Ultimate FOREX Profits - The Chart Way

Update

2009-06-22T04:24:00.001-07:00

Look how the EURUSD wedge broke down precisely, and also pullbacked to the support trend line.
The AUD\USD wedge also broke down, with a GAP. I hope you took this great trade!

Trading Plan and Analysis

2009-06-21T09:03:00.001-07:00

Some nice patterns I have noticed:

In the GBP\JPY, there's a nice wedge which also confirmed with an 61.8 retracement. I expect the GBP\JPY to go up, breaking the wedge and continue, passing the 100% of the trend. There's a possibility of a gap at the opening.

Also, a wedge in the EUR\USD, which is expected to break down. Do not enter at the pullback, this usually not a profitable entry.

The Wedge seems to be a big player these days. Another one at the AUD\USD. Note that this one also looks like channel, so in case of breakout I will trade short on the pullback to the support line. Expect a gap -> pullback very shortly after.

Good trading!

I'm Back!

2009-06-21T08:58:00.000-07:00

Hey guys!

After a long period of silence I am back in the FOREX business, this time with daily trading plans \ analysis, and realtime signals of the 15Min Channel System!

Much to expect!

Michael

15M Channel Trading: How-To video

2009-05-12T04:14:00.001-07:00

Channel Scalping: +1.4% This Week

2009-05-10T07:15:00.000-07:00

The channel system continues to profit in the markets, yielding yet another 1.5% return on equity this week.

Total Trades: 2
Total Gain (%): 1.5%
Win Percentage: 50%

Total gain of system (Since posting): +9% (Risking 1% in each trade)
Total win percentage: 80%! (Only 1 losing trade)

For more information about the system:

There are no potential trades yet, but as some show up I will update.
Good trading anyone!

BollBounce Expert Advisor is Here - 117.74% Gain

2009-05-05T03:12:00.000-07:00

An automatic robot for MetaTrader that trades the BollBounce System is available.
Total net profit : 117.74% in 2 years!

Thanks to funyoo from TradingSystemForex.com

Download
EA - Click here (Just click 'Free' and than 'Download').
Backtesting Report - Will be posted soon...

Trades from Today: +3% Already!

2009-05-04T04:13:00.000-07:00

Several of the setups posted were taken - An +1% gain in the USD\JPY trade, and +2% gain in the EUR\JPY trade.

If you don't want to miss the next trades, I suggest you subscribe to updates.

Trading Plan for Next Week

2009-05-03T05:45:00.000-07:00

One pattern that seems valid for trading so far, on the USD\JPY. Note the clean ascending channel, which price respected (touched and bounced) for seven times - indicating a strong channel. Price also stopped on resistance three times, which increase the probability of a breakout down.

Price was closed exactly at the support of the channel, which can lead to a gap at the opening BELOW the channel. If a pullback to the support trendline will occur I will enter short. Note that I won't enter if price breaks the upper trendline, even if it pulls back.

The size of the channel is 55 pips, and this is the projected target for the signal. Respect the stop-loss when calculating Risk:Reward ratio. If Stop Loss is more than 15-20 pips, I will consider the formation unworthy.

Another channel pattern, in the EUR\USD pair. The upper trendline is a bit messy, but the support trend line (the lower trendline) is very strong and has been respected 6 times. The price stopped again on the support implying a gap on the opening. Channel size for this setup is 55 pips - meaning that the target projected is 55 pips from the pullback.

This is what I see currently, as the week starts and oppurtunities emerge I will update.
Good trading!

Weekly Results: (+7.4%)

2009-05-01T08:07:00.000-07:00

Weekly results for the 5M Channel Scalping System.

Trades Taken: 3
Trades Posted: 2
Winning Percentage: 100%
Gain (Pips): approximately 150
Gain (%): +7.4% (Risking 1% in every trade)

There were some tricky trades to avoid, like some Wedges which could be mistakenly identified as Channels, but anyone who followed the signals here was profitable.

At Sunday, I will post a trading plan with potential signals for next week.

Until then, I wish you a happy and fulfilling weekend, take a pause from trading and relax in the beach ... :)

The Trades:

30th April: Trade Update: +2.4%!

2009-04-30T06:10:00.000-07:00

Baby, this system is on fire : +7.4% since this Monday!
Anyone who took the trade when I posted have gained 70 pips :)

30th April: EUR\USD Potential Trade

2009-04-30T04:03:00.000-07:00

A potential trade in the 5M Channel Scalping System. Waiting for price to pullback to the channel and than short trade will be triggered.

Note that the take profit is projected by the smaller channel - 60 pips of profits measured from the point of pullback.

Good Luck!

29.04.09 - Channel Trading

2009-04-29T09:55:00.000-07:00

A set-up I identified today, but didn't enter.
Note that the Risk:Reward ratio was about 1:1, so entry was not an option.
Cross-verify your entries with a minimal R:R ratio, to ensure profitability in the long run.

