WAIT !!!

2 TRICKY QUESTIONS For Your First before You proceed …

1)  How do You KNOW ” Whether ” A Trend Would CONTINUE In The Previous Direction ?

…ALSO

2) How do You KNOW ” Whether ” is it a REAL RETRACEMENT for a Trend Continuation ….

Any idea what is possibly the best answer to the 2 questions above ??

……Most of the ( struggling ) traders simply DO NOT have the answer at all for these 2 “ Tricky ” questions..

That’s why they would keep losing and losing while trading the market………due to the fact that they just cannot handle these 2 ” Tricky ” situations CONFIDENTLY…..

If You’re also one such trader who has been facing such challenges & dilemma all these while…..

…..Causing You to fail to achieve the trading success ( and Profits ) You truly want -  DUE to these 2 ” Tricky ” situations..

Then please read the entire article below as I share a few simple & effective solutions which You can use to  help overcome them in no time.

This is also the exact strategy I used to profit a total of 100 Pips from trading the USDCHF pair.

With this hint, I know there would be good SHORTING set-ups coming soon over the next few days.

So from that moment on…… I would begin to monitor for further HINTS & Price Actions showing in the market before I finally commit into a SHORTING trade.

Well….if You have been following my forex tips for sometime now.

You should already know that I am a very careful trader….

….. and I ONLY commit into a position provided there are ” multiple RELIABLE Price Actions ” in the market to support my intention.

Without appropriate and adequate ” Confluence ” from the market to support my intention….I would rather give that trade a miss…

….Than to jump in and just try my luck….

Not the way to do it if one is serious about succeeding in the long run.

Likewise for this USDCHF trade as well.

Let me show You every single ” Price Actions ” from the market that I took into consideration - BEFORE SHORTING this USDCHF pair next.

In order to do so, I will be monitoring for the price actions in both the 4 hourly & 1 hourly charts.

For now, I will be monitoring the 4 hourly until the market is getting ready to be SHORTED !

Here’s the first 4 hourly chart & what ” hints ” I look out for :

( click to enlarge )

The price movements within that 2 lines are what contributed to the BEARISH LONG CANDLE You saw on the daily chart earlier.

After that, price start to climb

( Retracement for the Trend Continuation ?? OR Total Reversal ?? We DON’t KNOW !! ).

So do I start to look for SHORTING Hints ??….. now that the price is in ( possibly ) a retracement after the bearish fall ?

NO…….NOT now though.

Because I need to ” confirm “ that there’s a high possibility of SELLERS in the market who are keen on SHORTING this pair further…

…BUT Aaron…..why need to do that ?

Here’s why :

You see………though I seen a BEARISH LONG CANDLE on the daily chart…

But the actual fact is that this USDCHF pair is on a long term BULLISH prevailing trend.

Here’s illustration to show You :

( click to enlarge )

So since I intend to SHORT this pair ….it means I am opposing the ” Prevailing Up-Trend ” in the market…..

By doing so…..

I need to be ” extra careful “ while waiting for as many hints as possible to confirm my SHORTING intention before jumping in.

“….so how do I confirm that majority of SELLERS in the market are willing to push this Down-Trend further ? “….

Simple..!

Just wait for the market to create a ” new LOW “…..on the 4 hourly chart.

Like this :

( click to enlarge )

And once a ” New Low ” is in placed..

It is indeed a good hint that the trend could possibly be pushed further by the Sellers ….” again “.

With the above… it is also my answer for the 1st ” Tricky ” question I prompted You at the start of this page.

Which is :

1)  How do YOu KNOW “  Whether  ” A Trend Would Continue In The

Previous Direction ?

But……..jumping into the market while spotting that ” New LOW ” is NOT SUFFICIENT for me to commit into a SHORTING position at this point though.

By doing so, I am NOT putting myself at an advantage that is.

With this advantage ….I mean this :

“..You want a proven & reliable set-up which enables You to WIN MORE than YOU LOSE…….most of the time !! “

What is that set-up ?

It is none other than a ” Price Retracement “.

So definitely having spotted a ” New LOW ” in the market.

We can only jump in for our SHORTING positions WHEN the price has Retraced to an appropriate level.

Remember this important fact : - Because it could be a total reversal instead of a retracement.

So it is really our responsibility to monitor every price actions closely and use them to help us confirm whether is it a retracement…..or a total reversal.

Do You know how ?

If Not….read on below please.

I shall share the important details which would answer the 2nd ” Tricky ” question too.

Which is this :

—————————————————————————————

That’s Right !!…..By taking advantage of a ” Price Retracement ” during a trending market…….the risk would be Minimal…..& at the same time the Rewards achievable would be Maximized………no doubt !

BUT…..

2) ….How do You Know ” Whether ” is that a REAL RETRACEMENT

for a Trend Continuation……..and NOT a ” Reversal ” ( that would

hit Your Stop- Loss ) at all ?

—————————————————————————————–

Here’s The Answer :

There are a few ” Important Hints ” that the market has to give me first…..in order to help me confirm that it is a Real Retracement . ( for this Bearish Trend Continuation )

————————————————–

1st Important Hint :

————————————————-

- The price has to retrace back ( as close as possible ) to the previous support level.

Like This :

( click to enlarge )

Without seeing the price hitting that ( important ) level at least…

I would NOT even consider shorting this pair again.

Why so…?

Purely because I like to put all odds on my side definitely.

That explains why I am never ” worried / fearful ” on any trade I decide to commit on.

That’s because I don’t compromise / deviate from my ” winning trading rules ” at all.

* smile *

——————————————–

2nd Important Hint :

——————————————–

- If price does gets there, it has to form price actions / patterns to show that Strong SELLING Sentiment is still in the market.

Like This :

( click to enlarge )

Price does RETRACED to the level I am watching out for.

( which is the level that coincides with the previous support level )

And even shown some sort of ” Buying Rejection ” at that level.

Which resulted in a ” Inverted Pin-Bar ” in the market.

These hints are being extracted from the 4 hourly chart.

So in order to monitor the more ” detailed Price Actions ” to help me get ahead of the majority…

I would drop to the next smaller time-frame which is the 1 hourly.

Here are the hints I am looking out before ” finally ” committing to the SHORTING position.

At this stage, I would consider it the ” most critical ” aspect of trading.

Due to the fact that if I commit one wrong analysis ( or trading on impulse )….it would result in a disappointing outcome end of the day.

Again…most ( struggling & failing ) traders actually DISLIKE this stage of the analysis because they would ALWAYS get very indecisive.

On FEAR that it would be yet another LOSING trade for them….just like the previous ones.

But trust me on this…

Once You KNOW what ” hints / price actions ” to look out for at this stage…

And then weight the Risk Vs. Rewards aspect….

There is really NOTHING to be fearful about then.

Because once You can confidently gather such ” Hints ” from the market in a Logical Approach Manner ….like me.

Your monthly results would be almost in the ” positive zone ” then.

Don’t believe ?

Put in the time and effort for now..

And then tell me about it in 2 - 3 months time ….* smile *

Do remember to try on a DEMO account if You’re doing that.

Or start ( really ) small if You want.

Trading on MICRO lots……with a starting capital of maybe USD$250.

Am sure You can afford to lose that amount if worst come to worst right !!

Just remember to ONLY use the amount that You can AFFORD TO LOSE !

—————————————————————————

1st Hint after dropping to 1 hourly chart :

—————————————————————————

( click to enlarge )

The ” yellow line ” is the same line I marked on the 4 hourly earlier indicating the PREVIOUS SUPPORT LEVEL.

( just in case You’re confused by it.)

And the price movements within the 2 blue lines are what contributed to the ” Inverted Pin-Bar ” on the 4 hourly.

