Forex weekly update

In the weekly chart both AUD/USD and GBP/JPY formed bullish hammer. For AUD/USD pair If the current support level prove invalid then .7677 will be next support and for the GBP/JPY pair 1.7961 will the next support.

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Select from the two

Very similar set ups but which set up will you choose and why?

Answers to the Questions

1. I select this stock because it is very active as you can see very high volume in the first three bars compare to the previous days first three candles volume.
2. I would be looking for short as the stock is showing weakness.
3. Initial stop would be above the inside bar.
4. First Partial at 161.8% extension.
5. I would exit my position when price close above the 10 SMA.
6. See my position size calculation post.

Trading questions

1.Why would you select this stock for your day trading?

2.What would you be looking to get short or long?

3.Where would you put the stop loss and why?

4.Where would you partial and why?

5.Where would you exit?

6.What would be your position size and why?

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Why you need a trading plan?

A trading plan should have complete sets of rules that cover every aspect of any trader's trading.

• What instrument (stock, forex, options, future, CFD etc) you want to trade and why? I trade stock and forex not because I like stock or forex market I have definite reasons to trade those, you need to know why you are trading individual stock not index?

• Which market (NYSE, NASDAQ etc) you want to trade?

• What is best time for you to trade why? (Suppose for forex London open is the best time to trade)

• How you will select a stock or a currency pair that will give you the best result.(I have 12 specific rules to select a stock that helps me a lot to avoid over trading)

• The maximum percentage you will risk on each trade. This most important for new trader to learn risk management. I follow three golden rules to manage my risk.

• How many lots/share you will trade per trade (position size).I always follow two different rules to know my position size.

• Which time frames you will look at. Time frame is very important aspect to any trading. I follow 5 and 15 minutes chart for equity .Any good set up will appear in any time frame but the point is exit will be different in different time frame.

• A trading plan will give you clear-cut entry strategy, where should you enter and why .My trading plan has eight specific entry strategy.

I think exit is the key to a successful trading plan. A exit strategy will show you where to exit and why. I use three different exit strategies.

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U turn

This set up works best when the U is small and volume above average. If U is too big i usually avoid that stock.

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What Happens If a Stock That I am Short Goes Bankrupt?

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Fibonacci Extensions Magic

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AUD/USD update 130 pips profit

My entry was based on candlestick patter and S&R play. Bearish tweezer top candlestick pattern is one of my favorite in forex,its very reliable.

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Waiting for the next move

If the pair break the support line i will go short,my stop loss will be 70 pips from my entry.

