Four Sure Ways of Trading Forex Sideways

Hello and welcome to another edition of the bulls vs the bears. Today we are going to learn four sure ways of trading forex sideways. Now I can hear someone pulling his hair out saying” This guy is giving us mental whiplash today.” Don’t sweat this one. This is my own short hand way of showing you four tips for trading sideway markets. Let’s face it guys, you are not always going to enjoy sustained trends on the forex marjet- be it uptrend or downtrend. There comes a time when the markets are moving sideways. In other words, they are neither trending upwards nor downwards. This is where rookie traders fall victim to these skittish patterns. They end up up losing all their profits to these whiplash setups and then turn around and curse the market for their losses.

However, there is an interesting twist to this tale. Not all sideways markets are as crazy as you think. Some can be traded while others you just leave them alone if you value your sanity. Hopefully by the end of today’s lesson you would have acquired valuable knowledge as to how to make critical decisions when the market switches from a strong trending pattern to to a swerving whiplash situation. So Onward

First Tip

Is The Market Worh Trading Or Not?

The first question you need to ask yourself is “Is the market worth trading or not? If the market is not swinging between defined support and resistance areas, with good distance between both levels, don don’t even think about putting in a trade. Your account will become barbecued chicken.

I can hear someone asking”Well how do I know whether a market is worth trading or not?” Well you can start by zooming in on the daily chart frame. Now the question you need to ask yourself when looking at the daily chart frame is ” IS the market trending up or down?” If it’s not doing either, the market is moving sideways. Let me show show what sideway markets that are range-bound look like

Ladies and gentlemen this is what a range-bound looks like. See the distance between the support and the resistance levels of the range. Even more important these levels are well defined. This gives you the trader something to work with when looking for solid price signals and great risk/reward potential. You do all this hoping that price will move to the other end of the range, or at least inch closer to it.

If The Waters Are Choppy Dont Trade

It’s simple advice . Isn’t it? If the waters on the forex market are choppy don;t bother trading. Because if you take a dip in those waters the sharks will eat you up. Somebody is scratching his head wondering”What;s a choppy market?” Well a choppy market is one that consolidates so tightly. In fact it consolidates so tightly it’s as if a noose is hanging around the neck of the major traders. When you see a market like that it’s not worth risking your market in because the distance between reversals is not big enough to allow for a risk/reward ratio.

The next question I hear somebody asking is “How Do I know if the market is choppy?” Like I indicated earlier zoom in the daily chart frame. With lots of practice and experience, you should be able to tell whether the market is range-bound or shark -infested(choppy). Let’s take a good look at a good example of of a shark-infested choppy market

See how choppy and tight the price action is in the area with the sloping blue line. Any time you see setup like this, it can only mean one thing. The sharks are around looking for prey to devour. Put in a trade and you could become shark bait.

If you ask me you’d be better off staying away from shark infested markets. Because markets normally consolidate after long sustained trends. The big players are basically saying” We are tired. We need a break.” So when you put in a trade during consolidation, you risk blowing a crater in your trading account. The most painful part is you are giving away hard earned profits that you made from previous trades Let me show you exactly what I’m talking about using the GBP USD pair

See the the choppy price action all over the charts All over the charts you see a period of strong trends followed by choppy price action so tight you could catch a hernia. Even more important there distance between the key levels is very small. So if you dare put in a trade entry in this setup you are toast.

Trading in this scenario is like gambling in Las Vegas. Because the market crawls like a tortoise in this setup you’ll end up chewing in your finger nails and wondering to yourself “Is this going to be a move or a breakout?” Next thing you know the sharks eat you up and the market sucks you out of your position. S word to the wise is more than enough.

I guess the question burning everybody’s mind is:

What Do I Do When I See A Sideways Market Worth Trading?

Just like any other market look out for price signals at the support and key levels of the ranges. The best way to go about is by applying the false break strategy. When you wait for the false break to take shape out of the trading range you increase your chances of making a decent profit. Every trading range has at least one false break in its tank. And these false breaks trigger humonogus moves in the opposite direction back towards the other end of the range.

