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Today’s example is for chart pattern set ups. These are one of the best set ups if traded properly. On the 1H chart of USD/CHF a Flag pattern is formed. The direction of the previous move is up and the flag waves down so we have to place a buy stop order above the resistance line. The level of the orer is 1.1777. After the position is opened we place a protective stop loss below the breakout candle’s low @ 1.1759. As you can see a nice profit of 100+ pips could be made.

This time the example is based on a daily chart. EUR/SUD makes new low below the previous one and we have a 2B set up. We place a buy order @ 1.2553. The position management is shown on the chart below.

EUR/USD goes up and we are long @ 1.2553 with protective stop @ 1.2505. Our targets for the first 1/3 of the position is 100 pips and for the second 1/3 – 200 pips. The last 1/3 will be held until the market stops us out. We will move our stop on 15 minute chart. As you can see the EUR stages a rally and we close the first 1/3 for 100 pips profit and second 1/3 for 200 pips profit. We move the stop below swing lows or consolidation areas.

Very interesting situation from today. After a massive rally in USDJPY the market was in an extremely overbought condition as you can see from the RSI and Stochastics readings above 70 and 80 respectively. A few candlesticks reversal patterns show that the market reached a point of indecision and a correction is in the cards. We place a sell order below the lows of the candlesticks @ 93.74 and a protective stop loss above the figure @ 94.04. As you can see a nice profit of 40+ pips could be gained in 30 minutes.

Today;s example is our favorite 2B strategy.  USDCHF made new hi @ 1.1768 whcih was 7 pips above the previous hi. We place sell order @ 1.1759 and protective stop @ 1.1773. As you can see a nice 30 pip profit could be made from this position.

With today’s example we will show you how we trade round number (figure) test but this time from the buy side. As you can see 1st time we buy 2-3 pips above the figure. Next time we wait for a break and buy 8 to 10 pips below the figure. 3rd time we buy 15 to 20 pips below the figure. These levels are not chosen randomly. Every day before we trade support and resistance levels we check the info about the levels with orders. These orders are from big corporations, banks and funds. They are related to options or spot positions. The protective stop loss of the position is placed below the 80 level below the figure (in this case @ 1.2575). The target of every position is 10-15 pips or we close it if the market turns back down.

Today the US market is closed and its perfect time for consolidation and 2B set ups. You can see on the chart how USDJPY broker above the prvious day’s hi. We place a sell entry stop order 3 pips below it (we usually place the order 2 pips below the level but this time it coincides with round number). The protective stop loss order is placed above the new high. This position gives around 25 pips profit.

Round numbers are probably the best levels of support and resistance. A lot of orders are placed around them and the market almost every time retraces after the first tests. I use the Round numbers for scalping. You can see on the chart how I play the tests. First sell is a few pips below the round number. Second sell is around 10 pips above the round number. Third sell is 20 pips above teh round number. The traget for every position is arond 10 pips. If the currency pair goes against my position I add at the above statted levels and place a stop loss above 30.

For teh set ups from today we will use Bulls and Bears power indicators.  The Bulls power is above 0 and the price is above the 50 MA which means that the trend is up. In this case we watch the Bears power and when it breaks ZERO line upwards we mark the candle as “Signal”. Then we place buy order above the high of this candle and Stop loss below the low. You can see on the chart taht we had 2 long positions which gave profits of 30-40 pips. The last buy order was canceled, because the price hit the Stop loss price before the position is opened.

You can see on this chart how many  trading opportunities provided today the pivot points for USDCHF. We had 2 buy and 1 sell signal. We skip the second sell signal because before the test the market is consolidating after the first attempt and after such price action we can expect breakout rather than retracement.

After the donside breakout of the morning range EURUSD reatreced to the 50 MA. At the same time CCI climbed above 110 level but quickly went back below it. This was a sell signal and we placed entry stop order below the low of the signal bar @ 1.2841. The protective stop loss is @ 1.2871. Depending on our position management rules we cane make up to 110 pips profit for one hour period.