The perfect trading system

thank you articulate

Re-read MPAA and see where the cable is at the moment in the monthly circle. The first three months have been bulish, and will consolidate the rise in the next three months. Price will most likely reach its peak between April-June. When see top of the mountain, I will lett you know within 48 hours. However, it is save to begin to look for short during this period using 50PPAA. I will post a more detailed post later in the week.

You are welcome!

I have discussed pins in may of my postings. In fact, weekly pins is rated 3rd on my parameters for placing a trade. My discussions today will center specifically on Weekly and H4 pins Price Action Analysis W&H4PAA.

To trade pins, you need to under what pins are. Pins are simply a failed attempt to break higher grounds by price within a certain period. Pins are legitimate signs of reversal. It simply means, some players try to push price higher during a bullish run or lower during a bearish run, but majority of players decide to go the other way. The longer the pin, the greater the reversal. The weekly pins are most reliable and genuine in 95% of cases. A weekly pin on the 4th of weekly candle could yield between 200-400 pips. On the other hand, 4H pins most often will guarantee you not less than 50 pips and could be up to a 100 of even 200 pips or more. The closer your entry is to the pin the greater your chance of success. Remember, always use H4 pins with 50PPAA in order to get the best result.

For the pairs I trade selectively, most especially the Yen pairs, whenever I see the first pin after a sustain move of over 1000 pips, I place a pending order right at the tip of that pain. For the Yen pairs most of the time, that pin is alway tested again. That way it is always easier to get price at the best discount i.e. the very top. Where the level is not tested, I simply delete the pending order, move on and wait for the next opportunities.

Depending on what you are looking for, study the weekly and H4 pins over a certain period of see how you can improve your trade by apply this simple price action analysis technique. Remember could be very profitable if well-plan and executed at the right time. Timing is the key in forex as I have said before the critical times are:

TIME TO BUY
TIME TO SELL
TIME TO TAKE PROFIFT; AND
TIME TO WAIT

Understand the above times and your trading will never be the same again. I know it is difficult, but with diligent efforts, you will get it right.

I attach herewith 4 weekly charts (chfjpy, eurjpy, gbpjpy, gpbusd,) in support of the above analysis. I will post the H4 charts for the analysis later.

Enjoy your weekend!






s - If there are not signals in the first and second parameter, the weekly pins (topmost and bottoms) will give you clear signals concrete zones. Concrete zones could be between 300 to 500 pips. You short as close as possible to the top of the concrete zone and buy as close as possible to the bottom of the zone. Pins after about 3-4 weekly candles are most reliable.

Articulate,thank you very much,i hope you always post your analysis every week. May Jesus bless you

Hello Articulate,

Thank you for your time and being so generous with your sharing, I continue to improve my trading.



Looking forward to your continuos posts.

Nice sell at big resistance on EURJPY

I wish I could post every week, but time is a serious constraint. However, I can assure visitors here that I will post anytime there is something worth sharing.

i will wait for your posting. thank you

I have said it several times that one of the objectives of this thread is to teach and provide guide on how to be a better trader. I am a positioned trader and might not be bothered about the market for upward 3-8 weeks, unless something dramatic happens.

For the benefits the day traders on this thread, I will provide valuable tips on how to analyse weekly candle on a weekly basis to guide your trades every week. The secret of forex trading is in the weekly chart and trading in the direction of the weekly will significantly increase your chance of success. The question at this point is how do benefit from analysis weekly price action? I will make attempt to provide the answer through the following tips.

Step 1: Start the analysis at the close of a trading week

Step 2: Open a week chart for any currency pair you want to analyse

Step 3: Identify the last week candle

Step 4: Click on insert and scroll down to shape and pick rectangle

Step 5: Insert a rectangular shapes at the top and both (pins) of the weekly
candle. I prefer red colour for top and yellow for the bottom
triangle

Step 6: Insert 50 PPAA for easier analysis on the lower time frame

Step 7: The highest and lowest point of the weekly candle is your trading
area (temporary concrete zone) for the following week. The trading
area for GBPUSD in my example is 1.6062-1.5804 (258 pips).

Step 8: Go to the H4 to identify support and resistance and M15 to enter
your trades.

Step 9: Trade in the direction of weekly for better result. Alternatively in
this example buy as close as possible to 1.5804 and sell as close as
possible to 1.6062.

Step 10: It is important to note that this is a 'precise trading"i.e. if I am
trading such set up my stop loss for buy will be on 1.5804 and
for sell will be on 1.6062.

