Day Trading Forex Live » Recent Day Trades

Recent Student Trade

Chad — Thu, 12 Jan 2012 06:24:38 +0000

Hi all. I thought it would be nice to post a recent trade one of our students took on his own without any help or guidance from us. We had already closed the room for vacation over the holidays and as any new trader does just as I did when I started is just keep on trading thru the thin volume. I don’t do that anymore but understand the desire. This is a great opportunity to express how important it is to make the method you trade your own and how important it is to your success. you will never be able to simply copy what a mentor does due to the fact that you have psychological differences that make it impossible. The sooner you learn your own mentality and adjust the method to your comfort levels the sooner success will come your way. The story unfolded like this. On December 28th he sent me this skype message. [12/28/2011 10:49:46 PM] Martin : just took a nice ride down woohooooo!!!! was in at 1.3071 and came out at 1.2971 as I’m leaving for UK for Russia now – Thanks for the training mate My reply was. [12/29/2011 6:04:13 PM] Chad : Awesome buddy. That’s what I like to hear. It warms my heart when I hear a student taking trades on their own and raking in the profits. Have a safe trip.

Live Forex Room Update October & 7/11/2011 Day Trade GBP/USD

stersuhr — Tue, 08 Nov 2011 03:21:14 +0000

Hey everyone! I hope trading is going well for you all. In this recent trade update we are going to wrap up last month and then get into the trade setup that we had today. October ended up with a gain of +265 pips. We didn’t win every trade and we had a few losers in a row but as you can see what matters is the monthly profit or loss. I think one of the biggest downfalls of most forex traders new to this market is there inability to lose their short sighted point of view. Often traders get so wrapped up in the here and now they lose sight of the big picture which is monthly profit. Losing sight of the big picture leads to over trading, revenge trading, “system jumping”, ect ect… Hopefully by sticking with the simple idea of only identifying what smart money is doing, everyone will be able to improve in their trading and finally crest the hill of profitability! Again going back to day trading strategy outlined in the article series learn to trade forex with smart money….accumulation, manipulation, followed by market trend. That’s all we need to understand. Â Today we had the first two steps come together quite clearly, we just never happen to enter a clear defined market trend. As you can see the GBP/USD came up and spiked above previous resistance (off screen). This showed a clear stop run at resistance, therefore showing a high probability of the accumulation of sells. Normally I like to see the stop run at the end of the accumulation however we had it at the beginning today. As you can see I have the accumulation marked in the red square. This is clear sideways price action that is often mistaken as a market lacking momentum, but as we know these periods are often times smart money accumulation areas. The market took off to the downside and we did not catch the first move down. After the first run down I said I wanted to take either the EUR/USD or GBP/USD when/if it pulled back into the accumulation area. It’s worth noting that once the market break out of the accumulation area, it will more often than not pullback into this point. This is why I stress not chasing a market but rather letting it pullback at a later time. These pullbacks are part of the manipulation. Think about this for a second. If the accumulation was the accumulation of sells which the first move down showed, then why would smart money drive the price back up to the same point. What do you think most indicators looked like as the price was coming back into the accumulation areas? More than likely everything was starting to turn up for a buy, and this is exactly what smart money’s intention was. By creating the belief in further upside traders are more likely to buy thus providing supply for smart money to sell into….clear manipulation. The EUR/USD showed the same thing as the GBP/USD. We took the EUR and it unfortunately pulled back past the accumulation area stopping us out. The EUR/GBP just happened to turn up which caused a quick spike in EUR strength, and that was enough to stop us out. Had we taken the same exact trade on the GBP/USD it would have been good for up to 40 pips initially. Later on we did end up taking the GBP/USD. We took it after the second test of the accumulation area go rejected. This trade is a bit tricky, let me explain. I had set before we left the room that I wanted to move the stop loss to break even when this hit +20. With an average entry of 27 it would have hit +20 on some brokers and not on others. It personally hit +20 on one of my brokers but not the other. Therefore some could have ended up break even and some it could have hit the stop of -20 pips. I’ve got 2 emails thus far both saying break even but I’m sure some did get stopped if they weren’t around to see what happened. Thus we will split the difference and call this a -10 pip trade. Today ended up down, but we have a lot of month left. Every month we will have losing trades which is why we learn to accept them, move on to the next day, and this is how we consistently turn a monthly profit!

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Stop Run Reversal Day Trading Entry EUR/USD 27/10/2011

stersuhr — Thu, 27 Oct 2011 05:12:17 +0000

In the last recent trade update I briefly went into the smart money model. Here is an extremely clear example of the market consolidation before a large market move. In the last update I also spelled out the facts about consolidation in that it is the vast majority of the time hidden accumulation. Therefore after a long accumulation period we were anticipating a very nice move and that is exactly what we got! I will make this update brief because I just finished the 3 part article series on how Smart Money moves the forex market. The article series is entitled Learning To Trade Forex With Smart Money. If you haven’t viewed them yet I welcome you to go check it out. The chart you see here will make a bit more sense once you go through the educational articles. Anyway, on to the trade setup. Initially the candle that jumped out of the range looked like a jump bar up to me and it in fact fulfilled all the criteria that we look for (I will cover the criteria in the coming days with another article). Therefore when the next candle began to pullback we took the entry long at 1.3933 and closed this trade out for -10 pips. One thing I personally feel new traders dismiss to frequently is the information your gain from being stopped out. Here the market showed clear intent to the upside. That intent clearly failed. Often times when you have strong false intent that is rejected equally as aggressively the opposite direction the market will move a great distance. Knowing this we took the next trade short after the candle closed down below the accumulation. At this point we knew what SM had been accumulating with a high degree of accuracy. The reason for this is the stop run. Why is price ran above the resistance. Think for a second what type of orders sat above the highs of the accumulation. There were stop loss orders for anyone who was short before the move up (thus a buy order) and there were buy orders for those looking to take a long on the breakout. Therefore by driving the price above the resistance Smart Money pushed the price into a great deal of buy orders that they were able to sell into at a great price. Therefore if they caused the stop run to accumulate buy orders wouldn’t it make sense that the sideways accumulation was as well buy orders. It is critical to read the lessons mentioned above to fully understand the Smart Money market cycle. Once you understand that you will see how perfect this setup was in that it contained exactly what we look for in the perfect formation as well. Accumulation, stop run, market trend. As I mentioned above we entered the market right after the first down candle formed. Based on the formation of the candle you can see that it completely engulfed the entire accumulation area. Half of this trade was closed for +40 pips and the

Learning To Day Trade With Smart Money GBP/USD Short 10/20/2011

stersuhr — Thu, 20 Oct 2011 06:17:00 +0000

Hey! I hope trading is going well for everyone. We’ve seen some nice moves the past few days and I thought I would cover something rather important in this recent trade update that I’ve never really touched on before. This is a bit longer than usual but I can promise you that this information and the information to come is some of the most important I have ever put out! Over the last few weeks in the forex room I have really been stressing the need when day trading forex to not focus on only one specific “thing”, but rather the need to focus on the overall picture of theÂ market. Being able to decipher this overall picture is without a doubt a day traders key to success. Let’s break down this trade. This is something I feel the vast majority of traders do….that is they completely neglect what consolidation really is. You see, retail traders are told from the very beginning that consolidation is very simply the market not picking a direction. That would be nice if it were true but for the most part its not! Then what is consolidation?Â More often than not CONSOLIDATION IS ACCUMULATION! I will break this down in extreme depth sometime this week or early next so for now just assume I’m right and stay tuned for the further info. An example of what someone might term as consolidation is circled above. Who Is Accumulating Have you ever noticed that following times of consolidation are some of the largest moves? Have you ever noticed that at the end of the consolidation it will often make a quick “stop hunt” type move and then take off in the opposite direction? If you haven’t begin to look at this. Without a doubt this is one of the largest fallacies in the forex market. Who moves enough money to have to accumulate orders over time? You and I can simply press buy or sell and the market doesn’t even know we entered, but who could be big enough to HAVE to enter the market gradually overtime through accumulation times like this? Simply put smart money (SM). In reference to this article we will define SM as banks, funds, large institution, ect. Therefore if these are the times when smart money is coming in the market shouldn’t this be the single most important time

Live Forex Room Trades EUR/USD – Week Of 10/10/2011

stersuhr — Sat, 15 Oct 2011 20:37:53 +0000

Let’s get right into the first day trade we took in the forex room this week. The was a standard Jump Bar (JB). Again were not really focusing on the candle or bar but rather the median line. This median line helps us sift through the volatility we have seen lately in the forex market. First and foremost, to be a JB the median line needs to close above or below at least 3 previous median lines. The JB marked here closed above 7 previous bars median lines thus fulfilling that criteria. When this happens you also want the bar closing above its 50% point. This bar could have closed at its lows which would have shown rejection, and the median line would have been in the same location. Therefore in the case of a JB up it needs to close above its 50% point, and in the case of a JB down it would need to close below its 50% point. Additionally this bar closed with higher volume than the previous candle showing an increase in intent, thus fulfilling the 3 criteria for a JB. We closed this day trade for +30 pips on half and the second half was closed for break even. The market came back and stopped this trade out at break even on the last half before running and hitting the final +150 pip take profit. Another point worth mentioning is the bar right before the JB. Notice how

BOE Asset Purchase 10/06/2011 GBP/USD

stersuhr — Mon, 10 Oct 2011 23:05:23 +0000

Identifying when consilidation is actually breaking in the forex market can be difficult. What we term the jump bar is one way of identifying that break. The jump bar uses a 1 Moving Average HL/2. The 1MA HL/2 very simply plots the median price of each candle. This is how we identify trade setups for the Jump Bar (JB) entry. We will break down this forex trading strategy and hopefully you can begin to put it into practice with your own day trading. Notice the bar with the arrow pointing to it. It fulfilled the 3 criteria we look for in order to be a “jump bar”. Number one the median line needs to jump above or below at least 3 previous median lines…in this case it jumped above all the sideways consilidation which was 10 bars. After it does that we need to insure that the jump bar closes above its 50% point, in this case it clearly did. Finally it must close with higher volume than the previous bar. As you can see the bar with the arrow pointing to it was the first bar in the sideways consilidation that meet the criteria for a JB. Once you have a JB you then take the entry when the next candle pulls back to the median line of the JB. Right before this setup there was a 200 pip spike down on the GBP/USD caused from the BOE expanding their Asset Purchases from 200 billion to 275 billion. The next 15M candle moved down a bit more and then fell into a couple hours of quite boring sideways price action. Finally the market gave us a JB entry long which we took at 1.5325 on the GBP/USD. We closed half of this trade for +30 pips and closed the last half of the trade for +310 pips the following day. This trade was +170 pips overall. I will be posting an article tomorrow covering the Jump Bar Entry which should help in the explination of the day trading strategy.

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Forex Day Trading Room 23/09/2011 EUR/CHF

stersuhr — Mon, 10 Oct 2011 21:30:45 +0000

Well I’m finally getting over being sick so I thought I would do a recap of the day trades taken in the forex day tradingÂ room this week. Overall we had quite a boring week as far as the NY session is concerned. That being said London was very productive and profitable which was nice! The highlight day trade of the week was the EUR/CHF. As I put in the last recent trade update the SNB pegged the EUR/CHF to 1.2000 a few weeks back. After this the EUR/CHF was channeling between roughly 1.2020 and 1.2050 Knowing this level we put a OCO (one cancels other) order in the market as I talked about previously. It missed triggering us in at 1.2020 by roughly the spread, and then went to fill us long at our pending order of 1.2055 This trade took over a week to finally close out. Overall we took +125 pips off this trade. It was half the position size we normally take and therefore it is only counted officially as a +62 pip trade. Not a bad day trade, but it could have been a bit better. There was a “tape bomb” that hit the wire Friday which caused a brief spike towards USD weakness. This caused the USD/CHF to spike down, which in turn caused the EUR/CHF to spike down and hit our stop of +125 pips. Hopefully we will see a deeper pullback this coming up week for another chance

Weekly Update 16/09/2011 – Long Term Day Trade Setup EUR/CHF

stersuhr — Sat, 17 Sep 2011 01:42:51 +0000

Hey everyone. It’s been a while since the last trade update. I hope everyone is doing and trading well! This week was for me a “testing” week, and thus why I only took a few day trades. Over the last 2-3 weeks we have seen some incredibly strange price action in the forex market. It seems as if the fx market caught a bad case of alzheimer’s and forgot how it “normally” responds to general price action based day trading strategies. This isn’t so out of the norm for the forex market during this time period. It is well established fact that many major bankers and currency traders are on holiday from the end of August through Labor Day week. This time is often referred to as the “summer doldrums” due to it’s lack of activity. Now this time around we had no lack of movement, it was rather the way in which the market moved. That being said we stayed cautious this week hoping to see a return to normal in market volume, patterns, and general price action…..and we did! I don’t have much to go over with the weekly update except for one pair and that is the EUR/CHF. Last week on Sept 6th the SNB (Swiss National Bank) pegged the EUR/CHF at no lower than 1.2000 Essentially they vowed to keep the EUR/CHF above this point. In slightly over 15 minutes the EUR/CHF spiked up over 900 pips to get above this point. Therefore 1.2000 is the protected level. Trading forex is all about risk vs. reward. Before getting into a trade, while managing a trade, and determining when to exit a trade are all points where you should be examining the potential R/R. That being said let’s examine the R/R on the EUR/CHF. If you look at a weekly chart of the EUR/CHF you will see that the last push down starting in October of 2007 was close to a 7000 pip move down. With the SNB’s promise of holding the price above 1.2000 there is from the current price only around 80 pips of risk and about 4700 pips to the overall highs of the last large move down. Now I wouldn’t shoot for that as a take profit but I’m simply illustrating potential. Let’s just say this goes to just the 38.2% retracement which is right above 1.2600 and thus in the area of a 600 pip take profit from this current point. Now I rarely hold trades for an extended period of time but this situation is a bit different. In the forex room we got long on the EUR/CHF from 1.2055 with a pending order to go long. On the chart above it triggered our pending order to go long with the first bounce off the trendline. Essentially I put a long order above a range from the previous day. This day trade is based strictly on R/R. We plan on holding this trade for quite a while. As of right now we have a 40 pip stop on our position. I don’t think this will re-test 1.2000 exactly which is why our stop is not below that level. When the market opens on Sunday give some thought to this trade and if there is a short term price based entry giving a small stop it might not be a bad scalp that you could potentially turn into something much much bigger! See you all Monday! If your interested in a quality forex education in a live learning environment then check out our 14 day trial of our Live Day Trading Room

