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Hello students and traders, this is Joshua Martinez from Market Traders Institue and I wanna go ahead and say thank you
to each and everyone of you for allowing me to be a part of your continuing education growth
Some of you may know me as FX Pathfinder in the Forex world
but today we are going to be discussing the Euro, US Dollar, and the Great Britain Pound US Dollar Currency Pairs.
Overall if you can get a pen and a piece of paper your going to want to take notes
and we are going to be discussing and showing some back tested results here
so to make sure that were are trading responsibility.
Okay, without further ado let's go and get started. In front of us is our Euro / US Dollar one hour timeframe.
What you see here, this the MTI 1.0 charting software.
At the bottom you see time and date on the right hand side you see the actual price point
of the Great British Pound traded against US dollar.
What this means is for every one Great British Pound you have it equals to $1.53 U.S.
or for every $1.53 U.S. that you have that is equivalent to one great British Pound.
Well, what we have learned here at Market Traders Institute over the years analyzing the Foreign Exchange.
That there are large movements such as this low... and this high and then there is smaller movements such as this high and this low.
Then there are larger movements such as this low to this high and then there is smaller movements such this high to this low.
So the question is, what causes these markets to begin to have large ranges or larger moves
and shorten moves or shorter ranges. Well that's where the London Daybreak came from and I want to go ahead and explain to you what that means.
there's three major sessions throughout a 24-hour period trading in the foreign exchange.
You have the Asian session, the European session and the U.S. session.
What we discovered is during the European session which is from 3 a.m. Eastern Time to 11:00 am Eastern time.
We see the largest movement because it's been stated
and said that up to 75 percent of all Forex transactions are taking place during the European session.
Well be that as it may, what I need everybody to understand and believe in
firmly is that the market does not move in a straight line.
The market will enjoy to move, making higher highs & higher lows,
higher highs & higher lows hence making a wave
in a uptrend or making lower lows lower highs
it downtrend. Well what we have discovered because of so many
so much transactions or monies taken place
I traded back for during the European session. The highs and the lows
occur starting at 3 a.m.
Eastern Time and ending around it 11
a.m. Eastern Time 12 p.m. Eastern Time
so we have about a 8 to 9 hour window
of overall directional movement. Let me go ahead and show you exactly what I mean
to give you an idea of how we're going to take advantage of this market
it's pretty neat so let's go ahead at first so you and identified that
and make it make sure it's agreeable that this is
the market making higher highs and higher lows higher highs and higher lows
on the way up toward the north. Well if I go ahead and right click
and I find the lows and highs and I
discover what time it is. Eatch what happens
take a look at this on April 24 2013
at 3am eastern time the market formed a low
and then rally towards the nortk like so. Then
on April the 5th at 3am
eastern time the market formed a low and rallied towards the north
like so, then on
the 8th after the weekend
April the 8th at 3 a.m. Eastern time the market formed a high and then began to fall
and then on April the 9th the market formed a low
began to rally and that brings us to these dates on April the 10th
at 3:00 am Eastern time the market formed a high. If we connect these dots
we can begin to see that look... higher highs
higher lows, higher highs, higher lows, these markets
are forming the highs and the lows right up to 3 a.m.
open of the European session which we're gonna look to take advantage of
now here's the question: If the markets going to form
the low or the high of the day during the 3 a.m. open
when will form its opposite low or opposite high?
Well that's when the session closes. Now
here's 12 o'clock for example here's the low at 3:00 am
or clocked at 12 o'clock noon this when would look to close out of our trades.
