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 1)  Read This First

 

 2)  Why SO IMPORTANT To Keep A Trading Journal ?

 

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

      

 4)  When You STRUGGLE when Account Is Small ?

     

 5)  Is Using Stop-Loss Really Protecting Your Capital ?

      ( HARD TRUTH ! )

 

 6)  Be " Slightly More Patience Instead " & Win More !

      ( Simple Yet Effective ! )

 

Posts Tagged ‘Forex Price Action Strategies’

What Exactly Is ” Science Of (Pure) Forex Price Action Analysis ” All About ? ( Part 2 )

What Is Exactly ” Science Of ( Pure ) Forex Price Action Analysis ” All About ? ( Part 2 )

Ok , in this article ….

I shall share another ” Pure Forex Price Action Analysis ” for You to understand on

and it is slightly different from the Part 1 shared previously

( as it involved a ” Special Price Action behaviour ” that No other traders or gurus know about )

Let’s say one day after my gym workout

I scan though the many different charts to see if any ” FX Pair’s PRICE ACTION “

is CALLING out to me  or not

( to go in and GRAB some valuable Pips from it…of course )

and I actually saw such ” Price Action ” from a certain FX pair:


One thing I am VERY SURE here

that is :

1) For those ” Technical Indicators ” kind of traders

as well as

2) those who have NOT ” Master The SKILL ” in DECIPHERING DIRECTLY

from such RAW PRICE ACTION

those RAW PRICE ACTION shown on the chart above

they either mean :

=> ” No Trading Signal at all

OR…..=>  it is merely a ” Sideway Market

OR…..=>  simply ” No Meaning at all ” for majority out there

Of course for A ” Super ( Well ) Trained PRICE ACTION MASTER “ like me  ( *ahem*……)

the RAW FOREX PRICE ACTION in there are basically calling out to me saying this :

” Aaron, Please come in and GRAB Some Valuable Pip and $$$$$$ NOW ! “

Don’t understand WHY right ?

It’s ok

Read on and You will get to undestand what I SEE too !

Now look at the SAME Chart again below

( with Horizontal Yellow Lines Plotted this time round )


LEFT WAVE DOWN ” Vs ” RIGHT WAVE UP

Now……Carefully ” Compare ” them

saw anything ” Special ”  too ?

Notice anything SPECIAL about the  ” Behaviour of the PRICE

=> for the RIGHT WAVE UP ?

How ?

Can SEE anthing ” Special ” at all ?

It is Perfectly Fine if You can’t ( now )

as You have NOT Master the ART of ( RAW ) PRICE ACTION reading yet ….

that’s why You found Your way to my Forex Price Action Strategies’ site today

because You are all ready ro learn more about that……right !

Ok….let me share with You WHAT I SEE in there

so You can understand and learn too

( This sentence below simply SUMS UP what I SAW ) :

=> The RIGHT WAVE UP was EXACTLY ” MIRRORING ” the LEFT WAVE DOWN !

With just one SIMPLE GLANCE on those ” Yellow Horizontal Lines “ plotted

it is very clear that the RIGHT Is ” MIRRORING ” the LEFT

agree too …right ?

At this point, I know what most of You would be WONDERING ON

( obviously, because You do NOT have the same 8 Years+ of Trading WISDOM

that I accumulated till date ! )

that is :

—————————————————————————-

1st Question MOST of You guys Would Be Wondering On :

—————————————————————————-

Why is the RIGHT PRICE ACTION ” MIRRORING ” the LEFT PRICE ACTION

( Even MORE of YOU GUYS would be Wondering on this ” 2nd Question “ ! )

——————————————————————————————–

2nd Question That EVEN MORE of You guys would be Wondering on :

——————————————————————————————-

2) How to Know whether to BUY OR SELL  in order to take advantage of that ?

( My Answers for You ) :

You see

sometimes after a certain BIG INSTITUTION or BIG BANK or BIG FUND

has already made their ” MOVE ” on a certain FX Pair

and the pair has HIT the ” 1st  Price TARGET ” they wanted

they would then ” Stay Put ” there

WHY The NEED To ” STAY PUT THERE ” ?? ( You might ask….)

That’s because they are NOT SURE if…

they ” Should Continue PUSHING In THE SAME DIRECTION…or not ” !!

Because there are a few ” Major Fundamental News ” concerning the Fx pair….

they are involved with => that are yet to be ” Released “

Hence without KNOWING the ” Actual Results ” of those NEWS

they would NOT know ” Is It Worth Pushing The SAME TREND FURTHER ” !

That’s where they would just trade in a ” Sideway ” manner

and normally they would rely on a ” Computer “

to help BUY AND SELL ” Automatically ” for them

( according to the Pre-Assigned Price Points being

programmed into those super computers !)

…..all the time => keeping the Overall Pricing in a ” Certain FIXED RANGE ” !

Yes….which is how a Typical ” Sideway ” market is formed !

And for this case that I saw….

( the RIGHT PRICE ACTION is ” EXACTLY MIRRORING ” the LEFT PRICE ACTION )

….the ” VAST Experience of Mine ” accumulated for the past 8 Years+ relying on NOTHING else

but ( Only ) RAW PRICE ACTION to trade

simply tells me that this pair that I am EYEING on now…

=> it is ON such a ” Super Computers Helping To Buy or Sell MODE ” …NOW !!

Which literally explains why the ” RIGHT is MIRRORING the LEFT ” !!

Hence , my ” Vast Experience ” has TAUGHT me that

I can ” SELL ”  to capture this Potential DOWN-MOVE :

When can You look for such ” ( Special ) Price Action Behaviour “

( created by the ” Super Computers Helping To Buy or Sell ” Mode )  ?

From my experience, such ” Special Mirroring ” kind of Price Action

would most likely occur BEFORE any ” Major News ” release

When I said ” Major News ”

I mean those ” Super IMPACTFUL ” ones

such as Jobless Claim Results ?

such as CPI ?

such as Interests Rate ?

such as  Monetary Policy ?

You get the idea by now …am sure

Ok one last reminder before I pen off today

that is :

IF You are currently exploring on How To Trade Forex Using Price Action Analysis

and the kind of Price Action Strategies that You came across

were actually ” NOT AS SIMPLE AS ” the ones I shared with You here ( and in Part 1 )

then NO POINT learning from that website at all

Because ” TRUE PRICE ACTION WAY TO TRADE ”

should be => ” Simple + Only Relying On LOGICAL REASONS from the market itself ”

We want our Forex Price Action Strategy to be Simple……

=> because this entire FOREX trading game is already ” Very Complicated & Stressful ”

what for we want to rely on ” Strategies ” that would ADD MORE COMPLICATIONS

& STRESS for our trading process

right ?

That would ONLY cloud our ” sound Judgement “

as well as IMPAIR our ” Usual Logic Capability “

and DETERIORIATE our Trading Performance in the long run !!

ALSO

if they claimed theirs are PRICE ACTION strategies

make sure You see if the strategies are also based on

” Logical Reasons ” from the Market ITSELF or not

else…..NO point trusting those strategies

as 99.9% of the time, they are FAKE ones

with their main intention is to LURE ” Naive Traders ”

into buying either their Services or Products !

Do be really REALLY CAREFUL of such ” Unethical tricks

used by alot of FAKE GURUS out there !

If in doubt, You can email me for advice !

Always remember this ( Little – Known ) FACT about the Forex Market :

It is a ZERO-SUM game

majority 95% only LOSE MISERABLY eventually

because they were trading like the ( Losing ) MAJORITY …..right the very start

they were also relying on the ” OBVIOUS ” things in the market to derive their bias

and with any financial market

OBVIOUS => Already TOO LATE !

Now that You have read through the 2 Forex Price Action Analysis I shared

You can certainly agree that I am NOT using those ” Obvious HINTS ” at all

right ?

But YET……they are so ” Effective ” – Proven !

Alright , I shall not go on anymore

else it would be SUPER-LONG

and I know most don’t like to read VERY LONG article !

Thank You for reading this far

Feel free to email me if You need to ask anything Forex Trading related

To Your ( Real ) Forex Success + Financial Freedom,

Aaron Tan ( your trading friend )

My Divergence Trading Strategies For Profiting From GBP/CAD & USD/CAD

Divergence ” formings in the market is indeed …..one Good ” REVERSAL Phenomenon ” that ( We ) traders can Profit from definitely..

And one can even make ” Nice & Massive Amount of Pips ( Profits ) out of this Phenomemon …again & again

……but that’s provided You know how to ” ATTACK it  ” …..Correctly & Confidently !

In any trading game, it’s either :

1)  You’re on the RIGHT – SIDE of the market…

OR

2) You’re on the WRONG-SIDE

…and the CRUEL truth is that …….MOST of the time….

…MAJORITY of the traders would be on the WRONG-SIDE of the market…

Only to LOSE MORE in the long run…..( and seeing a much SMALLER account size ….as the days gone by )

On the other hand…

Most traders would get to BE on the RIGHT -SIDE of the market & …….” Win OCCASSIONALLY “…

but the sad truth is that…..

“…they just DO NOT know WHY they ‘re on the RIGHT-SIDE of the market then ! ”

Combined with the fact that they’re trading WITHOUT a ” Proper Trading Approach “……

…with the above…..I mean :

” A PROPER Approach that would enables them to trade ONLY the ” Low Risk HIGH-REWARDS ” set-ups….repeatedly….and sustain their SUCCESS for a long time to come !! ”

So WITHOUT having a ” Proper Trading Approach “……

….it only makes PERFECT sense that most traders would end up LOSING ……( in the long run ! )

…because each time they take-on a position….it would be HIGH-RISK…….Low Rewards….instead !!

Agree too ?

Unfortunately…..

…this ” Cruel Truth ” also applies to the ” Not-In-The-Know ” Traders…….

WHILE…..trying to trade the ” Divergence ” forming in the market too..

Because most of the time…..

…they are ONLY getting ” Messy & Unreliable Signals ” from the certain kind of  TECHNICAL INDICATOR/s that they used to capture ( Potential ) Divergence  in the market.

…whether it is the more preferred MACD, RSI, Stochastic, CCI….etc

…as long as ONE does NOT know ” WHEN ” to TRUST a certain indicator they’re relying on for capturing DIVERGENCE…

…then he / she would definitely have to suffer the plight of being on the WRONG-SIDE of the market….

=> …getting their stop-loss …..HIT…..again & again & again….( without they themselves knowing why even ! )

Because end of the day…….a Divergence in the market is also TECHNICALLY a ” COUNTER-TREND MOVE ” as well..

So it only makes ( perfect ) sense that once You’re going AGAINST a Strong Trend …….at the Wrong stage

…You would only suffer MORE LOSSES then…

That’s only being logical….right ?

As a matter of fact…… trading ” Divergence ” happening in the forex market is one of my Favorite too.

Simply because there are indeed a lot of Good Pips ( Money ) to be made in there.

After all…we’re talking about a ” ( Possibly STRONG ) Market REVERSAL ” that is going to EXPLODE soon…….that’s why ! * smile *

And since I can trade such ” Divergence “….and Profit NICELY……from them….again & again..

….while MOST of the traders out there are only getting the WRONG DIVERGENCE…..and suffering Losses….after losses…

Then there must be ” something ” that I know….and Execute…..

…that these Losing traders either ” Do NOT know of “….or ” Unable to execute “……

….agree on the above ?

I went through my past months’ LIVE trading results just now..

…and grabbed 2 such Live Trades of mine based on ” Divergence Trading “….I have executed previously.

It is from 2 different currency pairs namely :

1) Gbp/Cad

2) Usd/Cad

” But Aaron….are You going to share the SAME Divergence Strategy TWICE in a row ? “

“…..since there are 2 currency pairs here ?? “

( My Answer ) :

Of course NOT !

