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 2)  Why SO IMPORTANT To Keep A Trading Journal ?

 

 3)  Why Are You Always Late & Wrong With Trend ?

      

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Forex Trending Strategy – Riding The Major Trend Strategy On AudUsd

When a currency pair is trending strongly…

You and I  know that there are massive pips to be grabbed from the market..

( Of course not only both of us….but the other hundred thousands of traders worldwide knew this too…..! )

That explains why the old saying still hold true :

” Trend is Your friend ……follow the Trend “…

However….knowing that the market is trending is not good enough to secure winning trades..

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

Here’s why :

What make You think that this trending market would still continue from the ” point You enter & to Your Profit Target “…?

How do You know ” when to exit ” before the market reverse on You ….( and losing all the profits You previously had ? )

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

To most struggling traders ( or failing traders )…..

These 2 problems are ” major obstacles ” for them while riding the major trend..

Are You also facing such problem ?

That’s why most traders always have certain ” fear ” while trying to ride the major trend ?

Fear that he/she might see a winning trade turning into a losing one ?

Fear that he/she might not know when to exit to secure their previous pips & profits ?

If You are also feeling this way and experiencing such problem…

Then the ” Major Trend Riding ” strategy I would be sharing below would definitely help You see things that You don’t before…* smile *

This is a trade which I took riding the up-trend momentum for the Aud/Usd…

…and profited a nice 289 pips.

It is not that hard to capture such massive pips & major trend ride once You know how I did it…

—————————————————————————————————

Let’s dive in to the main strategy now :

For this trade, I am taking advantage of 2 things happening in the market namely :

1)  RBA ” positive ” Interest Rates Decision

– Consensus : 3.00%

– Actual :  3.25%

( Better than expected……most big players would take this seriously too )

2) The Aud has been very strong for the past weeks…..

( As the USD is somehow TOASTED…and losing it’s strength significantly )

Which resulted in a very ” STRONG UP-TREND ” for this pair AudUsd…

Forex Trend Strategy For AudUsd

Forex Trend Strategy For AudUsd

Now…..consider this :

1 ) With the Aud Interests Rate being so ” Positive “

2)  The prevailing ” Up-trend is so STRONG ” for this pair Aud/Usd

3) The Usd is somehow ‘ Toasted ” now and very weak..

What is the likelihood that this strong up-trend would continue…?

The answer is very obvious isn’t it…? * smile *

However….I Would Not just jump straight into the market and BUY instantly…

I would wait for a set-up which I can enter  with ” minimum risk “…..based on the Price Actions & Patterns Formation

Let me share my entire ” decision making process ” next :

————————————————————————————————————

– The Aud/Usd resume up-trend almost instantly following the Interest Rates decision at 0330 GMT…

– It then take a break and ” retrace ”  after the advancement…

Forex Trend Strategy For AudUsd

Forex Trend Strategy For AudUsd

And the support rest ” nicely on the previous resistance “…

Resistance Turn Support theory….( Yellow Line Below )

Indeed a very nice set-up for me to enter my ‘ BUY ” trade..

I then enter BUY orders with 2 Lots at Price 0.89305

Note : For all my trend riding strategy, I would enter with 2 separate lots so that I can exit partial at some point…..while allowing the other lot to ride maximum.

Stop loss I chose to use for this trade  is 90 pips

( giving some allowance below the previous swing low )

Forex Trend Strategy For AudUsd

Forex Trend Strategy For AudUsd

This trade then progress nicely and the price climb further up until it stalled at a point …

This is the first point of ” retracement ” I would exit my 1st lot..

Keep the profits in my pocket first……

And at the same time ” shifting the stop loss for the 2nd lot  to Breakeven “…

So that I can ride freely for maximum pips without having to worry at all….* smile *

The thought of knowing that You would not lose even if the trade reverse on You is simply ” amazing ” ….isn’t it ? LOL..

Forex Trend Strategy

Forex Trend Strategy

I exited the 1st lot at the first ” retracement ” for 62 pips profits.

Which netted me Usd $624.13

Here’s the earnings screen-shot with Entry order, SL & TP :

( click to enlarge)

Audusd Forex Trend Strategy Earnings

Audusd Forex Trend Strategy Earnings

Having exited the 1st lot ….

AND….with the 2nd lot still riding the up-trend… ( with stop loss shifted to breakeven now )

How do I decide ” when ” to exit the 2nd lot in order not to give back all the pips ( profits ) I have gained ?

I personally like to depends on the Price Actions & The Patterns Formation in the market..

This is much more accurate and reliable than any textbook technical indicators 99.9% of the time….

Due to a simple fact……most indicators are lagging ones..

That explains why most traders who rely ” heavily ” on such textbook technical indicators are struggling to break-even each month…( arghhhh! )

Although I have already shifted the ” stop loss to break-even point ” for this 2nd lot…

But I would not just hope that the trade would go all the way up….without turning back right ?

That would be rather stupid I think…..(pardon me for this sentence….LOL )

So there must be some proven rules that I use in order to get out at the ” right time ” …to AVOID seeing the trade turning against me losing all my pips..

What are the ” techniques ” I use to detect such market reversal then ?

There are a few such proven techniques I have been using for years now…..depending on what the market gives me..

( Do go through more of my forex case studies…and You will get to read more about them )

For this trade…I choose to get out upon viewing the ” Evening Star “….!

Which is a reversal set-up for an up-trend..

This is not common to most traders am sure..

Although it is not a 100% accurate set-up for reversal…

But at least I have a ” logical reason ” to get out at that point….

Forex Trend Strategy For AudUsd

Forex Trend Strategy For AudUsd

I exited the 2nd lot upon seeing that ” Evening Star ” formation.

Which profited a total of about 227 Pips .

This netted me about Usd $2298.51

Here’s the earnings screen shot of the entry order, SL & TP :

( click to enlarge )

Audusd trend strategy earnings

Audusd trend strategy earnings

At this point….I have already shown what is needed for You to profit from such ” trending ” strategy..

It’s time for me to conclude now …

The total pips gained from these 2 lots are  ( 62 + 227 = 289 pips )

And with my initial risk ( stop loss ) at ….90 + 90 = 180 pips…

Which makes the risk/reward ratio slightly better than 1.6x

Agree ?

Accumulated profits for this trade would be about Usd $624.13 + Usd $2298.51 = Usd $2922.64

Is it good ?

I really think so considering this is just trading one pair…

I do not need to sit ” stay glue ” to the computer screen either…..basically just checked the set-up once every 4 hours or so..

( I am using the 4 hourly time frame for this strategy )

Scanning for such ” Trending ” set-up is my favorite strategy of all as it gives me lots of profits potential

….and I can enter with minimum risk each time.

Every week….there bound to have at least 1 or 2 currency pairs which are ” trending ” …

So it is just a matter of spotting them….right ? * smile *

( After all….there are at least 25 different pairs for You to choose from ….so no worries! )

One thing to note is that I only spot for ” trending ” set – up in the 1 hourly….4 hourly and daily time frames

Anything smaller would not give a reliable price & trend projections due to my testing…

As they give too much noise from the market….

And all the steps I shared in this post is one entire strategy anyone can use to ride the ” major trend ” with good winning probability…

As long as You also consider the elements like I do….before entering into a position…* smile *

Ok….so much for this trending strategy on the Aud/Usd….

Do feel free to read other forex case studies as You will uncover other proven & powerful strategies that I am using for my own trades day in day out too …..

Happy reading & Thanks for reading this far !

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