Outlook is a bit muddied at the moment as it always is when we have strong retracements in the middle of trends. The question is always “is this part of a larger move to the upside or will we see the resumption of the downtrend soon”. The only answer is “the charts will tell us”, and to that end I see 1.2765 as the key daily support level: above this level I will stay bullish and look for longs, below this level and I will look for shorts on the day.

As always CP users can check multiple pairs/timeframes for intraday candlestick signals and you should watch out for news events on the forex calendar.

Trading Idea: Looking for longs above 1.2765 and shorts below. Trend is a bit muddy right now so standing aside is a good option for this pair, but my primary active trade will be a long with confirmation near 1.2765 with long targets at 1.2790, 1.2820, 1.2850 and 1.2880 for 115 pips profit.

*** For those of you on the CandlePro waiting list check your emails later today, there is an important announcement going out :) ***

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Source: Forex Signals – EUR/USD Bullish Breakout
Forex signals from: PipHut.com

I took a few short term shorts off the resistance line yesterday, nothing major but enough to keep me interested. I’ll be more cautious today as the tail end of the consolidation pattern is always the most volatile. Today I am bullish above 1.2750 and bearish below 2750 (e.g. looking for shorting opps).

As always CP users can check multiple pairs/timeframes for intraday candlestick signals and you should watch out for news events on the forex calendar.

Trading Idea: Looking for shorting opportunities on confirmation below 2750.

Primary trade will be a short from 1.2730 with candlestick confirmation, short targets at 1.2705, 1.2675, 1.2645 and 1.2615 for 115 pips profit.

Aggressive short would be on a sustained break of 1.2630 to the downside and an aggressive long is a sustained break above 2750 (though be weary of a false breakout short squeeze here).

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Source: Forex Signals – EUR/USD Triangle Consolidation Pattern
Forex signals from: PipHut.com

v1.3 – August 25th – lots of changes, best to see the writeup: http://piphut.com/2010/08/candlepro-upgrades-august-25th/

v1.21 – August 24th – added a numerical percent (out of 100) to the forecast strength meter on the search results page. Thanks for the suggestion @max777

v1.2 – August 23rd – duplicate candle issue resolved. Added functionality to view BRAND NEW candles only under “age” on the scan options top nav. If you are currently in CP you may have to restart your browser and/or clear your browser’s cache for the “new candles” feature to work properly

v1.11 – August 15th – minor update to performance report: added “close price” under the “OPEN Time” for ease of use (thanks @cadtek for the suggestion)

v1.1 – August 15th – major updates to performance report page including: report caching (for improved speed), show selected signal (ease of use) and “back to search results” button (ease of use). You might need to refresh your browser or clear cache if you run into any problems.

v1.01 – August 8th, 2010 – bug fix where some bearish engulf results were showing as less profitable than they really were. Credit forexpro for finding bug.

Source: CandlePro Changelog
Forex signals from: PipHut.com

Technically we remain pointed in the downward direction here and, in general, I continue to look for bearish signals to short. The biggest threat to the trade that I see is the possibility of a triangle consolidation wedge forming on the daily charts – if we see a bounce off of 1.2630 then it could signal the pair is going to range for the day.

1.2700 is the key pivot I am watching – above this level I am short-term bullish, below I am bearish.

As always check the candlestick alerts for intraday trading opps and watch out for news events on the forex calendar.

Trading Idea: Primary trade will be to look for opportunities to short below 1.2700 with targets at 1.2675, 1.2645, 1.2615 and 1.2585 for 115 pips profit.

In general I am looking for shorts below 1.2700 and I’m short-term bullish above 2700. A threat to the trade is a possible wedge consolidation pattern that could form if 1.2630 is not broken to the downside.

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Source: Forex Signals – EUR/USD Bears Steamroll the Bulls
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Signal will be back tomorrow!

Happy Pipping!

