It is June 9 and I just got back from a short trip which was why there was no updates over the last week. Some large moves occurred and hopefully you were all able to capture some profitable trades.

The GBP/JPY has formed an ascending triangle which provides a potentially good trade set up. This pair has extreme movements at times, and therefore the triangle is not perfect but still very tradable.   I have drawn two lower trendlines on the chart below, which are both potential entry points.

A move above 159 would be relatively straight forward and would target 160. An intermediate target of 159.60 can also be used.

A break lower will currently at 158.60 (higher rising trend line) or 158.40 (lower rising trend line). A break below the higher rising would mean a profit target of 70 pips from the breakout price. A break below the lower rising trend line would provide a target of 100 pips from the breakout price.

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.

Want to know more about trading chart patterns and how to increase your odds of success? Check out my new ebook…you can find more information on it here

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

May 06 6:53 PM GMT

The following is a forex market commentary based on technical analysis for the GBP/USD currency pair. It is based off of a daily 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.

The GBP/USD has broken out of a range along a rising trend line.  The former high of the range was 1.5067, which was penetrated yesterday.  The pair is currently trading at 1.5125.  If prices continue in the current direction the profit target for the breakout is 1.5717 (or 650  pips (rounded) above the breakout price).

The rising trend lines can also be used as guidance.

~Cory Mitchell, CMT
Market Strategist

Remember, failed breakouts are tradeable too!
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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.

May 06 6:00 AM GMT

Thank you for your patience.  I have moved to a beautiful new location, am settled in and I will once again be posting forex trading ideas daily.

The following is a forex market commentary based on technical analysis for the EUR/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.

A breakout has just occurred from a falling wedge formation in the EUR/USD currency pair.  The move above 1.3260, the upper trend line,  offers a target of 1.3260 + 100 pips = 1.3360

~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. These should be “separate positions” with the same entry and stop, but with different profit targets. 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 more, take less lots. For the summary pip profit calculation (in the comments after the trade completes, each position will be assumed to be 1 lot. If you take more than 1 lot, you pip profit/loss will be multiplied by how many lots you take for each position (likely you will 2 or 3 positions depending on the number of profit targets given).

BUY at 1.4965. Stop=1.4929. Profit target=1.5000, 1.5045. If not stop out on final position exit trade at 10:00 AM GMT. Bring stop to breakeven 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 different prices. These should be “separate positions” with the same entry and stop, but with different profit targets. 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 more, take less lots. For the summary pip profit calculation (in the comments after the trade completes, each position will be assumed to be 1 lot. If you take more than 1 lot, you pip profit/loss will be multiplied by how many lots you take for each position (likely you will have 2 or 3 positions depending on the number of profit targets given).

SELL at 1.4847. Stop=1.4865. Profit target=1.4825, 1.4780, 1.4740 . If not stop out on final position exit trade at 10:00 AM GMT. Bring stop to breakeven 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.

———————–

Have you ever wondered why the forex market acts the way it does? At times there are seemingly large “random” movements, and technical analysis methods can seem very hard to “fit” to the data (especially on the short term). Well, a very interesting book on the subject is “Bird Watching in Lion Country – Retail Forex Trading Explained”. It clears away some of the myths about forex trading, exposes some of the hype, and leads you down a path where you are better able to understand and succeed in the market.

It is worth taking a look at: http://www.forex-trading-explained.com

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. These should be “separate positions” with the same entry and stop, but with different profit targets. 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 more, take less lots. For the summary pip profit calculation (in the comments after the trade completes, each position will be assumed to be 1 lot. If you take more than 1 lot, you pip profit/loss will be multiplied by how many lots you take for each position (likely you will 2 or 3 positions depending on the number of profit targets given).

Sell at 1.4825. Stop=1.4848. Profit target=1.4804, 1.4778, trail remainder. If not stop out on final position exit trade at 10:00 AM GMT. Bring stop to breakeven 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.

Due to some closures (markets are open though) on Monday due to Easter Monday, there will be no day trading signal for Monday/Sunday night.

Please see the last post about the RSI as it will likely be of some value to you, and will also provide a context for another upcoming post which will cover the RSI and how we can use it as a trend continuation tool and also gain profit targets from it.

To your trading success,

~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.

With the slow markets yesterday and earlier today, due to Easter holidays in many places (and hence no day trading signal last night/this morning), I thought it would be good to provide a little insight into one of the indicators I use…the RSI.

In the USD/JPY Swing Trade set-up below I mentioned a few things about oscillators – overbought levels etc.  I mentioned those because often they are viewed in the wrong way.  This article will take a closer at the the RSI indicator and what certain levels can actually tell us about what we are trading.  If you are going to use an indicator it is very important to know how that indicator works so you can understand when the information is valuable and when it isn’t.

I am not saying that common ideas about this indicator are wrong, but they need to be used in a context, and not simply used blindly.

RSI is an oscillator and commonly people believe they are only  valuable in ranging markets.  This is false.  An oscillator can give us a lot of information about trends as well.

