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 )

You might have already heard that - Having the right “ trading mindset or psychology “ is vital to any traders who are serious about succeeding with forex.

But what exactly does having the “ RIGHT trading mindset or psychology “ means then ?

After all, it is just a simple sentence with less than 10 words in it……

……..Sure it is not hard to master too……right ?

If it is so simple to be understood, how come 95% of traders still struggle to break-even every month ?

This is a standard question that every trader has to ponder hard for awhile during their journey to achieving success with their trading .

So in this post, allow me to shed some light to help You guys understand more and clear some mist….* smile *

Yes…. it is indeed true that anyone with a normal IQ level can also make ( very ) nice income from forex trading each and every month.

And I am NOT super smart myself too and with much determinations and perserverance…..I have made it to be a full time trader for more than 5 years now…

(  That’s why I dare to say that being super smart is not essential at all to succeed. Just ” Normal ” is enough….* smile * )

———————————————————————-

The Key Elements To Forex Success

———————————————————————

The key is possessing what I called the “ Market Wise “ trait.

With this, I mean You need to be able to handle LOSING equally well as winning.

Forex trading is merely a game of probability, some trades You would win, some trades You would lose.

The whole point here is that as long as You win more than You lose, You make profits. Simple!

Since nobody would be sad when he/she wins in forex, it is the moment when they lose that trigger all the UNDESIRABLE problems though.

When the possibility of losing real money exists, people tend to have FEAR as generally nobody likes to lose in anyway.

So with this fact, how can You overcome the fear of losing while trying to master forex trading ?

As without Overcoming the Undesirable FEAR, it is very hard or seemingly impossible for You to trade with confidence and adopt sound judgment ability.

———————————————————————————-

Here’s what You can do ( Proven Techniques ) :

———————————————————————————-

First and foremost, You have to accept the fact that You would lose in the forex market when You are wrong.

Losing in any trading game is really no big deal….

The important factor here is how much You lose when you are wrong actually.

When You are wrong and You lose the entire account as compared to losing just 2 -5% of your trading capital, which is more detrimental?

Obviously it is the first situation when You lose the entire account that is more detrimental and would affect You MORE right?

So what can You do about this then?

=> You can trade using a nana or micro account for a start to train Yourself to get use to trading in a LIVE market environment first.

( Executing positions with good RISK/REWARDS ratio & follow through Your trading plans closely at the same time….If You would like to read more on this aspect, do drop by the other posts in my forex blog where I share more on forex trading strategies later too. Or You can subscribe to my forex tips and newsletters service. It’s f.ree . )

As You get better and more confident in Your trading, Your account size should be growing steadily and healthily at the same time too.

Once You can achieve a particular “ Return On Investment ( ROI ) “ for a few consecutive months…..

……..You can then plan to aim for much bigger targets using a much bigger funds in Your forex trading.

So the first major barrier is to overcome the trading fear that arise from “ Losing itself “ that You always have…..

…..and once done that, everything should fall in place as You sail toward Your monthly trading goals and accumulating much bigger profits progressively !

By then……You would truly understand why I claim that :

“  No “ Secret or Holy Grail “ systems needed here, just overcoming the fear from losing and that is almost half the battle won for  You ! “

how to avoid forex scam

When a market is ( VERY ) Lucrative, one thing would sure happen…

And that is - It would attract tons of  SCAMMERS to come in and have a fair share of the big fat money pie too.

Sadly……. forex trading is one such market that are filled with ” Scammers & Vicious Merchants ” all around selling their so called “ Holy Grail “ of forex trading.

So given the fact that scammers are all around in this market, how can YOU avoid falling into buying their Scams then?

In fact….if You don’t know this yet…. ( do read the below carefully and inprint that once and for all into Your brain from now onwards ! )

Nowadays, scammers are getting better and better with their persuasion skills indeed….

…… and most of the time, it is seemingly impossible to detect any flaw or loop-hole in their product’s sale message.

Because they generally targeing on both Your strong desire to succeed ….( and the GREED of those seeking to Get-Rich-Quick ! )…

Once You put Yourself in such a vulnerable position , You would literally BLIND Yourself to any logical thoughts then….with Your total defence system down too…

When that happen, You would happily buy into their products ” So Willingly ” ….( perhaps even thinking that You have got Yourself a super good deal and a HOLY-GRAIL system ! )

That is the true capability of those true scammers and truly consider a kind of ( dark ) manipulation technique they use - No joke!

If You have been unfortunate and been scammed previously, then You would know better how ” Being Cheated ” it is……right ?

( Really shitty feeling to realize that we have been CHEATED & GOT SCAMMED ….no doubt ! )

I myself have bought into more than 20 scammed products too during my beginner’s days while trying to learn forex trading the right way.

These vicious merchants managed to take advantage of innocent victims - BECAUSE they understand the so called consumers’ mindset very well ( much better than the consumers’ themselves ! ).

( PS: After all…..which human beings do not want the quickiest & easiest method/system to get RICH QUICK …right ? )

Below are a few simple yet effective rules I am sharing to help minimize the possibility of being SCAMMED online:

1)  AVOID anything that makes it sound too good to be true (  especially when they promise amazing returns )….. This is especially true for most “ Automatic “ systems or the so called Forex Robot.

2)  From my own observations, if a particular systems make bold claims and even try to charge very high price ( more than 500 bucks for some ebooks You can download instantly ), then it would be good that You avoid it.

3)  Lastly, always make sure that there is a money back refund policy or something to minimize Your risk - should the system does NOT deliver their claim.

Let’s face the truth here……

There is no way to tell whether it is a proven system or merely SCAM merely by reading their sales page. The only way is to test the system out Yourself.

Hence, a good and trustable product should at least comes with some form of refund policy just to be fair to the buyers.

Follow these 3 guidelines I shared above BEFORE You jump into the next forex product purchased that You cannot resist…..

….and You can generally save yourself ( and your pocket ) some unnecessary trouble…..* smile *

Just bear in mind that most scammers are targeting the “ Greedy side & Our Strong Desire to achieve things easily “ with us humans after all! …( remember…..remember ! )

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

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

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

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

…….That is :

What do You think would happen IF….:

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

What’s Your answer to the above question …?

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

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

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

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

Let me elaborate more on this for You…..

———————————————-

For example :

——————————————–

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

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

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

And when that happens….

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

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

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

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

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

Why so ?

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

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

Moreover……….

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

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

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

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

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

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

So without much further ado…

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

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

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

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

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

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

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

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

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

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

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

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

Forex Long Candle Strategy

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

As You can see on the illustrations above too….

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

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

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

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

Why I know that ?

Simple !

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

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

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

* smile *…

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

We should be ” Extremely Happy ” in fact….

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

The Profit potentials that follow would be HUGE !

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

( when You know ” HOW ” …that is )

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

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

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

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

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

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

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

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

Here’s the illustrations to help You recap again :

Forex Long Candle Strategy

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

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

- 23.6 %

- 38.2 %

- 50.0 %

- 61.8 %

- 100.0 %

A few levels for one to decide on…

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

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

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

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

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

So how then ?

