Apr 29, 2010

Forex Crunch Inside Candle Breakout Technique for Profit on EUR/USD

Forex Crunch Inside Candle Breakout Technique for Profit on EUR/USD

Inside Candle Breakout Technique for Profit on EUR/USD

Posted: 28 Apr 2010 10:58 PM PDT


Guest post by Jason Madison, independent trader and founder ofBeatWallStreetNow.com

Hello All,

I hope you found the inside candle breakout technique I showed to be useful, and I hope some of your went on to use it to make a few pips for yourselves.

Today I am going to show you how I used this technique to make an easy 73 pips trading the Eur/Usd intraday. I hope by seeing the trades I took you will see how easy it is to profit in the forex market if you have the right tools:

Here is a chart of the 15min Eur/Usd from Wednesday, April 28, 2010:

  1. At this point we see a breakout of the previously established inside candle. I immediately went short here and got in at about 1.3210.
  2. It was at this point that I closed my position at 1.3179. I closed my position here because I did not like the price action that was occurring on the smaller timeframes. So I decided to play it safe and get out of the market. This got me 31 pips.
  3. Here we see a large bullish candle and if you look closely that this candle is actually a breakout candle. The two candles before it were inside of the candle that I exited my first trade on. You may be asking yourself why I didn't take this trade. Well it's simple really, I didn't take the trade because the wick was really long which tells me that price tried to move up but couldn't sustain the momentum and the fact that price had touched an area of resistance(as evidenced by the blue line) before it was pushed back down made not taking this trade a no-brainer.
  4. At this time I noticed another inside candle breakout to the upside and I quickly went long and got in at 1.3158.
  5. And this is where I closed my trade at 1.3200 for 42 pips

Do you see how easy it is to trade these candles? I really hope that you take this technique and use it to profit in the forex market, but before you do make sure you demo trade with it first. So that you can test it out in a risk free environment. Until next time.

Happy Trading,

Jason Madison

If you would like to learn about more patterns like these and how you can discover how you can learn the secrets to trading for a living then visit BeatWallStreetNow.com

Want to see what other traders are doing in real accounts? Check out Currensee. It's free.

Forex Daily Outlook – April 29 2010

Posted: 28 Apr 2010 02:00 PM PDT


Great news from the U.S. – Unemployment decrease and US Treasury Secretary Timothy Geithner’s testimony before the House Appropriations Committee, in Washington DC are at the front of the news today. Let see what else awaits us this day.

In the US, Unemployment Claims report, released weekly, shows a decrease in the number of expected claims filed by newly unemployed Americans from 456K to 442K. This is a positive direction for the U.S. market.

Later in the US, Natural Gas Storage, released weekly, demonstrates the number of cubic feet of natural gas held in underground storage is expected to drop from 73B to 70B. This could affect the Loonie currency.

Finally in the US, US Treasury Secretary Timothy Geithner testifies on the fiscal 2011 budget before the House Appropriations Committee, in Washington DC. The speech communicates the US President’s economic policies, and signal policy shifts to the public and to foreign governments.

In Canada, Mark Carney governor of Bank of Canada speaks before the Senate Committee on Banking, Trade and Commerce, in Ottawa. This could highly influence short term interest rates and currency rates.

For more on USD/CAD, read the Canadian dollar forecast.

In Europe, German Unemployment Change released monthly, shows an expected drop of 11000 from the previous drop of 31000. Let’s see what the actual figure will be.

Also in Europe, M3 Money Supply, released monthly, measuring the change in the total quantity of domestic currency in circulation and deposited in banks shows an expected rise from -0.4% to -0.1% and also Private Loans report measuring change in the total value of new loans issued to consumers and businesses in the private sector is expected a similar rise.

More from Europe, Jean-Claude Trichet the President of the European Central Bank speaks at the Economic Summit organized by the CESifo Group, in Munich. This could lead to change in short term interest and in the Euro currency.

For more on the Euro, read the EUR/USD forecast and Casey Stubbs' latest analysis.

In Great Britain, Nationwide House Price Index, released monthly, measuring the change in the selling price of homes with mortgages backed by Nationwide is expected to go down from 0.7% to 0.4% could indicate a slowing in the housing industry.

More in Great Britain, GfK Consumer Confidence, measuring the level of a diffusion index based on surveyed consumers, is expected to rise from -15 points to -14 points making room for careful optimism.

Read more about the Pound in the GBP/USD forecast.

In Australia, Housing Industry Association New Home Sales released monthly will probably remain around -5.2%.

For more on the Aussie, read the AUD/USD forecast.

In New Zeeland, Building Consents will probably remain around 5.9%.

In Japan, Household Spending is expected a positive increase from -0.5% to 0.7% shows a vibrant economic activity in the Japanese market.

Tokyo Core Consumer Price Index is expected to have a small drop from -1.8% to -2.0% although the National Core CPI is expected to remain -1.2% as in last month.

More from Japan, Preliminary Industrial Production shows a rise in the total inflation-adjusted value of output produced by manufacturers from -0.6% to 0.9%. Manufacturing Purchasing Managers’ Index is likely to remain in the neighborhood of 52.4 points.

Finally in Japan, Unemployment Rate is expected to remain 4.9%

That’s it for today. Happy forex trading!

Want to see what other traders are doing in real accounts? Check out Currensee. It's free.

Are you a forex winner? Show it

Posted: 28 Apr 2010 07:10 AM PDT


Registration to FXStreet’s Forex Trader of the Year contest ends at the end of Sunday, May 2nd. This contest is an excellent opportunity to show your skills, see what others are doing and also win prizes. No need to open a special account for the contest.

This is the fourth time that this contest is held. I find this fascinating as it promotes transparency in the sometimes mysterious forex industry. The prizes includes trips to Dubai, laptops, forex courses and more.

Over 1,000 have registered – most of them to contest with demo accounts. The contest with real accounts is more interesting as participants will act in a more serious manner with their real money. Both contests last more than 6 weeks, allowing both day traders and swing traders to fully express their trading skills.

Any forex trader can participate with his current account, and can only benefit from this contest. Here are all the details + registration options.
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