When I noticed this ” Inverted Pin-Bar “, it is already 12 midnight at the country where I reside. ( Time zone GMT + 8 )

So I really can’t do much because I need to sleep by then.

I normally do not stay up past 1230 on most nights.

Sleeping early and maintaining a regular bio clock is one essential aspect of being a ” Healthy ( Winning ) Trader “……..agree ? * smile *

For anyone still struggling and trying to achieve the success they want out of forex trading..

Then all the more they should get enough ” quality sleep ” of at least 7 hours.

Best to be between 11pm - 6am interval.

Not related to the strategy I am sharing today….but just thoughts of mine to share though. * smile *

So by the time I wake up the next morning…..

This is what I saw on the 1 hourly chart for this pair …

———————————————————————-

2nd Hint After Dropping To 1 Hourly :

———————————————————————-

Like this :

( click to enlarge )

One terrible thing that can make most traders ” rather anxious ” is to spot a potential set-up JUST BEFORE it is time for them to rest for the day.

If he / she is willing to stay up ……there is NO guarantee that the market would show the ( required ) potential set-up they want.

OR…

The market could be in the ” Retracement / Sideway ” stage for 8 hours or more straight off…….until the next day active trading hours.

NOW……..are You going to sacrifice Your precious sleep considering there are so many uncertainties involve ?

I for one….would NOT sacrifice my precious sleep definitely.

For this trade, I would use a ” Sell - Stop Pending Order ( with very tight stop-loss because I am not there to monitor the price actions ) ” to catch the bearish move…. if it does MOVE while I am sleeping !!

But since it did not get trigger.

I shall not talk about it here.

Reserve that for another strategy.

As a matter of fact, I would much prefer to avoid using a ” pending order ” as far as possible though.

Unless I am trading the much bigger time-frame and ride the long term trend which could last for weeks.

But then…….that kind of strategy would need a much bigger risk ( stop-loss ) too…..& the good set-up does not happen as often as while trading intra-day.

Again….more on that on another strategy on ” SWING Trading “.

For now……let me continue with my explanations.

Here’s the illustration to help You recap :

——————————————————————————-

This is what I saw on the 1 hourly chart for this pair …

2nd Hint After Dropping To 1 Hourly :

Like this :

( click to enlarge )

———————————————————————————-

So do I jump in to SHORT instantly upon seeing that bearish candlestick at about 10am ( GMT 0200 ) while I check the chart ?

Of course NOT..

Every single decision I made as regards to trading must be based on the actual Price Actions in the market.

Then for this critical moment of ” deciding WHEN to SHORT ” this pair..

What Price Actions do I look for then ?

Here’s the answer for You :

——————————————————————

3rd Hint After Dropping To 1 Hourly :

——————————————————————

( click to enlarge )

For the ” final ” market hint which I used to support my SHORTING intention.

I am using a ” Trend-Line Violation ” as an indication.

Previously, the ( green ) line acts as a support for the price movement at this period.

So once ” Violated to the DOWN-SIDE “….it is definitely a clear indication that the sellers are coming into the market again.

If You notice on the illustration above again..

I only use the ” 2nd Bearish Candlestick Closed ” for my SHORTING Entry….

This is so because I want to avoid a ” False Breakout ” out of that channel.

False Breakout is very common in any financial market ( perhaps due to to Stop-Loss hunting by the brokers )….so I always like to ” confirm ” that I do not get caught by it unnecessary.

Anyway, the price did not fall too far from the first candlestick…

So all good.

I SHORTED at the price of 0.89734.

( 2 separate Lots as usual as I would be executing the ” Partial Exit ” technique )

How about the Stop-Loss placement for this trade ?

Without entering a stop-loss, it is just like driving a fast car WITHOUT a functional braking system.

When I am WRONG about a trade and it’s direction, I would want to get out as soon as possible in order to ” limit” the amount of losses that would incur.

And NOT to hold onto a losing trade….and let it drag on and on……

When that happens……I might as well CUT loss ” earlier “…and ride on the other side of the REAL trend……right ?

But I do not advocate guessing a stop-loss value to be used in any trade.

It has to be strategically place…

Best place is on the recent Lows….or at the the recent ” Price Pull-back “…

Not a 100% sure thingy….but at least if the price was to violate those levels.

I would want to play safe and get out to prevent ” entering into the wrong direction ” to drain my account further.

Here’s the ideal location I would place the SL for this trade:

( click to enlarge )

…Just above the recent price pull-back.

With a tight stop-loss value of 40 Pips .

( SHORT Entry @ 0.89734, Stop_Loss@ 0.90134 )

40 Pips as Stop-Loss for a pair like USDCHF is neither too big ….nor too small.

Just nice I would consider as the daily ATR is about 100 - 120 pips movement for this pair.

As I am taking advantage of the Price Pull-Back during a trend….so 40 Pips would be appropriate.

Having explained on the Shorting Entry & Stop_Loss needed….

What is another element that needs to be planned before committing into any real position in the market ?

Obviously it is the Take-Profit ( TP ) levels.

So next I would be explaining on that.

Here’s the illustration on how I plan my ( 2 ) TP levels to share :

( click to enlarge )

Since I am aiming on short intra-day moves on this USDCHF pair..

I am aiming for only 40 Pips for TP #1 - Which is also my Stop-Loss amount.

( once TP #1 profited, stop-loss order for TP #2 would be shifted to BREAKEVEN )

And 60 Pips for TP #2. ( which is 1.5 times my Stop-loss of 40 pips )

I am not including a TP #3 for this position because the major prevailing trend is NOT yet a Bearish one.

( meaning it is still an up-trend as shown on the daily chart )

So I would not want to include the 3rd Take-Profit target for this set-up.

Reason being is that though I can execute another ” Partial Exit ” with that during a trend..

But if I am wrong….then I would incur an ADDITIONAL ” Stop-Loss ” that comes with the 3rd order.

That’s exactly my thought ” just before ” I commit into this position.

Hope it has helped clarify on that aspect now……if You need to know.

* Smile *

So How Did This Trade Turns Out ?

Here’s the answer :

( click to enlarge )

Both my Take-Profit #1 & #2 have been triggered after about 9 hours of trading.

The most important element is when the TP #1 has been triggered…( meaning profit target hit ….)

The stop-loss of Take-Profit #2 has to be shifted to the ” Break-even ” point.

And I am using a special script to automatically do this task for me - So that even while I am sleeping, it can be fulfilled.

( ….According to the pre-set value I input that is. )

As usual, just like other strategies I shared previously…

…. I would always include the screen-shots of my actual ” Entry, Stop-loss & Take-profits ” to share as well.

( Earnings For 1st Exit Order )

( Earnings For 2nd Exit Order )

At this point, I have pretty much shared what I want to as regards to the ” 2 Tricky ” situations that caused most traders to feel dilemma and fearful when facing them.

Which results in illogical trading decision being made and lead to disappoint outcomes ….trade after trade.

One thing I am pretty sure here…

It is that….for anyone who is new to Forex Price Actions trading.

What I have shared above could be ” rather confusing ” to them.

If You’re also one such trader…

Then do make sure You go through a few more times…

And each time You’re reading a certain portion of my explanations above..

Do fire up Your chart….and try to look for ” similar set-ups ” on from the past results…

Most importantly while doing so….test Yourself on whether can You ALSO analyze the market the way I do.

This is one good way to learn.

Especially with price actions, You need to get familiar with watching the RAW market data - The Price Actions !

To conclude my sharing on this USDCHF strategy today.

I will be writing a summary of the ” Important Considerations ” I make during certain stages of the market analysis for this USDCHF trade.

If You need to go over what I wrote above again..

Then do read my summary below first as it would help You form a ” Proper Picture ” of what to expect at each different stage of the analysis.

————————————————————————————

SUMMARY On

…. WHY & HOW I SHORTED THIS USDCHF PAIR :

———————————————————————————-

Basically the entire USDCHF strategy is to help answer the 2 common

” Tricky ” situations that most ( failing ) traders are suffering from.

They are :

1)  How do YOu KNOW ” Whether “  A Trend Would CONTINUE In The

Previous Direction ?

…ALSO

2) ….How do You Know ” Whether ” is a Retracement  a REAL

RETRACEMENT for a Trend Continuation……..and

NOT a ” Reversal ” ( that would hit Your Stop- Loss ) at all ?

And with a winning trade that I nail on the USDCHF pair…

I find that the entire ” analysis ” really does require me to answer the above 2 ” tricky ” situations.

So I decide to write out this USDCHF strategy to share and help fellow readers in need.

Let’s begin….

1) Having spotted a LONG BEARISH CANDLE on the daily chart….

( click to enlarge )

…. I can start monitoring the 4 hourly chart for further ” hints ” to support my intention to SHORT AGAIN.

2) Upon dropping to the 4 hourly chart, the price then has started climbing upward……

But whether is it a retracement ( for a trend continuation ) ….or a Total Trend Reversal….

..We really don’t know at this stage.

( click to enlarge )

Yes, some traders would just jump in and start shorting once the price is at a certain FIBO level/s.

But that’s not my style.

In fact, I have to be ” Extra Careful ” instead just like what I mentioned above earlier…

Because on the daily chart, the prevailing trend is still on the BULLISH side..

( click to enlarge )

If I am SHORTING this pair now, I am opposing the prevailing trend that is.

So taking that into account, I have to monitor further for ” as many hints as possible ” before committing.

With that….it would bring us next to one of the ” Tricky ” question I asked You at the start of this page..

That is :

1)  How do YOu KNOW ” Whether “  A Trend Would CONTINUE In The

Previous Direction ?

Read below for my step by step explanation on this.

3) While still using the 4 hourly chart, the price climb to a certain level & then PLUNGED downward……breaking the previous support…and forming a ” NEW LOW “.

( click to enlarge )

With this ” NEW LOW ” in place, it is a good hint for us to confirm that - This Trend would ( most likely ) CONTINUE in the previous direction.

Because the Sellers are still keen on pushing the price Lower…

4)  With that ” NEW LOW ” confirmation, we can then monitor for a good price level to get in to SHORT this pair.

However….

For any position we wish to enter, we have to always capture a set-up that enables us to trade with ” Minimum RISK….yet ( Realistically ) achieving the MAXIMUM Rewards ! “

And the only set-up that would make this possible is with the ” Price Pull-Back ” during a trend.

With that….it would bring us to the 2nd ” Tricky ” question I prompted You at the start of this page.

That is :

That’s Right !!…..By taking advantage of a ” Price Retracement ” during a trending market…….the risk would be Minimal…..& at the same time the Rewards achievable would be Maximized………no doubt !

BUT…..

2) ….How do You Know ” Whether ” is that a REAL RETRACEMENT

for a Trend Continuation……..and NOT a ” Reversal ” ( that would

hit Your Stop- Loss ) at all ?

5)  In order to convince myself that this is a REAL & VALID Retracement for the trend continuation…..

2 important hints need to happen in the market :

i )  Price has to ( at least ) hit a level that coincides with the previous Support.

ii ) Once that happens, market has to show a certain price actions / patterns that reflect ” Selling Force ” coming into the market.

Like this :

( click to enlarge )

6) Once the 2 important hints have formed in the market…

It is still not enough for me to get in to SHORT.

Because though there is a ” Selling Force ” detected at the level I wanted…

But that does not prove that majority of the sellers are going to SHORT at that position too.

So it is really critical to switch to the next smaller chart ( 1 hourly ) and then watch for the ” commencement of the Selling Move “….

For this USDCHF trade, I spotted a ” Trendline Support ” VIOLATION..

( click to enlarge )

With that in sight, I know it is time to SHORT the market then at Price 0.89734

( after also considering the Stop-Loss needed and WHAT Take-Profits to aim for at the same time.  Read below )

7 )  What Strategic Stop-Loss Value Is Needed For This Pair ?

Using a ” wild guessing value ” for stop-loss could work sometimes..

But in the long run, it would not be a good idea as there is no consistency in the ” risk ” involved with all the positions we enter.

Stop-loss should be placed on a ” strategic ” location in which IF VIOLATED…..it means it is better for us to get out.

And one such strategic location would be on the ” recent price pull-back “.

Like This :

( click to enlarge )

8 ) With Entry & Stop-Loss determined, the 3rd essential element would be the Take-Profit Targets.

Without planning the target levels….market could hit and then BOUNCE up and turn against YOU.

So though the market has actually reached the level You wanted..

But because You did NOT Pre-set in Your trading platform..

You are not enjoying those profits ” automatically “.

So whenever I am trading on intra-day basis..

All 3 parameters - Entry, Stop-Loss & TP levels would be determined at the same time.

As usual, I would be executing the ” Partial Exit ” technique.

This is mandatory as the success rate is higher….and I can ” Lock in & SECURED Pips ” as the trade goes my way.

Here’s the TP levels I planned for this USDCHF trade :

( click to enlarge )

8 ) How Did The Trade Eventually Turns Out ?

Here’s the answer :

( click to enlarge )

One last point to note here before I pen off.

Once You can confidently handle the ” 2 Tricky ” situations each time You’re trading the forex market…

Especially on a short-term ( intra-day ) basis…

Your trading results would take a 180 tremendous change for the better.

No joke.

Because for myself, my success also came once I can ” naturally ‘ analyze the market the way I shared above..

It does not happen overnight definitely…

But if You master one element at one time…

Yes…just one….

Soon…..You would be able to put them ALL together to form a perfect winning formula as well.

I am also rather ” fearful ” about learning the UNFAMILIAR then….which was 5 years back while still a struggling newbie.

In fact I am worst…..

……because I do not have someone to share such ” step-by-step analysis & the right decision making process “ to me then…

I rely entirely on my own trial and error to gauge what’s wrong….what’s right…

And most important….what’s going to be RIGHT IN THE LONG RUN …

That’s truly on a ” Self-Educated ” basis.

Lots hard-work….no doubt.

But I am glad I learned on a self-educated basis when I look back now…because I actually ” feel & notice ” things that cannot be learn elsewhere.

That’s a fact.

I can ” feel ” the market sentiment better in the process.

Especially when I am relying on nothing else but ONLY the Price Actions in the market.

By doing so, I am very customized to extract the ” real hints ” from the series of RAW Price Actions data !

And by doing that again and again on a self-educated basis…..I only get better and better week after week.

So if You’re also aiming for be a competent Price Actions trader…

Don’t give up.

Keep up the effort and stay motivated ya.

One day….I am sure Your hard-work would be rewarded….many many times…* smile *

Well…needless to say….

Earnings like this would be day in day out for You as well !

( Earnings For 1st Exit Order )

( Earnings For 2nd Exit Order )

And the true beauty of being able to handle these 2 ” Tricky ” situations is that ….

…You can almost trade on any currency pair You like.

Using the same analysis & decision making process to handle the 2 ” Tricky ” situations.

Which also means…..earnings such as the ones I earned for this USDCHF trade of about Usd $5,641.00 …..could then be profited….again and again.

Of course without the ” Fear, Dilemma & In-decisive-ness “ You used to suffer from ….previously.

Alright…so much for this intra-day Strategy which I used to grab 100 pips out of the USDCHF pair “…

I shall pen off now..

Thanks for reading this far..

To Your ( absolute ) FOREX SUCCESS,
- Aaron Tan ( your trading friend )

In this post, I am going to share a Forex Trading Strategy which takes advantage of these 2 important elements happening in the market :

1)  A ( Solid  ) LONG CANDLE ” Breakout ” On A Daily Time - Frame

2)  And relying on a ” 50.5% Fibonacci Price Pull-Back ” to acheive a  High Probability ( Low Risk…HIGH Rewards ) entry..

