South African students are working hard in preparation for the Wayne McDonell Masterclass on the 8 August 2016 at GFI Sandton. Students have been attending a weekend classes to learn the strategy and understand how to apply Wayne’s simple approach to trading forex. At this last weekend’s class we discussed trapping price and having a plan for future trading based on lining up stochastic cycles on Daily, H4 and H1. A lot of traders struggle because they open a chart and have a need to trade right away, not realizing that the moves they are seeing in the market should have been identified earlier so that they were prepared and well planned for their trade strategy. Each day this week we are going to identify pairs where we see future opportunities and add these to our watch list. We are then going to continue checking on these pairs until they fall into our trap and meet all our requirements for pulling the trigger. Please remember that until we are fully au fait with the strategy we are going to practice on a demo account. We are going to give ourselves the best opportunity to learn without the stress of losing money and we will only go live once we feel confident in our ability to trade this strategy successfully with significant evidence that we have been consistent in our analysis, trade execution, risk management and PnL. Best of pips to you all!

GBPUSD Daily

Daily stochastic is moving up. Market is moving down. Price is currently at MM2. Let us look at H4 and H1 for more information. H4 stochastic is bearish. Market indicated some bullish moves though is currently flat. Price is currently at resistance. Let's look at H1 for more information. H1 Stochastic is above 50 and pointing down. Market is also bearish. If you are a bull and want to line up H4 and H1 with daily then wait for an oversold stochastic on H4 and H1. Bears would look to sell at resistance.

EURUSD Daily

Daily stochastic is flat though below the 50 line. Price is currently at the WPP. Market is bearish indicating that we should look for selling opportunities on H4 and H1. H4 stochastic is approaching oversold though it's not fully within oversold territory which indicates price is bearish. Our market is also bearish. Price came off WM2 during the Asian session and is currently at the weekly central pivot. We now need to look at our H1 chart to investigate further. H1 stochastic is overbought, market is bearish and we are currently at resistance (weekly and daily central pivot). Bears are going to look to sell here. If you are a bull on this pair and wanting to take advantage of the H4 stochastic then you either bought when the pair opened at WM2 during the Asian session or you are going to wait for the next oversold cycle on the H1 time frame so you can line up your H4 with your H1. When this happens identify support before pulling the trigger.

NZDUSD Daily

Stochastic is moving down, though is approaching the 50 line. MACD is above zero indicating a bullish market, though has crossed indicating a slowdown of trend. Bulls bought at the MPP during the Asian session. Let's look at H4 for more info. H4 Stochastic is very much oversold with a bearish market. While this pair could continue sitting in oversold if I was going to sell this I would wait for an overbought H4 stochastic. Let's look at H1 for more info. H1 Stochastic has crossed the 20 line though we do have a bearish market. Looking at MACD the trend looks like it is slowing down. With both H4 and H1 oversold and with the pair currently at support, and not having broken support, a bull may want to buy at support with the plan of the H1 stochastic pulling the H4 stochastic up. A bear would look at waiting for an overbought H4 and H1 stochastic and then looking for resistance.

4 thoughts on “USD Pairs watch list – lining up stochastic cycles 18 July”

  1. Maryna says:

    Hey Ryan, pit to hear that Wayne is only going to JHB as he has many followers in Cape Town as well. All the best!

    1. Ryan Gandalf van Jaarsveld says:

      Come to Joburg for the day – check out http://www.handsfullofrands.com for more info

  2. Maryna says:

    Won’t work with 56 of us in Cape Town flying to JHB just for 1 day and the event not marketed well at all. Not your fault though, so enjoy it!

    1. Ryan Gandalf van Jaarsveld says:

      I organised the event and the target market was people who never knew who Wayne was – done in collaboration with Global Forex Institute… We have 100 people attending so far – pretty sure between now and the event we should hit 150/ 200… There may be a possibility of doing something in Cape Town while Wayne is here – can you send me your contact info [email protected]

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