If that’s the case, I would just write on ONE ….instead….and that’s enough.

But the reason why I decide to write about ( 1 + 1 )…. today…

It’s that :

“….There are actually  DIFFERENT kinds of Divergence Trading that You guys should know of …! ”

“….especially HOW I Put Myself in a ( very Advantageous ) Position each time they occur……”

….when others ” NOT-IN-THE-KNOW ” traders would bound to get ROASTED after ! ”

Just like the other strategies I shared in my Forex Trading Empire blog

My Entire Trading Approach would consists of these few CRITICAL Elements namely :

1)   How do I capture a ” Reliable & Profitable ” Divergence …. ( EARLY in the FORMING stage )

2)  How do I achieve the OPTIMAL ” Entry + Stop-Loss for that position then

AND of course

3)  When do I want to EXIT with the Profits…..( to avoid seeing ” or minimize experiencing ” the market TURNING AGAINST me…..)

( IMPORTANT : Before You proceed,  If You’re always gettting LOUSY & MOSTLY LOSING results from trading Divergences happening in the market…….then please clear Your mind from this point onwards about whatever DIVERGENCE Trading Strategies You are using previously. Because what I am sharing later would be considered rather ” Unconventional ” to most ( struggling ) traders ! But it would enlighten You big-time about the CORRECT WAY to ACE Divergence……Proven ! )

Having emphasize on the above…

Fasten Your seat-belt now…..and let’s start our engine & ROLL !

—————————————————————————————————–

My ( Winning ) Divergence Trading Strategy For GBP/CAD

—————————————————————————————————–

This is the very first SIGN ….of a ” Bullish ( Potential ) Divergence Set-up ” that I captured from the GBPCAD (  on 9TH AUG ) :

Forex Divergence Trading Strategies

The ” Terrible Fact ” is with most IGNORANT Traders is that ….

…..upon witnessing such ” Scenario ” as shown on their technical indicator/s…

…they would simply jump into the market and BUY ( Immediately ! )…

..WITHOUT even bother CONSIDERING about these ( Extreme ) CRITICAL Aspects namely :

1)  Is this Pair ” REALLY ” going to REVERSE at all …….from the current level ?

( or rather….it is going to be  a TRUE Bullish Divergence at all ? )

IF so….

2)  Where to GET into the trend so as to achieve a ” LOW Risk ….HIGH REWARDS ” advantage for this position.

AND

3)  Which level to plan Your ” EXIT ” ?

…is it ( Realistically ) at all ?

……..so as to nail those Pips successfully….( most of the time ! )

( ……instead of being HIT hard…..losing again & again….. when the You’re WRONG about this Reversal Point ! )

As I have said earlier above……..You are dealing with a ” Counter-Trend Move ” after all…!!

Failure ( or simply DON’T BOTHER )…… to consider ANY of these 3 ( Extremely ) Aspects ….

….while trying to trade a Divergence in the market…

….one would ONLY get ” BURNT & ROASTED “….eventually.

WHILE…..” Traders – In – The – KNOW “…..( such as Myself )…

=> …Would be Profiting HANDSOMELY…..from the divergence instead!

=>….Even when I am WRONG about it the FIRST TIME !!

Read on below to learn the Exact Same Strategy that I deploy to help me achieve that…

(…which most traders are simply doing everything WRONG on )

In order to help You understand in a ” step-by-step ” manner.

I shall explain on each of the 3 ( Extremely ) Critical Elements…..one by one for You !

——————————————————————————————————–

1st ( Extremely) CRITICAL Aspect :

1)  Is this Pair ” REALLY ” going to REVERSE at all …….from the current level ?

——————————————————————————————————–

Let me pull up the previous illustration to help You recap on :

Forex Divergence Trading Strategies

Saw that ” Light Green HORIZONTAL Line ” in the illustration above ?

Take note of that for now ..

…and proceed to look at the illustration below next :

Forex Divergence Trading Strategies With Price Actions

As You can also see on the chart above…

This same ” Bullish ( POTENTIAL ) Divergence Point “……( as captured by me on the 4 Hourly Time-Frame )

…also COINCIDES with the ( Previous ) Support Level in the DAILY Time-Frame !!

When that happens…..

….it also means that ” My Suspicion ” for a RELIABLE ( Bullish ) DIVERGENCE to occur at this same level…….

….has One PROVEN Ground to prove it so……. & makes it very HIGH-Possibility to achieve too !

Because You and me definite agree on one fact here….that is :

“… a typical ” Support / Resistance ” from the DAILY time-frame definitely holds a SIGNIFICANT value….( in the eyes of MOST traders…..especially the BIG BOYS too !! )

So the next CRITICAL Step for me next….

=> ….is to WAIT for the Dominating Force in the market to show me that :

=> ….it is ” indeed WILLING to HOLD that Same SUPPORT ( Again )……as well !”…

And indeed……having spotted a ” Certain ( Bullish ) CandleStick Pattern ” at that level then…

It literally gives the confident to go ahead with my BULLISH bias …..like this :

Now …..saw that ” Big BULL Candlestick ” parking next to the ” Big BEARISH Candlestick ” above ?

…that is also known as a ” Full-Bodied ENGULFING ” pattern.

It simply means that there is indeed STRONG BUYING Sentiment at that LEVEL

….and the Buyers even PUSHED the ” Closing Price ” to be ABOVE that of the Bearish Candlestick next to it…

Also…

Did You notice that ” Price SPIKE ” that accompanies that BIG BULLISH CANDLE in the above chart ?

That is also a ” Hidden – Sign ” that caused most traders to be confused …….

….and lead them to make ERRATIC buying decision at that moment…

Allow me to explain more on that to help You understand on this ” Hidden – Sign ”  next !

You see…

Whenever the market is getting ready for the “ NEXT BIG EXPLOSIVE MOVE “….

Most of the time……..it is also very PRONE to have INTENSE TENSION being built-up in that segment of the market..

….and most CRUCIALLY…..=> That would lead to a FALSE ( BULLISH ) BREAKOUT too…

…which is what we truly want to AVOID being CAUGHT-UP then !!

Moreover………this is ALSO the type of  ” Market TRAPs ” that most Traders-NOT-IN-THE-KNOW would fall PREY for when either :

1)  The Big Boys in the market MANIPULATE Short-Term FALSE Price Movement to TRICK the inexperience traders to JUMP in ” naively “….

OR

2)  Vicious Brokers FLUSHING all the Stop-Loss / Buy orders lining just ABOVE that ” Typical ( Bullish ) Price Actions’ Set-up ” that I shown You above…

….especially now we’re looking at a MAJOR Market REVERSAL => A Bullish Divergence ….that is !

So did any ” False Breakout ” really occurs in the market at that ” Particular Segment / Border ” before that REAL BIG MOVE ?

Here’s the answer for You on that :

( Note : …It is also at this very moment that I start monitoring the ACTUAL Price Actions in the market for Optimum ENTRY + STOP-LOSS placement. And all of this “ little DETECTION WORK “…..would be done on the Next smaller time-frame = > Which is the 1 Hourly !…..Continue reading below to learn HOW I do it. )

Looking at those ” Price SPIKES …& FALSE BREAKOUTs ” occuring ….( around the Border )

Do You now believe this fact now ?

…that there would be ” INTENSE TENSION ” being built-up around that segment / border …..in such current situation for this GBPCAD pair..

Why is this so ?

I bet most of You guys would NOT know about this ” HIDDEN ” fact……..!

You see..

MOST traders would STILL think that the ( Previous ) DOWN-Trend ……..would CARRY-ON …

…So when the Price is NEAR to the Upper-Limit of the Down-Trend-Line…

…these group of ” NOT – IN – THE- KNOW ” traders would simply keep SHORTING this pair…..

…hoping that they could Profit from the Down-Trend that CONTINUATION…

On the EXTREME Contrary….

…for the ” Traders – In – The – KNOW “……AND…..the ” BIG Institutional & Professional Traders ” out there…

….they would ALSO be getting ready to take up positions at the same period too…

BUT….instead of ” Shorting / Selling ” further…

…they are NOW take -advantage of this ” Impending BULLISH DIVERGENCE ” happening soon..!!

Hence, these BIG BOYS with ” really HUGE FUNDS “…….would start BUYING…..(  as oppose to the ” keep Selling from the Average LOSING traders “…)

Due to this ” UNCERTAIN Selling ….vs Buying ” at that BORDER….

….What’s the end results then ?

YES…!

Lots of PRICE SPIKES…….& …..FALSE BREAKOUTS as shown above in the chart !

..and now You know why too !

And for myself…..

Instead of being ” deter ” by these Price Spikes & False Breakouts..

I am actually feeling ” Very Happy ” upon seeing that Crazy Buying vs Selling…….at that border..

Because that is a ” Proven SIGN ” that an IMPENDING EXPLOSIVE MOVE ….would be arriving soon.

And for this case…

….it would be a ” Bullish ( Reversal ) DIVERGENCE ” !!!

So the next step ………as according to my ATTACK Plan would be to wait for the ” Appropriate Price Actions ” to SHOW in the market..

…in order for me to decide on the 3 Critical Aspects to SECURE HIGH-WINNING-ODDS……for any trading position in the market namely :

1)  Where’s My BUY ENTRY ?

2) Where’s My Stop-Loss Placement ….( For Optimum Protecting and avoid getting HIT….unneccessarily ! )

3) Where do I EXIT ?

….More specifically….where do I plan my TP #1….and TP #2 ?

Once any of these 3 ” FINAL ” Critical Aspects are NOT being aligned properly….& optimumly

…while trying to strike a balance between the ” Rewards vs Risk ” profile ….( in order to WIN MORE…….and Lose LESS…in the long run )

…the end result would only be either :

1)  Stop-Loss being hit…..only to see the REAL trend moves in the direction You WANT at first.

2)  Price TURNING AGAINST Your position……before reaching Your TPs……and TOOK OUT Your Stop-Loss…….( because they are just NOT Realistic right at the beginning ! )

These are also the 2 ” Major Challenges ” that most traders STRUGGLING MISERABLY with….

…and I also dare say that out of 10 readers who’s reading this…….

…at least 7 would be STRUGGLING With these MAJOR CHALLENEGS……even till NOW !!

That is also why I ” Specially EMPHASIZE ” that You guys MUST read about my ” Entire Decision Making Process

….whenever You’re reading on the articles I wrote to share on a certain Trading Approach I am executing in the LIVE market…

So what You guys can ” See what I SEE “…..

…and ” Know what’s going through in MY MIND ” then….

Very important for You to know about :

….” How a WINNING Trader THINKS “…….( that gives him the Constant WINNING Results )

….if You’re also serious about long term success in this trading game !

Alright……..before I go into the aspect on ” My ENTRY …& STOP-LOSS Placement ” for this Divergence Trade on GBPCAD..

Let me first share another ” Important Situation ” that always caused most traders to be absolutely very confused about……

…while relying on that ” certain technical indicator ” to seek for Potential DIVERGENCE opportunity in the market..

Again…..Why Do I bother sharing that ?

Because I have an ” EVEN MORE Important ” message which I wish to convey across to You guys……which would be beneficial to Your trading SUCCESS in the long run…….obviously…….!! * smile *

Look at the  chart below sharing on the => ” Bullish ( Potential ) DIVERGENCE ”  ….being captured by me from the 4 Hourly ( at the beginning ):

Forex Divergence Trading Strategies

Previously…..

