Day Trading Forex Live – Advanced Forex Bank Trading Strategies

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

May 31
01:55 2011

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 live day 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 confirmation entry. 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 day 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!


About Author

Sterling Suhr

Sterling Suhr

Hey everyone, my name is Sterling Suhr. You and I more than likely have quite a bit in common when it comes to Forex trading. Like most, I started trading Forex and thought it would be rather easy.Everything I read said it would make you profitable so why wouldn't I believe it Forex trading was easy? The unfortunate part is that belief, and the hope that goes along with it pushed me into buying every scam Forex product there was. I've tried every EA, software, strategy, chart pattern, candle pattern, signal service, etc, all with negative results. The bottom line is mainstream Forex trading strategy will continue to fail retail traders. It wasn't until I realized this point did I begin to see success.On a personal note I currently reside in South Western Michigan. I personally love this part of the country and enjoy having a taste of all four seasons. I was recently married in May of 2012 and Chad has given me a stiff warning to not have children:) As a personal hobby I enjoy aviation and really anything to do with the outdoors.

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