The Jail Break System

I just sold NZD/CHF at .65837 on the 4 hour chart.

I am away on holiday with my family, which makes trading difficult.

Usdchf at support again. Let’s see what happens.

Watching usdchf same script as yesterday.

Patience and a plan always pays off

Usdchf below resistance. Path still looks downwards

The markets are moving in slow motion today being a holiday. Positions I took this morning was short Gbpusd, usdchf, usdjpy.

Note: I would highly recommend using the RSI (14).

Please look for the " M " as I have highlighted on the chart.

When you see these " M " forming, they are forming for one reason.

That reason is, the market maker has buyers trapped above and the pair is going to move lower.

The " M " pattern form on all pairs.

Use it when the RSI is below 50.

It works very well.

Hi Pockerchip. Thank you. On which time frame do you use the rsi 14 in terms of reliability?

The RSI works well on the H1 & H4 the best.

If you put the 200 moving average on the chart with the RSI, that helps even more.

The correct trend will help keep you out of trouble 70% of the time.

Hi Pokerchip. I have assessed your last post done on the nzdusd. There are 4 clusters of support below. The closest being at 0.70 which could push price back up or down.

What time frame are you looking at ?

I look at all the larger time frames from monthly to 4 hour.

How do you use volume accurately to determine if a support or resistance will hold?

Yesterday I talked about the " M " on the RSI chart.

Today I want to show you the " W " on the RSI chart.

When you see these " W " these are buy signs.

It's always the safest to be a buyer above the 50 RSI, but as you can see if you were a buyer below the 50 your bet would have paid off.

Now, these " W " are more valuable when you see and use them on the H1 and H4 and the Daily charts.

I use the H4 chart myself.

Here is another " W " on the H4 chart.

Your seeing these " W " for one reason.

The market maker makes the retail trader think it's a sell on the first leg down.

Then on the 2nd leg up to make the " V" in the " W " he has trapped sellers when he moves the pair up.

Then if that's not enough he pushes the pair back down to start the next " V " trapping more sellers.

Finally to complete the " W " the market maker pushes higher to complete the " W ". And moves up and away from the area.

So he's trapped 2 groups of sellers on a H4 chart.

That's a lot of retail traders that will close the trade.

Cadjpy looks like it is going to head downwards.

Tomorrow I'm going to talk about the " shark fin ".

Have a great weekend.

Thank you

Hi Pockerchip. I had a look at the cadjpy chart and you are correct there are two levels of support not far below.