heading down.
Based on this information we correctly predicted the market was going down. Now many of you would ask me why not just get in your trade and ride it down.
Hind site being 20/20, I asked myself the same question, But in my personal trading style, I used 1.7460 as my entry, which means I missed getting in my trades by a frustrating 4 Pips.
The simple fact is 1.7460 was a good entry, we were trading @ 1.7452 when I set the trades at 12:00, you can not expect the market would not go up 4 pips to get me in, that is just unrealistic.
So once again I missed out on a very big night, of 150 Pips, but I have to come to the realization the market is completely random and although I was able to predict the direction and the levels, you still need a little good luck every once in a while to help you make a big trade. Many more times than not you will get in that trade, it just was not to be last night.
Tonight we are trading around 1.7330, our first region of resistance is in the 1,7380 range, and a second region around 1.7420. Strong support exits From 1.7310 to 1.7280 levels.
We have several reasons to believe the upcoming week should have a significant increase in volatility. We will have to watch closely this week as the news unfold to decide how it will affect the market and our trades.
You can also use these same techniques to successfully pick your our trades, just like we do. With the proper forex trading education there is no reason you could not be making the kinds of trades we are make, and discussing in our articles.
Let's face it, whether it's a Forex Trading Course, or a Forex Seminar, you NEED a Forex Trading Education
While it is not pleasant, it's a fact of trading, you are going to have losing trades, you would be foolish to believe you will only have good trades and never lose.
In discussing last night between ourselves we realized that several of our traders whom trade reversal patterns were all over Cable last night, and we have to look no further than the newsletter I wrote last night to see how they did it.
Personally I rely heavily on various support and resistance levels for my trading style, and in doing so, it is easy to over look, what many believe it the strongest indicator available, Candlestick patterns. Lets look at what I wrote last night;
For those of you who are fans of the candlestick patterns, we had a perfect double bottom form on both the 4 hour and the 1 hour charts yesterday, right before the spike up, I hope you saw it and were able to get in a long position. Anywhere from 100 to 150 pips could have been had on the move. The double bottom formed in the first couple of hour of the London market, those of you who actively trade the London market were the beneficiary's of a classic pattern that worked to perfection. I on the other hand missed this as I was studying the backs of my eyelids and not the charts at 3:00 AM EST.
How silly was it of me to dismiss the reversal for poultry 100 pip move. The pattern we have been in since February has been a trading range between 1.7600 and 1.7230. That initial move left us at 1.7400, a full 200 pips short of the established top of our range, which by the way it exactly where we are now.
Tonight we are trading around 1.7595 our first region of resistance is in the 1,7600 range, and a second region around 1.7660. For support we look to around 1.7540.
While it is obvious after the last two days that we are in a short term up trend, we have the super resistance of 1.7600 to break. Since February we have only broken above it once to 1.7624, and that was a quick spike that came immediately back down. Cable has tested 1.7600 at least a half a dozen times and held, so being a support and resistance guy I feel we are staying with the established trading range.
As all of you know only time will tell, but having a good forex trading education will make a lot easier for you to predict future movement and make successful trades.
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