I have a deep understanding of the Forex market and I look forward to posting weekly updates of trades I am taking.
I will be explaining my analysis as I progress.
To give you a brief outline - I am interested in trading currencies that have made a strong move buy or sell, and are retracing in a motion I can interpret, as weak or strong. Once my retracement has completed I look to buy or sell with the aid of correlation.
This is a more advanced version of price action that if you follow will impress!
I trade the Daily/4hr time frames so please bear with me as my trading method requires patience.
Please judge me on results as I do not have fancy indicator or ridiculous line patterns to show off!
[QUOTE=“forexsubscriber;612581”]Thank you Libertysilver I use candles when I analyse my charts. Its all about patience and higher time frames, that’s were the big money is.[/QUOTE]
Patience , timing locating entry’s & exits is key
What sort of pairs will you be looking , and any commodities like gold or oil ?
A key component to my trading style is correlation. I can identify the strength in a particular pair by comparing it to all of its cross pairs.
For example, if USD is weak and CAD is strong I keep a close eye on this pair. (eg. USDCAD sell) Therein, I do not trade gold and oil as I find it riskier as I am unable to use correlation. Correlation is used for both identifying strength and pattern analysis.
Hope this makes sense I will be explain what I am doing in much greater depth as I release my updates.
I see on my daily timeframe that we have quite a lot of GBP weakness.
What I will be looking for is a buying retracement where I can potentially sell GBP.
I am relying on this movement to swing upwards in a motion of two/three pushes on my 4hr charts.
If I get a nice indication that the buying has ran out of steam I will sell and target my recent low.
Hopefully buyers will kick in and get somewhere near the circle drawn on the chart where support meets resistance, so I have space to sell downwards.
I will be keeping a close eye on GBPCHF, and GBPJPY.
I will usually gain my indication that buyers and sellers are in control from a V formation on my charts.
So for example I will see a V formation on my 4hr chart which will appear as a bearish candle on my daily chart.
I will then look for another sign of buyer failure by going down to my 1hr where I am looking for a sudden burst of activity that takes out a lot of stops.
Sometimes its not clear on your desired pair where the final failure took place. Whereas it might be clearer on a correlating pair. You can use the information from the correlating pair to take the trade you think will work out best for you.
On your GBPJPY chart the resistance you have drawn is in the right zone but you can be more specific.
I would look for my retracement to die in the zone between my two horizontal lines.
If you want more info on my trading style check out my thread on lower time frame analysis
A way of trading that will change how you percieve forex
I am keeping close tabs on AUD strength across the board.
But remember I cannot predict the strength before it takes place. I wait for the strength to show up across the board (as it has done on AUD) before waiting for it to retrace so I can buy or sell it again.
Backing the strength to still be there. (people with mega capital)
In the case of AUD I will be looking for temporary weakness. Hopefully I will be able to identify this in 2/3 swing motions, before looking to buy it up again to its recent highs.
Here is what I will be looking for very generally to give you an idea. This chart is AUDCHF.
[QUOTE=“forexsubscriber;615203”]Nice observation on AUD strength brutus2. I am keeping close tabs on AUD strength across the board. But remember I cannot predict the strength before it takes place. I wait for the strength to show up across the board (as it has done on AUD) before waiting for it to retrace so I can buy or sell it again. Backing the strength to still be there. (people with mega capital) In the case of AUD I will be looking for temporary weakness. Hopefully I will be able to identify this in 2/3 swing motions, before looking to buy it up again to its recent highs. Here is what I will be looking for very generally to give you an idea. This chart is AUDCHF. <img src=“301 Moved Permanently”/>[/QUOTE]
Ahh i see. The graphic helps. When you say 2/3 you mean 2 or 3, and when you say swing you mean waves. So you are saying after 2 or 3 corrective waves, you will look to enter with a target of the most recent high. Do i understand correctly?
long term trading can be vey effective , what sort of charts do you look at bar , candles heikin ashi?
