Podcast:

In this video:

00:40  Reversal Patterns in your trading

02:14   Trading on continuation patterns quite a lot

02:56   Overall +1% up for the week

04:48   Made a 3.6 to 1 risk to reward trade on the daily charts

06:02   Seen some strength in the USD, Swiss Franc and GBP

 

Hi, in this video I’d like to talk about continuation patterns and reversal patterns so let’s start now.

Hi, it’s Andrew Mitchem here, the Forex Trading Coach.

 

Reversal and Continuation Patterns

Today is Friday, the 21st of June. And remember last week I said I was going to talk about continuation patterns or reversal patterns so that’s what I wanted to start with on today’s video. When I’m trading I’m looking for one or the other so in other words if we were in lets say in uptrend at the moment and we saw a pattern to go short and it looks like it’s an over-bought area and we’ll then looking after large uptrend to sell a currency that is what I call a reversal pattern. It looks quite dramatic on your charts because you’re finding that most people are buying a currency and then all of a sudden I’m entering a short position and taking that pattern. But I’m only taking that short position after I’ve got confirmation that it looks like the currency pair that I may have topped out and now it looks like that it’s going to reverse so that’s a reversal pattern.

The continuation patterns, probably a slightly safer pattern and it’s one that I have a couple other indicators and other things I’m looking for to backup the continuation pattern. But overall on a chart this is what we’re looking for.

Let’s say we were in a large uptrend and then we already had that pullback but that pullback goes only so far and so we’re getting like the pullback, say a retracement of the previous uptrend so the retracement back down after an uptrend. And then after we’ve had that pullback down again then what I’m looking at doing is seeing some form of pattern there some form of candle pattern and other indicators, maybe a support resistance bounce whatever it might be but primarily based on a candle pattern saying nows the time to go long again for buying that currency pair after it's had a pullback but bearing in mind that the overall direction has been up then it had a pullback and then we’re looking at going long again.

And so I trade those continuation patterns quite a lot. I find they’re very safe because it means you’re trading with the overall in this case uptrend but after we’ve had the pullback looking at going long again so you are trading with the predominant trend. But its two patterns that I trade I look for all the time, I also teach that on my course. So just wanted to let you be aware of the two types the reversal patterns and the continuation patterns. Two very, very powerful slightly different but very powerful setups to look out for on your charts.

1% account gain this week

On to my trades personally this week. I’ve had a slightly tougher week this week. Had some good trades and a few loosing trades. Overall I’m about +1% up for the week right now and I still have Friday to go, being Friday morning here in New Zealand, we still got the entire day to go. And I have taken quite a numbers of trades today. But overall for the week on my set and forget trades that all my clients get I’m up just over +1% for the week on closed out trades and on a EUR/GBP breakout system that I use, it's set just once a week, it’s a breakout system that’s part of my strategy. I’m up +1.5% on that so that’s a close at +1.5% for the week for a profitable week on that strategy.

But on my other charts on the few other daily charts I’ve taken and some four hourly and it’s a one hourly down around 1.5% for the week and so overall net I’m up just over +1% for the week on closed trades with behind me here a good number of trades open.