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 *

What Is Forex All About ?

” Forex ” also can be known as ” Spot Forex “, ” FX “ or ” Retail Forex ” basically refer to the foreign exchange market.

It is literally the largest financial market in the world with a total ( average ) volume of about $7 Trillions flowing in and out every day…

If You don’t know how ” HUGE ” a market that has $7 trillions flowing around each day….let me give You an example below by comparing to the commonly known stocks market..

One of the largest stocks exchange is the New York Stock Exchange ( NYSE ) - No Doubt about this !

But it only has volume of  approximately $20 - $25 billions each day…

So if we make a comparison between the Forex & NYSE….Forex is anytime much bigger by at least 6 -7 times..

That is ” How GIGANTIC ” the forex market is….

As such, due to the large volume ( $7 trillions market ) - That explains why forex trading provide retail traders ( like You and me ) with so many benefits as compared to other financial tool…

( read on below as I share more about the benefits later )

Forex Trading ? OK….. But What Do You Actually Trade ?

To put it in the simplest way - You are actually trading ” Money “, ” Currency ” Or ” Cash “…

And You trade the currency through a brokerage company or dealer.

In forex trading, You trade currencies in pair like this :

- The American Dollars against the Japanese Yen ( USD/JPY )

OR…

- The British Pounds against the Swiss Franc  ( GBP/CHF )

Because You are not buying anything that is physical ( unlike investing in gold or properties ), it could be rather ” weird or confusing ” to most people who just started with forex trading..

If You are indeed feeling confused by this idea….then just think of the entire forex trading as investing in a country.

For example :

If You think that the British Pounds ( GBP ) is going to be WEAK against the Dollars ( USD )….

( Perhaps because Britain’s economy is not as good as the USA….)

….Then You would be Selling GBP against the USD  ( GBP/USD ) - Which also means Your bias is a Down-Trend for this pair…

Likewise, if You are Buying ( GBP ) against the USD, then Your bias is Up-Trend for this pair.

In fact, as long as You know :

- Which direction to trade

- when to enter and when to exit ( with profits )

… then You are a winner for the trade.

Where Do You Trade This So Called ” Exchange Of Currencies ” Then ?

Unlike the stocks market, the forex market has neither a central exchange or physical location.

The entire market is run electronically across all banks ( 24hrs a day ) which is why it is considered the ” Over The Counter ( OTC )  / Interbank ” kind of market…

Previously, if You do not have a Really Deep Pocket  or  Big Fat Bank Account…..then there is no way You can trade in the forex market…

It is only available to the big institutions, major banks or traders with high net worth.

Only until the late 1990s - With the invention of the internet, then it is possible for ” retail traders or little guys like us ” to trade through online brokers.

As long as You have a proven set of profitable trading strategies, a computer ( or laptop ) , a relatively fast internet connection and of course some funds to start a trading account…..You can also start trading forex ( from anywhere You want ) !

Which Are The Currencies Being Traded ?

Every currency literally represents a country. So for any country You can think of, there is probably a currency that belongs to this country and being traded.

However, there are some currencies that are being traded ” more often ” than the others..

Below is a list of the more popular currencies for You to learn more :

As You can probably see from the ” symbol” column above as well that each currency is always 3 letters in symbol name.

Such as :  JPY, GBP, USD….

Why are these symbols constructed this way ….You might be wondering..

Well…that’s because the first 2 letters actually identify the name of the country…

….and the 3rd letter is the name of the country’s currency.

Example :

( JP ) Japanese  (Y) YEN ….that’s why it is ” JPY “

( GB)  Great Britian (P) Pounds…..that’s why ” GBP “

What Timing Are Currencies Being Traded In The Market ?

Forex trading is a 24 hours market because at any time around the world, there would be a financial institution or bank that is in operation.

….At about 7am ( asian time ), Australia would start it’s operation..

….Then at about 3pm ( 8am GMT ), London would come in and start it’s day..

A few hours later at about 8pm ( asian time but USA just turn morning  ), USA would join in and start it’s operation too…

And this pattern continues throughout the week ( except on the weekend where most banks are closed. )

Here’s an illustration of the  Trading ” Time Zone ” for You to understand more :

Currencies Distribution In The FX Market ( which is more popular ? )

The US Dollars ( USD ) is the most commonly traded currency commanding market share of more than 84%.

( This means most of the currencies pair would have USD in it…such as EUR/USD, USD/CHF, GBP/USD, USD/CAD……etc )

2nd place would be the EURO ( EUR ) having a market share of about 36%..

