So we're moving into the last day of this weeks session, and the use of
Vampire Trading Network, Inc. Custom Indicators has been reasonably good at predicting what was going to happen and where the immediate trend was going to take us. Patience is definitely a virtue when looking at immediate trends. One of the hardest trading techniques to acquire and practice is learning how not to trade. Emotion is an ENEMY. If you have predicted a pattern and it gets away from you NEVER chase it. I can not tell you how many times I have eliminated huge personal gains chasing after a trade only to get in on the pull back. As my Partner "Dr Bob" Gube-Zitrin always states to his students, "Plan to Trade, Trade to Plan". I was discussing with a VP of FX Solutions, the fact that I did not jump in on the run at 8:45 this morning. It had already pulled out of the station and there would be another 60 pips to be had,
IN HINDSIGHT, The candle accounted for 50 pips of the movement at that time, I could have been 30 pips in the hole. As you follow this Blog you will see that there are huge opportunities to be had, WAIT FOR THE PERFECT condition where probability is on your side.
AND REMEMBER, NO MATTER WHAT, EVERY TRADE IS A 50:50 PROPOSITION.
Trading on the 1 Hour time frame is dangerous and wrought with danger. The 1 Hour and timeframes below are very good indicators however to what is going on at the 4 hour time frame as is the Daily chart and indicator.
For the coming session, one thing can be gleaned immediately compared to the chart in the beginning of the week,
LOTS OF YELLOW. This is an indication of low volume and loss of momentum, and
a WARNING signal.
The VTN Foresight is showing that the 4 Hour wants to roll its potential back to a short, The 1 Hour is now over extended do to consolidation and is still above both the VTN Trend boundary at 1.2088 and the VRZ which is a caution zone of extreme resistance or Support indicated by the triple band of yellow. In short anything could happen at this point.
Let's set up for next week.
The daily has committed to a consolidation, as indicated by the close Bollinger bottom. This is great news for the coming because it means we will get Swing Trend indication soon for the next 300-500 PIPs.
Also the EURO attacked a MAJOR resistance trend set in early May. NOTE that we are well below the Trend boundary which is shown in Aqua at 1.2222. Typically, once the Bollinger closes the bottom of a trend the currency will rise to bounce off the other side. NOTE: this is a custom
Vampire Trading Network, Inc. indicator that is not reproducible in many charting packages but is available to you through
Subscription to our Vampire Trading Room, which offers 5 days of Webinars and a 24x5 live trading chat room where subscribers post trades in real time ONLY.
The 4 Hour chart, while it looks like the Bollinger has closed on top, it actually is still increasing and has potential, the red foresight means nothing as well because this candle is only 45 minutes old and could easily get a strong push with Euro news at at 2 and 2:45 AM as well as Cable news throughout the session.
Note, that while we have attacked major milestones in resistance, there is a huge amount left in the way and not much more room for the Daily to increase. The Stop and Reverse signal are also creeping into position which means we could go into consolidation until Sunday which would take pressure off tomorrow and set up a nice trading week next week.
The one hour like wise shows consolidation and is popping the SARs back and forth. This can again go either way, and while an hour or so ago was looking like we could go short, that would have been a bad move on an early entry.
REMEMBER that Patience is a Virtue.
The VTN Foresight is showing a want for returning to an immediate long trend.
But looking at the lower time frames we see that they are pulling over again, at least another cycle is do. There is also the fact that the trend is "Pinching" which in Vampire Trading Room lingo means DON'T TRADE until there is a commitment. AGAIN, this is all about maximizing your probability to place a successful trade.
AND REMEMBER, NO MATTER WHAT, EVERY TRADE IS A 50:50 PROPOSITION.
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