Here is how to get 900 pips in the following days

Pareto in trading

How is your trading going lately?

You know what is what I like most about the Forex market?

Diversity.

There are plenty of currency pairs and most of the time, you’ll find a few good opportunities.

And if you have been following me for a while, you know that the key to get good results on any market is how you choose the instruments to trade.

You could be using the best entry system in the world, but you are trading the wrong currency pairs, the market will move against you.

On the other hand, if you have an average entry system, if you are trading the right currency pairs, sooner or later, the market will move on your favor.

That’s the reason I think you should spend at least 80% of your time analyzing and choosing the best currency pairs to trade and only 20% actually looking for your signals.

Remember that: 80% analyzing, and 20% actually trading.

Sounds good?

The idea is to find the currency pairs that have clear swings & clear levels on both, the short term and the long term charts.

Once you have that information, you know what the market is doing, and most importantly, what it is likely to do.

Now, you’d also have more benefits with that.

If you are only trading the currency pairs that you feel most comfortable with, you’d also feel more confident with your system and you’d be able to trade it with more discipline, which helps you get consistent results.

And my friend, that’s what we are all after… consistente results.

So please, make sure you are doing your analysis before placing any trade.

Anyway, here are a few currency pairs I’m currently trading/monitoring.

GBPNZD Analysis (900 pip opportunity)

This one is probably the currency pair I like the most. First let me show you the long term chart:

GBPNZD Daily

The GBPNZD is currently trading 900 away from the next LT resistance level, it already has been rejected from the support level, so you know it is likely to continue its way up, at least until it reaches the next LT resistance level, which is at 2.0812

It’s got plenty of profit potential, but what I like the most about the GBPNZD is that, when it moves, it really moves, and pretty fast.

So it’s always a good idea to try to catch those swings. And as you can see by looking at its daily chart, those swings are pretty clear.

So please, go to the short term charts and look for your entry.

USDCAD Analysis

Here is what the daily chart is showing us:

USDCAD Daily

Its clear that the USDCAD is trading in a range. And you know how to trade a range don’t you?

Right now, its being rejected from the top of the range, which means that it is in a bearish condition, which means that we should be looking for short opportunities.

So my trading plan for the USDCAD is to look for short opportunities at least until the USDCAD reaches the next LT support level which is at 1.2409.

Now, don’t worry about the entry system, you can use what ever system you feel comfortable with. I prefer to use price action, but you can use indicators, Fibonacci, even Gann if you want to.

Just make sure to look only for short opportunities (and ignore all long signals).

AUDUSD Analysis

The Aussie is trading near an important level.

Now, you need to be careful here. When the market trades near an important level we need to be very patient.

Here is how the daily chart looks like:

AUDUSD Daily

As you can see, its trading near the support level at 0.7630. We still don’t know whether the market is going to get rejected from here or break through that level

But you know what, we don’t need to know… What I do here, is look at the short term chart, define the SF Box, and then create my trading plan.

Here is the 30M chart:

AUDUSD 30M

And there it is… my trading plan is this:

Once the market breaks through the upper ST resistance level (0.7659), I’ll start looking for long opportunities.

Once the market breaks through the lower ST support level (0.7589) I’ll start looking for short opportunities.

If the AUDUSD keeps trading inside the range, I stay on the sidelines.

Sounds like a good plan?

Your Turn

What do you think about the 80-20% rule? Do you spend at least 80% of your time analyzing?

Are you currently trading any of the currency pairs mentioned above?

What other currency pairs are you monitoring?

Share your thoughts.

Tags: , , ,


Raul Lopez

I’ve been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .


  • hira

    I think here is a good selling oppitunity …

    • hira

      noo good 4 hour 1 hour signals to get short althou I think we could be closing as a bearish pin bar …

      • Raul Lopez

        Hello Hira, dont worry too much about those pin bars… the market condition is what is most important!

        • hira

          sorry buddy I have no choice as I take 4 different setups and I must have a signal to complete my checklist in order to trade or I just jump on the next bus on another pair … I know they work without signal at the zones I point out but I don’t blind entry not in that way any way I have a different way to blind entry but it has certain criteria in order to set the order blindly …

  • hira

    heres my thoughts on this pair … what do you think raul ?

