I would like to introduce the Flat Break + Volumes Department. It is chaired by IGOR-K who describes now one of practical classes.
Each morning the Head of the Flat Break + Volumes Department within the Faculty of Flat Break; Automation; Auto-Trading posts graphical analysis in the closed thread of the 's forum and his results at the end of the day. What stands behind the drawing? What will students of the Department be taught? Read on to find out.
YURAZ, Yuriy Zaytsev, Dean of the Flat Break Faculty.
This article will deal with the practical aspect in more detail rather than general theory. This is why today two days of the practice week for GBP/USD morning analysis will be described.
This analysis will be conducted every day at 08:00 for GBP/USD and EUR/USD together with the group to determine the direction, spot important levels we will work from, show entry and exit points, stop-losses for trades and possible reversal areas. We will cover possible options for continued movement in the medium term. Of course, in the evening, at around 20:00, we'll speak about trades made during the trading day.
Let's have a look at the pound to the dollar on 5 July 2011.
The pair formed a wide morning flat zone and stays in the range of 1.6050-1.6040.
First, one should note that in the morning the pair moved down a lot, pulled back to 1.6050 and showed how strong this level was. It is clear there are no buyers capable of breaking 1.6050.
Since the pair has been in a range for a couple of days and it's good to work from levels in a ranging market, this is quite a good reason to short with a stop above the local high at 1.6050.
Closest volumes:
1.6000 - maximum volume of the previous trading day. In our case, it is Friday volume because the US had a day off on Monday, 04.07.11 - the Independence Day.
1.6095 - maximum volume of the previous trading week.
Given the volumes, the plan for the current day was as follows:
Shorting before the morning flat zone is broken: the stop-loss above 1.6050 (in this example, the initial stop was 24 pips away from the entry point). Take profit is at 1.6003 - the maximum volume of the previous trading day, including the spread.
When the take profit is reached, reaction to this is significant: if we break it and get stabilized under it, one could short again. If we bounce off it, we should long. When buying, the stop is below the current low of the day (the stop was 30 pips), the take profit is at 1.5993 )the maximum volume of the previous trading week, 1.5995 including the spread).
End of day result:
Both trades were closed by taking a profit, the initial stop was max. 25 pips in both trades.
Let's have a look at the following day, the pound to the dollar on 6 July 2011.
The pair broke the morning flat zone, but it is too early to buy yet. There's the maximum volume of the previous trading day (Tuesday volume) at 1.6096, and reaction to it is important. If we break it and get stabilized above it, buying from 1.6010 will be justified. If we move down from 1.6096, selling with a target at 1.6003 (the maximum volume of the last but one trading day at 1.6000 including spread) will be the right decision.
Two possible options for selling were shown in the morning - from the current price and from the maximum volume of the previous trading day as one should keep in mind that we might not reach the volume but should treat it as cover and put potential stop loss there.
On that day we did not go above, but the initial stop was behind this volume at 1.6002 (22 pips from the entry point).
This day generated the following results:
These are simple entry and exit rules and only a small part of what people who join the Department will be taught.
I would also like to draw your attention to a discount of 20% for the first group starting on 22 August 2011.
To study at the Break+Volumes Department, you first have to be a student of the Faculty and have basic training in the Flat Break system.
Here you can read how to enroll with the Faculty.
Training will last two weeks, including a week of theoretical classes and a week of practice. During the practice period, analysis and plan for the trading day in the morning and debriefing of actual trades in the evening.
Best regards, Head of the Flat Break+Volumes Department, Igor Kazakov.
