This week we’re going to follow up on a pair which we looked at last week. At the time of the analysis, price had formed the doji with a small real body as shown in the chart. Our course of action was to wait for price action to guide us, since we were at a minor resistance level. A breakout occurred, one that did not have a pullback because they also don’t happen all the time.


Bulls are dominant as they’re rallying the price. An inside bar formed signaling a continuation and price did continue bullish. It looks like if they (bulls) maintain the momentum, we might be headed for the major level.


The Dollar vs the Loonie has been on an uptrend since the beginning of the year on the daily timeframe. Currently price is consolidating within an ascending triangle. Where the upper boundary is acting as a resistance zone as shown.


At this moment, we are waiting for a break out. Usually an ascending triangle breaks out on the upside, but it is not guaranteed, nothing in the forex market is. Our bias will shift to bullish if there is a break and close above. Otherwise we will monitor the pair and talk bearish if it breaks and closes below the trend line. 


EURAUD will be our choice of weekly analysis this week on the daily timeframe. Price has been slightly choppy with a minor uptrend that just reached our near term resistance level as our latest trend. At the level, the previous candlestick has a long upper shadow which did not close above. As well as the current candle which is a doji with a minute real body.


From the recent price behavior, bulls are facing resistance pushing price to higher levels. Indecision is what is depicted. A possibility of a reversal is quite high but we have to wait for confirmation to affirm this speculation.


We are going to follow up on this pair, from analysis done 3 weeks ago. Price was trading within a descending triangle. At the time of the former analysis, we had reached the lower boundary depicted by the yellow eclipse. A bounce occurred off the support zone and rallied up. Later the upper trend line acted as resistance and the market slid off back to the support zone and broke out.


With the occurrence of the break and close below our bias shifts bearish. We had our confirmation candle following the breakout. The most recent candlestick is an inside bar. Monitoring of this pair continues to see whether the bear power will persist.


This week’s analysis will be a follow up on the pair of the Pound against the Dollar based on the analysis we did on the pair two weeks ago. True to our previous analysis, we have seen a breakout from the descending triangle and prices actually move bearish like we anticipated. The bear move was not very strong as it reversed after about 100 pips. The candlestick formation signaled that the bear power is diminishing, and the bulls have taken control of the pair, and are already pushing the price upwards.


Following the bullish pressure witnessed towards close of last week, this week we will be keen to follow if the bulls have enough muscles to continue pushing prices up. The next possible target level is the near-term resistance zone at price 1.33471.


This week, we are also going to follow up on this pair that we analyzed last week. Our bias was bearish after the breakout and pullback that occurred on the chart. The bears have momentarily pushed the prices down. Currently we see some indecision candles on a minor level.


We will be waiting to see whether there will be a possible reversal or if the bears will continue to push the prices further down. We continue to monitor this pair.


We are going to look at the Pound Yen which is often referred to as the monster. It’s  notorious for causing many traders financial and emotional turmoil .Price has been rallying since December last year. Soon after we went into a consolidation period in the form of a descending triangle. On seeing this as price action traders, we must be rejoicing because a good trend will come out of this. Most traders don’t like it when price ranges. Yet we all know trends follow after ranging periods in the market.


A descending triangle breaks out below 7 times out of 10.This does not mean we should automatically sell the market. Patience is needed to join in, whichever side there is a breakout. Price will guide us whether we shall reverse the previous uptrend or continue with the bulls. Therefore we sit on our hands until we get a signal, following a breakout and confirmation.


In this week’s analysis we are looking at the Australian dollar vs. the Lonnie. It is clear that since November of last year price was in a downtrend. Around February this year we had a rally within an ascending channel. Price usually consolidates in form of chart patterns. Safe to say the downtrend was our main trend and the uptrend(within the channel) is our minor trend .We had a breakout which closed below and a pullback ensued that was successful.


Once we broke out of the channel, our bias of any bullish momentum was nullified. There’s a high probability that we will continue with the bearish major trend. We now start looking for opportunities to short the market after a confirmation. Therefore let’s closely look on this pair to see whether we will continue with the falling prices.


On this week’s analysis, we’ll be looking at the daily chart of pound dollar. Swiftly we can see price has been on an uptrend since December last year. Early this year, price topped twice at the major resistance level. A consolidation followed thereafter in the form of a descending triangle. Within the triangle it is visible that the line of least resistance is downwards. Therefore it is no surprise that price broke out and closed below the triangle. The most recent candle stick has an upper shadow, which is highly likely a pullback on the lower timeframes.