    • hira

      there is another reason but is copy write and can not say please under stand ? lol

  • hira

    hi raul im still taking shorts but this trend is still intact and I will sell on 1 hour four and daily charts sell signals if they occur .. heres the weekly

    • Raul Lopez

      Hello Hira, thank you very much for your charts!

      I see that you like to take your trade off the long term charts… I only use them to define whether I’m going to trade them or not…

      Once I find a good opportunity, I look for my entry on the short term charts!!!

      Let me know if I can help you with anything else!

      • hira

        I do trade the these levels ect after these occur and its clear by eye I move into the smaller time frames and trade in that direction back in to the lows or highs if I get a clear signal I will take the trade right on the level on candle close or pending small retrace order …

        • Raul Lopez

          Ok, I see what you mean now… I thought you were taking your signals off the long term charts…

          • hira

            I still most prefer to trade in the dominant trend direction but there is always a ct trades in the process same method but in the near term levels / smaller tf levels to provide entry signal … in counter dominant trend trades …

  • Brian D

    Thanks again for sharing Raul. Cool charts. Indeed looks like a GBPNZD significant bounce off support. Also in USDCAD appears to be a significant Daily seller (wick) candle off resistance and confirmed seller sentiment following. Price behavior tells the story. “There’s always a story” :) Good people like yourself are an encouragement to the Forex community!

    • Raul Lopez

      Thanks Brian, let me know if I can help you with anything else!

  • Chad Hogan

    Yep Gbpnzd is definitely 1 of my favourites at the moment. Im looking for long opportunities also. Usdcad.. Well I left that 1 alone because I wasnt convinced of that last rejection on the long term charts. I could very well be a rejection. Anyway Im still long on Gbpaud and are looking for shorts on Ausnzd. Do you like Audnzd Raul?

    • Raul Lopez

      Hey Chad,

      For sure Chad, the AUDNZD is trading at historical lows, so yes, I’m also looking for trade opportunities on that one… just waiting for the short term charts to give me clearer levels…

      USDJPY and NZDUSD are also good opportunities.

      So there are plenty of chances out there… arent there?

      Good luck Chad!

      • Varahala Babu

        hi raul….from your strategy in order to trade AUD/NZD it should have next support level in the AUD/NZD pair, so on which basis would you look for trade opportunities to go short ? and for usd/jpy ?

        • Raul Lopez

          You need to look for trade opportunities on the short term chart, clear levels, etc.

          I recently wrote two articles about the types of entries that I take… Maybe you can refer to them!

          Let me know if I can help you with anything else!

          • Varahala Babu

            thanks raul…those 5 articles are very useful to me

  • Desktop

    All the systems have profitable scenarios and also ALL have negative. Do you agree with Raul ? Great, awesome and other epithet can be used ;) GBP/NZD.. yes please, go on, if you are blind for a fundamental news ;) that is the same if I will throw a coin and will say that it will go UP, the other guy will say go DOWN.. one of us gonna win ;) On top of that.. if he (Raul) is doing his lessons and giving the opportunity/ advises how to earn the money for the casual guys like me, obviously the other question is emerging.. why he needs money for the private lessons/web sessions and etc.. ??? If you are earning good money from the trading, why do you need money for doing training classes ? if you are doing enough money for yourself, why do you do trainings for the others and asking money for that ??? :) ok ok… why I, who is doing 20 % of my account every month neither creating learning sessions nor teaching others ? the answer is simple- the guy who lost everything is trying to teach others.. this is his business to recover his account and bring his wife/fiance/girlfriend to Bahamas :))) and you guys are “blind of his insights” and giving this opportunity to him.. and at last.. he is laughing from you ;) good look… use your own methods/strategy, not these which are 80% or 90% or 100% accurate (there are no accurate systems) ;) be on your own !!! I know for sure, that no one, who is doing GOOD money is not sharing his methods to everyone.. only if he wants to make profit from you !! ;)

    • Raul Lopez

      Hey Vytautas,

      I respect your point of view!

