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Hi there, my Fellow Traders,
Hope you are all enjoying the weekend. Yesterday,I missed approximately 65 pips due to a forex

workshop I was engaged in. Sorry,green pips, gotta fufill my part of my passion for

teaching.Anyways, hope cremeche and the rest of the guys took advantage of that news trade.

For the news traders out there, they could explain that sweet price movement to US

CPI(Consumer Price Index) that came out less than expectations(negative for the US dollar). CPI

is like THE INFLATION RATE OF THE NATION. If it came out lower than expectation, that means

the US might likely lower interest rates for growth,and also indirectly lower their unemployment

rates too.The low interest rate expectation would trigger the news traders to SELL DOLLARS,

and in this case, BUY GBP. Demand for GBP made it rise to more than 65 pips.

For the technical analysts,we saw an ASCENDING TRIANGLE (TREND REVERSAL PATTERN)

IN A DOWNTREND, WHICH FORETOLD A BULLISH TREND TO THE UPSIDE. The chart

pattern(ascending triangle) and the price projection calculation was tied together, to bring about

our final target point of 2.0375, which is 65 pips,$65 mini, $650 standard account). You could

see how the CHART PATTERN RECOGNITION AND PRICE PROJECTION TECHNIQUE could

have been used to grab some pips off the table?
The sharp traders could have put in a SELL STOP some pips below my projected point(2.0375)

to catch the aftermath of price as it was going down, back to whence it came.

2.0289-2.0224=0.0065
2.0310+0.0065=2.0375(final target point)




CANDLE PATTERN ANALYSIS
A Japanese candle pattern is a pyschological depiction of traders' mentality at the time.It vividly

shows the actions of the traders as time unfolds in the market. The mere fact that humans react

consinstently during similar situations makes candle pattern analysis work.
A Japanese candle pattern can consist of a single candlestick line or be a combination of

multiple lines, normally never more than five. While most candle patterns are used to determine

reversal points in the market, there are a few that are used to determine trend continuation. They

are referred to as reversal and continuation patterns.

A reversal candle pattern is a combination of Japanese candlesticks that normally indicate a

reversal of the trend. One serious consideration that must be used to help identify patterns as

being either bullish or bearish is the trend of the market PREceeding the pattern.

You cannot have a bullish reversal pattern in an uptrend. You can have a series of candlesticks

that resemble the bullish pattern, BUT IF the trend is up, it is not a bullish Japanese pattern.

Bullish reversal means the trend(direction of price) is now reversing to the bullish(higher) side.

It is used in a DOWNTREND.

Likewise you cannot have a bearish reversal candle pattern in a downtrend. It means the

trend(direction of price) is now reversing to the bearish side(lower side). It is used in an

UPTREND.

Direction of the price(trend) is either bullish(going up) or bearish (going down) or

range(sideways).

Dark Cloud Cover
This is a two-day reversal pattern that only has bearish signal. The first day of this pattern is a

long whitecandlestick. This reflects the current trend of the market and helps confirm the

uptrend to the traders. The next candle OPENS above the high price of the previous candle,

again adding to the bullishness.

However, trading for the rest of the day is lower with a CLOSE price at least below the midpoint

of the body of the first candle.

This is a significant blow to the bullish mentality and will force many to exit the market. Since the

CLOSE price is below the OPEN price on the second candle, the body is black. This is the dark

cloud reffered to in the name- DARK CLOUD COVER.

SEE BELOW




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