Today I am going to briefly go over a few things to notice in the markets.  For those of you who actively trade you will have noticed certain pairs have died – meaning volatility and movement has decreased.  Other pairs have been extremely active and have developed strong trends.

Certain strategies work during certain types of market conditions and therefore it is important to know which environment we are trading in.  This seems obvious, but many traders fail to realize when conditions are not ripe for a certain strategy.

So let’s look at what some pairs are doing (or not doing) right now and then hopefully that will help pick better pairs to traded based on what strategies you use.

EUR/USD, GBP/USD are quite tightly wound at the moment.  Until a major breakout occurs on the daily chart these pairs should not be traded for large moves (relatively speaking).  Rather quick trades within the range (the ranges which started around mid-July) are the best bet.  Looking for reversals within the range using candle sticks is effective.

EUR/GBP and USD/CHF are also moving in a choppy fashion at the moment, although this is not too uncommon for these pairs.  Other than the major movements seen basically in all markets world-wide toward the end of last year, these pairs often move in what I would call a choppy fashion.  These pairs right now are good for similar trades as mentioned above.  Day charts will give many false signals, so use shorter time frames for entries and exits and trade within the ranges established on the daily charts.

USD/CAD and AUD/USD have been moving extremely well, both in strong trends as the dollar has experienced massive declines against these pairs.  Both these pairs are currently at levels which will help determine if the trend is likely to reverse or continue.  Both are approaching former swing lows and highs respectively which if punched through will mean a continuation of the trend.  Large moves still have the possibility of being captured as these pairs continue to trend – whether they continue to reverse (this is a topic for another post).

The examples given are used to show that while we may like to trade a certain pair and a certain strategy, it may not work all the time.  And what worked at one point may not work right now, but it may work again in the future.  We can minimize losses by not trading a certain pair when conditions are not right.  We can trade a pair that is more suited to our strategy, or we can do nothing.  Some of the greatest traders in history were the best not because they made the best trades, but because they knew when not trade and therefore not waste money.  That said there are plenty to opportunities if we match up the right strategies with the proper conditions (different pairs).

To Your Trading Success,

~Cory Mitchell, CMT
Chief Market Strategist
Remember, failed breakouts are tradeable too!

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The GBP/USD currency pair has formed a downward sloping flag formation.  This sets up a potential trade, and due to the action leading into the current formation, we have multiple profit targets.

A break above the upper channel line (see chart) indicates a swing higher with a target of 1.6500.  A move aggressive target is 1.6550 which is just above a former swing high from early July.

A break lower is less likely, but could happen.  The target would be 50 pips below the breakout point  of the lower channel line (see chart).  A more aggressive target is 100 pips.

The channel lines change over time because they are sloping, so it is prudent to reconstruct these lines on your own chart.

Want to learn more about chart patterns or other forex and stock market trading methods?  Check out the Trading Courses page.

Source: Forexyard, GBP/USD 1 Hour Chart

~Cory Mitchell, CMT
Chief Market Strategist
Remember, failed breakouts are tradeable too!

If you are you interested in getting into forex trading? Or if you are already trading and dissatisfied with your broker, check out mine at Forexyard. Switch to Forexyard, open a Standard account and receive up to a $1,000 bonus.

Open a SuperMini or Standard account now and receive a 100% cashback worth up to $300.
Open a Standard account and trade commodities, receive 10% cashback worth up to $1,000.

I am here to personally help you out if you open an account, and need help with strategies or figuring out the trading platform.

The pair has consolidated but is still in an uptrend.  While a break higher is more likely, a break in either direction is tradeable.

A break above 1.6240 would target 1.6300.

A move below 1.6210 provides a profit target of 1.6180-1.6170.

This trade idea is based on a 15 minute chart for the GBP/USD currency pair.  Please read the latest How to Use the Trade Ideas blog if you have questions. If you still have questions after, feel free to comment.

Cory Mitchell, CMT

Chief Market Strategist

. . . . . . .

If you are interesting in learning full methods on trading chart patterns, including where to enter, where to place, stops, profit targets and determining position size, check out my new ebook.  It covers which patterns to trade and how to extract the most money for the least risk.  You can read more about it here.  You will also get a package of  more than 10 FREE trading ebooks, articles and strategies to aid you in your trading, no matter what level.

Profiting From the Forex Market Using Chart Patterns

by Cory Mitchell, CMT

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May 24,  8:00 PM GMT

The markets are currently closes at the time of the this writing.  A wedge has formed in the GBP/USD currency pair.  This provides for potential day trades or swing trade set ups.