Day Trading Forex News GBP/USD 26/08/2011

stersuhr — Sun, 28 Aug 2011 04:31:16 +0000

Today we had the intensely awaited speech from Ben Bernake. Forex traders everywhere were waiting on the words “QE3″ and they didn’t get it. Once this happened we saw equities sell off instantly. Both the EUR/USD and the GBP/USD went with it. The GBP/USD spiked into lows and started to bounce and we went long. Candle #1 on the chart was our entry candle on this 1M chart. On this one we took +20 on half and then the last half was closed for +10 pips. The second trade we took was at point #2 on the chart. If you were watching the EUR/USD at the same time you would have seen the EUR/USD absolutely tanking at that time. However the GBP/USD was still holding above the last major support level, therefore it still was giving a decent entry. Using correlation we knew the GBP/USD had a strong possibly of breaking the lows the same as the EUR/USD did. Â We went short during candle #2 and took half of the position off at +20 pips and the last half we closed at +55 pips, thus making it a +35 or so pip day trade overall. Before both of these trade we also had a EUR/USD long that went for +10 pips total. Overall today we took +60 pips. This was a nice close to a week that showed some extremely difficult price action. Patience will always pay off in the end, and today was

EUR/USD Forex Trade Short 25/08/2011

stersuhr — Sun, 28 Aug 2011 04:10:09 +0000

Going into the NY session the trend was down and as you can see on the 5M chart above we have consecutive lower lows and lower highs. Again we were waiting for out standard volume based forex trading strategy to come together. Things started to work out when we got a higher than average volume candle at resistance, which was candle #1. After that we then look for a candle to move down as far or further from high to low, but yet do so on clearly less volume. Candle #2 didn’t quite fulfill this criteria, and besides that it was right above support. Taking a day trading entry short right above support is a common sense no no. After we weren’t happy with candle #2 we then waited to see if candle #3 would fulfill that criteria. Candle #3 finally gave us what we were looking for which was a candle that moved as far from high to low as candle number one, and did so on less volume. Additionally it closed below support which gave further indication of another push down. You can read more about our volume based forex trading strategy in the forex education articles section of the site. About 5M after entering this trade it was announced that Warren Buffet was putting 5 billion into Bank Of America. This caused a large spike in equities. The EUR/USD and GBP/USD have been tracking right along with equities lately, and when they

Forex Volume Day Trading Entry GBP/USD 24/08/2011

stersuhr — Thu, 25 Aug 2011 20:23:03 +0000

The GBP/USD was already trending down slightly when coming into the trading room Tuesday. There was a small range that the market stayed in for close to an hour before finally breaking down. Normally those resistance channels, once broken…become resistance if they break to the downside. If it were to have broken up we would have looked for that range to provide support on a re-test of it. This is the same basic principal of a breakout continuation level. For more information on that you can read the article that covers those type of support and resistance levels Knowing this area would more than likely provide some resistance we waited for the market to reach this level and give us a volume based setup. Forex volume gives the final confirmation that the support or resistance is going to hold, in this case resistance. The day trading strategy using volume requires 2 candles to point towards a change in direction. Once the market reached that resistance point our forex trading strategy criteria was fufiled and we took a volume based day trade short. We took +15 pips on the first half and +40 pips on the last half for a total of a little over +25 pips. For more information on the forex trading strategy used in this day trading setup check out the article that goes over our forex volume strategy. Trading has been rough out there. With increased volatility, larger swings, and abrupt moves trading has becoming increasingly difficult. While you may not make money every week, it’s important to stay focused and stay disciplined. Forex trading can be a very boring job when you go it alone. If you would like to come trade with others, and more importantly learn how to trade forex then come check out our 14 day trial to the forex room. Times our tough, and in an effort to include everyone we have a special running. $299 for the entire year. This allows you to trade with others, receive a quality forex education and learn new day trading strategies for an entire year at one low

Breakout Continuation Level – Day Trading The USD/CHF 19/08/2011

stersuhr — Mon, 22 Aug 2011 02:37:05 +0000

We will keep this day trade setup short and sweet. To begin we had a previous support level on the USD/CHF that broke and then became resistance. The market re-tested this previous support turned resistance, and it held nicely. The USD/CHF again began to run down off this level. I want to give credit where credit is due….a member in the forex room pointed out this level to me as the USD/CHF is not a pair I normally watch. It’s nice to see traders taking what they have learned and putting it to good use:) There was one final support area that I said I wanted to see go which was the .7869 area. It started to work through that and we went short. Overall we took 30 pips off this trade. Someone in the room brought up a good point mentioning the intervention on the Swissy. The reason I was comfortable shorting the Swissy was because of history. Ask yourself this….have you ever seen an intervention in the forex market actually break a trend? Every BOJ intervention on the USD/JPY has failed thus far. Why? When you try to turn the market with only a days worth of order flow you will lose. Unfortunately the BOJ is finding this out and as of right now the SNB is as well. Now that doesn’t mean they won’t eventually weaken the Swissy, but if history has anything to say about it they will have a

Trend Line Test – Continuation Day Trade EUR/USD 18/08/2011

stersuhr — Mon, 22 Aug 2011 02:24:47 +0000

Sorry I didn’t get a chance to update the recent trades a little sooner. This week was a bit rough for us in the room. It was our first negative week in the day trading room in quite a while. That’s all part of trading and how you recover is what determines who will be successful in the forex market. That being said lets get into this day trade from Thursday. Thursday the EUR/USD and the GBP/USD has been trending down throughout most of the London session and into the start of the NY session. At the point of candle stick number one the market had retraced into trend line resistance. At a resistance level we look for an above average volume candle. This signals to us a possible change of direction coming up. Candle number 1 gave us that higher than average volume candle. Once that candle closed we needed the next candle to show us clear decisive selling. This is done by the second candle moving as far or further than the first candle (from high to low). The measure of high to low of a candle is the spread. Therefore the second candles spread needed to be the same or more than the first. Candle number two moved down, as far as candle number 1, but did so on less volume. Moving as far on less volume showed us clear selling. Forex volume measures ticks in price, therefore when

Forex Volume Day Trade – GBP/USD 15/08/2011

stersuhr — Tue, 16 Aug 2011 03:52:18 +0000

Coming into the forex room today both the EUR/USD and the GBP/USD had run 50 + pips. If you follow this blog you know a market that is already extended makes for difficult trading. It makes it hard to take a continuation trade because the potential for a retracement becomes higher the longer it runs, and it becomes risky to take a retracement trade because the trend is clearly strong. Personally, and what I recommend in the day trading room is to wait for one of two scenarios. First, you can wait for a large retracement of the move and then a continuation trade, or you can wait for the market to come into MAJOR support or resistance depending on the direction of the trend. In this case we waited for the market to come into major resistance since it was trending to the upside. On the GBP/USD this level happened to be a psychological round number of 1.6400 which was also a previous major resistance point from the 9th of August. When it came into this level we looked for our standard volume forex trading strategy to come together, and it did. Our volume based entry is a 2 candle entry. Normally we like to see those candles right next to each other but in this case there was a candle inbetween. The first candle in the setup is a higher than average volume candle. Simply put once the market

Forex Room End Of Week Wrap Up 12/08/2011

stersuhr — Mon, 15 Aug 2011 03:18:58 +0000

Above is a daily forex chart of the EUR/USD. Now I didn’t place this chart up here to illustrate a day trading setup, nor longer term setup. I posted this forex chart to illustrate the type of marketplace we have dealt with lately. Over the last few weeks we have seen some extraordinary price action in the forex market. I’ve been day trading for 7 years in the forex market and can’t remember seeing a daily chart that looks like this on the EUR/USD. Normally the EUR/USD is the pair that sees some of the cleanest moves in the market, and some of the nicest trending daily charts…but not lately. In this type of forex trading environment you can lose money very quickly! With the right forex trading strategy however you should still be able to turn a profit. Honestly do you think more people made or lost money last week? How has your trading strategy held up to the current market conditions? Both are good questions that some thought should be given to. Three weeks ago Chad (London trader) and I unveiled the new forex day trading strategy based on volume trading and fx price action. As I’ve said before little did we know that we would unveil it in one of the most volatile difficult markets anyone has ever seen! That being said, during a time when the majority are more than likely losing money we have been profiting. Each week since it’s release it has consistently dealt with this extremely unstable market, and dealt with it well! While you will still have losing trades, you will be able to profit overall when trading it properly. Here is a link to the new day trading strategy article entitled Forex Day Trading Strategy – Day Trade Forex Volume. I truly hope this trading strategy helps guide you through these rough markets as it has us! I look forward to seeing you all next week in the forex room, until then happy trading! 14 Day Trial To Our Live Forex Room – $299 for the ENTIRE year while available

GBP/USD Day Trading Entries 10/08/2011

stersuhr — Mon, 15 Aug 2011 02:46:58 +0000

Hey everyone. I hope trading is going well for everybody! Before we jump into the chart above from Wednesday let me just say that we ended the day -13 pips down on Tuesday. We were short the GBP/USD Tuesday before the huge 200 pip drop but it stopped that day trade out at break even by a few pip right before tanking. That’s the way it goes sometimes, anyway on to Wednesday. Wednesday we had 2 nice day trading opportunities on the GBP/USD. The first of which I did not show in the chart. The first trade we went short at 1.6245 and closed half of the trade for +20 and the other half was closed for +40 pips, making it a +30 pip trade overall. After that nice little short setup we then came into support. Once reaching any support or resistance point we then look for the first criteria in our volume based forex strategy which is an above average volume candle at support or resistance, in this case support. As you can see if you look back at your charts from Wednesday candle number one was clearly an above average volume candle. Once that candle closed we then measured it’s spread, which is the distance from high to low. Candle number ones spread was 10 pips. A high volume candle at support or resistance is the first indication that the market may turn. The increase in volume shows clearly that

US Down Credit Rating Downgrade – GBP/USD 08/08/2011

stersuhr — Mon, 08 Aug 2011 20:22:33 +0000

Today was the first day back after the downgrade of the US credit rating. I wrote on a question in yahoo answers about what will happen to the EUR/USD as well as the GBP/USD. As I mentioned over the weekend more than likely the forex market would sell off towards USD strength. I did not however expect the gap up which was a bit of a surprise to me. By the time we got in the forex trading room for the NY session however the EUR/USD and GBP/USD had already started to move down as expected. Therefore I was a bit more enthused about getting short on either the GBP/USD or the EUR/USD. It took a while but eventually we had a beautiful setup to go short on the GBP/USD. The GBP/USD came back into the 1.6350 area and made a smaller double top on the 5M chart. Once we hit this level again it then gave a nice volume and price action based entry short that meet our forex trading strategy criteria exactly. We took a short around 1.6344 and closed half at +20 and the other half of the trade was closed at +30 pips. This was a nice trade overall, and it added to our profit for the month. For the last few weeks we have been focusing on patience in the day trading room. Not because we want to focus on that but because we have had no

Non-Farm Payroll – Trading Forex News GBP/USD 05/08/2011

stersuhr — Sun, 07 Aug 2011 23:31:50 +0000

Friday we had the infamous Non-Farm Payroll, and it came out slightly better than expected. As I mentioned in the forex room before the news came out we will often see the GBP/USD and EUR/USD spike in the opposite direction as they should. He’s why…..for example this month the number was positive and therefore the USD/JPY spiked up nicely. Because of this the GBP/JPY and EUR/JPY spiked up as well. When the GBP/JPY and EUR/JPY spike up that cause instant EURO and Pound strength which is why you now a days often see the GBP/USD and EUR/USD often spike the opposite direction they should. After they spike this direction however they often times follow through the direction they should. Knowing this we took a short position once the spike was well over….in fact 7 minutes after the initial spike. Our short entry was when the market retested the 1.6300 level. The GBP/USD gave every indication that it was going to move down but simply didn’t see any follow through. We took 20 pips off the first half of the trade and then the other half was closed at break even. Wish we could have taken a bit more from this one but as you can see from the chart there wasn’t a whole lot to get. After that we waited a bit for the next day trading opportunity to present itself. About an hour later there was a nice shorting opportunity. At point #2 on the chart we had a volume and price based entry that meet our specific criteria for a day trading entry and therefore we took it short. Again we took half of the position off at +20 pips and the other half was again closed at break even. There was a nice long entry that I missed on the GBP/USD unfortunately. The stop loss was a bit wide for my taste (30 pips) and therefore we decided to let it go. Either way it was still another great day in the room and we had 2 very nice day trades. You never go broke taking profit!:) I hope trading went well for everyone and I will see you guys Monday with the next recent trade update! Again for the time being we are offering one full year of the forex trading room for only $299. Normally the price is $199 a month but for right now we decided to lower the price in an effort to involve those who simply could not afford the full price. I hope to see you all in the trading room! 14 Day Trial Of Our Live Forex Trading Room

Forex Volume Based Trend Reversal EUR/USD 04/08/2011

stersuhr — Sun, 07 Aug 2011 22:26:48 +0000

Thursday we had a bit of a slow day in the forex room because Trichet was speaking. Normally anything worth saying will be mentioned during the first part of the ECB Press Conference, and quite frankly nothing worth noting, and more importantly, nothing worth trading was said IMO. While there were many insignificant positive and negative comments made, nothing that would concretely move the market was mentioned. That being said we had to wait a while for a day trading opportunity to come together. As the speech began the EUR/USD began to chop around and then drop fairly decisively. Along the way we noted support levels that could potentially turn the market. One after another the market worked through those support levels without giving a signal of reversal or retracement. Fortunately volume based entries filter out the vast majority of “fake” reversals, therefore keeping us safe. Sometimes it’s not about how much you make, and more about how much you don’t lose. With as crazy as the markets have been I think many investors would wholeheartedly agree with me. Keeping that idea in mind we always do our best to never force a trade, but rather let the trades come to us without forcing what isn’t there. That being said we finally had a day trade come together. The EUR/USD fell into some support around the 1.4110 area and then gave a volume based entry to go long. With our proprietary forex