      Good luck!

    • Eric Aroh

      Desktop,

      You sound/taste like sourgrapes.

      Raul does not actually ask you to trade whatever pair he identifies ….he points you to a possible trade, for your evaluation, analyses, and contribution towards the forum’s progress – where we are supposed to share ideas/trading methods.

      As for asking for more money for his trainings – I have to say that it costs him, money for the internet connectivity, and his time away from his trading and family life. If you notice, one thing he has kept (us) waiting is his trade entry signals and systems. I have developed mine, and I watch what pairs he is watching. I am not compelled to trade those pairs – I trade them when I am comfortable.

      I am proud to say that listening to him has provided me more than 5,000 pips gain, in less than one (1) year.

      I will like to share your trading systems/methods/signals, etc, for free. Please I am waiting to receive them. Of course I will not be compelled to follow them, ……, I will use my knowledge to choose what I follow.

      I am not holding brief for him, he is at liberty to comment on your posting.

      Kind Regards, and God bless you.

      • Raul Lopez

        Hey Eric, thanks for that!

    • Tania

      Previously to being mentored by Raul I had tried every indicator/combination/time frame there is. My a/c was up and down like a yo-yo but more to the downside. I was confused and disheartened. I now trade with confidence and clarity and am seeing consistent profits.
      Thankyou for your mentoring Raul
      Tania

      • Raul Lopez

        Thanks Tania :) How is everything?

        • Tania

          Hi Raul, all is well thankyou :) I was already short on audusd break of support on 27 March, was up over 200 pips but fell asleep waiting for non-farm payroll fri night, I had already moved my stop down and it took me out for 95p profit. Lesson learned……don’t fall asleep haha. Im also short on audnzd currently up 115pips and I had my gbpaud trade taken out with news, (while I was asleep) it moved straight through my stop and closed my trade right at bottom of candle before moving straight back up, slippage?
          Oh and congratulations on your Ironman finish what a defeat!
          Tania

    • Jade

      Desktop,

      Raul gives a lot of his time giving free information to anyone who wants it. Raul teaches people to fish so that they can feed themselves for a lifetime. With just the free information available, traders have seriously turned their trading success around for the better; And you can count me as one of them.

      Raul’s in depth training sessions require even more time commitment than his free information I would assume. This is time away from family, friends, and relaxation. Why should he not be able to charge for this sacrifice of his time? Do you give away massive amounts of free time to charity?

      If you are wondering, Raul already does give free lessons to charity that are very valuable. The free information is the type that a lot of other people try to sell you and we should be thankful that Raul is so generous with it. It is not fluff and filler information meant to lure you into paying for the lessons. It is already the real deal!

      If you came here looking for a hand out instead of a hand up with trading, then I think you will be disappointed with any and every website you go to.

      I think you should be apologizing to Raul for insinuating that he is a fraud.

      Jade

      • Raul Lopez

        Thanks Jade! I appreciate it!

    • hira

      are you mad because you have no faith in a system yet ? it takes time to develop and trust a system with money management .. he has a real system that is doing the same thing over and over and that’s why when people develop this and stick to there plan they make money I only need to win 30 percent of my trades to make a profit – { 20 000 trades I only need to win 6000 } good luck mate … thanks raul for your kindness and honesty , method …

      • Raul Lopez

        Hey Hira, Thank you very much!

        • hira

          become a master of your stratergy … see my stratergy is very simular to yours raul but I follow price in the 1 hour charts up wards I don’t go any lower and I also do the same thing over and over so I know what to look for where to look for it and how to enter it , and exit … that desktop dude will learn after a few blown accounts weve all done it ihave blown my accounts 6 times when I started out … that was all indicater stratergies then I stripped them off my charts now im making them pay … lol

          • Raul Lopez

            Yep, our strategy is similar…

            Thanks!

