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Warning: Before you proceed to read the entire post below…it is essential for you to discard everything you know about using technical analysis to trade the forex market ( …Especially if YOU’ve been relying HEAVILY on technical indicators! )

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If you’re also wondering what’s Forex Price Action actually….& why such Forex Trading Strategies are more Powerful & Accurate…

Then this post is definitely a must read for you !

Basically Forex Price Action is a trading strategy which analyze the ” Behaviour of the Price & the Patterns that have formed ” in the forex market.

We then use such ” Behaviour & Patterns” to gauge what the market’s sentiment is currently and most importantly - What’s the market response most likely be next…

If you don’t know yet…..do you know that using PRICE ACTION to analyse the forex market is the closest ” Hints” you can siphon from the market about what it’s telling you.

To put it simply…it is the most powerful way to really predict :

1) Where the price would be heading ( whether Up, Down or Sideway….)

2) And more critically - By using Forex Price Action, it would enable anyone to enter into a trend very EARLY at the start !

Here’s what I mean :

( Without using any Technical Indicator at all..)

Now ask yourself this….how many times when you rely HEAVILY on textbook indicators be it  Moving Averages or MACD or Stochastic or Bill Williams or Bollinger Bands or RSI…..etc..

You actually managed to detect a trend really ” EARLY ” at the start of it…

Most of the time, when these technical indicators gave us the signal to BUY or SELL….the trend would have moved halfway from the starting point..

And when we entered happily thinking that this time round, we would be walking away for a nice profits based on the signals from these technical indicators..

It actually turn out very disappointed for us because when it’s time to exit….the indicator is slow in telling you too!

And what happen next ?

2 things…..

Either you read the PRICE ACTION & The Patterns it formed and exit when you detect a Possibility of  Price Reversal…

….Or you simply allow the trend to reverse and seeing those profits given back to the market painfully!

Worst, when market reverse and eating away the previous profits you had and then ultimately hit your Stop-LOSS….

Your morale literally dampen to the max …..and you sort of think to yourself…..why.? why? why?

You’re frustrated….confused and at the same time have the urge to fight back using even bigger lots ….

What does this leads to ?

A gambling mindset - A fatal trap to most newbies or even experience traders still trying to make consistent profits every month.

I truly understand this vicious cycle because I for once also rely heavily on textbook indicators during the early phase of my forex trading journey.

I would say that it is inevitable that all newbies who came into this forex trading game would be expose to such technical indicators for sure…

Because it is what ALL books & training programs are teaching !

Now….don’t get me wrong here though.

Technical indicators do work for some and still continue to help them rake in consistent Pips & Profits …month after month.

However….these are the traders who truly understand the ” Strengths & Limitations” of the technical indicators they are using..

And very importantly….they are using the ” Right Settings ” too.

I personally have tested more than 30+ combinations using almost all of the technical indicators we can find on most trading platform..

There are some trades which are successful…..some are really bad.

Such as …when the market is RANGING…..( and if you’re using Moving Averages ), there would be very messy & confusing WHIPSAWS.

When I finally understand that all these technical indicators actually derive their formula from the market’s PAST HISTORY - The Price..

I begin my journey on studying on the Price …..particularly the ” Forex Price Action & Patterns” it form for my Buy & Sell decision.

This is where my trading skills took to a whole new height - Which literally enable me to enter a trading position much more accurately & also nail MORE PIPS ( because I can now enter early during the trend !)

The main reason why the Price in a Forex market moves in a particular direction is due to 2 driving forces namely :

1) Fear  ( Fearful Selling ? Downtrend….)

2) Greed  ( Greedy Buying ? Uptrend..)

3) How about Unsure..?  Then it would be Sideway or so called a Ranging Market

Studying of Forex Price Action can in fact also be considered a relatively close study of the market responses..

The amazing thing about using Price Action is that it is FASTER than any derivative or technical indicator..

It is NOT lagging or confusing like many of the popular textbook indicators…

And the ONLY TRUTH in the Forex Market is the CURRENT PRICE !

By trading purely based on Forex Price Action, I can ignore news, opinions and any personal biases..

And it can also be ” Confidently” use by any trader ( including yourself ) to predict the near future response of the market with a high level of Accuracy…..and Much Earlier.

Thus allowing You to enter at the ” Start Of A Trend ” Earlier…..( Just like in the example I shown above about the ” V ” Reversal…)

As well as ” Exit ” with more valuable Pips & Profits for any trade you took…..instead of waiting for the technical indicator to give you signal which are almost too late normally.

Do you know why is that so …..?

That’s because these technical indicators rely on the Price Action ( mainly the Past History Price ) to give You the Buy or Sell signal.

