Posts from — June 2009

TECHNICAL ANALYSIS – TRI STAR CANDLE STICK

•Direction:Bearish
•Type:Reversal
•Reliability:Moderate

Mike Haran, a full time trader and co-founder of www.fxsignaltrader.com, is very concerned with what is happening in the financial markets at the moment.

“I am very concerned at the moment, the DOW is looking like a collapse is very close.” After such a long move up, perhaps one of the greatest since records began, we are seeing a great deal of weakness and indecision.”
“I am a technical trader, everything is shown in the price action and price is the best indicator there is. Three Doji candle sticks in a row is something every trader loves especially on the day chart. This is what is happening on the DOW at the moment. It has also stopped at the .886fib level of the last swing. What I am expecting is a massive correction, possibly of the order of 2000 points or more. The DOW has made one of the longest moves up since records began from any bear crash. Strong reactions in any market provoke equally strong corrections. This market is no different, what I expect is a massive correction, maybe as much as 89% of the move up. If this breaks and I know it will, expect a lot of pain. I have no idea what the news to trigger this event will be. I am not clairvoyant or a prophet, I am just a student of the markets. A confirmation would be a long red candle tomorrow, 10th June 200; that would certainly clarify that a top was indeed formed. I like to predict the markets, but I trade according to very strict rules, a trader must trade what is in front of him, not what he believes. I use my own signals to generate a return of about 20% per month, trading nine currency pairs. Consistent results produce steady profit and that is what every trader desires.”

To see how Mike trades just go to www.fxsignaltrader.com

TRI STAR DOJI DEFINITION

After an established bull trend, three doji’s (open and close at identical price) occur on three consecutive trading days.

After a long up-trending market the appearance of three dojis suggests a great deal of indecision about the future direction of the market. Such signs of indecision often precede reversals.

The first doji day reveals that the market is indecisive after a long up trend. The second doji day further emphasizes market uncertainty; by the third doji day longs have clearly lost momentum and complete control of the market. Candlestick analysts will look for bearish moves in the following days.

The Bearish Tri Star pattern is very rare, but when it occurs it has significant top reversal pattern. A fourth day confirmation in the form of a large red candlestick is recommended to show that the actual up trend has reversed.

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Please Click To Enlarge Image

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Here is a little set up I see many times after days like today. What you are looking for is a strong directional move all day, almost a streak, the harder the better, 230 points on the GBPJPY is quite a move and at this point the market becomes seriously over sold. Now, look at the hour chart, what we are looking for is some key fib levels of the last swing 127, 162 are all good news. Now, wait till after the London close, and see if any of these levels are hit. If they are and we have a nice “00″ or “000″ in the area you are set to enter a trade.

Remember, after the London close and not before. The profit target is usually the 30% retrace of the whole move down, I use the 30% as I like to be sure of hitting it, 38.2% does work but I like a higher probability and the 30% works nicely. A nice trade with a 100 pips of profit although you might have to wait a while for it to come through. Beware of the “dead dog roll over” and set your stop up once the market has move 30-60 pip in your direction, don’t go too close, remember the market never goes in a straight line, unless you happen to be on the wrong side of it.

(From www.fxsignaltrader.com, great forex trading signal service)

Hi Fellow Traders,

We had a good day today, when markets get into a trend our
system is probably hard to beat, when markets range our
system tries to make the best of the situation, sometimes
we make a loss, sometimes a profit. We stick with the
signals because we know in the long run, come the end of the
month we will have grown our accounts. We have done this
every month consecutively for over 2 years now.

The purpose of this email is to keep you on the straight and
narrow, as subscribers or possible future subscribers we
want to make sure that you are achieving the success you
signed up for. We all want to be successful together.
Strange as it may seem, even when we have a great day like
today we must control our emotions, many traders do not
follow this principle and only believe they need to control
their downs – not true -

Today we made 949 points on the professional package and 559
on the Gold package. When we have days like this it is
absolutely critical that you don’t get emotional about it,
we had another day at the office, we followed the signals
and we took what the market gave us on the day. Pat yourself
on the back and say to yourself you did some great trading
BY FOLLOWING THE SIGNALS. That’s it, don’t go boasting to
friends and family, don’t go singing the praises from the
church steeple, just be content that you did a good job. If
you were following the suggested money management and only
putting at risk 3 to 4% of your account, then you will have
grown your account by 9.5%  today, well done.

Tomorrow we may have a loser, again, get into a routine of
starting and finishing each and every day in the same way.
Tomorrow congratulate yourself on following the signals
regardless of the outcome, you did your job. If you didn’t
follow the signals then give yourself a good roasting and
get your partner or someone who would delight in inflicting
some pain on you to give you a good slapping.

The system will work for you, but you need to make sure your
emotions are in check, if you lose control, your ability to
follow the signals will be severely compromised. All winning
traders control their emotions; this is what makes them
great traders. You have a winning strategy that will make
you into the great trader you have always aspired to be, do
your part and control your emotions and follow the signals
and we shall be toasting to our monthly success on the 30th
June 2009.

Please go to the training section of our website and watch
the “Trader Psychology – ”  training series of videos if you
feel that you are drifting.

http://www.fxsignaltrader.com/training.htm

Another great resource that I use, which made me into the
trader I am today, for which I am eternally grateful is
Emotional Freedom Techniques (EFT). Google it and keep a
very open mind to the techniques used. It will truly help
you in many areas of your life and you will wonder how you
ever got by without it.

Best regards, and good trading to you,

Bryan
a.k.a “TheDoctor”

Press Release: BRITISH INVENTOR CRACKS THE CURRENCY MARKETS

click on the above link