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[14 Jun 2010 | No Comment | ]

There was an interesting development on the GBP/USD pair yesterday because the Supertrend indicator finally turned green on the daily chart, indicating that it’s now in an upward trend. Considering it’s been red since 8th December 2009, this could be a significant change in trend, and suggests that the GBP/USD could be bouncing back after a heavy sell-off in recent months.
From a personal point of view, the reason why this Supertrend indicator is so important is because it tells me which way I should be trading on the 4 hour …

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[14 Jun 2010 | No Comment | ]

It’s been a mixed week this week. I had two trades that worked out pretty well (on the EUR/GBP and GBP/JPY pairs) and two small losses on the USD/JPY pair just to cancel things out. In the end I’m slightly up on the week but it’s nothing to get excited about.
The GBP/USD and EUR/USD didn’t produce any decent trading opportunities this week. Well actually if I had stuck to the trading rules of my 4 hour system I would have gone short on the EUR/USD pair after the EMAs crossed downwards, …

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[14 Jun 2010 | No Comment | ]

You may recall that last week I was hoping that the GBP/USD would fall to around 1.52-1.53 before rising again so that the EMAs would cross upwards and we would have a high probability trading set-up. Frustratingly although this scenario played out perfectly this week, it didn’t quite go according to plan.
I actually traded this pair twice. The first time the EMAs crossed upwards was on Tuesday and I went long at 1.5380. Sadly this upward move fizzled out fairly quickly and I was stopped out for a 40 point …

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[14 Jun 2010 | No Comment | ]

I want to share with you a trade that I placed this week on the EUR/GBP pair because this was a perfect high probability set-up. I was looking through the various pairs to see if there were any set-ups that satisfied the criteria of my main 4 hour trading system, when I noticed an interesting pattern forming on the EUR/GBP pair.
It was clear that after a big sell-off there was a nice double-bottom forming on this pair. This was enough to get my attention, but I also noticed that after the price …

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[13 Jun 2010 | No Comment | ]

It’s been quite difficult trading my 4 hour trading system lately because technically speaking I should still be going short on the GBP/USD and EUR/USD pairs because the daily Supertrend indicator is still red. However this week I just felt that they were both massively oversold and went long on both of them when the EMAs crossed upwards on the 4 hour chart.
I went long on the GBP/USD pair yesterday afternoon at 1.5020. I then closed half of the position for 50 points and let the other half run. I’m …

FYI »

[13 Jun 2010 | No Comment | ]

Just two trades for me this week (using my main 4 hour trading system) as I’ve been focused mainly on shares this week. I opened two long positions – one on the GBP/USD pair and one on the EUR/USD. As I mentioned last week I should really be going short on these two pairs as per my trading rules, but I still think they’re both massively oversold.
Therefore I’ve been looking to go long when the EMAs cross upwards on the 4 hour chart, and as it turned out the EMAs …

FYI »

[13 Jun 2010 | No Comment | ]

1. Supertrend
The Supertrend indicator is one of the best indicators you can use to spot new forex trends in my opinion. It is very easy to use because a green line indicates a bullish trend and a red line indicates a bearish trend, so all you need to do is wait for it to change colour. It’s not so effective on the shorter time frames, but on the longer time frames it works a treat, which is why it’s one of the main components of my 4 hour trading system.
2. …

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[13 Jun 2010 | No Comment | ]

This will be a quick update this week because I didn’t place any trades at all using my main 4 hour trading system. It’s very tough out there at the moment because the GBP/USD and EUR/USD pairs are both bombed out (but unlikely to move much lower in my opinion so not really good shorting candidates), and the other major pairs aren’t doing much either.
I shall continue to monitor these major pairs in the coming weeks but for now I’m being fairly cautious. Most of my time is currently spent trading …

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[13 Jun 2010 | No Comment | ]

In today’s blog post I want to discuss a trade that I opened yesterday on the EUR/USD pair because this is a classic example of a high probability set-up. It is based on my 4 hour trading system (fill in the form to the right for more details) and resulted in a quick and easy profit, with minimal risk.
First of all let me show you the 4 hour chart of the EUR/USD pair:
View the Original article

Tags: Set-Up, Example, blog, EUR/USD, original article, March …

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[13 Jun 2010 | No Comment | ]

Well it’s the morning of Good Friday so I’m obviously not trading today, but it’s been an excellent week this week. I traded two positions in total using my main 4 hour trading system – one on the GBP/USD pair and one on the EUR/USD pair – and both yielded some excellent profits.
As regular readers will know, I’ve been looking to go long on both the GBP/USD and EUR/USD pairs because although the Supertrend indicator is still red on the daily chart, and therefore indicating a downward trend, I just feel …