As I have mentioned often -
its not the trade that is
important, it is the method,
and the tools you use to
analyze your trade. We have an
agenda here in the Live
Trading Room - to train our
members to analyze the markets
in the correct fashion. Once
you can do that, you are well
set on your way, and correct
trades should fol
more

As I have mentioned often -
its not the trade that is
important, it is the method,
and the tools you use to
analyze your trade. We have an
agenda here in the Live
Trading Room - to train our
members to analyze the markets
in the correct fashion. Once
you can do that, you are well
set on your way, and correct
trades should follow.Lets jump
straight into the intraday
activity of today's session.We
have been following the
USD/JPY at a longer timeframe,
and having been Long on a
swing trade, we still expect
the price to go further up.
Today on an intraday basis we
had entered into a Short
trade. When you have a trade
which is against the main
trend, but you have sufficient
confirmations, there is no
harm in taking it.We looked at
a Bearish Divergence which
took place on the 1h charts,
and our targets and entries
were all confirmed by using
Fibonacci Retracements. We
entered our Short at certain
levels which we discussed in
the room. The price reached
the 161.8% retracement level
precisely.There is a similar
situation on the GBP/USD.
Another Bearish Divergence.
This one may not have been as
strong as the divergence on
USD/JPY, but we plotted our
fibs to ascertain our targets,
and had additional
confirmation from Fibonacci
Fans, plotted from a previous
swing low. This gave us a
double confirmation that price
should go into the fans and
meet our Fibonacci targets.We
were also looking at the
USD/CAD, and there is one
point I'd like to mention. The
interest rate announcement for
the CAD was out today, and
while we don't usually trade
the news, just before the news
we had the price forming a
Bearish Divergence. We also
had a 1-2-3 Formation in the
making. The initial targets on
the 1-2-3 have been reached,
and thus technically the price
was signaling a potential
downmove - not a rally.After
the announcement, the price
did in fact make a sharp drop.
The point I am trying to make
is that the fundamentals are
nothing more than an excuse
for the technicals to
complete. The price will move
to fulfill some pattern on
some timeframe which you may
not be aware of - that is why
we recommend waiting until the
dust settle post-news. Look
for a technical pattern, and
enter the market on technicals
only. We are technical traders
after all, and want the price
to tell us what it is doing -
we are not here to predict the
price.

Category Howto & DIY

Tags FOREX, FX, Currency, Training, forex, 4X, trading, traders, currency, profits, forecast, money, euro, dollar