Not very tough on this one actually…

Since we don’t want too low….

Don’t want too high either…

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

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

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

So…..

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

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

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

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

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

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

( on the 4 hourly time-frame )

Forex Long Candle Strategy

As You can also see above…

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

* smile *

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

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

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

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

Let me answer part 1 first for now :

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

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

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

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

Here’s an illustrations to help You understand more :

Forex Long Candle Strategy

With that ” Optimum Retracement Level ” satisfied…

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

Nothing complicated though……

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

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

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

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

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

Forex Long Candle Trading Strategy

And upon calculating the Stop-Loss needed…

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

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

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

With the critical Stop - Loss being calculated..

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

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

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

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

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

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

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

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

So considering my Stop- Loss is 60 Pips….

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

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

And what do I do next then?

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

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

Forex Long Candle Trading Strategy

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

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

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

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

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

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

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

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

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

* smile *

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

Agree ?

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

Here’s the answer :

Forex Long Candle Strategy

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

The price did NOT plunge down straight away actually..

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

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

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

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

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

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

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

I executed the exits in 2 different price levels….

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

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

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

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

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

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

Forex Long Candle Strategy

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

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

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

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

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

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

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

Here’s why :

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

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

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

So any LONG CANDLE appearing in the market….

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

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

No doubt about that ! * smile *

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

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

( Maybe tomorrow…. ? )

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

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

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

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

1)  Price ” Bouncing ” Off  A ( Down ) Trend - Line

2)  And Then….. Relying on a ” Bullish REJECTION Zone “ To Acheive A  High Probability ( Low Risk…HIGH Rewards ) Entry..

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

For a ranging market… ( or the so called Sideway market )…..

We would use a ” Horizontal Line ” to mark out the the important Resistance / Support levels….

Well…that is for a Ranging Market though……BUT how about a ” Trending ” market.. ?

Hmmm….You still can use a Horizontal Line for a Trending market somehow…..

HOWEVER…..by doing that….

….. You would most likely be getting many FALSE signals from the market as the resistance points would be shifting higher & higher…( for an up-trend )…

…as well as seeing Support points ….shifting lower & lower…( for a down-trend )..

So by using a Horizontal Line for a Trending market….it is NOT beneficial at all to help with Your market analysis..

On the other hand…..if You know how to use a Trend-Line ( and NOT a Horizontal Line ) for a Trending Market..

It could help You Pin-Point ” High Probability Turning Point “ to get into the Trend again…..in order to achieve a Low Risk & HIGH Rewards trade.

Which also means You can ” Project A Future Turning Point ” way in advance when You see the Price coming close to that Trend-Line ( once ) again….

( which I would be showing You on this technique below later )

In any trading game, we are ONLY interested with ” Predicting Future Market Movements “…

Because only by accurately doing so……we can then nail those valuable Pips & make Profits out of our trades……( again & again ! )

Agree on this too ?

BUT….

If You’re still unsure on - How to fully  make good use of such trend-line strategy yet ….

…OR simply NOT confident about it at all ( though You have been reading up about it )…

Then after reading this entire strategy today……You will truly benefit tremendously from it.

This is an exact forex strategy that I use to nail 80 Pips Profits on the USDCAD ….( while ONLY risking half the risk at 40 pips )

Ask any trader is this a good risk/reward ratio….

I am sure they would ” agree ” too….* smile *

Alright…let’s get started now ya.

—————————————————————————————————————

A Forex Strategy Combining ( Down ) TRend-Line …..& ” Bullish Rejection Zone ”

( Indeed a Very Profitable strategy with minimum risk….
BUT HIGH Rewards !  …And You can use on Any Pairs too !)
————————————————————————————————————–

The best way to understand & master a particular trading strategy is to learn it through Step-By-Step explanations……..right ?

Not really though !

I personally think that it is more beneficial to learn it in such a way that ..” You’re also SEEING…….what I am seeing in the market “…

…And more importantly - ” Before the actual Set-up is complete formed ! “

This is essential so that once the ” Proven Set-Up ” is completed in the market…You’re all ready to go in then..

If I just show You the ” Completed ” Set-Up…..instead of the ” before forming ” situation..

Then when You try to use this strategy in the forex market Yourself..

It could pose a challenge to You then…..as You’re NOT sure what to ” expect ” …

And so….. Your inconsistent confident level would be a major hindrance while You’re trying to mater this strategy ….

(…and would definitely prevent You from reaping the full benefits from this strategy.)

So just like all the previous forex strategies I shared with You guys..

This time round I am going to show You in such a manner :

=> From the ” before forming ” to …” ENtry “….to ” Taking-Profit “ & Winning the Trade at last !

Cool ?

Here we go….

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

This is the ” Exact Situation ” I saw on the USDCAD ( 4 hourly ) for a start :

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

Upon opening up the USDCAD ( 4 hourly ) chart, I saw the Price approaching the ” Top Limit ” of the Down Trend-Line once again…

When this happens…

I know there is a potentially good ” SHORTING Opportunity ” coming soon for this pair..

Like This :

Forex Trendline Strategy

So upon seeing this ” Price Approaching Trend-Line ” situation..

What should You do next in order to…….. prepare Yourself to look for some good ” hints ” from the market to confirm Your ” SHORTING ” bias then ?

Simple actually…

Just drop down to the ” Next Smaller ” time frame - Which is the 1 hourly for this case..

And then look for a ” Bullish Price Rejection Zone / Set-up “…

There are many such ” Rejection Zone / Set-Up ” You can take advantage of to confirm Your bias to Short / Sell actually..

But for the purpose of this strategy, I will just reveal the exact ” Rejection Zone ” that I use to confirm my bias.

I could not share ALL the ” rejection zone / set-ups ” merely with this short article today..

Which I think You can understand on that too …

In the days to come…..

…. I will share them one by one ( and explained them in the form of ” simple to understand strategy ” for You guys )  as I come across in my own trading …

( This is definitely one major benefit of being my valuable subscriber….! * smile * )

Alright….let’s continue with this strategy for now..

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

So What Kind Of ” Rejection Zone / Set-Up ” Do I Look For….?

….Once Dropped Down To The 1 Hourly Time-Frame ?

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

Upon switching to the next smaller time frame ( which is the 1 hourly )….

…This is what I saw :

Forex Trading Strategy With Trend-Line

Remember this…

The reason why You are dropping down the 1 hourly time-frame is because You are ” looking for good hints ” to support Your SHORTING Bias…

Again………You are doing this due to the fact that the ” Price Is Approaching The ( Down ) Trend-Line ” on the 4 hourly time-frame …once again..

So without a ” Good Hint “…..

And Without  ” Considering The Risk Involved ” for this position…

Then You are NOT ready to enter the market to SHORT….

The key to be successful….AND  ” making nice consistent Profits ” from forex trading is to secure as many winning trades as possible..

That’s a logical and proven fact…

I am a stronge believer of Price Action Strategies…

And I rely the Price Actions in the market to confirm my bias and then guide me into a certain position I wish to trade..

Why the need to do that ?…….

Are You wondering on that too ?

