London started off kind of slow today and we bounced around a bit looking for strength versus weakness. Most of us were in some sort of a British Pound long from late in the pre-London session, but we were starting to see some clues of exhaustion, time to take some profit, or protect pips. Then we took notice of the GBP/JPY pair particularly starting to show short term MACD divergence pretty much exactly when it was hitting it’s Daily 200ema, previous swing high on the Daily chart, as well as the Weekly M4 reversal pivot point. While none of us wanted to pick a top, that divergence at that resistance was such a clue of a possible impending short trade plan, that any Lower High development on this short term chart was reason enough to give the short a shot with a higher high stop, 20 pips risk or so, targeting about a 40-50 pip move before we reached support again, and we also had British GDP approaching in a half hour or so. The EUR/GBP was also showing a double bottom at 90 cents, as even cable had a short term lower high. This was starting to smell of GBP sell off just before news. Just before the news came out we were 55 pips or so in profit on the GBP/JPY short, definitely protect break even at minimum as news could evaporate all of it, or even take some partial profit. Well the GDP came out negative and Whammo, British Pound ‘Everything’ plummeted 200 pips in no time at all. So what started out as a conservative lower high off resistance trade attempt, turned into a 300 pip trade by the end, or much more if you were in all the GBP pairs. Simply an amazing way to finish a fantastic week, and a reminder to all of us why you let profits run once you have break even or MAP (minimal acceptable performance 15-20 pips) locked in. You never know which trade will be the monster like this. Have a great weekend folks!

FXBootcamp London Currency Coach-
Christian Stephens

Today the EUR/GBP and GBP/CHF 2hr macd divergence we have seen for over a week finally was followed up by some lower highs on the EUR/GBP and higher lows on GBP/CHF. Hinting Strongly at minimum of a 21 ema pullback on these long term charts was about to occur. This meant essentially we had technical reasoning to go Long British Pound Sterling against all comers all night long at any support possible until either resistance was hit, or failure in the form of 1-2-3 pattern’s etc. There were high quality long entries on GBP/USD, GBP/CHF, GBP/JPY, and short on EUR/GBP well into the pre-London session. These parts all offered again high quality pullbacks as the London market opened around 8am London time. In this video I focus on just one of these pairings, the GBP/JPY. I show in detail the divergence we spoke of that led us to believe Sterling strength all night would be the theme, along with complete details on how we put together a ‘Reload’ of the GBP/JPY long off a double bottom 61/8% Fibonacci and other overlapping support. I also discuss how we planned our profit takes, and determine where this trade might go. Excellent night overall, nice GBP basket trades that really cleaned up tonight, could not ask for a better way to end the week.

FXBootcamp London Currency Coach-
Christian Stephens

Since the weekend I had spoken in length in the London FXBootcamp session about seriously developing 4hour MACD divergence on every Japanese Yen pairing I could pull up. About a third of the way into today’s London session we began to see hints of a change in direction, such as USD/JPY having an hourly lower high, then breaking it’s recent price trap’ support level in the 15m chart. In class we covered the trade plans for shorting the GBP/JPY, EUR/JPY, and USD/JPY, and any trader could have done the same on any or even a basket of JPY pairs. In this video however, I will cover just the GBP/JPY. I will discuss and show in detail what caused us to both look for the short ‘clue train’ in the first place, and ultimately the actual entry/trigger criteria we used to short the GBP/JPY , risking just 20 or so pips, amounting to a fairly painless ride to just over 100 pips, before offering another pullback for an additional 90 pips reload. Very nice trading session indeed for London, certainly well deserved after the choppy sessions we have seen of late in the London time frame.

FXBootcamp London Currency Coach-
Christian Stephens

Pressure on the US dollar kicked in to high gear during today’s New York session. Multiple dips on the EUR/USD currency pair offered long trade entry opportunities prior to the open of US equity market trading. Within minutes of the opening bell, comments by US Treasury secretary Geithner provided a boost that rocketed the euro through a level of resistance that hadn’t been breached since the start of the year. From entry [on a dip occurring thirty minutes prior to the open of the session], to exit [signaled by an extreme MACD cross], one trade setup produced a 120-pip profit.

