Tuesday, April 21, 2015

89 Pip Eur/Usd Bearish Engulfing Candlestick Trade

The Head and Shoulders pattern can be very profitable when combined with certain candlestick bar formations. This EUR/USD trade I took yesterday is a good example of this. I noticed that a bearish engulfing bar had formed at the right shoulder and entered a short trade (Greed Arrow). I picked the 1.07(Orange Arrow) price level as my profit target. The 1.07 level acted as support on the 16th and it is also a round number. The stop-loss on this trade was initially set @ 1.07891, which is just above the high of that bearish engulfing bar(Green Arrow). The risk was about 30 pips, and the trade closed with an 89 pip total profit, so almost 1:3 risk-to-reward ratio.

Thursday, April 16, 2015

Two Identical Trades on the XAU/USD Forex Pair

This was a pretty standard bullish engulfing bar trade(Green Arrow). I placed a buy order at the high of the the bar and took a profit at the $1207 area. I decided that area was significant, since there was a previous high there from the 13th of April(Red Arrow), where the market took a very sizable plunge. Extremes are great entry and exit areas, as there are many orders stacked around them.
The second XAU/USD trade was very similar to the first one. However, this one had a triple divergence showing(brown lines), and a small pin-bar(Green Arrow) where I entered short. The profit target on this trade was the $1198 price level(Orange Arrow), as that area was used as resistance during the 14th of April, and again on the 15th as well.
This kind of trading works great in sideways markets, but be extremely careful in strongly trending periods. Even triple divergence setups can fail miserably when the market is stampeding in a particular direction.

Thursday, April 9, 2015

USD/CAD Stop-hunting trade opportunity!

Reversal candle patterns are very effective if they coincide with a previous extreme price levels from the recent past. This USD/CAD trade happened right at the previous low (1.24291) from March 25th (green arrow). On the first chart I have marked the two reversal candle patterns(orange arrows) that I used as an entry point to go long the USD/CAD pair. I placed a take-profit order at the 1.2574 area, which was a previous turning point in the market where price made a very strong move down. In my experience, price gravitates to these extremes on a regular basis, so a good place for trade entries and exits.

Wednesday, April 8, 2015

GBP/JPY Trend-reversal Position

I entered this trade after a reversal bar formed right at the high of a very large red candle (blue arrow). I had my profit target placed right at a previous swing low and it just so happened that is where the market reversed. This was not per-planned in any way on my part, sometimes these things just happen like that.

You can see this trade recorded on my 1hr Trading Experiment Signals Page:



Tuesday, April 7, 2015

Countertrend trade on the XAU/USD forex pair

Going counter to the prevailing trend can be very profitable if you know what to look for. This XAU/USD trade pattern occurred right at the high ($1219.69) from March 26th, divergence with a bearish engulfing candle pattern. I decided to take profit at the double highs from the 1st and 2nd of April.

You can see this trade recorded on my 1hr Trading Experiment Signals Page:



Friday, April 3, 2015

Two great trades on the AUD/USD and NZD/JPY

In my experience, the best trades come always at the end of trends. Going counter to the trend, at the appropriate places is far more profitable, than going with the trend.


I took the buy entry right when that bar formed (yellow arrow), just bellow the 0.75625 low from the 10th of March. The best entries happen at previous extremes.


The NZD/JPY trade was very similar to the above one, great divergence with a rejection candle (green arrow), perfect location right off the 19th of March lows (red arrow).

Wednesday, April 1, 2015

RazorForex's 1hr Trading Signals Experiment

I was thinking of starting a demo signal service to experiment on the one-hour charts. The stops at no larger than 50 pips and profit targets are usually about 2-3 times the stop, so on average 100-150 pips. The signals will be available on MyFxBook and MQL5. I started the account in February to build up some history.

MyFxBook: https://www.mql5.com/en/signals/96106

MQL5: http://www.myfxbook.com/members/RazorTrading/razors-1hr-signal/1204367

Here is a nice trade I caugt on the XAUUSD market today: