It is already a very obvious fact that being able to ride on the Strong Trending currency pair in the forex market…

The rewards ( Profits ) that one can achieve is indeed Very Very Good….

But how good is good then ?

2x…..3x…..4x…or even 8x Your initial investment is very realistic once You know how to do it…..

……And most importantly - Knowing how to detect such STRONG TRENDING currency pair is the key here….

Like This :

With a STRONG trending currency pair like the one above…

Imagine if You invest just 1 standard lot……and by nailing 800 Pips from such Strong

Trend…..do You know what is Your ” rewards ” like ?

Yes…..that would be about 8 times MORE THAN Your initial investment.

Which calculated to be approximately USD $8,000 with $1,000 investment..

Or what most investor like to consider it as ” 800%” RETURNS….

Definitely Very Profitable once You know how to detect such STRONG Trending currency pair too - Which is what I am about to show You in this article. * smile *

HOWEVER….Most Traders Would FAILED Miserably :

Here’s why ..

Almost every traders who jumped into this forex trading game would have heard of this sentence :

” Trend if Your Friend……Just Follow The Trend ! “

…..at some point during their learning journey….

I am sure this sentence is very easy to understand by anyone as long as he/she understands simple English…..agree ?

BUT……how come majority of the traders only failed miserably and always NOT getting the results ( massive pips ) they truly desire …?

Or…..if they are lucky to jump into one such trend…..but most of the time, the trend just DID NOT move as much as they would like it too…..and ONLY to see all the profits accumulated earlier given back to the market when it rebound the other way…

Hmmmm…..what is the main problem here now…?

Are You also facing such frustrating problem currently or previously…?

That is - You would like to ride on the MASSIVE Trend in the market…..because You know the rewards are very good…..and best of all….it requires very little time on Your part to monitor  because You would be trading on the bigger time frame…( daily chart )

At most spend about 10 - 15 minutes to monitor each day….that’s it..

That is one of the biggest and most attractive benefit from riding such MASSIVE TREND in the market……no doubt about it….

But what’s the main key to succeed with Spotting Such Strong Trend then ?

And I would say…..it is about ZOOMING in on the ” Really Strong Trending ” currency pair…..in order to ride on those MASSIVE PIPS….and not just seeing a WHIP SAW market giving You undesirable fear and uncertainty…..

……making You want to pull out Your position most of the time…

The truth is that being able to scan for such STRONG TRENDING currency pair in the market can be considered rather ” tricky and challenging “ to most traders in fact…

As such, they would rather not do it…..although in the bottom of their heart….they really want to profit from such lucrative strong trend very much….

If You are also facing such confusions but at the same time, You are also one of those that would like to know how to scan for such Strong Trending currency pair to ride on….

Then read on as I am sharing the step-by-step explanations below.

There are in fact a few techniques I am using to scan for such strong trends…( without using any fundamental or reading complicated news….)

And today, I would be sharing on one such technique which is direct and very simple and yet fulfill the objective of spotting such strong trend You would like to profit from.

Here’s How You Do It :

In order for You to gauge ” How Strong ” is the currency pair….

We would be using 2 EMA to help with the tasks namely…

200 EMA   ( Turquoise )

30 EMA  ( White )

And all the charts we would be using are the DAILY time frame ONLY….

what You would want to find out is very simple…

Basically You would be comparing 2 different currency pairs and then grab the ” hints ” from there..

Example :

Let’s say the EUR/USD is in a very Strong DOWN-Trend…

At the same time…..the USD/CAD is in a Very Strong DOWN-TREND As Well..!

What does this tells You if You put the EUR/CAD together ?

Of course the pair EUR/CAD would be in a very ( very STRONG ) DOWN-TREND too right ?

Why so ?

Let me explains on this to help You understand better :

You see…..

When EUR/USD is in a strong Down-Trend ( daily chart )…..it means that the USD is Stronger than the EUR right ?

When You SELL EUR…..and BUY USD….it resulted in a DOWN-TREND..

At the same time…..You also spotted that USD/CAD is in a very strong DOWN-TREND too…

So it also means that USD is not WEAKER than the CAD…

Wow…..do You get the ” Obvious HINT ” here already ?

The CAD is so much STRONGER than the EUR….!

And if You pair the EUR/CAD together…….what would be the TREND like ?

See it for Yourself below ! * Smile *

See how strong the DOWN-TREND is now for the EURCAD from the illustration above ?

