World Clock (Trader Guide)

Tuesday, April 17, 2018

GBPUSD stands around 22-month high; strongly bullish

GBPUSD was one of the best-performing currencies on Monday, which raced above the 1.4300 handle, extending a rally that has not created a retracement in the past seven trading days. The cable reached a fresh 22-month high of 1.4362 during today’s Asian session, signaling that the pair is ready for a bullish run and point to more strength in the market.
In the daily timeframe, prices rebounded off the mid-level of the Bollinger band (20-day SMA) and the 40-day simple moving average (SMA) and extended their rally, and based on the technical indicators, momentum is to too strong to provide a sustained move higher. The RSI indicator is approaching the overbought zone and is touching the 70 level, while the MACD oscillator is holding above its red-trigger line.
If price action remains above the 1.4345 (immediate support), taken from the high on January 25, there is scope to test the 50.0% Fibonacci retracement level of 1.4575 of the significant downward movement on the weekly timeframe from 1.7180 to 1.1980. Clearing this key level would see additional gains towards 1.4770. This is considered to be a strong resistance area which has been tested a few times in the past.
If the price falls below the 1.4345 – 1.4245 support zone, then the focus would shift to the downside towards the 20- and 40-SMAs at 1.4136 and 1.4017 respectively. In case of a successful drop below these levels, it could open the door for the 1.3890 support followed by the 23.6% Fibonacci mark of 1.3815 of the upleg from 1.2100 to 1.4345 could act as critical support.
My Analysis using RSI :
Fx Overbought/Oversold: It’s Tough To be a British Pound Bear Out There

Technical Analysis via RSI Key Takeaways:

Sterling strength pervasive against havens, EUR/GBP breaks to the lowest level since May
Australian Dollar quietly strengthening against weak FX (JPY, USD)
US Dollar only strong against JPY, hedge funds favoring further greenback weakness

While it’s too early to call ‘Mission Accomplished,’ the spot rate of cable (GBP/USD) is testing the 200-week moving average. The 200-WMA currently sits at 1.4231, and a weekly close above could make it even more difficult for institutions to hold their rare GBP short positions.

While spot cable at 1.4335 is still a long way away from the Brexit vote day high of 1.5018, a break above the 200-WMA would clear a massive hurdle.
Our other analysis using Andrew Pitch Fork, MFI & Stochastic,
We technically detect a GOOD CHANCE.

We found Bearish Butterfly Pattern GBPJPY 0.02% H1 & H4:
1. The chance to form a Bearish Butterfly Pattern
2. Expected price will reverse down towards GBPJPY 0.02 at 152.35
3. With precision measurement (pattern match> 90%), we will approximate position:
Sell Limit GBPJPY 0.02% 153.55
SL 154.20
TP1 150.20 TP2 147.90 TP3 145.90

Hopefully useful & can be used as a comparison data, this is only a prediction from us, perfection only God had.

Friday, January 6, 2012

Trading With Pivot Points In Forex

Pivot points have long been used by Forex traders as a means of determining directional changes in the markets.
Pivot points are calculated levels within the market that provide both potential support and resistance levels and also a leading indication as to which way the market might be heading.
The generally held view is that if the market trades above the pivot point, it is seen as having bullish sentiment. Conversely if the market trades below the pivot point it is seen as having bearish sentiment.
As well as providing the actual pivot point, the calculations also provide immediate support and resistance levels in the market known as ‘pivot levels’. These are projections of points where the market may slow up or reverse. Three levels of resistance are calculated above the pivot point as well as three levels of support below the pivot point. These are commonly referred to as R1, R2, R3 and S1, S2, S3.
Calculations for pivot levels are made from the open, high, low and close prices of a currency pair over a selected time period. These calculations can be made for daily, weekly or even monthly charts.
Pivot points are popular among traders as unlike many technical indicators they are considered a leading rather than a lagging indicator. This is because they signal potential levels of support and resistance in advance of the market reaching these levels.
With many traders using and reacting to pivot points there is a natural tendency for markets to respond to these levels. It is therefore beneficial to maintain an awareness of these pivot levels even if your current strategy relies on separate indicators for defining trade entry and exit points.