Trend Continuation Forex Day Trade EUR/USD 03/08/2011

stersuhr — Thu, 04 Aug 2011 02:24:50 +0000

Hey everyone. Welcome back for another day of trading. I hope every one’s day trading is going good as well! Today we started off with some horrible stagnant price action in the forex market…..especially in the GBP/USD. Refer to your GBP/USD chart around 8AM EST to see what I mean. So as we sat there waiting for the market to make a move, I said I would need to see the market make a decisive more before considering a trade. Fortunately the EUR/USD did just that. Right around 9:30AM EST we saw the EUR/USD break a short term trend line to the downside on the 5M chart. This was enough to peak our interest in the forex room and get us watching. As with any trend line break I will not chase the forex market. Therefore I simply wait for the market to pull back to what I call the “point of breakout”. The point of break out is the horizontal price level the market went through in order to break the trend line. As the market came back up to the point of break out we began to look for out volume based entry. Upon reaching this price is was clear to us that the buyers were handing the market to the sellers and letting them take it. We went short and managed to take +20 pips off the first half, with the second half getting closed at break even. I probably should have closed the second half of this trade for a little profit when I saw it start to bounce off the 200EMA on the 5M but I expected a bit further downside out of this one. If you look at your weekly chart you will see a very large reversal candle off resistance showing the potential for further downside throughout the rest of the week from a technical standpoint. Even though we trade short term I believe it is important to still look at the daily and weekly time frames once a day to get a better overall perspective. This helps when setting final take profits in a big way. You may have gotten into the perfect entry for a swing trade and exit it for only +20 pips when you could have looked at the daily and seen it was setting up for something a bit longer. Even if you strictly day trade the forex market as we do…..do yourself a favor and beware of what is happening on the longer time frame charts! I will see you all tomorrow with hopefully another profitable day! 14 Day Trial Of Our Live Forex Trading Room

Euro Day Trade Short 02/08/2011 – Live Forex Trade

stersuhr — Wed, 03 Aug 2011 04:10:00 +0000

Around the lows we missed an entry long. Unfortunatly the market had been trending to the downside and this trade gave the entry to go long right at resistance. I didn’t take this day trading setup because of this an it ended up being the “trade of the day”. A little later on in the day we got a volume based entry to go short at a breakout continuation level. Essentially it was previous support that was broken and now acting as resistance. After getting into the EUR/USD short the market then went sideways. This was the first sign that we should have gotten out. The second was the 3rd candle from the right. Notice how it tests below that tight little range and then gets rejected back to the upside? This showed a clear sign that the sellers simply were not there. Because of this we should have got out but didn’t and ended up taking a 20 pip loss. There were a few more shorting oppertunities once the price hit major resistance around the 1.4280 level but it just seems like it didn’t come together perfectly. Either way there was a lot of wasted pips today to be honest. That being said we have tomorrow:) That’s the great part about being a forex day trader….you always have the next day to look forward to. I forgot to wrap up last months trade but we ended up around 2% for the month. It was a pretty slow month and we sat around break even for the majority of it until we made the major change to our new volume based day trading strategy. This forex trading strategy has been in the works for a while but we finally got enough forward and backtesting to put it into action live. This market is forever changing and if you can’t change with it you will eventually lose. There is no fx trading strategy that you can trade today, and then trade it the exact same way 5 years from now. In some way shape or form it will need adjusting. Although the Confirmation Entry – Forex Trading Strategy took a profit 6 out of 7 months so far this year I felt like we needed to filter out some of the fake out’s due to the increase we have seen in short term volatility. Using volume we have done that, and done it well. As I said yesterday I’m looking forward to seeing what this month brings, after all forex trading success or failure is not judged on a daily basis, but rather month to month. That being said this will be the first month of volume based trading for the live forex trading room, and I look forward to the results and teaching this forex trading system to everyone else as

Day Trading Strategy – Forex Day Trade EUR/USD 01/08/2011

stersuhr — Tue, 02 Aug 2011 02:37:23 +0000

Well I’ve never been so irritated about making +30 pips on a trade lol:) Let’s get right into today’s day trade! As we came into the forex room for the NY session both the EUR/USD and the GBP/USD were falling. The EUR/USD was riding a nice descending trend line down which was one reason we thought there was resistance there. In addition to that the price came back up to a previous support level, that was now broken and acting as resistance. I call these levels Breakout Continuation levels. As with all support and resistance levels…..all you can do is simply mark out these points and then once the price reaches these areas wait to see if your entry criteria is fulfilled. This is exactly what we did here. The price pulled back to that resistance and then we waited to see if our volume entry criteria was fulfilled….and it was. Our entry was around the 1.4400 area on the EUR/USD. This was an exceptional entry but I closed the second half way to early for only +40 pips. The reason I did this is because we had a volume entry up on the GBP/USD and therefore I exited the EUR/USD short and took the Sterling long. Unfortunately that did not have any follow through and this left us with a total profit between the 2 forex trades of +15 pips. I can’t complain to much about starting off the month positive. This is going to be a very exciting month. As I mentioned in the last post, our new forex trading strategy that relies on volume confirmation won 75% of the time last week. These numbers are right on track with our forward and back testing, and therefore I look forward to what this will produce live in the forex room this month. We shall see as time progresses. If you would like more information on our new day trading strategy feel free to take our 10 day trial to our live forex trading room

Counter Trend Forex Day Trade EUR/USD 29/07/2011

stersuhr — Mon, 01 Aug 2011 21:11:50 +0000

Friday we only took one trade in the forex trading room. Unfortunately when the EUR/USD and the GBP/USD took off to the upside rather abruptly following the negative GDP forex news out of the US. Initially the GBP/USD and the EUR/USD spiked down towards USD strength following a negative number. When I saw this I decided the safest option was to wait. While this kept us from taking a hit it also kept us out of the move up. We stayed patient though and finally got a day trading setup a little while later. The market ran 150 pips to the upside with really no retracement. We had resistance levels marked on the way up, but the market kept running through cleanly without giving any signs of reversal. Finally the EUR/USD gave us our classic forex volume entry short and we managed +20 on the first half of this trade with the last half getting closed at break even. It gave up about 40 points before turning back up. Overall a decent day trade. It’s important when taking counter trend trades to take some of the position off rather quickly. By doing so you insure some profit even if the market does eventually turn against you. This is exactly what happened here. Overall last week we took 9 trades with the new volume based forex system. 6 trades were profitable, 1 was break even, and 2 were losers. As time progresses with this trading strategy our R/R will be tweaked to maximize profits for this entry. With a win/loss ratio as described above it’s hard to lose money. This is also comparable to our live forward testing results as well as our back testing results on the new forex strategy.

Volume Based Forex Trading 25th – 27th July 2011 EUR/USD & GBP/USD

stersuhr — Thu, 28 Jul 2011 04:19:59 +0000

The new forex trading system used on a daily basis in the forex trading room is volume based. However with any day trading setup there are always contributing factors that helped signify a change in direction, and thus the entry signal. This day trade setup from Tuesday was no different. To begin with each and every forex trading strategy that I use relies on the market being at some form of support or resistance plain and simple. Support and resistance has been around since the beginning of the markets for a reason….it works when used correctly. As you can see here there were quite a few reasons to believe this area would be support and thus a potential turning point. First it was already proven support as shown by the black line. Additionally there was a descending trend line coming in at this point shown by the red line, and last but not least the 200 EMA was right there. This was BTW on a 5M chart. Once these factors came together we then had a volume based entry which was the actual trigger. Being on a smaller time frame, once you identify a solid turning point and then have volume confirmation based on the new forex trading system….usually the price will continue off in the direction of the trade fairly quickly. I still look for the confirmation entry the same as always as well. That being said confirmation entries during the NY

New Forex Trading System EUR/USD 18/07/2011

stersuhr — Mon, 18 Jul 2011 20:59:39 +0000

Hey everyone, hope trading is going well! Last week we started trading our new forex trading strategy in the forex trading room. While we will continue to use all other forex trading strategies found on the site, this specific one brings special promise. Unlike other trading systems, this one will not be taught on the site…..only in the forex room. In my 7 years of forex trading I have seen many a forex system come and go. On Day Trading Forex Live you see the culmination of what I believe are the best….that was until myself and my London trader stumbled onto an anomaly in the forex market. This simple easy to learn and easy to replicate system has more potential than any other entry I have used to date including the confirmation entry. If anyone follows this blog you know the confirmation entry has been my bread and butter. In the first 6 months this year we have turned profit during 5 of them, and I give credit to the confirmation entry for this. So for me to say an entry is better than the confirmation entry should speak volumes. That being said even though I will not teach this entry except for in the trading room I will go over where we entered and the profit or loss we took. I will still continue to teach the confirmation entry on this blog as well as all other day trading strategies on the site. On to today’s day trade. I was a bit disappointed in today’s

June Forex Trading Wrap Up – Start Of Day Trading For July

stersuhr — Thu, 14 Jul 2011 03:28:12 +0000

Well it’s been a few weeks since the last recent forex trade update. I’ve been a bit busy, but things have settled down and I wanted to update how trading finished up for June, as well as the start of July. July ended +5% up for the month, which was the 5th positive month this year. The simplicity of the confirmation entry forex trading strategy is why it manages to consistently turn a profit month after month. This market has been extremely difficult lately. We have seen more consolidation during the New York Session than I can ever remember. When the price action gets tough, simplicity is key to remaining profitable. This is exactly what the confirmation entry provides, which is the key to it’s long term success. On to July! Again the forex market has still seen a great deal of consolidation during the New York session. Price action in the forex market goes in phases….right now plain and simple forex trading during the NY session has been tough. This month we have seen ups and downs, and for the moment we are currently sitting around break even for the month. The confirming entry consistently turns profit, if and only if you day trade with patience. Patience is the key to getting in the best forex setups. In this market it can take a few hours to finally get a trade setup that meets the criteria. Because of this it’s easy to

Forex Pre-News Sentiment Trade EUR/USD 21/06/2011

stersuhr — Wed, 22 Jun 2011 02:37:29 +0000

Today were just going to do a quick review of today’s trades from the forex room. The first trade of the day was a confirmation entry long on the GBP/USD. This day trade went it our favor around 15 pips, however there was quite a large retracement which came near to our break even and we got out at that break even point. If you look at the price action today in the forex market it was rather tough to get any trades. I probably sound like a broken record by now but when you see the market run coming into your trading session it will make trading much more difficult. Again this is what we saw today unfortunatly. As with anything in the forex market, things come and go. Having said that things will change and the price action during the NY session WILL return to normal, it’s just a matter of time. Before we left the forex trading room today I called a forexÂ pre-news sentiment trade short on the EUR/USD. This position was only a quarter position because I wanted to use a 40 pip stop. By using the quarter position with a 40 pip stop this allowed us to keep only a 1% risk on this trade. The last recent trade update we finished up the EUR/JPY trade that ended up +200….we counted this trade as only +100 pips though, because it was half the position size we normally use. The same is true for this trade….it is officially counted as -20 pips because it was half the size of a normal position. This trade brings our total down to +130 pips for the month. The most important part of forex trading is your mental attitude going into your trading session. It’s very easy to let the price action we have been seeing in the NY session discourage you because it does make it very difficult to trade. However this is exactly when you need to 100% stick to the forex trading strategy you know works. The confirmation entry has given us profit 5 out of 6 months this year to date. Even though it has turned profit so consistently it will still have losses within each trading month as every fx trading strategy does. The worst thing a forex trader can do is take a loss, and then change their forex trading system. I think we have all been there. You take a loss or two, then change your day trading strategy only to see the next trade you should have taken recover the losses and then some. This is a classic newbie forex trader mistake. That being said, we cannot change when and how the forex market runs, but we can dictate how we trade it. By sticking to your trading strategy through times of few trades, or even some losses you then give yourself a fair chance to turn a profit and not make that classic rookie mistake. Hopefully we will see some better price action during the NY session through the end of the week….we will have to wait and see! Forex trading isn’t for the weak….it’s a continual daily grind, day in and day out. If you cannot mentally handle the ups and downs of forex trading it’s best to simply find another profession:) Either way we will continue to stick to the proven confirmation entry forex trading strategy, and hopefully add to our +130 pip profit we have for the month. See you all tomorrow!

Forex News Trade – US Consumer Sentiment USD/JPY 17/06/2011

stersuhr — Sun, 19 Jun 2011 01:00:37 +0000

This week was one of the slowest weeks of forex trading we have had in the trading room in a very long time. It is extremely difficult to take a trade when the market has already moved coming into the session your going to trade. Unfortunately this is exactly what we saw Wednesday through the end of the week. London was quite active and thus NY was rather slow. That being said we still had a great week! As an update lets cover the forex trade that we still had open from the last recent trade update. As I mentioned before we opened a EUR/JPY short forex trade on Tuesday of this week, and let it run with an open take profit. After 2 full days or running this day trading setup turned into a swing trade. We eventually closed this trade on Thursday for +200 pips. This trade was only half the position size we normally use and therefore I’m only counting this as a +100 pip trade. This brings our total for the month up to +180 pips. Based off of only 1% risk per trade, that is +9% gain for the month so far. Ok let’s get onto what happened Thursday and Friday. Thursday will be short and sweet because there was not a single day trading opportunity that we saw. As I always say in the forex room….my job isn’t to call trades it’s to take profitable trades. Therefore if I don’t see anything worth while I happily don’t take a trade, and this is exactly what we did Thursday. Friday we only took one trade. Friday, as will the previous days before we saw a large run coming into the NY forex trading session. As I’m sure your all aware of, the forex market after making a large run will very often consolidate. This is what happened on Friday. Because of this we did not see any day trading opportunities to take advantage of. However we did have some forex news released which gave us a chance.

