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FX Instructor Live Forex Trading Room Results | 10/30/2007
There were a couple of intraday trades today, which we will go over before following up on the long term trades which we are into up to now.
On the GBP/CHF we identified a Bearish Divergence, which contributed to a Short trade, as pointed out by one of our members. The price made higher highs, stochastics made lower highs, and the lower high on the stochastic was quite below the overbought level of 80. This means the momentum has been decreasing in this rally of price which gave us the second high. This signifies a change of trend. This was a nice divergence, and we went in according to our divergence trading rules.
We plotted our Fibonacci Fans, and also used other fib projections to get our targets for a technically correct and profitable trade.
On the GBP/JPY on the 1h charts, we identified a Bullish Hidden Divergence - price making higher lows, stochastics making lower lows, which signifies an uptrend approaching. This gives us a pullback into a trend. We entered the trade on a smaller timeframe, 15 minute charts, after identifying a Regular Bullish Divergence on this timeframe - the trigger we were looking for. Price was making lower lows, stochastics higher lows. We plotted our fib projections, and the price stopped exactly at the projected fib levels.
As we always say in the room - "tell me the fibs don't work!" If you just study the fibs and learn to apply them correctly, you will be miles ahead of other traders. This is the kind of situation which we look for - they really work!
On the EUR/JPY on the higher timeframes, we had discussed the Andrew's Pitchfork "flip technique", and were waiting for the price to come up to the upper median line of the APF - and the price crossed that level. This was a nice bullish trade which went pretty well, with price objectives reached.
On the GBP/USD, on the daily timeframe, we were studying a Bullish Flag Formation, which has been confirmed, with price breaking out of a bullish channel. We are still bullish on it, and expecting more upmoves yet to come. We will be following up on this trade in the daily recaps throughout the week to see where this trade will take us.
Enjoy the video!