Mark

P.S. link to Part 2 of the CP strategies article here

Source: No Free Signal Today
Forex signals from: PipHut.com

As you can see this article has turned from a simple couple page article into a full-blown tutorial/multi-page beast. It is now counting many dozens of pages, dozens of images/graphs, etc. Now this is a good thing for everyone as the more details that are provided the better but I’ve had to chop it up again to keep it manageable. In this section (Part 2) we’ll look at how to introduce a trading plan into CandlePro, the basic trading steps of a CP strategy, and, of course, four Basic and Intermediate trading strategies using CandlePro.

The THIRD AND FINAL (I promise) part of this article will be out this week and will include four additional Advanced and High Probability trading strategies to use with CP. Sorry to chop it up again but, like I said, this really is the best for everyone in the long run as you get the most amount of info in the best format. Additionaly I’ll be releasing this as a PDF for CP Pro users to download and print for reference.

Source: Part 2: CandlePro Strategies
Forex signals from: PipHut.com

In a nutshell investors are scared of lots of different markets right now so they are trying to figure out the best place to put there money. When that happens it will either benefit the USD or it won’t – we’ll wait for the charts to tell us. I’m short term bullish for the moment (if you are watching candlesticks entries) while eyeing a medium term resumption of the downtrend but, again, I’m not going to assume anything. I’ll let the charts give me direction.

As always check the candlesticks in CP for intraday trading opps and watch out for news events on the forex calendar.

P.S. I’ll be releasing Part 2 of the CP strategies article this weekend which should be a good one. Also I’ll most likely be opening up CandlePro to more registrations next week. More on that Monday!

Trading Idea: I’m standing aside this Friday (as usual) to avoid the choppy markets, but for those risky souls out there my primary trade would be to wait for a short to develop higher up around 1.2800, with confirmation. Short targets from 1.2800 at 1.2775, 1.2745, 1.2715 and 1.2685 for 115 pips profit.

An aggressive long is basically to wait for a bullish candlestick along the bottom of the rising trend support (see black bottom line on my chart above) and to keep riding them up until 1.2790 or so.

Happy Pipping everyone and see you on Monday!

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Source: Forex Signals – EUR/USD Waiting for the Downtrend
Forex signals from: PipHut.com

“I’m delaying Part 2 of the strategy article I was going to publish today. I think it is an important article and I want to take the time to get it right and that means gathering lots of charts and putting together a great article that everyone can get something out of. I’ll try and get it out tomorrow or Friday, but it might be this weekend at the latest.”

Sorry for the delay, but again I feel it is an important article to get right.

Thanks,

Mark

Source: UPDATE: Part 2 of the Strategy article
Forex signals from: PipHut.com

I stayed flat yesterday as price action and candlesticks did not present any good trading opportunities as this recent downtrend seemed to stall out a bit. US New Home Sales were so horrible I think even safe-haven investors who normally flock to the USD in times of risk-aversion were weary of putting more money into US Dollars.

Regardless the downtrend has lost some short-term momentum leaving tomorrow’s outlook a bit murky. I’m still looking for a longer-term resumption of the downtrend but whether that will come tomorrow or next week only the charts can tell us. For tomorrow I will look for a relatively conservative short for a primary trade (i.e. likely to not get triggered) while giving weight to short term bullish candles for small opportunities.

As always check CandlePro intraday trading opps on all pairs, and watch out for news events on the forex calendar.

Trading Idea: Primary trade is probably best described as “stand aside”, but I will look for a conservative short around 1.2800 until the short-term technicals sharpen up a bit. From 1.2800 short targets are 1.2775, 1.2745, 1.2715 and 1.2685 for 115 pips profit.

In general I am actually bullish in the short-term now looking for a small correction before resuming the overall downtrend and will keep my eye open for candlestick setups with good reward/risk ratios in CandlePro.

Caution advised for the EUR/USD today, folks. Happy pipping and stay safe.

