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 )

Forex News Trading Strategy Combined With Price Actions

If You have been trading the fx market for sometime now…

Then it is already NOT new to know that Fundamental News is one of the main driver of crazy & wild price swing in the forex market…

That’s right…..Crazy, Extremely Volatile price move of at least 200 - 300 pips in just a few hours is very common with high impact news announcement.

That’s because the big players, major institutes and banks would use the results of such news announcement to decide whether to buy / sell into a currency pair/s.

Moreover, these news also directly reflect the economic health of a certain country.

So big time traders who are holding onto these currency pairs ( as assets ) would be very much affected by the economic data.

This explains why economic news announcement carries a lot of weight and impact for any traders in the market……

BECAUSE…. their results would lead to EXPLOSIVE & MASSIVE movements in the market.

When that happens, you and me can go in and make some really nice Pip ( profits ) definitely.

And in this article today :

I will be sharing on one of the highly - effective & time-tested ( again and again ) strategy to ace such highly volatile news announcement & increasing Your winning probabilily significantly.

Many traders already knew that trading the economic news announcement in the forex market can be very predictable and profitable…..in fact.

Well after all, the market moves simply due to traders’ bias on a certain currency profitability factor ………..right !

BUT…..the sad fact is that most traders are literally doing it all WRONG.

They tried to trade a few times…..maybe managed to win some…..lose some..

But end of the day, they are LOSING more than they win….

….So these losing traders would think that trading news in the market is NOT as easy as it seems……..NOR is it as profitable as they thought after all.

They then give it up totally and FAIL to enjoy the enormous benefits that could be achieved with trading the economic news.

While on the other hand…..some traders ( who are in the KNOW ) are secretly grabbing those valuable pips by trading the news released each week…

Making their trading account fatter and fatter progressively….

So if You’re one such trader who failed to master news trading previously……

Or……. You just want to know how to trade such volatile & profitable news announcement confidently each time….

Read on below as I share one such forex strategy on news trading - With High Accuracy.

Here we go…

Learn Highly Accurate News Trading Strategy :

For any strategy that I am using to profit the fx market..

I would ” for sure ” based it around the more powerful Price Action strategies.

Nothing can beats Price Action strategies in terms of  Reliability, Effectiveness & Profitability.

( That’s provided You already master it of course…)

So for this news announcement strategy, I will be combining these 2 elements :

1)  An Actual News Announcement Results For A Certain Currency

However, do take note that NOT ALL the news announcement are profitable for trading though.

I only look for those that are either ” Very Good …or Very Bad “…

Because when this happens, there would be ” Reaction ” from the big time traders & players…

So it would eventually lead to BIG Movements in the forex market as well…

More on that later below with examples

2)  Using Price Actions For Optimum Entry & Increase Winning Odds

Price Actions are the core data in the forex market !  No doubt….

….. and it is the closest ” hint ” any traders can siphon from the market for his/her decisions marking process.

This is due to the simple fact that Price Actions that exist in the market is very reliable and they are NOT lagging.

They are the TRUTH of the market.

So when……. WHAT You see in the market is the actual ” truth “, it would help You make More Reliable & Accurate decisions too.

That’s about it.

For this news trading strategy, I will be trading the AUD/USD..

Because the News Announcement is for the Australia Trade Balance

It is scheduled for release on Jan 11th at 0030 ( GMT )

However, the ACTUAL Result turns out to be Much Worst ( LOWER ) than the Consensus.

Here’s a screen-shot to share with You :

When that happens, I know there would be some good pips to be grabbed out of this trade.


Remember I told You earlier one that we are only interested with either :

….. ” A very good OR A very bad ones ” for any news trading.

So for this one, the ACTUAL Result is much ” Worst ” than the Consensus..

Hence, it is a bad one for the Aud/Usd…..& our bias is to ” ONLY ” Short / SELL this pair.

Continue reading below as I show You :

1) How to spot for the profitable price actions for optimum entry

2) How to determine what stop-loss & profit-target to use for good reward/risk ratio

Here’s the exact Set-Up I saw Just Before The News
Announcement At 0030 GMT …..

This is the set-up I saw at 0030 GMT - which is a litle ” Doji ” implying UNDECISIVE-ness in the market.

A very common candlestick formation prior to any impactful news announcement.

At the same time….there is also another good ” Confluence “ which I saw from this chart too.


Can You also spot it like I do ?

Nevermind, let me save you sometime for now and just show it to you below :

Yes, a nice ” Down Channel “ has been spotted too when I plotted the 2 trendlines as shown above.

So with the such ” Down Channel ” showing +  Exact news release WORST than actual…

It is a very STRONG  hint that our decision to ONLY ” Short / Sell “  is much supported.

