Posted on October 26th, 2010 by Rapid Forex3 Comments »
Want to teach yourself forex trading?
There’s stuff that forex charts will teach you that I simply can’t. So I have a simple challenge for you this week…
Watch 3 Currency Pairs This Week
I’ve selected three currency pairs for you to watch. The exercise is very simple.
Step One: Fire up a Forex Chart. If you’d like a great free chart, use the free netdania chart from dailyfx.com. This chart is great because it has all the basic tools and you can just go there with your browser. No account needed.
Step Two: Open up a window for each of these three currency pairs: EUR/USD, GBP/JPY and AUD/CHF. I chose these three currency pairs because they contain 6 different currencies. This way you’re guaranteed to see three different, completely unrelated chart patterns.
Step Three: Draw trendlines on Daily, 4-hr and 1-hr charts.
Step Four: Watch what happens. 2-5+ times a day look at these charts. Keep the same trendlines that you originally draw. In your head form a guess as to what might happen. To think like a trader, you’ll want to guess several different “what if” scenarios.
Don’t Skip This Because It’s Simple
I know you’re thinking that this is a little too simple.But hear me out...
Depending on your level of experience, you may be trying “too hard” to be right!
A beginner doesn’t know what to do. Before even trying to make trading decisions, JUST WATCH THE CHARTS!
Watch the live charts to see what happens. Just be curious as if you were watching an ongoing sports game. You don’t have to be right or wrong, just be curious.
You’re never going to be a successful forex trader online unless you get used to looking at forex charts often. Why not take your time and just get a good feel for the charts?
This is also a great time to look for the patterns you’ve been learning about.
Forex Chart Exercise Video
Watch the video below to see how to go through your forex charts and “what you should do” to set them up
Posted on August 5th, 2010 by Rapid Forex1 Comment »
Here’s an archive of a closed trade from a private LIVE forex training. Below you’ll see the unedited analysis that was given in real time for a 20 pip gain on a forex trading opportunity on the EUR/USD. This trade was originally posted in the private member’s area.
Trade Archive EUR/USD
Here are the trading opportunities to watch for today during the London/New York session.
EUR/USD
The only pair that I’m watching this morning is the EUR/USD. By looking at the recent market snapshot, we can see the EUR/USD moving in a clear uptrend on all timeframes:
On the 15-min chart we’ve got a recent extension up, so we just need to wait for a 38.2% retracement, which will happen around 1.3055 (see image below):
Trade Entered
I had actually had two waves in my previous picture. So here’s the info for the trade: Here’s the fibonacci calculator worksheet: Here are the numbers: I: 1.3021 II: 1.3091 III: 1.3065 entry price: 1.3065 stop: 1.3021 (risk = 44 pips) limit: 1.3134 (reward = 69 pips) reward/risk: 156.82% *note I entered a market order and got a price 1 pip lower than what the fibonacci calculator recommended for the trade. It’s only a pip, so I’ll stay in the trade. Here’s the etoro screen showing the settings for this trade:
Channel Ratchet
If you look at the chart price are in a fibonacci channel. A fibonacci channel is the channel formed between the 38.2% retracement and the peak of the wave. Since prices oscillate within the channel, I’ve set a limit order to sell at 1.3085. This isn’t the peak of the channel, but is close. I chose this price because there were a few candles with highs at this point, I basically ignored the extremes and went with the next group of highs. After this limit is hit, I’ll try to buy back into the trade in the lower part of the channel. See the image below:
Ratchet Log
The first ratchet was successful. I grabbed 20 pips in 23 minutes. I immediately set an order to buy at 1.3070 to buy back near the bottom of the channel. Since we’re in a channel, I can be more extreme with the ratchet. I still chose a slightly higher price to buy back than my previous entry price in case prices don’t come to the very bottom of the channel before going back up. I canceled the order to buy back at 1.3070. Since the price reached a newer high then retraced back down into the channel, I need to watch the 1-min chart more closely. If the 1min downtrend is broken with a candy cane & I can get a price lower than 1.3070, I’ll re-enter this trade. But I have to be careful because of the potential double top just formed. Here’s that I’m looking at on the 1min chart: A few minutes later the trendline was broken, but not at the price where I was willing to re-enter the trade. Here’s the trendline break with a 1min candy cane (have to use imagination, a candy cane can be 2-3 candles on this small timeframe): That’s the end of this trading session. I’ll be happy with my 20 pip profit today!
Posted on July 27th, 2010 by Rapid Forex2 Comments »
This is a closed trade that was placed as part of a live forex training.This trade happened a few hours after another successful EUR/USD trade, which I posted on the rapid forex blog yesterday.
This trade was placed in a real forex trading account & was posted as it happened. Below you can read the unedited log of this trade to see an example of Forex Surfing in action:
EUR/USD Archive Trade
In this trading session, I’m watching the USD/JPY. On the 5-min charts, there’s an up trendline break. We’re very close to the fibonacci retracement for a short wave: I’ve drawn a picture of what needs to happen on the 1-min charts to enter this trade. Basically, we have to cross the 38.2% retracement line at 86.89, then form a 1-min umbrella handle where we can get in above 86.89 short. If that happens, it’s a decent trade opportunity. To support this trend direction look at the 4-hr chart below which shows a nice umbrella handle: So I’ve entered the trade, I’ll take this as a 1min trendline break down: Here’s the eToro settings: And Here’s the other details: currency pair: USD/JPY timeframe: 5-min short I: 87.08 II: 86.77 III: 86.92 Entry: 86.92 Stop: 87.08 (max loss = 16 pips) Limit: 86.61 (gain = 31 pips) reward/risk = 193.75% Here’s a screenshot of the fibonacci calculator filled out: And a screenshot of the 5-min chart by the numbers (entry price at arrow):
30-Min into Trade
If you were looking at the 1-min chart below during this trade, you might have gotten worried about the small uptrend (red line), but you could take consolation in the fact that a head & shoulders formed (red circles). This is a reversal signal, for the little 1-min uptrend. This is exactly what we want! Of course the trade can still succeed or not work out, but this is the type of stuff you look at…
Trade Closed for Profit
At 01:28 pm GMT this trade closed for a profit of 31 pips when the limit was hit. I was out riding my moped along the ocean, so this was a smooth surf! This added 1.96% to the $200 forex trading account. That’s almost 2% in under 3 hours!
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