FX Instructor Live Forex Trading Room Results | 10/18/2007

There were no trades taken today, as the market was really not conducive to any sort of situations we were comfortable trading in. Instead, lets follow up with some of our previous trades that were in the running.

Lets start with our long term USD/JPY, which has gone wrong for our trade. We had been Long on the daily timeframe, based on the breakout of a Triangle Formation. The price did give us a decent move initially, due to whatever fundamental factors were in place, but has since made a turnaround. It went down and took out our trade.

Fortunately, we managed to take some profits earlier when the price reached a target level, but we were expecting much more Longs in this particular case. We were expecting the price to go up to at least 2.0520. This is one of those things which do happen and one must watch out for.

The GBP/USD has been on an upswing today. We noticed a Bullish Hidden Divergence on the 4h timeframe, which turned out to be quite a decent setup. We had a low and a higher low on the price, with the stochastics pulling down, but by the time we got to this setup, the price was well under way beyond a Fibonacci Expansion level, which we use to determine the targets of Hidden Divergences.

The price did in fact exactly reach the 127% FE level, at which it got rejected. The technique was correct, though we did not take this trade.

The GBP/JPY, a pair we follow regularly with a lot of interest in our room, we had a Triangle Formation on the 30 min charts. The price did break out towards the short side, and also came back to retest the Triangle line, which was a decent confirmation for a Short. Again, due to waiting for some other factors, and not really being comfortable with taking on another trade, we did not enter. But the price did come down decently.

We employed the Rules of Thumb for Triangle Formations to plan this theoretical trade. We have a specific method called the Headline Fake. A breakout can be determined to be genuine or not based on this strategy, and it did tell us that this was a decent move towards the downside.

Though nothing new was taken today, we had some very interesting discussions i the room and plenty of setups are coming in the future.

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[071abhiman]

My buddy used this forex strategy named: Effectus Forex Strategy and earned about 300 pips in a couple of weeks without working!Anyone else tried this?