Using Chart Patterns To Trade Forex – 9/20/12 Live Trades
Today we had a few nice trade setups occurring on the GBP/USD. The first video was of a trade taken during the Asian session. Anyone who follows the site knows we trade 2 time slots. The first being the London session from 2-5AM EST and the second is the 8-11AM EST New York trading session. These times represent high probability “zones” where we will frequently see bank manipulation that allows us to track their activity. Today that manipulation move came a bit early.
As I was doing the daily market review for the members I was walking through the fact that we were looking for the second push down, and we had identified the 1.6235 level as the manipulation point we wanted to see the market work into before starting that second push down….that is exactly what happened. Why did we like that price point? In the review I was excited about this point for multiple reasons.
1.) The top of the upward triangle was roughly 1.6230
2.) The best previous support/resistance point was right around this 1.6230 level as well.
3.) Finally the 200EMA was at that same price point.
When I see this confluence of factors all coming together at one point it screams probable manipulation point. In addition to that we had a very clear first push down the day before and therefore a short was in line with the overall smart money trend. As such we had a very strong bias that we would see the second push. Because we know the anticipated direction the only other question we have to answer is, at what price point will this move more than likely start from? Because of the three points listed above this became the best point to look for the manipulation…and as you will see in the video we had a great stop run reversal through that high probability manipulation point. This trade started down fairly quickly and never came back for a second chance entry point. When I closed the computer down for the night I left this trade running with a +60 pip take profit which was hit a few hours into the London trading session. Later in this video I also break down why I choose that specific profit target, and I believe you will find the points listed helpful in your trading.
During the New York Session today (September 20th 2012) the Pound made a nice retracement into what looked to be the best manipulation point available. At the time I was watching the market pull back it looked like the smart money trend had more to go as the Pound only dropped 70 pips through the London session. As such I was looking for a continuation trade setup down after the retrace. When we got a stop run of the 1.6200 level I took the short. The trade hung around for 3 hours and I later closed this trade around break even as I discuss in the video. This forex training video has some key points to trading the smart money forex trading strategy that I hope you find useful!
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