Which explains why they are ALWAYS lagging behind & slower then the actual Price ……

So……….instead of using technical indicators to give me the Buy/Sell signal….

I am using them in an OPPOSITE way….( Opposite from 95% of the frustrated traders  )

With that I mean - I am giving Priority to The Price Action & The Patterns formed on the forex market..

Whereas most of the traders would give priority to the lagging technical indicators instead..

Moreover…. I ONLY use simple indicator ( 1 or 2 at most ) to help me confirm my decision based on the Price Action.

And not clustering my chart with 2 or 3 moving averages plus bollinger band plus another 2 oscillators - Which only make the decision making more complicating & clouding our ability to spot good trading opportunities!

PS: Remember this…..when You do things the same way as the majority….you would get the same results. And that applies to 95% of the frustrated traders who are struggling to make consistent profits every month !

What you think after reading what I have to share about Forex Price Action here ?

Is it time You explore and learn more about Forex Price Action too and bring your trading skill to a whole new ” More Powerful” level ?

Or even better….

Combined just a few ” Reliable” technical indicators which you’re already using WITH Price Action Forex Trading Strategy….

And see the amazing & shocking results ( More Profits ) for yourself in the days to come perhaps ! * smile *

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Recommended Read :

1)  Powerful Forex Price Action ” Reversal ” Strategy From Forex Confidant

2)  Proven Price Action ” Trend ” Strategy From Forex Supremacy

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As far as Forex Trading Strategy is concerned….

The ” More Logical ” it is…..the higher would be the success rate.

Which also means more pips ( & profits ) for you and me end of day !

Just like any financial market, the price movements are driven mainly by ” Human Sentiments”…

The 2 major driving forces are :

1) Panic Selling

2) Greedy Buying

When any of these 2 are ” NOT in balance “…

The price would move….. or rather ” Breakout “.

Now …let me explain and illustrate why and how you can apply this technique & benefit from it too below.

Here’s a trade I took on the GBY/JPY pair using this forex trading strategy to share :

When I woke up in the morning  ( to accompany my wife to the market )….

I also took a glimpse at how’s the forex market is doing after a very BULLISH run previously.

Normally I would not trade on a FRI because it can go really crazy and ” Unpredictable “.

For for this situation, I spotted a very nice ” Double TOP ” price pattern that morning.

So instead of going out straight away…

I requested that my wife give me 5 minutes for me to do some trend-line drawing and place my trades…hehe

As you can see from the screen-shot above…

The price ‘ BOUNCE OFF ” the trendline I drawn..& start heading southwards.

” This is really a very nice and perfect set-up to capture some reliable pips ” - I told myself…

Note: This is something that you would want to know too…really.

When the price does ” Bounce Off ” from the trendline….it actually reflects something important.

If you have been trading using ” Price Pattern ” ( just like me ), you would understand it by now too.

Basically when the price Bounce Off….it means one force is stronger here.

For this case would be the ” Sellers’ sentiment is greater “…

Therefore preventing the price from going any higher than the trend-line.

So it goes with the direction which I want to take too - To SELL or SHORT !

After using the ” usual ” Risk/Reward assessment of mine..

I placed an order, a Stop-Loss & a Take Profit target.

This time round, I am NOT aiming for the usual 250 Pips but I am rather ” Conservative “.

I am using the “ earlier lower point support ” ( Point A ) as a reference for my TP.

( Which you can see from the diagram above )

So I decide to set :

- My TP @ 138.55 ( 180 Pips Realistic Target in case the price ONLY range )

- SL at 141.25 ( -90 Pips )

( rather good risk/reward ratio )

- ” SELL ” entry @ 140.55

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

Using this ” Simple Price Pattern ” analysis which took me about 15 minutes…. ( before heading to the market with my wife )

I profited about 180 pips.

Which gave me a nice USD $1844 +.

Although the price continue to plunge further beyond my TP target of 180 Pips…

But it is really important that one keeps to a ” More Realistic ” target ..

Than to set an ” Unrealistic Profit Target ” and then to see the market reverse and hit our SL …..

That’s really a ” OUCH “….& definitely something we can AVOID!

Which is a basic ” Psychological Aspect ” anyone must possess ….if he/she really wants to be a successful trader.

And Make Real Consistent From Trading Forex Every Month….!

Do you possess such psychology?

Do you always KNOW & set a ” Realistic  Price Target ” …..like I do ?

Something to let you ponder perhaps….

Oh ya….

If you also look at the diagram again, you would notice a ” PIN ” formation on the right bottom too..

This kind of ” PIN ” is a very potential REVERSE set-up.

But I did not take that trade because it is FRIDAY and the market would be closing in just a few hours time.

I try not to take any trade during that period nor do I carry my trade past the weekend.

