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Ilovetrading

GBPUSD: Part 2 The 2618This morning I posted a trade idea titled "3rd Times The Charm" In this idea I mentioned that i had previously taken 2 losers on this particular currency pair the day before and was ready to reload once again for another shot at getting short. Well that trade payed off as our double bottom/ Bat pattern (LTF) rolled over without much pain this morning and then even more so after this afternoons fundamental action. For those of you who took the trade congrats. For those who didn't the next opportunity to get short will come in the form of a 2618 setup. Here's a link to a FREE training that we did on the 2618 if you want to learn the strategy. www.youtube.com But essentially what we're looking for is the break and close below the initial double bottom (signifying a rotation in trend) followed by an outside return into the 61.8 or structure. typically targets are taken at the retest of the latest impulse leg and some sort of extension whether it be the 1.272, 1.618, ac=cb or just future structure.
Short
by Akil_Stokes
6
USDJPY: If You Hate Patterns Don't Look At ThisI like to think that each currency pair has its own genetic code. Some pairs move very harmonically, some pairs do not. One of the reason that I like to keep my trading portfolio small is so that I can get a good feel for how each pair likes to move. Over the past few years I noticed that the USDJPY likes to go on these insane rallies....followed by consolidation in the form of a wedge pattern. Check out a daily or weekly chart and you'll see exactly what I mean. If there's one thing we know about consolidation is that "Consolidation Yields Patterns" And over the past few weeks this has been one of my favorite pairs to trade. I typically don't like the JPY but it's been a big help in pulling me out of some recent drawdowns. As I noted in my WEEKEND REVIEW video today, I'm currently short on a Gartley pattern completion at 118.65. this is still a tradeable pattern, but the risk/reward has become slightly less attractive due to the retest of the X leg. However, looking towards the future, IF price action does roll down in my favor THEN we're most likely to retest the previous structure lows once again. IF you're looking for an entry reason at that support level THEN look no further than the potential bullish bat pattern that we have setting up. I get asked a lot about where do stops go and I teach a handful of techniques to measure them. But in general I ALWAYS place my stop loss beyond structure and in the case of advanced patterns (Gartley's, Bat's & Cyphers) The "X" leg should always be a level of structure. You can check out my latest video here, which breaks down a similar opportunity on the GBPJPY www.youtube.com
Short
by Akil_Stokes
8
GBPJPY: A Beautiful Cypher Within Our Outside ReturnWhat we have here on the GBPJPY is a potential Bearish Cypher pattern completion forming within a retracement leg of the underlying trend. This pair has spend 6 straight days being bearish so it wouldn't surprise me at all if we saw some relief. So the question is IF we're going to get a pullback THEN where is price action likely to go? 9See how I snuck that IF/THEN thought process in there). Well if you understand how to read a price chart then you know that when in a trend and looking at a pullback, that outside return should complete between our previous structure lows and our previous outside return. We then want to create an "A-KILL" zone within that area for our trading opportunity. In this particular trade we would have the completion of an advanced pattern as well to aid in our decision making of where we want to get involved. I also have drawn out a potential reversal zone slight;y above the pattern completion which offers structure and Fibonacci confluence. If you want to see another example of price action trading and how to combine it with advanced patterns. Check out the YouTube video that I posted last night. www.youtube.com Akil
Short
by Akil_Stokes
8
GOLD/U.S.Dollar Back down to 1200After yesterday's scare, Gold has given us an outside return back into previous structure highs. On the way we've happened to form an advanced pattern as well. I typically prefer deeper completing Gartley patterns, but even though this one is shallow, it goes with the underlying trend. Pattern traders can look for a move back down to that magical 1200 level, why trend continuation traders have the opportunity to use this as an entry reason to hop on a potential bigger move.
FX:XAUUSDShort
by Akil_Stokes
54
EURJPY Double Top before the CypherAlthough we have a Bearish Cypher pattern resting right above this level, the double top on this pair still looks to be a very good shorting opportunity. A single ATR stop should get you above the structure level looking left so there's very little risk in this one when compared to the potential reward. I wouldn't expect a full blown reversal, looking at the daily, but after double bottoming (on the daily) we have rallied (in a single day) all the way up to previous structure so I would expect some relief, a little give back, a little profit in our pockets hopefully. ;-) Akil
Short
by Akil_Stokes
7
Rite Aid: 3 Drives Pattern & Harmonic PullbacksThe last time I looked at this stock I had a bullish Bat Pattern on my radar, which resulted in a move back up to previous structure before continuing short. That movement down ended up being the 3rd drive in a bullish 3 Drives pattern (in yellow) and what I would expect is a minimal move back up to previous structure (orange arrows). Typically when traders look at harmonic moves they only look at the extensions and not the retracements like in a normal AB=CD pattern. But when the market is moving harmonically it will often give us pullbacks that are equal moves to the previous pull backs. In this example a 3rd equal pullback would place us exactly at the previous structure level providing a great exit place for short term traders. I don't follow the stock market as much as I used to so I'm not up to date on Rite Aid's fundamentals but I do know that it recently beat earnings projections, but also lowered it's earnings guidance for the second time this year. Regardless I'm still bullish this stock both as an investor and trader and this looks as good as a point as ever to enter.