….I am ONLY using the ” RSI indicator ” to confirm & ” Show You Guys ” on this Potential ( Bullish ) DIVERGENCE that might occur soon…

Remember right at the start of this page…

I also mentioned that :

=> “……different traders would actually rely on ” DIFFERENT Technical Indicator ” in their quest to capture Potential DIVERGENCE in the forex market…” ?

Some would be using…..RSI

….some would be using Stochastic

…some would be using MACD..

…some would be using CCI….

etc…etc….

….and by relying on ” DIFFERENT Technical Indicator “…

Do You know how does that AFFECT the ” ACCURACY ” …….for this ( Potential ) Divergence seeking ?

To answer the above..

Let me add another 2 of the ” most commonly use ” Technical Indicators for Divergence Seeking……..

…in addition to the previously ” RSI Only ” chart ……

Like This :

As You can also see on the chart above…

…the RSI ( top ) is having a ” Nice Up-Ward Gradient ” …  ( signaling good Potential Bullish Divergence )

…the MACD ( bottom ) is also having a ” Nice Up-Ward Gradient “….( signalling good Potential Bullish Divergence too )

HOWEVER…

…the STOCHASTIC ( center ) is simply ” Erratic & NOT Linear “…… at all as compared to the other 2…

Here’s comes the ” tricky ” part..

Imagine You’re the one who is Relying on the “ Stochastic ” for this case…

…and upon seeing such ” Erratic & NONE Linear “ waves on the STOCHASTIC indicator..

….it is only NATURAL that….You would choose to give this ” Bullish Divergence ” a MISSED

…for the fact that ….it is NOT a perfect Bullish DIVERGENCE Signal at all…..( as shown in YOUR Stochastic indicator )…

So You ” Missed out ” on a GOOD Opportunity to nail some valuable Pips ……from the Explosive BULLISH REVERSAL that follows.

On the other hand…

If You DID NOT choose to use the Stochastic ……then..

…but choose either the ” RSI …or MACD ” instead..

…then by doing so…..You would be ” Getting a NICE Bullish DIVERGENCE Signals ” from these indicators..

..and You would be motivated to go ahead to trade the Divergence that follows…

By reading on the above scenario….

Do You also agree that this scenario would only add on MORE ” Uncertainty ” for Your trading’s analysis ….end of the day ?

Which we ( traders ) definitely DON”T WANT at all….

Because the more UNCERTAINTY we face…..it means the MORE number of ” Tedious Decisions ” we have to make too…..

…definitely NOT the kind of situation any traders would like to encounter ……am sure !

Or perhaps….

Some of You guys might suggest this :

” Aaron……how about I include ALL 3…..( or even MORE )…..”

…” and I only TRUST that certain Signals ONLY when MOST of the indicators give the GREEN light to go “..

( My Answer on the above ) :

Yes, that is one solution that sounds ” generally logical “…..

HOWEVER….

What if MOST of the technical indicators actually ” Give the GREEN LIGHT TO GO  “…

BUT…..right from the very beginning…

…that is NOT EVEN a ” Good & Reliable ” DIVERGENCE to take on at all…??

With the above……..

….I mean that it is NOT EVEN having the ” High-Possibility ” for the Price to REVERSE ….

….& …..then TREND SIGNIFICANTLY FAR at all ( right from the start ) !

So even if all the 3 ( or more ) technical indicators ALIGN & Give the GREEN LIGHT to go….

…it is really USELESS for that situation ….and You would ONLY SUFFER More LOSSES in the process in fact !!

Don’t believe me ?

Just fire up Your trading chart……..on any currency pair

…use these 3 ( or even MORE ) technical indicators on time-frame …..30 minutes or LOWER..

…basically those time-frames that are filled with ” NOISE & RANDOM Movements ” mostly…

Try to look for the Price SEGMENT where the 3 technical indicators ( or at least 2 ) have aligned & give the GREEN light…..

…with Nice Gradient Waves…….signalling a ” Potentially GOOD Divergence approaching “……( just like RSI & MACD above )

From there…

…..see for Yourself did the market actually TREND ( Significantly ) FAR at all..

Or let me put it this way …

..see  if the  market actually TREND ( Significantly ) FAR at all……for YOU to take-advantage of…

…in order to achieve the ESSENTIAL & CRITICAL =>….” LOW Risk …& HIGH Rewards ” set-up …..most of the time.

If You could NOT achieve that…

…then DON”T waste time on them…

…as in the long run…….You would ONLY STRUGGLE and LOSE.

I am sure I don’t have to explain on the IMPORTANCE of implementing a ” Good Rewards vs Risk ” ratio …..at this point of time anymore………right !

* smile *

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

So How Can One AVOID Being Caught Up In This ( Confusing ) Situation then ?

To be Exact…..

….How Can One ONLY Captures :

=> The ” GOOD & HEALHTY ” Divergence In The Market To Profit From ??

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

( My Answer On The Above ) :

Price Actions’ WAY is ” de ” answer !

Wait….

I know some of You guys might NOT believe me on this..

( or even stare at me with A Truly SUSPICIOUS LOOK now !! )….

That’s perfectly normal to do so…

…as I always encourage my readers to ” think with their OWN LOGIC + INSTINCT “……

…whenever certain ” Gurus / Mentors / Professional MARKETERS “…….are trying to convince them on a certain trading findings/ strategies / systems …..they have..

REMEMBER………IF….

…..the findings/ strategies / systems just DO NOT sound ” Logical & Sound ” to You at all…

..then You’re probably RIGHT on that…

So it’s best to AVOID them……..and DON”T FALL for their ” Super-hype-up words ” !!!  ( just to make You BUY from them !! )

Including me as well..

Please suspect me..

…and ONLY if what I sharing so far….and beyond ..

=> …sounds ” Logical & Sound ” to Your SMART mind..

…then You can go ahead and trust me ….

Cool on that ?

* smile *

Alright…..let’s roll on for now.

Next, I would be sharing on my very own ” Price Actions Approach ” ….

..in order to FURTHER re-inforce my ” Suspicion ” that a BULLISH DIVERGENCE is occuring soon…

To put it in a more direct manner..

IF……the ” Price Actions in the market ” just COULD NOT Convince my mind that :

“….it is indeed a BULLISH DIVERGENCE coming SOON for this GBPCAD pair…”

…then I would just put it aside for now….

…and look for other ( better ) pair/s to profit from..

It’s that simple…

I do NOT ” try my luck ” at anything in the trading game…..

…as long as the RAW Price Actions in the LIVE market DO NOT agree with any ” suspicion/s ” I am having..

…then I would NOT commit into any buy / sell position at all …..for sure !

Why so ?

Because like I always EMPHASIZE so……

…. Price Actions are the  ” CLOSEST , MOST ACCURATE & RELIABLE HINTS ” …..

…any traders can SIPHON ( at will ) from the RAW market’s data……..

…..to help derive his / her trading decision MORE – WISELY……( …& EFFECTIVELY……cutting away most of the Useless NOISE & RANDOM-NESS as well )

…which in the process………would ( Only ) Naturally lead to SECURING ” Super HIGH-WINNING-ODDS ” for YOU ………again & again…….day in….day out…

BUT…….why is that possible at all ?

( My Answer ) :

It is due to the ( simplest ) fact that :

=>…..these ” Price Actions ” have been Proven to REPEAT…..again & again….& again…….in the financial market…for decade now…

Because after all…….it is WE ” HUMAN BEINGS ” that are driving the Prices in the market to MOVE..

…and over time…….HUMAN’s NATURE just Does NOT CHANGE !!!

* smile *

Now You know on this “ little know fact “….too !

Ok……let’s proceed on with my PERSONAL ” Price Actions’ WAY ” ….to ATTACK & ACE this Bullish Divergence occuring in the market..

I know once I start about ” trading & market psychology “…..

…I would normally can’t help it…..but go on…and on…

….but remember….it is NOT the main purpose of this article today….right !

So let’s NOT deviate from that for now …..* lol *

Learning on my ” Price Actions’ WAY ” of planning the 3 ( Extremely ) CRITICAL Aspects on :

1) How I DECIDE on ” My Entry to BUY ”

2) How I DECIDE on My ( Strategic ) Stop-Loss placement

AND

3) How I EXECUTE My Take-Profit Targets Planning

….they are ( anytime) MUCH MORE IMPORTANT than anything else…….for now…….agree too !

Because MOST traders just could NOT get these 3 ( Extremely ) Aspects ……RIGHT ! ( most of the time )

Are YOU also one such trader ” Struggling ” with these aspects as well ?

IF SO…

…then please what I am revealing below……really really ” attentively ” !!!

————————————————————————————————–
1) How I DECIDE on ” My Entry to BUY

2) How I DECIDE on My ( Strategic ) Stop-Loss placement

AND

3) How I EXECUTE My Take-Profit Targets Planning

————————————————————————————————-

Indeed !!

….these are the ” Top 3 Critical Elements ” that most traders HATE to ” make decisons on “…

..because MOST are always STRUGGLING to get them RIGHT !!

Is the above applicable to YOU as well ??

It’s perfectly Alright if…. You’re also one such ” victim ” now.

Let me show You MY ( Proven ) Winning Approach now…

…and perhaps by then….

….You would be much ” more Enlighten ” & know How to OVERCOME these 3 Critical Aspects ( Effectively ) in no time too…!

Previously above..

I was talking about the common ” Price SPIKES ….& FALSE BREAKOUTS ” that would BOUND to occur near to the ” Border “…

…which in this case…….is the ” ZONE Separating the Selling Force……vs BUYING Force ” in the market.

Each individual force is trying ( very hard ) to DOMINATE the market….at that LEVEL..

Hence resulted in ” crazy Price SPIKES…..FALSE BREAKOUTs……Chaotic Siuation “….that is.

Here’s the chart again to help You recap on the Price Spikes ….& FALSE BREAKOUTS :

Upon witnessing the such CHAOs….

… it is ALSO the kind of ” Moment ” that I would start MONITORING the market conditons….

…” Extremely Carefully & Meticulously ” !!

=> …Just like a SNIPER looking through his shooter’s scope…..zooming onto his target…with EARGLE’s Eyes kind of PRECISION…!!

Why do I need to monitor the market in such a ” Meticulous ” manner ?……..( You might be wondering on that perhaps )

=> BECAUSE I want to CATCH the ” Commencement of the REVERSAL “…..

…at the “ very BEGINNING ” of the MOVE !!!

….where the ” ODDS of WINNING ” is ( Very ) HIGH then !!

Like This :

Alright…..saw the above..?

….that ” FULL LONG BULLISH CANDLESTICK ” …..BREAKING-OUT of that SELLING ZONE ?

Very Strong BUYING Interests……leading to a Very Solid ( BULLISH ) Candlestick……that is !

( it is also at this time…….those NOT-IN-THE-KNOW traders who still THOUGHT the market would continue to be Bearish….they would start to PANIC big-time….kicking in their IMPLUSIVE trading mode most likely… …..upon seeing this BULLISH BREAKOUT ! )

…Whereas for ” IN-THE-KNOW Traders ( like myself ) “…..

…INSTANTLY I KNOW I am ” right “…..=> about this ” Bullish Reversal ” I suspect would OCCUR at this level soon….

So do I jump in and BUY upon seeing that ?

Of course NOT…!!

I Know !….I would be considered ” Super-careful ” kind of trader……( to most struggling traders out there ! )

But to ME…….Personally…

I think that’s ” essential “…

…and if a trader really wants to WIN in the long run..

….he / she should really follow MY KIND of ( Super-CAREFUL )….. Trading PSYCHOLOGY….

Do You have any objections on the above saying of mine ?

( please email me about it ya. I would love to hear from You….. if You think likewise!! )

Since I am NOT willing to jump in straight and BUY….upon seeing that ” Bullish Breakout “….

