Forex! GBP/USD

4/14/2010

After last night's post we have had many trader's responding to see more of the Forex charts. So today I want to point out the 30 min GBP/USD chart. There is allot to note on this chart.

1. From the low at the left of the chart you can see we had blue bars and the indicator was low meaning bigger than normal move is about to start. From there the GBP/USD had a 208 Pip run and you can see we had 2 minor buy signals within the larger buy signal. This is a easy way to stay with the trend and using our methods you will always have a second opportunity entry which is the minor signals within the larger signal.

2. Once we peaked we know the market is most likely going to have a pull back or a "retrace" to the last move which was up. So you can see we have a sell signal which is the 2nd set of red bars and from there we fell over 100 Pips!
Note: this would be considered a counter trend trade so we would trade less money on this trade compared to the trend trade which was up.

3. From there we had a buy signal which is the 2nd set of green bars and we had a 90 Pip Pop!

4. From that high we had a pullback which is counter trend and in a minor wave pull back we skip that trade and wait for the bigger trend which was up to kick back in.

5. Once the up trend kicked back in we had a green bar and blue bars telling us a bigger than normal move is about to occur. And following the trade we also had a minor buy signal within the larger buy signal like on the previous wave up and that long has a 100 Pip move!

The thing to note on this chart is not how much money you can make using our methods and tools but look at how big the stops were compared to the profit potentail. This is the only method to get a risk of 1 for a reward of 30 and sometimes even bigger than that!

No matter what you trade you must look at the risk first to then determine how much money you want to use to participate in the move. You should always trade within your comfort zone and scale out of the trade to try and hold to the targets for maximuim returns for the risk you are taking.

No matter if you are trading Forex, Options, Stocks or futures the rules are all the same and we teach you how to get the answers before hand so all you must do is wait for the entry and manage the trade. Get all the confusion out of your mind beforehand so in real time you can be calm and trade the chart not your guy feelings!

Happy Trading,
www.eMiniSchool.com