Stocks & Commodities V. 25:6 (12-14): Forex Focus by Brent Donnelly Access to foreign exchange trading has opened up exciting trading options for the retail trader. You can now trade alongside corporations and institutions in a highly liquid market that is global, traded around the clock, and highly leveraged. Before jumping into this market, however, we must understand the factors that affect the forex market. With that in mind, STOCKS & COMMODITIES has introduced Forex Focus to better prepare the retail trader to participate in the currency market. Position yourself in the foreign exchange market using a reliable chart pattern. A reliable trading pattern in foreign exchange markets is the false break and reverse, or slingshot reversal pattern. In this article I will introduce the slingshot reversal, discuss how the pattern is traded, and provide a recent example from the AUD/USD (Australian dollar) market. A slingshot reversal occurs when a major support is broken but the price does not hold and the market then reverses, going back up through the old support level. Here I am referring to a broken support but everything described also applies to the opposite formation, where resistance breaks and the rally fails and reverses back below the resistance. This pattern works so well because the downside break of the major technical level clears existing long positions and creates new weak shorts. The large number of breakout systems and momentum models in foreign exchange further enhances the reliability of the structure. The slingshot reversal pattern is not unique to forex markets, however. The pattern can be exploited profitably in other markets as well; entry/exit parameters need to be adjusted for other commodities, but the concepts are identical.

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Forex Focus: Determining The End Of The Trend by Jody Samuels One of the keys to doing well in the forex market is to apply reversal pattern and indicator tools to know when the trend is over and when the next one is starting. Heres how. Would you like to be able to target the end of a sequence so you dont end up holding the bag? Or would you rather continue to do what most novice traders pretend not to do, which is to buy highs and sell lows? In the 1930s, Ralph Nelson Elliott discovered that stock markets traded in repetitive cycles that were actually a reflection of the emotions of investors. By understanding Elliotts contributions depicting the psychological structure of market behavior and combining it with other patterns and indicators, we will be able to plan for the future and develop a framework for establishing positions before the market turns. In this article, we assume we have the following basic knowledge of Elliott wave theory, which is that markets move in impulsive five-wave sequences in the direction of trend and correct in one or more three-wave patterns in the opposite direction before resuming the trend. THE END OF THE TREND CHECKLIST Several techniques are used to pinpoint the end of a trend. We will present a checklist of six confirming methods, which when combined will impart the necessary confidence to plan the trade and trade the plan. The checklist includes: 1.) Channeling to target the end of a sequence The channeling technique is a useful tool for projecting the end of a trend-defining five-wave sequence. Elliott noted that trend moves are usually contained within parallel lines or channels. This channeling methodology is often used to delineate exhaustion zones, after which we would expect to see a trend reversal as long as the other confirmation signals are also present. It serves as an optimal timing guide, giving the trader a competitive edge.

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Discover a New Approach to Analyzing Price Fluctuations in the Foreign Exchange Market . . .

“Forex Wave Theory” provides spot currency speculators and commodity futures traders with an innovative new approach to analyzing price fluctuations in the foreign exchange.. .

Written by Jim Bickford, a successful veteran online spot currency trader, this expert financial tool explains the four most significant categories within technical analysis_pattern recognition, econometric models, crossover trading systems, and wave theory_and includes critical definitions of technical terms. . .

“Forex Wave Theory” examines in detail different length cycles of two through six waves, with special emphasis on their predictive reliability.. The book also converts raw security data (OHLC quotes) to swing data through the application of a refined minimum reversal algorithm.. .

Based on solid mathematical and statistical models, “Forex Wave Theory” is a highly visual resource that uses over 200 images to explore: . . Currency Markets_ Spot Currencies; Currency Futures. Technical Analysis_ Pattern Recognition; Econometric Models;. Crossover Trading Systems; Wave Theory. Reversal Charts_Point And Figure Charts; Renko Charts; Swing Charts . Brief History of Wave Theory_ Origin of Wave Theory; Gann Angles;. Kondratiev Wave; Elliott Wave Theory; Gartley Patterns; Goodman Swing. Count System . Two-Wave Cycles_Two-Wave Cycle Properties; Enhancing the Forecast. Three-Wave Cycles_Basic Three-Wave Cycle Types; Forecasting the. Third Wave. Four-Wave Cycles_Multi-Wave Cycle Names; Four-Wave Cycle. Properties. Five-Wave Cycles_Properties; Forecasting the Fifth Wave. Six-Wave Cycles_Properties; Forecastingthe Sixth Wave; Double-Wave. Forecasting. Advanced Topics_Data Operations; Swing Operations. .

This on-target reference also features instructive case studies of the author’s unique method, together with a wide range of important supplemental information covering ISO currency pairs, exchange rates, global banking hours, basic three-wave cycles, and related resources.. .

A vital tool for success in the currency market, “Forex Wave Theory” gives traders a powerful new method for analyzing fluctuations in the foreign exchange markets_and accurately determining market waves..

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