Read on below as I share this profitable strategy in a step-by-step manner for You !

Before that……..let me ask You a very interesting question first…

…….That is :

What do You think would happen IF….:

….” Most of the traders ( all over the world ) actually traded in the SAME Direction as You are -  And everything happens in a really SHORT period of time ….? “

What’s Your answer to the above question …?

( It’s ok…..let me help You with it….* smile * )

Yes…………there would definitely be an Incredible & Serious BREAKOUT from the Price Movement in the forex market…

This is so because…….. there would be MASSIVE amount of FUNDS being pumped into the market at the same time SHORTING / BUYING a certain currency pair…

( or at least at very close time intervals …..)

Let me elaborate more on this for You…..

———————————————-

For example :

——————————————–

If …..MOST of the traders ( Especially those with Very ( VERY ) HUGE Funds & DEEP Pocket )…. also have the bias of SHORTING / SELLING a particular currency pair…..

And IF……….. they SHORT that currency pair just about the same time…. ( or relatively close to each others’ orders )

It means the amount of VOLUMES resulting from their ” ( Combined ) Selling Interests ” would be INSANE & VERY IMPACTFUL…

And when that happens….

What is the ” Most RELIABLE & ACCURATE ” proof we traders can pick up from the forex market to confirm our trading bias ?

YES…….it is none other than a FULL - Body LONG CANDLE formation in the market…!!

These FULL-Body LONG CANDLES formation carry tremendous significant in the forex market infact…..

And could actually IMPACT that particular currency pair for days or even weeks to come….

….Which is definitely a very good news to retail traders like You & ME ! * smile *

Why so ?

Simply because upon spotting such LONG CANDLE formation in the market….

We can then get ready to place our orders and make some Valuable Profits for Ourselves then…!!

Moreover……….

…….the best thing about such LONG CANDLE formation is that it is very ” Reliable & Accurate ” to help derive our BUY / SELL Signals…

This is especially so if such LONG CANDLE formation is spotted on the BIGGER time-frame such as the ” Daily “.

This is what exactly happens to the NZDUSD a few days back ( while writing this forex strategy to share )….

……by deploying my ” Long Candle Formation + ( 50.5% ) Fibonacci Price Pull-Back ” strategy…

I have managed to nail a nice 200 PIPS out of this NZDUSD ” Bearish Breakout “ - By relying on the LONG CANDLE formation !

So in this article, I will be showing You in a step-by-step manner of how I actually did it as well.

So without much further ado…

Please fasten Your seat belt……and let’s get started now ya !

Trust me……You are going to love this ( extremely  ) Profitable forex strategy based on
LONG CANDLE ( breakout ) too…. * smile *

Unless You are one odd trader….. that DO NOT like to make profit from the forex market
( for some odd reason that is ) ……* frown *

Alright….( alright )……..jokes aside……let’s go now.

——————————————————————————————————————————

A Forex Strategy Combining ( Very ) LONG CANDLE Formation…..& ” Fibonacci Price Pull-Back ”

( Again….this is indeed another Very Profitable strategy with minimum risk….BUT Offering HIGH Rewards ! )
—————————————————————————————————————————–

The LONG CANDLE formation happened in the NZDUSD ” Daily ” time-frame..

When I saw this ( Bearish ) Long - Candle…..

…..I KNOW there are really good Profits ( Pips ) awaiting to be grabbed from the market soon..

It is just a matter of ” waiting ” for the proven ” Low Risk ….HIGH Rewards ” set-up to be shown before I jump in and open a position to SHORT..

Here’s an illustrations of the exact set-up I saw on the NZDUSD to share :

This Long Candle being spotted is UNLIKE others in the market in fact.

As You can see on the illustrations above too….

The length is ” Exceptionally LONG “…..and with a FULL WHITE ( Bearish ) body..

Very serious implications with that…..and it definitely carries immerse amount of Weight
in the forex market..

To put it in lay man’s terms…….it means HUGE SELLING orders have been placed into this NZDUSD currency pair…

And to be exact…..these HUGE SELLING orders are attacking on the NZD currency …

Why I know that ?

Simple !

Just compare other major USD crosses such as the EUR/USD, GBP/USD or AUD/USD…

And the weird thing is that I am NOT seeing such ” Exceptionally LONG CANDLE ” formation on them…

So it is common sense that NZD is the one being attacked with such MASSIVE SELLING orders…

* smile *…

Well……with such confirmation…..do You know how Happy & Excited we should be as retail traders ?

We should be ” Extremely Happy ” in fact….

Because when such FULL-BODIED Long Candle is being spotted on a ” Daily ” time - frame….

The Profit potentials that follow would be HUGE !

….A LOT of Valuable Pips to be grabbed by You and Me…..! * smile *

( when You know ” HOW ” …that is )

However….just like the other Profitable Forex Strategies that I shared previously…

With all that information……..it is STILL NOT good enough for us to jump in to SELL yet…

You would need to wait for other ” better ” set-up so as to achieve a LOW RISK …& HIGH REWARDS potential.

Next coming up….I will be explaining ” everything ” You need to know on that …

So read on below for the exact ” Important ” details…

When such Price Breakout occurs in the forex market …..and resulting in a LONG CANDLE formation…..

…..A Trend would most likely develop too after…

( In this case, it would be a down-trend obviously since it is a WHITE ” Bearish ” CANDLE )

Here’s the illustrations to help You recap again :

So the very next thing upon spotting such Long Candle Breakout is to wait for the Price to ” Pull-Back / Retrace ” to a certain Fibonacci level…

Where Fibonacci Levels are concerned…..there are a few different levels namely :

- 23.6 %

- 38.2 %

- 50.0 %

- 61.8 %

- 100.0 %

A few levels for one to decide on…

Selecting TOO LOW a level……You would fear that the price would clear further and hit Your Stop-Loss…

Selecting TOO HIGH a level………it would mean it is actually a ” Reversal ” and NOT a Retracement/ Pull-back anymore…

These situations could be rather confusing if You are NOT understanding the bare essentials about Fibonacci trading tool ” adequate ” enough…..

In fact……….most struggling traders somehow already know that watching Fibonacci levels for retracement is proven reliable for achieving entry with ” low risk & high rewards “…

However……….the thing that make them confused ( most of the time ) is deciding on the RIGHT FIBO LEVELS for their entry…

So how then ?

Not very tough on this one actually…

Since we don’t want too low….

Don’t want too high either…

Then we just go for the ” median ” then….

Which means between the 50% - 61.8% FIBO levels would be a good region to watch for potential ” entry point ” to SHORT again !

As the saying goes……a picture speaks a thousand words !

So…..

—————————————————————————————————————-
Let me show You exactly how I did it with this NZDUSD trade next…..( with illustrations ! ):
—————————————————————————————————————-

Since this LONG CANDLE has been spotted on the ” Daily ” time - frame..

And now that the price is beginning to ” Climb ” up again…

I am going to drop to a smaller time-frame so that I can watch the Price Actions in a much clearer view…

At the same time….monitoring ” HOW ” the Price Actions behave when they hit the 50% - 61.8% FIBO level….

Let me first show You how it looks like when I plotted the FIBO level :

( on the 4 hourly time-frame )

As You can also see above…

The price is still climbing to the 50.0% level..

So we couldn’t do much except to ” WAIT “….

——————————————————————————————————————-

Perhaps some of You guys would be wondering on this question too :

“…But Aaron….what if the Price DID NOT reach the 50.0% Fibo Level and it Plunged down again ?  It means we are going to MISS this move ?  ( and the profits as well since we are still waiting for the 50% fibo level to be reached  & Did NOT enter the trade….?)