( Any scary news can just drop over the weekend and cause a ” BIG GAP ” on Monday….! )

Furthermore, I am going out with my wife for a friend’s birthday celebration that time…

So it is kind of ” Enough for me this week “….

Total profits for this month as been rather good with over $25,000+ like I mentioned in my earlier post.

If you have not read it…..

=> Here’s the link to share about one powerful strategy to catch massive pips

Alright…

So much for this post on ” Simple Logical Trading Technique Combined With Double Top “.

I hope that ( once again …) you have learnt another great forex trading technique & got enlighten as well.

Thanks for reading this far.

Happy trading, Happy hunting & More Successful Logical ” Explosive ” gains for you too !

If you have ever wonder how you can safely capture the ” Maximum Pips ” during a Massive Breakout..

Then this Forex Trading Strategy is ” one ” that you would be very interested for sure.

This is indeed one very powerful forex trading strategy to attack the market and rake in between 500 - 1000 pips in just one single trade.

I have personally deploy this strategy a few days back on 2 of the yen crosses and it gave me a really good ride on the ” Massive” Profits wave.

Out of the 2 trades I executed..

I shall use one of them to illustrate to you how I scan & set-up this profitable trade.

one of them is the EURJPY & for this….I managed to captured about 700+ Pips…

Which help me grow my account by a nice USD $7844 +

Here’s an outline on how I execute this powerful forex trading strategy and how you can do the same too.

And with this method, you need to open 2 Lots at the same time.

I have included a screen-shot for you to understand better…

This is a trade for ( EUR/JPY ).

As you can see from the picture above…

The formation of ” Good Set-Up For LONG ” is the entry point for my trade.

I confirm this is a good set-up based on my ” usual” price pattern analysis as taught in this forex blog of mine.

( Basically for this set-up, both the Bullish & Bearish candle are about the ” Same Size “…which is also known as the TWEEZER BOTTOM & it is a very good Reversal set-up!)

( AND….they are sitting nicely on the one of the major ” Resistance “ previously )

A very good set-up for a ” Reversal ” I called it….

So what does ” Reversal ” here means to you ?

I see it as a continuation of the UPTREND previously…

And with abit of fundamental analysis, I can tell the market is rather BULLISH too..

So having calculated my Risk/Reward ratio and the critical ” Stop-Loss ” value…

It is a really ideal set-up for me.

I then open 2 ” Lots ” at the same time at the price of 118.36 ( shown on the picture )

- 1st Lot with TP = 250 pips, SL = 117.66

- 2nd Lot with TP = not set , SL = 117.66

( I do not need to set TP for the 2nd Lot because I would be riding the maximum pips throughout until the trend loss the stream ..)

Hope at this point you understand what I’m talking about.

If you don’t….try reading again..

And once I entered the market..

The market keep charging up in an extremely BULLISH way…

To provide me with further confirmation, there is a BULL FLAG along the halfway mark too..

Which is a good sign definitely.

The up trend went up strongly in just a few hours…

….and hit the TP for my 1st lot @ 120.86

For a nice profits of  250 Pips. ( my usual profits target for this pair )

Here’s the screen-shot of the ” 1st Lot ” order to share:

250 Pips Profits = USD $2680+ for the 1st Lot.

The main trick of this forex trading strategy which you need to know is…

When the 1st Lot hit the TP..

You would need to shift the SL of the 2nd Lot to ” BREAK-EVEN ” point. ( remember to add in the spreads too )

So that even if the price were to reverse and hit the SL….you would NOT lose !

But if the price continues to go in the desirable direction….

Your account would be growing happily and make you laughing to the bank .

This is exactly what happen to this trade for the 2nd Lot…

Here’s another screen-shot to help you understand better  :

( After all…a picture is worth more than a thousand words right ! )

Again….from the picture above.

You can see that after the ” BIG BULL FLAG “….

The price still continues to climb and climb…from the opening price 118.36 ( same as Lot 1 )

Upon seeing the ” 2nd BULL FLAG “…

It gives me another firm indication that I can still ” Hold On ” to this LONG position for further Pips ( Profits )..

After that….

The price took a break and range for a few hours forming a nice level ” Support “ ( you can see from the picture too )

When you have been trading for awhile using my price pattern analysis….

You would know that when a price forms a somehow ” level Support “…

It could get tricky with the direction…

Because it shows that the market is uncertain…

Uncertain means I have to get out pretty soon too…*Suspicious Grin*

So when I see that the price actually plunge down and broke that ” Level Support “…

I choose to exit the ” 2nd Lot ” at price of 123.35

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

2nd Lot closed at price of 123.35 ( about 499 Pips )

Total Pips Profits = USD $5163 +

Therefore the total of  ” 1st Lot + 2nd Lot ” = USD $7844 + ( like I mentioned at the start..)