Forex Swing Trading Setup EUR/JPY 14/06/2011

stersuhr — Thu, 16 Jun 2011 02:19:22 +0000

Hey everyone, sorry it’s been a few days since I have been able to update the recent trades section. Monday we had two trades. One was a break even short trade on the USD/CHF, and the other was a long trade on the GBP/USD that was closed for -10 when it looked like there wasn’t going to be any follow through. This day trade would have stopped us out and therefore we saved ourselves 10 pips by getting out of this one which brought out total to +75 pips for the month. Now lets cover what happened Tuesday in the forex tradingÂ room. We had 3 day trading opportunities on Tuesday. The first was a short on the USD/CHF that ended up -10 pips. After this trade we had another setup on the USD/CHF which netted us +20 pips, bring the daily total to +10 pips after the second trade. The final trade of the day was on the EUR/JPY. I don’t trade the Yen crosses as much as the other three (GBP/USD, EUR/USD, and USD/CHF) however the fundamentals as well as the technicals were setting up perfectly! First we are all aware of the Greek debt crisis. We have seen the Euro continuing to gain strength in spite of this. If you all remember when the whole world wide crisis started equities were rallying while the world was crumbling. Similarly the EURO has been shooting up with the EURO zone in big trouble. Look at what happened to equities….they crashed eventually,and as I mentioned in the trading room on Tuesday the same will happen to the EURO eventually….the only question is when. We got the setup to go short on the EUR/JPY as shown above in the chart, and with the Greek crisis coming more to the fore we decided to hold this trade in case the EURO started that crash we were expecting, and this is exactly what happened! Additionally when there is a major economic crisis we all know the Yen strengthens. Therefore with the EURO weakening and the Yen possibly strengthening, we decided to short the EUR/JPY. Let’s walk through this setup a little more in depth as far as the technical are concerned. The forex trading strategy that we used with this day trade setup was the standard confirmation entry. Additionally the rest of the Yen crosses were all setting up to go short giving confirmation entries as well which provided the forex market correlation we always look for. The first candle in this setup came into some smaller resistance but did not close above it thus giving us a reversal candle at resistance. The second candle closed below the body of the reversal candlestick, which told us the forex market was moving down. The first two candles gave us the direction, and as always we took the entry when the third candle pulled back into the body of the reversal candlestick. We had a -40 pip stop on this position when we left the forex room, and we left the take profit open. The reason I left the take profit

Intra-Trend Day Trading Confirmation Entry EUR/USD 10/06/2011

stersuhr — Fri, 10 Jun 2011 23:16:52 +0000

After yesterday’s day trade during the ECB Press Conference it was important for me and the rest of the forex trading room to have a good day going into the weekend. It’s never good mentally when you do not recover a loss going into the weekend. This is exactly what we did! If someone is going to become successful at day trading it is going to require unshakable confidence in not only your forex trading strategy, but your ability to execute it as per the rules. It’s not how much profit a day trader makes that will determine his level of success in the forex market, it’s how they recover from a loss. A professional forex trader who used to work on the Floor of the CME as a market maker said, “it’s not how much you make as a trader, its how much you don’t lose”. It becomes much easier to make a mistake after you have already made one, which is why he said those words above. With those words in mind we came into today looking to get back some of the profit we gave back yesterday. In the trading room today we took 2 trades, both of which were profitable. The first trade was on the EUR/USD, and it was a short position. Anyone who follows this blog is more than likely very familiar with the confirmation entry, however this is what I call the intra-trend confirmation

ECB Press Conference EUR/USD 09/06/2011

stersuhr — Fri, 10 Jun 2011 22:28:47 +0000

Thursday we had the ECB interest rate decision, and then the ECB Press Conference that follows at 8:30. As expected interest rates were left unchanged Thursday for the Euro zone, but then the press conference with Trichet that followed brought some interesting price action to say the least. Trichet is great at following ever negative statement with a positive one, and any positive statement with a negative comment. This is done in an effort to create price stability on the Euro while the speech is taking place. Trichet has always used the words “strong vigilance” to signal a rate hike the following month, and this is exactly what was said on Thursday. In my 7 years of watching Trichet speeches, and trading them I have never seen the EUR/USD go down after he uses those words. Essentially the market hears those words and the price shoots up very similar to when they hike rates unexpected. This was the first time I have ever seen the EUR/USD move down after essentially they said rates will be raised next month. In the forex market nothing is a “sure thing”, which is why an good forex trader plays probabilities. This is exactly what we did with this trade. As I mentioned before I have never seen the EUR/USD go down after the words “strong vigilance” are used, and therefore we went long upon hearing this. The market shot up as normal, however as

Day Trade Entry On EUR/USD 08/06/2011

stersuhr — Thu, 09 Jun 2011 16:25:05 +0000

Here is yesterday’s trades. Throughout yesterday we had 2 setups in the forex trading room. The first trade never had any follow through and therefore we took an exit for -10 pips when it looked like it wasn’t going to move in our direction. The second trade of the day was a bit more clear of a day trading setup. Both the GBP/USD and the USD/CHF in addition to the EUR/USD were setting up to move towards USD strength. Because of the clear market correlation this was an easy trade to call. As with every confirmation entry we first look for the market to come into resistance or support depending on the direction the forex market happens to be moving. The EUR/USD had been moving down towards USD strength and then started to retrace, finally ending at resistance. The market came into the previous support that was not acting as resistance, and then closed below it. This meet the criteria for the reversal candlestick in the confirmation entry. The reversal candlestick gives you an indication that the sellers are indeed coming into the market, however the next candle confirms it. The 2nd candle in the setup is called the confirmation candle, and it has one goal. In the example of a short setup as we had here, the confirmation candle must close below the body of the reversal candle. Candlestick number two very clearly meet that criteria. The first 2 candlesticks told us the EUR/USD was at least short term going to move down. The third candlestick in this forex trading strategy is what we use for entries. When the third candle pulls back into the body of the reversal candle (candle #1) this is where

Forex Trading Strategy – Confirmation Entry USD/CHF 07/06/2011

stersuhr — Wed, 08 Jun 2011 04:11:38 +0000

Hey guys and gals….hope every one’s trading day went alright. Very strange day for us in the forex trading room this today. Half of the 6 pairs we watch were stuck in tight ranges of 25 pips or less and the USD/CHF broke correlation to the USD for most of the session. As a general rule of thumb when the Euro and the Pound are going up the USD/CHF should move down and vise versa when the Euro and the Pound are going down. Today however the USD/CHF blatantly broke that correlation and everything moved to the upside during our forex trading session. Seeing the USD/CHF run out of correlation to the rest of the market is not very common as of late and therefore we saw some strange price action, and in part I believe this lead to the stagnant movement in the GBP/USD and EUR/USD. Correlation is a massive part of my forex day trading style. In fact when the market breaks correlation I usually will not place a trade until it comes back in all pairs, or at the very least most. I think of correlation as a filter of sorts. SomeÂ traders use forex indicators as a way of filtering out lower probability day trading setups, but I have found correlation is far superior. Very often retail forex traders try to complicate trading with every form of indicator there is. At the end of the day, trading really boils down to one very

New York Session Trend Continuation Day Trade GBP/USD 06/06/2011

stersuhr — Mon, 06 Jun 2011 23:25:54 +0000

We only took one trade in the forex room this morning, and it was a GBP/USD short. Unfortunately the price sputtered around for to long and we took a break even exit, only to later see it fall. Sometimes that’s the way it goes in day trading. Either way lets walk through this forex day trade setup and break down why we got in this position. The black line in the chart above represents a small intra-day breakout continuation level. As the market was falling from earlier in the London session this level acted as support. The Pound came down to this level, broke through it, and then closed above it…thus showing this level was support. This previous support level was broken to the downside, and then it provided resistance as it very often does in the forex market. This is where the setup began. Notice how candle #1 comes into that resistance area and then closes below it, thus giving us the reversal candlestick which is the first candle in the confirmation entry forex trading strategy. The second candle of this trading system is what we call the confirmation candle. In a short setup as shown above, the confirmation candle must close below the body of the reversal candle (candle #1), and candle #2 very clearly did that. The first two candlesticks in this trading method are used for confirming the direction of the trade, and the third candlestick is used for triggering the actual entry. During

Day Trading Forex Confirmation Entry USD/JPY 03/06/2011

stersuhr — Sat, 04 Jun 2011 03:33:25 +0000

In the last post that covers Wednesday I talked about when the market comes into resistance or support. This chart shows very clearly what I mean by touching the body of the candle at resistance or support….in this case resistance. Notice how the market never touches the exact overall high but rather it touches the body of the candle at that resistance. At any turning point (resistance or support) there is the candle that touches that level and then the candlestick that bounces off that level. I choose the candle with the smaller body and as long as that candle body is touched then I consider that resistance as hit. As you can see in this example I wrapped the smaller of the two candles at the previous resistance….candle number one then touched the body of that candle and closed below it thus meeting the criteria for a reversal candle. The confirmation entry forex trading strategy requires the second candle to close below the body of the reversal candle in a short setup. Candlestick #2 clearly meet that criteria. As always we took the entry on the third candle when it made a pullback to the body of the reversal candlestick. As you can see the third candlestick never quite made it to the body of the reversal candle. However this entry short was setting up so clearly that we took it a bit early when it looked like it was going to break out

Confirmation Entry Day Trade Short On The GBP/USD 01/06/2011

stersuhr — Sat, 04 Jun 2011 02:37:17 +0000

Wednesday was the start of the new month! Finally we saw some decent price action during the NY session which was a nice change from the last few weeks. Over the last few weeks NY has been nothing but choppy, tight ranges during our 3 hour forex trading session. Wednesday was going quite slow until the market retraced into resistance which offered us a potential day trading setup. As with any confirmation entry, we wait for the market to retrace into resistance in the case of a short setup. The first candlestick, in the case of a short setup, must touch the resistance and then close below it. Candle #1 meet that criteria. As you can see the GBP/USD did not touch the overall high. I consider the resistance or support to be hit when the market touches the body of the candle at that support or resistance, not the overall high or low. This is exactly what happened here. Candle #1 touches the body of the candle at that resistance at then closes below it which is all that I require for a reversal candle in the confirmation setup. Candle #2 is the confirmation candle. The confirmation candlestick for a short setup must close below the body of the reversal candlestick (candle #1) in order to be considered a confirmation candle. Candle number two very clearly closed below the body of candle number one thus confirming the

Trend Continuation Confirmation Entry GBP/JPY 27/05/2011

stersuhr — Tue, 31 May 2011 01:55:35 +0000

First I want to apologize for not doing any recent trade updates for the last week. I’ve been quite busy over the last week, however all is normal now and the trade updates will continue (3 to 5 of them a week). We took 3 trades last Friday in the forex trading room, with the first trade being a nice short on the USD/CHF for +10 pips and the next was break even. The last trade was turning out to be a nice trade but then we got hit by a freak move on the home sales number from Friday. If you look back at that report you will see that is never moved the market more than 10 pips in the last 2 years….however it just happened to move the GBP/JPY down quite a bit today which caused us to take a -20 pip hit. This trade was about +15 pips in profit when the news came out. I didn’t really worry about that news because as I said it hasn’t moved the market more than 10 pips in 2 years, and therefore this move was WAY out of the normal price action following this forex news release. Let’s break this trade down. As you can see the GBP/JPY was working up nicely and broke through the previous resistance, which then became support after the push up. You can see that candle #1 touched that support and then closed above it, therefore giving us a nice reversal candle off of support which is the first candle in the 3 candle forex trading strategy. The next candle in the confirmation entry is what we call the confirmation candle….it confirms that not only is the market stalling but it is indeed going to reverse. In order for candle #2 to be a confirmation candle it must close above the body of the reversal candlestick. As you can see from the chart it very clearly did. After those candles closed we then knew the direction we wanted to entry which was long. For this forex trading strategy we wait for the third candle to pullback into the body of the reversal candle, and this is where we take the entry long. As you can see the market moved up in our favor nicely, but then as I mentioned before a freak move off of a normally un-tradeable forex news release caused the GBP/JPY to switch direction and stop us out for -20 pips. Overall for the day we therefore ended up -10 pips total. See you all tomorrow after the NY session!

Forex Day Trading Confirmation Entry – EUR/USD 18/05/2011

stersuhr — Wed, 18 May 2011 16:58:49 +0000

Today turned out to be a pretty decent trading day in the forex trading room despite the large run coming into our trading session. There was a confirmation entry to go long on the GBP/USD right around 8AM EST this morning that we took in addition to the day trade shown above. This trade ended up coming down a bit more and stopped us out at -20 pips. Overall it was a quality day trading setup that simply did not have any follow through. In your spare time give that trade a look. The second day trading opportunity wasen’t long after the GBP/USD trade, and it was a long position as well but on the EUR/USD. This support level was very strong because of 4 points all coming together around the same level. 1.) It was a psychological support round number which was 1.4200 2.) The 61.8% retracement of the move up from yesterday. 3.) The daily pivot. 4.) This level was an already proven level of resistance from yesterday. And as always resistance when broken will become support more often than not. The more reasons you have supporting where the market is turning the better, and with this example we had 4 great reasons this level was going to hold. When the market came into this support level we were looking for it to touch it and then close above it.

