VAHID’S WINNING RUN CONTINUES! (See attached chart)
Important news today, Core PCE Price Index m/m, change in the price of goods and services purchased by consumers, excluding food and energy.
The news broke 08:30 and was as forecast at 0.5%. The Global market jumped on the news 1 hour before US market opened. The move north continued for the next 90 minutes.
Yesterday, Vahid predicted a collapse of the market and once again he was right. After the trading session yesterday, we saw a steady decline as seen in the chart of 1.62%
If we see a big rapid sell off like this we often see a short term bounce. This played out, and the market continued to recover the sell off from yesterday on the back of the news which has the potential for the FED to only raise interest rates by 0.5%, not the 0.75% most were expecting.
When the market was about to open today we saw a rebound from the sell off yesterday hit the green resistance line (see chart below).
This is a vital line, if we break through it should give some relief for buyers but if the bulls fail to break the resistance line then we can expect lower prices.
These lines are a vital part of the analysis and are fundamental to any trader who plans to make progress. Plot lines precisely on line chart (not candlestick chart) to ensure an accurate support and resistance profile.
Vahid said we can plot too may lines on the chart so major on the 15 min chart and the major areas of support and resistance. Remember we need to see when these lines are breached in order for a trade set up to form.
The market opened and we saw a big move up, building on the rise we saw an hour earlier on the news release. We waited for the candle to close and its resistance line now acting as support held. Vahid took a long position and set a 2% stop loss and take profit.
Vahid said as it is a Friday remember never EVER leave a position OPEN over the weekend! There can be a massive gap when trading starts again at the start of the next weekly session. If this gap goes against your open position, your entire account could be wiped out as the stop loss will not work on a huge market gap over a weekend.
Head and Shoulders patterns were discussed during the Q and A session. (sorry everyone) Vahid spotted this yesterday. It played out as expected with a huge collapse in the market and you can see this drawn on the chart below.
We need to pay the closest attention to these support and resistance lines which form on almost any tradable pattern including a head and shoulder pattern. When they get breached, and the breach is confirmed, this is where an opportunity to trade is possible.
To better understand the head and shoulders then check out our discussion on this by watching the replay of the Q and A session on the telegram replay.
Vahid also explained how you can determine how far the price will go after a breakout, using the Fibonacci Retracement Levels:
- Fibonacci Retracement in Chart Analysis
- Fibonacci Trading Strategy After Sideways Market
- How to Add Tools Like Gann and Fibonacci to MT4 Line Studies Toolbar
- Fibonacci Trading – How To Use Fibonacci
The telegrams VIDEO replays Vahid sends out each day, has less than 100 subscribers which is surprising given the huge value of this information designed specifically for us novice traders. There is in addition a very useful short video which looks at the possible trading opportunities that are likely over the coming hours as well as recapping the trading day.
If we are serious about learning the process we need to immerse ourselves in the knowledge that Vahid is offering with these videos for free. So even if we are unable to join the live zoom trading room, we can still learn all the techniques used to help us to become financially independent.
Have a great weekend everyone and thanks in advance for any comments you make on these reports from the ZOOM room.