Hello everyone,

Last month I pointed the bearish breakout we were seeing on GBPJPY weekly chart at around 210.00. In fact, it was a text book flag breakout in the direction of the trend and therefore my bias on this pair was indeed to the downside.

Well, a full month has gone by and GBPJPY has plummeted for over 2000 pips south. I was just curious whether anyone else has profited from this move?

Hello folks,

Have a look at the picture below. It’s the GBPJPY weekly chart which, in my opinion, seems to be going through a text-book breakout of a bearish flag formation. Do you guys see the pole and the flag in itself (marked with gray dotted line in the picture)?

As I explain in my Forex Trading Course, my typical stand on this type of breakouts is to wait for the first pullback before going on full “sell” mode, just as I mentioned last week on that EURUSD setup.

Hello folks,

Some few days ago I was mentioning the breakout of the upward range we had seen on EURUSD from the low 1.50′ies to 1.6000. Indeed, EURUSD upon having formed a double top at 1.6000, broke the upward channel bottom to the downside.

At that time I mentioned that those who like to trade within ranges could have a very good short opportunity by selling the EURUSD after the first pullback to retest breakout levels. Also, the logical target would be the range bottom in the low 1.50′ies…

Well, the pullback did happen, it did retest breakout levels (see picture below), and from there it dropped almost 500 pips within the last few days. Very nice high-probability trade setup, isn’t it?

As I always say, price action trading is nothing but buying support and selling resistance, especially if it’s aided by a solid breakout. EURUSD has just proven, once again, that this simple-yet-effective technique is all a trader needs to be successful.

Hello folks,

Today I have a little bit of free time so I wanted to share a chart with you.

Have you noticed that EUR/USD has been moving within a recurrent pattern throughout the last two years? It seems like EUR/USD moves in 1000-pip blocks, then consolidates for three or four months and finally it pushes up another 1000-pip run before consolidating again.

Please pull your EUR/USD weekly chart so you can follow along with me: in mid-2006 price flapped sideways for few months in the 1.2xxx whereabouts. Then, in fall 2006, it popped the range and ran up into the 1.3xxx where it ranged sideways once again in mid 2007 for another 3 or 4 months. Fast forward to fall 2007 and… pop-it-goes into the 1.40xx, where once again it ranged sideways for another 3 or 4 months in late 2007/early 2008.

The last run-up took place in spring 2008 when price rocketed from 1.5000 to 1.6000, and ever since we’ve been ranging sideways for… bingo! 3 or 4 months!

What am I getting down to? well, it seems to me that EUR/USD has been following a repetitive “move-congestion-move” pattern throughout the last two years, and as of lately we’ve been toying around the 1.6000 barrier after having bounced around the 1.50′ies for quite a while… I wonder: is EUR/USD ready for another 1000-pip run to 1.7000 soon?

Screenshot attached below:

Hello traders,

Today I took a quick intraday trade on the Aussie (AUDUSD). You know, aiming for nothing but a fistful of pips before launch time for the lack on any better trading opportunity around.

Today’s trade is a clear example of Round Numbers as I explain them on chapter #4 of my Forex trading course, and more specifically how they work as “pivot points” for intraday price action.

In this particular case, I saw the Aussie breaking through the 0.9600 round number -which had worked as resistance yesterday- and I went long aiming for the next round number at 0.9650. The swing took place in quite a momentum considering the Aussie is a slow-moving currency pair and I managed to fish +26 pips within an hours and a half or so.

Let me show you the live video here below.

Get the Flash Player to see this player.
Do you want to receive my periodical emails with useful trading tips, strategies, systems and all around interesting stuff? Sign up to my News Letter at the top-right corner of this page!