Forex Analysis For Week Of 1 August 2010

Forex Weekly Forecast for the week of 1 August 2010

Forex market analysis published on 12 June 2010. SPs are are SWING POINTS. These are prices at which I am looking for trade setups.

Downloads

This is the file library.  Any indicators or EAs that I think may assist you in your trading of my signals will be available for download here.  I have a fair amount of custom indicators and EAs written for my services.  You may share these indicators with whomever you wish as long as the indicator name, version and coding remains unchanged.

Money Management

Money Management 101 – Ebook

Money Management Video - Very basic money management video

Indicators

Trend Line Alerter – Sends an email and popup when price reaches xx pips from any trendline you wish.

EAs

Trailing Stop

London Breakout Trading

London Breakout Trading

Pairs: EURUSD, GBPUSD, GBPJPY

Time: 01:00 – 02:00 CT

Expire: Following day, when new signal is released.

Delivery: Dashboard (Notified via YM Only)

London Breakout trades are sent between 01:00 – 02:00 CT on days when the market has provided a favorable condition.  I look for a few different variables to line up, then send the signals if appropriate.  These signals always have at least a 1:1 risk to reward ratio.  I prefer to send the signals that have a much better return.  A typical signal will look like this:

Example 1:  LBO – Buy GBPUSD @ 1.3500  SL:  1.3400  TP: 1.3600

OR -

Example 2:  LBO – Buy GBPUSD @ 1.3500  SL: 1.3470  TP1: 1.3530  TP2:  1.3400  TP3: 1.3450

In the case of a multiple target signal, you are expected to move your SL to break even once target 1 is hit.  You are expected to move your SL to the T1 price once T2 is hit.

Many LBO trades will have Buy Stop and Sell Stop orders.  These are trades as a straddle.  However, you do not cancel the opposite trade until the trade which was picked up takes profit.  This gives you a much more advantageous edge.  If the side which is picked up stops out and the opposite side takes profit, you are almost at break even for that night.

With LBO trades, you are expected to manage your own risk, but I recommend never risking more than 1% of your account equity on a single LBO trade.  If you manage by leverage, I recommend never leveraging more than 2:1 on LBO trades.