Review Of Strategic Tips on Forex Signals In Forex Forum

Discussion in 'Trading' started by forexgreenland, Oct 26, 2008.

  1. Helloo Folks,
    We thank God for bringing us to the begining of another brand new week and we give Him the

    glory in ALL things..

    This is Stallion,veteran forex trader and mentor. I would be reviewing strategic tips on how the major currency pairs can be milked. Though I specialize in gbpusd, other pairs would also be taken into consideration during our analysis.

    It has been theorized that your state of mind will dictate your trading methods. Experts in the field of trading psychology have pinpointed three main states of mind and how each has a direct effect on a trader's profitability.

    These three mind states are "having", "doing" and "being". Psychologists have noted that those new to trading start with a "having" state of mind. As they gain more experience, they move on to a "doing" state of mind. The pinnacle of profitability occurs when a trader moves into the last and final "being" frame of mind.



    The "Having" Mind Set
    A novice trader may focus primarily on profits. In this "having" state of mind, they are out of sync with the markets. They are blinded by their obsession to obtain the all mighty dollar and what it can afford them. Trading is not viewed as a job that must be mastered, but as a vehicle to escape from a world of mediocrity.

    Many traders are in the business to make money, as well as they should be. However, if they are blinded by greed, they tend to take uncalculated risks. Looking at the potential payoff without carefully calculating market trends and other factors is a recipe for disaster.

    It is impossible to graduate to a high performance level when you concentrate on "having" instead of how the game is won. If you trade in a "having" frame of mind, you may become frustrated when profits are not immediately forthcoming. With frustration comes a lack of focus. Without the ability to focus, you cannot gain knowledge from your experience on the trading field.

    Other negative consequences of this mindset are feelings of frustration and anger. Frustration stemming from a lack of expected profits and anger directed at oneself or the market in general. These adverse emotions will only cause further decline in profitability. Without witnessing gains from one's efforts, an individual may not give their best and may be tempted to "throw in the towel".



    The "Doing" State of Mind
    If an individual continues on to trade another day, they will eventually move from a "having" to a "doing" state of mind. Learning that there is more to trading than the amassing of money, a trader will turn their focus on learning new methods of trading and what does and doesn't work.

    This state of mind is still primarily centered on how to turn a profit. Although a "doing" mind state is essential to becoming a seasoned adept trader, the main focus is still short of the mark. It is crucial to know what works and what doesn't. However, a skilled trader will tell you there is more to the business then choosing one method and using it arbitrarily to make trades across the board.

    Becoming a trader of means requires not only a winning attitude, but also a fine honing of trading skills. To develop these skills, you must make trades using various methods under a wide spectrum of market conditions. Only then can you develop the needed intuition to master the art of trading.



    Pinnacle of Profitability: The "Being" State of Mind
    A successful trader almost instinctively knows how to make a trade using the best method available for the current market trend and/or condition. This ability does not occur overnight. It is only accomplished through perseverance, knowledge of various trading methods and learning which one works given a particular market condition.

    No trade is ever a "sure thing". However, a profitable synchronicity almost naturally occurs when you are faced with a potential trade, have a feel for the current market trends and conditions, and utilize the method best suited for a potential payoff. This "being" state of mind ultimately lends itself to long-term success in the high stakes of trading.


    Our last target on Friday (1.5905) was finally hit, which in itself , was the 60% SELL

    WINDOW of the previous trend..I know..I know...everyone says we should sell during price

    rallies( rise) when the trend is down but we bought...and 217 pips came out of that decision.
    Now as the time of writing,(5.50 GMT Sunday), price on the GBPUSD 15min closed on Friday

    with a bearish candle..
    Observe that that close(1.5903) was at the region of the 60% SELL WINDOW, which usually

    foretells a turnaround in price...which, in this case, pausing from its prevailing uptrend

    to a much probable downtrend.
    But the question is ''HOW FAR IS PRICE GOING ON ITS PERCIEVED BEARISH MOVEMENT?
    We've, to a considerable extent, determined the direction of GBPUSD on the 15 minute chart,

    as bearish...so now, we are looking at HOW FAR this bearish move might likely go..That is

    the essence of the CHART PATTERN RECOGNITION AND PRICE PROJECTION STRATEGY.
    That , my friends, is what we term the ''60% Beethoven Cantata in B Major''..
    Those numbers, 1-2-3 was observed to continue and recur upwards in the prevailing

    uptrend...so we extrapolate them on our next anticipated downtrend...

    [​IMG]

    High=1.6326-Low 1.5262=0.1064
    0.6*0.1064=0.06384(range)
    1.5262+0.06384=1.5900 ( 60% sell window).

    high 1.5943 - low 1.5747= 0.0196
    0.6*0.0196=0.01176(range)
    1.5747+0.01176=1.5865(60% window) 1st target to the downside..

    2nd target @ 1.5666...3rd target @ 1.5523....

    In less than 4 hours from now, the forex markets will open, with the Asian Session leading

    the pack..Only time would tell if our targets are hit...Remember there's no 100% perfection

    in the markets..Anything can happen..thats why proper risk management is important..
    Proper money management dictates we fix our stop loss above the high of 1.5943, when going

    short(selling).tHats like 40 pips above the close of 1.5903.
    A bearish gap to the downside might also likely form at the opening bell which shows

    oversold orders pouring in the markets..
    Please feel free to make any comments or ask questions..