——————————————————————————————————————–

I know many readers ( mostly newbies or struggling intermediates ) would be wondering on this aspect as well..

Very normal especially for those whom are new to Price Actions trading and Fibonacci Retracement Strategies..

Here’s my answer for You guys whom are wondering about this aspect :

” There is really NO point RISKING entering at a much lower level than at least the 50% Fibo level …..because most of the time, the optimum levels to watched for are the 50% and 61.8% levels…..

( most professional traders, banks and major institutions watch for that levels too ….)

In fact….any levels lower than the optimum 50% & 61.8%……the risk of getting a stop-loss hit is very ( very ) high..

On the other hand……if the price has reached the 50% & 61.8% levels ……the profit potential is much higher as compared to the lower levels..

( because the more it retraced previously…..the more it would move IF the trend continues….)

Not forgeting that the Stop-Loss needed would be much LESSER too…

Thus allowing us to achieve a  ” Low Risk & High Rewards ” ratio for this trade..

So aiming for the 50 - 61.8% region for retracement would be profitable most of time when combined with good money management + good reward / risk ratio entry !

* smile *

——————————————————————————————————————-

1)  So did the price hit the FIBO LEVELS ( 50 - 61.8% ) I wanted….?

2)  What do I ” based on ” before committing into a SELL order then ?

——————————————————————————————————————

Let me answer part 1 first for now :

The price has indeed climbed to the levels between the 50% - 61.8% levels after that..

But it soon fall back ( lower ) again…..

Upon seeing the ” Price Hit & Fall Back Lower Again “…situation

It is already good enough to consider that the ” optimum retracement level ” has been satisfied…..

Here’s an illustrations to help You understand more :

With that ” Optimum Retracement Level ” satisfied…

What did I look for next before I commit my entry to SHORT this trade  then ?

Nothing complicated though……

Since the Price has reached the 50% - 61.8% levels previously…

And it is maintaining slightly below the 50% level now….

At the same time….it means it has formed a ” Lower LOW “ in the market now too..

Here’s the kind of  ” Lower LOW ” I Mean after the Price Fall Back :

( if You dropped to the next smaller time-frame which is the 1 Hourly….You can see this ” lower LOW ” even more clearly ….)

And upon calculating the Stop-Loss needed…

Based on the  ” Lower Low region “  to SLIGHTLY ABOVE the 61.8% level..

I came to the conclusion that a 60 Pips Stop-Loss would be needed …..

( …and it is placed at a level ” strategically ” enough to avoid getting hit Unneccessary ! )

With the critical Stop - Loss being calculated..

Of course I would also need to calculate the ” Potential Rewards “ as well…

So that I can guage whether the ” Rewards / Risk ” ratio is WORTH IT after all……or not.

For the Profit Targets strategy….I will be executing exits on 2 different Take - Profit levels.

1st Take- Profit Level = 80 Pips ( which is slightly above the recent low )

2nd Take - Profit Level = 80 Pips x 1.5 = 120 Pips

IF this is a proper TREND Continuation…..120 Pips target would be hit realistically….

Simply because a LONG CANDLE breakout is ” Really IMPACTFUL “….

And there would be a lot of traders waiting to jump in and SHORT big time too ! * smile *

So considering my Stop- Loss is 60 Pips….

And Profit Potential is  80 Pips ( 1st Target )….120 Pips ( 2nd Target )…

It is obvious that I can achieve a good ” Rewards/ Risk ” ratio for this set-up…

And what do I do next then?

Enter and SHORT this trade of course !!! * smile *

Here’s an illustrations showing the details ( Short Entry, Stop-Loss & TP )  for You to understand more :

As I am executing the ” 2 Exits ” strategy for this trade..

Once the first Take - Profit level is hit ( +80 Pips )…

I will then shift the Stop-Loss for the 2nd position to the Break-even point.

This is to ensure that even if the trade were to reverse….I am still a WINNER for this trade….* smile *

Even if I am in 70+ Pips profits already …..and it’s time for me to go to bed..

I will just manually exit the 1st position with 70+ pips Profits…

And just shift the 2nd position Stop-Loss to Break-even too.

Difference of a few pips is not very important as I have already Profited from the 1st position - That is more important !

Of course….this is to ensure that I can sleep ( even more peacefully ) knowing that even if the trade reversed on me…..I am already a winner from the previous 70+ Pips Profited !

* smile *

Very essential to do what it takes to ” Protect & Secure ” our Profits for long term GAINS !

Agree ?

Alright….so how does this trade eventually turns out for me then ?

Here’s the answer :

Did You notice some amazing pattern of the Price Actions from the illustrations above ?

The price did NOT plunge down straight away actually..

It trades lower….and lower in a very progressive manner……UNTIL…

When the price ultimately cross the ” half-way point ” of the full retracement…

Only then the price plunged down seriously in a very INTENSE ACCELERATED manner…

Just look at the FULL ( WHITE ) LONG Candle that formed from that point onwards….

…You will be able to feel the amount of SELLING PRESSURE then too…

So bottom line is that NEVER underestimate the Power of a FULL- BODIED LONG CANDLE  in the forex market….

( Especially on the bigger time -frame such as the ” daily ” like what I spotted for this trade on NZDUSD )

I executed the exits in 2 different price levels….

1st TP is 80 Pips …( at price 0.74435 )

2nd TP is 120 Pips…. ( at price 0.74035 )

Definitely a nice amount of Pips to be grabbed from the forex market…..

And all thanks to the LONG CANDLE formation that provide me with the ” reliable & accurate hint “  though….* smile *

Here are the 2 earnings screen-shot ( with Entry, Stop-Loss & Tp ) to share :

1st Take - Profit Earnings ( 80 PIps ) - Usd $2,410.50 Profits :

2nd Take - Profit Earnings ( 120 Pips ) - Usd $3,610.50 Profits :

————————————————————————–
My Important Conclusions For You :
————————————————————————–

……Since You and Me ( as retail traders ) simply DO NOT have access to any of the so called ” Insiders’ Information / Tips ” from the Government or any Hedge Funds with HUGE Funds that are capable of moving the market at will..

Hence……the only trading decision that we can grab hold of is purely from the technical analysis charts…

And with that….it is really ” good enough ” for us to make very nice and consistent profits ….each and every month from the forex market in fact…

Besides relying on the more Powerful Price Actions in the market for our analysis..

One really ” Impactful , Reliable & Powerful ” HINT to help with our analysis is by trading off the FULL-BODIED LONG CANDLE forming in the forex market…

Here’s why :

When a LONG CANDLE ” actually formed ” in the forex market……

…..it significantly reflects ” Huge Interests & Trading Volumes “ ……from majority of the traders..

( Especially those with ( Very ) Deep Pocket & Funds )

So any LONG CANDLE appearing in the market….

( especially on the Bigger time-frame such as the Daily or Weekly……we better treat them with a certain respect as it is giving us a very SOLID HINT of the next BIG MOVE….)

And when You ALSO ‘ Know ” HOW to trade such LONG CANDLE…..the rewards are indeed very lucrative each time……..as well as in the future trading days to come !

No doubt about that ! * smile *

So if You are one such trader who ” has NOT ” master the art of trading with such ( Profitable ) LONG CANDLE formed in the forex market yet….

Then You could be MISSING out on the valuable Pips ( Profits ) on the table that is….when a LONG CANDLE formed again in the market…

( Maybe tomorrow…. ? )

Really worth spending the effort to fully understand and eventually master a trading strategy that help YOU take advantage of such LONG CANDLE …..

It could be considered one of the most ” Powerful form of Price Actions “ in the market available to You and me ( as retail traders ) indeed….

Simply because it involves MASSIVE Amount of VOLUMES & Interests that are driving the price around…

Master it….and You will enjoy the tremendous benefits in the days to come too from the forex market ! * smile *

Alright Fellow Traders…..

