I'll be scouring the charts for "actionable masterpieces". These will be signficant chart patterns or set-ups that I feel are not only tradeable, but also have a high probability of making big profits with little risk. Whenever I spot an "actionable masterpiece", I will post an annotated chart (my chart art) along with an explanation. My goal is to help you learn how to spot these low ocurring but highly profitable "actionable masterpieces" yourself.
EUR/USD
EUR/USD
Daily Chart
In a nutshell, the pair fell, bounced off its pink 50 EMA, then bumped its head on the top Fibinnel line. The 50% Fib line and the top Fibinnel line are resistance for now. If it's able to break above its 50% Fib line, I expect the pair to test its purple 200 SMA again. I'm looking to sell the pair if it can close below its blue SMA. I will take profit at the bottom of the channel and place my stop above the bottom Fibinnel line.
4 Hour Chart
Check out that purple 200 SMA. That's what you call a support floor! Too bad it hit resistance at its bottom Fibinnel line. I'm going to sell this pair now. I'm placing my stop above the middle Fibinnel line. I'm going to target the bottom of the channel but will trail my stop to lock in profits once my trade is in the money.
The pair has found temporary support at its 62% Fib line and purple 200 SMA. But I doubt that will last long. Check out how the pair couldn't sustain its breakout of the 38% Fib line. I see a really good trade here. Sell the pair now. Place your stop above the blue 100 SMA, where I've placed an “X”. Take profit at the 76% Fib line which I've marked with a “$”.
1 Hour Chart
This chart is a thing of beauty. The 50% Fib line and blue 100 SMA are acting as very good resistance areas. If the pair can close below its 24% Fib line, you can short the pair and target the swing low area. Your stop would be placed above the 50% Fib line. If the pair can close above its 62% Fib line, go long and shoot for the purple 200 SMA. Place your stop below 50% Fib line.
GBP/USD
4 Hour Chart
It's still trading within the triangle…like I said it would. I'm either a genius or a lucky son-of-a-gun. Probably the latter. I'd prefer a short trade here. If the pair can close below the bottom trend line, I will sell the pair and target the purple 200 SMA. Your stop would be above the 50% Fib line. You could also buy the pair if it closes above the upper trend line.
1 Hour Chart
Well well, what do we have here…another triangle but this time on the 1-hour chart. The trades are pretty straightforward. Buy when the pair closes above the upper trend line. Place your stop below the purple 200 SMA. Your first profit target would be the upper black horizontal line. You could cash out here or trail your stop and try to get richer. Sell the pair if it closes below the lower green trend line. Place your stop above the purple 200 SMA. Your profit target would be the lower black horizontal line. Again you can decide to cash out here or trail your stop and try to grab some mo' pips.
USD/JPY
Daily Chart
You should've already pulled the buy trigger on this chart because the pair closed above its 24% Fib line. If you haven't, it's not too late. You can still buy if it's still close to the Fib line. Be careful of your risk-to-reward ratio. If it's too high to enter, then don't. I'm already in this trade. I've placed my stop below the 38% Fib line. But where do we exit for a profit?
We find the answer by using Fibonacci extension levels. Depending on your level of greed, you can take profit at the pink 62% Fib extension line or trail your stop and go for any of the higher Fib extension lines marked with ever growing dollar signs.
4 Hour Chart
Here's a sick looking chart. For those of yall who aren't in enrolled in the School of Cool, “sick” means “good”, just like “bad” meant “good” in 80s.Will this pair actually rise all the way up to its 100% Fib extension line? I think it will. An aggressive trade would be to buy this pair now and go for its 100% Fib extension line at the 120.30s level. Place your stop below the 38% Fib line, preferably below the 118.00 since big ol' round numbers also act as natural support levels. I like this trade. Very low risk. But huge possible gain. Dats ill yo.
1 Hour Chart
Check out the support levels. First, the blue 100 SMA, then the pink 50 EMA, and now the top Fibinnel line of the ascending channel. An excellent trade on this chart would be to buy the pair if it falls and touches the top Fibinnel again. Place your stop behind the pink 50 EMA or the middle Fibinnel, whichever is lower. Take profit when it bumps its head at the top of the channel.Keep an eye on the non-farm payrolls report tomorrow. If it's extremely positive and beats market consensus, the pair will rise and blow through the top of the channel. So if you're still in the trade prior to the news release, you can either cash out before the report comes out or tighten your stop to lock in the profits you already have and give yourself the opportunity to grab pips hand over fist.