Ascending Trendline Support Break – USD/CHF Day Trade 17/05/2011

stersuhr — Wed, 18 May 2011 02:01:10 +0000

Yet another day trade on the USD/CHF. Just seems like the USD/CHF has been the currency pair giving the best entry between the three forex pairs that we focus on (USD/CHF, GBP/USD, EUR/USD). This was a simple confirmation entry that just so happens to break the trendline support it had been holding. I use the closing price of a candle to determine if a support or resistance level is holding, and once candle #2 closed below that ascending support I liked this day trading setup even more. Let’s walk through this day trade. Candle #1 hit resistance (the resistance was a decending trendline) and then closed below it, giving us a nice reversal candle off of resistance. For a short setup the second candle must close below the body of the reversal candle and this is exactly what happend here. I really liked the confirmation candle down (candle #2) because it not only closed below the body of the reversal candlestick, but it broke below clear support that had been holding very well. Once those two candles closed, that gave us direction, which was down. Candle number three is where we look for the entry. Normally we wait for the third candle to pullback into the body of the reversal candle. However on this day trade setup the rest of the forex market started to push towards USD weakness and therefore we took the entry as soon as candle number three opened. The market did eventually pullback to

Major Intra-Day Support Day Trade USD/CHF 16/05/2011

stersuhr — Tue, 17 May 2011 01:25:43 +0000

Going into today’s NY session we had some very large moves. Seeing this price action prior to our session always makes for a tough day, and usually quite a boring day in the forex trading room. This was exactly the case with today’s forex trading session…..boring. When the fx market has ran a large amount coming into the session you trade, there is higher risk to a continuation trade because the market is already extended. Additionally there is a higher risk to a retracement trade because it is fighting a clear trend with momentum. Because of this we normally become much more selective about any day trade setup that occurs. Anyway….on to today’s trades! The chart above shows the USD/CHF. As I mentioned before the market had been making a large move coming into our day trading session towards USD weakness. The USD/CHF ran 140 pips with almost zero retracement into Friday’s low. This is a setup we have seen a few times over the last few weeks, with last Friday being the most recent. There are two major requirements for this type of day trading setup. 1.) The market must have ran 75 pips or more with very little and preferably no retracement during the move. Any healthy trend will have retracements, and when there are no retracements within a move the probability of a reversal becomes much higher once the price reaches the next major resistance of support depending on the direction of the move. 2.) At the end of the large run the market must hit a major intra-day resistance of support level such as the previous day’s low or high, or another VERY clear major S/R level. If the criteria above is meet, the trade is taken when the support or resistance is touched (On this trade we took the entry roughly 8

Forex Trading Strategy – Day Trading Confirmation Entry GBP/USD 13/05/2011

stersuhr — Sat, 14 May 2011 22:43:06 +0000

The first day trading setup of the day was one that doesn’t occur very frequently. Additionally I do not have a forex trading article that covers this setup as of yet. Over the weekend I will try to quantify a set of rules for this specific trade setup and create a forex training article. Essentially this setup is based on a very high risk reward. In addition to that you must see the market running 50 pips or more with no retracement, into a major intra-day support or resistance. This is exactly what we had on the USD/CHF. During the London session the market started to move towards USD strength in the USD/CHF and ran 100 pip with almost zero retracement into the previous days overall high. With this trade setup weÂ took the entry when the market touched the resistance. This is one of the rare occasions that I do not wait for a confirmation candle. Doing so insures that you have an extremely high risk/reward day trade setup, and that is the huge advantage to this trade. The USD/CHF did exactly what we were looking for. It touched the resistance and bounced immediately back down. The great part about this setup is that even if it eventually is going to move through the resistance or support it will give you at least one bounce off of it which allows enough time to at the very worst have a break even trade. Overall on

Day Trade Off Support GBP/JPY 12/05/2011

stersuhr — Sat, 14 May 2011 21:28:22 +0000

Here we had a nice setup on the GBP/JPY in the forex room on Thursday, unfortunately there was never more than 10 to 15 pips of follow through. Either way I would like to go through the setup because it was a good example of the confirmation entry. With any losing trade there is always something that can be learned and this trade was no exception. The main problem I see looking back on this day trade is the consolidation prior to the entry. The market had been in about a 25 pip range for 3 hours and therefore we should have waited for the market to close above or below this range before placing a trade. Keeping track of your trades is extremely important. By doing so you can notice patterns of mistakes. Once you recognize a pattern you can correct it. You cannot correct what you don’t see, and therefore I recommend keeping track of trades to any aspiring forex trader so you can recognize those patterns. On to the setup. As you can see the market came into the previous support, and did not close below it. Candle number one touched that support and closed above it. This meet the criteria for the reversal candle which is the first candle in the setup. Candle number two is the confirmation candle. The confirmation candle (candle #2) needs to close above the body of the reversal candle, and it very clearly did that. The first two candle are what give you direction, and therefore after these two

Large Risk/Reward Setup Off Support EUR/USD 11/05/2011

stersuhr — Thu, 12 May 2011 00:33:15 +0000

Today was a fairly boring day during our NY trading session. We only took one trade and it took a few hours for it to come together. Everything had been pushing towards USD strength when we came into the forex room, and had been for the last 3 days. As the market came into yesterday’s low on the EUR/USD at the 1.4270 area we were looking for a potential long setup. The basis for this trade was similar to the trade taken on the EUR/USD from the 2nd of May. Essentially there was a very high risk/reward scenario, in addition to the market being very over extended coming into major support. The EUR/USD since today’s London session was down over 150 pips with no retracement. Because of this the most likely place for it to bounce was the major low from yesterday. When the market touched this level we looked for it to slow down and start to bounce. This is exactly what we saw, and therefore we went long from 1.4282 Had the market slipped through this support and closed below it we would have not taken the trade or exited it. Normally we would have waited for the market to meet the criteria of one of our forex trading strategies, but in situations like this where the risk/reward is the main cause for the trade, we take the entry as close to the proven support or resistance as possible to therefore give us the highest risk/reward as possible. This trade went about +30 pips in our direction before closing us at break even. Going into this trade I said it would be something we would hold until tomorrow’s NY session. If you look at the daily chart on the EUR/USD there were two great reversal candles prior to today. Essentially there was a confirmation entry to go long on the EUR/USD daily chart, and therefore I wanted to hold this one for a day or longer. However the market wanted to slide more than therefore we were closed out at break even on this trade. Hopefully we will see more day trading opportunities tomorrow, as today was rather dull. Patience is key during days like this. The good setups are there on almost a daily basis and waiting for them is the key! See you all tomorrow with the next update.

Trend Continuation – Forex Day Trading Setup USD/CHF 10/05/2011

stersuhr — Wed, 11 May 2011 01:07:22 +0000

Seem like we have been hitting the USD/CHF a lot lately. Forex market correlation is very constant on a day to day basis in the forex market, however some pairs will give better entries than other’s and it just so happens the USD/CHF has been that pair the last few days. What I mean by better entries is…..how wide is the stop? What is the risk vs. reward of the forex trade setup? ECT… Breifly I will mention the trades taken in the forex trading room and then we will more on to the educational part of the recent trade update. Overall we took 3 trades today. Two ended up break even, and by the consolidation of the USD/CHF during our trading session I think you can understand why. The final trade we took was a long on the USD/CHF from .8783 and currently that trade is up around +30 pips with a break even stop and a take profit of +100 pips. I selected that take profit level because it gets us out ahead of the psychological barrier of .8900, it’s previous support that could be resistance on the way up, it is the 100% fib expansion for the first 4H move up, and I choose that take profit because the 200 EMA on the 4H chart is right around .8900 and again I wanted to be out well before the 4 points I just mentioned. I’m going to be covering a confirmation entry that occurred outside of our trading times, however it gave the same entry we

Breakout Continuation Forex Trading Strategy USD/CHF 09/05/2011

stersuhr — Tue, 10 May 2011 02:07:09 +0000

Today there were quite large moves in the forex market during the NY trading session. Unfortunately the fx market took off towards USD strength and never looked back. With the GBP/USD and the EUR/USD both falling aggressively, we expected further continuation up out of the USD/CHF as per normal forex market correlation, but yesterday’s overall high was just to tough to break. Anyway, let’s break down this trade and hopefully my mistakes with this one will help others not repeat them:) First notice the previous resistance that becomes support once the market breaks above it. This level is shown by the black line. The large bullish candle breaks through the resistance and then closes above it. Immediately after that the market pushes back down to this previous resistance level, which now acts as support. Candle #1 touches this support level and then closes above it thus giving us our reversal candle off support. The next candle closes above the body of the reversal candle, therefore giving us a confirmation candle up. These two candle gave us our direction we wanted to enter which was long. Because the Euro and the Sterling were both moving down so fast I did not wait for the third candle to pull back into the body of the reversal candle as I normally would. This would have given us a much better entry and more than likely would have offered us enough to take some profit out as it came into the overall highs. Looking back on this day trading setup I see two things that I should have spotted before taking the trade. #1 the market was way to close to yesterday’s highs. The previous day’s high and low is almost always major intra-day support or resistance, and should be respected as such. The second mistake made here was not waiting for a pull back. This forex trading strategy in my opinion, gets a lot of its overall profitability because entries are taken on the pull back. When you do this you are not only getting a tighter stop loss but additionally a much better risk/reward. Therefore when you do not wait for the pull back you eliminate a part of what makes this forex trading system so profitable overall. Currently for the month we are still hovering right around break even. Last week did not offer the quantity of opportunities normally seen in any one given trading week and we only ended up with a small profit. This trade ate up that profit, but its still early in the week. The important thing to remember in forex trading is that it is not a sprint, it’s a marathon. That being said the confirmation day trading strategy always wins the marathon each month by turning profit, and therefore the key is to simply keep your head down, be patient, and take only the best day trading setups that meet the criteria for entry. I hope trading is going well for everyone! Â I will see you all tomorrow for the next recent trade update!

Non-Farm Payroll – Day Trading Forex News Setups GBP/USD 06/05/2011

stersuhr — Sat, 07 May 2011 22:30:29 +0000

Today’s chart is going to be a bit more “crowded” than usual but it shows a few good examples of the forex trading strategy we use most frequently in the forex trading room. Well Friday as you all well know was Non-Farm day. The one day a month that is sure to produce price action only the brave would enjoy. This last Friday was no exception! Our first day trading opportunity came on the GBP/USD. Going from left to right look at the first candle marked #1. If you look back at your chart you will see this candle came into previous resistance and then closed as a nice reversal candle. It touched and went through the resistance, and then came back down and closed below it. This is exactly what I like to see when a potential short trade is setting up. Additionally if you look back at your charts you will see that this candle #1 was a nice reversal candlestick formation, however the chart above cuts off the wick to this candle. Long story short candle #1 meet the criteria for the first candle in the 3 candle confirmation entry setup. After this we then looked for what we call the confirmation candle. Candle #2 meet the criteria for this by closing below the body of the reversal candle (candle #1). Once these two candle formed we then knew we wanted to go short and simply waited for the pullback candle (candle #3) to touch the body of the reversal candle. Notice the pullback candle never quite touched the body of the reversal candle, however it got close enough for us to enter and we managed to take +15 pips off this one.

ECB Press Conference Day Trade – USD/JPY Long 05/05/2011

stersuhr — Sat, 07 May 2011 21:58:07 +0000

Tuesday were pretty boring days in the forex trading room this week, and therefore not posted. The lack of day trading opportunities on those days was in part due to the large moves during the London session. Anytime I see a large move coming into our NY trading session I always use and talk about being cautious with any trade. After a large move there is much higher risk to either direction. As a day trader we use 20 pip stops the majority of the time. When the market has moved 100 or more pips the possibility of a retracement becomes higher and thus a, “trend trade” carries more risk because of this. Additionally there is a high risk to a continuation trade because the market is already extended and may be out of momentum, and thus enter a tight channel. Having said this we only took 2 day trades on Tuesday and Wednesday. On to Thursday! Three hours before we got into our position on the USD/JPY the market came down, set a low, and bounced. A few hours later the market tried to retest this level but set a higher low, and formed a reversal candlstick pattern after making a test lower. This gave us some indication that the market had simply run out of interest in pushing lower. Often times you will see the market not retest the exact overall low, or overall high in the example of a shorting opportunity. This is exactly what happened here. I saw in the trading room all the time

Two EUR/USD Shorts – High Risk/Reward Day Trade Setup 02/05/2011

stersuhr — Tue, 03 May 2011 00:45:06 +0000

Here we had 2 trades on the EUR/USD. One was a day trading confirmation entry short and the next was a high risk/reward trade setup that came together towards the end of our New York trading session. The first trade was a standard confirmation entry short. Again the confirmation entry is a 3 candle day trading setup. To even begin looking for this trade setup the market must be at some level of support or resistance. On the first trade the market came into resistance, touched it and then closed below it, thus showing that the resistance for the time being was holding. Therefore candle number one satisfied the criteria for the reversal candle, which is the first candle for the forex trading strategy. After the reversal candle formed at resistance we then looked for the 2nd candle in this trade setup which is called the confirmation candle. The goal of the confirmation candle in a short setup is very simple, it must close below the body of the reversal candle (candle #1). The reversal candle shows you the market is stalling, and then the confirmation candle shows that not only is the market stalling, but it is in fact reversing off this level. The first two candles of this day trading strategy give you your direction and the 3rd candle is where we actually pull the trigger. When the 3rd candle pulls back into the body of the reversal candle this is where we took the entry short. Unfortunately the market didn’t give us any follow through to the downside and it went up and stopped us out for -20 pips. Whenever you have a losing trade you should be able to say, “that is a trade I would take every single time”. This was one of those trade setups. Every forex trader will have losses, however those losses should not come from a bad trading decision, rather they should be very simply a good forex trade setup gone bad. That was exactly

USD/JPY & GBP/JPY Breakout Continuation Resistance 28/04/2011

stersuhr — Mon, 02 May 2011 23:43:18 +0000

Sorry I’m posting this one a little late. I got a little backed up on the recent trades section for last week, but here is Friday’s trades and I will do today’s trades right after this. Anyway to start off the day we had a -35 pip loser on the GBP/JPY. It was a quality setup however it never gave more than 10 pips of profit before turning on us. I should have taken a break even exit, but it is what it is and we moved on. After that trade we stayed patient and waited for another setup and we got one. I’m covering the USD/JPY trade because it is a more “traditional” day trading confirmation entry and therefore a better chart it illustrate this forex trading strategy. Anyway….looking at the chart above you can see the previous support that was broken, and when the market moved back into this previous support it became resistance. We call these levels breakout continuation levels. For more information on that please check out the article entitled Forex Breakout Continuation Setup – Day Trading Strategy. Back to the chart above…..as it came into this level we then waited for a confirmation entry short. The first candle in this 3 candle setup is what we call the reversal candle. All the reversal candle must do in the case of a short position is touch the resistance, and then close below it and this is exactly what candle #1 did. Candle #2 gave a solid confirmation candle down. A confirmation candle must close below the body of the reversal candle to meet the criteria. Notice candle #2 very clearly does that. The first two candles in this setup give you your direction and then the third candle is where the entry is taken. In the case of a short setup you would sell when the 3rd candle pulls back into the body of the reversal candle (candle #1), and this is exactly what we did. We took +15 pips off the first half of this trade and +35 pips off the last half. The first trade was just a half position, but on this trade setup we went in with a full position of 2% risk. Therefore overall we ended up netting +15 pips overall on the day. Not to bad considering we had a loss to cover from earlier in the session. Overall for the month we did ok, and ended up +5% for the month overall. I say it was only ok because I went through a 5% draw down during the last week or so of trading. That being said any month that ends in the black is a good month in my book. This business isn’t a get rich quick scheme, it’s a long term business and must be thought of that way if you are to become a professional forex trader. I hope you all had a great month, on to May!