However false breaks can blow holes in your trading account, If you get your timing all wrong you could be in for a long day on the markets. But the most important thing to remember is that false breaks present great trading opportunities. You just need to be as sharp as a marksman

Dont bother following the herd when looking for false break opportunites. You may end up being sucked out of your trading position and lose a ton of money. When a breakout is legit, price closes outside the range for several days. It will then return to take another crack at the level that ot broke out of. And if the key level survives the retest, then it is a safe bet that the breakout was for real. But please don’t predict the possibility of breakouts as some traders are so fond of doing. This aint the lottery. Instead sit still and wait for the false break to take shape and then jump in like a lion hunting an antelope. Let’s take a look at an illustration below

Falsey 4

Here we have an obvious pin bar sell signal at the key support resistance level. Of course this signal triggered a huge slalom surge by the bears. And you know what means? Lots of moola along the trend The trend of course fades out with choppy price action taken over..

The same situation occurs along the line of support. Again a pin bat price signal triggers a huge surge upward surge for the hills by the bulls. And again it’s an opportunity to pick up profits along the way. Unlike the bears, the bulls don’t run out of breath that fast.

Last but not least

Don’t Blow Up Your Trading Account

It’s as simple as that. Isn’t it? If the opportunities to make a trade arent visible, stay put. Or else your account will go up in flamess. If the waters are choppy and not in range mode, keep your money and go for a walk. You would be better off getting some air rather than overtrading because you can resist the urge to stare at your screen all day.

If your favorite pair is in choppy waters check some other charts so if you can find a strong trend or a good trading range. Otherwise don’t force the trade as my friend and fellow trader Hunter Ripple once said. If there is no trade then there is no trade

That’s s wrap for “Four Sure Ways of Trading Forex Sideways.” Hopefully you ;ve learnt a thing or two about trading forex sideway markets. Forex markets don’t trend all the time. At some point they go ijnto consolidation. And when that happens dont bother trading. But when you do decide to trade a market that is skidding sideways, make sure that all the conditions are present for you to trade. Or else your your trading account will be upset with you.

Til next time take care.

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That’s s a wrap for “Trade Against The Trend…And Your Trading Account Becomes A Black Hole.” I hope you now understand that trading against the trend can be dangerous to your trading account, not to mention your health. When you trade on both sides of the trend you give back all your hard-earned profits like you are giving away confetti.

So What should be your New Year’s Resolution? Follow the dominant trend and avoid the countertrend like the plague. Your trading account will be the happier for that if you follow the direction of the trend.

Til next time take care.

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If you

Trade Against The Trend…And Your Trading Account Becomes A Black Hole

Hello and welcome to another edition of the bulls vs the bears. Today I have another poignant message for you. Trade against the trend and your trading account becomes a black hole. This is not a joke. This serious. You absolutely do not want to turn into a gambler and hope against hope that somehow you fan make a profit going anti-clockwise. Your trading account will absolutely feel like your skull if you try that.

Look why do you want to trade against the trend when the trend is showing you the money? You will be absolutely nuts trying to go against the grain. I know it’s human nature to explore the unknown sometimes. But this is not Russian Roullete. This is Forex Trading. And forex trading is a business. And the best way to profit as a trader is to go with the trend. If you are a rookie trader listening in on this post, read my lips”DO NOT GO AGAINST THE TREND!” Just take the path of least resistance. As the popular saying goes,”The trend is your friend.” So don’t act as if the trend is your enemy

So we are going to take a look at a few examples of how you can make money trading the trend and how you could bleed money trading against the trend.

First up is

An Obvious Bearish Trend using GBPUSD pair

Let’s take close look at the bearish trend around 25th August on the left side of the trend, It’s pretty obvious that the bearish trend is the winner here. It’s basically screaming trade me. Look at the bearish trade signal at the top of the trend. I mean how can you go against the trend?

