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So our Breakout system has been producing some excellent results recently, the trade signals have been pretty accurate and as things stand we could see a continuation of the recent success this week too.
The system has given us a few excellent entry signals but in this report I will only cover GBPUSD & Gold.
It's Monday and I really hope you are all freshened up and ready to rock and roll in the markets for yet another special trading week!
Lets kick off this report with the daily chart of Gold.
Gold, Daily Chart
(click on image to enlarge)
The highlighted yellow level is our most important trading level at the moment. It is acting as a key resistance level just as it did numerous times so far this year. The Green highlighted area is important too, it is the level where we can get in and earn some significant pips if the yellow resistance is broken after it gets tested, which will probably happen this week as there is plenty of support for Gold with all the things happening in the world.
I don't know if you watch the news, but now they are saying that a "coupe against Trump could be in the making", not to mention the problems in the middle east, the strong earth quakes rocking all around the world and so much more.
Anyway, lets come back to the chart. Because Gold is traded versus the USD, I want to quickly go over the US Dollar Index. The Index has gapped up over the weekend and is lying at a key resistance level, a level I believe will hold so we could see the USD weaken during today's trading sessions. I will not give you the chart of USDX, I want you to review it for yourself as this would be the best way for you to learn.
In regards to the trade on Gold, since this is a clear breakout of our EMA/DC indicators, my entry level will be at 1290.00, my SL 1284 and my TP at 1307.00 So the risk reward I have here is decent, almost 3 to 1 which is ideal. I might have to stay in the trade for a few days if not weeks but I am happy to do that.
i'll continue now with the breakout on GBPUSD.
GBPUSD, Daily Chart
(click on image to enlarge)
GBPUSD's daily chart also gives us a clean breakout of the EMA/DC indicators, since there is a lot happening in the UK with Theresa May and Brexit, its so far just been bad news but the GBP has not suffered much from it, it is actually gaining if you look at it over the weekly point, this indicates to me that the serious players in the FX business are GBP long, just like we are.
There are two take profit levels which you can choose to target, the first is the 1.33 which is roughly 100 pips from current price action and the second (my TP) is over 230 pips from current price action and that is the 1.3450 level.
If you take a look at the daily or even weekly GBPUSD chart you will find a massive head and shoulders pattern right at the lowest low price ever reached, to me this is a very good indicator that GBPUSD will head above 1.40 in the next week fews if not months. Nevertheless, I am GBPUSD long.
Our Breakout System
I created the breakout system to increase the odds of my trades, current there are 3 trading systems which we use at PipsMatter, the are 1. The Breakout System 2. The Reversal System and 3. The Trend System.
They all use the same process of analysis, they only differ in the actual entry with small differences in other parts such as trade management, compounding and exit.
If you want to learn the breakout strategy you can do us by joining PipsMatter.com and watching our video library which is located in our "Traders Room". We record videos weekly, the videos cover all important subjects, strategies, tips, analysis and so much more!
Subscription to PipsMatter costs just 50 euros a month, but if you join with the quarterly or yearly plan you will pay even less money for more value!
If you are interested and have any questions, just shoot me an email on Denis@pipsmatter.com and I will answer any questions you might have!
Now I want to wish you an excellent new trading week full of happiness, prosperity and good health!
Size the day, one at a time!