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The Vanilla Trade in a nutshell..
This Trading Pattern is the reason why FXMoneyMap was invented. This is another Trading Pattern that is regularly traded by many Traders with a reported a success rate as high as 72.4% from a recent survey. This type of trade requires a bit more practice to get right because the patterns can occur multiple times throughout the day, however after a little experience traders can learn to pick out stronger patterns that carry less risk. This particular setup will arise more often than other setups. So once you've read this page and requested the full strategy pack (links below) including videos and full instructions, you can start cartelising on this strategy immediately.
What you need?
For this Trade you will need a Grid with the 1 Min and 5 Min Charts.
The Criteria depends on if the Vanilla Trading Pattern is a Buy Setup or a Sell Setup.
The Vanilla Trading Pattern as a Buy Setup
This trading pattern aims to give you an entry and exit when the market price is intended to move upwards.
To identify a currency pair in a vanilla condition the 1 min MAs should be leading the 5, 15 and 60 min L1 and L2 MAs.
In more detail, The 1min time lane L1 & L2 MAs (Green Boxes) should be higher than the 5min L1 & L2 MAs (Green Boxes), which in turn are higher than 15min L1 & L2 MAs (Green Boxes), which again are higher than the 60min L1 & L2 MAs (Green Boxes),
The remainder of the criteria:
Once you Successfully identified the Vanilla Trading Buy Setup, The Market Price should be near the 1 minute Support (Green Box). All Other Supports i.e., in the 5min, 15min and 60min time lanes should be below the Market Price. There must be at least 2 clear time lanes above/ahead (with no MA Black figures Resistances or Red Boxes), however 3 or even 4 clear time lanes are preferred. The Support Area should show a clear Entry (Buy Area). Finally, there is a clearly defined Exit (Target Area). The optimum stop loss will be around or around or below the lowest 60min L1/L2 MA Support.
See examples below.
The Vanilla Trading Pattern as a Sell Setup
This trading pattern aims to give you an entry and exit when the market price is intended to move down wards.
identify a currency pair in a vanilla condition the 1 min MAs should be leading
the 5, 15 and 60 min L1 and L2 MAs.
In more detail, The 1min time lane L1 & L2 MAs (Red Boxes) should be lower than the 5min L1 & L2 MAs (Red Boxes), which in turn are lower than 15min L1 & L2 MAs (Red Boxes), which again are Lower than the 60min L1 & L2 MAs (Red Boxes),
The remainder of the criteria:
Once you Successfully identified the Vanilla Trading Sell Setup, the Market Price should be near the 1 minute Resistance (Red Box). All Other Resistance i.e., in the 5min, 15min and 60min time lanes should be above the Market Price. There must be at least 2 clear time lanes below/ahead (with no MA Black figures Supports or Green Boxes), however 3 or even 4 clear time lanes are preferred. The Resistance Area should show a clear Entry (Sell Area). Finally, there is a clearly defined Exit (Target Area). The optimum Stop Loss will be around or around or below the Highest 60min L1/L2 MA Support.
Vanilla Trade Buy Example on GBP/USD
|Figure 1 - Setup identified & Trade entered||Figure 2 - Four mins later Setup is at Moving up (towards target)|
|Figure 3 - Six mins later Setup has reached target (Exit Here)|
GBP/USD Bounce Trade Explained
The GBP/USD Grid in Figure 1 is illustrates that the price is moving in an upward direction and is likely to continue to move up. As the price moves up, the Supports in the 1mim time lane L1 & L2 A Green Boxes follow the price and continue to act as supports. During the duration of the trade, the 5, 15, and 60 min time lanes L1/L2 MA Green Boxes are also going to move up as the price continues to move upward. The idea of the Vanilla trade is to highlight a 10-20 point gap between the price going from its 1 min time lane L1 & L2 MA Supports (Green boxes) up to the next Black MA Figures Resistance Figures.
Identifying the Setup & Entering the Trade
Figure 1 shows the 1min time lane L1 & L2 MA (Green Boxes) are leading the 5, 15 and 60 min L1 & L2 MAs and are in the correct formation to make it a Vanilla Trade Pattern Buy Setup. There is major support to Green Boxes across 5, 15 and 60 min time lanes to prevent price to go down. The immediate Entry is at 1.9520, However if the price continues to go down before it continues to go up then there are Buy Entries at 1.9514, 1.9507 and 1.9492 (the latter would be the best entry the price, as more pips would be made but the price is not guaranteed to go down that far). The immediate Stop Loss is 1.9492 or below (depending on your entry).
Using the Grid a Buy Grid has been identified. Now to check off the criteria looking at Figure 1...
Yes, it meets all the Criteria:
Price Action After Entry Point
Just Four minutes after the Screenshot from Figure 1 was taken, Figure 2 Shows that the price has broken the two Black Figure Resistances in the 1 and 5 min time frame lanes moving away from the 1 min L1 MA Support Green Box . A combination of the price moving upwards with the 1 min L1 and L2 MAs Supports also moving up causes the Black Figure Resistances in 1 and 5 min to be broken easily. Now there is no clear obstacle to reach the desire target of 1.9545.
Price Action Approaching Exit Point
Another Six minutes after the Screenshot from Figure 2 was taken, Figure 3 Shows that the price has passed the 1, 15 and 60 min time lane Black Figure Resistances and is currently at 1.9546. The Target Exit has been reached. The price is likely to stick at this area (possibly go down a little) before it possibly continues to go up.
This Trade was taken live by an FXMM Trader who achieved the following outcome:
Entry: Bought GBP/USD @ 1.9520
Exit:: Bought Back @ 1.9546
Size: 2x Standard Lots
Profit /Loss in Pips: +21 pips on 2x Std Lots (effectively 52 pips)
Profit /Loss in Monetary Value: $520
Trade Duration: 10 Minutes 33 seconds
See For yourself this trade and other examples available below in video format. Results from more trades using the FXMM trading Patterns really work. We publish live updating Trading History via Trading Statements and Trading Log Links below...
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