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 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 trend strategy’

Forex Trend Strategy – How You Can Determine The Forex Trend More Accurately !

” How You can determine the Forex Trend More Accurately ! “

As trader, You and me know that as long as we are on the ” right ” trend…we can ride on it and grab some nice Profits..

However…most traders ( not just beginners ) are still struggling with identifying the ” right ” TREND to trade most of the time..

It might seem as simple as these :

“…It is an Up-Trend now….I shall BUY ! ”

“…It is an Down-Trend now…I shall SELL ! “

” …It is Sideway now….I shall BUY when Price is at next Support!”

These 3 sentences indeed seem very Simple for anyone to understand…


Why is it that most traders are still struggling to even make ” Consistent ” Profits…week after week…month after month then?

Even till the extreme that due to their past ” failures ” …

They have developed a FEAR to enter into the market although the TREND is Obvious…

And as such….these traders would always end up ” Hesitating ” and having too many in-decisive thoughts before entering into a position..

What’s the ” Negative ” result of this FEAR ?

They would ” miss out ” on those good trading opportunities and when that happen…they feel ANGUISH & tend to want to enter the market ON IMPULSE….

With this….it started a very vicious trading cycle & mindset…and the consequence is normally NOT WORTH IT after all…

Recently one of my reader wrote in to me asking about this same problem about identifying a ” Trend ” in the forex market..

She wants to know is there any ” Simple & Safer ” way to determine the Forex Trend more accurately so that she can trade confidently without feeling so ” hesitant or fearful “….

Here’s the exact question from this lady to share with You :




” …Hey Aaron, I have been following your forex tips & newsletters all these while and I really learn a lot from these tips. This is especially so when it is coming from a trader’s real experience..

I have a problem that I have been facing and struggling to overcome but without much success so I thought of dropping you an email seeking for your advice or any solution you can provide.

Here’s my problem :

I am a day trader ( intra-day ) and mainly trade using the 15 mins & 30 mins time-frame…

The thing is that everytime when I see that it is an Up-trend with ” Higher Lows & Higher Highs ” confirmation…I will enter and BUY..

But the sad thing is that out of 10 times I did this…6 would ALWAYS turn against me and hit my Stop-Loss causing yet another losing trade….again and again.

I am very sure it is an Up-trend and even my technical indicators are also showing the Up-Trend signals too..

After so many ” failures ” encountered….I am now sort of feeling FEARFUL and really VERY Hesitant everytime I spotted a trend not knowing whether to enter or not…

Hence…this resulted in me ” Missing Out ” on many good trading opportunities..

Since you are now a full time trader, I am sure with your experience and forex trading knowledge, you can give me some good advice on this.

So is there any Simple & Safer way to determine a trend in the forex market accurately ?

I am rather sick of trapping in this problem …frankly…

Looking forward to hear from you.

Once again…thank you for the tips all these while. Much appreciated !

– Auntie Lim ( via email )




Hi Auntie Lim….thanks for contacting me with your questions..

You are really not alone as this is one of the most common problem most traders ( including intermediate ones ) face…

Even I myself also experience such frustrating problem in my earlier years of forex trading before I go full time…

It is part of learning I suppose…but at least you are willing to do ” something ” about this problem and move on for future success…

I can tell that you are serious and motivated to be successful with your forex trading after all….keep it up ! * smile *

Although you might be feeling very confused and kind of Lost now..

But I can confidently tell you that this is actually a very easy problem for you to overcome…

Firstly…you must not fully rely on the so called ” Textbook technical indicators ” to gauge the trend anymore if you want to overcome this…

That’s because technical indicators are always Lagging BEHIND the current Price and the Patterns formed

When You rely on these lagging indicators…you also enter into a trend later too…..which is definitely disadvantage to you.

I am very sure when the trend already started….the technical indicators would not show you the entry signal until after sometime….

And that’s lagging

That probably explains why ” when ” you are right about the trend but because these indicators are lagging…you enter late and the market turn against you soon after…

In order for you to determine a trend more accurately…I have another 3 steps method for you too….very easy to use and proven to work.


3-Steps method to gauge the ” Right” Trend the SAFER Way :

1)  You need to look at the DAILY time-frame for the ” Big Picture ” that’s happening CURRENTLY in the forex market now..

And if it is a Up-Trend now with the previous 2 candles’ closed also Bullish….then there’s a ” High Probability ” that it would be good to trade Up-Trend for the day!