…then what am I WAITING for still ?

( My Answer ) :

I need ” One More CONFIRMATION ” !

Like This :

Having waited ” So Patiently ” for quite a LONG period….

..the KIND of ” Bullish Set-up “ that I truly want to SNIPE on…..has FINALLY Surfaced !

As You can see on the chart above too..

…that’s a nice ” Morning Star CandleStick Pattern “…..( means Bullish REVERSAL happening soon ! )

…and it also coincides with the ” Previous Resistance ” as well..

…indeed a very ” Perfect ” BULLISH Set-up that is…

…SOLID CONFLUENCE as well for that KIND of market conditons. ….NO Doubt !!

So having ZERO-IN onto the KIND of Set-up I am waiting for to re-inforce my BULLISH BIAS…..

We still have 2 MORE Aspects to take care of BEFORE completing the TRADING PLAN REQUIRED…….remember ?

It’s about the :

1) Stop-Loss needed…

2)  Take-Profit Targets for this position.

…when LACK any of these 2 Critical Aspects listed above…..

…the entire TRADING ( Attacking ) PLAN would NOT be WORKABLE at all !

( I KNOW……some traders would just go ahead WITHOUT being bothered to take-care of these 2 CRITICAL Aspects at all……..hence it explains why they are ONLY STRUGGLING & LOSE Miserably…….most of the time ! * frown * )

In other words……..it is better off. that….he / she DON”T trade this BULLISH DIVERGENCE at all !

Because he / she would NOT be having the “ EDGE ” in the market…….

….once any trader LACKs the =>  “ Proper Planning ” of the other 2 Critical Aspects for this position…that is !

Now Remember…

When I am trading LIVE for this position..

…BEFORE I actually COMMIT into CLICKING  the ” BUY ” button for this trade..

I NEED to have already PLANNED for the other 2 Critical Aspects though…

I CAN”T simply BUY FIRST……..then decide on :

1)  Where should the Take-Profit Targets be…

2)  Where should the ( strategic ) Stop-Loss be…

….that’s is NOT the way to prepare for a ” Workable TRADING PLAN “….

...do REMEMBER the above ya !!

So in order NOT to disrupt Your understandings here..

Without explaining on other things for now.

…let me show You the EXACT Steps that I took…… to decide on :

1)  My ( strategic ) Stop-Loss placement

2)  My 2 Take-Profit Targets

…which is ALSO the EXACT ” Decisions Making Process ” that ……=>  I WANT YOU to analyze…..learn….and mould YOURS…. as close as possible to mine…

Why so ?

Because it would HELP with Your Trading’s Analysis ( BIG-TIME )…..as time goes by……once You can also ” THINK ” like me…

….whenever being BOMBARDED with the ” Terrible Dilemma ” on these Critical Aspects :

1)   Where should You place the Stop-Loss ” Strategically ” ?

2)  Where should You place the Take-Profit targets to achieve the ” Realistic ” factor…

Alright…..let me show You MY WAY next !

——————————————————————

My 2 ( Potential ) Take – Profit Targets First !!

——————————————————————

In my personal ” Trading Attack Plan “..

..I would measure the ” Potential ” Take-Profit Targets first..

…this is so that ……when I have compare that with the ” ( Strategic ) Stop-Loss ” needed…

I can confidently KNOW ….whether :

“…can I achieve a ( GOOD ) Rewards vs Risk Ratio ……for that position I intend to take-on !! ”

This is how I do it …:

Hmm…WAIT !

Before I show You ” My HOW ” on that…

I need to clarify on something first..

As I am considering on what’s the ” Maximum LIMIT “ for me to plan my Take-Profit targets..

…the only way is to look at the ” bigger perspeective ” of the market.

So for a start….I shall show You this ” Maximum LIMIT ” level first..

…which enable You to ” SEE WHAT I SEE ” in the Bigger PERSPECTIVE too…..to help You understand better.

Like This :

The ” Orange Horizontal Line ” on the chart above marks the MAXIMUM LIMIT for my TPs planning..

…which means I am ONLY WILLING to plan my Take-Profit Targets WITHIN the ZONE BEFORE that ” Orange Horizontal Line ” …

But why so ?

Because that would  keep me within the ” Realistic Range “..

…which is  VERY IMPORTANT to help FULFILL my Take-Profit Targets…

…and allow me to ENJOY ” HIGH – WINNING ODDS “…..in the long run…..

( as long as I stick to THIS WAY of planning my TPs …PROVEN for 5 years + now !! * smile * )

As You also also see above too…….the ” Orange line ” is at the Price of 1.56808.

Which is also the ” Maximum PRICE ” for my TPs planning ….for this case.

Now……….let me drop to the ” next smaller time-frame ( 1 hourly ) ” to show You the ….

….=> “ 2 Exact Take-Profit Targets ” I have planned !

Here it is :

As can be seen above…

My Buy ” Entry “ would be at Price 1.55640

…….and in order to plan my Take-Profit Targets within the ( Realistic ) MAXIMUM LIMIT….( as indicated by the Orange Horizontal Line )

….I have decided that :

i)   My Take-Profit #1 at 1.56110 …..( about 47 Pips Rewards )

ii )  My Take-Profit #2 at 1.56420 ….( about  78 Pips Rewards )

So in TOTAL =>  ( 78 + 47 ) =  125 Pips Rewards ACHIEVEABLE

AND…based on the kind of ” BULLISH ENTRY POINT “……..I SNIPED on earlier..

…it only requires a ” 40 Pips Stop-Loss ” to fulfill the ” Strategic ” purpose..

Besides being ” tight & strategic “…. ( with a 40 Pips Stop-Loss.. )

ALSO……..it definitely enables me to achieve a ” GOOD Rewards vs Risk ” ratio as well !!

Don’t Believe ?

Let me show You with some simple math then :

Rewards Achieveable = 125 Pips

Stop-Loss Required = 40 x 2 = 80 Pips ….( because I am executing the PARTIAL EXITS…..remember that Unique TP Technique of mine still right ?? )

so……..125  ( divide by ) 80 => 1.56x !!

A Realistic ” Rewards vs Risk ” ratio of  :

“….1.56x  VS  1 ” for this position !

So it that good enough for me to go ahead and BUY then ?

Of course right !!! * smile *

And did I ?

Of course Man !

Such “ Good CONFLUENCE “…

PLUS..

Such ” Good Rewards vs Risk ” ratio achievable..

How Can I NOT Trade this Position ….right !!

Here’s the ” final ” Attack Plan for this position :

So looking at the 3 Critical Aspects that make up my Complete TRADING PLAN……( Entry + SL + TPs )..

…are YOU ABLE  to analyse the LIVE market in REAL- time….

…and then derive the 3 Critical Aspects….as close to mine …..( at Your current competency  ) ?

Well….

IF Your answer is ” Yes “…..then You’re most likely a WINNING trader by now too….Congrats !! * smile *

IF Your answer is ” NO ….or Sometimes Yes…..Sometimes NO “……

…then I am sure You are most likely ” Still STRUGGLING ” with Your trading too….

…getting only “ Lousy trading results “…..MOST of the time…

RIGHT !!

But NOTHING can prevent You from achieving the kind of ” SUCCESS You truly WANT “…..for that I ( strongly ) believe so.

I have already make it an effort to share my =>  … ” Entire Trading Approach + Critical Decisions’ Making Process ” here….( and more in my Forex Trading Empire blog ! )..

…sharing the ” dos…..& DON’Ts “..

…so You definitely have A CHOICE …….to transform Yourself from a ” Struggling ” trader…

…into a ” True WINNING ONE “….as well……

Am sure You also Agree on the above….. right ?

Just make sure You read…..( and re-read again if need to )..

…and then put ” everything ” into practice..

..that’s the way to improve on Your current skills set ( EFFICIENTLY ! ) ……from this point onwards !

Do make SURE …..=>  You DONT go around chasing those ” Holy-Grail / Magical Trading Systems “…

…You would only end up with more LOSINGS…( & Regrets )…..in the later stage.

I am serious on the above !!

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

Trading OUTCOME For This GBPCAP ” Bullish Divergence ” Trade :

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

…..Unfortunately…

…the market turns ” against ” my BUY position….

…and HIT my Stop-Loss  !!… ( Yellow indication in the chart above )

But Aaron………didn’t You say that this is a GOOD CONFLUENCE Set-up earlier …..? “

“…that’s why You are willing to COMMIT into this BUY position …..right ? “

( My Answer ) :

Yes ….that’s indeed what I said so earlier on that.

AND

Even till now…….after gotten the STOP-LOSS ” HIT “…

I STILL ” Stand Firm ” about my belief earlier on this :

“….This is a Truly GOOD CONFLUENCE Set-up to support my Bullish BIAS !! “

This is also what ” SETS ME APART ” from other ( Losing ) traders !!!

Because like I said so too above…….( and in other articles I wrote to share about other strategies of mine )

…once I decide to COMMIT into any BUY / SELL position..

…it means I can definitely ” ( SECURE ) HIGH-WINNING-ODDS ” with that set-up…

….based on the kind of ” CONFLUENCE ” I extracted from the LIVE market conditons then..

PLUS Combined with my ” Good RISK Management “….for every single position I took..

….simply by ” adhering CLOSELY to that Trading Approach of mine “……in the long run…

I KNOW…..I would have NO PROBLEM…….landing myself in the ” Almost WITHOUT FAIL Profit Zone ” !!

If NO other ( Trustworthy Trader ) ever SHARE with You this CERTAIN FACT about trading the financial market yet….

…..Do INSTILL this sentence in Your mind……..once and for all….after today ( for long term GOOD ) :

“….Losing is PART & PARCEL of any trading activitites in the financial market ! “

…and IF You CANNOT handle Losses at all…

…then perhaps this trading game is NOT suitable for You after all…..

( very blunt….but it’s better for You to end up losing…..and even MORE losing….eventually BURNING Yourself badly….right ! )

OR….

….perhaps all these while…..

….You’re being ” MISLED by those Super-Hyped-Up MARKETERS ( Traders ) – IN- DISGUISE “……..

…..claiming that they have a 100% SURE-WIN trading systems / robots

Hence …..Your brain has been ” infected ” by those SCAMMY CLAIMS……by these Dis-honest merchants…….throughout this period…

If that’s really the case…

…please do whatever it takes…….

…..to get those ” TOXIC thoughts ”  OUT of Your mind ……..( once and for all now )

….so that You can learn with a ” Proper Mindset “…..in the days to come !!

( If You’re also SERIOUS about becoming a Consistently WINNING trader….that is ! )

To me……..getting my ” Stop-Loss HIT “…..

…I treat that as a ” blessing in disguise ” actually.

..because of my ” strategic Stop-Loss Placement “..

…if it gets VIOLATED…

…then I definitely want to GET OUT of that position as soon as possible..

..so as to PROTECT my trading capital from being DRAINED from that Losing Position !!

REMEMBER….

A ” Stop-Loss ” ( when place STRATEGICALLY )…….is meant to PROTECT Your trading position ( and capital ).

NOT to make YOU LOSE……!!

(…. but SADLY….most STRUGGLING traders think likewise ….hence they are always TRADING WITHOUT ONE….and only end up REGRETTING……end of the day…..when their account is flashing RED approach MARGIN CALL ! )

…So please Don’t land Yourself in such ” Nasty ” situation like these STRUGGLING traders…….( if You still have NOT previously )

…as I am ( extremely ) SURE……..that You WOULD NOT like that kind of ( forever LOSING ) feeling man!!

You and me are in this trading game to make REAL Profits…….