USD/CHF Long – Day Trading Confirmation Entry 26/04/2011

stersuhr — Tue, 26 Apr 2011 21:49:18 +0000

We had a nice trade on the USD/CHF this morning in the forex room….could have taken a bit more out of it, but I tightened the stop loss to break even a little to quick and the last half of this day trade got closed out at break even with the first half gaining +10 pips. Overall for the day we were +5 pips. Nothing spectacular today, but the market really didn’t give up any large moves during out 3 hour NY trading session. The trade setup in the chart above was a standard day trading confirmation entry. The market came into support from 2.5 hours earlier and then closed as a reversal candle. In order for a candle to be considered a reversal candle,Â it must touch support and then close above it in the case of a long trade setup….that is the only criteria. Candle #1 satisfied this criteria. After the reversal candle we then wait for a confirmation candle. Candle #2 closed above the body of the reversal candle thus meeting the criteria for a confirmation candle. Candle #3 is what we call the pull back candle, however there was no pull back on this day trade setup. Because we look at other pairs for correlation (EUR/USD, GBP/USD, USD/CHF) we took the entry without seeing any pull back. If you go look at your charts, at the same time you will see that the GBP and the EUR were both moving down nicely already and therefore I did not expect the USD/CHF to pull back. Correlation is a must when day trading forex with the confirmation entry. It keeps you out of bad trades and gets you into others you may have missed. I noticed today that I don’t have any forex trading education on how to use correlation. So….I’m gonna go ahead and do an article and video showing how I use correlation to take better trades. I think correlation is a majorly overlooked sector of forex trading among the average retail trader. Hopefully thatÂ forex training article and

Forex Market Holiday 22/04/2011

stersuhr — Fri, 22 Apr 2011 22:39:11 +0000

Hello Traders! As I mentioned yesterday I wanted to at least show up in theÂ forex roomÂ and see what type of price action the forexÂ market would offer today, being it is a banking holiday. During holiday’s the forex market will give you one ofÂ two types of price action. One is what we saw today, which was a stagnant marketplace with not much movement or conviction in either direction. The other is a fast moving volatile fxÂ market. WeÂ willÂ be trading MondayÂ even though it is a banking holiday as well. In my opinion it is at least worthÂ seeing how the market is moving before completely throwing it away as a lost trading day. Most viewÂ holidays as only range bound daysÂ and therefore simply dismiss them. However think about this. When there is less volume in the market it takes lessÂ money being moved to push the price through support or resistance because there are less orders around these levels. Therefore as mentioned above, you get the occasional bank holiday with great intra-day price action. Weekly Wrap Up : Overall we ended +2.5% up for the week, which brings us to +9.5% up for the month of April currently. This week in specific, even though we were net positive forÂ the week,Â was a very rough trading week in my opinion. There was a lot of strange price movements, various false breakout, and general lack of conviction during the US trading session. Because of this we mostly used smaller positions this week, which helped maintain a modest profit for the week. It’s tough trading weeks like these that make me think of golf and how much alike forex trading is to it. Think for example of Tiger Woods, and what makes him the best. It’s not Tiger’s swing, his putting, or his great short game that make him what he is….but rather it is his super human ability to never break mentally. Look at what happened a few weeks back at the Master’s. Rory goes into Sunday with I believe a 4 shot lead and completely implodes, endingÂ the dayÂ way back of the winner. It’s not thatÂ Rory isn’t a great golfer because he is, its that he doesn’t have the sameÂ mental ability to stay composed in the face of adversity as Tiger does. Keeping that analogy in mind, lets apply that to the forex market. As a day trader you must remain poised. The first initial reaction after a losing trade for most new traders is to double the trade size and “get back at the market”. Often the result is double the loss. The point is you have to be able to stick to your trading plan and money managementÂ no matter what happened with the previous trade or trades. For example on Wednesday we had 2 small losing trades before the +130

Confirmation Entry Day Trades GBP/USD & EUR/JPY 21/04/2011

stersuhr — Fri, 22 Apr 2011 02:12:06 +0000

Early on in the tradingÂ session we had a day trading opportunity on the GBP/USD. The market came into resistance and then gave a nice confirmation entry down. However we didn’t see any follow through to the downside after the dayÂ trading entry, and this ended up -20 pips. Still and all I would like to go over this forexÂ trade as it was a solid confirmation entry. The only thing I can say about why I shouldn’t have taken this trade was the market correlation. At this point in time the USD correlation was out of sink and the USD/CHF was moving down towards USD weakness, and therefore we should have waited for the entry on the GBP/USD. Candle #1 touched resistance and then closed back down below that resistance, thus giving a nice reversal candle off of resistance. Candle #2 closed well below the body of the reversal candle. In the case of a short position candle #2 must close below the body of the reversal candle, which it did. Candle #3 is the entry candle. The entry is taken when it pulls back into the body of the reversal candle, and this is where we took the entry. Unfortunately there was no follow through to the downside.

After the GBP/USD trade above we waited for another day trading opportunity, and eventually the EUR/JPY gave us just that. The black line is theÂ support level we were looking for the market to hold

Forex Trading Strategy – Live Day Trade On The EUR/JPY 19/04/2011

stersuhr — Wed, 20 Apr 2011 01:11:24 +0000

HeyÂ FxÂ traders! Today we have a nice little half position long on the EUR/JPY from 118.05 that is currently about +100 pips up as of writing this. I now have the stop loss moved to +40 pips and the final take profit is set to 119.35 which is +130 pips.Â Before we get into this FxÂ trade I think it is only fair to point out the bad. First we had a half position long on the GBP/USD that stopped us out for -20 pips. I’m just gonna come out and say it….that trade was a stupid mistake on my part. In no way shape or form had it given a confirmation entry, nor had it meet the criteria for any of my other forex trading strategies. The USD/CHF was giving a confirmation entry to go short and the GBP/USD had only a reversal candle to go long. I jumped the gun and didn’t wait….and I paid 20 pips for my error.

I’ve been dayÂ trading forexÂ for over 6 years, almost 7…and still from time to time my patience fails me….and this was a good example of that. This just shows why it is so important to wait for the market to meet ALL the criteria of your forex trading strategy before taking your day trade. Equally important it shows how to recover from a stupid trade! We have all been there, and what is your first reaction….to get right back in and “show the market who’s boss” right??? Doing that will only result in further losses. After this trade we keep our head down, didn’t lose our cool, and more importantly stayed patient and waited for the next good day trading setup! Additionally todayÂ there was a AUD/USD short. This trade on the other hand was a double confirmation entry short, and is a trade I would take every single time! The market gave us +15 pips at one point, but after seeing other correlating forexÂ pairs start to head up we decided to exit this one for -4 pipsÂ plus the spread. That’s the beauty of the confirmation entry….even when the market isn’t going to move your direction, because your taking entries on pull backs you usually have time to get out at break even or a small loss. The reversal candle was at 8:30 AM EST if you would like to go back and look at that confirmation entry. Finally we had our EUR/JPY long

Day Trading Confirmation Entry On The AUD/USD 18/04/2011

stersuhr — Mon, 18 Apr 2011 19:14:14 +0000

Â At around 9:00 AM EST this morning, Standard & Poor put a “negative” outlook on the U.S AAA credit rating. As you might imagine this created a massive USD weakening effect initiallyÂ that was most evident in the EUR/USD, GBP/USD, and the USD/CHF. As you can see we had a day trading confirmation entry on the AUD/USDÂ right before this economicÂ news was released. Candle #1 was the candle that touched support. Not only was this level a horizontal support level, but additionally it was a ascending trend line that began forming on the 12th of April. Candle #1 was the reversal candle in the 3 candle confirmation entry trade setup. The following candle was the confirmation candle. In a long setup the confirmation candle must close above the body of the reversal candle in order to meet the criteria of a confirmation candle. After these 2 candles formed we now know the direction and simply waited for candle #3 (entry candle) to pull back into the body of the reversal candle (candle #1). We were watching the other pairs when the third canlde pulled back into the body of the reversal candle (candle #1) and didn’t take the entry at that time. This was because the other majors were not setting up in the same way. However once the news was released the GBP/USD, EUR/USD, and USD/CHF allÂ took off in

Forex News Trading – US CPI Short Trade On The GBP/USD 15/04/2011

stersuhr — Fri, 15 Apr 2011 22:04:14 +0000

Overall today we took 3 dayÂ trades, and ended the day break even unfortunately. The first trade we took was right after the US CPI forexÂ news release this morning. Core CPI came in -.1% worse than expected and then CPI Y/Y came in +.1% better than expected. The most important of the two numbers was the core number and thus why the first initial reaction was USD negative. However after seeing the conflict I knew this would retrace, and that is exactly what it did. We waited for the GBP/USD to move into resistance to see if it would hold and then start back down. After seeing this happen we went short and took +15 pips off this trade. Additionally there was a GBP/USD short that ended up break even. I should have held onto this trade but after seeing the USD/CHF close below some major short term support I began to not like it quite as much. Based on forexÂ market correlation, if the USD/CHF is moving down the GBP/USD should move up. Now that is an over simplification ofÂ forex market correlationÂ but seeing the USD/CHF slip through support is what caused the exit. The final trade was on the EUR/USD. Plain and simple the EUR/USD broke the market correlation that it had been holding all day. Every other pair (GBP/USD and then USD/CHF) moved towards USD strength with the exception of the EUR/USD. This caused us to get closed out for -15 pips, and thus ended the day break even overall. Overall we had a great week and ended up

Stop Run Reversal Day Trade & Confirmation Entry Long On The GBP/JPY 14/04/2011

stersuhr — Thu, 14 Apr 2011 23:47:26 +0000

When we first came into the fx trading room for the morning we had a nice stop run reversal setup on the EUR/USD. This trade was based off the 1H chart on the Euro. A stop run reversal setup in the case of a long position must move through the major support by at least 5 pips and preferably 10, and this trade setup went through the previous swing low by 13 pips thus meeting that criteria. After breaking the low, the market must then close back up above that support area, and this clearly did. Additionally it closed as a nice hammer reversal candle. When the market went through theÂ support it came downÂ and touched the 200EMA which supported the long position even further. We went long after the stop run reversal candle formed and took +10 pips out of this trade. OverallÂ this day tradeÂ has given up 100 pips off this setup. My exit was the mistake of not keeping in mind the longer 1H setup. After the entry I went to the 15M chart as normal and got shaken out. It’s important to rememberÂ thatÂ this forex trading strategyÂ normally produces very large moves in the forex marketÂ and thus you should stretch your take profit beyond normal. Lesson learned, andÂ on to the next trade! For more information on day tradingÂ the stop run reversal set upÂ check out the article entitled Day Trading Stop Run Reversals In Forex

After our first dayÂ trade we had anotherÂ setup on the USD/CHF that ended up break even, and then towards the end of the session we had this nice confirmation entry long on the GBP/JPY. As with every single confirmation trade we take the FxÂ market must be coming off of some type

Failed Day Trade On The GBP/USD Short 13/04/2011

stersuhr — Thu, 14 Apr 2011 02:33:30 +0000

Here we have a good example of a nice intra-trend continuation dayÂ trade. The GBP/USDhad been channeling for a few hours going into this trade. Normally I don’t like to take a dayÂ trade in a channel due to the fact that there is never much to be made. However this channel was +50 or more, therefore allowing plenty of room to take profit. As I said earlier this was what I call a intra-trend reversal candle. The market had already started its move down and this Fx dayÂ trade setup was not coming off of resistance or support, rather it was simply continuing the move down. Candle number one was the reversal candle. Anytime I take a trade in an already established move the first setup candle must be a reversal candle (shooting star or hammer formation). This is a requirement because I want to see the market try to push against the already established short term move and then get rejected. As you can see candle #1 makes a move up trying to work higher only to get rejected down. Candle number 2 is your standard confirmation candle. Again in the case of a short position the confirmation candle only has to close below the body of the reversal candle. Candle #2 did that very clearly. Once these two candles closed we now knew the direction we wanted to take, and when candle number three made a pull back close to the body of the reversal candle (candle #1) we took the entry short on the GBP/USD. This trade gave up about 20 pips at one point only to turn around and close us out for -20 pips. I got a bit greedy on this one in hindsight. Given the momentum of candle #3 and the hugely bearishÂ candle closeÂ I expected to see it run through the lows. Additionally the 4H chart was looking bearish as well, and had setup as a shooting star formation off a short term high. All in all we took 3 trades today and I had 3 loser. Fortunatly the other 2 were only -8 pips each. One was on the USD/JPY right after US Retail Sales. The number came out pretty close to expectations, however the revision to the previous month was enough to warent a long position. It went in out direction about +10 pips but after a failed test of the highs we decided to get out. All in all today was down -35 pips and was the first losing day of the week. Overall still having a great week and sitting right now around +4% for the week. Today however was a great example of why I preach sound money management. I don’t care how good of a forex day trader someone might be, or how profitable your forex trading strategy is, you will have loses from time to time and I’m no exception The key is monthly profit, and this should be the judge of success. Every month this year we have been profitable (knock on wood) and I attribute this in a big way to using solid money management principals. By risking a safe amount per trade no one trade is going to make or break you, and thus you tend to trade more based of facts rather than emotions. Check out the article entitled Money Managment – A Day Traders Key To Success. In that article I go over my money management principals and hopefully they can help you be a successful forex trader!

