Review of Strategic Tips on Milking the Major Currency Pairs

Hi Folks,
This is Stallion,veteran forex trader and mentor. I would be reviewing strategic tips on how the major currency pairs can be milked. Though I specialize in gbpusd, other pairs would also be taken into consideration during our analysis.

Yesterday,
GBPUSD gave a surprise rally yesterday morning when it shot thru the roof with some 118 pips in the bargain. The 1-2-3 bottom technique was used to identify and grab those pips on the table, before price reversed back downwards.

A 1-2-3 bottom is a bearish reversal pattern which signifies the previous downtrend is over and a new uptrend is begining.

2.0168-2.0050=0.0118
2.0089+0.0118=2.0207( final target point).

118pips, $118 mini, $1180 standard, was achieved.

Happy Pipping

Stallion

Hi there, my Fellow Traders,
Hope you are all enjoying the weekend. Yesterday,I missed approximately 65 pips due to a forex

workshop I was engaged in. Sorry,green pips, gotta fufill my part of my passion for

teaching.
For the news traders out there, they could explain that sweet price movement to US

CPI(Consumer Price Index) that came out less than expectations(negative for the US dollar). CPI

is like THE INFLATION RATE OF THE NATION. If it came out lower than expectation, that means

the US might likely lower interest rates for growth,and also indirectly lower their unemployment

rates too.The low interest rate expectation would trigger the news traders to SELL DOLLARS,

and in this case, BUY GBP. Demand for GBP made it rise to more than 65 pips.

For the technical analysts,we saw an ASCENDING TRIANGLE (TREND REVERSAL PATTERN)

IN A DOWNTREND, WHICH FORETOLD A BULLISH TREND TO THE UPSIDE. The chart

pattern(ascending triangle) and the price projection calculation was tied together, to bring about

our final target point of 2.0375, which is 65 pips,$65 mini, $650 standard account). You could

see how the CHART PATTERN RECOGNITION AND PRICE PROJECTION TECHNIQUE could

have been used to grab some pips off the table?
The sharp traders could have put in a SELL STOP some pips below my projected point(2.0375)

to catch the aftermath of price as it was going down, back to whence it came.

2.0289-2.0224=0.0065
2.0310+0.0065=2.0375(final target point)


CANDLE PATTERN ANALYSIS
A Japanese candle pattern is a pyschological depiction of traders' mentality at the time.It vividly

shows the actions of the traders as time unfolds in the market. The mere fact that humans react

consinstently during similar situations makes candle pattern analysis work.
A Japanese candle pattern can consist of a single candlestick line or be a combination of

multiple lines, normally never more than five. While most candle patterns are used to determine

reversal points in the market, there are a few that are used to determine trend continuation. They

are referred to as reversal and continuation patterns.

A reversal candle pattern is a combination of Japanese candlesticks that normally indicate a

reversal of the trend. One serious consideration that must be used to help identify patterns as

being either bullish or bearish is the trend of the market PREceeding the pattern.

You cannot have a bullish reversal pattern in an uptrend. You can have a series of candlesticks

that resemble the bullish pattern, BUT IF the trend is up, it is not a bullish Japanese pattern.

Bullish reversal means the trend(direction of price) is now reversing to the bullish(higher) side.

It is used in a DOWNTREND.

Likewise you cannot have a bearish reversal candle pattern in a downtrend. It means the

trend(direction of price) is now reversing to the bearish side(lower side). It is used in an

UPTREND.

Direction of the price(trend) is either bullish(going up) or bearish (going down) or

range(sideways).

Dark Cloud Cover
This is a two-day reversal pattern that only has bearish signal. The first day of this pattern is a

long whitecandlestick. This reflects the current trend of the market and helps confirm the

uptrend to the traders. The next candle OPENS above the high price of the previous candle,

again adding to the bullishness.

However, trading for the rest of the day is lower with a CLOSE price at least below the midpoint

of the body of the first candle.

This is a significant blow to the bullish mentality and will force many to exit the market. Since the

CLOSE price is below the OPEN price on the second candle, the body is black. This is the dark

cloud reffered to in the name- DARK CLOUD COVER.

SEE BELOW

Based on my CHART PATTERN RECOGNITION AND PRICE PROJECTION STRATEGY, live signals would be given out in good order.
On the gbpusd(cable) currency pair, we should be seeing price move up from an initial entry of 2.0032 to a bullish target of 2.0131, based on a 1-2-3 bottom chart formation.

forexgreenland said:

Based on my CHART PATTERN RECOGNITION AND PRICE PROJECTION STRATEGY, live signals would be given out in good order.
On the gbpusd(cable) currency pair, we should be seeing price move up from an initial entry of 2.0032 to a bullish target of 2.0131, based on a 1-2-3 bottom chart formation.

Click to expand...

In less than 3 hours, price on the gbpusd made 98 pips, $98 mini account, $980 standard account, through the CHART PATTERN RECOGNITION AND PRICE PROJECTION METHODOLOGY.

