This is a video summary of the Live Forex Trading Room session on November 20, 2007.

Today’s Summary, by Sunil Mangwani:

Its not necessarily every day that we get into a trade, nor do we need to enter a trade every day. We also have our share of losses. But for us, as long as we don’t have any formed confirmations based on technicals, we don’t enter into at trade. We spend the entire day here in the Live Trading Room analyzing the trades and different currencies using different tools to determine which phase of the price movement we are in.

Case in point, EUR/USD - for a couple of days now we have been looking for a Triangle Formation breakout on the H4 charts. We can see that the breakout took place to the upside - but the most important part, more so than the trade itself, is that we - and our members - are prepared. No matter which direction the breakout takes place in, we are ready with fixed targets, based on certain principles of Fibonacci Expansions which we use for targeting our Triangle setups. (more…)

This is a video summary of the Live Forex Trading Room session on October 29, 2007.

Today’s Summary, by Sunil Mangwani:

Mondays usually are slow days and we wait for the technicals to settle down before we think of following up with the last week’s trades or looking at intraday. But on Mondays we do look forward, as we get the technical setups for Gap Trading.

The gaps are not present on forex as much as other markets, as it is a continuous market, but on Mondays the market can open with a gap, and currencies will give you excellent setups. Gap trading techniques are very effective. Lets have a look at one of the currencies which gave us an excellent one today.

The NZD/USD gave us a gap, though not a very large one - usually the larger the gap, the larger the move. We wait for the market to come back down to fill the gap, and went in Short upon a Bearish Divergence, expecting the price to fill the gap, which it did. The gap turns into a kind of channel, and price found support at this level. A nice Short trade on the NZD/USD, without all that much effort, which is the main advantage of gap trading. (more…)

EUR/USD Technical View

Euro formed a inside bar yesterday after a mixed day when it moved lower in the first hours and managed to close a few points above the high at the end; so far today we’re getting nearer to the 1.4300 level and although the indicators on the daily charts have turned lower in an overbought area the trend still points north. Looking for important price levels, on the north side we aim for the YTD high at 1.4350 before possibly making a strong push towards the 1.4500 round number, both of these levels act as a target and as resistance levels to be aware of; conversely on the south side support is represented by the up sloping trendlines we have on our chart and Monday’s low at 1.4120 followed by the 1.4000 level.

Resistance Levels

• 1.4350 YTD High
• 1.4200- round number

Support Levels

• 1.3930 – September 13th high
• 1.3850 – July 24th High
• 1.3680 – April 27th High
• 1.3550 – June 5th High

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This is a video summary of the Live Forex Trading Room session on October 18, 2007.

Today’s Summary, by Sunil Mangwani:

There were no trades taken today, as the market was really not conducive to any sort of situations we were comfortable trading in. Instead, lets follow up with some of our previous trades that were in the running.

Lets start with our long term USD/JPY, which has gone wrong for our trade. We had been Long on the daily timeframe, based on the breakout of a Triangle Formation. The price did give us a decent move initially, due to whatever fundamental factors were in place, but has since made a turnaround. It went down and took out our trade. (more…)

This is a video summary of the Live Forex Trading Room session on October 12, 2007.

Today’s Summary, by Sunil Mangwani:

There are a couple of intraday trades which we will follow up today. As I have said before, the method of analysis is more important than the result of the trade. Mind you, the result better be good - we are here to make money after all. But if you know which techniques to apply to which situation, you are more than halfway through.

Every situation warrants a different tool and a different set of techniques, and traders must be aware of what is going on around them. That is what we practice here in the Live Trading Room - chart time, chart time, chart time! The more you do it, the more familiar you get with it, and results follow.

GBP/JPY on 30 minute timeframe gave us a Regular Bullish Divergence, with the price making lower lows, and stochastics (or any other oscillator) giving higher lows. According to our “Rules of Thumb”, this is a kind of divergence we label as a “Class A” divergence. This type of divergence warrants an aggressive trade. (more…)

This is a video summary of the Live Forex Trading Room session on October 11, 2007.

Today’s Summary, by Sunil Mangwani:

Lets go over a couple of situations demonstrating the use of the tools which we employ here in the FX Instructor Live Trading Room for our analysis. It is critical to know which of your trader tools to use in which situations. Getting a good result from your trade becomes secondary - if it is technically correct, you have done your job as a trader.

On the USD/CAD, 4h charts, we see a strong, consistent downtrend. For this situation - a strong existing trend - we look for Hidden Divergences. According to our “Rules of Thumb” for Divergences, we use Fibonacci Fans and Fibonacci Expansions to determine our entry points and targets, respectively.

So far prices are heading well into the range of our target and are still going strong. The point of this exercise is - we have been taking decent trades in the Live Trading Room, because we have been applying the right strategy for the right situation, according to our methodology. Any upwards pullback in such cases would be seen as simply an excuse for a better position.

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This is a video summary of the Live Forex Trading Room session on October 8, 2007.

Today’s Summary, by Sunil Mangwani:

Mondays are usually slow days and don’t really have too much movement. We are still waiting for the dust to settle from the opening of the trading week, and this time doesn’t usually give immediate trades.

Lets have a look at a couple of intraday setups that did fit into our desired patterns for an entry. We don’t enter into a trade until we see a technical pattern - something which conforms to our techniques, and lets us formulate a trading plan:

• Where to enter
• Where to exit
• Where we would take partial profits
• The amount of risk we will accept
• … and so on

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This is a video summary of the Live Forex Trading Room session on October 3, 2007.