See how steep the gradient is for the 2 EMAS….?

POWER isn’t it….? * smile *

Now You understand why the conventional saying of : ” TREND is YOUR Friend…..Just Follow The Trend ” holds TRUE for so many decades !

So basically to make Your scanning easier…

You should inter-scan 2 or 3 of the different currency pairs with ” One Common ” Currency in there..

Maybe for a start….You can start with the USD…..since it is the most commonly traded and liquidity is very good.

You can compare for example :

” Gbp/Usd….Aud/Usd….Usd/Jpy…Eur/Usd….etc….etc…”

And then deploying the same technique of comparison just like how I did for the EUR/CAD above earlier…

Once You have gotten one such pair which You think would be TRENDING strongly…

You can then open up the chart….and plot the 2 EMAS ( 200  and 30 ) on it to see how steep are the 2 lines…

Most of the time…..if You see them as steep as the EURCAD example above…

You can almost sure that this is one currency pair that is TRENDING strongly…

And the next thing You need to do is of course to ride on it and grab the MASSIVE PIPS out of it…

But of course, You cannot simply just jump in and hope that everything would be fine end of the day..

There’s always a slight possibility that the trend would reverse or RETRACE quite abit before resuming in the prevailing trend again…

So making sure that it is giving YOU a good RISK/REWARD ratio is definitely essential here.

And of course….in order to reduce Your risk to a minimum….it would be good to enter into a position after the market has retraced to at least the 50% level or slightly more at 61.8%..

In this way…..at least You can grab more Pips because You are not selling at the bottom….but rather at a much higher price…..( if it is a down-trend….and vice-versa for Up-trend )

Simple isn’t it this technique on scanning for Strong Trending Currency Pair ?

Go give it a try on a DEMO account on the next trading day….and get more confident with such scanning…

Trust me when I say this :

…..By the time You can confidently ZOOM in on such ” Very Strong Trending ” currency pairs too….nailing those MASSIVE Pips in the market ( 200,300, 400 or even 800 Pips ) would not be a challenge to You anymore then….* smile *

Can You imagine how Your trading account would be GROWING then ….? LOL

How About Earnings Like This ?

( click to enlarge )

Yes…..this is the real screen shot of the earnings proof from ” Shorting ” the EURCAD…

( which is one of the LIVE trade I had )

Don’t get me wrong here…..as I am not trying to brag or something by showing this earning proof….

But rather….I would like to convey that fact that nailing such MASSIVE PIPS ( such as 659 Pips ) in indeed very realistic and NOT a challenge to me anymore as I understand how to spot for such Strong Trending Currency Pair…

Don’t believe that it can be done using the simple & proven technique I revealed above ?

Try it and You will know the truth ….! * smile *

In this post, I will be sharing a rather rare but ” Profitable ” forex trading strategy with You guys.

This is a trading strategy which takes advantage of the ” Gap/s ” in the forex market …( When You spotted one such ” Gap/s “…)

As You might already know that the forex exchange is a 24 hours market and that is why ” Gap/s ” is hardly seem in this market but ( maybe ) occasionally on Monday when market is open again after the break over the weekend.

The strategy I am sharing below is one that takes advantage of such Gap/s in the market and I managed to nail a nice 108 pips trading it.

Before I go straight into the ” details ” on this Gap/s forex strategy……do allow me to share a personal story here first with You….( don’t worry…just a short & sweet one…* smile * )

If You have been reading on my Forex Trading Empire blog, You would know by now that I am a strong believe of  PRICE ACTION Strategies.

In fact, it is by mastering such Powerful Price Action strategies that gave me a major turning point in my forex trading ….and with that….I mean ” finally get to see the results I long for & became a successful forex trader “…

( …Which ultimately enables me to quit my day job as a technician and trade forex full time…! )

So having known that I have sort of ” already mastered ” Price Action trading, some fellow readers actually wrote in to me asking for strategies to trade such ” Gap/s ” in the financial market.

And as I mentioned above that in the forex market, Gap/s is actually very rare except on Monday perhaps ….( or after a long holiday break for the market…)

Hence, these readers who wrote in to me are mostly ” stocks ” traders ! * grin *

Yes….in the stocks market, seeing such Gap/s is like seeing the ” forex market WIHOUT Gaps”…

It is THAT COMMON in the stock market..

This is so because the stocks market operate just like a day job kind of timing - Meaning the market would be closed when it is time for the employees to knock off….

Hence after this so called ” off ” period and market re-opened again, it is very normal to see Gap/s in the market for stocks traders..

So having read through their request, I begin to look out for a GAPPING market condition in the forex market then…..as I would like to write about a forex trading strategy on that to share with You guys..

Although it is rare to see Gap/s in the forex market, but once You learn this strategy from reading this post…..AND if You spot a Gap in future, You would know HOW to grab those pips and add some nice profits to Your pocket too !

Well….unless You don’t like to win and nail profits from the market….else I am sure any fellow forex traders would be more than keen to learn a forex strategy that works ( like a bang ) right ! )…* smile *

Alright….having done with my story…( told You it’s short and sweet ), now let’s get into the main strategy to trade the GAP in the forex market now..

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

Trading The GAP/s in the Forex Market - Step By Step Strategies Revealed

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

Again….just like what I mentioned in some of the forex strategies posts…

I will ” try ” to make it as easy & simple to understand as possible ok……( of course not too long winded I know…)

Just make sure You really read till the end of the post and read every single word so that You can grasp the entire concept of this strategy..

If needs to….just read 2nd…3rd….or even 5th times  - TILL You understand …..* smile *

It’s FREE to do so anyway….* grin *

OK…..let’s get serious now…

Here’s an screen-shot of where I ” Enter & Exit ” for this strategy - With Stop Loss planned too  :

( Nailing 108 Pips Profits )

If You have not trade any ” Gap “  that happens in the forex market before and wonder is it hard to master at this point of time..

Then I shall assure You that it is NOT That Hard once You can understand the ” concept and psychology ” behind this strategy.

Read on below..

It is an absolute fact that almost everything in this world would undergo a state of change almost every single second..

For example :

- Human would age….

- Those cute little babies would grow day by day …

- After the rain ….there would be sunshine..

- Almost nothing could possibly stay the same state forever…( generally )

However….there are some exceptional here though..

And these are the ” PSYCHOLOGY ” of the market..

As long as it is humans trading the market….there bound to have both FEAR & GREED involve..

This is especially so when  we are trading REAL MONEY here…..and there’s a BIG POSSIBILITY that anyone can lose money in the process……and basically Nobody likes to lose money in anyway….

Hence, the elements of  FEAR & GREED would always EXIST in any financial market….and especially true in Forex - A market where the volatility is so high !

So for this forex trading strategy that take advantages of the ” Gap/s ” in the forex market, it capitalizes on the Human Psychology as well..

Which explains why when there is a GAP UP , most of the time this GAP would get filled by the SELLERS ( bearish sentiment ) in no time….

This means when You can also read certain Price Actions & ” hints ” in the market, You would know whether how to trade this strategy profitably too.

Read on below as I share how to extract the ” hints ” from the market to put all odds on my side…

In fact, on that particular Monday when the forex market opens again, only the few EUR pairs are having such Gap/s…

So why do I decide to trade the EUR/JPY…..but NOT the EUR/USD then ?

Here’s my reason :

I do not like to trade currency pairs which are TOO CLOSELY associated….

Which in this case , the EUR is the common ” based ” currency….so they are definitely closely related…

If I decide to trade both pairs, then the risk would be DOUBLE as well….as both tend to move in the same direction……so if I am wrong…..both would give me headache at the same time…..!

As a full time trader now, I treat the ” RISK ” that I would encounter with extreme cautious and of course I would respect such RISK too…..

I always believe in NOT going against RISK that can be foreseen and NEVER PRESUME everything would be fine……

So for this situation, I decide to choose the EUR/JPY to trade because by looking at the USDJPY chart, it is a clear DOWN TREND / DOWN CHANNEL during that period…

Like this :

From the above screen-shot, You can also see that the USDJPY pair is in a nice DOWN CHANNEL for that period..

When USDJPY is in a DOWN-TREND….

Is USD STRONGER…….. Or JPY STRONGER ?

Am sure You would agree that it’s the JPY that is STRONGER ….right ?

JPY is Stronger than the USD ( which is weaker )…..that’s why it is a DOWN TREND for that period..

So since I know that generally the JPY is stronger than the USD…

Which do I choose to ” SHORT ” then ?  Is it the EURUSD……OR EURJPY ?

Of course I would choose the EURJPY to ” SHORT / SELL ” again for this strategy right since JPY is stronger and that would give me a better chance to succeed..