The wedge is providing resistance in the 1.6000 area and support can be found at 1.5900.  These these levels will change over time as the lines are upward sloping.  The pair closed last week at 1.5932.

A breakout of the wedge  would offer a target of  277 pips +/- the breakout price.  An upside breakout would provide a profit target on the trade of the breakout price +277 pips, or a downside break indicates a profit target of the breakout price -277 pips.

This is an aggressive target, rounding the potential profit down to 250 pips is prudent.

The preceding is a forex market commentary based on technical analysis for the GBP/USD currency pair on a 1 hour chart.  Trading ideas or trading signals can be generated based on your own risk tolerance and time frame. Please read the latest How to Use the Trade Ideas blog if you have questions.  If you still have questions after, feel free to comment.

Source: Forexyard, GBP/USD 1 Hour Chart

~Cory Mitchell, CMT
Market Strategist
Remember, failed breakouts are tradeable too!

—————————

Are you interested in getting into trading? Or if you are already trading and dissatisfied with your broker, check out mine at Forexyard. Switch to Forexyard, open a Standard account and receive up to a $1,000 bonus.

Open a SuperMini or Standard account now and receive a 100% cashback worth up to $300.
Open a Standard account and trade commodities, receive 10% cashback worth up to $1,000.

May 21, 5:39 PM GMT

The GBP/USD is marching sideways over the last hour, possibly as traders await Ben Bernanke speech at 6 PM GMT.

A very small ascending triangle has formed within a larger ascending triangle.  Prices have just broken down out of the small triangle, but a break of the larger formation would be much preferred.  Both triangles share the same resistance line.

Currently the ascending trend line (the larger one)  offers support at 1.5890, although as time passes this will move up.  Resistance can be found at 1.5940.

A break below the rising trend line (large one) would offer a target of 1.5730 (based on a 1.5890 break price).  A break above horizontal support at 1.5940 would indicate a target of 1.6100.

Closer profit targets are offered by the small triangle and indicate moves to 1.6010 on a break higher, and 1.5860 on a downside break below the larger trend line.

~Cory Mitchell, CMT
Market Strategist
Remember, failed breakouts are tradeable too!

—————————

Are you interested in getting into trading? Or if you are already trading and dissatisfied with your broker, check out mine at Forexyard. Switch to Forexyard, open a Standard account and receive up to a $1,000 bonus.

Open a SuperMini or Standard account now and receive a 100% cashback worth up to $300.
Open a Standard account and trade commodities, receive 10% cashback worth up to $1,000.

May 21, 6:45 GMT

The GBP/USD  is likely to break out of the current range as we head into the London session.  This range is easily seen on a 15 minute chart.

Current patterns indicate a continuation of the uptrend.  A move above the recent high at 1.5815 offers an initial profit target of 1.5870.  A further move above 1.5900 indicates a target of 1.600.

A move below 1.5730 is less likely at this point but would offer a target of 1.5675.

The preceding is a forex market commentary based on technical analysis for the GBP/USD currency pair.  Trading ideas or trading signals can be generated based on your own risk tolerance and time frame. Please read the latest How to Use the Trade Ideas blog if you have questions.  If you still have questions after, feel free to comment.

~Cory Mitchell, CMT
Market Strategist
Remember, failed breakouts are tradeable too!

—————————

Are you interested in getting into trading? Or if you are already trading and dissatisfied with your broker, check out mine at Forexyard. Switch to Forexyard, open a Standard account and receive up to a $1,000 bonus.

Open a SuperMini or Standard account now and receive a 100% cashback worth up to $300.
Open a Standard account and trade commodities, receive 10% cashback worth up to $1,000.

May 20, 5:07 AM GMT

After a strong push upwards by the GBP against the USD in the earlier European session, the pair consolidated through the US session and is currently range bound.

The breakout of this range offers a profit target of 100 pips +/- the breakout price.  Currently the short term trend line provides support at 1.5455.  Resistance along the upper trend line is located at 1.5535.  The pair currently trades at 1.5487.

A breakout would offer profit targets of 1.5355 on the downside, and 1.5635 on the upside.  Both these levels also correspond closely with  horizontal support/resistance levels.

The preceding is a forex market commentary based on technical analysis for the GBP/USD currency pair.  This pattern can be traded on a 15 or 30 Min Chart.  Trading ideas or trading signals can be generated based on your own risk tolerance and time frame. Please read the latest How to Use the Trade Ideas blog if you have questions.  If you still have questions after, feel free to comment.