Daily Resistance Confirmation Entry Short On The EUR/USD 12/04/2011

stersuhr — Tue, 12 Apr 2011 22:50:02 +0000

Here we had a nice short position on the EUR/USD that was coming off of the daily highs. If you look back around January 15th of 2010 you will see a previous swing high on the daily chart. More importantly to me was the fact that the market had set a previous high an hour and a half earlier. This level is shown by the blue resistance line. When theÂ EUR/USD retraced back into this resistance level we then started looking for a confirmation entry to come together. The confirmation entry forex trading strategy is something that repeats itself almost every single day. Sometimes it may take a few hoursÂ for this day trading strategy to setup,Â but if your patient the market will almost always give you aÂ short term tradingÂ opportunity. Once the market retraced into this resistance, the first candle in the three candle confirmation entry setup perfectly. Again the first candle, in the case of a short position, should touch the resistance area and then close below it. Preferably the reversal candle (first candle ofÂ theÂ trading strategy)Â should look like a traditional reversal candle, (shooting star or hammer formation) andÂ for thisÂ specific trade setup it did just that. After the reversal candle closed you can see the next candle formed a clear confirmation candle. For a short setup the confirmation candle simply needs to close below the body of the reversal candle. Normally with the confirmation entry trading strategy

Triple Top Confirmation Entry And Major Resistance Risk/Reward Setup GBP/USD 11/04/2011

stersuhr — Mon, 11 Apr 2011 22:28:24 +0000

The chart above shows 2 of the 3 dayÂ trades taken today. One trade not shown was a EUR/USD confirmation entry long that we rode for +20 pips. Following that was a confirmation entry short on the GBP/USD that ended up failing. The resistance level we were playing off of was a previous double top that looked like it would hold and end up being a triple top. As with all confirmation entries once we reached the level of resistance we waited for the candles to form before taking the entry. The first candleÂ for thisÂ forex trading strategyÂ was a nice reversal candle that blew through the resistance only to close back down below it and form a perfect reversal candle. The next candle formed a great confirmation candle down. In the case of a short position the confirmation candle must simply close below the body of the reversal candle in order to be considered a confirmation candle. Once those two candles formed we then knew our direction and simply waited on the third candle to pullback into the body of the reversal candle (candle #1) at which point we took out short position. Unfortunately my charts froze in the forex trading room after taking this position, and I didn’t realize the market had shot up 15 pips rather quickly. Either way I would have ended up taking a hit on this trade. Overall on this trade I

Double Top Confirmation Entry Short On The USD/CHF 07/04/2011 & 08/04/2011

stersuhr — Fri, 08 Apr 2011 22:45:26 +0000

Â Earlier on in the day Thursday we took a half position long on the EUR/USD based on Trichet’s speech and took a 40 pip hit. Fortunately this was only on a half position so it was -2% overall for that trade. We kept our nose to the ground, and stayed patient and took +3% off of the USD/CHF. In the chart above I am going over an entry we saw today but did not take because there was not enough pullback on the entry candle. HoweverÂ I still wanted to illustrate this entry because it was a solid confirmation setup.Â First and foremost with any confirmation entry the market needs to be coming off of some level of support or resistance, which was the case here. The market made a nice retracement against the overall trend into nice resistance. At this nice level of short term resistance the market formed a perfect reversal candle thus giving us the first candle in the three candle confirmation setup, the reversal candle. Next, the following candle closed below the body of the reversal candle thus giving us our confirmation candle. Normally on the third candle we would wait for the market to pullback into the body of the reversal candle and then take the short there, however this candle never pulled back that far and thus I did not take the entry. For more information on the confirmation entry check out the article entitled Forex Trading Strategy – Day Trading Confirmation Entry Today, Friday the 8th of April we took 2 trades both of which were on the EUR/USD. We took two long positions, one netting +10 pips and the other losing -10 pips. Looking back both trades should have made +30 pips or more but I was a bit impatient with them and used way to tight of a stop on the second position. Overall we ended up break even for the day. Hindsight is 20/20 and l0oking back on this one teaches an important lesson. Trying to save yourself money by using extremely tight stop losses usually ends up with what you were trying to avoid…..a loss. It is important to

Forex Trade Setups – Day Trading Fx Trades 05/04/2011

stersuhr — Tue, 05 Apr 2011 18:46:51 +0000

Our first trade of the day in the live trading roomÂ was a EUR/JPY long. As with any confirmation entry we are always looking for a clear level of support or resistance to take a trade from. As the market came down to support we had marked on the EUR/JPY we were looking for the first candle in the 3 candle confirmation setup, which is a reversal candle. You can see at candle #1 the market gave us the first candle in the setup. The next candle after the reversal candle is called the confirmation candle. In order to be a confirmation candle the market simply had to close above the body of the reversal candle (candle #1) which it did very clearly. After those 2 candles formed we had our direction and very simply needed the third candle to pullback for the entry. The confirmation entry rules state that you take the entry when the 3rd candle pulls back into the body of the reversal candle, however the market doesn’t make that pullback from time to time.

After making a decent pullback the market started to bounce back up, at which point we went long. This is the one part of the trading strategy that requires practice. Most other criteria for this day trading strategy is cut and dried, it either meets it or it doesn’t. However with the pullback candle you must use a little discretion to allow for entries that do not quite make it all the way back into the body of the reversal candle. Overall we took +30 pips out of this trade.

Our second trade of the day was as well a long position, only this time on the GBP/USD. Earlier during the London session the Sterling saw a much better than expected Services PMI which sparked a 100 pip move following the economic news release. In addition to that and more importantly we had another beautiful confirmation entry. Again the market made a nice retracement into support and closed as a reversal candle. Notice the candle with the black #1 above it. This was the reversal candle we used for our setup. The next candle gave us the confirmation candle up by closing above the body of the reversal candle by a few pips, and the candle following that gave us the pullback for the entry long. Overall we managed +20 pips on this trade and +50 pips overall for the day. Additionally I marked another possibly way you could have entered on this trade. If you came to the computer a little bit later when the reversal candle with the red #1 above it

GBP/JPY Forex Day Trading Confirmation Entry 04/04/2011

stersuhr — Mon, 04 Apr 2011 22:54:31 +0000

Today in the forex trading roomÂ we had a nice setup on the GBP/JPY to go long. This setup came together at about 8:45 AM EST I believe. Additionally at the same time the EUR/JPY was giving a similar setup which gave me a little more confidence in the move overall. At candle #1 the market came down to the support level that had been holding the price up since the Sunday open, and then formed a nice reversal candle which meet the first criteria for a confirmation entry. Next candle #2 meet the criteria for a confirmation candle by closing above the body of the reversal candle. Finally candle #3 gave us the pullback into the body of the reversal candle (candle #1) at which point we took the entry long. After what seemed like forever watching this trade develop it just couldn’t manage to break through the previous resistance level from a few hours prior. The market gave up +15 pips or so but then started to turn. After seeing a few bearish candles close I exited this trade for -10 pips. Overall a decent trade, I just got a little to greedy with it….lesson learned For more information on the confirmation entry check out the article entitled Forex Trading Strategy – Day Trading Confirmation Entry

Confirmation Entry Short On The USD/CHF 28/03/2011

stersuhr — Mon, 28 Mar 2011 20:42:36 +0000

Here is another great example of a fx trading strategy that we have been using with great success. As I said in the previous post I will updating the recent forex trades section of the website with confirmation pullback entry trades that setup each day. Some may be trades we actually took in the room, while others may be trades that occurred outside the trading sessions. In this screen shot we have a 15M chart of the USD/CHF. As with any strategy I use the market needs to be at some level of support or resistance and this trade was no different. If you look back on today’s session you will see that where we took the entry the price was stopping on a previous support level that was broken and was now acting as resistance, which what I call a breakout continuation forex trade setup. Once we reached this level of resistance the market then began to form a confirmation pullback entry. StepÂ #1 – The market formed a reversal candle at that resistance. (This candle is marked by the blue arrow with theÂ #1 next to it) StepÂ #2 – Two candles after the reversal candle we had out confirmation candle down. Remember in order for a candle to be considered a confirmation candle it must close below the body of the reversal candle in the case of a short setup. In the case of a long trade setup the confirmation candle

Candlestick Confirmation Entry On The GBP/USD 3/26/2011

stersuhr — Mon, 28 Mar 2011 20:04:19 +0000

Here we have a great example of a confirmation pullback forex trading strategy. At point #1 on the chart we had a high and that was then marked as resistance. A few hours later the market came back up to this level of resistance and held on this level. The candle that came into the resistance also closed as a perfect reversal candle formation. The candle immediately following this candle meet the criteria of a confirmation candle by closing below the body of the reversal candle. After these two candles closed you now know direction, and now you wait for the market to give you the entry. Very simply you wait for the 3rd candle to pullback into the body of the reversal candle and take the short from there. In the case of a short position off resistance many simply take the entry when the market breaks a low they want to see go. However if you feel comfortable with the direction why would you not take the entry on a pullback. By doing so you will have a much tighter stop loss as well as a better risk/reward on all your trades. In the coming weeks I will be outlining confirmation entries that occur each day. See you all after the NY fxÂ trading room session, when we will outline another confirmation pullback trade setup!

Non-Farm Payroll Reversal On The GBP/USD 7/1/2011

stersuhr — Mon, 10 Jan 2011 00:49:51 +0000

Friday was Non-Farm Payroll day. This release was a bit mixed overall. The number came out -47K worse than expected, however the unemployment rate came out .3% better than expected. Usually +/-50K usually creates a sustained move, but this month there was conflict between the headline number and the unemployment rate. In addition to that, and to complicate things more there was a revision to the previous months number….it was revised 20K better than expected. After taking a minute to go over the numbers we decided to short the GBP/USD when it reached the 200EMA on the 1H chart. If you look at the 1H chart you can see the first initial spike came right into the 200EMA as well as previous trendline resistance. On all Non-Farm trades we always enter the position as a half position. We do this because trades in and around Non-Farm usually carry a higher risk. Therefore we simply use a smaller position size to minimize the risk. Very quickly we saw around +25 pips of profit. I was looking for a bit more out of this trade and did not take profit unfortunately. The trade then came back and closed us out for a -20 pip loss. Overall we had a great week with only one losing trade over the course of the entire week! Additionally we managed to take +6.5% out of the market last week. We had a great start to the year

Intra-day Trend Continutation Short On The EUR/USD 6/1/2011

stersuhr — Mon, 10 Jan 2011 00:17:53 +0000

By Thursday the forex market had already established an aggressive trend to the downside in the EUR/USD. Going into the Thursday morning’s NY session because of the already established trend it was a fairly straight forward trade but it required some patience. We knew that we wanted to get short with the trend but we needed some type of retracement into resistance before taking a short position on the Euro. After a few hours of waiting the EUR/USD retraced perfectly into the 60 EMA as it had been doing the entire trend. Once it retraced up into the EMA it formed a nice reversal candle and then the candle following the reversal candle was a clear confirmation candle that closed lower than the reversal candle’s body. The confirmation entry forex trading strategyÂ is something that takes patience to wait for. Using a 15M chart you have to wait for the reversal candle to form and close as well as let the confirmation candle close. That alone takes 30 minutes. However by doing so you now have a forexÂ trade setup with clear confirmation and a great risk/reward. On this tradeÂ setup the reversal candle closed and then the next candle closed which was our confirmation candle for a trade down. When the candle after the confirmation candle pulledback into the body of the reversal candle we went short. On the first half of the trade we took +20 pips and then on the last half of the trade we took +90 pips. Overall a pretty nice trade.

GBP/USD Short After A Triple Top Reversal Candle Formation 4/1/2011

stersuhr — Sun, 09 Jan 2011 23:33:28 +0000

After making a large run to the upside during the London session on Tuesday the market hit a level and simply ran out of steam. It’s been said you never want to be the first one in on a trend nor the last one out. Keeping that principal in mind we were very patient on this one. Given the fact that theÂ FxÂ market had ran so aggressively to the upside it could have very easily kept moving up. However after the 3rd failedÂ retest of this resistance level, and 3 consecutive lower highs we were fairly certain that the market had ran out of momentum. Once again we had a beautiful confirmation entry tradeÂ setup. First there was the clearly marked reversal candle that was immediately followed by a confirmation candle confirming that the GBP/USD was turning off the resistance level. Once again what we are looking for in a confirmation candle is for a close below the body of the reversal candle. The candle following the shooting star reversal candle clearly meet that criteria. After the close of the confirmation candle we took the entry short on the GBP/USD. Many in theÂ trading room took profit off this one ranging from 20-40 pips. Officially however we had a +60 pip take profit and the market missed it by 1 pip:) Sometimes that’s the way it goes….good trade none the less.

EUR/USD Intra-day Reversal Candle Formation Off Resistance 03/01/2011

stersuhr — Sun, 09 Jan 2011 23:03:06 +0000

On Monday we had a nice reversal candle formationÂ in the direction of the already established trend. Sunday the forexÂ market opened up slightly lower and came up to test previous support that turned into resistance. After setting this high the EUR/USD worked down through the London session on Monday. When we came into theÂ live trading roomÂ on Monday we were waiting for the EUR/USD to retest the previous resistance level. Upon the market retesting this resistance level it was rejected aggressively and formed a perfect reversal candle formation. Once this candle formed at already proven resistance we knew there was a potential setup getting ready to occur. We then waited for the next candle after the reversal candle to form. What we were looking for here is what I call the confirmation candle. With the confirmation candle I’m looking for it to close below the reversal candle’s body. The reversal candle tells you that the market is stalling and the confirmation candle confirms that the market is turning. On the candle following the confirmation candle we waited for a pullback into the body of the reversal candle. This gave us a perfect entry and the market never went against us more than 5 pips, and we managed to pull +15 pips off this trade.