Upon checking the ” over-all ” trend on the DAILY time frame, if it is also an Up-Trend ( this you can use moving averages to help you confirm )…then the Up-Trend ” Probability ” would be even

2)   Next….You need to switch to the 4 Hour time-frame to see is it an Up-Trend too…

If it is also an Up-trend…then the Probability is really High..

3)  Do the same for the 1 Hour time-frame…

And if it is ALSO Up-Trend…then you can be sure that the Probability is INDEED High!

This would boost Your Confidence significantly too as all the time-frames are showing the same direction….

So to enter into a BUY trade….open a position ONLY if it offers GOOD Reward/Risk ratio… ( very important ! )

Here’s why :

You might be ” right ” about the trend direction but if there’s a SPIKE ( long shadow….fake movement ) and hit your Stop-Loss causing you a losing trade…

But only to see the trend resume again after that..

You can ” re-enter ” again and since You are entering with a GOOD Reward/Risk ratio…..

You will WIN end of the day ! * coolz *

Since you are trading on the 15 mins and 30 mins time frame…

Then it is good that you follow the 3 -steps method to determine the ” big picture “…

This allows you to see the trend more clearly whereas in a smaller time frame….it is not accurate

If the 3 time frames are NOT Inline….then maybe you can choose to stand aside and watch …


You can go and scan other currency pairs which are INLINE as there are just so many pairs for you to choose from !

Hope you are getting the whole idea now…

Lastly… remember what I told you about technical indicators…they are simple Lagging and not accurate..

Use Price action strategies instead and you will be glad thatyou did just like I do…


Trading Forex and winning ” Consistently ” is indeed not hard after all I must say…

You might be thinking that because I am trading full time now and so I can confidently say this…

But do remember that I was ” once in YOUR position ” too…

Feeling LOSE and FRUSTRATED while trying to figure out how to really make ” Consistent Profits ” every month…

And one thing for sure is that as long as you have some proven trading strategies to follow…

Combined with the ” right ” trading psychology….

You can literally start with an account size with relatively small capital and build it into a rather
” BIG ” one in no time…

That’s because forex is a leverage tool…and it is VERY POWERFUL….if You know how to trade profitably.

If you are still not getting satisfactory results ( profits ) from Your current forex trading strategies….

Or even struggling to break-even every single month…

Then it is really time You treat this entire forex thingy seriously if You really want to succeed with it..

Learning Price Action Forex Strategies indeed give me tremendous trading success…and help me to grow my account exponentially..

And if you are still NOT using Price Action yet….

You’re indeed leaving a lot of profits on the table

Why not check out the Top 3 Price Action Forex Resources that I have reviewed and also made 30+ readers saying a big ” Thank You ” to me for recommending them here :


( You gonna love these strategies especially the #1 choice ! )

To Your FOREX Success,

Aaron Tan ( your trading friend )

Forex Trending Strategy – Riding The Major Trend Strategy On AudUsd

When a currency pair is trending strongly…

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

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

That explains why the old saying still hold true :

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

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


Here’s why :

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

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


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

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

Are You also facing such problem ?

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

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

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

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

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

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

…and profited a nice 289 pips.

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


Let’s dive in to the main strategy now :

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

1)  RBA ” positive ” Interest Rates Decision

– Consensus : 3.00%

– Actual :  3.25%

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

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

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

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

Forex Trend Strategy For AudUsd

Forex Trend Strategy For AudUsd

Now…..consider this :

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

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

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

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

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

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

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

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


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

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

Forex Trend Strategy For AudUsd

Forex Trend Strategy For AudUsd

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

Resistance Turn Support theory….( Yellow Line Below )

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

I then enter BUY orders with 2 Lots at Price 0.89305

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

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

( giving some allowance below the previous swing low )

Forex Trend Strategy For AudUsd

Forex Trend Strategy For AudUsd

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

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

Keep the profits in my pocket first……

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

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

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

Forex Trend Strategy

Forex Trend Strategy

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

Which netted me Usd $624.13

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

( click to enlarge)

Audusd Forex Trend Strategy Earnings

Audusd Forex Trend Strategy Earnings

Having exited the 1st lot ….

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

This is not common to most traders am sure..

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

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

Forex Trend Strategy For AudUsd

Forex Trend Strategy For AudUsd

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

Which profited a total of about 227 Pips .

This netted me about Usd $2298.51

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

( click to enlarge )

Audusd trend strategy earnings

Audusd trend strategy earnings

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

It’s time for me to conclude now …

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

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

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

Agree ?

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

Is it good ?

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

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

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

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

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

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

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

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

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

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

As they give too much noise from the market….

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

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

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

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

Happy reading & Thanks for reading this far !

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