Let me say up front that if your wondering if there's a "Holy grail" of currency pairs there isn't.  I know that as traders we're all searching for an edge and it's natural to look for a pair that makes forex trading easier and more profitable. but… The reality is that most markets move in a similar path most of the time.

For example any pair that trades against the US dollar will tend to zig and zag at the same time more often then  not.  The only thing that will vary is the magnitude of the moves between some of these pairs.

There is one way to gain an edge…  It's to simply pick the pair with the lowest spreads. You see, if you save even one pip per trade trading the market with a smaller spread, that can add up greatly after a year.  Especially if your an active trader trading multiple lots.

One big mistake I see traders making is day trading the currency pairs that have big spreads of 4 pips or more.  Doing this really stacks the odds against you since you have to overcome a big spread just to make a relatively small profit.

The only time it's ok to trade the pairs with big spreads is when your swing trading and looking to bag at least 100 pips on  a trade.

One last thing you can do… Say you want to trade non US dollar pairs…  Research what pairs statistically have the largest daily range and trade only the pair with the biggest range.  This stacks the odds in your favor of walking away with more pips because much your success will be based on market follow through and momentum.

On the above example, I assumed you use a trend based system but…

What about counter-trend systems? In this case you would look for markets that have a smaller daily range.  The reason is that when there are small ranges you are less likely to get blown out of your counter trend trade by a run away trend.

Anyway… There are more strategies to share on this topic at a later date.

Hope this gives you some food for thought…

This is 20 years in the making…

I have to admit that trading currencies kicked my ass for the first 5 years and despite my best efforts I wasn't making any money.  It seemed that I would make some money over a few trades and then give all back a short time later.  I truly felt like a failure and that my dreams of financial independence were just a pipe dream.

Flash forward 20 years and its amazing what you learn when you spend thousands of hours studying  technical analysis and how the markets move and…  What you learn through placing hundreds and hundreds of real money trades in the forex, stocks, commodities and options markets.  Anyway…

If you've been with me anytime at all I don't come out with many trading programs and in fact the last one was way back in 2007.

I'm not going to hype this thing with all the usual marketing bull shit, but… I'm really proud of it and its taken my trading to a whole new level.

I've created 2 short videos that will give you all the details.

To take a closer look at the videos… Click here:

www.mtxforextradingsystem.com

Please note that I'm doing a special pre-launch pricing that will give early adopters a 70% discount off the regular price.

WARNING! If you're looking for a forex robot that promises to make you you thousands a day while your sitting by the pool then this is not for you.  The truth is, to be a successful forex trader, it takes time, dedication, laser-focus, patience, persistence, nerves of steel and being able to take responsibility for your trading.  I know most marketers will tell you that none of those qualities really matter, but I can tell you with 100% certainty that without them there is little chance of making serious money in this game.

Anyway… Flash forward to April 14 where I recorded a video that documents my progress to date.

Here is the video… http://www.askjeffwilde.com/jbp414.swf

As I write this post on April 19th my results are even way better than on this latest video.

Anyway… I will continue to share my observations on this money making venture.

And… I will report the good as well as the bad.

If you decide this program is for you, you can signup here:

Sit Back and Watch

This is all that I really do at a key level.  I sit back and watch the price reaction.  I never try to predict what price is going to do or where it is going to reverse.  Instead, I sit back and observe the price reaction at predetermined key levels.  I am looking for a very specific series of events to unfold in order to confirm to me that price is indeed reversing.

The Rejection

First off, I monitor price reactions on the 1 Minute Chart.  Many people are under the impression that the 1 Minute chart is extremely risky and too fast-moving.  That is not true—if you trade the 1 Minute Chart correctly.  [Disclaimer:  Trading foreign exchange is always risky.]

When price comes into a key level, such as the 1.0305 level in the chart above, I am looking for a hard, sharp rejection off the key level.  That means in the chart above, I would want to see a quick, sharp rejection of the 1.0305 level.  That is the first action I am looking for.

Stay Away!