2.0051-1.9951=0.01
2.0031+0.01=2.0131(TARGET POINT)

from my price projection strategy, gbpusd might likely see a bearish target of 2.0052, from an initial entry point of 2.0110

58 pips,$58 mini lot, $580 standard lots made on the 19th.

from my price projection strategy, gbpusd might likely see a bearish target of 2.0052, from an initial entry point of 2.0110

Click to expand...

Happy Easter,fellow Traders,
hope you'all enjoying the holidays...markets were kind of dull and quite a little movement was seen from the cross pairs..
anyways, gbpusd is on an accumulation phase now,where a 1-2-3 bottom has formed...so under

normal market conditions, we can see price going from an initial entry point of 1.9847 to a bullish

target of 1.9924..dats our first target.

77 pips for Easter, $77 minilots, $770 standard lots

forexgreenland said:

Happy Easter,fellow Traders,
hope you'all enjoying the holidays...markets were kind of dull and quite a little movement was seen from the cross pairs..
anyways, gbpusd is on an accumulation phase now,where a 1-2-3 bottom has formed...so under

normal market conditions, we can see price going from an initial entry point of 1.9847 to a bullish

target of 1.9924..dats our first target.

Click to expand...

77 pips, $77 mini lots, $770 standard lots on the gbpusd for Easter

72 pips made on 2nd target, 149 pips total for Easter Celebrations

[09:21:10] Stalion : we made up to 77 pips early this morning on our first target...so if the bullish

trend continues, we could see price on the gbpusd going up to 1.9966 as our 2nd target

Helpful

forexgreenland said:

Hi Folks,
This is Stallion,veteran forex trader and mentor. I would be reviewing strategic tips on how the major currency pairs can be milked. Though I specialize in gbpusd, other pairs would also be taken into consideration during our analysis.

Yesterday,
GBPUSD gave a surprise rally yesterday morning when it shot thru the roof with some 118 pips in the bargain. The 1-2-3 bottom technique was used to identify and grab those pips on the table, before price reversed back downwards.

A 1-2-3 bottom is a bearish reversal pattern which signifies the previous downtrend is over and a new uptrend is begining.

2.0168-2.0050=0.0118
2.0089+0.0118=2.0207( final target point).

118pips, $118 mini, $1180 standard, was achieved.

Happy Pipping

Stallion

Click to expand...

Thanks Stallion - this thread is highly educational. I am learning loads.

79 pips on gbpusd for Easter Aftermath

rags2riches said:

Thanks Stallion - this thread is highly educational. I am learning loads.

Click to expand...

Glad to be of help, richy....By all means, ur welcome...

Greetings, fellow Traders,
What happened this morning,folks? We saw price on the cable(gbpusd) shot up to a high of 2.0110, before exhausting its momentum and going down.
We could see MACD trending downwards which shows an underlying weakness of the market at that point in time.
There was a break of the support trendline which signified another cue to go short(sell).

By applying my CHART PATTERN RECOGNITION and PRICE PROJECTION TECHNIQUE, we
were able to get a target point of 1.9954, which made us approximately 79 pips this morning.

All in a hard day's work,right?



2.0103-2.0024=0.0079
2.0033-0.0079=1.9954 (target point)

Stalion has joined the chat the Thu Mar 27, 2008 9:31 am

[09:31:59] Stalion : helloo fellow traders....

[09:32:09] Stalion : hope you'all had a good nite rest

[09:33:09] Stalion : on the gbpusd today, we should be seeing price going from an initial entry point of 2.0076 to 2.0106

[09:45:49] Stalion : 1st target hit!!

[09:46:23] Stalion : 30 pips, $30 mini, $300 standard lot on a thursday morning

[09:52:51] Stalion : 2nd target should be 2.0132

56pips,$56 mini lot, $560 standard lot on a thursday morning

forexgreenland said:

[09:45:49] Stalion : 1st target hit!!

[09:46:23] Stalion : 30 pips, $30 mini, $300 standard lot on a thursday morning

[09:52:51] Stalion : 2nd target should be 2.0132

Click to expand...

2nd target hit!! @ EXACTLY 2.0132



2.0073-2.0043=0.003
2.0076+0.003=2.0106(1st target to the upside)

2.0099-2.0043=0.0056
2.0076+0.0056=2.0132(2ND TARGET POINT)

Stops and profit targets

forexgreenland said:

2nd target hit!! @ EXACTLY 2.0132

2.0073-2.0043=0.003
2.0076+0.003=2.0106(1st target to the upside)

2.0099-2.0043=0.0056
2.0076+0.0056=2.0132(2ND TARGET POINT)

Click to expand...

Hello again Stallion.

Well I was in at 2.00796 but chickened out at 2.00973. I do that a lot.
How do you manage stops and profit targets? Do you close half the position at the 1st profit target and move the stop to break even?

Thanks again.

rags2riches said:

Hello again Stallion.