Curt Wehrley
FX Bootcamp’s Quantitative Analyst

While we have enjoyed an extended ride back down from the recent high’s on the EUR/USD, today we open the London session showing very clear MACD histogram divergence with the current price action on a 15 minute chart, along with today’s M1 reversal pivot point, the 4 hour 200ema, and the daily 55ema. That is a lot of visual support plus divergence to see exactly at a major market open such as London. With that in mind we went ahead with the building of a low risk high reward, high probability trade plan for longing the EUR/USD. Trading it back at least to the next visual area of resistance around the hourly 21ema. In this video I break down how we built the plan, executed, and protected our pips all the way to our target, and then some.

FXBootcamp London Currency Coach-
Christian Stephens

Pre-London today finally began the bullish British Pound/USD move off support that the 4hour MACD divergence had predicted over the last couple of days, breaking a very definable price trap. Following this break however, we did not enjoy a pullback to the breakout point like we usually do. This unfortunately left some of the more conservative entrants out of the game. In this video I break down the trade in it’s entirety, including the initial setup/plan for the trade, along with the failed initial pullback, and how using very short term charts we were able to ‘insert’ our ‘reloads’ into the long side at several 1minute swing pullbacks, while price continued to ‘Ride the 5 ema’ on the 15minute chart all the way to our initial target of the R2 reversal pivot point. Then in the late London morning how we planned our continuation fibonacci entry onward into the London lunch. Very nice trade, especially if you traded not only the GBP/USD but a Pound basket.

FXBootcamp London Currency Coach-
Christian Stephens

The British Pound Sterling continued it’s slide throughout the pre-London, and into the London session itself. Although the short on the GBP/USD which many of us caught was the more desirable trend type trade, there was also a counter trend opportunity with a 55-100 pip possibility that presented itself while the GBP/USD pulled back throughout most of early London. While I normally do not like to illustrate an intraday counter trend trade, this one had a very little risk vs high reward setup, along with decent confirmation using shorter term charts. While the trade did not ultimately reach our final target, which would have been an ideal spot not only to take profit, but to re-short the GBP/USD, we still were able to bag 75-80 pips before seeing confirmation the move was over on the charts. Take what the markets give you!

FXBootcamp London Currency Coach-
Christian Stephens

NY offered a fantastic continuation on the Japanese Yen pairs yesterday. Asian session provided a pullback pretty much across the board to the 38.2 Fibonacci levels. At London open we found ourselves in what looked like a tone of consolidation, awaiting for any inch of info to tip us off. Sure enough we noticed a ‘Fib of a Fib’ or something I like to call a reverse fib take place as shown in this video. This reverse fib generally indicates weakness in the original direction. Using this clue we looked deeper into the 1hr, 4hr, and Daily charts for proper support & resistance. Then using short term confirmation (2m macd), it was just a matter of awaiting for a proper Fibonacci pullback entry on (insert any yen pair here) pair. What followed was an extremely quick 90-100 pips on several yen pairs for an initial risk of around 35 pips. Tonight was tough to pinpoint direction, no doubt. Proper trade planning off of one minor clue led to payday again however. Happy Thanksgiving this week folks!

FXBootcamp London Currency Coach-
Christian Stephens

After the Yen pairs retraced a bit from Thursday’s NY lows throughout Asia, we noticed some clues on the GBP/JPY that maybe the retracement was going to extend through London. Using some short term indicators as well as divergence gave us the clues and the price trap we needed. Using a simple 2 minute chart MACD cross, along with a Fibonacci retracement after the breakout/cross offered us the very repeatable low risk/high reward type setup that ultimately paid off in the form of around 190 pips depending on profit taking. 190 pips for a 30′ish pip original risk, not too shabby. Have a great weekend folks.

FXBootcamp London Currency Coach-
Christian Stephens

Quite an incredible rally we had in the stock markets yesterday NY afternoon. This caused quite a sweet rally in the Japanese Yen cross pairs throughout the end of the day, and a subsequent Asian fade back down afterwards. Once the Asian fade back to the 4hr 21ema and a Fibonacci level had been reached, London itself was left wondering what to do. In this video I show how we built a trade plan from the ground up on the EUR/JPY. All that was left to be done was WAIT for it. Capital preservation is goal number one, and if we did not get our setup entry clues, well no trade then. However, the macd divergence, and other clues in the video did not disappoint. After an hour of waiting for our confirmation it was a rather quick 130 ‘ish pip ride to the upside before hitting resistance and coming all the way back. This trade was available on all yen pairs as a basket, or any single one of choice. Tonight was not a night to chase price, but with a little patience and discipline a several hundred pip day was not all that difficult for one to achieve. Have a great day!

FXBootcamp London Currency Coach-
Christian Stephens