If price shows me a sharp rejection of the key level (6-10 pips), then I want to see it stay away from the level for a few more minutes (3-5 minutes) and build a fractal, or sideways period of consolidation.  If I see price stay away from the key level in a fractal formation after the rejection for 3-5 minutes, then I am ready to look for an entry because price is most likely going to continue moving away from the key level.

As you can see, our AUD/USD example showed a strong initial price rejection of the 1.0305 level, and then price dealt sideways for almost 10 minutes, away from the key level.  This is a strong sign that price is going to continue to move away from the key level.

The Pattern

The pattern looks like this:

When you see this type of price formation unfold at a predetermined key level, you can be confident that the probability is on the side of price reversing for 20+ pips.

No Rejection = Continuation

Now, of course, the reverse is also true.  If price moves up or down to a key level on a higher timeframe, and does not reject at all, then the most likely outcome is that price will violate the key level and continue moving higher or lower.  Therefore, if price comes up to a key level and simply hits it and begins to move sideways, without ever sharply rejecting, then it will most likely break through and continue in the same direction.  Always wait for the rejection to fade momentum!!!

Homework

A great way to better understand this pattern is to locate major swing points over the last few days on the 15 Minute chart.  Look back over the last few days and any time price reversed 30+ pips, go to the 1 Minute chart and observe the price action that made up the reversal.  You will be shocked to see how many times you see this price reversal formation at work.

Remember, past performance is no guarantee of future performance and trading is always risky.  Make sure you have a detailed plan of action, and commit to trading only according to your plan.

This article comes courtesy of my friend and colleague Jason Hoerr over at FX EVolve

Although there are a few good levels that are worth noting, the level with the clearest technical confluence is the 62% Fib Retracement level at 1.0305.

So, let’s assume that you identify this 1.0305 level on AUD/USD as a strong level of resistance.  Now, what do you do next?  What happens when price rises up to the 1.0305 area?  How do you know whether you should sell or not?  Do you wait for a reversal candlestick on the 15 minute chart?  Or the 1 Hour chart?

Identifying strong areas of support and resistance is not necessarily that challenging.  Determining when to buy and sell at those levels, however, is an entirely different, and much more challenging, issue.  In the remainder of this article, I want to break down my favorite reversal pattern that I consistently look for at predetermined key levels in order to determine whether or not price is reversing.

Make sure you place these levels on your chart. It's uncanny how accurate they can be as they tend to be "Magnet Points" for the markets.  Until next week…

What he writes about applies dead-on to traders as well.  I'm not going to change his words at all as he did such a great job. Anyway… Read this carefully as I believe it can help you make a serious shift in the results you're getting trading.

The Top 3 Differences Between Wealthy People & Broke People

1: Wealthy people find mentors who know more than they do, invest in their support, & become very coach-able.

Poor people try to figure it out on their own, resist help like the plague, and are very skeptical about what others know.

It’s strange… but you can almost tell that someone is UN-successful just by the way they interact with you and how open they are to your support. Especially when they are struggling.

2: Wealthy people focus on the opportunity for growth, transformation, and impact when making big decisions to move them forward.

Poor people focus on their current circumstances, their limitations, and their fears which leads them to miss making big decisions and keeps them exactly where they are.

Something great shows up an a wealth-conscious individual instantly sees the opportunity for growth and says YES… even before they know how to make it happen.

On the other side of the coin, a poverty conscious person is shown the same opportunity and instantly finds all the reasons why “they can’t” and thus makes the decision to pass and stay stuck.

3: Wealthy people are willing to go after what they want with reckless abandon versus poor people who continue to wait for some magical opportunity to show up and shift everything for them without having to do the work.

I mean… the truth is that nobody really knows how things are going to work out in the beginning.

But to a wealth conscious person, that doesn’t matter.

Because you know the results don’t actually matter when you play full out. When you take risks that force you to grow. When you un-apologetically go after what you want.

Please read this a bunch of times to let it really sink in.  As traders we're always on a quest to find "The Holy Grail" or "Secret Sauce" but the truth is the secret can be found in the above article.

Some food for thought…

Jeff Wilde