Forex trading describes series of patterns that fits into context

Hi, Readers,

Great weekend and great run gold and other commodities as BOJ hold further easing and no clues of adding more stimulus package to recent ongoing package.
Here I have put an chart of recent activity in the pair gbp/usd and the reason why I went short and long and has long term targets, but I would built up new plan and strategies when the next weekend start and that is what we always need to do at the start of new week.

How we built a trading system based on context

We often look for the help of certain trading strategies and develop a system which really ends up with relying on candles e.g pin bar rejection at pinbar, bullish engulfing pattern at 61.8% Fibonacci which still does not confirm how does that describes that it will have a follow through and you look to wait for large stops below the pin bar or Engulfing pattern which does not really help anyways.

Pound Dollar Technical analysis Could Target 1.4900

As I mentioned in my last post regarding bullish pattern occur in Pound Dollar pair and immediate action was seen and even before Ahead of FOMC Report price has managed to hold on to gains and did no liquidate after testing the highs of 1.4610-50 area, and this could be a good sign for bulls to attack more as I have spotted an Inverse Head & shoulder price Action pattern which need validation.

History of patterns In Forex

Every pattern in trading has few strong and valid points and as well as weak points but I always back my decision and give this setup 7 out 10 as Price strong monthly consolidation pattern is about to break, and ahead of key event and if Somehow we see some bullish pattern continuation in next couple of sessions, then I am expecting this strong move in Sterling.

Fibonacci Trendline and Forex patterns don't work

Even though I put lot of efforts in learning and being not a very big fan of those fibonacci, trendlines and Chart reversal patterns like Head & Shoulder pattern, but If we see logic in those reversal patterns then there is no harm is lowering the risk at test and risk 2% or max 3% to make 10-15% of the account and that really what all expect when we first look for a trade in our favor.

The reason why I am quite subdued on this setup (not because of Head & Shoulder Pattern),because we all expect new cash flows in the days to come as we expect a big key events from both Federation and BOE.

Time For Sterling bulls to breach the resistance

This really can put up lot of pressure on sterling which has Under-perform in last few months. even though this pair has the reputation of Safe-heaven and also has performed well as safe heaven currency as We all know UK is strong enough economy to cope with recession and any global crisis such as Crude and Global Slowdown.
Pound got a hit due to reduction in global crude prices and it has been the prime reason for weakening of Single Currency Pair, because U.K rely on Brent crude to supply in Asian countries and hence decline in currency pressure was seen during that period but as Oil has recover strongly we can see the same happening to the Pound as well.

Weekly and Intraday Technicals of Euo,Pound and Franc

Sterling breakout seems smart money pushing new Cash flows in to the pair and looking for more strength towards the opening of U.S session. Stops seen around 1.4587 area . So, its quite a distance away from here. Looking for sell stops orders around 1.4430 now.

More Currencies Updates would be posted here soon

**Euro dollar and Dollar Franc Update would soon be posted on this page. Stay tuned for more updates.

Usd/chf decision engulf looking for next at 0.9900

This is a must watch setup as We have strong respect of demand and supply levels in this Chart, While trading Currencies One must be aware of Price Action Reaction at levels and how price behaves when they take over upcoming or recent supply and demand with easy .
Drop base rally is good structure overall which shows strengths of bulls but alone it does not stands any chance of valid setups but If you combine it with overall picture and structure, then you probably will get idea that some institution or US Bank is looking for strong Dollar ahead of FOMC meet this coming Wednesday.

Trading Charts does require some logical knowledge, because we all have basic technical knowledge and trendlines, patterns, fibos are very well known to each and everybody of us, but do they help us find good probability or spot smart money move in strong manner and my answer is no and that is why Novice trader keep falling in the prophecy and look for proven strategy and fall into myths of Technical Trading.
Soon I will put more insights on thought of current setup and Euro dollar Setup as well as both Franc and Euro has negative correlation with U.S dollar.

Setup closed around 1.4585
It was clinch situation yesterday when I took the trade around 1.4484 and it steep towards 1.4458, and that was the cheap price to buy after breakout but still a good trade overall, I close exactly around 1.4585 and selling bids were found there till found support at 1.4585 again,But I was happy that I pull up nice ride.

Trading terms Buy Low and Sell High

Most heard terms for a Forex Trader, that if you can't sell high and buy low you can't trade Forex successfully and that is where who concept of success and failure of a Forex trader lies, hence though If you learning strategy where You buy and sell breakouts then you must have done some research and read views of successful Forex traders that Where does that true success of Forex Trader Lies.

Buy low and sell high look like Counter trade strategy and It all depends on timing and consistency and If you trade timing is not right then You miss moves that had very strong potential, but If Your timing is right and you can read possible Correctional Bottom of a trend, or know the law of consumed supply and demand then these type of counter trend strategy really does have strongest follow through's as compare to normal Pinbar or Candlesticks Patterns.

What really is buy low and sell high is ?

This whole concept work like a plan as more novice traders look to buy breakouts and they love to do so So whole concept work around strong supply and strong demand where follow through is strong enough and We have rejection approaching the previous supply and demand area, And of-course the dialenma of what market works or being working to catch stops before big moves.

Forex Traders don't bother to learn Forex Techniques

Is it really that easy to learn Forex trading? may be not but Not hard either- as all you need to know is to make full use of resources what You have and best use of those resource in the best possible way and there should not be no compromise

One thing that We all should know and try to implement that we all have same resources which have been used over decades and will be there for the times to come and Nobody is born trader or nobody can have extra skills to overcome his failure in fields and that is the beauty of Forex Trading which can suit the worst and fail for the best or rest.
Forex is all about Mindset but sometimes it is too hard to control because of wrong steps taken in wrong ways and nobody grooms you the way one should be. Believe me it has even happen to me as well, but Most don't succeed because it is down to persons approaching Forex Trading but Not for success as the opportunity is there for all but they don't approach or get guidance as they should be.

Trading success is a combination of the right mindset and the right knowledge.

Most traders learn the wrong information or are lazy and expect some guru to give them success and its no surprise they lose - no one else can help you win. Wining in trading comes from within and you need to take charge of your own destiny. Most of the systems and e-books sold on the net are not from traders at all but from marketing companies who never traded in their lives! They make their money making claims that have no substantiation and the gullible novice traders fall for it.

Comex Gold decline at higher price

I have taken an example of my Gold trade where I thought we got the best price to sell during thin trading amid lack of global events and pairs looking or direction and riskier assets like Gold still accumulating supply and found a higher price to fail and hence trade was appropriate and timing of the trade was excellent even on last trading session of the week where we can expecting winding up of some positions.
Sometime it do tend to surprise me how gold give such beautiful swings to buy Low and sell higher and Friday US session attempt above the choppy trading was the best price offer to sell at higher prices and follow through was quite strong, so no wonder If you know how to get best prices there to sell high, one can really enjoy trading Gold in any given circumstances.

Why You can't make money with Forex

Its quite harsh at times, when someone come across the research and found that Forex Investment is one of the successful way to earn higher returns and You just need to learn few techniques and use those techniques in high leverage markets to gain and make profit with couple of big profitable trades and then relax for a bit.
Its really seems like dream, when you heard such things when you first approach Forex and in excitement take few trades and you get welcomed in the "World of Reality What Forex Market is all about", and really , you don't even loose first few trades but morale is smashed and panic start showing on your face as you always thought about recovery and then walk away and then It becomes habit to take high leverage trades and routine loosing streak follow afterwards.

Making Profit in Forex Market Requires Patience