Another Setup from Yesterday (+2%)

2009-04-28T05:33:00.000-07:00

+50 pips \ 2% in one trade
Note how the pullback got exactly to the trend line and broke down immediately.

3 Set-Ups I Posted Already Yielded 3%

2009-04-26T23:11:00.001-07:00

Anyone who traded the set-ups, especially the one at USDJPY which did create pullback - won 3% on his account.

Trades were posted here:
http://tradewithsuccess.blogspot.com/2009/04/channel-trading-3-set-ups-for-next-week.html

And the result:

(Ignore the '4%' label)

BollBounce Weekly Results: +396 Pips!

2009-04-26T01:04:00.000-07:00

Trades from 20th-26th of April:

GBPUSD +58 pips
GBPJPY +91 pips
EURGBP +92 pips (still in trade)
USDJPY +123 pips
EURJPY +31 pips (still in trade from Long in Friday)

Total: +396 pips in one week!

Well, we have had an amazing week. I hope you took the trades too :-)

4H Bollinger System
Rules and Trading Guide

Good trading week everybody.

Channel Trading: 3 Set-Ups For Next Week

2009-04-25T22:45:00.000-07:00

Three possible set-ups in 3 currencies, in 15M timeframe.
All are big channels with high reward.

5Min Channel Scalping
How To Trade
Trade Examples

Good Luck.

5Min Channel Scalping - How To Trade It

2009-04-24T06:39:00.000-07:00

This is one of my most profitable systems.. I have learned it from a great friend of mine who is also my trading mentor.

Anyway, I have traded it for the last 4 weeks, works just amazingly. Its only drawback is that there are no many trades - about 2\3 per week, so make sure you have other systems unless you want to spend your time staring at your screen meaninglessly...

The logic behind it is the following: Take less trades, but better trades.
I concentrate on high-probability setups that have little chance to fail, and ones I know and am familiar with. I don't seek highly complex setups as they are hard to confirm and trade.

So what I will look for is: A Channel.
If you don't know what a channel is, Google it and come back.
Now, normally traders trade inside channels; that is, they take long trades near the support and take short traders near resistance, hoping to profit from the range inside the channel. I won't do that. I like high-quality trades which have better profitability factor.

I take the trades AFTER THE BREAKOUT.
After a channel has been broken, I will look for pullback - price to come back to the channel and retest support\resistance. If price touches the resistance\support and bounces from it, I will take the trade. There are rules of entry, which are a bit different for short and long trades. In the next post I will get under the hood about these trades...

How to Take Profit
Calculate size of channel - substract the resistance value from support value. This is the target.
Add this amount to the price where the pullback occured - and this is your take profit. Move it several pips closer, to have some safety margin in case price comes very close to your take profit but don't actually touch it.

Example:

When not to trade
-Don't trade if the ratio between your Stop Loss and your Take Profit is not at least 2.
-Don't trade if there is a strong support\resistance blocking your way to the target.
-Don't trade if this is the second time price pullbacks. Only trade the first pullback.

Money Management
-Despite this system's high probability of success I ALWAYS STRESS OUT, RISK 1% OF YOUR ACCOUNT ON A SINGLE TRADE!

Well, this is it. I will post trades every day here, and you are all welcome to post questions.
Now close your browser and start making money!

5Min Channel Scalping : 100 pips \ week

2009-04-23T04:49:00.000-07:00

A strategy I have been dealing with for a month. Works really good...
A thorough guide will be written in the near future... :-)

Enjoy these examples meanwhile:

Nice Trade from Stochastic System (+156 pips)

2009-04-20T07:07:00.000-07:00

A trade I took yesterday that was generated by the Stochastic OBOS System.
I cross-verified it with support breakout and the result 156 pips :)

See it here:

Note that there was another signal just an hour ago but price was tight inside Bollinger Bands so I did not enter.

The system is available here

Identify Ranges And Trends With Simple Indicator - Range Indicator v1

2009-04-16T00:56:00.000-07:00

An indicator I developed which identifies Range\Trend periods automatically and gives very nice results.

How to Interpret
Histogram is Black - Price is in Ranging Period (beware)
Histogram is Green - Price is in Trend
The 'Length' parameter alters the sensitivity of the indicator. Greater values will make the indicator more lagging, and smaller values - more sensitive.

Demonstration of Use

Download
Click here to download.

Stochastic OBOS: 15M Trading System

2009-04-13T23:58:00.000-07:00

The system is a mix of a strategy by Jake Bernstein and myself as I added a quicker exit rule and a better profit-taking mechanism.

Pairs
This strategy works best on GBPUSD\EURUSD\GBPJPY

Charts
I use this system on 15M\1H\4H. Of course, If there are conflicting signals the higher timeframe wins...