In this post, I am going to share a Forex Trading Strategy which takes advantage of these 2 important elements happening in the market :

1)  An  ” Extreme BREAKOUT ” In Price

2)  And then riding on the TREND with multiple - ” Price Pull-Back Entries “

As an aspiring trader ( or so called newbie )  begins his / her  Forex exploration journey…

He / She would bound to bum into this Forex Price Breakout at certain point of their learning process.

….Regardless of from what source they learn their trading from….

99% of the time….these aspiring newbies would ( for sure ) heard about this Forex BREAKOUT at least once or twice…

Well….the reason is pretty obvious here…… isn’t it..

A Price Breakout is certainly Very Profitable……

…Especially when a BREAKOUT would lead to an ” Explosive ” movements in the forex market..

When that happens…..It also means there are lots of valuable PIPS ( Profits ) for any traders in the ” KNOW ” to grab..

In fact, trading Breakout is one of my ” all time ” favorite trading strategy as well.

I don’t need any complicated technical indicators…..

OR…. spent too much time on analyzing the Forex market..

But still………it enables me to nail a ” Relative HUGE “ amount of  Pips ( Profits ) out of such EXPLOSIVE movements from the Price BREAKOUT..

Truly cool I must say ….* smile *

Recently, I have been receiving many emails from fellow readers ( whom came from all over the world ) asking on how to trade a Price Breakout …

And most of them actually ” sort of  already  know ” …… how to ( roughly ) trade such Breakout in the Forex market..

BUT the thing is that they are still NOT confident of spotting for a ” reliable Breakout ” set-up to trade.

By ” reliable Breakout “……….I mean one that would lead to a short term prevailing trend in the forex market after the price exploded.

Well….

When You DON”T KNOW how to filter the more ” reliable & profitable ” set-ups to trade..

The end of the day results would most likely be Utter Disappointments..

Although Your trades might be protected by a Stop-Loss…

But if You are LOSING 5 times..

…Winning another 5 times…

Then that is basically back to ” Square-One “ ……..Hmmmmm….

Meaning only seeing a ” Break-Even ” account size end of the day.

( or slightly in the deficit zone due to the losses from Spread incurred )

So to help You guys understand more on how to take advantage of the Lucrative Price BREAKOUT in the Forex Market…

….and spot for ” Low Risk ,HIGH  Rewards & Very Profitable  “ Set-ups prevailing in the trend that follows after the BREAKOUT..

I shall share a Proven & Time-Tested Forex Trading Strategy to capture such Breakout below.

The beauty of this Breakout Strategy is that once spotted..

You will normally get at least 2 - 3 ” Very High Probability & Profitable Entries “ to grab some nice Pips out of the market… ( again and again )

Alright…let’s get started now :

——————————————————————————————————————————

Profitable Forex BREAKOUT Trading Strategy That Takes Advantage of  Multiple ” Low Risk….HIGH REWARDS “  Price Pull-Back !!

——————————————————————————————————————————

The reason why I have been a strong believer of  trading with Price Actions in the forex market is because they are NOT LAGGING, More Reliable & Much Accurate.

Perhaps You already know this fact by now too…..

IF….. You have been reading my forex tips so far… * smile *

That is why I DO NOT need any fundamental or so called ” Insider Tips ” to help with my analysis..

But rather…..

…Based purely on the Price Actions in the market, I can predict where the Price is going to head to next…( and most of the time with High Accuracy !)

Combining with a good Risk/Reward ” Entry ” point…..

…..it literally enables me to secure Very high trading success ….each and every month. ( for 5 years+ now)

Read on below for more details on why I said You don’t really need any Fundamental or INsider Tips …..

…..BUT just Price Actions to spot such highly Profitable BreakOut to trade !

—————————————————————————————————————————-

If You have been trading for awhile….. or…. at have been reading up quite abit on forex trading..

Then it is not new for You to know that a ” Double Top or TRIPLE Top “… is actually a Bearish Sentiment in the market…

That’s because such Tops are direct reflections of  the ” Resistance Levels ” in the market…

Meaning the buyers are NOT willing to settle for a higher price anymore..

Thus , such TOPs ( Resistance Levels ) are being formed in the market.

HOWEVER….

IF these resistances are being BROKEN - And Price BREAKOUT To The Upside…

It could mean another story then…

And most of the time, a NEW TREND would prevail after such BREAKOUT

But what do I mean by TOPS ( Resistance Levels ) being broken then ?

———————————————————————————————

Here’s Some Illustrations To Share :

——————————————————————————————–

( This is traded on the EURUSD currency pair - 4 hourly chart )

Initially there are 3 ” Tops ” spotted in the market ….

Such resistances are indeed very STRONG…since it failed to be broken on 3 occasions..

As can be seen below, the price is at the resistance level once again to test it..

And based on the ” Full Bull Candle ” present…..there’s a possibility that it could be broken anytime soon.

So what I would do is monitor closely and wait for it to be broken.

….And indeed…in less than a day time, the Price has BREAKOUT to the upside….

Forming a ” New High “.

Here’s an illustration to show :

As can be seen above…the price has finally BREAKOUT to the upside now..

Taking out the previous resistance points..

Like I mentioned earlier ….this is the chart of EURUSD on a 4 Hourly Time-Frame..

Any ” Breakout ” on relative big time-frame such as the 4 hourly…..

It could result in a short-term trend that last for 2 -3 days…or MORE !

…..BUT !!!!

…..You definitely should NOT simply just jump into the market and start BUYing/ LONG at whatever price point You want though…….

Considering the Risk/Rewards involve…..is very critical for Your success here.

And You preferably ONLY want to capture those ” Low Risk & HIGH Rewards ” set-ups..

If  that’s the case, then what should You do in order to capture the ” Low Risk/ High Rewards ” set-ups ?

Any idea on Your side before I reveal mine ?

( ….Give You 2 minutes starting now then….* smile * )

Well…for those that like the challenges of coming up with an answer for Yourself..

Carry on please..

But for those that do not want to …..

———————————————————————————————————————

Proceed to read on my complete step-by-step explanations below :

——————————————————————————————————————–

What You need to do is rather simple actually…

Since You spotted such ” Triple Tops Breakout ‘ on a 4 Hourly Time-Frame..

So in order to look for ” Low Risk & HIGH Rewards ” set-ups to ride the Up-Trend that follows..

Just drop down to a ” Lower-Time- Frame “…..

And for this case, the 1 Hourly would be good !

Why so ?

Because whenever there is such ” BREAKOUT ” spotted on a bigger time-frame…

There would bound to have at least 2 -3  good ” Low Risk & High Rewards ” entry points on the lower time frame…

But before I get into that..

Let me show You what kind of Profits Potential we can expect from such a Triple Tops BREAKOUT on the 4 Hourly Time Frame first …

( Assessing this step is very important as You would be able to know the maximum amount of Pips You can grab….while track on the ” Realistic ” side !! )

From the illustration above..

It is clearly seen that the profit potential ( amount of pips that can be grabbed )…..is about 320 Pips !!

And that is from the point of BREAKOUT to the next immediate Resistance Level  on the 4 hourly time-frame.

Yes……..You can definitely SWING this trade and ride the entire trend for all potential pips..

But on the other hand…..

I know that NOT many traders can withstand the many ” ups & downs ” that are bound to occur ….

…..while waiting for the price to climb for more than 300 pips..

Most important, most traders ( especially those just starting out ) simply CANNOT stop worrying about their positions…..( while having to hold overnight or for days….)

As such, that could mean they are better off  NOT sleeping the entire night…

( bad for health……really bad for health….right ! )

So in order to benefit the newbies as well..

