time frame, trade

Introduction

Members of the Exponential Profits System (EPS) were recently alerted, via our EPS Trade Forecast service, that a possible trade opportunity was presenting itself in the USD/JPY currency pair. The EPS Trade Forecast Service is a trading report released to members  twice per week  that covers potential trade setups that follows the trading methodology taught in our course.

Each trading report focuses on very specific trade setups and members quality tradable opportunities before they actually happen. The EPS’s main goal is to find trades with large rewards versus low risk. The recent trade on the USD/JPY was one such opportunity that yielded our members fantastic returns.
The purpose of this article is to show you how real trades unfold and how to capitalize on such moments. Frankly, we also want to give you a taste of the potential of the EPS system so you’ll consider taking advantage of it.

26th September Trade Report Recap

During our 26th September EPS Trade Forecast report we noted the following on USD/JPY:
“Last week we mentioned that we might get a correction from the overhead 100% Fib extension level. Thus far price has reacted from that level downwards in a possible corrective pattern that may well be a Single ZigZag. If we are right then we would like to go long USD/JPY at the end of such a correction”.

Higher Time Frame Analysis

Below was our higher time frame chart of the USD/JPY that we shared in the report as we like to view the bigger picture of price action and market structure first.

Looking at the chart on that day we noted thatUSD/JPY forecast has broken the longer term blue downward sloping trend line to the upside as well as previous market structure (shown with the red horizontal line).

 

Using that information we went ahead and used a Fibonacci extension tool and waited for reactions from those levels. In this case it was the 100% Fib extension level. These reactions typically trace out recognisable corrective patterns which EPS course members know how to identify and define. We were, at the time, monitoring what we call a Single ZigZag correction and we label it A-B-C as we did on the chart in black.
Armed with that knowledge we then go ahead and anticipate the end of the correction and take trades in the direction of the main intermediate trend which, in this case, was up. These trades often target the exact ends of corrective patterns resulting in low risk entries with huge upside potential.

Lower Time Frame Analysis

After our higher time frame analysis we drilled down to a smaller time frame where we applied advanced Market Geometry techniques to define our corrective pattern and pinpoint the possible termination point.
The lower time frame chart shows how we used the Alan Andrews Pitchfork as a market geometry tool to assist us in our trading decision. Lower time frame charts also allow us to take a closer look at the underlying market structure as price unfolds.
Many traders might be familiar with pitchforks as most trading platforms provide them but it is a drawing tool that most traders do not know how to use properly. EPS course members use them extensively in their analysis and they’re featured in all of the EPS Trade Forecast reports.
From the chart above we can see that price touched the 100% Fib extension level and immediately moved downwards from there. Price made its way lower until an upward move started again on the 22nd September 2017.
That upward move ended in a lower high on the 25th September 2017 and again price dropped from there. It was at this stage that EPS members would have used their pitchfork tool to anticipate the end of this corrective pattern. Using the correct pitchfork settings we connected 3 price points i.e. the high at the 100% Fib level to the low on the 22nd September with the final lower high on the 25th (indicated with red arrows).
We then proceeded to label those price points as A and B and then anticipated the end of the Single ZigZag correction to end in point C. Our smaller time frame chart shows clearly how price reached the lower blue line of the pitchfork not once but twice.
Our actual entry opportunity presented itself at the second touch of the lower blue pitchfork line (green arrow) as all trades need to meet certain entry criteria. This is pivotal to our success as we need confirmation first that price is getting ready to reverse.

Entry Time Frame Analysis

The final piece of the puzzle is to look at an even smaller time frame to pinpoint and confirm certain entry criteria. Once all of our criteria are met EPS members typically get to enter trades with very small risk versus high reward potential.
The entry time frame chart illustrates some of the criteria needed to qualify an entry. The first criteria would be momentum divergence which indicates a deceleration of momentum as price reaches the lower blue pitchfork line. The second criteria dictates that we need to spot some sort of reversal candlestick pattern as indicated by the red oval.
Our last criteria involves risk management and target placement. EPS members know where to place their stop loss orders (risk) and which target price to aim for ahead of time.
On the entry timeframe all of our criteria were met and members had the go ahead to place entry orders as shown on the chart.

Trade Results

In our EPS Trade Forecast trade report dated the 28 th September 2017 we had the pleasure to reveal the outcome of yet another fantastic trade.
The chart above just shows how well that trade did. During the report that got members into this trade, we told them that they needed to place their profit target at the 112.600 price level, just slightly below the high from where the Single ZigZag correction started from.
It turns out that the entry was the exact point from where the correction ended and price moved strongly upwards soon after reaching the profit objective early on the 27 th of September.
With a very small stop loss order of only 5.7 ticks members of the EPS course had the opportunity to bag a massive 105 ticks in their favour! That is a reward vs risk ratio of just over 18 to 1. These are the kind of trades that can really boost your account balance and your confidence.
There will be times that we are wrong and take losses but when we are right we are right big time and that is what we aim for in our course. Large profits with  low risk.

Conclusion

Our result on the USD/JPY just goes to show what is possible when you take the time to understand how price action works and have the skill set to apply the right technique to the opportunity.
Our Exponential Profits System Course empowers traders to learn the skill set necessary to be profitable in today’s markets and to make sense of what is happening on your charts.
There is a learning curve involved when working through the course material as nothing in trading comes easy but we are dedicated to help our members every step of the way and have a support team in place to answer any questions related to the course.
If you are serious about taking your trading to the next level then be sure to check out the EPS course, and invest in yourself.
We hope that you enjoyed this article as it offers a glimpse of what is possible with the Exponential Profits System.
Until next time, happy trading
Richard K
Exponential Profit System