If you notice the ” S/L ” in the screen-shot..

It has been shifted to the break-even point.

This is the trick for this method.

Because the main objective of the 2nd Lot is to ride “ FREELY & SAFELY” for Maximum Pips that the market can give you.

Even if the price do reverse and hit the Stop-Loss…

You and I have nothing to lose right !

However…..

Because we have 2 Lots here….

So if unluckily….we got hit right from the start…

It would mean we would lose 70 x 2 = 140 Pips for our SL.

But comparing the Risk/Reward once again :

Risk / Reward = 140 pips / 750 pips

That’s a ratio of at least 1: 5 !

Ask any trader: ” Is this a good ratio…”

And I dare say ……No-one ( in the right mind ) would disagree…keke.

Of cause…

In order to get this kind of  good Risk/Reward ratio…

The ” Ideal ” set-up must be there too..

Although this kind of set-up do not occur daily…

But from my own observations…

It does happen at least ” Once ” weekly….

( That’s provided ….you also can see WHAT I see…. )

Now ask yourself…

If this kind of price pattern occurs only ” Once ” every week….

And it means you only have to trade just ” Once “…

To capture those ” Massive Pips & Profits “…..is it nice for you ?

It is definitely nice for me I must confess.

Purely by using this powerful method across 2 currencies namely Eur/Jpy & Gbp/Jpy…

I have profited a total of Over USD $15,000 ( combined )

Plus other positions earlier this month…

It adds up to about USD $25,000 of nice profits added to my account for compounding this month.

( And the best thing is that….I DO NOT trade every single day none do I have to ” GLUE” to the computer screen !)

I am trading on a 1 hour, 4 hour and daily chart….so I do not have to check my positions often.

When I am out enjoying with my family, I would use either my laptop or smart phone to check my positions.

How nice rite ? *smile*…

Now that the USD$ is so STRONG vs. Singapore Dollars..

USD $25,000 would be about Sing $37,500 ( After conversion )

This is roughly the average amount I made monthly..

But I would normally withdraw a small portion of it for my expenses, family and own savings.

However….

Recently I have been eyeing the NEW NISSAN SKYLINE GTR35….

Do you know that car ?

It is a very awesome Japanese Performance Car..

Built and Born for the Track definitely..

Definitely a MEN’s Toy ! LOL…

If you do not know how ” beasty” this super fast car looks like..

Here’s a picture of this awesome car to share :

Yeah….

I am kinda attracted to this car ( I must admit I am a jap performance car freak )

The costs is about USD $200k in my country ( Singapore ).

Definitely worth the price tag ( if one can afford ) considering it is a “ Super Car “.

On the other hand..

Since the financial crisis hit the world so badly months back….

Everything is so CHEAP now…

Particularly the Stocks & Properties…

2 essential tools to help you and me build even more wealth..

I am contemplating whether to invest in a men’s toy such as GTR35..

Or start buying into these investments that would ” yield me better returns ” end of the day…

After all….cars ONLY depreciate…

But…..Sigh……still a BUT ….

Never mind…I shall see how’s my account ” growing status ” in the next 3 months.

Then I decide ….

Is that the correct way ?

( One more thing….my wife don’t really like me to waste my money on cars ( ESPECIALLY when there are already 2 Cars namely a ” Mitshibishi Evolution & One Bmw ) at home now ! And now I am getting a 3rd One ?  ….shhhhss…..hehe …hope she don’t read this blog anytime )

OK !

Let’s Switch Topic now….( Stop the Gtr35 thingy…else I would go non-stop !)

Back to forex trading..

In fact…I have been trading in such ” manner ” for years now.

And I only rely on mainly ” Price Actions & Patterns “.. ( not really into technical indicators anymore )

Because it is the most accurate ( at least to me )

** Price Actions & Patterns = Sentiment Of The Market.

Most important reason is that :

By using Price Actions & Patterns’ analysis for my trading..

Not only am I getting more successful trades..

I am also trading more confidently too..

And really enjoying almost every trade I took  - Which I think is very IMPORTANT for logical decision making.

When you are fearful or stress about trading….

You tend to make ILLOGICAL decisions and it is more of  like ” Gambling ” instead of trading for you.

That is definitely not a healthy or profitable way to trade I think…

Alright..

So much for this powerful forex trading strategy which I called it the ” Massive Pips  Riding ” method.

If you like my trading style based solely on ” Price Pattern “….

Then do feel free to visit my little blog on Forex Trading Empire to check out my posts regularly. ( Daily also can if you want…*smile* )

Till then…..

Happy trading, Happy HUNTING…..& EVEN MORE ” Explosive & Massive ” Pips for you too!