Nothing complicated actually….but as long as one can extract as ” many hints / Confluence ” from the Price Actions in the market …

The success rate would be ( very ) high end of the day…

What matters most is ” WHAT ” should You look for  that is paramount to Your success….!!

So from this moment onwards……

…I will be explaining on ” WHAT ” am I looking ( or waiting ) for before I finally decide to commit into this postion to SHORT the USDCAD…

Let me show You the illustration again as I explain on some important details here to help You understand :

Forex Trading Strategy Using Trend-Line

As You can see from the above illustration…

There is ” still some distance away the price is from the ( blue ) Trend-Line top limit “…

Moreover………there are also some ” Pin-Bars ” on that series of candlesticks reflecting
the price actions in the market .

What these current Pinbars and Price Actions mean is that  - There is a ” high likelihood ” that the price will CLIMB further..

Hence, I am reluctant to SHORT at the current Price level…..

…But choose to WAIT instead for ” Better Price & Desirable Price Actions ” in the market..

…..So did my ” Patience ” pays off ?

Yes….indeed !

The price actually climbs all the way to the level where the previous top is..

And then FAIL and ” Get Rejected ” there…..!!

( Proven by a few Bearish Candlesticks reflecting a high-probability of REJECTION at this level )

Here’s an illustration to show You :

Forex Trend-Line Strategy

As shown in the illustrations above..

The price climbs all the way and ” stalled ” upon touching the Trend-Line nicely…

But that is not always the case though…

Sometimes the price would pierce through……and then plunge down again…

Sometimes it would not even touch the trend-line ….and the next thing is that it PLUNGED down fiercely …

So the key here is to gather as ” many such hints ” from the market as possible..

That is a much better & ” Profitable ” way to trade the forex market…* smile *

So upon seeing that ” Nice REJECTION ” zone…

And knowing that the ” Risk ( Stop Loss ) ” needed is ONLY 40 Pips..

I know this is the ” set-up ” I wanted..

NOTE : At the same time, I already knew that the POTENTIAL REWARDS ( Pips ) I can aim for with such set-up in the market.  ( which I would be showing You later below )

The Potential Rewards ( after calculation ) is about 150 Pips for this set-up…

BUT….I am just aiming for a conservative 80 Pips for this trade…..( my style ! * smile * )

Good enough as the risk involve is ONLY 40 PIps..

Hence giving me a Reward/ Risk ratio of 2 : 1….

TWICE that is !!

Before I get into the trade summary…

Let me show You ( with illustrations ) on how I calculated the Potential Rewards You can aim for ( that’s how I derive the 80 Pips Take-Profit Target ) :

Forex Trendline Strategy

This Step on ” Calculating Potential Rewards ” was already done so BEFORE I get into my SHORT ENTRY..

It is part of the trading ( or battle ) plan so that the Reward / Risk ratio could be determined way before hand…

And if it is worth it….I will ” wait ” and continue monitor this trade closely as the set-ups unfold in the market…

So as can be seen from the illustrations above…

The Potential Rewards is calculated to be 150 Pips..

And I am just aiming for 80 Pips out of these 150…

Is it consider ” realistic ” here ?

…..VERY ! * smile *

As I intend to trade this position for short-term ( intra-day ) profits..

Hence 80 Pips is already more than enough for me.

Well…perhaps some of You guys might be wondering about this question too :

” Hey Aaron….why don’t You aim for more pips in the range of 150 - 200 pips ?….

Since this is a Down-Trendline…..Why don’t ride the Trend further for more Pip ? “

My Answer for You guys :

Yes…..aiming for more profits in the range of 150 - 200 pips is definitely good….

Especially when this is a ( Down ) Trend-Line….which carries a high probability of Strong Down-Trend..

HOWEVER…..

The reason why I am just aiming for a Short Trem ( Intra-day ) profits of just 80 Pips is solely back-up by some strong ” logical facts ” here though….here it is  :

…See on the illustrations above, You can also see a really STRONG SUPPORT Line for
this USDCAD pair right ?

As long as this Support is NOT broken…..

I will ” respect ” it very much as it is literally NOT wise to presume that it would be broken
for sure…

( One of my winning rule is ” Never Presume ” anything in the market…..remember ? *smile *)

BUT once that Support is BROKEN…

Then YES….I would be aiming for BIGGER Profits in the range of 150 - 200 pips….
OR EVEN MORE !!

Now You know why I am aiming for just 80 Pips for this trade……

Being conservative and respect the support line is essential here.

Trading just 1 standard lot and nailing 80 Pips is already USD$800 profits….

What if You can do it confidently 4 -5 times a month ?

$3,200 - $4,000 just trading 1 standard lot……?

Not bad I am sure…

And if it is a ” High Probability Set-Up & Proven Strategy ” You’re using…

Then it would make the entire trading process very enjoyable too - WITHOUT You having to worry and feeling fearful …which happen to most ..

Right !

——————————————————————–

Here’s the trade details for this position :

——————————————————————–

SHORT Entry : 0.99595

Stop - Loss : 0.99995 ( 40 Pips Risk )

Take - Profit : 0.98795 ( 80 Pips Rewards )

So How Did This Trade Turns Out Eventually ?

Here’s the Answer for You :

This trade intially goes ” slightly ” in my flavor….

But shortly after that…it starts climbing up again and reaching as high as the previous TOP…

Just 10 pips more and it would hit my Stop-Loss for this trade…

( as You can see too above )

Hmmm……Sometimes a small difference of 5 - 10 pips can literally make or break a trade …

Imagine I am not giving any allowance ( extra pips ) for my Stop-Loss…

Then it would got hit and there goes another LOSING trade….
( which could be a WINNING one eventually )…

Hence, whenever I decide on a Stop-Loss , I will make sure I give it an extra 10 - 15 pips.…( especially for such TIGHT Stop-Loss placement )

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

….A while back, I have written a forex trading tip on ” Strategic Stop-Loss Placement - In Order To Avoid Getting Hit Unneccessary “ for my fellow readers. If You are still NOT confident about Stop-Loss Placement yet….. ( and have not read on that tip I wrote )…

=> You can still read the entire Stop-Loss Technique here

( ….Please do it AFTER You read through this strategy as it is NOT good to disrupt the FLOW when learning a new forex strategy ! * smile * )
——————————————————————————————————————————

Alright….back to the last stage of the trade progress now..

This SHORTING trade last for slightly more than a day before my Take - Profit target
finally hit….

And if You notice too..

The ” BEARISH ” action only starts after the 3rd Tops.

Which is also known as a ” Triple Tops ” formation in the market…

Note how ” BEARISH ( Long & Full ) ” those candlesticks are after the 3rd Top…

Price actually PLUNGED down aggressively with no break/retracement at all..

What does this shows ?

It shows that there are big ( volume of ) funds pouring into the market to SHORT this pair as well…at that price point.

Where did those BIG Funds coming from ?

Obviously from the major banks, institutions, hedge funds….and combined power of both Professional & Retail traders …..right !

…..Those BIG Players are watching such Trend-Line too !

So it definitely pays to understand & eventually master this forex strategy on Trend-Line trading..

