My Millionaire Goal

Chart 1 (GBPUSD 15 Mar M15)

Chart 2 (GBPUSD 15 Mar M1)

Chart 1 above shows GBPUSD on a 15 minutes timeframe. We can see that Bar A is a strong bullish candle that broke out of a trading range. However, the next bar, Bar B is a small reversal candle. This suggests that the bullishness may not continue. In addition, there is also MACD Divergence.

We can enter this setup by selling one tick below Bar B, with stop loss of one tick above Bar B. However, the next bar, Bar C is an outside bar that broke above and below Bar B. If it broke below Bar B first, the stop loss would have been triggered, resulting in a loss. However, a look at the next chart (one minute chart) reveals that GBPUSD broke above Bar B BEFORE breaking below it. This further raised the probability of a successful bearish trade since more bulls will be trapped by Bar C’s initial bullish breakout.

If you’ve been following my posts, you’ll know that I’m quite a fan of price action lately… and I’m not alone… Al Brooks is one of the main person I’m learning from…

I did some Google-ing and found that he has quite a fan-base… found some articles and presentations by him… downloaded them from these two forums… take a look if you are interested in price action as well…

http://www.traderslaboratory.com/forums/f104/futures-i-trade-show-brooks-book-6008.html

http://www.brookspriceaction.com/

btw, I entered my first real forex trade yesterday… made a small profit…

First Real Trade

1. MACD Divergence
2. Fibo 61.8
3. Small reversal bar near the high of a breakout bar

I probably won’t be posting my future trades here… unless there’s something to mention about that trade…

EURJPY 12 Mar

Here’s my interpretation of price action for the chart above:

1. Bar A seems to suggest a bear reversal, which was supported by MACD divergence and resistance at the Fibo 50 level.
2. The next bar, Bar B broke below the low of Bar A. In fact, it broke below the low of the previous 5 bars, further lending support to the idea of a bearish reversal. It also suggests that the breakout at Bar A is a failed breakout.
3. Yet, by the close of Bar B, a totally different picture emerge. The bulls fought back and managed to close the bar near the high. This suggest that a failed failure (a failure of a failed breakout) might be happening. A failed failure is a very reliable signal and in this case, we expect many bears to be trapped.
4. The next bar had the same high as bar B.
5. Eventually, Bar C broke above the matching high of its previous 2 bars. 2 matching highs is actually equivalent to a double top on a lower time frame. Breaking above this double top makes Bar C the perfect signal to enter long.