GBP/USD Fundamentals And The Surefire Trading Challenge -- Hassam

May 2, 2010 - PRLog -- "....The U.S. Dollar was stronger across the board last week, with the exception of the New Zealand Dollar which gained 1.3% against the Greenback last week. The U.S. economy still seems to be gaining steam, albeit slowly. On Monday, CB Consumer Confidence showed a reading of 57.9 versus expectations of 53.6, plus a slight downward revision to the previous number to 52.3 from 52.5. The Greek debt situation, as well as growing concerns about Spain's, Portugal's and now even Italy's creditworthiness, seems to be enhancing risk-aversion in the market and thereby supporting the USD...."

http://www.ninjatraderblog.com/trading/2009/10/forex-trading-system-2/

Trading forex shouldn't be complicated. It is about understanding the basics. One good example of this is the setup on GBP/USD 1 hr currency pair. When you look at the chart, you'll notice that market made a low at 1.5150 levels yesterday. From there it retraced a bit and then reversed again few Candlesticks later to break that level. It made a new low of 1.5125. But if you notice that candlestick, it had a large lower wick, giving a perfect indication of market reversal.

And as expected, the market retraced, for a while and then again tried breaking the low at 3 am EST the following day. Finally it reversed, forming a kind of evening star and a tripple Bottom! And this reversal ran for about 180 pips. Such Forex Candlestick formations like evening star and double/triple bottoms are fairly straight forward to understand and implement. And needless to say, they are highly reliable. So, keep your analysis simple..:-)

http://www.ninjatraderblog.com/trading/2009/10/forex-trad...

Oh, by the way, if you want to learn forex candlesticks and take your analysis to next level, you must check out my forex candlestick course! When analysing the chart, you don't have to clutter it way too many indicators. 3-4 at the maximum are fine. Using too many indicators will simply confuse you. One of the indicators that I would highly recommend is Forex Candlesticks and using them, you can take your chart analysis to next level.

Mark McRae: "All men can see these tactics whereby I conquer,but what none can see is the strategy out of which victory is evolved."
Sun Tzu

This is without a doubt the most exciting competition we have ever had. There have been more twists and turns than a country road. Look at the leaderboard! As we approach the halfway mark of round one, strategy comes into play. My definition of strategy is, "where are we going" and tactics is, "how do we get there". You see, the strategy should be to qualify for the next round, the tactics is just to get into the top 20, it is not necessarily to win round one.

That's why I keep an eye on the leaderboard each day. If you look at the statements of the top 50 you can start to get a feel for how they trade. Just click on their nickname to see their statement. The top 10 looks like this as I write this, but remember, it changes every hour:

1 fferdinan - 165.75 %
2 beowulf.fx - 134.23 %
3 forexpawn - 120.27 %
4 1234ABCD - 119.7 %
5 Everdyke - 112.59 %
6 amidani - 112.09 %
7 firdausghani - 111.15 %
8 rover666 - 102.8 %
9 fazlan76 - 101.91 %
10 prastawa - 101.84 %

These are very impressive results considering this is only the second week of the competition. Not only that, remember they have been restricted to 0.5 lots maximum at any time. Next week we have a bit of a surprise for anyone following the competition that will revolve around picking one of the top 50 to win. Anyway, have a great weekend and I hope you find some time to relax. I have always tried to be at the cutting edge of trading and I think this format for the competition is unprecedented in its transparency. You can see exactly what every trader is doing updated every hour here:

http://www.ninjatraderblog.com/trading/2009/10/forex-trading-system-2/

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Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading stocks and currencies!

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