….which can be turned into COLD-HARD-CASH => which we can spend on to buy things we WANT ( or for our love ones )… …..right ?

You and me are NOT in this game to “ GAMBLE …or TRADE IMPULSIVELY ( in other words => Stupidly ) “…..and BURN our hard-earn money AWAY !

Agree on that too ?

So really NO Point doing ” stupid things ” that bound to ONLY SABOTAGE our Success…….end of the day !

Ok………I KNOW what most of You guys are THINKING of at this point of time perhaps..

It’s that :

“….Aaron….since You’re also being affected by LOSING TRADES in Your own LIVE trades …”

“…but You still can Confidently Land Yourself in the ( Without FAIL Profit Zone )…. every single month ..”

….then there must be ” something UNIQUE ” about Your Price Actions’ Trading Approach + Risk Management ..

…that enable You to have this kind of ( Consistent ) WINNING Power…….right ?

( My Answer on the above ) :

YES INDEED I have !!

Tha fact is that……ss long as You have a ” Proven WINNING Approach “…

=>….that is ( Optimallly ) designed to take-advantage of the CERTAIN PRICE ACTIONS’ Characteristic Of the LIVE Market…

….those ” Reliable & Profitable Ones “…. that have been proven to REPEAT….again & again…..

COMBINED With :

“…a GOOD Rewards vs Risk ratio Position……..each time You decide to take on in the market “…

…that is ALL You need……

….in order to ” Secure HIGH-WINNING-ODDS “….. in the LONGgggggg time to come !!

And it is exactly the ” ONLY ( Winning ) Trading Approach “…….. I have been using for 5 years + now….( since becoming a full-time trader )

Hence I can be CONFIDENT in claiming the above…!!

Moreover…..I even day say that :

“….with such ( Price Actions ) Trading Approach of mine…..Combined with Good Risk Management….”

“….I can achieve trading results that NONE of the so called Forex Robots / Mechanical Trading Systems ……can EVEN come close to !! “

Of course………I can keep ” Repeating & Achieving ” my kind of ( envious ) Trading Results…….for years to come……WITHOUT being worried about it becoming Ineffective at all !

Why so ?

Simply because I am trading PURELY on the RAW PRICE ACTIONS in the financial market !

…Whatever it is SHOWING CURRENTLY……….

I just trade accordingly to( Constantly ) Achieve the ” HIGH WINNING ODDS ” on my side…..

….which traders known as the ” EDGE “…..!

…that is !

NO need for any “ Super Secret Trading Logic ….” as developed by some scientists….or Miracle Trader…..bla bla…

( You know enough of those nonsense….. am sure !! )

Having said the above..

…I am sure You guys are ” more keen ” on KNOWING about :

“…How am I going to RECOVER my previous Losses……and perhaps MAKE Additional PROFITS “

….after suffering this LOSING trade………

RIGHT !!

* smile *

Alright…..fasten Your seatbelt once more……..let’s roll again then !

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

My ( Next ) Attempt At DOMINATING this ” Bullish DIVERGENCE ” on the GBPCAD !!

“…Price Actions’ WAY !! “

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

Wait !

Before I proceed…

I need to clarify on something here first..

That is :

It is NOT necessary that I MUST ONLY trade this GBPCAD to make back what I lose previously…..

…as long as there’s OTHER ” Profitable Set-up ( based on my Price Actions’ Analysis ) “…….that I spotted in the market..

I would just trade that…..and just keep repeating with the Proven Price Actions’ Trading Approach…. ( I have formulated..)

=> ….to help me ” Secure HIGH WINNING ODDS “…..that’s all !

( You can also get a better idea on the above on the JAN LIVE SIGNALS Performance Report too ! )

And for this GBPCAD pair..

…it is STILL having a ” Good Potential ” of a BULLISH DIVERGENCE then……( after my Stop-Loss got HIT )

…so I am definitely Monitoring it further……..for ” Good HINTS ” to capture on again !

Let me show You one illustration explaining…..why I said :

“…..it is STILL having ” GOOD POTENTIAL ” for a Bullish Divergence ” …at that point of time

Here it is :

Saw that ” Hint #1 ” indicated above ?

2 ” Full-BODIED BULLISH Candlestick ” formed…..

….after bouncing from the same Support I talked about previously……. ( that light green horizontal line )

That is definitely a  ” Good HINT ” that there is STRONG BUYING Interests in the market still….

Now…. take a look at the ” RSI ” above……and that ” Up-ward YELLOW Line ” in there….

With that…

….it is indicating that a ” Potential BULLISH DIVERGENCE ” is STILL in place…..( showing such a Nice Gradient YELLOW LINE too …saw that ? )

So with such ” Good HINTS from the market itself “….

PLUS

RSI showing such nice gradient…..

How can I NOT Monitor this pair further for another BUYING opportunity……. right ?

* smile *

Here’s another ” ( Good ) Hint #2 “……that I spotted next :

Saw that ” Hint #2 ” that I indicated in GREEN above ?

That is a SURE -Sign of ( an even STRONGER ) =>  ” Buying Interests “…… in that kind of market conditions ….no doubt!

Because that is a ” PAIR of BULLISH Pin-Bar “…….

NOT just the common ” SINGLE only “…….but A PAIR this time round !!

Now tell me…

Do You think  any of the so called ” Mechanical Systems / Forex Robots ” could catch onto SUCH IMPORTANT HINTS from the market ….at all ?

What You think ?

For ME…….I certainly DON”T THINK SO !

….That is exactly why I am always catching a HEALTHY + PROFITABLE TREND ” at the EARLY STAGE “.……

….& WIN most of the time !!

……..whereas those SYSTEM FOLLOWERS……or FOREX ROBOTS’ Users……..ONLY get ( very ) LATE signals…..and LOSE….MOST of the time !!

=> Totally OPPOSITE from my kind of ( Positive ) trading results !!

Makes sense to You at all ?

That’s NOT all the ” Hints ” though……

There’s MORE.

Saw the pair of ” Purple lines ” above ?  ( forming a Triangle progressively……Yes that ones !! )

That is another SOLID HINT that the market is preparing for an ” EXPLOSIVE BREAKOUT “……very soon !

( again…..CAN ANY Mechanical Systems / Forex Robots / Holy-Grail systems detect this kind of TRIANGLE RELIABLY & INSTANTANEOUSLY…….as compare to MY WAY of extracting them from the market ?  I certain DON”T think so too !! )

So upon spotting that ” Triangle Forming “…….signalling a BREAKOUT coming soon.

Do I jump in straight and BUY at this moment ?

…being afraid that the BREAKOUT might push the price too FAR UP……TOO FAST..

…and when that happens……..I have NO CHANCE to get in…..?

( basically the common FEAR that most Struggling Traders would HAVE……when face with this kind Potential BREAKOUT ! )

( My FIRM ANSWER on that ) :

Definitely NO- NO !!

For any traders who choose to jump in and BUY ….BEFORE waiting for the actual ( Bullish ) BREAKOUT to happen.

…that is truly ” a Lousy + Foolish ” way to trade any kind of  ” Potential BREAKOUT “…

…and would ONLY suffer in the long run ….Confirm !!

Remember…

We NEED ( x 100 )….. the Live market to ” SHOW us the REAL MOVE “….

We…….DON”T PRESUME… ( & try to get in EARLY ) !!

Remember ….that’s a ” FATAL Mindset ” to have while trading the financial market ! !

So at this stage, I will keep monitoring the Price Actions unfolding in the Live market…

…which is also the ” Most Critical Period ” for this Opportunity..

Because like I said so…..

MOST of the time……before an EXPLOSIVE BREAKOUT commences…

…there would be Erratic & Messy Price Spikes + FALSE BREAKOUTs at the border…

So one really NEEDs to be able to ” READ into the RAW Price Actions ” presented in the market then…

…in order to make the ” BEST decision ” wisely…..

….& get onto the ” REAL BREAKOUT “……( Early ) !!

Let me show You MY PROVEN WAY on that :

Again….from the illustration above..

….did You see that the Price is actually ” Bouncing WITHIN that Triangle “….NICELY ?

…touch the upper-limit…..bounce DOWN after…

…touch the lower-limit……bounce UP after…..

And Do You know this certain ” fact ” about this kind of TRIANGLE Formation ?

It’s that :

“….The LONGER the Price SQUEEZE within that Triangle ….”

“…The MORE EXPLOSIVE that BREAKOUT would be…..when it ( Finally ) Happens !! ”

As such….

…whenever a trader witnessed such ” Price SQUEEZE ” …stretching for such a LONG period..

…he / she got to be ” Extra Careful “….& ” ALERT ” …at that point of time.

..so as to ” CATCH “….that ( Extremely ) EXPLOSIVE Breakout……” EARLY ” during the commencement….

But the question is that….:

“…How can one KNOW….what to ANTICIPATE in order to CATCH that EXPLOSIVE Breakout ( EARLY ) ?”

I dare bet that most traders would NOT know have the answer to the above question !!

Let me show You my ” step-by-step Analysis ( Anticipation ) “…..

….for CATCHING it ” EARLY “…next !

Look at the next illustration below to understand ” what I ( SPECIFICALLY ) Monitor “…. in there then :

Most ” Not-In-The-KNOW ” traders only SEE that ” Triangle ” on the surface….

BUT always FAIL to SEE that ” Hidden RESISTANCE ” in there….( the Red Horizonal Line I indicated )

As such, they just DON’T KNOW ” When ” to go in and CATCH the ” First RELIABLE SIGN ” …when the BREAKOUT commences…

For myself, I am monitoring that ” Red LINE “….very carefully…..very meticulously……

….just like a HUNGRY EAGLE targeting that FISH …… with it’s ” Laser Sharp ” pair of Eyes ….( although that fish is swimming in the WATER ! )

But it just CAN’T escape from the EAGLE’s ” Ultra- Precise ” vision !

( ….and ONLY to suffer the PLIGHT of being GRABBED by the Eagle’s pair of powerful CLAW….after )

YES! ….I personally LOVE to watch documentary program…..particurly those involving ” Predator & Prey “.

If One belongs to the weaker group in there ( fish )…..and he / she can’t even defend oneself effectively…

…then it is ONLY natural that they would get ” Eaten ” by the Stronger & More Powerful Group…

Eactly like the TRADING world…..

The ” Traders-NOT -In-The-KNOW ” group….would keep losing and losing……eventually get BURNT badly….and never return…

On the other hand..

…the ” Traders-In-The-KNOW ” group…( such as Myself )…..

…would keep WINNING……& WINNING……making ourselves so Successful ( and Rich ! )….

Cruel Truth I know…..but it’s the Absolute TRUTH in any trading game in the financial world..

95% LOSE…

…most of the money would be WON by the other Top 5%….

…and Now You know this ( CRUEL ) Fact too !

Alright….let’s not Deviate from this ” Divergence Trading Approach ” I am sharing in this article.

Let me show You HOW I ” Catch ” the Bullish BREAKOUT…….EARLY during the commencement.

…simply by judging from that ” RESISTANCE ( red line ) “….I drawn on the chart earlier..

Here’s the Chart again to help You recall :

And this is what I ” SPOTTED ” next :

In this illustration above…

You can also see that a ” Bullish Candlestick ” has VIOLATED that ( critical ) Resistance I indicated  ( red line )

This also means this is a ” Very CRUCIAL ” moment now..

IF….You guys seriously WANT to ” CATCH ” the BREAKOUT…..EARLY at the first commencement…..( like me )

As such..

This is also ” the ” moment that I have to get my ” Entire Trading ( Attack ) PLAN ” ready..

….because when one ” SEES ” that BREAKOUT Happens…..( for this case )

….it would most probably be TOO LATE !!

In order to fulfill a SOLID ” Trading Plan ” for this situation…..

I need to decide on the 3 ( standard ) Critical Elements namely :

1)  WHEN to ENTER to BUY ?

( so as to CATCH the Breakout at the ” Early ” stage ! )

2)  Where Should My Stop-Loss be ?

( in order to be STRATEGIC & help me achieve a GOOD Rewards vs Risk ratio ! )

3)  Where should the Take-Profit Targets be ?

( are they REALISTIC to fulfill at all ? )

As I already Emphasize ” Many Times ” earlier….

If You could NOT get any of these 3 Critical Elements ” Right “..

…then entire trading performance would SUFFER..

…making You feeling simply ” uncertain & fearful ” about all the  trading decision You decide to take on in future…

Because You know You just could NOT ” Secure HIGH-WINNING-ODDS ” end of the day !

Obvious on this fact ?

But it’s alright..

…let me show You ” My WAY ” of planning these 3 Critical Elements one – by -one.

…and I am going to make it ” simple ” to understand ….( even if You’re a total newbie! )

Follow closely for now.

——————————————————————————-

1st Critical Element :

– WHEN to ENTER to BUY ?

( so as to CATCH the Breakout at the ” Early ” stage ! )

———————————————————————————

Due to the ” Explosive Nature ” of this set-up I am targeting now.

I would be relying on the ” BUY Pending order ”  for this situation..

…..and more specifically….the ” BUY-STOP order “.

Also….as I have emphasize many times earlier ( and in all of the articles I wrote to share so far )

…the other 2 Critical Elements have to be PLAN ” At the sametime ” too..

so that I can know whether can I achieve a ” Good Rewards vs Risk ” ratio for whatever TRADING PLAN I have planned.

For in order to make it ” simple for You guys to understand “..

I purposely choose to explain the 3 Critical Elements ” Individually “..

But in Real-Life planning…

ALL 3 ….must be ” Considered TOGETHER “….

REMEMBER that ya !

Alright…let’s proceed on for now.

Look at the chart below first……so that You would understand all the ” WHYS ” I am explaining on …later

Before I could decide on ” My Entry & What Stop-Loss to use “…

..it is important that I KNOW what are the ” Realistic ” Take-Profit levels I can aim for.

Without KNOWING the above….

…it is as good as ” hoping for the best to happen ” …..that’s all.

NOT the way to go…..if You’re serious about achieving HIGH-WINNING-ODDS in the long run !!

So this trade of mine…

…I would be using the ” ( Same ) 2 Take-Profit Targets ” ….as in my Attempt #1 previously.

Why so ?

Because these are ” indeed 2 GOOD & REALISTIC ” levels for me to aim for.

….at the current Price level in the market.

Having ” confirm ” on that..

Here’s my ” Entry + Stop-Loss ” I decided on…..and the ” WHYS “….

So in order for me to achieve a ” Good Rewards vs Risk ” ratio from the 2 ( Realistic ) Take-Profit targets planned earlier..

I have derive my final ” decisions ” on the other 2 Critical Elements ……( in order to complete my Entire ATTACH Plan ) namely :

1)  I have decided that I would place the BUY-STOP at Price 1.55546

( in order to CATCH the Commencement of that EXPLOSIVE BULLISH BREAKOUT  )

Now before I proceed onto the 2nd one..

…let me warn You about a certain ” common mistake ” that most ( Struggling ) traders would BOUND to commit.

That is :

“…whenever these traders spot such TRIANGLE forming in the market “..

…they would TEND to place 2 Pending Orders at the sametime..

….one to catch the UP-Side.

…one to catch the DOWN-side…

…which we traders known as the ” Straddle ” technique.

Why are these ( struggling ) traders doing this ?

Because in most forex TEXTBOOKS….

…they’re teaching that once a certain TRIANGLE formation is spotted in the market..

…..price would tend to BREAKOUT in ” either way “..

Hence, most Forex Textbooks would teach these traders to use the ” STRADDLE ” technique..

…so as to catch the Breakout…..no matter which side it BREAKOUTs after….

Definitely sounds good with that……for most ” Traders-NOT-In-The-KNOW “…!!

They ONLY think of the ” Winning Side “…

…but did NOT bother considering what if there’s …” Price SPIKE….or the Nasty FALSE BREAKOUT…..or perhaps the Vicious Brokers FLUSHING the Stop-Loss “….kind of scenarios…

When this kind of ” Nasty yet COMMON Scenarios ” happen in the market…

…it would take out Your orders for sure…

…and at least ONE of Your Stop-Loss would be TRIGGERED..

…but that’s PROVIDED You also KNOW how to place Your Stop-Loss in a ” Strategic ” location…..too.

But sadly…..most traders only ” use the WILD GUESSING ” kind of technique to consider their Stop-Loss…

…instead of analyzing the market’s Price Actions….and then decide on a PROVEN ” Strategic ” location for the Stop-Loss placement.

End results ?

Being STOPPED-OUT ” Unneccessarily “….again & again……of course !!

So for my decisions on the  ” Entry + Stop-Loss ” aspects for this case..

I am ONLY keen on using just ” ONE ( BUY-STOP ) Order “…

….as I think it is just ” foolish ” to even include a ” SELL – STOP ” on the other side…..( which is Straddle )

If You’re also as confident as me….as regards to reading the RAW Price Actions in the market now..

PLUS…

…considering it is actually showing a ” Bullish Divergence ” on a technical indicator ( RSI ) now..

Why SHOULD I ” RISK MORE “…..by trying to SELL into the market…….RIGHT !

=> When all the ” HINTS ” are yelling BUY…BUY….BUY……..currently ….!!

So please seriously note this warning of mine above ya….

IF You’re also one such trader who likes to ” Straddle ” the market…whenever You spot a TRIANGLE formed..

But the thing is that..

…till now….Your trading results are just ” miserable ‘….so far.

Then it’s time You ” change ” that kind to approach..

..to a PROVEN one like mine…..( in order to Secure HIGH-WINNING-ODDS……day in….day out ! )

Having said the above..

Let me proceed with the ” Final Trading ( ATTACK ) Plan ” for this trade :

—————————————————————

Final Trading ( ATTACK ) Plan :

————————————————————

1) My Buy-Stop Order at Price 1.55546

2) My Stop-Loss at Price 1.55096  ( 45 Pips Risk )

3) My Take- Profit #1 at Price 1.56116  ( 57 Pips Rewards )

………..Take-Profit #2 at Price 1.56426    ( 88 Pips Rewards )

Final ” Rewards vs Risk ” ratio =  ( 88 + 57 ) / 90 = 1.6x

1.6x for my Rewards/Risk ratio..

Should I go ahead with this trade ?

Of course !

Ask any ” Winning trader ” is this a GOOD Rewards/ Risk ratio to implement for this Set-up ?

I am SURE the answer would be ” of course ” too ! * smile *

The Outcome This Time Round ?

Here’s the Answer for You !

Indeed……

…..as You can also see on the illustration above.

….both the TP 1 & TP 2 have both been Profited……shortly after the BUY-STOP has been triggered.

But that’s NOT the ” Main thing ” I want You to take notice here though..

….rather…

….Did You notice how ” STRONG the BULLISH Force ” is……ONCE it BREAKOUTs of that ” Triangle ” ?

That’s exactly what I mean by the LONGER the ” Price stays SQUEEZE in that Triangle “..

…the MORE EXPLOSIVE the Breakout would be …..once it happens !!

And by looking at the above chart Yourself..

You can definitely understand why I choose to deploy a ” BUY-STOP ” at that CERTAIN level….

RIGHT !!

Also……even after my TP #2 has been Profited.

…the Bullish Force still manages to PUSH the Price for another 100 Pips too !

Now tell me…..if that is NOT considered ” Strong & Fury kind of BULLISH FORCE ” existing in the market…

…then I don’t know what should that be called then !

* Lol *

A nice battle WON ….isn’t it ?

Just like the old saying goes..

” Once You have a SOLID Trading ( Attack ) PLAN on hands…..it is already considered HALF the Batttle WON ! ”

Plus

…with a ” Good Rewards vs Risk ” ratio for each position I take on….

Now You know why I can have NO PROBLEM achieving a sub 60% Accuracy ……

…in order to LAND myself in the ” Without Fail Profit Zone ” !!

Talking about that..

Here’s the actual Earnings Screen-Shot ( with Entry, SL & TPs ) to share :

———————————————————————————————————–

( Part 2 ) :

My Divergence Trading Strategy for the USD/CAD

———————————————————————————————————

Previously in the GBPCAD example above…

You have seen how I capture a ” Major Reversal BREAKOUT ” happening in the forex market …

…..which rely on my ” unique ” Approach combining :

=>…..Bullish Divergence Strategy + Price Actions’ ( to enhance my Accuracy )

Now in Part 2…

Of course I would NOT be sharing on the ” SAME strategy ” ….again..

…because that is Only wasting my time…

…and You DON”T get to learn ” new strategies ” with that..

Agree ?

So this time round….

..I would be relying on a ” Divergence Strategy ” to help me capture a BEARISH TREND CONTINUATION in the USDCAD pair.

So without much further ado..

…fasten Your seatbelt…..and let’s ROLL again !

——————————————————————————–

These Are what Most Traders Are Doing ( WRONG ) :

….and MOST of them just DO NOT Know how to overcome that !

——————————————————————————-

From the USDCAD chart above…

…You can also see that it is obviously in a ” Down-Trend ”  currently… ( with a NEW LOW being created in the market !)

So what most traders would do…

…..is they would wait for the Price to ” retrace ” to the PREVIOUS Support Level….( as mark by that Orange Line )

….and then SHORT again from there.

Because they’re hoping that by following a certain TREND TRADING BELIEF that has been taught in most textbooks about :

…. ” Support Turns Resistance ( for a Down-Trend ) ” …

….they could WIN any ” SHORTING Position ” easily simply by following that belief…

However, this is what happens next when they actually SHORT at that level again :

As You can also see from the chart above…

…the Price did NOT ” rebound ” at the Previous Support ( orange line ) at all…

And when this ” unexpected ” happens ……they would experience either of these :

1) Getting their stop-loss HIT…( because MOST traders would definitely place their Stop just ABOVE that Orange Line ! )

2) For those that prefer to use a ” mental stop “…..and upon seeing that ” Strong BULLISH Candlestick ” CHARGING up ..

…they would ( normally ) CUT-LOSS at that level.

In order to protect their capital ….in case the pair goes CRAZY for ” reason that’s beyond out control ! ”

So having got STOPPED-OUT at the ” previous support level ( orange line )…”

They would tend choose to SHORT at the ” Next Support Level again ( Purple line ) “….

….because that’s exactly what most textbooks are teaching about the principle of ” Support turns RESISTANCE “….during an DOWN-TREND. ( which this USDCAD seems to be now….on the surface ! )

So MOST ” Not -In-The -Know ” traders would tend SHORT again at the Purple Line level..

….thinking that this time round….it should be FINE……and they should ” be abled to CATCH ” the Down-Trend TURNING Down again.

Simply due to the reason that at this level….it is ” rather HIGH ” now..

Kind of like getting ” Complacent ” ….thinking that everything would turn out WELL….

The common ” Ignorant ” kind of thinking most ( struggling ) traders definitely possess…

And here’s what happen next when they actually choose to SHORT AGAIN at that ” Purple Line ” level :

Although these traders already ” feel that ” the market is already ” quite high ” for a DOWN-TREND….at the Purple Line level..

