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The EURUSD Failed Technical Turnaround Day Trading Strategy

Use a 1-minute EURUSD chart for this day trading strategy, during the London and/or US session. The strategy is best applied between 3 AM EST and noon EST. A failed technical turnaround occurs when a technical turnaround fails (read that article first). We have isolated a trade trigger for the technical turnaround, but instead of…

Use a 1-minute EURUSD chart for this day trading strategy, during the London and/or US session. The strategy is best applied between 3 AM EST and noon EST.

A failed technical turnaround occurs when a technical turnaround fails (read that article first). We have isolated a trade trigger for the technical turnaround, but instead of moving in the new direction, the price moves back in the old trending direction. In other words, the turnaround or trend-direction-change failed.

The technical turnaround (“tech turn” for short) typically produces a number of trades during the timeframe. By incorporating failed tech turns we get more signals, which means more trading opportunities. Add in the EURUSD Session High Low Strategy for more possible day trades.

Failed Technical Turnaround Day Trading Strategy

To understand the failed tech turn, we need to understand the setup for the tech turn, because only one thing changes. Here is the setup for the tech turn.

1. That basic concept of the strategy is that we need to the price to move back up to near a prior swing high after a decline, or back down to a prior swing low after a rally. [This is what indicates a possible trend change.]
2. The price must then make at least one small price swing before consolidating. [This price swing can’t move far enough to trigger a tech turn in the other direction…because then we have a setup going the other direction.]
3. The price must then break out of the consolidation in the expected direction to trigger a trade.
4. A stop loss goes just outside the opposite side of the consolidation.
5. The simplest profit target is placed at a 2:1 reward:risk. For example, if risking 3 pips on a trade (approximate height of consolidation), place a profit target 6 pips from the entry. If risking 6 pips, the target goes at 12 pips.

For the failed tech turn, everything stays the same, except number 3. Instead of breaking out of the consolidation in the newest direction, it breaks out in the old trend direction.

A tech turn is a possible trend reversal price pattern. But the trend may sometimes look like it is about the reverse, but then the old trend continues.

It is also possible that the tech turn will trigger, but then fail to reach the profit target, turn the other way and trigger a failed tech turn.

Below is an example of a failed tech turn. A swing low is made during an uptrend. The price drops back to that swing low. This is the first sign of a possible reversal. An uptrend requires requires higher swing highs and higher swing lows, so once the price drops back to the prior swing low, the uptrend is in possible trouble.

There is another price swing, and then we are waiting for a consolidation. If this trend is to reverse to the downside (tech turn), the price needs to break out of the consolidation to the downside. It doesn’t. It breaks to the upside. Go long, in the direction of the overall uptrend. The price trend didn’t reverse.

failed technical turnaround strategy in EURUSD

A 2:1 profit target is used, and a stop loss is placed just below the consolidation.

If you decided to trade for a 12 period, below is how your chart could look on a given day. There were lots of trades this day; more than usual.

technical turnaround and failed technical turnaround day trading strategy examples in EURUSD

Assuming a risk of 1% on each trade, losing trades are -1% to account equity, and winning trades 2:1) are +2% to account equity.

Here’s more examples of how these strategies are used together.

technical turnaround and failed technical turnaround strategies with descriptions on chart

Don’t be Discouraged If This Looks Hard

Did you look at the charts and scratch your head? That’t totally fine, and expected. We need to train our eyes, and our brains, to see these types of patterns. I don’t see them all and I have been trading this way for years. I still look through my charts at the end of the day and say “How did I miss that one.” Yet even if you miss a few trades, there are still lots out there you will see…with practice.

I suggest you print off the chart examples (rotate them vertically and then print them, so they are nice and big). Study them. Ask yourself “What the hell is he doing?” Look at the price waves, compare them, and then you may start to understand a trade.

Then you may be able to spot one or two. Then you start noticing more. It is a process.

Some Additional Notes on the Failed Tech Turn Strategy

Look for examples of the strategy on your own charts, then decide how you want to utilize the strategy. Create your own personal rules and checklist. Practice in a demo account and make sure you can trade the strategy profitability before attempting it with real money. This strategy requires thinking ahead and quick reflexes.

I typically use market orders (with a target and stop loss attached) to buy or sell when the trade triggers. You could also put stop entry orders (with target and stop loss attached) just outside the consolidation to be triggered if the price moves out of the consolidation.

As for whether the strategy works on other pairs or time frames, I don’t know. I only use this strategy on the 1-minute EURUSD chart. It may work on other time frames and currency pairs, but check it out yourself before attempting to implement it.

For help in understanding the tech turn and failed tech turn, its important to understand price action. Here’s a video on analyzing price action.

Cory Mitchell, CMT

Disclaimer: Nothing in this article is personal investment advice, or advice to buy or sell anything. Trading is risky and can result in substantial losses, even more than deposited if using leverage.

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Forex Trading Knowledge Questions and Answers

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Forex Trading Knowledge Questions and Answers

What Is A Demo Account?