well the market began to rally up towards the north and move
165 pips up or bullish
well the following day on the 5th we take a look at 12 o'clock 11 o'clock
We can see that the market right here
the market ended up closing, our overall bullish movement was a 165
pips towards the north. Then we'll take a look after the weekend on the
8th at 3 o'clock we look at the European close at 11 o'clock 12 o'clock
right here this was the close. What we begin to see is
at 3 a.m. Eastern Time the market's beginning to form a high and low
and then the opposite higher low of the day forms around 11 or 12
that gives us a huge competitive edge of the Forex Trader
knowing when to buy and when to sell. Well let me show you
exactly what I mean. It's 3 clock in the morning
3 a.m. Eastern Time right here. The market
has already begun to fall bearhish towards the south
the Big Bearish drop has already took place
and we know that I low or high begins to form right at three o'clock in the morning
or the European session open
now we're just looking for a reason to buy
this market or bullish candlestick formation
or bullish candlestick formation. This is a low we have one
two counts to the left and one two counts to the right hence it's a low
to left to right getting us a reason or an opportunity to buy this market
upwards towords the North plus we already
know that longterm that this market is a bullish trend
be that as it may we are look at the buying opportunity we look to buy
we hold our buy trade until
the close of the 11 o'clock candle making it
noon right here. This is the opposite, we are done trading for the day
the market moved bullish or upwards 145 pips over
we are going to write that out, plus 145 pips
bullish for this day. Well now we're done trading this is the beauty of being a Forex
day trader because you're getting out of the market within a few hours
okay so let's move on to the next day we're waiting, we're waiting, we're
waiting, we're waiting, we're waiting
I here's one o'clock in the morning
and here's our 3 o'clock in the morning right here 3 o'clock
now were saying to ourselves okay do we look to buy or do we look to sell
well the market already had a bearish drop
47 pips, we are looking for the low to form because the markets making higher highs
higher lows. Here is wonderful bullish candlestick formation
of which is a reason to buy the market so we enter and a buy
bullish going up, we hold onto our position until when?
Until the close at eleven o'clock candle which is right here
closed at 11 O'Clock candle 11 a.m. Eastern Time, we are out
and what ends up happening. Well we get the opportunity to
close out of our position for a hundred pips
plus 100 pips. Okay, now we're done trading
we just wait for the following day, the next three o'clock open
now the weekend came, now let's go ahead a find 3....excuse me.. 3 O'clock
towards the North and here's the deal, here is where it comes tricky because its 2 o'clock in the morning
now's its 3 o'clock. we say well as the market gonna go up again
is the market going to go down again well the market only fell bearish 50 pips
but also rally bullish 29 pips
the big question is it gonna go up or is it gonna go down and this scenario is
really simple will teach using ah
the latest candlestick formation and this latest candlestick formation as the
engulfing bearish candlestick
right at 3 O'Clock hence the market's going to look to drop or fall bearish
this being the high, and we hold our south position toward the south
till 11 o'clock or 12 o'clock here is the close 11 o'clock right there at 11 a.m. Eastern Time
we close our position and this overall sell trade give us a 57 pip
plus 57 pip bearish movement toward the south, a truly really really straight forward concept
really not too confusing to listen, all you do is get up at 3 o'clock in the morning
now here is the deal, is the market gonna keep going down or keep going up
well we are in a bullish trend the market is making higher highs and higher lows
we formed a low yesterday now we are looking to buy, well these are tweezer bottoms
in which in a case of future bullish movement hits another candlestick formation
this the reason to buy the market towards the north, well the market begans to rally
towards the North, all we do is hold onto our position
until the close of the 11 o'clock candlestick formation
right there, this is the close. So we are out of the trade
and this gave us an overall buy of 53 pips, so plus 53 pips....plus 53 pips...
and what's going on here is the markets moving at Fibonacci sequence
is a really really neat and straight forward concept here
ah here's the deal. Now this market is at 3 o'clock
this is a tricky one, cause it is 3 o'clock right here
3 a.m. eastern time this morning April the 10th and the question is
do we buy, or do we sell, do we buy, do we sell or what are we waiting for? The next candlestick formation!
There is the engulfing bearish candlestick or even the evening star deciding this decision
this causes a reason to sell this market towards the south
unless a bullish candlestick formation forms, we are looking to sell.
Did we pick the right direction? Let's see what happens. I do not know if we picked the right direction,
and here we are at the close of 12 O'Clock, 11 o'clock candlestick making it 12 right there
and we ended up are profiting
only 11 pips today plus eleven. The bottom line is this: there's no denying
that three clock in the morning
the opening of the European session, the market is going to break out in one
direction either bullish or bearish
we can see here that last 1,2,3,4,
5 days worth of trading we were able to take advantage of these highs and lows so 145 pips
plus 100, plus 57, plus 53
plus 11 pips, this overall equals a
plus net of 366 pips
if you trade $10 a pip or a standard lot
in the last five days worth of trading
you're looking at $3,660. U.S. dollars at a standard lot position.
This is FX Pathfinder from Market Traders Institute, I wanna go ahead and
say thank you to each and every one of you for allowing me to become part of your continued education growth
and if you have any questions please
be so kind to go to ahead and contact us here we will be more than happy
to explain further detail, using our fibonacci's
will only make this better! This is FX Pathfinder.