For those who have recently started following these posts, we are practicing Wayne’s strategy in preparation for the masterclass on the 8 August in Johannesburg, South Africa. The strategy focuses on separating price from market and using pivot points for support and resistance – why? Because these are the strategies employed by hedge funds and other smart money trading institutions. For the purpose of the current exercise, we are only focusing on price. When Wayne gets here on the 8th we will learn how to add market to the strategy and some other cool tricks of the trade. If you have not bought a ticket yet please go to www.handsfullofrands.com and click on booking.

Remember to read Kate’s post (http://forex.today/forex-major-currencies-outlook-july-26-2016/) on news everyday and to keep your calendar of risk events close at hand.

USD Scan
EURUSD: Daily oversold, H4 moving to overbought and H1 moving to overbought. If I was a bear, I would like to see an overbought H4 and H1 and then would look for an overbought M15 and M5 at resistance before selling. If I was a bull then I am waiting for an oversold H4 and H1 – once I see that I am waiting for an oversold M15 and M5 at support before I buy.

GBPUSD: Daily more down then up, H4 moving up, H1 moving up. If I was a bear, I would like to see an overbought H4 and H1 lined up with an overbought M15 and M5 at resistance. If I was a bull then I would like to see an oversold daily lined up with the lower time frames at support before buying.

USDJPY: Daily moving down, H4 oversold and H1 oversold. A bear is waiting for an overbought H4 and H1 and lining it up with an overbought M15 and M5 at resistance before selling. A bull would wait for an oversold M15 and M5 and buy at support – though that bull would make sure he/ she is aware that price on the daily time frame is moving down.

USDCHF: Daily is more up than down. Waiting for an overbought daily. H4 and H1 are near oversold so a bull could consider buying at support with an oversold M15 and M5 once H4 and H1 are oversold. A bear would wait for an overbought daily and then line up the lower time frame charts.

AUDUSD: Daily oversold, H4 and H1 approaching overbought. A bear might wait for H4 and H1 to be overbought and then sell at resistance with an overbought M15 and M5. A bull would wait for H1 and H4 to be oversold and then buy at support with an oversold M15 and M5.

NZDUSD: Daily oversold, H4 and H1 approaching overbought. A bear would wait for H4 and H1 to be overbought and then sell at resistance with an overbought M15 and M5. A bull would wait for an oversold H4 and H1 and then buy at support with an oversold M15 and M5.

USDCAD: Daily has just started crossing the 80 line with an overbought H4 and oversold H1. A bear would wait for an overbought H1 and sell at resistance with an overbought M15 and M5. A bull would wait for an oversold H4 and H1 and then if daily is still overbought, look at buying at support with an oversold M15 and M5.

Pyramid Trading

Remember if you caught the daily at start of a rise or fall then you could consider adding more positions on each overbought or oversold cycle on the lower time frame charts like we discussed in class on Sunday. Just make sure that price is moving in the same direction on all charts and that you only buy at support and sell at resistance.

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