Demo accounts enable new investors to test their ideas and learn how to use trading technologies without risk. Users can use the demo account to trade with simulated money and see what their returns would be if they traded with real money. Demo accounts are often used in schools and universities to teach investing and compete in trading competitions.

Demo accounts are commonly used by stock traders, currency exchange traders, and commodities dealers, but not by long-term investors. A demo account is less effective since the longer it takes to produce earnings from an investment, the more time it takes away from compounding real money.

How Does A Demo Account Work?

Using demo accounts, investors can practice trading on a platform without putting their own money at risk. You will not be exposed to the dangers associated with live trading platforms on a demo account. As a result, you can learn how platforms work without putting your money at danger.

A demo account guarantees that you will not lose money, but it also guarantees that you will not make money. To reduce risk when trading on the real market, traders must learn discipline and establish techniques.

How to Open A Demo Account?

In general, opening a demo trading account is pretty simple. Choose a Broker – Most brokers provide demo trading interfaces to help you become acquainted with the features and create techniques. Choose which broker to use initially.

Registration is necessary, and you must provide your personal information. Name, address, and financial information will be requested. Your identification will almost certainly have to be validated as well.

Once you’ve decided on a broker, you can install MetaTrader4. Once you have decided on a broker, you will require a trading platform. MetaTrader 4 and MetaTrader 5 are the most popular trading platforms.

You will obtain login details after registering with a trading program. You will be able to open an account.

How Long Do Demo Accounts Last?

Traders can use a demo account to test out a program for up to three months before deciding whether to purchase the complete edition. The three-month term is basically offered to guarantee that the prospective buyer has enough information to make them desire to buy.

Why Is It Necessary to Open A Demo Account?

What Are Advantages of A Demo Accounts?

Demo accounts are an excellent method to learn about various trading tactics and software. Paper trading is a lot safer way for a beginner investor to make technical mistakes than real trading. Investors can benefit from the customised trading software provided by each firm.

A demo account lets you to test methods without risking any money, whether you are a novice or an experienced trader. Trading on a demo account allows the trader to test the approach before trading with real money.

Even though many traders begin with equities, commodities and Forex can be profitable. The same strategies, however, may not be applicable in all three asset groups. A demo account allows experienced traders to experiment with several asset classes.

The Differences Between Demo & Live Accounts

A forex demo account is distinct from a genuine account in that it is utilised as a training account for traders to practise trading without putting real money at risk. Real accounts, on the other hand, use actual money, and traders put their own money at risk. A demo account enables users to trade with fictitious money in order to imitate the earnings they would receive if they traded with real money. Demo accounts are often used in colleges and institutions to teach investing and compete in trading competitions.

However, studies have shown that even if a person has obtained extensive trading expertise through the use of virtual accounts, things may turn out differently when real money is involved. Because you are not putting anything at risk is more accessible when dealing with virtual money than when trading with actual money.

Can I have Multiple Forex Demo Accounts?

You may be able to open up to five demo accounts depending on the broker. Some, however, provide up to 19 demo accounts. There is no way to predict how many demo accounts are available at any particular time. All brokers do not limit the number of demo accounts.

If your broker has a demo account limit, you can contact their customer service via email or live chat to request more demo accounts.

There are brokers who will only allow you to open one account of each type per email address.

As a result, you are not able to establish any additional accounts until you give them with another email address or open a new account. Traders do not benefit from this practise because it requires them to spend their resources on opening new accounts rather than allowing them to open as many as they like.

In most circumstances, you won’t need more than five accounts, and depending on your plan, one may enough.

In any case, you should practise on a demo account until you are really proficient.

Is A Demo Trading Account Free?

Demo platforms are usually free. There is no risk of losing money because you will not be dealing with real money. As a result, there are no deposits, withdrawals, or training fees involved.

How to Choose Forex Accounts?

Different accounts have different settings. Before you open a trading account, you should answer the following questions:

How much money do you want to put down? You should keep in mind that trading with money you cannot afford to lose is not a good idea.

What is your level of risk tolerance? If you are a cautious trader, you can open a micro account and trade micro-lots. However, if you wish to trade more aggressively, you should open a regular account.

Do you require any specialised equipment? Many forex brokers provide their best trading tools to its professional clients, which may include cutting-edge news analysis or access to a diverse set of indicators.

Once you’ve determined what kind of trader you are, your trading objectives, and your risk tolerance, you’ll be able to choose which account is best for you.

Can I Take Money Out of a Demo Account?

Unfortunately, the answer is no. Demo accounts are only for practise purposes. You do not deposit anything because the account is not funded with real money.

As a result, any profits you would have made would be ineligible for withdrawal.

Forex Trading Knowledge Questions and Answers

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AvaTrade introducing 3 new crypto pairs

AvaTrade introducing 3 new crypto pairs – updating 3 others

AvaTrade has yet again improved their cryptocurrency trading offering.

AvaTrade is introducing three new cryptocurrency pairs: NEOUSD, EOSUSD & MIOTAUSD in addition to the 15 crypto assets already on offer.