Combining with ” Price Actions in the market ” to seek for HIGH PROBABILIY REJECTION Set-up……

…The Winning % can be really astounding most of the time !  * smile *

And now You know…..

I would consider the above strategy a very simple one in fact..

( But ( very ) Profitable at the same time ….)

The key is to know ” what to look ” for when a price hit a Trend-Line LIMIT - In order to support Your bias to Short/ Buy..

After that…weight the Reward/Risk ratio to see if it is feasible to trade it..

That’s about it.

The beauty of such strategy is that You can use it on almost ANY currency pairs available on Your trading platform..

Why ?

Because it has been proven to work on them !

NO Technical Indicators needed….

NO Complicated Trading Systems needed…

NO Need To Read Tedious Financial Reports / News..

Isn’t it ( really )Simple after all…?  LOL

If You are not confident yet……

Do not give up..

Just learn bit by bit progressively…

Soon You can also get the ” full PICTURE ” and finally ” GET IT ” too..

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

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

( 80 PIps from this trade = $2,435.04 Profits )
—————————————————————————————————————————–

A Profits amount of $2,435 + might not be “  alot ” to some traders…( whom are trading a much bigger lots size than me )

BUT………when these small profits in the range of $2,435+ could be achieved consistently ( again and again )…..3….4…..5….or even 10 times in a month…

That would already amount to more than $10,000 - $20,000 profits from forex trading…

That also explains why I always advise those traders starting out …… to start small and build up their account size progressively by winning ” Realistically Small Profits ” but consistently…….

( Training Yourself to aim for 50 - 100 pips is a good target for short-term trading as it is within the daily average range for most currency pairs  )

This would enhance Your trading skills and confidence in no time….. as You guys trade more and more in the LIVE market..

The Big ” V -Day ” ( Valentine ) is round the corner as I am done with this winning trade on the USDCAD..

Grabbing a nice Profits of $2,435+ from this trade………

And the BIG ‘ V ” day near…

Definitely this amount would come handy now…..right !

Especially when my wife has already hinted me about that particular ” CHANNEL ” handbag she has been eyeing all these while !!!

Good time to pamper our love ones on this special occasion…

Am sure You would agree on that too ….* smile *

Making Nice Profits and income from the forex market feels good…

But it would be even ” BETTER ” if we can use the money to make our love ones HAPPY at the same time……..agree too ?

” Smiling with a wide GRIN on my face now…. “….

Alright….so much for this profitable forex strategy on :

“…( Down ) TRend -Line Combining With A Proven Bullish REJECTION Zone “…

If need to….do make sure You read it again and fully understand it ya…

This is to ensure that You would NOT get too confused while trying on a DEMO account after that…

Happy practising and trading in the meantime..

I shall send You more forex trading strategies & tips in the days to come..

Thank You for reading this far too.  * smile *

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

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

1)  An  ” Extreme BREAKOUT ” In Price

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

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

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

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

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

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

A Price Breakout is certainly Very Profitable……

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

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

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

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

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

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

Truly cool I must say ….* smile *

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

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

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

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

Well….

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

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

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

But if You are LOSING 5 times..

…Winning another 5 times…

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

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

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

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

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

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

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

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

Alright…let’s get started now :

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

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

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

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

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

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

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

But rather…..

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

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

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

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

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

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

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

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

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

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

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

HOWEVER….

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

It could mean another story then…

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

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

———————————————————————————————

Here’s Some Illustrations To Share :

——————————————————————————————–

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

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

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

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

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

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

Triple Tops Breakout Strategy 1

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

Forming a ” New High “.

Here’s an illustration to show :

Triple Tops Breakout Strategy 2

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

Taking out the previous resistance points..

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

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

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

…..BUT !!!!

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

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

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

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

Any idea on Your side before I reveal mine ?

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

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

Carry on please..

But for those that do not want to …..

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

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

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

What You need to do is rather simple actually…

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

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

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

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

Why so ?

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

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

But before I get into that..

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

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

Triple Tops Breakout Forex Strategy

From the illustration above..

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

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

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

But on the other hand…..

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

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

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

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

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

So in order to benefit the newbies as well..

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

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

In order to achieve that…..

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

Read on below as I share with You on :

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

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

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

————————————————————————————————–

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

————————————————————————————————–

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

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

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

Triple Tops Breakout Forex Strategy

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

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

My BUY at Price :  1.34554

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

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

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

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

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

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

What needs to be done then ?

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

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

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

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

So how did this trade progress for me ?

Here’s the illustrations to share :

Triple Tops Breakout Forex Strategy

As You can also see above…

Shortly after my BUY entry at price 1.34554..

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

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

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

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

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

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

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

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

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

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

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

What would be the end results eventually ?

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

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

Hmmm……..definitely no good.

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

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

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

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

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

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

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

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

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

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

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

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

Triple Tops Forex Breakout Strategy

( 2nd Exit - at Break-Even )

Triple Tops Forex Breakout Strategy

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

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

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

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

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

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

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

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

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

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

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

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

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

Like This :

Triple Tops Breakout Forex Strategy

Upon seeing the price bounce off the previous resistance..

And also spotted a ” Bullish Candle ” closed….

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

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

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

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

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

Triple Tops Breakout Forex Strategy

For this 2nd Re-Entry…

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

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

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

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

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

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

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

Here’s the results to show :

Strong Resistance Forex Breakout Strategy

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

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

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

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

I have already pocketed the 40 Pips earlier….

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

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

Agree ?  * smile *

After trading for a few hours more..

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

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

A nice 2nd Re-entry here isn’t it ….?

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

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

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

Strong Resistance Forex Breakout Strategy

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

Strong Resistance Forex Breakout Strategy

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

Next…..

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

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

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

Read on to find out the exact details.

Once again….

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

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

These Essential Elements are namely :

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

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

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

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

Like This :

Triple Tops Breakout Forex Strategy

For this 3rd Re-Entry I am executing…

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

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

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

If You notice from the illustration above.

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

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

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

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

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

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

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

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

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

Strong Resistance Breakout Strategy

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

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

Here’s the results :

Strong Resistance Forex Breakout Strategy

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

( You can see from above too ! )

As I am executing 50% partial exit..

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

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

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

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

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

Profitable Forex Breakout Strategy

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

Profitable Forex Breakout Strategy

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

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

The ( very ) 1st Entry….

…..Then 2nd Re-Entry..

…And subsequently 3rd Re-Entry…

So altogether 3 times in total !

Most importantly….ALL are winning trades….

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

But just as the Warren Buffet said so …..

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

That’s definitely very true in any trading game.

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

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

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

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

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

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

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

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

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

What can You do then ?

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

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

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

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

As well as 80 Pips Rewards…

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

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

That’s about it.

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

Do not worry…

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

BUT there’s one important thing though…..

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

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

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

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

So if You’re one such trader….

It is perfectly fine though….

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

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

Because You would be aiming for 80 pips rewards..

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

I shall pen off now..

Thanks for reading this far..

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

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

I am pretty much clear about the undesirable factors that caused most traders to struggle with their trades …AND ultimately FAIL.