Calculating Pivot Points

The calculation of the levels is fairly straightforward. We include the calculation below for those who are interested in calculating their own levels.
To calculate the pivot point on a chosen timeframe you will need the open, high, low and close prices for the currency pair over the selected timeframe. The calculation is as follows:
  • Resistance level 3 (R3) = HIGH + 2 * (Pivot - Low)
  • Resistance 2 (R2) = PIVOT + (R1 - S1)
  • Resistance 1 (R1) = 2 * PIVOT - Low
  • Pivot Point (PP) = ( HIGH + CLOSE + LOW ) / 3
  • Support 1 (S1) = 2 * PIVOT - HIGH
  • Support 2 (S2) = PIVOT - (R1 - S1)
  • Support 3 (S3) = LOW - 2*(High - Pivot)
The three most important pivot points are R1, S1 and the actual pivot point.
Alternatively many sites provide pre-calculated pivots for the major Forex pairs. You can of course generate your own levels by using a pivot point calculator.

Trading with Pivot Points

The basic idea behind pivot point trading is to use a move towards or break of R1 or S1 as an entry point. As the market reaches R2, R3 or S2, S3 it is likely to become increasingly overbought or oversold. These levels are then used as the exit points for the trade.
For example the market is just above the pivot point. Here your initial profit target would be set as R1 with a stop loss placed just below the pivot point. A break of this level would see R2 set up as the next profit target with the stop moved up to just below R1. If R2 is broke then so R3 becomes the new target and the stop is moved to below R2.
The same is true in reverse for short trades, remembering to move the stop loss behind the previous price target as each level is breached.
This approach is particularly suitable for breakouts type trades but it is also possible to successfully trade market pullbacks that occur between the levels.
For example if you identify the trend as ‘long’ and the market pulls back towards S1, you could then enter a trade with a stop just below S1 and an initial profit target of the PP.
While pivot points do not always work as precisely as we have seen here they are useful tool to add to your toolbox. They help to highlight areas of possible support and resistance in the market and can be successfully combined with other technical indicators to help validate trading setups.

Thursday, January 5, 2012

Using Fibonacci Retracement Levels

A popular tool used by many students of technical analysis are Fibonacci retracement levels. These are commonly used to find trade entry points. Unlike pivot points which seek simply to anticipate points of support and resistance, Fibonacci retracement levels calculate where a market is likely to bounce back to (retrace) after a preceding move. After this retracement the market is then expected to resume its original direction.

Fibonacci number Sequence

The Fibonacci sequence is an additive numerical sequence named after Leonardo Fibonacci of Pisa, an Italian mathematician of the late twelfth century. Leonardo analyzed a number of repeatable number formations found within nature to form the Fibonacci number sequence. Fibonacci numbers are formed by adding together the preceding two numbers in a sequence to find the next. For example 1+1=2, 2+1=3, 3+2=5, 5+3=8 etc.

Fibonacci Forex retracement ratios are derived from this numerical sequence. By dividing any number in the sequence by the following number we end up with 61.8. This is referred to as the 'Golden Number.' For example we divide the 3rd number (5) in the above sequence by the 4th number (8) we end up with a ratio of 61.8. This is true of the entire sequence. This is one of the retracement levels that we use in calculating Fibonacci retracement's.

Fibonacci Retracement Levels in Forex

The key to using Fibonacci is in identifying the start and end of major market moves. These two points represent the high and low of the move. In Fibonacci terms, think of these levels as representing 0.0% (the start) and 100.0% (the end) of the move. To confirm the end of a move you can use you use any of your preferred technical indicators or candlestick patterns.

Fibonacci retracement levels occur at defined points of this move: 23.2%, 38.2%, 50.0 % and 61.8% are the most commonly used retracement levels. These levels can easily be calculated by using a Fibonacci calculator. Simply input the high and low of the move into the Fibonacci calculator and click ‘calculate.’

Once the levels are calculated they can then be plotted on your chart and used to find trade entries in one of two ways.

The first way is to trade the retrace or pullback after the initial move. Effectively this is trading a temporary reversal or counter trend move. The second method is to wait for the market to retrace the levels and use this as an entry point to rejoin the original trend.

Below we look at examples of both trading approaches.

Using a Fibonacci Retracement Level To Trade a Pullback

Using Fibonacci to identify and trade pullback scenarios is a common tactic among Fibonacci technical analysis traders.

When trading in this way it is important to locate your stops properly and set realistic targets for taking profit. Th50.0% retracement level is often used as an attainable 'take profit' target and one that works well on the 4 hour chart.