Forexyard: GBP/USD 30 Min Chart

~Cory Mitchell, CMT
Market Strategist
Remember, failed breakouts are tradeable too!

—————————

Are you interested in getting into trading? Or if you are already trading and dissatisfied with your broker, check out mine at Forexyard. Switch to Forexyard, open a Standard account and receive up to a $1,000 bonus.

Open a SuperMini or Standard account now and receive a 100% cashback worth up to $300.
Open a Standard account and trade commodities, receive 10% cashback worth up to $1,000.

Still having some issues with some of the page links on the site.  The issue is being worked on, and hopefully we will have everything back to fully functional soon.  Thanks again for your patience.

May 11 5:51 AM GMT

The following is a forex market commentary based on technical analysis for the GBP/USD currency pair. It is based off of a 15 minute chart. Trading ideas or trading signals can be generated based on your own risk tolerance and time frame. Please read the latest How to Use the Trade Ideas blog if you have questions.  If you still have questions after, feel free to comment.

After a strong run up on Friday by the GBP, the market has consolidated in a 50 pip range.  It could also potentially be a double top if the a breakout occurs in a downward direction.  The profit target for the breakout is 50 pips, whether it breaks above 1.5245 or breaks below 1.5195.  This puts initial targets at 1.5295 on the upside, or a 1.5145 on the downside.

If the market continues higher, a further profit target would be 1.5400.

~Cory Mitchell, CMT
Market Strategist

Remember, failed breakouts are tradeable too!
—————————

Are you interested in getting into trading? Or if you are already trading and dissatisfied with your broker, check out mine at Forexyard. Switch to Forexyard, open a Standard account and receive up to a $1,000 bonus.

Open a SuperMini or Standard account now and receive a 100% cashback worth up to $300.
Open a Standard account and trade commodities, receive 10% cashback worth up to $1,000.

I am here to personally help you out if you open an account, and need help with strategies or figuring out the trading platform.

Please read the latest How to Use the Day Trading Blog before using these signals. The signals are for the start of the European session. If market does not move to the trigger price by about 9:30 AM GMT, then do not take trades.

Read the comments to this post as they are posted. The comments provide updates to the trades and will provide final results of the trade based on those updates.

Take multiple lots so you can exit at different prices. The amount of the stop in pips multiplied by the amount you take should not be more than 3% (less is even better) of your total trading account. If it is, take less lots.

BUY at 1.4318. Stop=1.4293. Profit target=1.4353, 1.4382, trail the remainder giving a bit of room above/below the recent swing high/low on a 5 minute chart. If not stop out on final position exit trade at 10:00 AM GMT. Bring stop to break even once 25+ pips onside.

~Cory Mitchell
Market Strategist
—————————

Are you interested in getting into trading? Or if you are already trading and dissatisfied with your broker, check out mine at Forexyard. Switch to Forexyard, open a Standard account and receive up to a $1,000 bonus.

Open a SuperMini or Standard account now and receive a 100% cashback worth up to $300.
Open a Standard account and trade commodities, receive 10% cashback worth up to $1,000.

I am here to personally help you out if you open an account, and need help with strategies or figuring out the trading platform.

Please read the latest How to Use the Day Trading Blog before using these signals. The signals are for the start of the European session. If market does not move to the trigger price by about 9:30 AM GMT, then do not take trades.

Read the comments to this post as they are posted. The comments provide updates to the trades and will provide final results of the trade based on those updates.

Take multiple lots so you can exit at 2 different prices. The amount of the stop in pips multiplied by the amount you take should not be more than 5% (2% or less is highly recommended) of your total trading account. If it is, take less lots.

SELL at 1.4183. Stop=1.4205. Profit target= 1.4126, 1.4090. If not stop out on final position exit trade at 10:00 AM GMT. Bring stop to break even once 25+ pips onside.

~Cory Mitchell
Market Strategist
—————————

Are you interested in getting into trading? Or if you are already trading and dissatisfied with your broker, check out mine at Forexyard. Switch to Forexyard, open a Standard account and receive up to a $1,000 bonus.

Open a SuperMini or Standard account now and receive a 100% cashback worth up to $300.
Open a Standard account and trade commodities, receive 10% cashback worth up to $1,000.

I am here to personally help you out if you open an account, and need help with strategies or figuring out the trading platform.