( which is the 2nd Previous Support before the Price PLUNGED into a Down-Trend )

However….for the 2nd time, the Price VIOLATED that level again…

and if You look at the chart above……the Price even ” made a NEW HIGH “….with a ” rather STRONG looking BULL Candlestick ” too…

So for another time….their ( SELL ) position got Stopped-out AGAIN.

With that….it also means they had literally LOSE TWICE in a row now !

And for those traders whose ” Trading Psychology is NOT THERE YET “….

…they would naturally want to ” FIGHT the market ….again “…..so as to MAKE BACK those losses Previously..

So again……..( following the technique that MOST Textbooks/ SCAMMY GURUS taught on )….

They decide to SHORT one more time into this USDCAD pair..

And this time round, they would SHORT at the ” Resistance TREND-LINE ” just above…. ( yellow line )

At the very sametime…….they are feeling ” even MORE Complacent ” perhaps..

Thinking that since that Price has ” CLIMBED SO HIGH ” Now….for a DOWN-TRENDING market..

They must be ” A Lot Of PIPS ” they can nail from ….when this Down_Trend RESUMES later on !

So they ” eargerly ” waited for the Price to reach that level near to the ” Resistance Trend Line “.. ( Yellow Line )

But Only to SEE such ” Disappointing Situation ” next :

The Market…..instead of literally climbing further and hitting that ” Resistance Level ”  ( as marked by the yellow trend-line )

…only to PLUNGE fiercely DOWN shortly after ” Violating ” the 2nd Resistance Level ( marked by Purple Line.)

When this kind of ” situation ” caught You by surprise…”

And on that of that……considering that You already ” LOSE 2 times in a ROW ” previously..

How would You ” Feel ” upon seeing the market goes the WAY YOU WANTED to trade on previously ?

But instead of ” making some Pips from that Down-Ward move…..and perhaps help recover some of the Losses earlier “..

…You’re can ONLY witness such ” undesirable situation ” happening before You…….helplessly…

…. ” Really Detrimental ” for most traders to experience that…..no doubt !

If You’re reading this article of mine now…..and You’re STILL NOT getting the kind of ” Trading Success ” that You want..

…then I am very SURE this is also one of the ” Major Challenges ” that You’re facing very often too.

Right !

Don’t need to worry if that’s the case.

Let me share with You ” My WAY ” of overcoming such nasty situations …( definitely ONE that always put most traders ” in a terrible dilemma “…)

…and hopefully next time round, You would KNOW what to ” do ” when facing such ” Dilemma ” again !

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

My Time-Tested Trading Approach To Overome Such ” Terrible Dilemma ” …

( whenever we traders try to decide WHEN to go into the market to ride on the Trend-Continuation again ! )

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

Let me pull up the first chart again to help with Your understandings first :

I am sure it is ” very easy ” for even a total NEWBIE to tell that this USDCAD pair is in a Down-Trend …

Those that JUMP in instantly to SELL into the market…..at this current ( LOW ) Pricing..

….I think I don’t need to elaborate on ” the ( Pathetic ) consequences ” they would be encountering 99.9% of the time !

On the other hand….

For the majority of remaining traders, they ” somehow KNEW ” that they have to wait for the Price to ” Pull-back / Retrace ” first….

In order to ” Sell at a BETTER & HIGHER Price ” again……( instead of SELLING LOW like the first group )

So normally, they would just follow the ” Method taught in most textbooks ….or advertise by those Marketers-In-Disguise ( traders ) “….

That is :

=> They would SELL at the few POTENTIAL ” Support Turns Resistance ” Level within that portion of the Down-Trending market..

And normally….they would attempt to SHORT at the ” First ” one…

….when that Fails….they would attempt to SHORT AGAIN at the ” second ” one..

….when that Fails again…..they would then attempt to SHORT another time…..at the ” 3rd ” one…( if there’s any ….and for this case, it would be that Yellow Trend Line I indicated in the chart above )

They are basically doing ” everything ” except ONE..

…which is on ” gathering Important HINTS ” from the market itself …..in order to put together a ” SOLID Confluence ” to support their SHORTING bias..

You see…

When the market is ” Going to RESUME the Down-Trend for REAL “…..it would leave ” Hints / Footprints ” in the market ….most of the time.

So it is definitely CRITICAL that WE ( traders ) gather as many of such HINTS / Footprints as possible…

…in order to help CONFIRM our trading bias.

Only with that….that the ” Trading Accuracy ” would be HIGH.

Because WITHOUT achieving that….it is simply ” Wild Guesses ” after all..

And sadly….that’s what most ( struggling ) traders are doing….

Hence their entire trading journey is ALMOST ” Terrible & Disappointing “..

Basically…..stay STUCKED in the ” ( common ) losing cycle ” most traders have to encounter on…..

And when You do NOTHING about it….but ONLY ” Hoping ” that everything would turn out FINE for You..

….the end result is normally ” Disastrous “…..proven !

As for myself…

I would ” already KNOW what are the HINTS I need BEFORE committing into a SELL position “…….upon seeing a ” developed Down-Trend ” prevailing in this USDCAD pair.

Here’s the chart again for You again :

I certainly KNOW that the market would ” Pull-Back / Retrace ” after a PLUNGE.

But the  ” millions dollars question ”  is about :

“…WHEN would the Down-Trend RESUMES again ? ”

So based on the question above..

Isn’t it obvious that we should wait for the ” SHOW THAT ( first ) “….?

…INSTEAD of simply SHORTING at the ” Potential Turning Resistance Level “….BLINDLY ?? ( like most losing traders are doing )

——————————————————————————–

Here’s How I ACE this situation :

(Combining DIVERGENCE Approach + Price Actions’ WAY ! )

——————————————————————————–

Soon after….the market started to ” Pull-back / Retrace ” to the ” first Resistance Point “…( as marked by the Orange Line )

When the price is at that level….we CAN”T just SELL directly into the market….( PRESUMING that the Price would Resume Bearish then !! )

…that’s ” naive “…..I would say.

The Market has to show the ” Footprints / Hints ” first…..remember ?

So since there is NO ” Footprints / Hints ” at all at this level…

I shall step aside first..

I know with the ” current market conditions ” as shown in the chart above..

A lot of traders would start to enter for their SELL positions…..because the market is starting to show ” some Bearish Movements…..”

There are also some ” Reversal Candlestick Patterns being formed in that level now “…..such as a ” Evening Star / Inverted Hammer “..

That’s why I am so sure that there would be ” A Lot of Traders ” WILLING to jump in and start SELLING..

But NOT Me though !!

Because with what I ” see on the chart ” above..

The ” Confluence ” that I need in order to make me COMMIT into my SELL…..is not even there yet.

So there is really ” No Logical Reason ” for me to enter for my SHORTING at all !

Agree on my saying above ?

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

Here are the ” Individual Critical Elements ” that help derive the

” SOLID CONFLUENCE ”

in order to TRULY CONVINCE myself….. to Commit into a SELL  !

————————————————————————————————————

( 1st Critical Element Gathered By Me ) :

That level ( marked by the Purple Line ) is approximately at the 50% FIBO retracement definitely.

I certainly know that ” alot of the traders ” out there would ONLY use this retracement tool for their buy / sell.

And they even place GREAT EMPHASIS in it to decide whether to Buy / Sell into a position.

But that’s NOT ” My preferred style ” though !!

Because MOST of the time…..the market would ” RANGE ” from the 50% – 80%….or even 100% retracement when a ” double top formed in there ” …..( using this FIBO tool )

That is why I only ” take note ” of this 50% Fibo Retracement level…

And continue to gather other ” Important HINTS ” to help derive the SOLID ( Selling ) CONFLUENCE I need..

( 2nd Critical Element Gathered By Me ) :

The ” 2nd Important HINT ” that I gathered shortly after ” noting on the 50% Fibo Retracement level “……is a POTENTIAL BULLISH DIVERGENCE ! ( as shown above )

Because I am a ” PURE Price Actions ” kind of trader…

…it is obvious that I DO NOT rely on any ” technical Indicator ” at all for my market analysis..

So whenever I suspect that ” a Potential DIVERGENCE ( whether Bullish / Bearish ) ” could be forming..

I would just ” confirm ” with the technical indicator for this purpose.

( PS : Even WITHOUT capturing that BEARISH DIVERGENCE as shown above…..I can still gather the SOLID CONFLUENCE I need in order to COMMIT into a SELL position. Do read on for now as I am revealing that later below for You to understand on )

Also…

Take a look at both ” Point A & B ” on the chart above……along that ” Up-sloping Blue Line ”

Point A => ” Evening Star Pattern ”  ( very obvious on that )

Point B =>  ” Bearish ENGULFING Pattern ” ( obvious on that too )

Both are ” Reliable ( BEARISH REVERSAL ) Candlestick Pattern ” indeed !

And they are found at these ” Critical Levels ” in the market too !

What does that tell me about the ” Real Dominating FORCE ” in the market then ?

Very highly that the ” SELLERS ” are starting to park in their SELL orders…..right ?

Hence resulted in such ” Evening Star + Bearish ENGULF ” at the 2 TOPS..

Which also ” Coincide with the BEARISH DIVERGENCE ” I found…

So did I SELL into the market having gathered the ” 2 Important HINTS ” so far ?

NO…not yet though.

Because for my ” own standard “….that is still ” Risky ” to SELL into the market.

Due to the FACT that the ” Money Zone ” is NOT even showing in there yet…

Why should I ” RISK ” unnecessarily…..right ?

Here’s why :

Alright…..now can You see that ” Orange ( diagonal ) SUPPORT Line ” I indicated above ?

No doubt the ” Bearish Engulfing REVERSAL Candlestick Pattern ” looks rather TEMPTING for me to SELL at that level…( considering I have already gathered 2 IMPORTANT HINTS so far now …)

BUT…..

Yes….there’s still a ” But ” here…

What IF The Market FAIL to BREAK-THROUGH that ” Orange ( diagonal ) SUPPORT Line ” ?

…since it is STILL in a ” Healthy UP-Trend Channel ” NOW !!

So isn’t is ” Logical ” that I wait for the Price to VIOLATE that Diagonal SUPPORT ( orange line ) first ?

….before jumping into the market and ONLY FAIL to achieve the ” LOW RISK…..HIGH REWARDS ” set-up that I am ( Only ) KEEN ON….for every position I am taking on in the market !

I know for most traders….it sounds ” common sense “…on the above.

But when it’s time to consider the ” real facts “….in the LIVE ( messy + chaotic ) forex market…

You guys would simply get ” confused & lost ” then….most likely.

What’s the reason to that ?

Because I am making ” everything so easy to understand ” here for You guys.

Especially HOW I gathered the ” IMPORTANT HINTS ” so far…

PLUS…..why am I NOT WILLING to sell into that market till now…

All the while….I am the one ” feeding ” You the ” Critical CONSIDERATIONS “…

Agree so ?

But when it YOUR turn to face such ” Dilemma ” in the market…

Most would just ” Surrender “….and could NOT trade in such a ” Defensive WAY ” like me.

In order to SECURE-HIGH-WIINNING-ODDS……again & again……regardless of whether I am Selling / Buying into the market !!

So if You are really ” serious ” about being as Good & Competent as me….as regards to gathering the ” IMPORTANT HINTS ” to help You make ACCURATE Trading decision..

….especially to help You AVOID those ” Lousy & Unreliable ” set-ups…

Then it is really putting in ” a little more effort & time ” to master every single ” Critical Elements ” that You can take-advantage of from the LIVE market for that purpose.

Whether is it…..Fibo retracements….or….Patterns Trading….or….Candlestick Formations….or Resistance / Support…..or Divergence Trading…..etc…etc

The fact is that …..

The MORE You know about the ” Individual Critical Element ” that occurs in the LIVE market..