On the EURGBP chart above our initial entry following the high would target the 50.0% Fibonacci retracement level with a stop placed at the limit of the initial move. If the 50.0% retracement target is reached we could then move our stops to break even for a free run at the 61.8% retracement.

In this example, our target at the 50.0% retracement was met although our free run at the 61.8% level was taken out by a market bounce.

A few sessions later we can see that despite efforts to move higher, the pair ends up retracing back to the 61.8% level and subsequently falls to complete a full 100% retracement. It is a common feature of Fibonacci that markets that retrace beyond the 61.8% level, will often tend to retrace the whole of the preceding move.

Using Fibonacci Retracements to re enter a trend

As well as using Fibonacci retracement levels to trade trend consolidations, our next example shows how we can apply a Fibonacci retracement level as a point to re enter prior trends.

We have marked out a move of the 4 hour charts which took the USDCHF from just over 1.06 to 1.0840. The first sign we get of an impending retrace is the long wicked candle on the next four hour bar following the moves high.

In the following hours the market falls back through each of the retracement levels. These limit any additional gains for the duration of the retracement. As we can see from the above example the full 61.8% retracement is just shy of being met.

Failure to break support at the 61.8% level acts provides an entry point to rejoin the prior trend. Here our target would be the previous high recorded by the initial move. This was a particularly profitable move as the market then went on to break the previous high.

Fibonacci technical analysis is like any other technical trading approach in that it provides approximations of market levels rather than absolute targets. Quite why the numbers work is difficult to say. It may well be that the number of traders who watch these levels help to make Fibonacci retracement levels a self fulfilling prophecy. Whatever the reason, Fibonacci retracement levels prove a useful tool addition for every Forex traders toolbox.

Tuesday, June 28, 2011

1000 pips in Week by Lukpayat@Mizee

I'm Mizee, Full time trader from kota damansara. Been using this methods for almost a year and manage to get 1000-2000 pips a week. The concept based on SELF FULLFILLING PROPHECY and currency strength. We can either trade in "basket of currency", single pair, or multiple pairs.
This is a summarized version for the system in english as per requested by some foreign friends.

I had found this idea of buying currency instead of pair. Previously, i used to trade EURUSD ONLY. as per recomended by some gurus in Fx. But then, I realized that trading single pair is riskier than trading multiple pair. So, i decided to create a method that could enable us to trade all pairs that is going on same direction at any point of time. - correlation trading.

Because we are selling and buying currencies. we are not selling & buying PAIR. We buy USD, we sell EUR. We just need to know what is focus currency at any point of time, if the majority of the world are selling USD, we just follow them - SELL. Meaning, we are buying other currencies to dispose USD. there are 7 major pairs bearing USD as quote or base that we can trade together. look at the bigger picture. not only one pair.

But then, how do we analyse entry and exit? all 7 pairs? NOPE.. Now we have the concept of "dominant pair". Some currency pairs are consist of two very liquid currencies. Example: GBPJPY. Both GBP and JPY are dominant currency and a product of USDJPY & GBPUSD. Also EURJPY. These GJ, GU and EJ are lebelled as "anchors" in my system as i used them as a reference when i trade basket currency.

For this system, it is very simple, understand the price action, see the number that indicates the strength index, then get ready to OP.

Traders must have strong basic and understanding about Support and Resistance and how price behaves around it. this is the heart of the system. And we have oasis currency meter to confirm the trend. I would consider this method as naked since we do not use indicators except for the candlestick itself. While currency meter is also an indicator, it is unique since it is not affected by Timeframe we chose. It is acting like a compass or map to show which currency to trade, when to trade, when not to trade and when to exit trade.

Lets talk about currency strength index. This numerical values are derived from calculating the amount of disposition of certain currency throughout the day. So, when you hear good news in US economy, it will be translated into buying USD currency. Traders and big player will start buying USDCHF, USDJPY, USDCAD and selling EURUSD, GBPUSD, NZDUSD, AUDUSD. If we focus on USD, we shall notice USD will become stronger as many are buying USD.