    • Varahala Babu

      hello desktop….read the article carefully and understand it…..raul didn`t mentioned about 80 % or 90 % or 100 % that his strategy will work out. he mentioned about the 80% of time you need to do for analysing and 20 % of time to actually look for trade opportunities…..and please note that he didn`t mentioned you about recommending or suggesting you to take his course….from the way i see the course it`s most useful and the method he was explaining to us was most proven to reach successful trading goals….the only thing he`s doing was helping other traders to reach his/her trading goals….use your original name instead of desktop and just remove the virus from your desktop or install antivirus . then you will be formatted and come in line to look for a strategy that will work

      Good luck desktop

      • Raul Lopez

        Thanks Varahala!

  • Jade

    Raul,

    Great article that helps support what I have already
    learned from you. The 80/20 also helps me to remind myself that I don’t need to trade every single day.

    I have one question that I have been itching to ask
    for a while now. I understand what an SF Box is and how it works; but
    what does the S & F stand for? I never could find that out and it’s
    been driving me crazy!

    Thank you

    • Raul Lopez

      That’s correct Jade, we dont need to trade every single day, we just need to trade when the odds are in our favor.

      SF stands for StraightForex… hehe

      Good luck!

  • Eric Aroh

    Raul,

    As usual, thanks for sharing the pairs you are watching. It supports my actions that somehow I am doing something right – in this forex trading.

    The Pareto principle basically supported the notion that (only) 20% of the traders actually make money, and can be drilled down to selecting the trades one gets into after spending 80% of the time selecting the correct currency pairs to trade. I fully agree with this principle. It also supports the notion that 80% of the time that currency pairs trade in a ranging mode, with 20% trending (up or down). I can go on, and on, ………

    On the GBPNZD pair, these are my observations (and conclusion):

    * My LT horizontal S&R (1D) are @ 2.0784 and 1.9378, representing circa 1,000 pips, but a Long Wick Candle indicated rejection at 2.0000 (psychological resistance level); this indecision candle made me to drill down to the 30-min chart

    * 30-min chart indicates the price action to be bearish, and heading to 1.9827 support (a tradable 173 pips – but I won’t go against the current LT trend). I am only looking for LONG trades.

    * I will start looking for LONG trades after viewing the price action at this support level (1.9827); that is if it bounces up, or did not break that level. If it breaks through this ST support I will watch it a little longer, and watch if it heads back down to 1.9378.

    * I believe that in the next few hours (tomorrow morning Nigerian time – GMT + 1) the picture will be clearer, and I will follow the market – instead of guessing.

    Thanks for giving me the opportunity to view the trades that you are watching.

    • Raul Lopez

      Hello Eric,

      Nice to see you are doing great!

      The Pareto principle can be applied to a grand variety of concepts… and most of the time it is right… For instance, what I have also noticed is that 80% of my profits come from 20% of my trades…

      Thank you for your analysis… I see that its retracing back in the short term chart, but just a little, we are still trading in a bullish condition, and I’ll keep looking for long opportunities.

      Thank you again for your through analysis.

      Good luck!

  • Nadi

    Hi Raul.
    Thanks again for your articles.
    Will you be explaining about the entry method for your system as you said in the first place?

    Looking forward to hearing from you

    • Raul Lopez

      Hello Nadi, I already did… take a look at my previous posts, I explain both types of entries…

      Let me know if you need anything else.

      • Nadi

        I’m sorry Raul, I couldn’t find which article exactly you are pointing to.
        Would you please give me title of article.

        Many thanks

        • Raul Lopez

          I dont recall the exact title, but they I know I refer to them as retracement signals and the other article as breakout signals…

          Just look at my previous articles and you will find them!

          Good luck!

  • David

    ON GBPNZD, the bottom wick from the candle formed on the
    4th of March (2,00519 – 2.01100) could become a support turned resistance zone.
    We are just below this at the moment.

    • Raul Lopez

      I picture would be helpful here…

      Cheers,

      • David

        Ah sorry Raul, didn’t know I could add pictures. I’ve left my indicators on, I know you like them (I’m kidding!).

        • Raul Lopez

          Hey David,

          Thanks for the image!

          I see what you are saying now… you know, it might. But I’m not considering it because it was just a small retracement.

          The ones that I take in consideration are the ones that make the market change direction, like the ones you at the top or the bottom of the range!

          Makes sense?

          Cheers,