Evidence of a close below and a retest shifts our bias on this setup to be quite bearish. We closely monitor the pair to see how much further  the bear momentum will persist.


We’re going to look at this analysis from the weekly timeframe. Price has been making a series of lower highs for the last 2 years. At the same time we see a series of higher lows from late last year consequently forming a symmetrical triangle. The triangle is still intact with no breakout in sight. However within it, there’s a double bottom that has broken out and closed above the neckline.


In order to trade the triangle, our rules suggest we wait for a breakout on either side of the pattern. The double bottom breakout may give us a reason to believe that a bull market is imminent. Nevertheless a breakout above the triangle will confirm this hunch. We may even see a pullback on the double bottom first before any further action. Hence we remain patient but vigilant for clear signals guided by a breakout to open positions.

Even though you may have the expertise in Forex Trading, that is not the only factor that determines your long term success as a Forex trader. You may have all the knowledge and the know-how on Forex trading strategies, efficient and faster platforms and risk management but without knowing how to manage your emotions, you cannot become successful in trading Forex. Remember that precious money is involved while trading and it can be easily lost. In this blog, we will discuss about the kind of emotions that a Forex Trader should avoid to achieve success.


Greed is definitely a huge obstacle while trading. It is understood that one may get huge returns from Forex but one has to be cautious no to be greedy and try to get huge returns on every trade. This may lead you to blow your account. Risking your whole balance on an account for a single trade speculating an enormous return is not the way to earn from Forex trading. Forex trading is undoubtedly not a ‘Get Rich Quick’ scheme. If you want to get rich, you have to do it slowly.

To overcome greed, one needs to accept the fact that not all trades end up being successful. With this in mind, you know that the market is bigger than you and mistakes are bound to happen. Follow your trading plans instead of falling into greed. Make sure you always risk a small percentage of your capital in every single trade, and follow through this plan to the point.


Depending on the type of strategy you might adopt to trade Forex, it should tell you when and where to get into a trade (Price action trading). At least this is true for us and is what we train our traders at Fourthstreet Consultants. You may jump into an entry point prematurely and miss a better entry point that would have earned a profit but end up finding yourself taking a loss.

If your timing seems inadequate despite adopting patience, adjust your strategy so that you may be able to observe more indicators. This will allow you to grow your patience and save you from entering into trades prematurely. This in turn allows you to earn more profit in your trades and make your trading less frustrating. You can only learn these skills from professional traders who have been successful in their trading career, and is what offers its traders/students.


Fear in Forex trading is understandable. Experiencing fear is normal. This fear understandably results from the increased possibility of losing money while placing trades due to certain uncertainties in the Forex market. This can happen to every trader.

For example, you hold a position and the price starts dropping. You start getting nervous about losing money considering your last trade was quite unsuccessful. You decide that you cannot keep losing money despite your adopted strategy encouraging you to remain resilient and you decide to close early. The next thing that happens is that the price support comes into play and the price also rises. This shows that your fear was the detriment to your trade and it forces you take a loss.

To avoid this, you need to identify the source of your fear and understand how to deal with them to become a better Forex trader. That way you will have turned your fear to a source of improvement.


Having a series of successful trades is really good but this can also lead to over-confidence. You may think that you can’t lose and that there are absolutely no errors in your methods or strategies. Confidence is indeed quite important to become a successful trader. However, this is not the case when you think you know everything about the market. Over-confident traders tend to get into trouble by trading larger positions than they are used to or even overtrading.

A successful trader needs to always evaluate their trades despite having a long run at gaining profits from Forex. You also need to implement your strategy and implement the right entry points. Needless to say, you also need to limit your losses despite having earned a lot from the previous trades. If you are not careful, you may end up losing all your gains from previous trades.


Mastering your trading psychology won’t make you money in itself, but if you are not aware of the tricks your own mind is trying to play on itself, you will probably find yourself losing even if you are a good trader and are basically right in your trading decisions.

FourthStreet Consultants offers an Online Forex Course that delves deep into the right trading psychology to adopt and much more in order to become a professional trader.

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We are going to look at a follow up on this pair which we did during 25th-29th March. During the previous analysis, there was a triple top that was supported at the neckline which is labeled as the support level now. Bulls sustained the rally after the bounce off the support up until we got to the resistance zone. The second last candle stick was an inside bar and we can see what ensued after that. Finally we broke out of the consolidation by a huge bullish candle stick.


