Tagged "eur usd"

Introduction

I had planned on releasing the Support/Resistance article this week (as per the Training Schedule for October 1st), but I have a surprise for you that is well-worth the wait: a new strategy BUILT-IN to CandlePro AND this article on how to use that feature in your trading! It is a 2-for-1 :).

What is the Double/Triple Strategy?

The Double/Triple strategy is a confluence-based strategy that looks for multiple candles in the same timeframe that all point in the same direction. For example if there is a BULLISH Doji on the 15m EUR/USD and a BULLISH Hammer on the 15 AUD/USD. A triple is when the EUR/USD, AUD/USD and GBP/USD all line up together and are considered stronger than a double.

How do I detect new Double/Triple signals with CandlePro?

Great question! Detecting new double/triple signals with CandlePro is easy – just search for new candles like you normally would and any double or triple signal will be noted with this symbol:

Here we can see an example of a double EUR/USD and GBP/USD symbol:

What are the entry and exit rules for this strategy?

These are basic rules. Adapt as you see fit for your trading strategy and other factors such as trend, quality of signal, etc.

1) Enter trade in the direction of the signals

2) Place stops at least as far away as the CandlePro recommend Min SL found on the Performance Report

3) Have tiers of targets with the 1st target equal distance with the SL or at the Max recommend TP level (in Performance Report) – whichever is closer. At this level you can either take profit if you are scalping OR move SL to break-even to eliminate risk in the trade. Place 2 more targets at appropriate S/R levels, and at each target move your SL up to the previous target level (so for example at T2 I would move my SL to T1).

Note: The best results always come from looking at the charts and using support/resistance levels that make sense, but for those that want a more cookie-cutter approach these are the steps I recommend.

Three Tips for Better Performance

1) EU+GU doubles are better performers. The system is setup to detect a double on EU+GU, EU+AU or AU+GU, BUT not all of these combinations are created equally. By far and away the EU+GU signals are the most powerful, representing much more volume than any AU combination. That doesn’t mean you can’t trade an AU double – it just means the setup (including trend, price action, etc) has to be cleaner than an EU+GU setup.

2) A triple should be viewed as an EU+GU with a AU as a kicker (in poker a ‘kicker’ is a side card that breaks ties between competing hands). That means trade the EU+GU as the primary, AU is extra confirmation and an AU trade should be taken based on the chart.

3) As with everything in forex looking for more confluence – rejection or breakouts of support/resistance, trade with the trend, look at different timeframes, look for signals with good RR ratios. In the FX markets every little drop helps. Remember, it is all about stacking the odds in your favor.

Trade Examples

Rather than re-invent the wheel here with trade examples I’m going to point you to Neil’s (@ukfitness) CP blog where he has been successfully using this strategy for almost 2 months now. Great job to Neil for keeping such a good trade journal and for identifying a winning strategy.

Click here to go to the journal.

Conclusion

Doubles and triples are powerful cross-pair signals that work because they reflect underlying shifts in currencies. Combining them with forex fundamentals such as money management and trend trading are yet another way CandlePro will help you improve your trading.

12-4-09

5:41a GMT – Yesterday’s signals produced a trade (which is still open) at 1.5050 (currently a little bit in the profit) though I have tightened the stop as 4h charts are leaning toward a bearish consolidation pattern. Another reason I have tightened the stop considerably is because on the daily chart a bearish shooting star was produced so today could be a bearish profit-taking day for the markets. The AUD/USD trade I mentioned in the comments produced good pips as well :).

As far as yesterday’s news went Bernanke again talked about protecting the dollar – but the markets have heard this many times from Bernanke and never have his actions matched his words. In fact his actions (historically low interest rates) have said the exact opposite: that he at the moment cares very little about the value of the USD. One interesting thing he did say at his Senate meetings was that he would consider using interest rates to “burst” asset bubbles before they got too big.

Daily Outlook: Even as I write this we are seeing a bit of a bounce in the EUR/USD, which is good for our trade, but the signals for today are a bit mixed. The bearish shooting star on the daily chart yesterday and the potential double-top at 1.5140 are signals for a potential return to channel bottom around 1.4880. I will keep my long open from yesterday with a tight stop, though a break of support at 1.5025 will open the short-term bearish challenge of 1.4970. If it reaches this level I will look for bullish candlesticks to buy on.

News Events: Be weary of the Non-Farm Payroll (NFP) data and the US unemployment data due to come out around 13:30 GMT. Markets are usually choppy around news events.

Trading Idea: On a break of 1.5025 look for a challenge of 1.4970 support, around which I will look for buying opportunities with targets at 1.5000, 1.5030 and 1.5065.

(click to enlarge)

Update Graph: Big drop today. Wanted to post this longer term chart to give you some perspective on the drop. Looks like a better buying opp as it approaches that lower trend support doesn’t it?

Quick Links:

Sign up for free forex signals via email here
FAQ on these signals
Forex Candlestick Alerts
Forex Income Calculator
Forex Market Hours
Forex Forums

No signals for the EUR/USD pair today as US Banks are closed for Thanksgiving holiday. From wikipedia:

“Thanksgiving Day is a harvest festival celebrated primarily in Canada and the United States. Traditionally, it is a time to give thanks for the harvest and express gratitude in general.”

No need to be from the US to celebrate this holiday – take a little time out to say “thanks” to the people who are important in your life and for all that you have!

Of course PipHut’s Forex Candlestick Signal Service is still running so feel free to check in there for candlestick alerts. Also you can catch up on some of the Learn Forex articles, post in the forums or feel free to discuss your day’s trades in the comments below as usual!

Best,

Mark

I’m proud to roll out a few new services for PipHutters today, services that I think you will find extremely useful to help you trade better. Some of these services you may have noticed recently, others I bet you have not…

By far the most exciting of the new announcements, welcome the Candlestick Alert Service! No matter how good a trader you are sometimes you miss candlestick signals. The best of us do it. Not anymore!

What this little gem does is monitor the 30m and 1h charts of the EUR/USD and show you if any bullish or bearish candlestick signals have been detected! Now this is still in BETA, so I want to remind people that the presentation might still be a little rough around the edges but that is what I need your feedback for!

Right now the service will only detect candlesticks on the 30m and 1h of the EURUSD and I’m starting with only the doji, shooting star, hammer, inverted hammer and hanging man. Once I’m sure it is detecting those properly I will begin to roll out other patterns as well..

Click here to visit the Candlestick Alert Service

What could go better with the Candlestick Alert Service than a Candlestick Quick Reference guide? Not much! This is pretty short right now, because I wanted to only display candles that the alert service is currently detecting (see above for list). But on the quick reference guide if you click on the image or name of any candle it will bring you to a more detailed page.

Click here to visit the Candlestick Reference Guide.

I’ve had quite a few people ask me recently for a forex market hours tool, to see what markets are open and closed. Ask and you shall receive! Pretty self-explanatory. Check it out.

Click here to visit the Forex Market Hours page.

Yes, I know PipHut already had forums but, to be honest, I hated them. They were clunky, looked bad, were hard to navigate. I think these new forums (hopefully you agree) will be much easier for everyone to use. I know that the comments section of the posts are easier (and in many cases better) for discussing the day’s trading, but there are some things much easily discussed in a forum, such as trading systems that you can refer back to, ongoing conversations about a news event, commodities, OR if you want to post a chart or keep a journal thread going.

By the way, if you start a thread and aren’t getting much traction just let me know, I’ll post a link to it front and center on the main site and give you plenty of traffic.

Click here to visit the Candlestick Reference Guide.