….and can Confident ” Recognize them ” when they are there……to help with Your trading decision.

The ” MORE ACCURATE ” You will be by then.

That’s for sure !

And I am a Very Good Example on that……judging on the so many ” super-useful ” articles I wrote to share about my Price Actions’ Trading Approach in my blog so far !

Agree so too ?

Alright…more on that later.

Let me proceed with the  ” Rest of the Attack Plan ” for Dominating the Down-Trend in this USDCAD pair again next :

So to help You recap again ..

With all the ” IMPORTANT HINTS ” I gathered so far..

I am STUCK in this current situation whereby I could NOT do anything else..

UNLESS…..the Price BREAK-DOWN of the ” ( orange ) Diagonal SUPPORT Line “…..as I already mentioned earlier..

” But Aaron….You already gathered so many HINTS so far…..if the Price did NOT violate that SUPPORT LINE……You just continue waiting FOREVER ? ”

( My Answer ) :

YES…..that’s for sure !

Only when that ” condition ” is fulfilled..

Then I would Proceed into the next stage of ” Looking for Optimal Entry ( using Price Actions ) …..in order to achieve the kind of ” LOW RISK…..HIGH REWARDS ” set-up I ALWAYS want…

Before that happens….if I STILL choose to commit into a SELL…

….then that’s ” truly IMPULSIVE + ILLOGICAL ” trading.

Which at my ” current level “….I WOULD NOT be doing those ( nonsense ) anymore……for sure too !

* smile *

That’s why I am ” Successful ” for 5 years+ now…….( in a trading game where only LESS THAN 5% Made it…..in the LONG run !! )

* smile *

Here’s what Happens Next :

After waited ” patiently ” for a few hours…

The Price ( finally ) BREAK-OUT ” Downward “……and Violating that ( Orange ) Diagonal SUPPORT line that’s ” Obstructing ” me !!

So having seen that..

I then drop to the next smaller time-frame  ( which is the 1 hourly ) ….to start monitoring the Price Actions in ” finer details “….

…in order to capture ” Optimum Entry & Stop-Loss placement “….to help me achieve the ” LOW RISK…..HIGH REWARDS ” set-up I always WANT !

Like This :

Previously, all the charts’ analysis are taken from the ” 4 hourly time-frame “.

But this time round, the one above is taken from the ” 1 hourly time-frame ” instead.

Because as I mentioned earlier that I need to drop to the ” next smaller time-frame ” to monitor the ” DETAILED Price Actions in the market “.

So that I can catch the ” Very start ” of a DEVELOPING Down-Trend that follows ….!!

However…

Upon spotted the situation above whereby the ” Price BREAK-DOWN ( of that Orange Diagonal SUPPORT Line ) “…..

….Retrace….

…..and actually ” Formed a BEARISH ENGULFING Candlestick Pattern ‘ in the market..

I STILL ” did not ” commit into a SELL though..

Why so ?

Simply because I ” don’t feel comfortable ENOUGH ” ……Shorting at that level…

But since I have the ” Potential Rewards / Risk ratio ( Achievable ) “……..ALREADY PLANNED FOR…

I definitely ” Knew ” that I still have ” AMPLE allowance ” to WAIT slightly further…

More Critically is that….I need to SEE a ” Much BETTER Set-up ” in the market first…

Before Finally Commiting into this SELL.

YES !…..You can say that I am being ” Super Careful “….or even ” Extremely Careful ” …

I WON”T deny that for sure !! * LOL

But isn’t that….the ” way ” to be ?

…in order to secure HIGH-WINNING-ODDS in the market…..day in ….day out ?

Agree too right ?

Next, this is what I saw….( and I LOVE IT VERY MUCH ) :

Look at the chart above….

Can You actually make out why I said :…. ” I LOVE what I SAW in there ” ??

(…. that ” Finally ” Convince Myself to COMMIT into my SELL position ! )

It’s ok ….if You can’t guess it..

Because after I explained the ” details ” below….You would Understand then.

Which is MORE IMPORTANT for You now ( to enhance Your PA trading knowledge )….right !! * smile *

These are the ” Invidual Critical ELEMENTS ” that I saw then…..( that I truly LOVE ! ) :

1)  Price ( again ) BREAKOUT of the ” Critical Support ” ( indicated by the Blue Horizontal Line )

2) At the very same BREAKOUT, it actually created a ” FULL BODIED BEARISH CANDLESTICK ”

ALSO

3) When You take into account the ” 2 little dojis ” on the LEFT of that FULL BODIED Bearish Candlestick..

….that is a ( very ) Strong Indication of the HUGE SELLING FORCE in there.

That’s why resulted in these ” Special ( Bearish REVERSAL ) Candlestick Formation ”

Some would treat that as ” 2 Dojis + One FULL-BODIED Bearish Candlestick “…

…while some others would treat that as a ” Evening Star ( Bearish REVERSAL ) Candlestick Pattern ” though…

BUT to me….it is NOT that important which one did I consider them as…

BECAUSE..

Taking into account the ” Few CRITICAL ELEMENTS ” I have ( already ) GATHERED so far……( exactly like what I mentioned above since the beginning of this USDCAD Divergence article )

…up till this point where I spotted the ” Actual SELL ENTRY ” …..shown in the chart above..

I have already ( Successfully ) GOTTEN the ” SOLID CONFLUENCE ” I need…..

…in order to CONVINCE myself into my ” Final SELL “….for this USDCAD pair !!

* smile *

Yes….You can definitely say that I am being ” Extreme Cautious ” here…

I definitely agree so..

…and I even THINK that……that’s ” Mandantory ” too !

As far as ” trading ” is concerned ! * smile *

Any objection You have on that ?

I wish to know definitely….

On the chart above, I only shown You my ” Entry & ( strategic) Stop-Loss ” for this trade.

Next, let me show You my ” Take – Profit Targets ” planning..

So as to make this ” Trading ( ATTACK ) Plan ” complete !

Here it is for You :

In case You’re wondering how come the chart above is ” slightly different ” from the one earlier on..

It’s because I am capturing from the ” 4 hourly ” this time round….

…in order for You guys to see the ” 2 Take-Profit Target Levels ” I have planned for this ( Attack ) Plan.

So as You can also see that :

1) My TP 1 is at Price 1.01140  ( 55 Pips Rewards )

2) My TP2 is at Price 1.00890  ( 80 Pips Rewards )

If You have been reading on my Forex Trading Empire blog all these while..

OR….have been following those articles I wrote sharing the Strategies that I deploy to ACE the ” different kind ” of market conditions..

…then You would already know by now that I am always planning my Take-Profit targets in the ” Range of 50 – 90 Pips “…

…for almost ALL of the ” Intra-day positions ” I am taking on in the market.

Why that range ?

Because they ‘re ” realistic “…and ” Easily Fulfilled “..

ONCE You can also capture onto such ” Healthy & Profitable ” Trend like I do…

Of course NOT forgeting the ” Optimal ENTRY + STOP-LOSS Placement ” too….in order to achieve a ” Almost Perfect ” Trading ( ATTACK ) Plan !

Limiting ” wild guesses ” to a BARE-MINIMUM.

But soley based on the ” FACTS ” prevailing in the market…..which is the Price Actions !

Notice that too by now right ??

* smile *

And here’s the Outcome for You for this USDCAD Divergence trading :

So is this a ” Winning ” trade end of the day ?

The chart above says it all…..right ! * smile *

With my ” SELL Entry ” at =>  Price 1.01690

” ( Strategic ) Stop-Loss ” at => Price 1.02040  ( 35 Pips Risk )

TP #1 at => Price 1.01140  ( 55 Pips Rewards )

TP #2 at => Price 1.00890 ( 80 Pips Rewards )

So what’s the ” Rewards / Risk Ratio ” for this trade ?

80 + 55 = 135 Pips ( Rewards )

35 x 2 = 70 Pips ( Risk )

I twice it because I am ” executing the Partial 50% exit….” ….remember still ?

Nevermind if You don’t….as I have included the ” actual Earnings Screen-Shot ” below for You too.

So RR is :

135 / 70 = > about 1.9X !!

Is that a good ratio ?

Of course !

Ask any ( winning ) traders around….I dare say they would ” agree ” too ! * smile *

————————————————————————————

Here’s the Actual Earnings’ Screen-Shot To Share

( with the actual Entry, SL & TPs )

————————————————————————————-

( USDCAD 1st Partial Exit ) :

( USDCAD 2nd Partial Exit ) :

——————————————————————————–

My Conclusion for You :

——————————————————————————

Alright……having explained so much till this point.

Maybe some of You would be ” rather confused ” with the DIVERGENCE Trading Approach that I use to Profit from the GBPCAD & USDCAD above.

It is ” perfectly normal ” to seem abit ” lost “ for now……..( especially if You’re complete NEW with Price Actions trading )

Take Your time to go through the entire article once again..

……stay ” EXTRA Attentive ” on my DECISIONS-MAKING-PROCESS……..while I am in a ” Trading Dilemma “…

That is solely the ” Critical Aspect ” that separates a WINNING trader from one that is ” forever losing & struggling ” in the market….

Remember….

DON”T waste Your time chasing after those ” Magical / Holy Systems ” being selling around by the Dis-Honest Merchants posing as ” Professional Traders “……..

( if You have been doing that previously……Please STOP now )

….that would only lead You to achieve NOTHING….eventually.

Because those systems just do NOT work in the long run….at all…..but most likely BURST Your trading acccount/s instead !

As I have already specially emphasized before that there is NO WAY any of the so called ” Forex Robots / Softwares ” could read into the market RAW PRICE ACTIONS….with such Accuracy as I did .

Or rather…….they just could NOT compare to ” Our Human Brain ” ….as regards to reading such Price Actions to help us make ” More Accurate Buying / Selling Decisions “..

YES……it would definitely requires some “ effort & time ” on Your part …..if You’re totally NEW to trading using such ” DIVERGENCE + Price Actions Approach “……like I explained earlier..

But as long as You are willing to master ” One Single CRITICAL ELEMENT…..one at a time “..

…in no time, I am SURE You would also ” SUPERCHARGEYour trading skills TREMENDOUSLY……from Your current level.

And even start to RAKE IN such Profits from trading the

” Divergence ” occurring in the Forex market

( like I do as well for the GbpCad & UsdCad trades ) :

( GBP/CAD Profits Made )

( USD/CAD Profits Made )

Most Importantly….You would be ” Losing Much LESSER “….

each time when You’re Wrong ..

Like This :

Losing ” Much Lesser ” when You’re WRONG…..

AND….” Winning Much MORE “…..when You’re RIGHT.

( PS: Just do the math based on the actual earnings of mine above….and You would know what I mean by WINNING MORE….Losing LESS ! )

Isn’t that the ” Most IDEAL WAY ” to trade the financial in the long run ?

Obviously right !! * smile *

And I truly believe that ….=> ” YOU CAN Also Do it too….if You ( seriously ) want to Succeed !! “

Of course by then…. I would be waiting for Your ” Success Story “

OR perhaps even announcing to me that You are ALSO ” Trading Full Time Now “.

….and have finally quitted Your Day-Job then….( NO MORE RAT RACE FOR YOU it means !! )

* smile *

YES….I really look forward to my readers achieving the kind of ” Envious Success “…..just like what I have been enjoying for the past 5 years+ too.

It definitely gives me a form of “ Satisfaction ” that money cannot buy ….( upon knowing that ! )

Alright…..so much on this sharing today..

Thank You for taking the time to read till this point…

Happy reading, learning & trading for now ya !

To Your FOREX SUCCESS,

Aaron Tan ( your trading friend )


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