So here is the first thing we need to know – The RSI moves within ranges during a trend a price.  The levels the RSI ranges between can indicate the strength of the trend.  In an uptrend the RSI should stay between about 30 and 90.   In a down trend it will generally stay between 20 and 70 (often 60).  This can let us know if a trend is reversing, as a drop below the 30 level on an RSI is rare in an uptrend.  If it ducks below 30 or fails to recover above 70, the uptrend has been stifled.  These levels will vary slightly depending on the market traded, so find the levels your market ranges between before using this. (If the market is ranging this information is not particularly useful)

This means if we are in an uptrend we will often have “overbought” type readings on the RSI.  Many traders exit positions because they think a price reversal will materialize simply because the RSI is showing a reading of 90 for example.  This is not necessarily the case.  The RSI looks at average up moves and average down moves, therefore, we can get a drop or reversal in the RSI without a reversal in price.  The RSI can move out of this overbought territory even without a significant fall in price.  This is because a brief sideways movement will bring down the “up average” calculation of the RSI, allowing it to fall to more normal levels, with price never really moving lower, but simply taking a breather.

An RSI that is continually in the in the 60 to 70 range shows – in a rough approximation – that prices are continually closing near highs and former bar highs a high percentage of the time…and this is great for the person riding the trend.  It is true a reversal will eventually occur, but the a trade should not be exited on the single premise that the instrument is “overbought.”  Rather we need to look at other factors… is price actually breaking?  Is the RSI range still showing strength by staying above 30 and hitting the 80+ range occasionally?  Is the RSI making new highs as price makes new highs (this is good)?

Just a few things to consider.  The RSI, and oscillators similar to it, can provide a lot more information than they are not commonly given credit for.  The above are just a few different ways to look at this indicator.  There are many other ways to use this indicator as well.  I will cover more of these in future posts.

~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.

The USD/JPY pair broke above the 99.50 resistance level a few days ago, and has since retreated. The retreat took the pair back to a low 99.30 – right near the top of the old resistance area. The fact the market held this level, combined with a strong day today which is pushing the price back above 100.00, provides a potential swing trade to the upside.

If the old resistance level continues to hold we have a potential trade.  Currently the pair is trading at 100.47.

We have two potential entries. The first entry is a daily close above 100.42. This is a more aggressive entry in that the market will have not yet proven it is going to resume the uptrend, but has simply given us strong indications that it will. That said, the risk in pips for this trade will be lower.

The other possible entry is a daily close above the recent swing high at 101.42. The higher entry price shows the market is continuing the uptrend (higher highs, higher lows), yet, our stop in pips will be increased due to the higher price paid.

Here are the setups for both trades:

1.     BUY on a close above 100.42 (this could be soon)

Stop at 99.25.  This is a risk of 117 pips (assuming an entry around 100.42).

Profit Targets at 104.80 and 109.00.  This is a reward of 438 pips and 858 pips approximately.  It is approximate because we do not yet know our exact entry price which will be based on an upcoming daily closing price.

OR

2.     BUY on a close above 101.42

Stop at 99.25.  This is a risk of 217 pips.

Profit Targets at 104.80 and 109.00.  This is a reward of 338 pips and 758 pips approximately.  It is approximate because we do not yet know our exact entry price which will be based on an upcoming daily closing price.

Downsides of the trade:  The upside of the trade is that we have seen a pull back and thus far a successful hold above the old resistance level (now a support level).  The downside is that that this pullback was relatively small compared to other pullbacks we have seen in this pair.  With the pair still showing some signs of being overbought (this is not a bad thing in and of itself, it is actually a sign of recent/current strength) the danger is that we could still see a pullback possibly back into the 98 area.

-On the flip side, strong trends generally always show oscillator type indicators nearer to overbought levels.  Also a small pull back can be a sign of strength as the market was not able to push prices much lower before moving back higher.

These comments are made not to confuse, but rather to help you gain an understanding of the thought process you should go through before you a choose to incorporate a certain strategy into your trading plan.  For information on building a trading plan please see my article in the March issue of Technical Analysis of Stock and Commodities magazine, or you can find an abbreviated version here on the site: http://vantagepointtrading.com/tips-and-tricks/trading-plans

The amount of pips multiplied by the number of lots should not exceed 3% of your total account balance (less is even better).   For example if you have a mini account, each pip movement is approximately $1 US.   If you have $10,000 in your account you can risk 3% of $10,000 which is $300.  That means you can take 2 mini lots for the first trade and risk $234 (derived from 2 X 117).  If you take 3 lots your risk would be $351 which is more than 3% of your account balance.  If you take the second entry you can only take 1 lot.  Bottom line control risk on every trade if you want to stay in this game for the long term.

~Cory Mitchell
Market Strategist

PLEASE READ THE RISK DISCLAIMER BEFORE TRADING: http://vantagepointtrading.com/legal-disclaimer
—————————

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. These should be “separate positions” with the same entry and stop, but with different profit targets. 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 more, take less lots. For the summary pip profit calculation (in the comments after the trade completes, each position will be assumed to be 1 lot. If you take more than 1 lot, you pip profit/loss will be multiplied by how many lots you take for each position (likely you will 2 or 3 positions depending on the number of profit targets given).

BUY at 1.4754. Stop=1.4735. Profit target=1.4775, 1.4800, 1.4855 If not stop out on final position exit trade at 10:00 AM GMT. Bring stop to breakeven 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.