I decide to share this Breakout Strategy such that anyone can also spot for ” Profitable  & Low Risk  Entry Points “ on an INTRA-Day basis.

….and just play the short term momentum in the market.

In order to achieve that…..

…We will be looking for good entry points in the market by targeting on the multiple Price -Pullbacks that would happen.

Read on below as I share with You on :

1)  My ” very 1st- Entry ” point & Take-Profit Level

2)  My ” 2nd -Entry ” Point….& Take - Profit Level

3)  My ” 3rd - Entry ” Point….& Take - Profit Level

————————————————————————————————–

My Very 1st - Entry Point For BUY….& Take - Profit Level

————————————————————————————————–

Again…this is the Price BREAKOUT Point on the 4 Hourly Time-Frame ….( to help You recall again )

….And by dropping down to the 1 hourly time-frame….

This is how I look for the ” Low Risk & HIGH Rewards ” Entry Point :

Using the proven theory of  ” Previous Resistance Turns Support “ ….during an uptrend..

I choose to BUY shortly after the price has bounce off the previous resistance level and about to climb up. …( as illustrated above )

My BUY at Price :  1.34554

My Stop-Loss at Price :  1.34154 (  40 pips risk )

My Take-Profit at Price :  1.35354 ( 80 pips rewards )

As this is a BREAKOUT on a bigger time frame, it is definitely feasible to aim for rewards that are 2x my risk…

However….as I am using a ” relatively TIGHT ” Stop - Loss here..

So there’s one thing I have to do in order to protect my trade though…

That is essential to avoid seeing a Winning Trade turning into a LOSING one.

What needs to be done then ?

That is …..when the price has climbed for 40 pips….( which is my stop - loss amount)

I will at least SHIFT My Stop-Loss to BREAK-EVEN point..

As well as exit 50% of my lots to keep some of the profits first..

Very mandatory to do this step of ” locking in profits ” especially when the Stop-Loss I am using is Relatively Tight..

So how did this trade progress for me ?

Here’s the illustrations to share :

As You can also see above…

Shortly after my BUY entry at price 1.34554..

The price actually started to climb for about 30 pips and then DIP down again..

This time ” nearly hitting ” my Stop Loss placement…. ( but missed by 3 pips !! )

After that it climbed all the way to my first 40 Pips Profit - Target…

It is also at that moment where I EXIT 50% of  my total trading lots ….

I entered with 6 Standard lots so……it is equal to : ( 6 Lots x 50% = 3 Lots )

However…the price did not hit my 80 Pips target but rather….

……it PLUNGED down again and this time…… even LOWER than the previous one.

Which eventually taking out my trade and hitting my Stop - Loss level…..BUT at ” Break-Even ” point.

With the first 50% Partial Exit on the first 40 Pips….I am still a winner for this trade though. * smile *

Imagine if I did NOT implement the ” Partial Exit ” strategy……

…..NOR the ” Shifting To Break-Even Point ” for Stop Loss..

What would be the end results eventually ?

I would be LOSING this trade entirely right…..?

Losing => 40 Pips x 6 Standard Lots  that is !

Hmmm……..definitely no good.

So now You know why am I ( very ) particular with ” Protecting ” my previous profits….

Especially with an intra-day position where the ” entry, stop-loss & take-profit ” are so CAREFULLY planned….

BUT I still DON’T give chance for ERROR - Should the trade reverse halfway unexpectedly….

Very important to take into consideration about ” Protecting Your Previous Profits “…..indeed.

Please do so IF… You are NOT doing so …ya.

Alright….with this, I shall end the step-by-step explanations for the ” 1st Entry  & Take Profit ” point for this strategy…

I will be sharing on the ” 2nd & 3rd Re-Entry ” later below…

And they are getting more ” Exciting ” though……..* smile *

Continue reading below to learn other details on this Highly Profitable ” Breakout ” Forex Strategy ….is a must ! * smile *

—————————————————————————————————————————

Before that, here’s the earnings screen-shot with my ” entry, stop-loss & take-profit ” to share :

( 1st Exit - 40 Pips with $1,200 profits )

( 2nd Exit - at Break-Even )

————————————————————————————————————————-

My 2nd Re-Entry Strategy - By Taking Advantage of  The Next Price Pull-Back….

When there is a high tendency for a Strong Trend to develop in the forex market….

….Especially after a Price BREAKOUT  on the higher time-frame..

There bound to have MANY  “  Low Risk & HIGH Rewards ” Set-Ups for You to enter….re-enter…..and re-enter….

….again and again to grab some good amount of PIPS ( Profits ) for Yourself.

And this is exactly what I am going to share with You next ..

In order to make sure that the it is a ” Healthy & Profitable “ Up-Trend still…

We need to see 2 ( Important ) things happening in the market namely :

1)  The Price Has To Make A ” Newer High “…

2) The Price Has To Pull-Back / Retrace To Previous Resistance

If these 2 ” essential elements ” are being spotted in the market..

Then it could be considered a ” Low Risk & HIGH Rewards “ Set-up You can take advantage of  for Re-Entry.

Like This :

Upon seeing the price bounce off the previous resistance..

And also spotted a ” Bullish Candle ” closed….

That is a good sign of an ” Re-Entry ” for a BUY.

After weighing the Risk ( Stop- Loss ) needed….

…And confirming that using a tight stop-loss of just 40 pips is feasible…

I then go ahead and ” Re-Enter ” to BUY again.

Here’s an illustrations again to help You see better :

For this 2nd Re-Entry…

I am still sticking to a tight Stop-Loss of 40 Pips too.

And aiming for a Take-Profit ( TP ) Of 80 Pips.

That would give me a good rewards/risk ratio of 2x.

The ” Average Daily Range ” for this currency pair that I am trading ( EURUSD ) is about 120 - 150 pips..

So aiming to grab 80 pips out of the range is definitely being ” realistic “ here.

This is especially when there are so many ” good confluence “ of  Price Actions being present here….( as mentioned above just now )

So How Did This 2nd Re-Entry Turns Out For Me ?

Here’s the results to show :

As I am using the 50% partial exit strategy for the first 40 pips..

That happened about 2 hours of my entry actually…..( as You can see above )

At the same time I also shifted my Stop-Loss to the Break-Even Point now…( at Price 1.35308 )

This is to ensure that even if the trade was to turn against me now….

I have already pocketed the 40 Pips earlier….

Since my SL is at Break-even now….I would NOT Lose Anymore !

This is literally a ” nice feeling ” knowing that the only outcome WINNING end of the day..

Agree ?  * smile *

After trading for a few hours more..

This price finally hit my Take-Profit point at Price 1.36108….   ( for 80 Pips Rewards )

And that is for the 2nd 50% of the total lots I enter to trade initially.

A nice 2nd Re-entry here isn’t it ….?

—————————————————————————————————————————-

Here’s the earnings proof with the exact ” Entry, Stop-Loss & Take-Profit ” to share :

( 1st Exit  - 40 Pips with $1,200 profits )

( 2nd Exit  - 80 Pips with $2,400 profits )

—————————————————————————————————————————–

Next…..

I am sharing on the 3rd Re-Entry strategy - While still continue ride on the ” Juicy Profitable ” trend prevailing in the market now..

However…this time round I am doing something ” slightly ” different though..

But it is definitely a good thing for our Pocket ( and trading account ) end of the day ! * smile *

Read on to find out the exact details.

Once again….

…..since I am still riding on the prevailing short-term trend after a Price-BREAKOUT on the bigger time-frame..

I need to make sure that the elements that needed to confirm that the trend is still a ” Healthy & Profitable ” one still present too.

These Essential Elements are namely :

1)  The Price Has To Make A ” Newer High “…

2) The Price Has To Pull-Back / Retrace To Previous Resistance

If these 2 ” essential elements ” are ( again ) being spotted in the market..