Indicators
*Stochastic Oscillator (K%=10, D%=3, Slowing=3), remove the signal line (slowing) as you won't be using it here.
*Awesome Oscillator

Entry Rules
Enter Long after Stochastic main line crosses 60 up.
Enter Short after Stochastic main line crosses 40 down.
Stop order is placed 1 pip above the high of the candle (for long), and 1 pip below the low of the candle (for short).

Exit Rules
Exit trade when Awesome Oscillator makes one bar in opposite direction of your trade. Explanation:
If you are long and Awesome Oscillator creates a red bar - exit trade when the bar is closed.
If you are short and Awesome Oscillator creates a green bar - exit when bar is closed.
Just look at the pictures.. it doesn't really matter to be 100% precise in these exits, anyway the trends you'll catch are big enough so late exits won't hurt the profits too much.

Money Management
As usual I recommend not risking more than 2% of equity on a single trade.

Example of Trades

Profitable trading,
C0NUNDRUM

Weekly Results : +194 pips

2009-04-11T23:02:00.000-07:00

As you may have guessed I am really thrilled, the BollBounce strategy continues to produce very nice results. There have been some really good trades this week, all in the 4H. There might have been some at the 1H but due to lack of free time I don't take these trades.

Here are the weekly results of the BollBounce Strategy:

EURUSD +94 pips
GBPUSD -84 pips
USDCHF +57 pips
USDJPY -73 pips
EURGBP +119 pips
EURJPY +40 pips (trade still running)
GBPCHF +41 pips

TOTAL +194 pips

For rules and examples of trades, click here to see the original post for the system.

I am also planning to post an article this week, about the Bollinger Bands and several advanced uses of them in trading. If you don't want to miss it, subscribe to updates :).

Good trading week and lots of pips.

By the way: Comments are always welcome.

Trade at the GBPJPY

2009-04-06T23:11:00.000-07:00

A live trade on the GBPJPY.. Wait for price to go past green line, Stop Loss at the Red line and - let the profits run :-)

Edit 12:47: Look how the stop order filtered the false entry.

For instructions for the BollBounce Swing Trading, click here.

System: BollBounce - Simple Swing Trading

2009-04-05T13:01:00.000-07:00

A nice system I have been trading for 3 months.. gained me 50% on account so far :-)
It is based mainly on price movement, and the fact that prices like to retrace to trending moving average and bounce from it, creating strong movements.

Last 2 Weeks Results
GBPUSD: +212 pips
EURUSD: +712 pips

Charts
1H and 4H Charts

Indicators
Bollinger(Period=20)

Entry Rules
Entry is made after price bounces from Bollinger's Moving Average, when the Moving Average is trending (pointing up or down).
After price has bounced from MA (Created a bullish candle for long trades or bearish for short), place stop order 1 pip above the candle (for long) or below the candle (for short). Watch examples for clarifications.

Stop Loss is 1 pip below low of the previous bar (for long trades), and 1 pip above high of previous bar + spread (for short trades).

Trailing Stop
Stop Loss is trailed to 1 pip below lowest low of last 4 bars (for long trades) and to 1 pip above highest high of last 4 bars (for short trades). Exits are done only by the trailing stop.

Example of Trades

Trade Set-Ups, not Discretionary Trades.

2009-04-03T12:07:00.000-07:00

This is one idea that has helped me become profitable trader.

Most people who are exposed to the field of trading have a concept in mind of how trading should be like: A confident man with lots of screens and phone lines, clicking on his mouse and watching green and red bars blend on his screen in chaos. This illusive vision encourages people to take trades, much more than they should take and in less-than-satisfying condiitons.

I SAY: LEARN TO TRADE ONE SPECIFIC FORMATION, IN SPECIFIED CONDITIONS.
Choose market condition you know well and which you can take trade in. Write it down. Whether it is 'MA15 crosses MA30', 'CCI crosses Zero-Line' or WHATEVER. Just stick to it and trade it solely for a month. After a month, investigate and learn from your mistakes. This is the way to mastery.

A good friend of mine, trades only one formation: he waits for a Fibonacci retracement of 38.2% after strong trend to enter. Sounds stupidly simple, isn't it? This guy has quadrupled his account several times. And even after two years of trading consistently and profitably, he does not dare taking discretionary trades (trades that are not part of his system). He doesn't NEED to.

The truth is, most people and especially novice traders, have not developed the 'feel' for the market. Without that 'feel', which takes years to develop, discretionary trades are almost doomed to fail. By trading systematic trades which have an edge, the novice trader can enjoy a flow of money, and also the time to watch the market and study its behavior. Like the old saying (I think Bruce Lee said it): "I do not fear the thousand kicks you practiced only once, but I do fear the one kick you practiced a thousand times."

However, there is one disadvantage to this philosophy: You may find yourself staring at your screen for days, sometimes, without action. It can be frustrating - but rewarding.

In the next article I will share with you one of the systems I trade, for you to use as YOUR edge at the market. If you don't want to miss it, I suggest you subscribe to updates.

Profitable Trading Week,
C0NUNDRUM