Trading Cross Pairs with Finesse Using the Platinum Methodology
Good Morning Platinum Traders,
Welcome to the Platinum Educational Trading Articles. I must say right now the United Kingdom just seems to be going from one disaster to the next and our sincere condolences to families that have lost their loved ones in the Grenfell Disaster, Manchester Arena Incident and also, not to forget, the terrorist attacks in London all in a matter of weeks.
If there is any way we can help you here in other means other than trading please let us know.
One of the biggest challenges Traders face
One of the biggest problems traders have is selecting the pairs to trade and often with the available 72 currencies to trade, you are left in a situation of too many to chose from.
The Platinum Trader believes in being SELECTIVE. If there are no trades, what would you rather do? Lose trades or be out of the trading markets? Just think about that next time you are in a moment of indecision. Platinum Traders are taught the simple philosophy of “when in doubt stay out.” Trading is like a marriage. Take your time to select the right one and don’t hold on too long if you are in the wrong one!
So enough of my marriage guidance for the week. Let’s talk about the magic cross pair trade that we foresee taking place in the very near term that with the correct risk management and patience, could make you over 1000 fx pips.
At Platinum, our elite traders use a principle called the FOREX INTELLIGENCE UNIT that allows them to predict the price of a currency pair within 20-30 pips on non-news event days. That’s what we call trading with finesse. If you would like to know more about the FOREX INTELLIGENCE UNIT, then book a free session with me this week as I am genuinely only focusing on mega expert trades for the next 25 days.
In this session, I shall cover Institutional Strategies that will change your trading forever. Now let’s come straight to the point! The pair we want to talk about this week is CAD/JPY. This pair is looking absolutely beautiful to go all the way and I mean a 1000 pips move indeed.
PLATINUM TECHNICAL ANALYSIS:
RULE NUMBER ONE FOR THE TRADE:
BUY AT SUPPORT AND LET THE MAGIC LEVEL OF 88.90 BE BROKEN AND HOLD THIS TRADE FOR A MINIMUM OF 500 PIPS.
If the above does not make sense book your free foundation session in currencies and we shall explain how to trade this pair on a demo account.
The CAD/JPY cross rate displays a well-formed (17-month Inverse Head and Shoulders Reversal formation, with a sustained break above Neckline resistance (at 88.90) establishing an Upside Objective of 106.40 over the coming months. Short-term support now lies around the 86.30 level.
The chart below will guide you on our analysis:
Technical Reasons for the Trade
A) INVERSE HEAD AND SHOULDERS
B) DOWNTREND HAS BEEN BROKEN
C) 4 PEAKS HAVE BEEN COMPLETED
D) PURE ACCUMULATION HAS BEEN COMPLETED
ACTUAL TRADE:
LONG CAD/JPY @ 86.30 WITH AT STOP @ 85.80 AND A TARGET OF 90.95
If you don’t know what an Inverse Head and Shoulders is, please take the time to understand.
Inverse Head and Shoulders pattern.
Platinum Tutorial on A Reverse Head And Shoulder Chart
The Reverse Head And Shoulders Pattern is just the opposite of the Head and Shoulders Pattern. It is also a very reliable pattern and that is a reason for its popularity. It is a reversal pattern and is formed after a downtrend. Reverse Head and Shoulder pattern consist of the following:
1.Left Shoulder:
In continuation of the downtrend the price goes down further to form a new low or first peak, known as left shoulder, and then make a high.
2.Head:
Continuing the left shoulder high, again the price goes down to a new low, lower than the left shoulder forming a middle peak known as head of the pattern and goes up to the previous high.
3.Right Shoulder:
It is formed when the price goes down again from the high of the head, but not as low as the Head and comes up again forming the third peak or right shoulder.
4.Neckline:
It is the line drawn through the top of the Left Shoulder, Head and the Right Shoulder and serves as an important support for this pattern.
Breakout:
The pattern is only considered reliable and complete when the price goes up and closes above the neckline and there is often increase in volume.
Shape:
Theoretically, the Head and Shoulders pattern should be symmetrical. It means that the left and right shoulders should form peak about the same price level and are equally distanced from the Head. But practically, you rarely see such symmetrical Head and Shoulder patterns in real time. However, sometimes the left Shoulder is higher than the right shoulder or vice versa. But the Head always have the highest peak. It is not necessary also that the peaks formed in this pattern to be sharp, it may be pointed to round shape. Therefore, it is not necessary that the neckline should be horizontal, it can be sloping upwards or downwards.
Volume:
With the formation of the Reverse Head and Shoulder, there is a continuous decrease in the Volume. That means volume will be higher in the left shoulder and eventually it decreases with the formation of head and right shoulder.
Breakout Range:
This is the vertical distance from the tip of the head till the neckline. It is usually used to set the rough potential price target. However, other technical indicators must also be considered here as well.
The Platinum Formula:
Perfect Fundamentals + Perfect Technical Analysis + Perfect Logic + Perfect Risk Management = Perfect Trade
In summary
To trade like this, a lot of patience and discipline is required. A chart like the one we have presented in today’s blog article doesn’t show itself overnight. That’s why Platinum Traders are able to stack the odds in their favour. They learn to analyse the markets exactly as in this example above and are able to hold trades for weeks and months sometimes.
Learn the Art of Patience yourself by getting in touch today to book your free session with one of our senior traders. It is time to stop playing cards and become a real profitable trader.
THE PLATINUM WAY
At Platinum, we teach all individuals from different walks of life to become a full-time trader or create a secondary revenue stream by trading part-time. We trade in an Institutional Way by letting the market come to us and being patient. Using Platinums Trading system you can take many Pips out of the market. We can ensure using this style of trading your trading will make a turnaround as you will become much more consistent.
If you want to trade like the professionals do, making consistently profitable returns from your trading, get in touch with us and we will demonstrate live exactly how we approach the markets.
Download our free ebook to read about the various Trading Patterns that work in the Financial Market. Watch Trades of the Week Videos in our video gallery. Subscribe to Platinum’s Forex Newsletter.
Hopefully, you have enjoyed today’s article. Thanks for reading!
Have a fantastic day!
Nisha Patel
Live from the Platinum Trading Floor.
Hopefully, you have enjoyed today’s article as much as I have enjoyed writing it for you to read. See you in the next one.
