Trade Alert for - Symbol GBP/USD.

Trade Alert for Friday May 30, 2008.

On May-30-2008 a candlestick formation confirmed a sell signal. 4xGenie Action: ==> Sell this par at 1.9706. Stop at 1.9868. Wave 3 could drop down to 1.9465 or to 1.9200. Today’s candlestick appears in the yellow shaded area of the chart. This reflects strong consolidation here!

TRENDLINE ALERT: Support level of 1.9784 was broken today. Look for a possible drop to the next support level.

Next Day Trading Ranges for May 30, 2008.

The 20 day moving average of the daily trading range is 145 pips and the 60 day moving average of the daily trading range is 175 pips. This shows that volatility has decreased in the short term. The percentage of downdays when the open/high ratio is less than 25% is 61.48 percent. This means that if this security or future does not rise more than 36 pips from the opening price then there is a 61.48 percent chance that this will be an downday.

The [R3] or the most extreme high trading range is 1.9963.

The [R2] or the extreme high trading range is 1.9891.

The [R1] or the high trading range is 1.9819.

The [P] or pivot point is 1.9747.

The [S1] or the low trading range is 1.9675.

The [S2] or the extreme low trading range is 1.9603.

The [S3] or the most extreme low trading range is 1.9531.

Next Day Alternate Stops for May 30, 2008.

The red line to the right on your chart is an extreme support or resistence level for the next trading day.

A good alternative stop is one which is placed just beyond this extreme support/resistance level.

In this particular case if the price rises above 1.9891 then that would show momentum against 4xgenie’s short position and that would be a break out to the upside.

Please Note: These support/resistance levels are calculated by using the previous day’s trading range. Normal volatility may cause a breakout of this value once every 4 or 5 days when prices consolidate.

Alternate stop: 1.9815.

Current Day Trading Session:

New momentum to the downside has just started.

Next Day Trading Session:

If the next day’s close is above 1.97890 then that could be a sign that the current downward momentum is reversing.

4xgenie

STRADDLE EUR/USD

Nice STRADDLE Set-Up for EUR/USD

For more information how I Trade FOREX STRADDLE

http://www.4xgenie.com/Trading%20Strategys.html#Alert%20system%20#4

4XGENIE.COM

FOREX STRADDLE

is basically an Forex Trading Strategy to trade Forex when you don’t know

which way the PAR (USD/CHF) will head, but you know it will move

big magnitude in one direction.

And thus, you place TWO LIMIT ORDERS.

4XGENIE.COM

Trade Alert for - Symbol  USD/CHF.

Trade Alert for Tuesday  May 27, 2008.

A buy signal was confirmed when this PAR closed above 1.0294 on May-27-2008. 4XGENIE Action: ==> Buy this contract at 1.0365. Stop at 1.0216. Wave 3 could rise up to 1.0494 or to 1.0675. The PAR closed above the middle fibonacci fan line. Prices should find support on this middle fan line. NOTE: A consolidation of price movement or a price correction may be underway. The CCI is below -100. This PAR is oversold at this time.

Trade Alert for - Symbol  EUR/CHF.

Trade Alert for Tuesday  May 27, 2008.

On May-27-2008 a candlestick formation confirmed a buy signal. 4XGENIE Action: ==> Buy this PAR at 1.6236. Stop at 1.6115. Wave 3 could rise up to 1.6309 or to 1.6694. Today’s candlestick appears in the yellow shaded area of the chart. This reflects strong consolidation here!

Trading successfully is by no means a simple matter. It requires time, market knowledge and market understanding and a large amount of self restraint. ACM does not manage accounts, nor does it give market advice, that is the job of money managers and introducing brokers.

As market professionals, we can however point the novice in the right direction and indicate what are correct trading tactics and considerations and what is total nonsense.

Anyone who says you can consistently make money in foreign exchange markets is being untruthful.
 

Foreign exchange by nature, is a volatile market. The practice of trading it by way of margin increases that volatility exponentially. We are therefore talking about a very ‘fast market’ which is naturally inconsistent. Following that precept, it is logical to say that in order to make a successful trade, a trader has to take into account technical and fundamental data and make an informed decision based on his perception of market sentiment and market expectation. Timing a trade correctly is probably the most important variable in trading successfully but invariably there will be times where a traders’ timing will be off. Don’t expect to generate returns on every trade.

Let’s enumerate what a trader needs to do in order to put the best chances for profitable trades on his side:

Trade with money you can afford to lose:
Trading fx markets is speculative and can result in loss, it is also exciting, exhilarating and can be addictive. The more you are ‘involved with your money’ the harder it is to make a clear-headed decision. Money you have earned is precious, but money you need to survive should never be traded.