As a result, the supply will become lesser and the value of usd will increase. Then we shall see the OASIS currency meter reading for USD increasing. So, when USD strong, we buy USD currency. From the meter, we can identify which currency is good to buy or to dispose. So, from USD, EUR, GBP, JPY, CHF, AUD, CAD, NZD

Let me summarize the rules.
Key to this system is Price action, S&R, HI-LO Range, and Currency Strength.
  1. The gap of the currency strength between the weak and the strong one MUST be more than 3. Meaning that the Strong - Weak = 3. Example GBP is strong, reading meter shows 7, usd is weak, reading meter is 3. We have a GAP of 4. This means we can trade GBPUSD as BUY.
  2. The HI-LO on that day must not exceed the average daily range of that particular pair. If the Average Range for gbpjpy is 250pips a day for the last 100days, that means, when the current HI-LO for today is already exceeding 250pips, do not trade. If it shows yen is strong, and gbp is weak, DO NOT SELL GBPJPY anymore. No new entry after the daily range is exceeded.
  3. Prepare a Support Resistance on the pair we want to trade. There are plenty of auto SnR or even auto Fibonacci out there that you can download. Do a set of fibo retracement and expansion on Daily and Weekly as well as Monthly. Then OP when second candle is open after the first one close beyond the zone of SnR. You may refer to the ebook for picture. The complete set of instruction including the EA to control profit is available in oasis forum for free.
Ok, now, to trade currency basket, we need to identify the most dominant pair among the currency pair. For YEN pairs, normally the dominant pair is either EURJPY or GBPJPY. If we were to trade all yen pair, when yen is strong.
We want to evaluate only the most dominant pair as trigger. No need to look at all 7 pairs.
how do you identify the most dominat pair for that day? We need to use the IA. or in other words - indicator account. More details on this subject available here.

see picture below:
Once you identify that it is the most dominant pair, just do analysis on this pair and OP using script provided here.

how to read the dashboard?

This Statistic and summary indicator is to simplify my job to make conclusion which was based on a few charts.
Originally, I will refer to these 3 pair before i actually OP base on the 3 criterias:
  1. Strength >/= 3 (best is 4)
  2. Candle on TF 5 or 15 break the SnR, close above and new candle formed on the same direction. for a solid certainty entry, I would use M15, but must refer to H1 and above to check whether the SnR is Major or Minor. What is the difference between Major and Minor? The pivot is considered as major as it calculated based on Hi-LO and Average Price Daily. So the SnR is quite robust. While any SnR drawn from H1 TF below, is considered fragile as it is minor.
  3. The price must be within Daily Average Range. For this particular item, we can use the T S R Range calculator modified, posted somewhere in this thread.
Session Open - Asian Session Japan, EUR Session, US Session.

CUT LOSS when price break the SnR in your opposite direction.
SET YOU OWN PERSONAL DRAWDOWN LIMIT. Drawdown can be very dangerous is you do not use proper money management. I set at 10% drawdown from the equity. More than 10%, i will close the trade.

Normally I will be flipping through 3 charts to see where is the CS location. From the SnR as well as direction on multiTF. And also to check the range of the dominant pair. I found it tedious especially when trying to catch a move after news or session open.
This dashboard is not an indicator to give signal on Buy or Sell. It just summarize the information and statistic needed for us to make decision.

in this dash board, there are 4 segments:
1. Candle location in pips value from SnR.
2. price action (direction) on TF15 and TFH1
3. Summary on strength difference (range), spread, Hi-lo and also average range for last 5 days
4. the currency strength meter.

How do we use this?
No 1 is to see where the GJ, GU and EJ are located from the SnR. this is important for us to decide whether we want to trade both USD and Yen or just USD or YEN.

No 2 is to check the tradable pairs whether they are running on the same direction after the "pacemaker" breaking thru the resistance or support. if they are all aligned, we can trade both USD and Yen.

No 3 is to see whether the current moment is suitable for OP. the range is auto calculated and we can set the difference as 4 or 3. i would recomend 3 so that we are not too late as market nowadays is ranging. from this statistic, we can also trade manually based on those pairs which only have extreme conditions (weak versus strong). and also the range comparison is displayed here. hi-lo is the current day movement of the pair, and the dailyAve is the last 5 days range.

For this range, condition of this system = todays hi-lo must be <!--= average range. in this SS, lets take previous day as example since daily range is only 122 and still within range, and not a good example since it was friday. notice tak the 100days average range is 184 pips? the hi-lo on thursday is 175.. very close to the maximum average daily range.. at this point, even though the usd is still weak compared to GBP, it is no longer safe to buy. as it almost out of range. once the price hit resistance, very likely it will bounce back due to self-fulling prophecy on both resistance and range. i do not pay attention on the risk and the pips down or pips up statistic. i only use the range statistics. , IT IS MORE IMPORTANT TO KNOW WHEN NOT TO TRADE RATHER THAN WHEN TO TRADE.
Caution: meter is inaccurate in the morning when the market is just open. if your broker starts market at 8am for GMT +8 area like malaysia, wait for at least half hour before make decision based on oasis meter. let the market find the direction and then only we follow.