Step 11: Determine your profit level in advance. I will advocate about 50
pips per trade for this set up and repeat if you see great
opportunities.

You can repeat the above steps every weekend for any currency pair to develop your ability to analysis price action and trade with confidence on a daily basis. I attach the weekly, daily, h4 and H1 candles for better understanding of the weekly price action analysis.

Have a great week!

Read the above post once again and spot the differences in the following charts below. Trading is logical, if you follow the sequence

Articulate your posting 10 and 12 april same with my analisis,your system very good, but now i just trading audusd and nzdusd, i trade only 2 pair and profit , i will wait your next posting,tq JBU

Articulate,

Thanks for your selfless guidance and sharing, now I understand and see a bigger picture.

Best regards.

Here the third week's update. The temporary support is still holding. Will the resistance hold? We are in the 4th week of consolidation within the concrete zone (1.5804-1.6062). Trading could be a lot easier with better understanding of price action on the weekly timeframe.

Have a great week?

Spore_Rookie,

It's always a pleasure to share my experience.

Chia,

The basic principles of trading are the same for all currency pairs. Glad to know that your trading is going well.

In continuation of our weekly analysis, the chart below depicts how to identify a breakout from the current zone through this process:

a) The weekly candle will break through the upper/lower triangle.

b) The next weekly candle will sit (opens and closes) outside the triangles.

c) The next target for the bull is between 1.625-1.630 to complete the 1000 pips bullish move from 1.524 since Jan 8, 2012.

d) The obstacle for the bear is 1.560 which has resisted three attempts by weekly bearish pin so far.


This is how to trade on a week by week basis.

You can see the dummy candles that show possible breakout in either direction. You can also see that I have my first sell limit at 1.6250 since Jan. 2012. I will review the order over the next few weeks as events unfold.

The first chart clearly shows that the weekly candle successfully broke through the temporary resistance. The first attempt by this week's to break through the resistance which has now turn to temporary support failed as indicated by the weekly pin.

The resistance has now been shifted to 1.6148 and the support changed to 1.6075

If this week's candle closes outside the red triangle, breaks through last weeks resistance at 1.6148, then 1.6236 will complete the 1000 pips move from 1.5236.

Look at the monthly chart and observe continuous four (4) months of bullish run so far since January 2012.

This is the way to look at the market!

Thanks for the tips! excellent strategies and tips ... from then on the brokerage house has much to do with the success that we have as traders

1000 PIPs ANALYSIS

Let me digress a bit today and talk out 1000 PPAA. The cable completed its 1000 pips movement from 1.6279 (1045 pips) on Friday, April 27, 2012. The journey from Jan 8 to April 27, 2012 took 3 months and 20 days, 15 weeks and 4 months of continuous bullish run.

The monthly chart clearly shoes that the ‘big guys’ have been going long (buy) since the beginning of the year. The weekly chart also shows attempts by the ‘big players’ to deceive the small players that the bullish trend has changed bearish. As you can see from the weekly chart the bearish moves were first stopped by the support around 1.5650, the support the shifted to 1.5800 and finally shifted to 1.6050.

The next question is after 1000 pips what next? Shift your attention to the Daily Friendly Chart. What did you see? The chart is telling us that it is time to begin to look for opportunities to sell at least until the daily RSI returns to around 50 points point .

My view is that between 1.6250 and 1.6300 is the ideal place to look for short. This is because after 1000 pips, some of the “big guys” will begin to take profit. I expect between 300-500 pips pull back before the bullish run could continue. A total 1000 pips reversal to 1.5300 is also a possibility. The barriers to the reversal are as follows:

Ø 1.6050
Ø 1.5800
Ø 1.5650
Ø 1.5300

Based on the above analysis, my sell at 1.6250 is valid until the weekly candle successfully breaks through 1.6300 Masterchart barrier or good for about 250 pips until the daily RSI fails to break the 50 points mark. Furthermore, 1.6000 – 1.6300 is made of ‘bunker’ very tough level to break.

I will monitor the next 3-4 daily candles for indication whether we will break through 1.6300 and post my views on a weekly basis until 1.6300 is successful broken/or acted as resistance.

Whatever you do, don’t buy until 1.6300 is successfully broken by the weekly candle and the price is above 1.6400. The MPAA shows that the bullish run might still continue until the middle of the year, while the second part of the year might be used for taking profits and winding down.

See the Monthly, Weekly, Daily, H4 charts in support of the above analysis.