RLong
by Akil_Stokes
EURJPY: Simple Bear BatI don't typically do much trading on Monday's as that's my training day, and want to give the markets time to wake up. But I've been keeping close tabs on the EURJPY since last week and now that last week's bullish setup has rallied nicely, we now also have a potential setup as well. I get a lot of questions about how to manage trades and where to take targets off and what I like to tell my clients is to "Think Like The Other Trader" meaning if you're in a bullish position, think about where you would want to get short at if you were a bear. The same way you can build a case for entry, you can do so for exits as well. Good luck this trading week gang! YOU CAN SEE AN EXAMPLE OF WHAT I MEAN BY "THINK LIKE THE OTHER TRADER" IN THE VIDEO BELOW www.youtube.com
Short
by Akil_Stokes
8
Death Cross on $RUT $IUX makes the hunt for red octoberOn Sept 20th, we posted on our StockTwits about the formation of an Evening Star pattern. The Russell 2000 index managed to also form a death cross on the same day the Evening Star pattern was formed. This typically spells out danger for the future. As the indicators reach oversold territory, there is a chance buyers may bring it back up to the 200 day before this finally breaks lower. The 1100 support will probably be tested first.
IShort
by Wincreaseteam
AUDCAD: Double Bottom at Right Shoulder (Both Charts)Recorded a video of this trade to my Synidcate members earlier in the day but ran out of time to post this before my Live Room started. But with not a lot on my radar this morning AUDCAD was a pair that really stood out to me. Not only has the market put in a beautiful double bottom along with bullish divergence and the RSI being oversold. But we're also right at the dollar mark which should act as a pretty powerful psychological level. Now at first glance I thought I would have to let the trade go as I didn't see a significant level of structure, but as I checked my higher time frames I noticed that "looking left" we did have previous structure in the form of a left shoulder. This is very similar to the setup we captured on the EURJPY a few weeks back. On the chart I drew 2 different levels of where to think about taking positions off depending on if your more on the aggressive side or the conservative side. Akil Also, here's the link to my latest Weekend Review video "Has September Been Frustrating?" talking about why September is often a tough month for pattern traders, or non trend continuation traders. www.youtube.com
Long
by Akil_Stokes
8
AUDCAD: Double Bottom at Right ShoulderRecorded a video of this trade to my Synidcate members earlier in the day but ran out of time to post this before my Live Room started. But with not a lot on my radar this morning AUDCAD was a pair that really stood out to me. Not only has the market put in a beautiful double bottom along with bullish divergence and the RSI being oversold. But we're also right at the dollar mark which should act as a pretty powerful psychological level. Now at first glance I thought I would have to let the trade go as I didn't see a significant level of structure, but as I checked my higher time frames I noticed that "looking left" we did have previous structure in the form of a left shoulder. This is very similar to the setup we captured on the EURJPY a few weeks back. On the chart I drew 2 different levels of where to think about taking positions off depending on if your more on the aggressive side or the conservative side. Akil Also, here's the link to my latest Weekend Review video "Has September Been Frustrating?" talking about why September is often a tough month for pattern traders, or non trend continuation traders. www.youtube.com
Long
by Akil_Stokes
Bracketing The EuroIt's been a rough go around for pattern trades as of late (I'll talk more about that in my Weekend Review tonight www.youtube.com) But if the pattern is valid and meets you ROE's then you've got to pull the trigger. I'm still holding the 2nd half of my position on a EURUSD short from earlier in the week, but today we've got both a bullish gartley and a bearish bat bracketing this pair. For news today we want to keep an eye on 8:30am (ny) as our usual Unemployment Claims are released and then once again at 3:00pm (ny) as the ECB President Mario Draghi is set to speak.
by Akil_Stokes
12
XAUUSD: 1 AT MARKET & 2 POTENTIAL GARTLEY'SObviously we want to be very cautious going into tomorrow's trading session which features our monthly Non-Farm Employment change aka the Fireworks show. but was digging through some different markets tonight and noticed the abundance of opportunity setting up on gold. The orange Gartley pattern is technically completed but features a very shallow "D" leg which significantly increases the risk and reduces the reward of the move. With multiple harmonic moves and Fibonacci confluence featured in that area it's worth taking a zoomed in view on a lower timeframe inside that "Killzone" and waiting for an alternate entry technique to see if you can grab a better price. Perhaps something to watch and not trade going into Friday.
