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Monday, May 18, 2015

100 pip USD/CAD Bullish Engulfing Bar Trade

Here is a good example of a bullish engulfing candle trade. I took this trade last Thursday on the 14th. I noticed the candle and decided to put a buy-stop right above the high of that bar (blue arrow). I also noticed that the market was setting right on a very significant support area at 1.1950, which was used as support on the 6th of May, and on the 19th of April (green arrows). The candle pattern and the location of it played a very important part in my decision to take the long position on this one. I decided that the 1.2062 area would be a good take-profit zone, since that area has been heavily used as support and resistance in the past (orange arrows). The market obviously went a lot further than 1.2062, LOL, but there was no way to know this ahead of time, so I decided to just exit at this location. The stop-loss on this trade was placed at 1.1026, so about 50 pips. So the risk-reward on this trade was 1:2, since the profit was close to 100 pips. This trade is recorded in the Razor's 1HR Forex  Experimental Signal here and here.



Thursday, May 14, 2015

Razor's 1Hr Experimental Forex Signal Results and Statistics

Towards the end of February of 2015, I started a demo account to experiment with trading forex on the one-hour chart frame. I wanted to see if trading the one-hour charts was easier than trading the lower time-frames I had been accustomed to trading. I trade with a fixed 0.1 lot on every single trade, and the stop never exceeded 50 pips. I try to take profit at support and resistance levels that I deem relevant, and that are also at least 100-150 pips away from my entry point. I also move my stop to break-even after a trade goes about 40-50 pips in my favor, sometimes sooner, if price is approaching a technically important level. The moving of the stop to break-even is very subjective and it is difficult to give any specific rules/criteria for how I go about doing this, call it instinct. Most trades were taken in accordance with specific candlestick formations that I have previously described in my forex trading videos. I have posted the trading statement bellow that shows all the trades since the start of the trading account. The account was started with an initial demo deposit of $3000, the account currently stands at $3933.64.

Lessons Learned:

Trading the higher time-frames does have many advantages; you don't get bored as much; you have more free time to do other things; not as stressful. I have been staring at the chart for several year now, and it seems that candlestick patterns are a lot more predictable on the higher time-frames. The same patterns also work on 5-10-15 charts, but it seems to me that the one hour candlestick patterns seem to be more reliable. Maybe its the fact that everyone sees the same thing!



Full Statement: https://www.dropbox.com/s/hwuzu2i29nfpv7u/DetailedStatement.htm?dl=0


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:

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

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