Obviously, I have personally committed these undesirable mistakes too during my newbie days…

Moreover, ever since I started this blog sharing Forex Trading Strategies ( based mainly on Price Actions )…

I have been communicating actively with many fellow readers ( whom are aspiring traders ) via emails all these years.

And believe it or not,  9 out 10 times…..

…..These emails sent by readers are mostly expressing their frustrations & other ( challenging ) problems they encountered while trying to master this forex trading game.

And by reading through the few hundred of emails so far, I have spotted a few common mistakes that pose the biggest obstacles for most traders ….. to achieve the success ( profits ) they want out of  forex trading.

Well….as I mentioned earlier on I was ONCE a struggling trader as well during my beginner days - Hence these common mistakes are NOT surprising to me anymore definitely.

BUT….for anyone whom are starting out to explore on this ” Supposedly Super Profitable  ” Forex market…

OR….for those that have ” Already Entered ” into the Frustrating stage now and possibly on the verge of giving up his/her dream of succeeding with forex trading..

Then the 4 common mistakes that I am revealing below could definitely help steer them onto a smoother path and minimizing further ( undesirable ) obstacles in near future.

Of course, it would be useless if I only point out the 4 common mistakes though…

Any problem WITHOUT a solution is as good as better off  NOT giving at all…..agree ?

Hence, I would be pointing out the 4 common ( nasty ) mistakes here in this post…

As well as providing Some Simple & Effective Solutions to overcome or even eliminate them as efficiently as possible !

That’s better right …? * smile *

Alright….let’s get started now then .

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

Succeeding Factor #1 :   Trade ONLY The ” OBVIOUS & PROFITABLE ” Set-Ups

( Never ever Presume / Force any trades )

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

Most traders whom had already fallen into the ” struggling ” category….

One of the leading reason is that they tend to OVER-ANALYZED the forex market.

As such, even when there is NO Proven or Profitable Set-Up present in the market at all…

They would rather ” presume ” that there is IN FACT one such set-up in the market now for them to trade..

And just simply jump on it and ” trade ” hoping to profit end of the day.

Well….why are they doing this then ?

Simply because they ” die - die ” must trade the market - As & When they open their forex charts !

Somehow they have the Misleading Information that as long as they see ” some set-ups ” in the market, they can make profits out of it …

If they DON”T trade it, they will be LOSING out of those Pips ( Profits ).

Indeed a very fatal mindset & attitude to have and it is NOT beneficial at all ……for anyone who is serious about surviving in the forex market in the long run.

So what if You are also committing this mistake now ?

How do You overcome it before You LOSE Your entire account ( & experiencing some detrimental effect as a result ) ?

Not hard actually…..just do these :

1)  Only trade the ” Obviously NICE ” Set-up - You know those that formed nicely on the market at the exact timing You want and at the Ideal Price Level You want as well…

Everything just seems to be RIGHT about that certain Set-Up…and it is Obviously A Profitable One.

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

One Example Would Be This :

Perhaps the market has been trending ( fiercely ) up-ward for sometime previously..

And it has now reached a price level where there is a MAJOR SELL-OFF ( resistance point ) before in the market..

At the same time, You even spotted a ” Head & Shoulders ” forming in the market - Which is still at the EARLY stage and there are a lot of potential rewards ( Pips ) for You to grab from SELLING this Set-Up.

Your confidence is naturally very high and nothing seems to hold You back at all for this SELLING set-up.

And THAT is the kind of ” Obviously NICE ” set-ups I am talking about here…* smile *

If You have been trading the market for a while now, then You can possibly relate better to the scenario I described above.

If You’re still a newbie still trying to get out of the MAZE & Tonnes Of MISLEADING forex information online…

Don’t worry as sooner or later, You will also start to experience the ” high ” of trading such OBVIOUSLY NICE Set-ups in Your Demo Account too perhaps.

When that happens, do take note of  all the ” whys ” as You can use that to constantly ” remind Yourself ” to spot for such NICE & Profitable set-ups in future.

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

Succeeding Factor #2 :   Trade With The BIGGER Time-Frames

( Ignore anything less than 30 minutes )

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

Another common ( & deadly ) mistake that most traders would eventually commit is to believe that there is a lot of money to be made in the lower time frames…..( such as the 1 mins, 5 mins or 15 mins )

This so because they thought there would be more ” trading opportunities ” for them to profit from.

Yes…..there is no doubt that smaller time-frames are ( very often ) filled with all kinds of pattern formations & other signals from those technical indicators..

However…..many signals present in the market ….DOES NOT mean they are ” Good or Reliable ” for profitable trading though.

In fact, those many trading opportunities that You found in the small time frames (  such as 1, 5 or 15 minutes ) are nothing more than randomize movements or what most traders known as ” Noise “.

They are NOT reliable to be based on at all.

But Why so ?

Just like a quote that George Soros always mentioned in this books :

“…..It doesn’t matter how often You are right or wrong – it only matters how much You make when You are right versus…… how much You LOSE when You are WRONG ! “

As long as You lose LESS than Your WINNINGS…….” Consistently “.

You will most likely end up with Profits in Your trading account end of the month..

Very simple logic here……agree ? * smile *

So by trading on a smaller time frame - You’re also looking at a much smaller Price Projections in the forex market..

Hence, the Take-Profits Or Stop-Loss value would have to be small too…..or else it would be ” Unrealistic “.

That is why whenever traders use the smaller time-frames for trading, it would be for Scalping for quick profits.

Aiming 5 -15 pips each time and get out quick - Because they know it is very risky to stay in there for long and would only put them in an disadvantage.

Having a Take-Profit target of 5 - 15 pips can be easily achieved….I agree.

But on the other hand, You CANNOT trade without a Stop-Loss too…….right ?

You need to protect Your capital should the trade go against You too much and too fast . ( which is very common in a highly volatile forex market )

So considering this, are You going to use a 5 - 15 pips for Your stop-loss as well ?

If You are….then You would be feeling the anxiety of getting such ” TIGHT ” Stop-Loss hit….again and again….UNNECESSARILY.  ( there isn’t enough room for the trade to breathe at all )

On the other hand, if You’re using anything more than 5 - 15 pips…..it is NOT giving You a reasonable Risk/Reward ratio.

If You LOSE just once…..You might have to WIN 2 times or even more to recover Your losses.

So it is definitely NOT the way to trade for long term success…..and You know it too.

To overcome this problem, don’t bother going anything lower than 1 hour time-frames ( if You’re an intra-day trader )

In fact, for myself….I would only go for at least the 4 hourly or BIGGER time frames .

Most of my trading decisions & analysis are derived from the 4 hourly and daily time-frames in fact.

Not only am I getting more reliable signals & price actions from the market with these time-frames..

….Thus increasing my winning accuracy & percentage.

And most importantly, I DO NOT have to be ” glued ” to my chart all day staring and over-analyzing the market - Only to get frustrated and experience more losing trades.

I rather go out and enjoy the day……eat some yummy food with my love ones and at most check the charts every 4 hourly. ( either with a smart phone loaded with trading platform or bringing out my handy laptop )

It’s that **simple.