P/S: IBFX wont work since the symbols has "m: at the back of the currency pair. same goes to fxopen micro.

Hope this helps : LUKPAYAT or Brother Mizee

Sunday, September 19, 2010

Simple Trading Method with T101 IA Simulator by Carl Rodriguez

WARNING: This method may sound simple but this is not for NEWBIES. Using this system without basic trading knowledge will definitely blow your account. You need to have at least a 1 year trading experience to understand the theory of this method. There are other system appropriate for newbies.

I'm been playing this method for about 3 months now and the return is quite good. This is a very simple method and it is all base on price action, indicator free trading and it is done manually.

First you have to open a demo account and make sure that the MT4 broker you choose have the ff. pairs (must have) in their platform:

1. Download one version only.
T101 Universal Package (65.5 KB, 2673 views)
2. Put the indicator in the /experts/indicators directory.
3. Start your Metatrader.
4. Attach indicator to a busy chart. It will create data files in your Metatrader /experts/files directory.
5. Copy the program (.exe) into the /experts/files directory.
6. Run it.
7. Select a reference date.
8. Check the Realtime box. 9. Continue to play. Watch, read more of this thread/T101 thread.

The Simulator Look like Above. How to read and open entry. When all green pairs at top and all red pairs at bottom, the trend is up and good to buy/long but wait until anchor signal come out. Please test with demo account before go to real trade to avoid loss.

This is based on the 14 pairs for IBFX (thats what I have). Should work for any broker that has these pairs. You must have these available in your MT4 to use this.

Set 1 (The Buys)

Set 2 (The Sells)
Total spread for Buys = 37
Total spread for Sells = 40
As designated by T101.

Please note that MT4 is written very poorly.
To ensure you get the maximum history data for use by the program, open all 14 pairs daily charts. This will prompt MT4 to download the daily data.

Friday, June 11, 2010

The Three Trendline Strategy

Newcomers to trading the foreign exchange currency markets do well to accept the observation of experienced seasoned traders that the idea of a perfect Forex trading tool is an illusion.

While no perfect Forex trading tool exists, using a combination of tools to identify a converging of favorable market factors can yield a majority of high probability trades over a period of time.

Trendlines certainly deserve close consideration and many successful traders add them to their collection of Forex trading tools.

It should be stated at the outset that trendlines by themselves do not provide a strong enough signal to warrant making a trade. They are a useful addition and provide confirmation of signals from other tools. (See resource box for a visual example of using a trendline as a trade entry point)

The Three Trendline Strategy

Consider these three main types of trendlines you need to know and use if you are going to make any sense of trendlines.

Trendlines are lines drawn across significant lows in an uptrend, and significant highs in a downtrend. The more candles to the left and right of the lowest candle in an uptrend or the highest candle in a downtrend make the low or high point more significant.

1. Short Term Trendlines

Draw these lines across the most recent two lows (for an uptrend) or highs (for a downtrend). These are best observed on a smaller time frame such as a 15 minute or 30 minute chart.

2. Medium Term Trendlines

These are best observed on a higher time frame such as a 60 minute chart. Again connect the nearest significant low to current price action to the previous significant low in an uptrend or the nearest significant high to current price action to the previous significant high in a downtrend.

3. Long Term Trendlines

Use higher time frames such as the 4 hour chart or the daily chart to draw long term trendlines using the same method described for Medium Term Trendlines.

The long term trendline can be a powerful Forex trading tool. Keep in mind that the daily chart is used prominently by traders of big institutions. Such traders probably do not engage in small moves on an intra day level. They are more concerned about taking a position on a currency pair.

The daily chart is consulted by them when making decisions. So by drawing a trendline on a daily chart you can present to yourself graphically just where price is and where it is likely to either possibly bounce and retrace or continue with the current momentum.

Using Trendlines As An Effective Forex Trading Tool

Trendlines on the short time frame merely give you a defined picture of current price action. These trendlines are broken often during the course of a day. It is probably not a good idea to enter trades based on trendline breaks from a small time frame chart. Their main use is to give you a clear, instantly recognizable graphical representation of current price behavior.