These new pairs have been available since July 1st, 2019 and provide an excellent opportunity to diversify your clients’ portfolios and increase their exposure to this vibrant 24/7 market.

Asset	Typical Spread	Leverage	Margin	Min Nominal Trade Size
NEOUSD	1.5% Over-market	2:01	50%	10
EOSUSD	2% Over-market	2:01	50%	10
MIOTAUSD	1.5% Over-market	2:01	50%	10

To unify their cryptocurrency instrument labels, They are relabeling their existing Ethereum, Ripple & Litecoin instruments, by replacing the existing instruments with new USD labelled ones:

Asset	Old Symbol	New Symbol
RIPPLE	XRP	XRPUSD
ETHEREUM	ETH	ETHUSD
LITECOIN	LTC_Mini	LTCUSD

These new pairs have also been available since July 1st,

The trading conditions for each one is identical to those of the older respective assets they replace.

Effective immediately, new positions are only available on the new pairs.

Avatrade Clients will not be able to open new positions on the old assets, but those already open will remain unaffected until July 29th.

Existing positions on XRP, ETH and Litecoin-mini that remain open on July 29th will be automatically replaced with corresponding positions on the new pairs, , at the same opening price and at no cost to clients.

as any broker that values their clients would do , Avatrade makes sure that the clients will not be affected by the change.

Visit Avatrade NOW

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Neteller Launches Cryptocurrency Exchange Service

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Neteller Launches Cryptocurrency Exchange Service

Neteller one of the most known Digital fiat currency wallet provider , has started allowing its users to buy, sell, and hold cryptocurrencies including BTC, BCH, ETH, ETC, and LTC.

They do this on the large scale with a pilot in 10 countries and soon another 50 countries to join . They understand that if you do this effort it will only succeed if you can do this on a global scale.

Neteller and Cryptocurrencies

Neteller is a service which is operated by Paysafe Financial Services Ltd.,

paysafe

founded in 1999, Paysafe Financial Services entered the market with the mission to provide an online alternative to the known traditional payment methods.

Most of the traders aiming us now neteller as one of the companies through which we made our deposits and if we had any profits also our withdrawals. A couple of years ago they left the Forex and Binary industry behind since the charge-back issue became just too expensive.

But as any companies knows, if you do not adept you die. The binary option market is all but dead and the Forex industry has moved also into the directions of the cryptocurrencies. thus, neteller understands that this is where the future is.

So Lasts week they announced that they are now offering a wallet with buy and sell cryptocurrency options.

As of today, Neteller users can buy, hold and sell cryptocurrencies via a recognized cryptocurrency exchange including bitcoin, bitcoin cash, ethereum, ethereum classic and litecoin, purchased using any one of 28 fiat currencies available in the Neteller wallet.

It may not seem so exciting but for many users that love this service it actually is. More and more currencies will be added making them an true exchange in the near future.

Now one is able to fund their neteller account through many different means (Mobile, Epay, Paysafecard, local bank deposits, and bitcoin)

We think that will make the threshold for many people, who would want to buy or sell cryptocurrencies, lower. This in return is a good thing for the overall acceptance of the cryptocurrencies in the mainstream of every day life.

Conditions for buying and selling cryptocurrencies through Neteller

The rates offered are somewhat in the lower middle of the current market making them go for the save route. The average market rates on the major cryptocurrency exchanges differ all in all not that much anyways, as this is not the main reason to choose to buy Bitcoin through Neteller

The minimum cryptocurrency purchase or sale amount is “approximately equal to 10 EUR,” the firm clarified, adding that the maximum amount depends on the transaction limits associated with each account.

When You open an account with Neteller you have to choose your default currency. This is of course for most people in accordance on their geographical locations, people in Britain will go for the pound most Europeans go for the euro and pretty much the rest of the work goes for the US Dollar, thou other currencies are available

The fee is 1.5 percent for purchasing and selling cryptocurrencies from wallets with EUR or USD as the default currency.

The fee rises to 3 percent for wallets with other default currencies.

Neteller | Why is this a good move for neteller and one that we should expect from other online Payment providers as well ?

At this moment till last week Neteller users can pay, get paid on thousands of sites, and send money around the world through their system.

The company claims to have “millions of point-of-sale, ATM and online locations” for users to withdraw or spend their cash.

Last July 25, Paysafe ( which as you remember is the company that owns Neteller and Skrill) announced that another digital wallet provider in its group, Skrill ( formerly known as moneybookers), started allowing customers to “instantly buy and sell cryptocurrencies, including bitcoin, bitcoin cash, ether and litecoin, using any one of the 40+ fiat currencies available in the Skrill wallet.”

We could now see that this was like their test run on this concept.

We do not know the numbers that Skrill produced since they offered this service but it must have been encouraging enough for Paysafe to include their flagship brand in this endevour.

We will see where this leads but we are hopeful that this is the next step in global acceptance to the cryptocurrency revolution. Let me know what you think