Identify the state of the market:
What is the market doing? Is it trending upwards, downwards, is it in a trading range. Is the trend strong or weak, did it begin long ago or does it look like a new trend that’s forming. Getting a clear picture of the market situation is laying the groundwork for a successful trade.

Determine what time frame you’re trading on:
Many traders get in the market without thinking when they would like to get out, after all the goal is to make money. This is true but when trading, one must extrapolate in his mind’s eye the movement that one expects to happen. Within this extrapolation, resides a price evolution during a certain period of time. Attached to this is the idea of exit price. The importance of this is to mentally put your trade in perspective and although it is clearly impossible to know exactly when you will exit the market, it is important to define from the outset if you’ll be ’scalping’ (trying to get a few points off the market) trading intra-day, or going longer term.
  
 

This will also determine what chart period you’re looking at. If you trade many times a day, there’s no point basing your technical analysis on a daily graph, you’ll probably want to analyse 30 minute or hour graphs. Additionally it is important to know the different time periods when various financial centers enter and exit the market as this creates more or less volatility and liquidity and can influence market movements.

Time your trade:
You can be right about a potential market movement but be too early or too late when you enter the trade. Timing considerations are twofold, an expected market figure like CPI, retail sales or a federal reserve decision can consolidate a movement that’s already underway. Timing your move means knowing what’s expected and taking into account all considerations before trading. Technical analysis can help you identify when and at what price a move may occur. We will look at technical analysis in more detail later.

If in doubt, stay out:
If you’re unsure about a trade and find you’re hesitating, stay on the sidelines.

Trade logical transaction sizes:
Margin trading allows the fx trader a very large amount of leverage, trading at full margin capacity (in ACM’s case 1% or 0.5%) can make for some very large profits or losses on an account. Scaling your trades so that you may re-enter the market or make transactions on other currencies is generally wiser. In short, don’t trade amounts that can potentially wipe you out and don’t put all your eggs in one basket. ACM offers the same rates regardless of transaction sizes so a customer has nothing to lose by starting small.

Gauge market sentiment:
Market sentiment is what most of the market is perceived to be feeling about the market and therefore what it is doing or will do. This is basically about trend. You may have heard the term ‘the trend is your friend’, this basically means that if you’re in the right direction with a strong trend you will make successful trades. This of course is very simplistic, a trend is capable of reversal at any time. Technical and fundamental data can indicate however if the trend has begun long ago and if it is strong or weak.

Market expectation:
Market expectation relates to what most people are expecting as far as upcoming news is concerned. If people are expecting an interest rate to rise and it does, then there usually will not be much of a movement because the information will already have been ‘discounted’ by the market, alternatively if the adverse happens, markets will usually react violently.

Use what other traders use:
In a perfect world, every trader would be looking at a 14 day RSI and making trading decisions based on that. If that was the case, when RSI would go under the 30 level, everyone would buy and by consequence the price would rise. Needless to say, the world is not perfect and not all market participants follow the same technical indicators, draw the same trendlines and identify the same support & resistance levels. The great diversity of opinions and techniques used translates directly into price diversity. Traders however have a tendency to use a limited variety of technical tools. The most common are 9 and 14 day RSI, obvious trendlines and support levels, fibonnacci retracement, MACD and 9, 20 & 40 day exponential moving averages. The closer you get to what most traders are looking at, the more precise your estimations will be. The reason for this is simple arithmetic, larger numbers of buyers than sellers at a certain price will move the market up from that price and vice-versa.

Trade Alert for - Symbol  AUD/NZD.

Trade Alert for Thursday  May 15, 2008.

Trade Alert for - Symbol  EUR/JPY.

Trade Alert for Tuesday  May 13, 2008.

On May-13-2008 a candlestick formation confirmed a buy signal. A buy signal was also confirmed when this par closed above 161.50 on May-13-2008. 4XGENIE Action: ==> Maintain long position. Stop at 158.18. Wave 3 could rise up to 164.61 or to 165.81. Today’s candlestick appears in the yellow shaded area of the chart. This reflects strong consolidation here! The CCI has crossed above -100. Look for rising prices soon.

FOREX Trade Alert for - Symbol  GBP/JPY.

FOREX Trade Alert for Wednesday May 07, 2008.

On May-07-2008 a candlestick formation confirmed a sell signal. 4XGENIE Action: ==> Sell this PAR at 204.27. Stop at 209.29. Wave 5 could drop down to 198.04 or to 194.38.

TRENDLINE ALERT: Support level of 205.9731 was broken today. Look for a possible drop to the next support level.