However, here is where trendlines can prove to be a useful Forex trading tool:

If you notice price coming back to test a trendline on the higher time frames, (anything over 30 minutes), look at other factors. For example:

  • Draw in horizontal lines to mark key support and resistance using previous highs and lows.
  • Draw Fibonacci retracement and extension levels.
  • Calculate the daily pivot points and put them on your chart.
  • Have the 200 EMA (Exponential Moving Average) shown on your charts.

Now, if price were to bounce or touch the trendline on the medium to higher time frames, that is, on the 60 minute, 4 hour, or even daily charts, does that price point also coincide with or match up with one of the other indicators mentioned above?

If for example the trendline intersects with a pivot point which is also a Fibonacci 50% or 62% retracement, or 127% or 162% extension, then you have a convergence of factors. If you entered a trade at that point there is a high probability you will catch at least 10 to 20 pips on the first move on the bounce.

Looking for such opportunities takes patience. They don't come up so often but when they do you can be ALMOST guaranteed a successful trade if you keep your first profit target to a reasonable level.

If trading multiple lots, then be sure to take your first profit at the 10 to 20 pip level and let one or two other lots run if price continues in the direction you anticipate. At the same time of course you would move up your stop to break even point after taking first profit so your trade can now run without risk.

Employ trendlines as a Forex trading tool with caution and discretion. Covering your charts with every trendline possible will only result in confusion and blurry analysis.

One or two trendlines at key or significant swing points, (price highs and lows) can give you a defined, clear picture of price action, which, when coupled with your other Forex trading tools, can result in profitable trades.

Using Trendline Analysis As Part Of Your Forex Strategy

Often, not always, price will break a trendline and move away 10 or 20 pips. Then, it comes back to test the backside of that trendline. That’s where you enter the trade.

If the trendline break coincides with your other favorite indicators such as:

  • Pivot Points
  • Fibonacci Calculations
  • Previous Support Or Resistance

then set an entry order for price to take you in when it comes back to test that level.

That way you enter the trade at an optimum level and squeeze even more pips out of the move.

Note the examples below:

1 Hour Chart

See how price broke the trendline, then came back to test the backside.

If you look carefully at the chart and run your eyes left, you will see that the trendline bounce also coincides with a previous support/resistance level.

If you did some Fibonacci calculations you would also find that same point matches with 50 and 62% retracement levels.

With that convergence of factors, the trendline backside test makes a good entry point!

Tuesday, May 11, 2010

How Do You Trade The Non-Farm Payroll Report

In the development of your forex strategy do you wonder how you can trade the non-farm payroll report?

Seeing this is one of the most, if not the most, volatile announcement during the month (first Friday in every month) newer traders watch the huge movements and wonder how to make money from all that volatility.

Seeing this is one of the most, if not the most, volatile announcement during the month (first Friday in every month) newer traders watch the huge movements and wonder how to make money from all that volatility.

The answer given below you may not fully appreciate until some explanation is offered.


"How do I trade the non-farm payroll report?"


"You DON'T!"

Or to put it another way, "By maintaining a neutral position!"

The market is far too volatile at this time to expect a high probability trade. There may be some gamblers out there who relish the thought of ‘placing a bet’ to go long or short. But serious traders know better.

Actually, the professional traders I know all say the same thing: Stand aside and wait for the market to calm down.”

This may take between 30 to 45 minutes in some cases and even then the direction of the market may be uncertain.

Some suggest you can trade volatile market movers such as the non-farm payroll report by waiting for the first leg of the move, up or down, then wait for price to pull back 10 or 15 pips, then enter a trade to catch the second leg of the move which often follows.

That’s one possibility but still very high risk. Personally I prefer to base my forex strategy on sound market assessment and carefully researched trades.

Trading The Aftermath

However, while many professional traders sit out the non-farm payroll report, that doesn’t mean they don’t trade afterwards.

After the market has made a violent move in one direction you sometimes see price stalling and then give a clear signal that it’s momentum is exhausted.

Look For Combination Factors

This may be in the form of a candle pattern such as a hammer with a very large shadow which also happens to be on a key support or resistance level.

Now you can enter a trade with a small level of risk as you place your stop just above the high or low of the candle signal.

This advice applies to all fundamental announcements which are considered ‘market movers’. By developing a cautious forex strategy based on sound trading principles, you will enjoy this business and get the satisfaction of seeing your account equity steadily growing.