Price has been ranging between these two levels, (call it a rectangle if you like) since the beginning of the year. Eventually a breakout has occurred and our bias becomes mainly bullish. We shall therefore be patient to see whether we shall experience a pullback as well or if bull power will sustain pushing price much higher.


This week we are going to look at gold vs the Euro. Evidence of a trading confluence has been sited which should keep us on high alert as price action traders. Quickly looking to the left, we can see bulls were having a splendid time as they gradually rallied the price. A consolidation later followed in the form of two price patterns as advertised by the charts. Within a symmetrical triangle illustrated by the yellow trend lines, we see an almost picture perfect head and shoulder pattern. Both chart patterns have broken to the downside denoted by a close below the patterns by the breakout candle stick.


Bears exhibit an intention of taking price for a waterfall; this is evident by the break and close below the patterns. There might be a pullback towards the neckline/trend line to test the boundaries. If the boundaries hold this will give us an ideal and confirmed entry position after the retest. At this moment we wait for two things, a confirmation of the bear dominance by either another bearish candle or a retest. 


This week we are going to follow up on the NZDUSD pair, mainly based on the weekly analysis we did back in mid-February.  The NZDUSD pair seems to have taken a ranging motion.  It no longer consolidates to form a symmetrical triangle but has been bouncing between the resistance and support level as captured on the chart.


Price is currently sitting at the support level and our take as price action traders is to wait for price to guide us, whether the bulls will have their way and take the pair up or will the support level will finally be broken giving way to further bearish momentum?


From our previous weekly analysis of the Gold vs USD, price had been on a bullish trend which later was resisted on the formation of a pin bar. The bears further took over the market with a strong bearish candlestick. In the following three weeks as shown from the charts, the bulls resisted the bearish momentum and we see some bullish move. However this did not hold grounds for long as last week the bears regained control of the market as indicated by the strong bearish engulfing candle, which engulfed the last three bullish candles.


Should this pair break below the ‘test limit’, we will be looking to go short on the pair, with our targets aimed at the ‘Near-term support level. Until we have this confirmation, we hold to our cards and not do a thing.


During this week’s analysis, we have an example of market confluence. It (market confluence) always increases our chances of being profitable as it offers high probability setups. Looking left we see price has been falling steeply but the trend reversed on a sizeable hammer. Bulls took over then the bears resumed with their downtrend in a descending equidistant channel. Within the confines of the channel, we see a morning star which is part of a fakey setup. Traders were faked into going short but then the morning star reversed that momentum and even closed above the mother candle which is a signal to go long.


Bulls seem to be very resilient within the channel. We’ll have to wait and see if the force will be enough to breakout above of the channel. While this may be true we got to sit on our hands momentarily to see how price behaves around the upper boundary of the descending channel. Sellers may come in and negate the rally; in any case we are in a descending channel.


We are going to look at silver vs the dollar in this week’s analysis. Price has been on an uptrend since late last year then fell into a consolidation. The range is in form of two chart patterns. On one hand we see a falling wedge, and on the flip side we see a slanting head and shoulder pattern with a slanting neckline as well. Presently price has bounced off the neckline.


Currently, the neckline has held its own, but we don’t know for how long. Two scenarios can play out at this point. Eventually bears could take charge and drive price in a waterfall breaking below the neckline. Once a close and confirmation happens, our bias will be bearish. Conversely the bulls may maintain the momentum and  rally price breaking out of the falling wedge. Therefore we wait, as we all know good things come to those who wait.    


This week’s analysis is going to happen on the weekly timeframe. Price has been trading within an ascending channel for 5 months. Therefore we’re in an uptrend. The occurrence of the price ceiling validates bullish weakness and bear power at this point. Last week’s candle stick closed as a hanging man. A candlestick which shows a high probability of a reversal or weakness in an uptrend. We can describe this as a trading confluence as well. Combination of a level and a reversal candlestick.


Our trading confluence gives us a reason to believe that this price might reverse and push further down. As usual we have to wait for a confirmation to validate bear dominance at this level. Patience is key and also the name of the game.


Analysis on this pair is going to be on the daily timeframe. Immediately we notice that price has been on a downtrend. The momentum on the downtrend paused momentarily and started consolidating in the form of a triple top. Price has been supported severally by the neckline and hasn’t broken below yet.


This set up is quite clear and direct but not any different from any other in terms of how we approach it. Patience  is key for validation of an entry or bias. In order to trade this chart pattern, a close and confirmation below the neckline is needed. Until then, let’s stay put. Since price might rotate bullish and trend upwards like we have seen numerous times before.