So….if You’re still holding onto the mindset that You can make a lot of money from the smaller time frames because You heard somewhere ( from someone )…… or You think that there would be more trading opportunities to make You rich faster..

But only end up getting very drained from those unfruitful analysis and over-analyzing of the market..

Losing 8 out of 10 trades….

Then it’s time for You to discard that method and switch to trading the much BIGGER time-frames too such as the 4 hourly or daily.

Trust me…..the signals would be far better off than those You get from the smaller time frames.

When You get reliable signals….You can also make more reliable & accurate prediction for Your trades…..

That’s for sure.

So what would happen to Your monthly forex profits then ?

You tell me….! * smile *

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

Succeeding Factor #3 :   Try Only With The Money You Can Afford To Lose !

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

Any trading is just a game of probability after all…

And I hope You know this by now…

You can WIN……and You can LOSE too…

Moreover, it has been **Statistically Proven that at least for the first  6 - 12 months….most traders would keep on losing !

Well for those that choose to risk more money….of course they would lose more ( suffer more ) during that period..

That is why it is a common practice that before we go LIVE…..at least prove to ourselves that we can actually make ” consistent ” profits for at least 2 -3 months before doing so.

Even after 2 -3 months of ” consistent winnings ” from a DEMO account, it DOES NOT mean he/she is ready to trade in the LIVE forex market though.

This is because when REAL money is concerned, it has a direct & significant IMPACT on our emotion.

When You know You would lose A Lot Of Money ( maybe $10k )…..The MORE this emotions would affect You.

On the other hand, if You know that even if You lose….it is at most $500 and You can afford to lose that amount..

It is NOT so impacting on Your emotions. ( and I mean in a negative way )

That is why whenever some fellow readers told me they they are ready to go LIVE for their forex trades.

I will advise them to start SMALL …..as little as $300 - $500…

And then build up the account from there..

In this way, IF they are competent enough to build up this account size to maybe $1k …then subsequently to $3k…or more..

That kind of achievements would be VERY ( VERY ) Beneficial to his/her trading confidence as time goes by…

And this is exactly how we nurtured into a more ” mature & confident ” trader as we trade more and more…

We are human beings after all….and no human beings would like to LOSE in anyway.  ( be it money or in any competitions )

That is why when You trade with money that You CANNOT AFFORD to LOSE…

You would be very ” Emotionally Attached ” to all Your trades…

And that is when You start to make ” Illogical ” decision which sabotage Your trades Big time.

Maybe You’re in a profits now…..but because You’re trading with money You ” CANNOT Afford to lose ” and it is a BIG amount…

You are feeling FEARFUL….. that if You keep holding onto this winning position, maybe You would lose them all by tomorrow if the market reversed.

And so, instead of riding for 100 pips which You intend to initially….

…..You choose to EXIT EARLIER and with a measly Profits of just 35 Pips.

When this happens, You are not achieving a good Risk/Reward ratio for Your future trade because there is NO consistency anymore.

Because initially You’re aiming for 100 Pips Take-Profits and intend to use 60 Pips Stop-Loss…

But You exit earlier because of  FEAR at 35 pip instead.

So the next time You lose…You would be losing 60 Pips or more…..not getting a good risk/reward ratio anymore.

Moreover, BECAUSE You’re so ” EMOTIONALLY Attached ” to Your trades..

When You’re LOSING….You will be very ( VERY ) Reluctant to Cut-Loss too !

That is already a proven ” deadly ” mistake committed by most traders.

That also explains why traders would resort to the extreme and totally REMOVING their Stop-Loss for that losing trade…

And in the process making the losses from a 60 Pips to a 250 Pips now and going against them further and further each day.

But they are still NOT willing to CUT though……

Instead….they are ” HOPING “ that the market would turn back again so that they can exit with minimum or no loss at all.

Hmmm…….unfortunately, the only outcome is that the deficit grows bigger and bigger until they hit a MARGIN CALL from the broker.

Very common & ” brutally deadly ” mistake most traders face and this is also the main reason for their account to encounter the undesirable MARGIN CALL !

So please, only trade with money that You can afford to lose.

Start small…and slow build up from there…

Your confidence and emotion would benefit tremendously from it. * smile *

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

Succeed Factor #4 :   Get A Proper Forex Education

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

Some newbie traders would rather learn from a proper forex education and get guidance to help them kick start their trading.

On the other hand, there are also traders who choose to ” Self - Educate  & Learn Through Trial & Error “…

Well…some achieve the success they desire after some efforts….

Whereas some failed miserably and to the extreme of Losing A few accounts with more than $10k or more in it…

There is no right or wrong way on how You choose to start though…

BUT…there is definitely one important & LOGICAL considerations here You must know about.

You see….

I myself is one such trader whom can be considered :  ” Self - Educate & Learn Through Trial & Error “..

Nothing is smooth sailing right from the start while trying to learn & master any trading game..

Because not only do You need to have a few proven trading strategies to trade the market..

But You must also control Your emotions too or what traders known as the ” Right Trading Mindset “.

For myself, I have lose a few thousand dollars too  ( when I bursted 2 trading accounts ) during my beginner’ days.

Even on the urge of giving up this dream to succeed with this forex trading game and earn a full-time income out of it.

But after much perseverance & intensive learning,  I begin to see ” small BUT consistent ” gains & profits progressively month after month…

Eventually hitting a point where I can be considered ” confident & competent ” to get a certain ROI every month to treat it as a full time income .

PS:  In case You’re wondering what ROI am I getting on a monthly basis, that would be between 30% - 50% now (sometimes hitting 70%  when the market is trending strongly and nicely ). And that is already good enough for me to rake in at least $15,000 - $25,000 a month now. ( at the time of writing this post )

With a 5 Figures income finally achieved, that is also the moment when I ” finally “ decide to quit my day job as a technician and trade fx full time.

So although I am a Self-Learner…..but the amount of effort & time I have spent and put in are literally not ” overnight or few weeks thingy “.

Not an easy journey….but NOT a really tough or impossible one either I must say.

Definitely worth the effort end of the day when I can now make a full time income trading the forex market finally. ( and making a nice 5 figures income out of it too * smile * )

For You guys out there reading my post now..

If You’re still struggling with Your forex trading or have already LOSE a significant amount of money so far..

Then it really pays to at least get a proper forex education to help overcome the elements needed for You to succeed.

Try to go for one that is based mainly on the more powerful Price Actions strategies would be advisable.

That’s because like I mentioned before in the other posts on my blog ..

Price Actions are essentially the Rawest form of data that is both ” Reliable & Accurate “ to be based on for our trading decision.

No matter what technical indicators or fundamental news You’re relying on..

Once You combined with the more powerful Price Actions of the market, it could definitely give You an ” Edge “.

Most importantly, when You KNOW You’re basing Your trading decision on ” More Reliable ” date from the market itself ( Price Actions )…

You would be trading more confidently too…..and that would help eliminate the undesirable Emotions resulting from Greed & Fear.