Let me let you in on a little secret. When traders trade trends, they move in the same direction. I can hear hear somebody asking “Why is that so?” Well it’s the least course of resistance. You follow the path that is most travelled. The last thing you want to do is go against the grain and blow up your account.

When a market trends it makes a titanic move in the direction of the market. But then it pulls back to its most recent average price(Look up We are moving Averages Parts I and II). With that in mind, you trade from value since trends tend to resume at the point of value. You then look for price action opportunities that are backed by a confluence of trend and the average price behind them.

Now let’s take a look at an illustration of the dangers of trading against the trend using the same GBPUSD

This image has an empty alt attribute; its file name is image-4.png

Take a close look at all the countertrades against both trends on the screen. There is absolutely no way you are going to make any money going against the grain Take a look at all those failed countertrend inside bar setups. It’s like trying to get in the way of a moving train when you try to trade against a stromg trend.

Don’t get so caught up in trying to trade against a strong trend that you put your account in harm’s way. You will definitely blow a huge crater in your trading account if you try to get in the way of a strong trend.

Now let’s take a close look at a clear trend using the USDCAD pair.

Here we see a nice strong uptrend glued to the channel on our right under the month of October. Not only do we see strong a trend direction, but we also see a value area that we can enter to a trade as far as price is concerned. This value area runs parallel with the strength of the uptrend.

See the numerous price action buying opportunies that the pin bars and inside bars present on this uptrend. It is pretty obvious the uptrend is the least course of resistance. Why would you want to against that? So looking for buy signals on this trend is the obvious choice, not trading bears on the downside.

Committing Suicide Trading Countertrend

However you’d be committing suicide if you so much as consider looking for a counter-trend signal on this chart. You see the the two long-tailed pin bars bearish pin bars? Even these two would have incurred for you a huge loss. The least you’d gain from these two is breakeven, at best. So when you see a strong trend, don’t fight it. Embrace it.

Next up is an

Obvious Downtrend Featuring the USDJPY pair

Take a look athe downtrend between 20th November and 4th December 2020. It’s pretty obvious isn’t it? You’d be crazy to go against that. So in this situation you’d be looking fo price action sell signals retraces back to the resistance level so you can trade parallel to the downtrend. Notice the pin bar signals forming following retraces within this falling market. This setup triggered this huge downward surge

Countertrend Pin Bars

Now take a look at the same chart and zoom in on the countertrend pin bars. You can see they have failed miserably. Anybody in his right mind will not even dare trading such lost causes. It makes no sense chasing bad money with good money. Try pursuing them and the only return you’d get is a huge hole in your trading account.

That’s s a wrap for “Trade Against The Trend…And Your Trading Account Becomes A Black Hole.” I hope you now understand that trading against the trend can be dangerous to your trading account, not to mention your health. When you trade on both sides of the trend you give back all your hard-earned profits like you are giving away confetti.

So What should be your New Year’s Resolution? Follow the dominant trend and avoid the countertrend like the plague. Your trading account will be the happier for that if you follow the direction of the trend.

Til next time take care.

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Three Perfect Tips You Can Use To Profit From Trading Inside Bars

Hello and welcome to another edition of the bulls vs the bears. Last time I showed you A Complete Breakdown of the Inside Bar and How to Trade it. Today we are going to learn about three perfect tips you can use to profit from trading inside bars. I’m sure you guys really enjoyed the breakdown on inside bars last time. Trading Inside Bars can be fun if you know understand how they function of course. Unfortunately too many traders do not under understand how inside bars work ,and consequently they end up bleeding money to the point where they pull out their hair in frustration. It doesn’t have to always be that way when you are trading the inside bar.

Let me let you in on a little secret. There is a very subtle side to to the inside bar. Knowing these subtle differences could be the difference between forex prosperity and forex poverty. I’m not saying that every inside bar trade is a guaranteed winner. But once you figure the nuances of trading the inside bar you put yourself in great posiion to make humongous profits. I’m not saying every trade is a sure bet. So long as you put yourself in the best position to make profits

So without further ado, let’s jump into the three perfect tips you can use to trade the Inside Bar.

