FX Live Day Trading Live Forex Trading Room Results 11/11/2011

Trading Patterns and technique that are more important than the result of a trade. I know we are all here to trade and win, but ultimately its the procedure that counts more - how you go into the trade, how you analyze it, how you plan your exit. We'll go over a few setups from today and the techniques which we used to analyze them.

Lets start off with one of the setups we managed to catch in time that is going so far in our favor.


On the GBP/CHF we were looking at a Regular Bearish Divergence, with price making higher highs, and stochastics lower highs. Based on our procedure we calculate our targets using Fibonacci projections on the last move down. So far its on a pause, but expect further moves down.

Lets go over a couple of other techniques. One I would like to discuss was used on AUD/USD. We were Long on this and we exited our trade when we saw the prices finding resistance in the Fibonacci Fans we plotted over the entire downmove on the H1 charts. Price did manage to rally up and stopped exactly at the fan level.

This does not necessarily mean there is going to be a reversal, but this is often an area of resistance where we advise to take your profits, and not necessarily reverse your trade, but be careful.

Generally we also use the Andrew's Pitchfork. It is a very effective tool and its one of the situations we use it in a very regular fashion. Price gave us exact resistance on the upper median line of the APF. This is very effective. The simple fact is - price action is never random. There is always a measured move, or a pettern in price, and it is up to us to decipher the pattern.

This is one of the few times when we use the APF in its conventional way. Normally we twist it around so that it gives us better figures.

I'll end this recap going over the GPB/JPY. We have been observing the daily bars - so far not broken out. But we have the possible making of a Bullish Flag. If price breaks out of this particular channel, we could expect some long moves to the upside. We had analyzed it towards the bearish side also, but right now it seems more towards the bullish side. We will be keeping a tab on this one.

See you tomorrow for more trades and techniques!

Enjoy the video!

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