In forex trading, it is all about ” Knowing ” the PICTURE in the market and then use all these small proven hints to help You make better ( Profitable ) trading decisions end of the day….* smile *

If You are not trading with such confidence yet…..don’t give up…..because I believe if I can do it….You Guys Can Do It Too !  ( and I am not a university graduate ..NOT even having any financial background )

Hang on to Your goals in life and don’t let go…..that’s already half the battle won !

Successful people might not be as intelligent as You are…..but because they DARE to dream big and then work towards that BIG GOALS in life & Achieve SUCCESS…..no matter how hard it is……agree ?

Same for mastering this forex trading too…..! * smile *

Alright….enough of that ” positive thoughts ” stuff….let’s get back into the forex strategy on GAP.

Now that I decide to trade ( SHORT ) the EURJPY instead of the EURUSD ….though both pairs are seen with GAP/s in the market..

Next are the most critical elements to consider and they are namely :

1)  How Do I Decide When To Get Into the Trade To SHORT ?

2)  How Do I Decide What ” Take Profit ” Target To Aim For ?

3)  How Do I Decide What ” Stop Loss ” Target To Use As Well ?

Next coming up, I would be sharing on all these in a step by step manner…

Read On…

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

How Do I Decide When To Get Into the Trade To SHORT ?

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

Before anything, I need to highlight an important point here first about this EURJPY pair..

It would be good for YOU to consider this ” important point ” that I am sharing now for Your own tradings in future - To increase the odds of winning for Yourself….

You see….as I mentioned earlier that I would be ” SHORTING / SELL ” the EURJPY for this GAP strategy..

BUT….what if I tell You that this EURJPY pair is technically in an UP TREND ?

Does that means I am trading Counter Trend ?

Is that very risky like what other traders said so…?

If You are also wondering ” how uh “….

Don’t worry for now….as after You read my step by step explanations below, Your doubts would be all cleared by then….* smile *

Let me show You the Up-Trend/ Up Channel ( Screen Shot ) of This EURJPY :

As You can see too….this EURJPY is generally in an Up Trend as shown by the UP Channel ..

So although I am taking advantage of the ” GAP ” that happened  in the market…..I cannot just simply jump in and trade without confirming my ” rules & checklist ” though….

If  any trader simply ignore to go through the rules and checklist and hope that everything would be fine end of the day….then that’s the WRONG way to trade I must say..

Long term wise……this type of trader would only SUFFER…..and most likely GIVE UP this forex trading entirely because of the FEAR after losing all the money..

So are You one such trader ?

Hmmm……Not too late to know what’s RIGHT though…..* smile *

For me, I like to use ” CONFLUENCE ” from the market itself to convince myself that it is a set - up that is worth trading..

Yes…..that would include weighing all the RISKS INVOLVE….as well as the Rewards that can be expected…

Here’s how I do it :

1)  Although this EURJPY is in a general UPTREND……BUT  the level that I intend to SHORT actually coincides with the previous ” Critical Resistance Level “

( This is the resistance level that we saw about 400 Pips PLUNGED previously..)

So it is definitely one resistance level I would watch for again this time.

Here’s an illustration to show this ” Critical Resistance Level ” :

2)  Furthermore, this level that I would like to SHORT actually ” also ” touches the Upper Limit of the channel I drawn ( refer to illustration above )…

And the best thing is that a perfect ” PINBAR ” is seen at that upper trendline too - With The Price FAILING To Close Above that trendline !

This is definitely a good sign of a ” Reversal “ for me to SHORT….* smile *

But of course, with the PINBAR alone, it is NOT good enough for me to SHORT yet…

I need the next candle to be a ” BEARISH closed ” to confirm….

And just as I anticipated, after 4 hours, a BEARISH candle closed is spotted - Which is exactly what I am waiting for as a form of ” confluence ” indeed.

As such, I SHORTED 2 lots right at the closed of that Bearish Candle ..

Here’s a screen shot to show :

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

Next……How Do I Decide What ” Take Profit ” Target To Aim For ?

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

Too many traders commit the mistake of using ” any number ” they like while planning the Take Profit Level WITHOUT considering whether is it REALISTIC or not based on the Price Action in the market.

That is truly wild guessing or just trying their luck ….and hoping that everything would be fine…and their so called ” simply guessing numbers ” kind of Take Profit target would be hit somehow…

Hmmm….I do not like this way of trading definitely as I prefer to be in control instead of ” Hoping  that everything would be fine “….

In order to be in control and feeling really confidence about any position I take…..of course I need to use proper techniques to analyze the Price Action on the market for my ” numbers  ( Take Profits Target in this case ) to be used…

Here’s how I try to ” Anticipate ” what would happen next based on the market flow ( & trend characteristic ) :

Considering it is an uptrend channel for this EURJPY pair…

It is important that we consider whether the Take Profit target we planned to aim for is realistic or not…

( And NO…..we don’t do that by wild guessing or relying on luck …)

But try to anticipate what the market is likely to behave next based on the current Price Action..

Yes….in order for anyone to ” anticipate ” the way I do….it is paramount that Your chart reading and technical analysis skills must be good to a certain standard..

Or else…it would be hard for You to dissect the market like I do…

If You are not at that level yet…..don’t worry….just keep reading from my forex strategies and soon You will get more and more familiar in the process.

Ok…..since I am SHORTING this pair and it is technically on an uptrend…….BUT I already have all the ” confluence ” in place to support my SHORTING BIAS…

It is time to plan my Profit Target now…

Let me first consider the WORST CASE scenario ….

If this drop is just a retracement to the 50% level……can it hit my Profit Target ? - This is my first consideration since I am planning to exit right at the BOTTOM OF THE GAP.

And if You refer to the above screen again, You would see that even if it is just a RETRACEMENT to 50% before resuming Uptrend……My Profit Target Could BE HIT though…….which is good ~!

Of course the other situation would be that Price would plunge to the Lower Channel limit before bouncing up again….BUT this is not my concern as I am only trading the GAP.

So upon considering the worst case scenario, I planned my Take Profit target ( TP ) at the Price 125.900

Here’s an screen shot to show :

Do note that the ” ACTUAL BOTTOM Of THE GAP ” is lower than 125.900…..but I like to give it some allowance by NOT planning exactly at that edge…

After all… forex trading is just a game of WINNING the probability as many time as possible ….again and again to make money every month.….right ! * smile *

Now that we know we are SELLING / SHORTING this EURJPY at Price 126.98…

And aiming the Take Profit Target at Price 125.900..

What else we need to do next ?

The STOP LOSS point of course…….( unless You don’t like to use one…..! Hmm….But I DO HOPE You at least have a Mental Stop Loss Level …….)

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

Last Point…….How Do I Decide What ” Stop Loss ” Target To Use As Well ?

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

When mentioning about these words ” Stop Loss ” to traders…..it would somehow trigger mixed feelings in each individual…

Why so ?

Because some traders would ONLY feel comfortable when they are using a pre-set stop loss level….

Whereas some others might be comfortable with just a ” Mental Stop Loss “…

On the other hand……some would even go WITHOUT a Stop Loss level - BECAUSE they have been getting hit and hit again until it made them lose confidence with using a Stop Loss now……Arghh!

I must admit that placing Stop Loss level ” Correctly “ can be a REAL CHALLENGE & TRICKY for most ( struggling ) traders.

Using too tight a Stop Loss…..You might get hit….again and again only to see the trend goes the direction You previously wanted..

On the opposite, if You choose to use a bigger Stop Loss, You could not achieve a Good Risk/Reward ratio for Your trades…….

Hmmm…..that’s really frustrating I can understand…… as I also suffer from these problems years back before I succeed with this forex trading.

But once I understand these 2 elements, I begin to see good success :

Element #1 ) The sole purpose of placing a Stop Loss is to ” Protect Our Capital Should The Trade Goes Against Us - Because We Are Wrong About The Direction “

Element #2 ) The Stop Loss level should be placed at a level that the Price is NOT / Less Likely To Breach..

If You allow Yourself to understand these 2 elements and adhere strictly to them for all Your trades…..

…..then Your trading confidence would improve significantly and the fear of seeing Your Stop Loss hit again and again previously would be progressively diminished too by then…

So for this GAP forex strategy, how do I decide ” where ” to place the Stop Loss level in order to obey the 2 essential elements I shared above ?

Very simple for this set - up..

Remember I mentioned these 2 factors above :

1)  Our Entry price coincides with the Previous ” Critical Resistance ” level..

2)  Nice PINBAR spotted bouncing off the Upper Channel Line..

Based on these 2 ” facts “….it is definitely good enough to place the Stop Loss just above that PinBAR !