Then it could be considered a ” Low Risk & HIGH Rewards ” Set-up You can take advantage of  for Re-Entry ( again ).

Like This :

For this 3rd Re-Entry I am executing…

I am actually doing something ” slightly different “….which is beneficial to my Pocket. ( as I mentioned earlier )

That is….I am aiming for a ” Slightly Bigger ” Take - Profit Target this time round.

And what’s the reason for my decision to aim for a slightly bigger Profit target then ?

If You notice from the illustration above.

The ” Pull-Back/ Retracement ” is actually MORE than the previous one ..

In a trending market….the MORE the ” Pull-Back / Retracement ” is…

That would also implies that one can aim for MORE Profits too..

( normally 1.5 - 2 times the ” depth ” of the Pull-Back/ Retracement )

So instead of aiming for 80 Pips Rewards like the 2 previous trades..

I am aiming for 100 Pips this time round for the TP.

While still maintaining my Risk ( Stop-Loss ) at merely 40 pips.

This would enable me to achieve an even better Reward/Risk ratio of about 2.5x.

Here’s an illustrations of my Entry, Stop-Loss & TP to share :

And how did this 3rd Re-Entry turns out ?

Did I manage to profit the FULL 100 Pips I wanted..?

Here’s the results :

Indeed….the price Charged-Up continuously to my 100 Pips TP point without retracement..

( You can see from above too ! )

As I am executing 50% partial exit..

The exit for the first 40 Pips was done after 1.5 hrs from my entry to BUY…

And the 2nd partial exit for the FULL 100 pips was triggered after about 3 hours of trading.

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Here’s the earnings screen-shots for the exact ” Entry, Stop-Loss & Take-Profit ” to share :

( 1st Exit  - 40 Pips with $1,200 profits )

( 2nd Exit  - 100 Pips with $3,000 profits )

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All in all…..how many times have I entered into the market till now ?

The ( very ) 1st Entry….

…..Then 2nd Re-Entry..

…And subsequently 3rd Re-Entry…

So altogether 3 times in total !

Most importantly….ALL are winning trades….

( though 1st one only profited 40 pips at 50% partial exit )

But just as the Warren Buffet said so …..

“…As long as You are not Losing….You’re a Winner ! “

That’s definitely very true in any trading game.

Even when You are equipped with a set of SOLID & Proven trading strategies…

But it does not include any strategy to ” Protect Your Trades - Especially The Earlier Profits “…

Then I would say that the Winning Probability is NOT being Optimized Or Max Out Yet…

Most traders are losing money in the market because they are NOT taking the extra step to secure their profits actually.

( Am sure You would rather ” Profit 5 Pips……then to lose 20 PIps right ! “…)

So what they experience most of the time is to see their Profits being given back to the market……

OR….a Winning trade ( previously ) turning into a LOSING one now……..

That is definitely very frustrated…..very disappointing to experience in trading.
So if You are one such person whom is NOT using a method to ” secure your previous profits “…

Or maybe …..You just DO NOT know how..

What can You do then ?

You can go on and explore a few such methods and then choose the one You prefer…

Or ….You definitely can follow the ” Partial Exit ” strategy that I used for my explanations above.

For a currency pair with Average Daily Range of about 120 - 150 pips…

I am personally getting very good results with a 40 Pips Stop-Loss…

As well as 80 Pips Rewards…

And I will exit partial lots at the first 40 Pips ….

Then shift to break-even for the remaining lots to allow the trade to proceeed to the full TP point.

That’s about it.

If You’re NOT feeling confident about such exit strategy now…

Do not worry…

Just keep on practicing…..and soon You will begin to get a ” better feel ” of using such exit strategy..

BUT there’s one important thing though…..

40 Pips can be considered a ” Rather Tight Stop-Loss ” to most..

And for those traders whom are NOT good at recognising ” Reliable Pull-Back/ Retracement ” yet…

This kind of ” tight ” Stop-Loss could pose some frustating problems ….again and again….

YES…….I mean getting those ” Tight Stop Loss ” hit…and hit again…

So if You’re one such trader….

It is perfectly fine though….

Just use a ” slightly bigger ” Stop Loss will do….

Perhaps in range of  50 - 60 Pips is still fine….

Because You would be aiming for 80 pips rewards..

As long as Your strategy is at least 60% winning rate…

You will end up wining end of the month….* smile *
So to summarize the Forex Breakout Strategy I shared today….

Just allow me to emphasize a few important points about this BREAKOUT strategy before I pen off  …

Summary For This Entire Forex Breakout Strategy - While Taking Advantage Of Multiple Price Pull-Backs

( NOTE : All the steps below that I am summarizing for You have been explained in the entire strategy above just now. So if at any point You cannot recall what am I talking about, do feel free to scroll up and refer again to the illustrations ya.  This is essential for understanding, absorbing and ultimately mastering a new proven forex strategy …..right !! )

1) The price has to ” BREAKOUT ” from a few TOPS ( or resistance points ) forming in the market previously……( the more the beter ! )

- Make sure that this BREAKOUT is happening on the bigger time-frames such as the 4 hourly or daily…( as they are more reliable & more Potential PIPS to be grabbed )

2) Upon spotting one such ” BREAKOUT “…….measure the Profits Potential You can expect out of this move. You can do so by measuring the Pips difference from the ” Point Of Breakout ” to the next ” Resistance Level ” on the 4 hourly Time Frame.

3) Once confirming the ” Potential Profits That Could Be Grabbed “……drop the to the next LOWER Time-Frame to spot for Price Pull-Backs/ Retracement

- This is because ONLY with a Price Pull-Backs / Retracement then it is possible to achieve the ” LOW RISK & HIGH REWARDS ” Potential….

4) Once Spotted a ” Price Pull-Back / Retracement ” in the lower time - frame….do make sure the price has actually fall to the PREVIOUS RESISTANCE LEVEL before You enter to BUY. ( for an uptrend )

5) To increase Your winning probability, consider using the ” Partial Exit ” Strategy even for intra-day short term positions.

6) For Re-Entry , do make sure that the Trend is STILL ” Healthy & Profitable ” by confirming with 2 Important elements namely :

i)  The Price Has To Formed A ” New High ” Than The Previous High

ii)  The Price Has To Pull-Back / Retrace To The Previous Resistance….( for an up-trend )

7) When I am personally trading this strategy, I will at most settle for a 3rd Re-entry and nothing further. That is my personal preference.

But if You would like to go for the 4th Re-Entry ( because after going through the checklist,
the trend is still healthy and good )……

……then so make sure that there is still an ALLOWANCE of At Least 150 Pips before hitting the Resistance Point You pin-point in the 4 hourly earlier.

Let’s say You’re also like me……aiming for 80 Pips out of the potential 150 Pips to go is definitely ” Realistic ” here….agree ?

Yeah….so do make sure You have at least 150 Pips allowance to the PEAK You pin-point while calculating the Potential Profits .

Once You have won the ( valuable ) Pips You wanted frm the 4th Re-Entry…..

…and soon after that You actually saw a ” Double Top, Head & Shoulders ….or Perhaps a Evening Start Formation ” on the 1 hourly time frame….

These are basically a ” BEARISH Reversal Formation”…..SO….it is best for You to step aside for now and do not re-entry again….

By then….You should have WON 3 - 4 trades and grabbing 200 - 300 pips out of this trend already..

So definitely DON”T NEED to be ” Greedy ” temporarily ….right ! * smile *

Alright…so much for this ” Profitable & Highly Effective Forex BREAKOUT Strategy “…

I shall pen off now..

Thanks for reading this far..

Hope You can now include another proven & extremely effectively BREAKOUT strategy to Your strategies arsenal too …..( and ace the market with confident ! )

To Your ( absolute ) FOREX SUCCESS,
- Aaron Tan ( your trading friend )