Well I was in at 2.00796 but chickened out at 2.00973. I do that a lot.
How do you manage stops and profit targets? Do you close half the position at the 1st profit target and move the stop to break even?

Thanks again.

Click to expand...

''If you miss out on those big moves that often
happen overnight when you're sleeping . . .

It's not your fault.

If you have family, friends, or hobbies, etc,
which take time away from your trading activities . . .

It's not your fault.

If you find yourself getting out of the market too
early because of fear or too late because of greed . . .

It's not your fault.

If you haven't found a trading system that works
for you . . .

It's not your fault.

If you find it challenging to actually "pull the
trigger" and execute an order when you find a
trading opportunity because you keep second
guessing yourself . . .

You guessed it. It's not your fault.

It just means you're normal!

Welcome to the club.

Seriously, who has the time, money, energy and
psychological makeup to endure staring at charts
with bloodshot eyes for 12 hours a day?'':clap:

Not a multitude, I guess. See, richy, its more about risk mgt and trader's pyschology than a good trading strategy.

Depending on your equity, protective stops are put 35 to 40 pips, below the initial entry point.
Closing half or a 'third' of the position at the first profit target, then moving your stops to breakeven at the initial price is like standard procedure in risk mgt.

A trailing stop of 20 to 30 pips(depending on your risk tolerance), without a profit target , is also okay, since you would likely go the maximum distance wen price is on a rip,minus 20 to 30 pips, during retracements.

For instance, price on the gbpusd might show up a BULLISH GAP when the market opens this Sunday, and we should be seeing price reach up from 1.9944 to 2.0015.
Remember, there's no 100% perfection in the markets, neither is there a ''HOLY GRAIL''.That is where risk/money mgt comes in,mon ami.:idea:

forexgreenland said:

''If you miss out on those big moves that often
happen overnight when you're sleeping . . .

It's not your fault.

If you have family, friends, or hobbies, etc,
which take time away from your trading activities . . .

It's not your fault.

If you find yourself getting out of the market too
early because of fear or too late because of greed . . .

It's not your fault.

If you haven't found a trading system that works
for you . . .

It's not your fault.

If you find it challenging to actually "pull the
trigger" and execute an order when you find a
trading opportunity because you keep second
guessing yourself . . .

You guessed it. It's not your fault.

It just means you're normal!

Welcome to the club.

Click to expand...

Hi forexgreenland,

This is a good read. Thanks for putting in the time and energy to write it.

One thing I would say about the passage you wrote above is that while I think I know what you are trying to say and agree with it in essence, people should understand that saying "it's not my fault" is NOT BENEFICIAL TO THEIR TRADING.

Taking responsibility for the outcomes one achieves in trading is very, very important. If you cannot do this then you will have a detrimental effect on your performance.

I agree with Trader Dante that taking responsibility is very important.

Its also important to take responsibility for certain types of outcome (or maybe in a certain way).

One should take responsibility for:
- the outcome of trading your strategy correctly (process)
- the performance of a stream of trades vs how it could have been if you did it right
- the strategies performance (have you created a dud untested untradable strategy).

But one shouldn't take responsibility for the outcome of a single trade in the sense of does it win or lose. See the targets thread

Textbook Bollinger band squeeze

Long 1.99607
Close 2.00007

Stop 1.99407

Expected some kind of resistance at 2.0000 but there was none! Oh well 2:1 risk/reward target hit.

Pyschology 101

Helloo Fellow Traders,
Thanks for your esteemed comments. Been under the weather lately so havent traded for a while now.But its still all good.
I understand dante's and nine's views but please dont get me wrong..(Nice post,richie, but you are about to be the subject of a brief pyschological profile, mon ami).
The ''its not your fault'' comment due to 'chickening out' from the effect of normal human emotions of fear and greed was made to assuage the subject from BEATING himself up pyschologically as a result of missed or lost trades. I've observed that majority of the traders beat themselves up when they get into that situation , instead of learning from their mistakes and saying ''NEXT''.
Dr Van Tharp, top trading pyschologist, in his program,PEAK PERFORMANCE COURSE FOR TRADERS, mentioned ''self sabotage'', as a result of the negative feelings gotten from that situation, which inevitably leads to the ''loss trap''.A vicious circle indeed. As in, a nervous wreck just cant do anything worthwhile with an excellent/profitable trading strategy because emotionallywise, he's bound to make unnecessary mistakes and fail.
This is quite different from taking RESPONSIBILITY for the outcomes of your trades, which, I must say, is very essential for all serious traders. We could say beating yourself up is at the other end of the spectra(negative) while taking responsibility is more on the middle end of the spectra(neutral to positive).
So, in essence, my comment of ''its not your fault,ur only human'' was meant as a mental/pyschological boost after a missed/lost trade or strings of them. That does not negate the principle of taking RESPONSIBILITY, in any way, on trading outcomes.
Please feel free to add any comments or views you might have on this subject.