Descending Triangle Trade Update 12/10/2010

stersuhr — Wed, 13 Oct 2010 04:43:32 +0000

. On MondayÂ we took a short on the GBP/USD from 1.5932 after seeing a nice descending triangle formation with a bearish shooting star reversal candle formation. WeÂ closed half for +20 pips during the NY session and let the last half run. Today I updated the trade by setting the stop loss to 1.5832 which means worst case scenario the last half of the trade is closed out for +100 pips, not a bad trade at all! As of writing this the market got to within one pip of closing the trade for +100 pips and is still around the same area. I will not adjust this trade until tomorrow’s NY session at 7:30AM EST, if the trade is still running that is. Either way this is going to end up as a great trade. From a daily chart perspective we have 2 very nice bearish candles, however the EUR/USD just formed a huge bullish daily reversal candle (Red Arrow) Given the fact that the EUR/USD moves more money than any other pair, if it does continue up in the direction of yesterdays bullish hammer formation it could cause the GBP/USD to go up as well and more than likely would. Either way great trade, and we will see what tomorrow brings inÂ live forexÂ trading room. See you all there!

Descending Triangle with Reversal Candle Cluster on the GBP/USD 11/10/2010

stersuhr — Tue, 12 Oct 2010 03:47:07 +0000

Here we have a nice short trade that setup during the NY session Monday. Because of Monday being a US banking holiday you can see the price movement was rather choppy as well as the price being caught in an extremely tight range. Normally I would not place a trade when seeing such a stagnant market, however other pairs such as the EUR/USD as well as the USD/CHF were all moving in the direction of USD strength. I say over and over again inÂ our live forex tradingÂ room, that having overall USD sentiment in the direction of your trade is a must. Quite simply put it makes the probability of a successful trade much higher! Now lets cover a little more specifically why I entered this trade short on the GBP/USD. First and foremost if you zoom out to a daily chart you can see that not only is the price at a major daily high but additionally that previous daily resistance level was additionally support a few months back, thus making this a breakout continuation trade as well. Second, you can see the price has formed a niceÂ descending triangle which is a chart pattern that points to a break lower. The final point to this trade was the cluster of reversal candles. I say over and over that every candle tells a story and this cluster of 3 shooting star reversal candles are no different. 3 times the market tested the highs with each candle and every time the price closed near it’s lows after getting rejected when it tried to move up. Additionally each reversal candle sets a lower high which is also a bearish sign. The more things that point to direction the higher the chances for a successful trade. In this trade there are many points giving you the key to the next move. Right now I have closed half of the trade for +20 pips and I currently have the the stop loss on the last half set to break even and we

Non-Farm Payroll on the EUR/JPY 08/10/2010

stersuhr — Fri, 08 Oct 2010 21:00:38 +0000

Here was a nice trade we took today following the release of Non-Farm Payroll. This newsÂ release was expected at -5K but came in at -95K. The initial reaction to the news was not the normal price movement the usually follows Non-Farm Payroll, especially with such a huge deviation from the expected number. As we discussed in the trading room prior to the news, the GBP/USD as well as the EUR/USD tend to have choppy movements with this release. However the USD/JPY, EUR/JPY, and the GBP/JPY tend to move much more consistently based on the numbers. Knowing this based on prior moves, these were the pairs that we had our attention focused on. Once the number came out the price initially spiked down in the Yen crosses but quickly retraced near pre-release. Seeing this I immediately went short on the EUR/JPY.Â As we discussed in the roomÂ the EUR/JPYÂ should move 50 pips at leastÂ based onÂ historical data of this release whenÂ there is this large of a deviation.Â Seeing the market still 15-20 pips from pre-release after the newsÂ means it had statisticallyÂ under preformed, and thus we assumed based onÂ pastÂ Non-Farm releases that it stillÂ hadÂ plenty of roomÂ to go down.Â After about 10-15 minutes of waiting, the market finally started to pay out. We managed to close half for +50 pips and the second half of the trade we closed for +30 pips. The key with Non-Farm Payroll as with each and every other news release is to know how the market has responded in

Reversal Candle Cluster at Major Intra-day Resistance 07/10/2010

stersuhr — Thu, 07 Oct 2010 18:52:05 +0000

Here we have a great example of being able to read and understand raw price charts. Usually the market tells you direction before it makes its move, and today was no exception. This is a 15M chart of the GBP/JPY. As you can see the price had moved up into an area of previous resistance, and then formed a cluster of nice reversal candlesÂ (black circle). Reversal candles were the first clue but not enoughÂ to get in just yet. What I look for next isÂ whatÂ I call a confirmationÂ candle that closes below the reversal candles body. Another words the reversal candle shows there is indecision at that level, and the confirmation candle shows there is actually selling pressure at that level. Once the confirmation candle closes you can enter there or wait for a slight pullback before entering, which is usually the technique we use in our Live Forex Trading Room to get better entries and thus higher risk/reward setups. On this trade we managed +60 pips. Once the market ran into previous major intra-day support we got out with a nice profit in hand.

Stop Run Reversal Followed by Reversal Candle Formation 06/10/2010

stersuhr — Thu, 07 Oct 2010 18:36:18 +0000

Is this chart we have a example of a stop run reversalsetup during news. Because of this setup occurring right after news we did not take it, however if you had it wold have at least given 15-20 pips initially. However the market worked its way back down to this support level again. As you can see the support level (Black Line) is drawn at the candle bodies and not the wick. As long as the candle bodiesÂ do not close below this level I consider this support level to still be holding. Additionally this is the level at which the Bank of Japan (BOJ) intervened a few weeks back. This week however they let the price slide through. In the chart you will see a reversal candle patternÂ that formed at this support level. Once this 15M candle closed we went long. There were opportunities to close this for a profit but officially I closed with a -20 pip loss. Even the best setups break down from time to time, but it is important to stick with what has proven itself over months and years as we saw on the following day.

Breakout Trend Continuation on the GBP/USD 11/08/2010

stersuhr — Wed, 11 Aug 2010 20:59:54 +0000

As I was explaining in the live forexÂ room today we have seen some tough trading for this entire week if you are a short term forex trader. When you open up your trading platform and see a huge move in currencies before you got there it makes for tough trading, and here is why. As a short term trader you must use tight stops to keep a good risk/reward ratio. So as you examine a market that is near or past it’s trading range the possibility of a retracement is strong thus making a continuation trade risky, and additionally taking aÂ retracement trade presents risks due to the fact that the general momentum is down and thus against you. Again as a short term trader with very tight stops entries are everything and without much room for error you have to be careful on days where you come in after a large move. Now on to today’sÂ forex trades. Â Today we took 3 trades. The first 2 forexÂ trades ended up break even over all, one positive and one negative. On the third short termÂ trade we closed out with a nice +25 pip profit or +2.5%. The red candle with the black line through it represents the area we got in as well as the candle we entered on as well. The reason I entered on this trade is because of the closing price of the previous candles. The red line represents the low of the candles and thus the support

Breakout Continuation Trade on the EUR/JPY 26/07/2010

stersuhr — Wed, 28 Jul 2010 03:01:30 +0000

Here is a great example of the breakout continuation trade on the EUR/JPY. This type ofÂ forex day tradingÂ setup is a great way to trade breakouts withoutÂ having to chase the initial breakout. When entering on the initial breakout, often times these are simply fake moves that lead to a complete reversal in the market. This forex trading strategy relies on the market proving thatÂ it is holding the breakoutÂ BEFORE you choose to enter!Â By letting the market prove that it is holding the breakout before entering the trade you increase your odds for success greatly. On the trade below we have a great example of the breakout continuation forexÂ trade. The market breaks below the previous major intra-day swing low, and closes below it. On the following candle (#1 blue arrow)Â the market comes back up and tests the level of breakout. On the following candle (#2 red arrow) the market bounces off that level of breakout proving that it is holding and additionally closes as a bearish engulfing candle.Â On theÂ next candle we were looking for the market to test the resistance area again which it did, thusÂ giving us a great entry with a great risk/reward trade setup to go short on the breakout continuation setup.

Trend Continuation Following a Reversal Candle on GBP/USD 14/07/2010

stersuhr — Thu, 15 Jul 2010 10:05:14 +0000

Today we took a nice long on the GBP/USD for +40 pips. Overall it was reallyÂ slow European and NY session, which required a lot of patience to wait for the proper trade setup. However after an hour and a half of waiting for this setup we finally had a good trade. Overall the market had been trending upÂ so we were waiting for the proper retracement to get in with the overall trend. We finally got that setup when everything (EUR/USD, GBP/USD) came down to a nice support level and gave a solid reversal candle formation marked by the arrow on the left. We waited for the market to not only close as a intra-dayÂ reversal candle pattern,Â but additionally I wanted to see some buying pressure before going long. A few candles later we had just that, the market gave the reversal candle and then was followed by a couple bullish candles. The second arrow points to the candle that gave us a little pullback for an entry long. This is very important….the market showed up its direction with the reversal candle and then the bullish candle following that. Almost always after a change in direction similar to this, the market will make one last pullback (in this case down) before continuing up in the direction of the forexÂ reversal signal.

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Nice EUR/JPY Forex Trade Setup on 13/07/2010

stersuhr — Wed, 14 Jul 2010 13:39:19 +0000

Here is a nice short we took on the EUR/JPY. Once again very similar to yesterday’s forex trade setup, in that all the pairs were correlating together. Notice the EUR/JPY goes up to the last intra-day resistance level, then closes as a reversal candle formation. After the reversal candle closed we went short.

We additionally took the same setup but on the GBP/USD for another nice short trade. Over all had a good London session and a good +55 pip day overall. If you would like to see what day trading forex live is all about, then feel free to take your 10 day trial to our liveÂ forex room. Please click the image to the left to view a larger image.

Day Trading Forex Market Correlations on the GBP/USD 12/07/2010

stersuhr — Wed, 14 Jul 2010 13:38:02 +0000

Here is a great example of using market correlation to find an entry. On this trade we had everything either at previous support or resistance, and additionallyÂ each 15MÂ chart was closingÂ as a reversal candle formation. Additionally on the EUR/JPY and the GBP/JPY there was a great forexÂ breakout continuation tradeÂ setups occurring. We went short on the GBP/USD and the EUR/JPY and took a nice profit from both trades. Please click on the image to enlarge for easier viewing of the live forex trading strategies. Additionally if you would like to watch us trade live, you can take your 10 day trial to the live forex room. Please click on the image to view a larger format.

Forex Reversal Candle Patten on the EUR/JPY 09/07/2010

stersuhr — Sat, 10 Jul 2010 09:05:25 +0000

Forex Reversal Candle Formation on the EUR/JPY 09/07/2010 Here is a great example of getting in with the current trend by using forexÂ chart patterns that repeatÂ themselves many times throughout the trading day. On this example the market as a whole was point towards USD strength as well as the YEN crosses being pointed down. On the EUR/JPY we were making consecutive lower lows as well as lower highs (this showed us our direction to look for). The market made a nice retracement (a place for an entry)Â and closed below the previous swing highs close, additionally it formed a nice shooting star reversal candle formation which gave us all 3 keys to a nice continutation trade. 1.) In the direction of the current short term intra-day trend. 2.) Reversal into an area of resistance, while still maintaing the lower lows and lower highs. 3.) The market formed a 15M reversal candle at the top of the retracement, thus showing the indecision at previous resistance. After this candle closed (blue arrow)Â and the market began to follow throughÂ down, we jumped on and took it for +15 pips. Probably could have taken a bit more out of this one but overall a great day. 3 winning trades and one small 5 pip losing trade.

Recent Forex Day Trade on EURJPY – London Session

stersuhr — Thu, 03 Jun 2010 13:53:10 +0000

Recent Forex Day Trade on EURJPY – London Session

Forex Live Room – Recap 13 March 2010

stersuhr — Sat, 13 Mar 2010 16:11:19 +0000

A video with a few trade explanations,Â a good week, this week we managed a 15% return. Day trading in the forex market is a tough business. If you go it alone it take years to learn through trial and error the profitable forex trading strategies, chart patterns, and other tips and tricks associated with being a profitable trader over the course of time. This video goes over one week in the trading room but it represents something more meaning full than one profitable week in our live day trading room. It conveys the message that YOU can do this to, and we can teach you. Forex trading is something everyone can become profitable at with a little hard work and determination. I hope to see you in the trading room, if you haven’t signed up for your 10 day trial what are you waiting for?

Live Forex Trade – Triangle Break +67 pips

stersuhr — Mon, 08 Mar 2010 16:19:39 +0000

Here is a great example ofÂ how toÂ properly use triangleÂ chart patternsÂ to effectively day trade in theÂ forex market. This video shows not only the potential of triangle formations in triggering trades but also how you can use aÂ previous triangle breakout to point to the overall direction of the trend. We managed to take +67 pips on the GBP/USD on a pullback to the triangles breakout. Hope this video helps and happy trading! 10 Day Trial To Our Live Forex Day Trading Room

Live Day Trade – Reversal Signal GBPUSD

stersuhr — Thu, 11 Feb 2010 13:44:49 +0000

Live DayÂ Trade – Reversal Forex Pattern on GBP/USD . A video Guide on Reversal Signal GBP/USD Here is a nice example of combining 2 great forex trading strategies into one trade to make some pips. Here you will see on the longer time frame we had a solid reversal candle formation (shooting star) as well as the fact that this candle hit and bounced at a major resistance level. When a candle hitÂ a major level of resistance, turns and then closes in a reversal formation as we had here it makes for some powerful forex trading setups. Come check out more forex trading strategies by taking your 10 day trial to our live forex room!

5 Minute Break Out GBPUSD – Live Trade

stersuhr — Thu, 11 Feb 2010 09:06:21 +0000

5 Minute Break Out GBPUSD – Live Trade. A video on 5 Minute Break Out GBPUSD – Live Trade Here is a nice example of letting the forex market show you what it wants to do and then taking advantage of it. On this we have a trend line breakout dayÂ trade setup. The market breaks the trend line and then make a pull back to it giving us a perfect entry signal. This is very similar to the break out continuation trade but on a trend line rather than a horozontal level of support or resistance. 10 Day Trial To Our Live Forex Day Trading Room