End of the day, that would inevitably increase Your odds of winning from most of Your trades as well. * smile *

So do not hesitate anymore ya…

If  You think You would be better off  getting guidance from a proper forex education instead of  wild-guessing your trades or entering into the market using ” feelings or the You-Think attitude ….

Stop doing that now before burning even more hard earned money You have..

Get a proper fx education, Master it……and be a Confident, Competent & Profitable forex trader in no time too !

Trust me….the moment You can call yourself a ” confident trader who is competent enough to profit a certain ROI every month “….

Your decision to seek guidance from a proper fx education would make You feel ” glad ” that You have chosen to do it back then.

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 :

forex news trading strategy

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 …..

forex news trading strategy

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 :

forex news trading strategy

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 :

forex news trading strategy

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.

forex news trading strategy

Here’s How I Derive The Price Target :

forex news trading strategy

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 :

forex news trading strategy

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 )

forex news trading strategy

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 !

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

Recommended News Trading Program

- For You Guys Who Are Serious About Learning More

News Profiteer Program

news profiteer guide

This News Profiteer program is created by a professional trader name Hentry Liu.

Whom successfully Profited more than Usd$100k in just 90 days solely trading fundamental news..

Spending only 2 hours daily from home.

And now he has created an ebook which explains the exact same news trading strategy and made available to help other traders in need.

Having read through the 100+ pages ebook, I must confess that the news trading strategies revealed in there are actually ” Very Unconventional & Unique “.

I have not seen them anywhere else …….no joke.

Also, as a member, You will also get his daily LIVE ” insider ” commentaries & tips on trading
the upcoming news release.

I know there are a lot of merchants out there that simply ” disappear ” once you purchased their program.

But not for the case of Henry’s news profiteer program.

He is always around contributing his ” insider ” tips to help and guide fellow members along.

Worth checking out…… if You’re serious about learning More Effective, Proven & Time-Tested News trading strategies to ace the fx market.

Here’s the link for You to read more on the News Profiteer Program :

=> http://www.forextradingempire.com/recommends/NewsProfiteer/

Happy checking out ya.

Thanks for reading this far.



Sincerely,
-Aaron Tan ( your trading friend )

]]> http://www.forextradingempire.com/want-to-make-good-profits-trading-the-forex-news-announcement-learn-this-effective-news-trading-strategy-then/feed/ http://www.forextradingempire.com/how-to-set-stop-loss-correctly-and-increase-your-forex-trading-accuracy/ http://www.forextradingempire.com/how-to-set-stop-loss-correctly-and-increase-your-forex-trading-accuracy/#comments Wed, 05 Jan 2011 03:53:56 +0000 Aaron http://www.forextradingempire.com/?p=936 Deciding on a Correct Stop-Loss for your trades can be a very tough task for most….

Especially the newbies and those whom are struggling with their trades.

Setting too tight a Stop-Loss….your trades always get Stop-out unnecessary

….( although you’re right about the trend in the first place )
On the other hand…..setting too BIG a Stop-Loss, you could not achieve a good risk/reward ratio…

….Which result in deficit & yet another losing month for your trading account .

( capital getting lesser & lesser ….month after month )

Sometimes you even thought of  just ” Heck-Care ” about the Stop-Loss and just trade WITHOUT one…

But on the other hand, you’re feeling very fearful and could not trade with a peaceful mind…

What can be done about this problem in your forex trading then ?

Any solution in the first place ?

Of course there is !

And later,  I am going to share ” my way ” of placing a Stop-Loss Strategically for my trades….

- Which has been proven very effective in Preventing Stop-Loss getting hit unnecessary.

In the event that it does get hit, it means I am lucky and protected by the Stop-Loss.

Hence, saving the WRONG trade from draining my account and wiping my capital with the DEFICIT.

Many fellow readers have wrote in to me asking …

…..or rather seeking solution to this issue on Stop Loss setting .

So I actually spent about 3 hours by the pool side typing this article to share with my readers.

( while watching my baby and wife playing in the baby pool …* smile * )

Later I will be sharing my proven technique on How to place a Stop-Loss strategically for forex trading.

It is not a 100% winning kind of technique of course..

Nothing is guarantee in trading game ….and you and me already know that.

However, by understanding and then executing this proven technique on placing Stop-Loss.

I am confident that anyone can avoid seeing their Stop-Loss getting hit UNNECESSARY ……
again and again….

Why is this technique so effective then….Aaron  ?

The reason is very simple here.

Because it capitalised on the ” natural market behaviour ” .

When I am still learning as a newbie, I also face such problem of getting Stop-Loss hit ….again and again…” UNNECCESSARILY ” as well …

And it is by ” finally ” understanding this technique on how to place stop-loss stratetigically…

I then able to see tremendous improvement for ALL my trades…….and my account started to grow exponentially after.

Getting 35-50 pips Stop Loss hit once or twice is not a big issue …as long as good money management
is being used.

HOWEVER….

What if we are talking about 8 or even 10 trades getting hit again….and again…

That’s already over a FEW HUNDRED Pips down the drain ….right !

And only to see the trend goes your way…

In your heart, you would never fail to think about this :

“….IF ONLY I SET MY STOP LOSS 10 PIPS MORE ! “…

You would not get HIT then because the trade rebound and go at least 120 pips the direction
YOU WANT.

The above is a very common scenario (  problem  ) most failing struggling traders face in their
trading indeed…

I knew it….because I have been there once too….* not afraid to confess ! *

But that’s in the past then.

Now with this technique, I am getting very good results.

Because I know the with the ” Unique way ” I set my Stop-Loss, it is PROTECTING my money !

Alright….let me share this exact techique on :

How To Set Stop-Loss STRATEGICALLY…. With You next

Read the entire post for details.

There are many different scenarios that can happen in the forex market - That’s an undeniable fact.

So I can’t possibly show examples for ALL - That’s also understandable right .

But , I will show 3 most common ones.

These 3 scenarios are good for both a Sideway as well as a Trending market.

Hence, I am sure you guys would have no problem executing it for your trades too.

Alright..let’s go !

————————————————————————————————————-

The Main OBJECTIVE Of A Stop-Loss In Your Forex Trades

————————————————————————————————————

Just as the name implies…

It is a Stop- Loss !

…. That means if a price can BREACH a certain price level, you would want to EXIT at that point.

If  you go LONG/BUY previously..

Then the Stop Loss would ” SELL ” for you at a certain price point you pre-set…

Nothing more complicated than that.

So to truly fulfill the main purpose of a Stop- Loss….

….. and reap the maximum benefits from it..

=> You Should Only Place A Stop-Loss At A Point That The Price Should Not Breach ! “

And if it gets breached, you would want to get out because there is a high tendency that you’re
WRONG about the direction.

Simple and very very logical right ?

Alright….next , let me show you 3 different scenarios on what I mean by……
” Setting Stop Loss Correctly & Strategically ! “..

( …….And that is in a Crtical ZONE that the price should NOT be reaching ! )

Let’s get started :

” UNIQUE ” Way Of  Setting A Stop-Loss …

( 3 common scenerios for You …)

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

Scenario 1 :  Place The Stop- Loss After A Price Pull-Back/ Retracement

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

When a trend starts to develop , it would Pullback /  Retrace at some point due to profit taking.