And I like to give about 10 pips allowance from the tip of the Pinbar just to give it some reasonable room to breathe.

So the calculated Stop Loss level is set at Price 127.58 ( 60 Pips from entry price )

Here’s a Screen Shot to help You Understand more :

A nice and tight 60 pips Stop Loss place above the PINBAR…

And aiming for 108 Pips of Take Profit target…..

This gives us a ( reasonably ) good Risk/Reward ratio of  about 1 : 1.8

Each of these analysis were done before the closed of that 4 hourly Bearish Candle..

And it only takes me about 2 minutes to derive all these numbers and then made my final decision of whether should I trade this set - up…..* smile *

Of course it might look like alot of things to consider here….but once You get better and more confidence through practice…all these would then become 2nd nature to You….

Just like driving…You don’t really take so long to think as compared to the period while You’re learning how to drive…..agree ?

Same thing here applies for forex market analysis….

Of course the main key here is to learn the ” proper techniques ” to do so….and Price Action is the answer….no doubt!

And after about 15 hours of trading….the Profit Target for this trade was hit at Price 125.900.

( for a nice profits of 108 pips )

Here’s the screen shot to share :

Here’s the earnings proof with ” Entry , Take Profit & Stop Loss ” for this trade :

( click to enlarge )

Using this ” Gap ” forex trading strategy, I nailed 108 pips which equates to a nice Profits of USD $2321.82. ( As shown above )

Although ” Gap” is not very common in the forex market as I mentioned right at the start of this post…

BUT by equipping oneself with a proven strategy to trade such GAP ….AND when You happen to spot them in future, You would also know how to trade such ” Gap ” confidently then - Which is definitely an advantage.

Most importantly, You would know what are the ” important factors ” to consider too before deciding whether is that set-up a High Probability one……

And You would also know how to calculate and take all foreseen ” RISKS ” into consideration too….( which is very crucial for long term trading success )

Of course, do not trade LIVE until You are very confident with this trading strategy though..

Practice it on a DEMO account first till You’re confident and ” Really Confident ” is advisable…* smile *

One thing to note here is that if You are competent in trading Price Action strategies already….then trading such strategy which takes advantage of the ” GAP ” in the market is definitely BREEZE to You then…

So do read up more on Price Action if necessary ya….

I shall conclude here for this post..

And I hope You have learn a new ( proven ) forex trading strategy to be included in Your ” strategies basket ” after this…* smile *

Thanks for reading this far…

Happy Trading and spotting the ” GAP/S ” !

Wait….before You proceed onto reading the entire post on this ” High Winning Probability Forex Strategy “….

Let me play a little forex game with You here.

Looking at the forex chart below….do You have any idea how I :

1) Shorted at that point…

2) Exited Lot 1 at that location..

3) And then exited Lot 2 at the later location ?

For a ( Massive ) total  profits of  975 Pips gained… * smile *

So how did You fare ?

Manage to analyze how I grab those pips using just the patterns and price actions that’s presented on the above illustration ?

If You do….then let me congrats You….as You’re also on the way to be a very good and competent price actions trader in no time..

( Or perhaps You are already one….* smile * )

However….for those who do not have a single clue about how I nailed those massive 975 pips using these patterns..

Then You should really read the entire post as I would be sharing the step by step explanations on :

1) Why I choose to SHORT…

2) Why I decide to enter at that Price to short…

3)  How I plan my 2 lots exit strategy..

This is definitely one of the most accurate strategy one can use to trade the forex market …

And the best thing is that it only involves simple ” Patterns Formation & Trendline Bounce “…combined with little Price Actions.

( No technical indicators at all ….as You can also see ! )

————————————————————————————————————–

————————————————————————————————————–

You know something here…

Ever since I started this forex blog sharing tips and trading strategies…

Many fellow traders from all over the world have been sending me emails asking basically any kind of  Forex questions…

One of the most common is this question  ( and it is also one that I consider the most critical too ) :

“….What are the steps that I consider before actually entering into any position that get me high winning success and consistent profits each month..? “

Of course….different traders would phrase in different version of their own words but generally…..they carry the same intention…

They wish to know my ” entire decision making process ” before committing into any position… ( whether Buy or Sell trades )

Logically….if YOU CAN ALSO see what a successful trader sees each time before he trades…

You would also be getting ” almost ” the same results ( or at least close results to him/her )….right ?

So upon knowing what these readers would like to know very much….

I really want to share as much as possible through this forex blog…in order to help You guys succeed..

Fact is……since I cannot transfer my entire brain to all of You guys…..( technology not so advance yet I am sure….LOL )

That’s why the more feasible way is to start this section in my forex blog which I called it  ” Forex Case Studies “….

Here I will be sharing each different LIVE trades I have traded…

And include all the ” Whys….Hows….”

…..basically all the essential considerations  You can also include  - In order to enhance the winning probability each time You choose to trade…

If You don’t know this FACT about forex trading yet…..then it’s time to change Your mindset once for all…

” Forex trading is none other than a game of probability……”

“….If You can WIN MORE than You Lose ( and repeat the process )…., You will make Profits each month consistently “…..

Bear this fact in mind….

….and You could really go far and achieve the kind of success You desire with forex trading too…

Alright….so much for the above sharing…

Let’s dive into step by step explanations on the trade which I nailed 975 pips profits…..shall we ?

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

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

Step By Step Explanations For Forex Strategy

The GBP ( pound) has been very weak for the month of September as the economic data and GDP have been rather disappointing…..

I am taking into account this fact and simply scan all the GBP crosses for trading opportunities to confirm my BEARISH BIAS…

The common GBP crosses I would scan are namely :  Gbp/Jpy….Gbp/Chf…..Gbp/Cad…..Gbp/Usd….Gbp/Nzd

And without much effort….I noticed these patterns on the GBP/CHF….on the daily time frame…

The set - up You saw above is considered one of the ( most ) reliable ” Bearish ” technical set up …

Why so ?

Because it combined 2 patterns formation here namely :

1) Double Top formation

2) Descending Trendline ( to further confirm the Bearish bias )

The price bounced off the trendline for the 3rd time…

And it could be a good trading opportunity for me…

However….due to the current support at that period…

I would need to wait for the price to break that support first ( provided it breaks )……before I could enter and SHORT this pair Gbp/Chf.

Patience is really the key factor here if You want to trade a ” Good & Profitable ” set up..

I personally waited for about 3 days before the price broke the previous support and enter the ” zone ” I wanted……

Once the price entered the ” zone ” that I wanted ….( which is breaking the previous support )

I shorted this pair Gbp/Chf with 2 separate lots..

2 separate lots are very essential as it enables me to exit partial lot at certain pre-determined Profit target…

And allow the 2nd lot to ride the down trend for max pips…

For all my strategies viewing from the daily time frame ( just like this one )….

I would normally enter using this 2 lots strategy….as there are ” always ” lots of pips to be grabbed from the market.

And of course….using a stop loss that would give You a ” Good risk/reward” ratio is mandatory for such big move and profit target.

This explains why most of the set - ups that I choose to enter are mostly those that would ” move massively”..

Since for this strategy, I am not using any technical indicators….not even ” moving averages “….

Then how do I planned my profit target 1 and 2 ?

This is what I am planning to share next ….

How Do I Planned For My Profit Target #1 and # 2 ?

It is a well known fact that price in the forex market tend to stall at a particular support or resistance points previously..

That is why a ” double top or double bottom ” is formed in the market….

So taking advantage of this fact…

I planned both my profit target points with reference to previous support that has formed in this Gbp/Chf.

As You can also see from the chart above…

The Take Profit ( TP 1 ) is set at price 1.67930

….which is slightly above the 1st ( previous ) support point…

The Take Profit ( TP2 ) is set at price 1.63200

…. Again….also set above the 2nd ( previous ) support point..

( Note : I would never aim exactly at the low of the previous support…..as that is not realistic. I would rather aim slightly higher as the price is more likely to reach. Being ” Consecutive ” is the keyword here…..)

Maybe at this point….You want to ask me this question too :

“…Hey Aaron….how do You know whether the price would move to Your Take Profits #1 and #2 or not…? “

My answer :  ” I really don’t know…..as nobody can predict exactly what would happen next in the forex market….”

Only when the price actually moves….then the truth would be out…..agree ?

That is why I am using the previous support as a profit targets to aim for….

With these facts :

1) Double Top

2) Descending Trendline ( Bounce for 3rd time )

3)  GBP is weak for this period fundamentally..

I am willing to ride on this ” down trend “  sentiment….

But just like any other things we do in life….

We need some backup plan for contingency….in case the worst happen…

For this case….I would at least ” secure ” the profits…….or at least reduce the risk further…

That explains why I enter with 2 separate lots for this trade….