HOWEVER…..as always…..

I Do NOT just jump in and SHORT like that…


I would wait for a better price to get in for my sell though.

A good entry would be the 50% Pullback definitely.

If you have been following my forex tips and strategies so far…

You would known very well by now that I place a lot of emphasis on Price Pullback for all my trades.

This is very essential to achieve a Good Reward / Risk ratio.

And so I waited.

Indeed …..shortly after the news announcement, the price actually CLIMBS to the 50% fibonacci level !

After 60 minutes, the Price Pullback completed by forming a Bearish Candle.

Which is a good entry point for me by seeing that.

Like This :

As You can also see from the above illustrations too…

The Price hit the 50% Fibo line and bounce nicely off it…

Exactly the kind of set-up I normally would like to trade.

I enter to SELL at the price of 0.99360 ( after closed of that bear candle )

Stop- Loss set at 0.99560 ( 20 pips risk )

But How About The Profit Target ?

Just anyhow guess number ?

….Or don’t need to set at all….just see how it goes ?


Hmmm…that’s NOT my trading style..

I prefer to use the chart to derive a ” Logical ” Profit Target though.


Here’s how :

As we already spotted a Nice ” Down Channel ” previously…

So I would be using the ” Lower Limits ” of the channel for my Profit Target definitely.

Here’s How I Derive The Price Target :

I set the Profit Target just ” slightly above ” the lower limit of the channel …

And that is at the Price of 0.98860.

I do not want to set exactly at the lower limit but ” slightly above ” it instead.

This is being conservative and making it a more ” realistic ” target to be hit.

My trading style ! * smile *

Alright, let me recap the details for this trade once again :

-  Entry at Price 0.99360

-  Stop- Loss at Price 0.99560  ( 20 Pips Risk )

-  Profit Target at Price 0.98860  ( 50 Pips Rewards )

With these parameters, I am getting a Good Reward/Risk ratio of more than 2x.

Definitely a good one.

So How Did This Trade Progress After That ?

Check it out :

The Profit Target was hit after about 45 minutes of trading after my SELL entry.

In fact, if You see the chart above too….

You can also notice that the candle are really BEARISH with those Long Candles one after another.

And they happened shortly after that 50% Fibonacci Pullback which I am waiting for .

But why does this happens ?

Why the Price literally PLUNGED so fiercely ” shortly ” after that Pullback ?

Very simple here…..

…. And that’s because those BIG time traders & institutes, MAJOR Banks & Majority of retail traders ( like me and YOU ) are also watching such Fibonacci Retracement Levels.

In any trading game, as long as You’re following the MAJORITY…

You are going to be enjoying those Profitable Rides Of Pips too….

……& GROW Your trading account progressively !  * smile *


Here’s the earnings screen-shot for this trade to share :
( with the Entry price, Stop-Loss & TP point )

A nice profits of Usd $2k for this trade.

Spending about 2hrs+ in one morning….

Not too bad isn’t it ..?

Normally about this time of the morning between 8am - 10pm, I will be spending on workouts.

Either at the gym or pool downstairs.

But for today, I have to skip that because I am watching this news announcement which scheduled for release at 0030 GMT ( about 0830 am in Singapore )

The Set-Up is too good to give it a missed actually….* smile *

I missed my exercises for one morning….but made $2k for this trade…

Worth it at all ?

You tell me ….* smile *

So What’s The Conclusion For This Trade Then ?

You seen the results ( & profits ) from this AudUsd trade based on news trading strategy.

You seen the entire decision making process as well..

Is it hard at all ?

Yes and NO….right ?

Yes…it is hard IF You don’t know how to do it…

NO…it is NOT hard at all but rather EASY once You can see things like I do……

Agree as well ?

So my conclusion is that - IF You are NOT confident in trading such volatile & highly impactful news announcment yet…

Perhaps spending a little bit more effort to master what You should then…

It would definintely PAY OFF and reward You very well in the long run too .

Remember this :

- A very bad or very good News Announcement..

- Combined with Simple Price Actions in the forex market..

It can really give You a ( Very ) High Winning Accuracy….no doubt about this.


No point worrying about getting caught in the WRONG direction because the market is too volatile..

There’s no need to be feeling fearful or worrying about Your trade at all - Once You can
combined these 2 Critical Elements for such News Announcement trades as well.

Alright. So much for this strategy on :

Combining Fundamental News Announcement + Simple Price Actions in the market


Practise it…..Master it…

And then add this Powerful news trading strategy to Your arsenal - To help You profit from the forex market with high confidence & accuracy in no time !

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Happy checking out ya.

Thanks for reading this far.



Sincerely,
-Aaron Tan ( your trading friend )