Forex Signals Weekly Performance Review
Last week the Volatility Breakout Components of our Forex Signals Program put in strong Performance on GBP.USD (+296 PIPS open profit), XAG.USD (+8355 PIPS open profit), with small open losses on EUR.USD (-38 PIPS), USD.JPY (-105 PIPS closed , -6 PIPS open) and Daily Intermarket (System 4), Intraday Intermarket Components (Systems 5 & 6) both consolidating recent gains.
Volatility Returning to the Forex Markets!
The British pound sold off sharply last week forming a wide range weekly bar to the downside and helping us to accumulate +296 open profit on GBP.USD in our weekly VBO Signals Component as mentioned above.
Note on the intraday chart below how GBP.USD opens and closes at opposite extremes for the week: this price action is very common on a wide range weekly move. Traders begin selling the pound versus the dollar Monday morning, as the move gains momentum long (and wrong) traders head for the exit and liquidate. The move gathers steam through to the Friday close with traders scrambling to close their long positions ahead of the weekend. (Please click chart to enlarge)
GBP Volatility Breakout Signals (Systems 2 & 3) – Please Click Chart to Enlarge
We see the same phenomenon on XAG.USD (spot silver priced in US$). Monday last week we pointed out to our Signals Subscribers in our Daily Market Update that XAG.USD had formed a narrow range Inside Weekly Bar and that a breakout move was likely.
XAG.USD Volatility Breakout Signals (System2) – Please click chart to Enlarge
Note how silver opens at the lows for the week and trades steadily higher as the week progresses. This is the same phenomenon as GBP.USD above but in reverse: Short traders begin to feel pain as prices move up and start liquidating their positions. Long traders initiate and add to their positions as the move gathers steam with shorts scrambling to cover their positions going into the weekend.