Because I intend to ride for massive pips …( if it happens )….

And using just 1 lot is definitely much too risky…

But by using 2 separate lots….I can exit partial first after the first target…

Then I can shift my 2nd lot stop loss accordingly to reduce risk…..while still riding the wave…..* smile *

It is indeed very essential if You’re also planning to ride such massive pips in future…..

OK….so how did this trade progress…?

The 1st Profit Target was hit on the 3rd day of trading at Price 1.67930

( 251 Pips Profits…..and the stop loss for 2nd lot shifted to Break-even then… )

Subsequently….the 2nd Profit Target was hit after 1 week + of trading at Price 1.63200

( for a whopping 724 Pips profits ..! )

Total pips nailed for this trade is =  251 + 724  =  975 Pips !

Definitely can be considered  ” MASSIVE Trend ” riding for this case…..agree ?

———————————————————————————————————–

———————————————————————————————————–

Here’s the earning screen shot for Profit Target #1  ( 251 Pips ) to share :

( Click to enlarge )

251 Pips gained for this 1st lot is equivalent to Profits Usd $ 2405.39 ( trading 1 standard lot )

And here’s the earnings screen shot for Profit Target #2 ( 724 Pips ) to share :

( click to enlarge )

724 Pips gained for this 2nd lot netted me Usd $6948.34 in profits….( 1 standard lot )

Notice for this earnings screen shot….the Stop Loss ( SL ) has been shifted to the Price 1.66440…

This is already ” locking in 400 pips ” if You can do the simple math too…

Aiming for ” massive pips ” is definitely good and very profitable..

But it is also vital that You lock in the pips accordingly as the trade continues to go Your direction and Profits still growing…

Just like for this 2nd lot ….

As the pips keep accumulating….it would be really stupid if I did not “ trail ” along as it progress….

Imagine seeing ALL  700+ pips gained reversing and turning against You ……ended up losing all those valuable pips…

That’s equivalent to banging “A HARD Wall big time ” to me……

Do You agree that can be really detrimental & negative both to one’s confidence and morale..?

Well fortunately…..it can be avoided at all cost…

For this trade….all I have to do is lock in those pips ( profits ) accordingly…..

….while at the same time giving some ” breathing space ” for the trade to develop without getting hit unnecessarily..

There’s really no fix formula to how much You should lock it…

Just depends on how much You have accumulated …

AND….how many of those pips….You want to secure….that’s all…

Remember…in any trading game….nothing is certain….nothing is guarantee…

So it is our duty to protect and secure the pips we have accumulated…

If the trade go against You…..nobody would feel sorry for You…..

The market would not feel guilty too just because it has reversed on Your position causing You to lose all the 700+ pips You have gained earlier…! ( Arghhh….)

Ride the Pips……Lock in…..& Lock in MORE……that’s the key. * smile *

———————————————————————————————————–

———————————————————————————————————-

Alright…..up till this point…

That’s pretty much all I would like to share with You about this ” High Probability Forex Strategy ” using just :

1) Double Top

2) Descending Trendline Bounce

3) Fundamentally weak GBP

4) Support and resistance to plan for profit targets…

Which means once You can trade using these elements from the market…

You do not need to rely on those ” lagging textbook technical indicators ” anymore too……if You want..

Enough of seeing those situation when You’re always too late to enter into a trend because You’re waiting for those technical indicators to show You the signals to enter …..right !

That’s NOT the way to trade the forex market…..for sure!

I have been through the frustrating phase too…..always LATE on buying or selling into a position because those lagging indicators are simply lagging in nature..

The moment I learn about trading solely using ” Price Actions + Patterns Formation“….

My monthly trading results complete changed !…….And for the better…..No joke !

It makes me trade really confidently too…..without having to worry about being late on my entry point….

YES…..even with merely price actions + patterns formation….I can spot good trading opportunity for such ” massive trend ” too…

You have gone through all the illustrations and my entire ” decision making process ” above ……

And now You Know…..* smile *

The key to achieve such MASSIVE Pips…..is to be abled to lock in those pips….and even more pips as the trade progress…

And of course…..must be dare to see the entire trade through……and ride on the major trend  that prevails..!

Thanks for reading this far…..

Hope this is a valuable learning experience to You so far…..

Good luck in Your trading and happy riding the next MASSIVE Trend too !