Even if it is just a short term trend in the market, a Pullback/ Retracement would also occur.

( due to profit taking ….)

However, in order to secure high winning trades, I would normally go for the very ” FIRST ”
Pullback /  Retracement though.

As it is more reliable and there are MORE Potential for the price to go further.

Here’s an illustrations to show what I mean :

how to set stop loss correctly

Placing the Stop Loss slightly below the Price Pullback is indeed a very good strategic location.

That’s because a Price Pullback is a ” turning point “  for any trend to resume.

Even if it is NOT a strong trend, but at least we know that the price is going to move quite a distance in ” That ” direction.

SO….you and me can go in and grab some pips ( profits ) out of this set-up.

And because it is a Pullback that we are taking advantage of here….

Hence the ” Risk/ Stop-Loss value ” we need to use can be minimized too.

Best of both world indeed.

Another technique that I like to use to further confirm that it is a more reliable Pullback is to spot for congruence such as the 61.8% Fibonacci that coincide with the pullback.

If you spot a pullback that you would like to use as an entry point, do make sure that that pullback at least coincides with the 50% or 61.8% fibo level as well.

This would give you further confirmation and of course make it a more profitable set-up to go in.

Just bear in mind that a Price Pulllback is simply a ” turning point ” for the trend to resume in the previous direction.

So basically you are taking advantage of the ” low price ” to get in to BUY again.

( The conventional way of  ” Buy Low…Sell High ” applies )

So much for that….

Next, I am going to talk about a Symmetry Triangle BREAKOUT.

——————————————————————————————————

Symmetry Triangle Breakout

—————————————————————————————————-

If you have been trading currency pairs such as the GBP/USD or GBP/JPY..

Then you would also agree that they are very prone to such Symmetry Triangle Breakout too.

Because the LONDON financial market is the biggest around the world and most of the time during the first 2 hours of London Open…

The volatility is extremely high and having spotted such Symmetry Triangle Breakout set-up..

It is a strong hint that both the interests and volumes are very high.

Meaning if it BREAKOUT is to the up-side, then the buying interests and volumes are very high.

So we can go in and grab some nice pips from this volatility.

Another scenario which is very prone to such Symmetry Triangle Breakout is during a major news announcement.

Especially those which carries more weight such as the NFP or Interests Rate Announcement.

So how do You place the Stop - Loss for such Symmetry Triangle Breakout ?

Let me show You the strategy next :

How To Set Stop Loss Correctly

Just like the old saying of  :

“…There would always be extreme peaceful-ness before a catastrophic STORM ! “

This Symmetry Triangle BREAKOUT is somehow the same..

Of course with the latter, it is not a natural disaster though.

But if one is not using proper risk control, he/she might lose a lot of money.

In the above illustration, the symmetry triangle breakout is happening on the GBPUSD

A very volatile pair especially during the first 2 hours of the London Open.

That BREAKOUT candle for this example also happened on the market open as well at 7am GMT.

A Stop- Loss placed just below the level ” before ” the breakout is a good strategic place indeed.

Because with such BREAKOUT, the interests & volume are very extremely high.

So if the price can reverse and breach the level before it breakouts, then it is better for you to EXIT.

That’s the principle governing this set-up.

Now you know. * smile *

Alright, next I will be talking about the 3rd scenario which is also the last one I am sharing here.

And it is the Morning Star candlestick formation !

In the above 2 examples, I am talking about set-ups for an uptrend if you notice.

So there must be a point where the price would Turn Down & Reverse.

This is the nature of any financial market indeed.

That’s why I choose to include a candlestick formation for a uptrend reversal - The Morning STAR Candlestick Formation that is.

——————————————————————————————————

Morning Star Candlestick Formation

—————————————————————————————————–

If you have been trading the forex market  for sometime now..

Then the ” reason ” behind the formation of such candlestick might not be new to you anymore.

But for the sake of other newbies, I will just explain briefly here though.

Bear with me for a while ya.

This Morning Star candlestick formation is actually an ” Uptrend Reversal ” pattern.

It is mostly spotted after an up-trend or rather…..after the price climbed for some distance.

If you refer to the picture above, you would notice a DOJI right at the top of the move…

Which basically implies there are indecisiveness in the market.

And soon after, if there’s a Bearish Candle Closed that follows…

Then it can be considered a Morning Star formation.

When that happens, it is a good opportunity to go into the market for some SELLING of course.

The beauty is that it is very reliable and one of the easiest pattern to spot when it happens in the market !

Here’s how to place the Stop-Loss having spotted this formation :

Very direct on this formation as you can see above too.

Upon spotted the Morning Star Formation , just place the Stop Loss above that DOJI.

It is another very strategic location where the price is NOT likely to breach at all.

Why so ?

Because previously at that level, the buyers are not showing any BUYING interests anymore..

Instead, shortly after that….the sellers came into the market and start dominating.

In any trading game, as long as you are following the MAJORITY….

You can ride on the wave and grab some pips ( profits ) and make your account fatter too.

Important points to note here is that :

1)  A morning star formation spotted on a bigger time frames ( such as 4hour or daily ) would be more reliable than the smaller time frames ( such as 5 / 15 minutes )

2)  As this is a ” Up-trend Reversal ” candlestick formation, it means you would be trading the counter-trend too most of the time.

So to increase your odds of winning with this Morning Star set-up, try to combined other congruence such as a Double Tops/ Bottoms  would definitely be good to increase winning accuracy.

3)  Also, if the BEARISH CANDLE BREAKOUT is too huge - Meaning the price has already moved more than 120 pips perhaps, then you might want to wait for the price to retrace/pullback abit first before deciding to commit.

This is to prevent You from using too HUGE a Stop-Loss for that trade.

Achieving a Good Risk/Reward ratio is still paramount here no matter which set-ups you are going for.

Alright, with this, I shall conclude this article then.

Although this technique of ” Setting Stop-Loss “  is not 100% accurate..

But I can confidently tell you that if You can follow the way I place a Stop-Loss as explained above…

Your trading accuracy could also be increased tremendously - Especially when you do not have to worry about getting the stop-loss hit….again and again.

Frustrated to experience that ….I know.

I used to experience that too during my beginner’s days….but once I understand the ” objective ” of placing a stop loss..

Things took a drastic change - For the BETTER of course ! * smile *

Most of the time, these set-ups would not be so ” perfect looking ” and it makes it very hard for you guys to identify is it the set-up / formation you thought it is..

When that happens ?

How…?

Well….just step aside and skip that pair then.

They are more than 15 pairs in your trading platform for you to grab profits from..

So why bother taking risk when it is affecting your judgement and trading confidence ……right ?

Thanks for reading this far.

I hope by now you have understand how to truly place a Stop Loss ” strategically ” for all your trades in the days to come…..

…..and end those days of fearful,frustration ( due to seeing your stop loss hit…again and again ) once and for all !

I shall pen off for now.

Feel free to read other forex trading strategies in my blog ya.

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 *

Strong Trending Strategy

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 *