[The forex alerts and charts are protected for Trader Membership members only. Join us to see all content]

In the light of the Chilean earthquake, and its possible after effects on copper prices, a member has asked for my thoughts on the copper chart. Copper is not something I have looked at for some time, but you can see on the chart there was an ideal opportunity to go long (first 2 yellow spots) using the Ichimoku signals. Currently the up-trend line has been broken and the price action is now testing from the underside. Old support often becomes new resistance, so perhaps pay attention to the yellow box (4H chart) area which contains the trend-line, a Chikou resistance and the round figure (350) near a recent high. Perhaps this pattern could turn into a 123 reversal. (See education on 123).

For Ichimoku learning.

Notice the candles giving a  Piercing Pattern/Tweezer bottom against the bullish Kumo (3rd Yellow spot). This also came just on the old Chikou resistance (green slatted line).  A great signal for entering or adding.

Expanding on the 123 approach I mentioned in an earlier post I show below some suggested points for scaling in entries, and the suggested points for more confirmed set-ups.

[The forex alerts and charts are protected for Trader Membership members only. Join us to see all content]

123 patterns give the opportunity for entries at retracement points (3) and are a safer option than trying to pick exact tops or bottoms.

[The forex alerts and charts are protected for Trader Membership members only. Join us to see all content]

I have started this post so that there is a record for members education on Kijun Sen/Tenkan Sen

16/2. The low of the Morning Star on the daily chart did not hold support and the 4 following black candles have bullish overtones.  That is to say I am considering that the first three have long lower tails and the forth is a Spinning Top formed within the previous candle (Harami). This could mean the bulls may try to force the price higher, which also means there may be some opportunities north for experienced day traders/scalpers.

17/2. Day Trader and scalping members took some profits (maximum 156 pips) from the Euro based on the chart set-up given yesterday. With yesterdays candle providing a second Morning Star pattern there would appear some possibility for continuation in the short term. I have put this on a separate post now for record purposes. Result shown below

16/2. First chart

17/2 – 2nd Chart (Result – maximum 156 pips)

Using Ichimoku to assist with potential entry points.

In the chart below we see all Ichimoku elements are bullish.

TS/KS has crossed, Chikou has broken through plot, and the plot through Kumo where it has been finding support. Also of note is that ‘ahead Kumo’ has turned bullish.

Therefore we can view the Read more…

Trading a Trend Line

[The forex alerts and charts are protected for Trader Membership members only. Join us to see all content]

The following are some specific trading phrases that we use on the site. For a broader glossary click here

Placing trades

TP – target price – it’s the price where we want to take a profit

TL – trend line

SL – stop loss – the price at which your platform exits the trade to protect your capital

Platform – the charting package you use to place the trades (e.g. MT4, Oanda, etc)

Trailing stop – a stop-loss that follows behind the trade at a set number of pips

Entry -the price you’re going to place an order for (i.e. buy [long] or sell [short])

North – price action is moving upwards

South – price action is moving downwards

Scalp – actively trading a pair to make small profits many times by closing out positions once they show a profit.

Retrace – when the price of a pair retraces all or a part of a previous move

Scaling in – see this post

Free ride – once we’ve taken a profit on a portion of the trade we place the stop loss at entry to protect the profits.

Ichimoku

KS – kijun sen

TS – tenkan sen

1H – one hour candle off the one-hour chart, i.e. the chart has candles on it that describe one hour of trading each

4H – four hour candle

Currency pairs

Cable for GBP/USD

Euro for EUR/USD

Geppy for GBP/JPY

Loonie for USD/CAD

Kiwi for NZD/USD

Swissy for USD/CHF

Gopher for USD/JPY

Beaver for USD/CAD

This information is duplicated in the members’ area.

Often when talking about a price forex investors only use the decimal numbers and not the integer, for example 1.6270 might be written as 6270. So, we may say there’s a projected move from 6270 to 6310, rather than 1.6270 to 1.6310.