Then follow by the Japanese Yen ( YEN ) holding a market share of approximately 16%

Here’s an illustration for You to learn more :

Alright, so much for this post on the essential Forex Basics for You guys…

Next topic I am sharing is on : ” What are the benefits of Forex Trading “…

Click on the link below to proceed to the next topic :

* What Are The Benefits Of Forex Trading ?

In this post… I shall share on a forex trading strategy which I used to trade the monthly Non-Farm Payroll.

This trading strategy has very high accuracy and it is based on both the fundamental ( actual NFP numbers )….

…..as well as using Price Actions to assess the direction to trade and getting into the best ” entry ” point.

Some traders would just avoid trading the monthly NFP totally as the volatility is just so ” Wild ” and extremely ” High “…

If You do not have a strategy to trade ‘ extremely high volatility ” market’s condition….then it is best to avoid NFP definitely..

What for trade with ” uncertainty ” right ?

A BIG No No….as that is more like trading based on emotions & feelings…

As for myself…

I am literally a big fan of  ” high volatility ” market condition as there are very GOOD Pips to be made - In A Very Short Time Frame !

As such….NFP is one major news announcement and the market would 99% move MASSIVELY..

If You are still not very confident in Your NFP trading ….

Then this NFP forex trading strategy that I am sharing below would most probably benefit You tremendously…( For the next NFP ! )

Before I get into the details of this trading strategy…

Let me provide You with an illustrations showing You on my ” entry & exit ” so You can understand better when I explain the strategy..

Here’s the screen-shot with my entry & exit to share :

For this trade, I nail about 57 Pips ( after spreads )…

Which profited a nice USD $ 2,850 ….( in just a short 5 mins ! )

Can this be called ” fast profits “…?

You tell me …! * smile *

Here’s screen-shot of the earnings to share :

A You see from the diagram above…..although the trend still continues to plunge downwards…

But I only grab about 57 pips ( minus spreads ) and simply exit after that…

Enter fast…..exit fast during such high volatile market condition is the key to secure the profits I must say..

Furthermore…I do not usually use any fix Stop-Loss but solely depends on the ” price action ” of the market to determine my trading decisions…

Which includes cutting losses and exit for a profits ( when it is necessary )…

There are quite a few ” Price action ” trading strategies I use to trade the NFP ..

I will see what ” hint ” the market has given me and I would make my trading decisions ( buy/sell ) in real time…

For this trade, here’s how I execute my decisions to ” Sell ” :

If You don’t know yet….

For any major news announcement…there would be a factor of  ” Surprise  element ” involve..

This is especially so when the actual results are ” much different from the consensus “….

As such….the market sentiment would largely be affected & impacted by such ” element of surprise ” too..

And caused a rather ” Huge & Predictable ” market movement for us to grab some nice Pips from…

For this NFP….the actual results are ” So Much Better ” than the Consensus..

Hence…the USD would be much stronger …( at least for the first hour after the announcement )

This explains why I choose to ” SELL / SHORT ” this Eur/Usd.

Furthermore….the market has even gave me a better ” hint ” with the presents of that Long Upper Wick ….( after a very bullish move )

This definitely re-inforce my ” Anticipation ” of the SELL direction for this NFP trade..

And is my trading strategy for NFP realiable and accurate ?

Well….the profits of Usd $2,850 definitely can prove so right….* smile *

One thing for sure…..if You’re using any of the so called ” textbook technical indicators ” to trade major news such as the NFP..

Then it might be accurate at all & rather lagging in fact….. because everything happens just so fast…

One minute…..it could be UP by 100 Pips..

Next minute….it could retrace or plunge by another 150 Pips…

So learning forex trading strategy which is more ” current ” from the market itself such as the Price Action is definitely a better ( more profitable ) choice while trading the EXTREMELY Volatile NFP……

Agree ?

Alright…so much for this trading strategy to trade the Non-Farm Payroll…

I hope You have learnt something valuable from this post and would be more confident in trading the next NFP to come…

And of course…..grab Yourself so nice ” Quick Profits ” too…..!

Ophz…..never be greedy in any trading especially in a highly volatile market such as forex.

Don’t tell people I mentioned the words ” Quick Profits “…….ya !

Joking here…..* smile *

Feel free to read about my Forex Trading blog for other forex tips and trading strategies ..

Time for me to pen off for now…and go to bed !