Building a Trading Model

Somebody Like You

Table of contents for the Parallel trading course

TABLE OF CONTENT

BASICS OF THE MARKET...............................................................................................................5
WHO ARE THE PLAYERS IN THE FINANCIAL MARKET?.....................................................5
HOW THE FINANCIAL MARKET WORKS...................................................................................6
WHY DO TRADERS LOOK FOR SMALL SPREADS?..................................................................6
PATTERN DAY TRADING MARGIN RULES...............................................................................7
UP TICK RULE ENDS ......................................................................................................................8
WHAT WAS THIS RULE?................................................................................................................8
TIME ZONE AND TRADING SESSIONS......................................................................................9
HOW TO USE THE TIME AND SALES WINDOW......................................................................12
POSITION SIZE CALCULATION..................................................................................................14
STOP-LOSS CALCULATION..........................................................................................................14
WHY POSITION SIZE IS SO IMPORTANT................................................................................17
ABANDON BABY ..............................................................................................................................26
DARK CLOUD COVER:....................................................................................................................27
DOJI....................................................................................................................................................27
ENGULFING.....................................................................................................................................28
EVENING STAR...............................................................................................................................28
HAMMER..........................................................................................................................................29
HANGING MAN...............................................................................................................................30
HARAMI............................................................................................................................................30
INVERTED HAMMER.....................................................................................................................31
STAR PATTERN...............................................................................................................................31
SHOOTING STAR............................................................................................................................31
SPINNING TOP................................................................................................................................32
THREE BLACK CROWS...................................................................................................................32
THREE WHITE SOLDERS..............................................................................................................33
THE SHADOW OF CANDLESTICKS (LONG WICK): ...............................................................33
TECHNICAL ANALYSIS.................................................................................................................34
WHAT IS RESISTANCE?................................................................................................................39
TRADING RULES............................................................................................................................42
TOP FIVE PATTERNS....................................................................................................................42
HEAD AND SHOULDER/INVERTED HEAD AND SHOULDER...............................................42
TRADING RULES............................................................................................................................44
DOUBLE BOTTOM/DOUBLE TOP .............................................................................................45
TRIANGLE........................................................................................................................................48
SYMMETRICAL TRIANGLE.........................................................................................................48
ASCENDING TRIANGLE...............................................................................................................49
DESCENDING TRIANGLE.............................................................................................................50
FLAG..................................................................................................................................................52
TECHNICAL INDICATORS AVAILABLE TO US......................................................................55
MOVING AVERAGE.......................................................................................................................59
FIBONACCI RETRACEMENT.......................................................................................................61
VOLUME...........................................................................................................................................62
GETTING STARTED......................................................................................................................64
WEBSITES........................................................................................................................................65
FREE SCREENERS..........................................................................................................................65
TRADING RULES AND SET-UPS................................................................................................69
SELECTION.....................................................................................................................................69
EXECUTION....................................................................................................................................69
ENTRY STRATEGY.......................................................................................................................69
EXIT STRATEGY............................................................................................................................70
GRADE A SET-UPS (1-7)...............................................................................................................70
PARALLEL SET-UP 1.....................................................................................................................70
PARALLEL SET-UP 2.....................................................................................................................74
PARALLEL SET-UP 3.....................................................................................................................78
PARALLEL SET-UP 4.....................................................................................................................81
PARALLEL SET-UP 5.....................................................................................................................88
PARALLEL SET-UP 6.....................................................................................................................89
PARALLEL SET-UP 7.....................................................................................................................96
GRADE B SET-UPS (8)...................................................................................................................99
PARALLEL SET-UP 8....................................................................................................................99
GRADE C SET-UPS (9-10)............................................................................................................104
PARALLEL SET-UP 9....................................................................................................................104
PARALLEL SET-UP 10..................................................................................................................106
FOREX..............................................................................................................................................108
BENEFITS OF FOREX TRADING...............................................................................................108
FOREX TRADING SET-UPS........................................................................................................109
SOME BASIC TERMS....................................................................................................................109
FOREX CONTRACT SIZE.............................................................................................................109
SOME IMPORTANT FUNDAMENTAL INDICATORS IN FOREX.......................................110
EUR/USD.........................................................................................................................................110
USD/JPY..........................................................................................................................................110
GBP/USD.........................................................................................................................................110
TRADING SUPPORT AND RESISTANCE.................................................................................111
SUPPORT AND RESISTANCE STOP LOSS METHOD...........................................................111
HOW TO TRADE TRIANGLE PATTERNS...............................................................................117
RISING WEDGE PATTERNS......................................................................................................119
ASCENDING CHANNEL PATTERN...........................................................................................120
WHAT TO LOOK FOR IN AN ONLINE FOREX FIRM...........................................................122
SUMMARY......................................................................................................................................123
TRADING JOURNAL....................................................................................................................123
HOW YOU WILL PREPARE YOURSELF..................................................................................124
SUMMARY.....................................................................................................................................124
GENERAL TRADING RULES......................................................................................................124
COMMON MISTAKES THAT UNSUCCESSFUL TRADERS MAKE.....................................125

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MY SECRETS OF DAY TRADING IN STOCKS

Price Action: Modern Tape Reading

Elements of Tape Reading

Discipline And Tape Reading