FX Instructor Live Forex Trading Room Results | 11/20/2007

Its not necessarily every day that we get into a trade, nor do we need to enter a trade every day. We also have our share of losses. But for us, as long as we don't have any formed confirmations based on technicals, we don't enter into at trade. We spend the entire day here in the Live Trading Room analyzing the trades and different currencies using different tools to determine which phase of the price movement we are in.

Case in point, EUR/USD - for a couple of days now we have been looking for a Triangle Formation breakout on the H4 charts. We can see that the breakout took place to the upside - but the most important part, more so than the trade itself, is that we - and our members - are prepared. No matter which direction the breakout takes place in, we are ready with fixed targets, based on certain principles of Fibonacci Expansions which we use for targeting our Triangle setups.

Another tool we use is called a Headfake Line which we use to anticipate price movement. If our subscribers went Long, as some of them did, the price stopped precisely at the 127.2% Fib Expansion level - tell me the fibs don't work!

We firmly believe in Fibonaccis in the Live Trading Room, and use them with a lot of accuracy. Price really respects these levels!

Right now we are expecting some further upmoves on the EUR/USD, waiting for some retracements and pullbacks, and on a smaller timeframe we could identify what could be the extent of the pullback, and will possibly go Long again. Maybe the trade will come today, maybe tomorrow - thats really not the issue. The point is that we are prepared.

Another thing we had today was an interesting discussion of Fibonacci Fans, demonstrating the use right from the basics to the implementation, to the Rules of Thumb. And just as a perfect example, the GBP/JPY intraday gave us a trade today, during the late Asian session, and while we did not catch the trade, many of our subscribers have.

The trade was based on Bullish Divergence. Price giving lower lows, stochastics higher lows. Price did shoot up quite a bit - but see where it stopped! Your targets have to be fixed. Your exits are much more important than your entries. If you are not sure of your exits you might give back all the profit you earned with a good entry.

If we plot the Fibonacci Fans from a previous swing high across the entire moves, look at how the price found resistance accurately at the fan lines. This was a live demonstration of the effectiveness of Fibonacci Fans. So when you are in a trade, if you happen to get in, identify the setups, if your exits are fixed - you at least know where to take your profits and you can get out of the trade with a maximum amount of profits instead of giving them back.

Enjoy the video!

Category:

Howto & Style

Tags:

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

[airplaneking]

Fibs don't work. In you first example it wasn't "exactly" where price ended. On your second example there is clearly a restance level which has nothing to do with your silly fans.

[DJcrust]

are u indian? sounds like it :). btw nice video

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[vickabains]

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