This is a video summary of the Live Forex Trading Room session on October 2, 2007.

Today’s Summary, by Sunil Mangwani:

One excellent trade, one wrong trade, and one non-conforming trade today.

Lets have a look at GBP/JPY, on the intraday charts. This is our “excellent” trade. This is the kind of Bullish Divergence on which one can take aggressive entries - its a so-called Class A Divergence, giving very strong signals with a higher low on Stochastics, starting in the oversold region, and lower lows on Price. This is an excellent confirmation that momentum has definitely changed towards the upside.

We use a double confirmation in Divergence-based trading - Fibonacci Retracement projections to give us an estimate of the targets, with a target at 161% level at 236.25. This was an excellent trade of about 95 points of profit. More importantly, this was followed up step-by-step with our money management strategies.

There are more than one ways to skin a cat, as they say - and more than one way of following money management principles, which ever methods are most comfortable for the trader. We went with the ones most comfortable with us. Profits may be less than the trade’s full potential, but we can feel confident that we are protecting ourselves from losses at every moment of the trade, and are totally in control of our equity.

The advantage of the Live Trading Room is that trades in progress are observed and managed together with our students - everyone sees what we do and hears what we think. Nobody trades alone.

Next lets go over the one trade that went wrong. On the USD/CAD, we identified a Bearish Wolfe Wave. It is a 5 point chart pattern, and the market fit the setup perfectly. We expected prices to drop to the line 1-4’s target, but it did not, and went up to stop us out. You win some, you lose some. Losses are just a part of trading, and are to be expected.

We were also looking at the USD/JPY to go Long, and on the 30 minute charts we saw a Bullish Hidden Divergence. We were expecting price to go up, but it did not yet confirm our entry of a trendline break on the upside. We expect the entry should materialize some time during the Asian or early London session on Wednesday.Enjoy the video!

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This is a video summary of the Live Forex Trading Room session on October 1, 2007.

Today’s Summary, by Sunil Mangwani:

Mondays are usually slow days, since it takes a bit of time for the technicals to conform, or as we say, the dust to settle down after the weekend openings. Not many trades taken, though we did have two good ones today.

On the USD/JPY, we had an excellent Bullish Wolfe Wave on 30 minute charts, which was identified by one of our members. We were thinking of going Long on this pair, and the Wolfe Wave only reinforced our confirmation. Once price satisfied all the Wolfe Wave conditions, the expected target where price should go up to is normally the line you plot between points 1 and 4. Its very reliable. This one gave us an excellent trade of about 90 points.

The best part about Wolfe Waves is that the entries, stops, and targets are completely pre-defined. Stops should be placed below the lows of point 5, entries are taken when price allies ahead of point 5, the target, as mentioned earlier, as at break of line 1-4.

The second trade we took today is on the GBP/USD, observing a Bearish Divergence on the 4h charts. This was one trade taken as an examples of how we enter a Divergence aggressively, what are the best places for entering a divergence, what gives the confirmations, etc.. We use a lot of fibs and trendlines. This was a trade taken step by step by our subscribers. We were targeting about 50 points of profit, but it went beyond our targets, netting about 70 points.

Not a bad start for the week! Enjoy the video!

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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.