Published on Fri, 27/03/09 |
Reversal Patterns
EUR GBP 10 Minute Chart - 27th March 2009
This particular chart, which I have taken from this morning’s trading session on the euro pound currency pair, provides a classic example of how to make money scalping in short term currency pairs. The chart is based on ten minutes, and as we can see, at 9.30 this morning, three consecutive shooting star candles arrived, one after the other, indicating weakness in the market and a possible trading opportunity. I took a chance at this point and placed a wide stop loss above my short position, but had I been more patient I would have waited until 11 am for the confirming bearish engulfing candle to arrive, at which point I would have gone short, yielding a nice return. Now the key thing to note, is that it is very easy to take the first signal that arrives and to enter the market too early - in this case I waited for the third shooting star, a clear sign that the market is weak, before entering. The key to success in scalping is to be patient and to wait for the opportunities to come to you, and not to try to force the trades. Just be patient. Scalping is an excellent way to improve you technical analysis skills, and also forces you to be disciplined with your stop loss placement and management. Even if you only practice in a demo account, it is well worth the effort as these signals arrive every day across all the pairs, and if one is not providing anything of interest, simply change to another time frame or another currency pair, and it is an excellent way to ‘paper trade’ by honing your skills - yes I know it is always harder when real money is at stake, but practice, practice, and more practice will make you a better trader!
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Published on Sun, 15/03/09 |
Reversal Patterns
I wanted to share this chart with you, as it is a trade I am suggesting for this week, and the analysis is based on a combination of volume spread analysis and Japanese candlesticks - the perfect combination of the Western indicator reinforcing the Eastern Japanese candlestick, and don’t forget you can find the latest [...]
Published on Mon, 9/03/09 |
Reversal Patterns
I wanted to share this chart with you, as it highlights some important issues regarding timing, and in particular the need to be patient and not rush in and open a position as soon as we see a signal. Candlestick analysis is all about waiting for the signal to be confirmed as true or false [...]
Published on Tue, 3/03/09 |
Reversal Patterns
I just thought I would pop this chart up for you, which is from this afternoon’s trading on the 3rd March 2009, and is on the five minute chart for the euro dollar which was a great signal and an excellent trading opportunity. As you can see on the chart, we had a two [...]
Published on Mon, 2/03/09 |
Reversal Patterns
As I’m sure you know, I have been upgrading all my sites to provide as much information for you, and as well as the regular updates on all the currency pairs, we have recently added a host of new features to the site which I hope you will find useful in your currency trading.
First we [...]
Published on Mon, 2/03/09 |
Momentum Patterns
Sometimes when we are analysing charts we tend to forget some of the basics, so I thought I would show you a great chart this morning which I hope demonstrates the point. The chart we are looking at is the weekly for the US dollar and Singapore dollar, not one I trade very often, but [...]
I wanted to show you this candle chart, as again it has some extremely important lessons for us as traders, using technical analysis as our primary trading tool. The first aspect of this chart which I think is a perfect example is the waterfall effect, seen in mid-December 2008. In any down move, increasingly wide [...]
Published on Wed, 25/02/09 |
Reversal Patterns
This is a great chart and a currency pair I am trading at the moment, so it is very relevant and has three excellent signals on the daily chart, all of which I have used to identify reversals in the last few weeks. The first of these occurred just before Christmas last year, with a [...]
Published on Tue, 24/02/09 |
Continuation Patterns
The Japanese have some wonderful descriptions for their candle patterns, and one of these is called the window. In the West we call this a gap up or gap down and whilst not common in forex markets, they occur much more frequently in stocks where prices close in the evening, and then open with a [...]
Published on Tue, 24/02/09 |
Reversal Patterns
The reason I have chosen this chart, is not because it is a currency pair I trade regularly, but simply because it has two excellent examples of a reversal that we can benefit from, provided we are paying attention and understand these classic candles. If we start with the top reversal at 78.50 on the [...]
Published on Tue, 24/02/09 |
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