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Source: Forex Signals – EUR/USD Caution, Downtrend Stumbles
Forex signals from: PipHut.com

I’ve put together this Q&A to help everyone benefit from the answers I’ve given in emails and chat posts about 10-Candle Strategy and drawdown. Here goes:


Question #1 – Hey, I think the drawdown numbers are wrong in CP! When I look at the 10 candles after a signal it went down X pips and CP lists it as Y pips. What gives?

Answer: If you think there is a discrepancy then you should email me (support@piphut.com) so I can take a look but read this first:  99/100 times CP is functioning perfectly but you need to understand how the drawdown is calculated. The drawdown is the most the pair moved against your BEFORE hitting the 10 candle profit – anything after is discarded as the purpose is to know where to put our stop-loss to hit the 10-candle profit.

Question #2 – Why is it set up that way?

Answer: It helps to think about what we are trying to know: ON AVERAGE, how much does the pair move AGAINST (drawdown) our position before hitting the highest AVERAGE point in 10 candles (10-candle profit). If we were to take all 10 candles into consideration for the drawdown it would no longer tell us where to put our stop-loss to get to the 10-candle High, it would tell us where to put our stop-loss to get through 10 candles, regardless of what the 10-candle high is. Which isn’t very useful.

Question #3 – I’m still confused. What if it moved in your favor 30 pips first 5 candles then down 60 pips last 5 candles for a loss of 30 pips, is the candle profit 30 and drawdown 30?

Answer: In your example your 10-candle profit = +30. Your drawdown would be the most the pair moved against you BEFORE that fifth candle.

Let me see if I can draw this out with letters. Here is what I know from your example above:

X X X X +30 X X X X -30

Those ‘X’s represent the current profit of the pair. Let me add some values to that:

5 -10 0 20 30 X X X X -30

Now the drawdown is -10, because that is the most the pair moved against your BEFORE hitting the 10 candle profit (which it hit on the 5th candle ’30′).

Question #4: What if it moved up one pip the first candle then back down to entry and stays the the rest of first candle , then down 15 for the last 9 , since the first candle was the 10 candle profit level (1 pip) with out ever going against you, would that not make the drawdown 0 instead of -15?

Answer: Yes, that would make the drawdown 0 and the 10-candle profit +1. Not a very compelling candlestick setup!

Question #5: Doesn’t this skew the stats? Meaning that if this is the case if the price moves the right way just a little (before reaching any reasonable profit target) and then moves against you dramatically, CandlePro will NOT report any negative move that happens after the correct move, even if it’s within the 10 candle. However, if it’s the other way around, Candle Pro will report the dramatic correct move which went the correct way within 10 candle.

Answer: This would be true if we were only looking at one signal. The power of CP is that it gives us crunches the data on up to 50 previous signals and gives us all the averages/data which means that:

1. If a pair does this often then the RR ratio (both median and average are provided) will be bad because 10-candle profit will be small and the trade wouldn’t be taken in the first place then
2. This is also why I recommend looking at “past trades” in the videos – to confirm the pair has healthy profit levels
3. This is also why I recommend using a SL for all trades (and as an experienced trader I’m sure I’m preaching to choir here) – because no trade is guaranteed and if it moves against you the max you should lose is your SL. Luckily CP analyzes the past signals to give you a good starting point of where to put your SL.

Question#6: I get it now!

Answer: That’s not a question, but great! Remember CP is great in that in crunches all of that historical data for you to make your trades smarter. As stated in all the launch material, user guide, etc., CP is not a strategy in and of itself – it is first a candlestick scanner and second a candlestick analyzer and the real power lies in its crunching of historical data. That historical data (i.e. the performance report) allows you to make smarter trades based off of candlesticks.

The 10-Candle Strategy in one sentence:

10-Candle Strategy tells us this: ON AVERAGE, how much does the pair move AGAINST (drawdown) our position before hitting the highest AVERAGE point in 10 candles (10-candle profit). Knowing this and understanding this helps makes better trades based off CP data.

Source: Q&A: 10-Candle Strategy and Drawdown
Forex signals from: PipHut.com