FX:XAUUSDLong
by Akil_Stokes
28
$EURJPY GARTLEY SETUP INTO PREVIOUS STRUCTUREEURJPY seems to either be returning into it's consolidation zone (marked by blue lines) or is about to break out after a quick retest of resistance turned support (top descending blue line). If it is a break out, it will be a nice setup into a Gartley which will leave us with a quick way to make some pips. Entry in the red box. Somewhere around 138.500 looks good (psychological level helps). Target 1 at 137.500 (0.382 AD retracement). Target 2 at 136.800 (0.618 AD retracement). Both targets are supported by previous structure and profits should be taken before the structure is hit to prevent a bounce back and loss of profit. Stop loss is at 139.400. This is just above X (which would invalidate the pattern) and slightly above previous structure to avoid getting stopped out too early. Good luck and happy trading :)
Short
by m4nti
EURJPY: Consolidation Brings Plenty of opportunity Nothing fancy here just a plain and simple bearish Cypher on EURJPY (This is a 4hr pattern, I decided to show it on the hourly chart because I went down to that timeframe for further analysis. But if you're a 1hr trader only THIS IS INVALID) . However if you've been following along my recent string of post on this pair (either in here or in the Syndicate) then you know that this has been one of our hottest and most profitable pairs during the month of August. With all of these wins in would be naive of me not to expect a loser at some point (for those you you thinking this is an automatic win) but if a pattern is valid I trade it and let the numbers work themselves out. Akil "The Rule of 3's" www.youtube.com
Short
by Akil_Stokes
44
AUDCAD: The Trade Before The TradeLast night I discussed the AUDCAD in a video that I put out for my Syndicate members. We had previously earned some pips on a a bearish Bat pattern, but the market never really ran too far way from this general area. What caught my attention was the series of higher lows and the fact that we finally achieved a LLLC as on last nights analysis. I didn't have a chance to hop on the trade because of a little something called needing to get sleep, but I told them that breaking those lows was the 1st sign of a bearish rotation. This morning we see that the market has put in a continuation move down and now I'm looking for another chance to hop on this newly formed trend. The ebbs and flow of this recent move has also set up the 1st 3 legs of a bearish Cypher pattern. Although this pattern doesn't yield enough profit for me to take it as a pattern can can look at it as a way to hop on the trend continuation move and ride it down to previous structure lows and/or the next bullish cypher. Akil For more information on the Syndicate Program visit: www.tradeempowered.com
Short
by Akil_Stokes
9
NZDUSD: Another Kiwi BuyYesterday I posted a chart looking at a bullish Cypher pattern on the NZDUSD. After a move to hit profits during the London session, price action has sharply retraced back into support presenting a double bottom with divergence on the RSI. If this level can hold I anticipate a rally up to at least the 8470 to 8500 level. With the same psychological level being right below the potential reward is well worth the risk in my opinion. "Plan Your Trade, Trade Your Plan"
Long
by Akil_Stokes
6
GBPCHF Double TopComing off an impressive long from last weeks bullish bat pattern, the pair has now come back to retest previous structure highs. Although i wouldn't consider this to be the optimal structure level, the risk reward that is available on this trade makes it worth the take. A single ATR stop above the highs provides me with a less than 20pip risk (if i'm wrong, I want to be wrong fast) , while a move into previous structure would offer more than 30 pips in potential reward. Check out my youtube page a little later to see how we broke this down in today's Live TRading Room session www.youtube.com
Short
by Akil_Stokes
3
USDCHF Bear Bat Follow UpFollowing up on an idea that I posted last week. The USDCHF is now at a point where traders who are aggressive with their risk management can look to roll and trails tops with structure (on the 4hr TF) One of the most important lessons that I've learned over the years from my personal trading and from my time as a money manger, is that how you manage a trade once you're in it, is almost as important as finding the right entry. The key to success is CONSERVATION OF CAPITAL. We are going to be wrong in this industry and wrong alot. The key is to learn to tell when we are wrong and cut our losses before they get us in trouble.
Short
by Akil_Stokes
6