For all of you using the G7 trading system its been a really good week, especially if you combine those signals with the candlestick patterns I’ve been talking about these last few weeks.  The week has been so good, that I’ve hit my monthly pip target already and the month is only three days old!  I’m fairly conservative though and only aim for between 200-400  pips per month (equates to 10-20% return per month), and in the last three days I’ve netted 354 pips, so I am not going to trade real money for the rest of the month as I don’t want to give back my profits to the market!

Lets take a look at the week so far and the trades taken and why I took them.  All of the trades were on the EURUSD or GBPUSD.  Lets take the EURUSD first.

The first entry signal was a classic G7 trade, there was a touch on the bottom bollinger band, and oversold stochastic, and then a reversal candlestick, in the form of a bullish engulfing candle.  This also coincided with the 100% Fibonacci resistance level.  The signal was obviously a buy.  The next important thing, once in the trade is to try determine where a likely take profit point would be.  I set mine to the 50% Fibonacci as  that level coincided with previous support/resistance levels.  I got in at the close of the bullish engulfing candlestick pattern and set my take profit to the 50% fibonacci level so the overall result was 53 pips.  It turns out that this was a good place to take the profit as the next candle was a reversal candle and if I hadn’t taken profit I would have ultimately been stopped out as the price retraced dramatically.  That retracement however allowed me make more pips as the retracement ended with another great entry candlestick pattern, the huge spike low candlestick.  This candle bounced off the 100% resistance of the Fibonacci.  I bought straight after that candlestick closed, and again, set the target for the 50% Fib level.  The trade resulted with me earning an extra 86 pips.  The final EURUSD trade I took was off the double spike low candlestick pattern.  My target for this was the weekly high price, rought 1.3640.  It hit this price during the evening so I had a nice suprised when I logged in the morning to see an extra 74 pips in my account.  You can see these trades on the chart below.

I also took a trade on the GBPUSD.  This trade was more of a long term trade, with the aim of taking a larger pip haul.  I got into the trade at the beginning of the week after a large spike low candle.  The trade steady increased (although at some points after being 70 odd pips up, I was down to 10 pips) but I persevered and closed it this morning with for a tally of 141 pips.  The trade seemed to be meeting some resistance and to I figured better to take a guaranteed 140 pips than give it back to the markets.  You can see the trade in the chart below.  If you’d like to find out more about the G7 system,and how to trade forex, checkout The Traders Club, you can click on ‘The Traders Club’ name at the top of this post to take you to the site.