Today’s Summary, by Sunil Mangwani:

Two trades today worth mentioning, taken in the Live Trading Room by ourselves and our subscribers. Both based on Divergences.

I want to go over the procedures we follow in the room, and the different methods we use to confirm the price action. As I mentioned before, we do not lay too much emphasis on the indicators - we concentrate on price action. Price action is never random - it always leaves its clues, and its up to YOU to decipher them.

We noticed a Hidden Bullish Divergence on GBP/JPY 30 min charts - price was forming higher lows, and stochastics lower lows. A classical example of a Hidden Bullish Divergence. We can use a lot of different tools to confirm our trade. In this case we used an Andrew’s Pitchfork plotted in a different way. When price came down and found support at the lower line of the pitchfork, this was the signal for our entry.

For this Hidden Divergence trade, where do our targets lie? We used Fibonaci Expansions to find out. The 127% level was the area where the price stopped exactly. Many ways to skin a cat, as they say, but all of them very effective. 150 points of profit on GBP/JPY when the trade completed. An excellent trade.

The other trade which we are still in the process of observing is the CAD/USD. We have been looking at it with a Bullish bias for some time now, waiting for price to give us a confirmation. The trigger for our trade was a similar Hidden Bullish Divergence - higher lows in price, lower lows in stochastics. In this case, we used Fibonacci Fans to confirm the support level for our Hidden Divergence. It is an excellent trigger for the trade.

One of the supports for the fans was also created by a Regular Bullish Divergence. This is one of the situations where you have a lot of odds going in your favor. We advocate aggressive trades in this case - enter as soon as you get a confirmation, jump into the trade, and start taking profits. This does not mean you are not confident about your system - with an aggressive trade, you are jumping in the market, and taking your profits because you KNOW the trade is going to be good. Lock in your profits and wait for price to move further. We remain confident on this trade and expect the market to go higher, with two different Fibonacci tools giving good targets.

One thing I want to touch on before I close - on USD/JPY, we have been looking at a breakout from a Symmetrical Triangle on the daily charts. We are expecting longish moves on this pair, and were waiting for confirmations to enter into a Long trade. We will follow this pair in our subsequent recaps.
Enjoy the video!

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This is a video summary of the Live Forex Trading Room session on September 27, 2007.

Today’s Summary, by Sunil Mangwani:

Good day today, with several good moves and great trades. Lets start right off with continuing where yesterday’s recap left off.

The GBP/USD has been Long into a trade since yesterday, based on our Divergence strategy. The price went up and reached our Fibonacci targets exactly as we estimated. The fib ratios and systems we use are very, very effective. Price paused at the 127% fib retracement level, and went up to the 161.8% level, where we closed off our trade for a profit of about 170 points. An excellent trade.

On the intraday basis, we had another trade on the EUR/USD. We went Long at a Hidden Diverence - higher lows on price, double bottoms on stochastics. This Hidden Divergence is supported by Fibonacci Fans, and we calculate our targets based on Fibonacci Expansions. You can see the accuracy of this long move up - price stopped right at the expansion level of 127%. Another excellent trade for about 50 points.

On the intraday basis as well, on GBP/JPY we were looking at a Triangle Break. We had plotted a Triangle on the 4h charts and were waiting for a break based on our Rules of Thumb for Triangle formations. Another effective trade of about 150 points. An excellent trade for our students and instructors.

I also want to show the effectiveness of our custom FXI Pivots indicator, usable on both Daily and Weekly periods. In this case we are using it on Weekly data, and it has proven very effective. The levels of support and resistance and the range for the week give us signals to enter a trade on the EUR/CHF, for a profit of about 120 points. As one of our members put it - a “walk in the park”.

All in all, an excellent day more than compensating for several slow days.Enjoy the video and see you next time at our Live Forex Trading Room!

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This is a video summary of the Live Forex Trading Room session on September 25, 2007.

Today’s Summary, by Sunil Mangwani:

Not a very big day today. A slow moving market, not giving us much to do today, except follow up some patterns from yesterday and intraday trades which we were watching.

Following up on the bearish Wolfe Wave on GBP/USD which we observed on the 4h charts yesterday, the price did move into a bearish mode, but today due to the fundamental news releases today, the GBP strengthened against the USD, causing this pair to move up. We are still looking for Short trades, and are expecting the bearish Wolfe Wave pattern to complete.

We had a Triangle Breakout on the GBP/JPY, though the trade was not taken. We were looking for Shorts on this one, though the fundamental news did drive the market up a little. We will plan our trade based on Triangle targets according to the Rules of Thumb for the Triangle strategies which we employ in our Live Trading Room. Lets see how this goes.

The only trade we took today was a Short trade on CAD/USD. We had a Triangle Breakout, and based on the aforementioned Rules of Thumb for Triangle setups, we are using a local support line as our first target. Another reason we are interested in this trade were the excellent discussions we had today in between observing the market.

After our lessons on Position Sizing, Money Management, Leverage, Margins, and other topics, this trade was taken based the principles we taught - it proved to be a good example of how one should trade, manage a trading plan, use leverage, margins, and position sizing. We will be following up the trade with our subscribers, and taking profits, as the market gives them.Enjoy the video and see you next time at our Live Forex Trading Room!

Click here to view higher quality versions of our past Live Trading Room summaries on our forums.