First up is

Trade Inside Bars On Daily Chart Frame ONLY

When I first started trading I heard so much about the daily time frame. I was like “What’s the fuss about the Daily time frame? The one hour and four hour time frames is where it’s at.” Unfortunately for me I was losing so much money on the 1 hour and 4 hour time time frames it was ridiculous. So I said to myself” Let me try the daily time frame and see how it goes.” I’ve never looked back since. The daily chart frame is the only chart frame I trade on these days,

You see the daily chart frame is the strongest time frame you of all the time frames for inside bars. Let me show you a few reasons why I say so.

1.An inside bar on the daily time frame alerts you of possible time frames and that you need to be ready for a potential break out. An inside bar takes up more significance on a daily chart frame than on a lower frame, It cuts out all the sideways and choppy movements that you get on the 4 hour and 1 hour time frames. Rather you have one inside bar pattern or inside day pattern.

2. There are two many faulty inside bars on the lower time frames. Consequently they trigger false breaks you do not want to jump, especially if you are a rookie trader. Even worse they are of no value to you as a trader, which will cost you barrels of cash, not to mention peace of mind.

In alerting you of possible consolidation on the lower frames, the daily time frame saves you valuable cash and utter misery.

Avoid Multiple Inside Bars on Lower Time Frames

You have a huge cluster of inside bars on the lower time frames. Consequently you endp falling victim to the dreaded false break. This makes it doubly hard to trade inside bars on time frames because they are insignificant and they costing you valuable profits and time. You’d be better off spending all that time focusing on the daily time frame. Now let’s look at an illustrations of differences in trading inside bars on the 1 hour and daily chart frames

This is what the the 1 hr time frame looks like. Now who will want trade such a choppy mess? For starters it’s tough making any meaningful analysis of this mess. Not to mention the fact that you have so many failed inside bars staring you in the face. There is no way you can trade all of them. Come to think of it, trade them and see whether your trading account will not blow up in your face. Now let’s take a look at a daily chart

As you can see the price action on the daily is clean. You don’t have to scratch your head making trading decisions over choppy price action. You should be able to make your decisions and reign in your profits with ease with such a smooth pattern staring you in the face.

Last but not least is

Trade Inside Bars Bars With Daily Chart Trend

Not only should you trade inside bars on the daily chart. But you should trade daily inside bars with the daily chart trend. It’s the right thing to do. However, if you are harboring any crazy intentions of trading against the trend. DON’T EVEN TRY! You will blow a huge hole in your trading account if you do. I’m not saying it can’t be done. But unless you’ve ve been trading for ten years or more, You’d be better of trading inside bars with the daily chart trend. You should ONLY trade against the trend using key chart levels.

Inside bars are best traded as continuation patterns on the daily chart. Think of inside bars as breakout moves which provide great risk reward potential for getting on board trend markets after a brief period of consolidation. Let’s take a look at inside bars in daily trend using USDJPY.

Ladies and gentlemen here is a layout of inside bars in a daily trend. Take a close look at inside bars in bow\bearish and bullish trends. Inside bars work great in trending markets because they are continuation patterns. You don’t need to stress out analysing these patterns. The data is screaming “TRADE ME” at you. And when it does yell at you, you only need to oblige.

And last but not least:

Don’t Strangle Your Trade With a Tight Stop Loss

There is this this school of thought going around sayingyou place your stop loss just below or above the mother bar, high or low of an inside bar.”Well I’ve got some bad news for you. It doesn’t always work that way. Sometimes you ran the risk of strangling your trade with such a tight stop loss. You place your stop losses in places where they stand the best chance of not being whacked by sharp fluctuations in price.

I can hear somebody asking”Well, where is the best place to place a stop loss?” Well make sure your stop loss is further away from any key levels. This might mean you reducing your position size to accommodate a wider stop loss distance. Let’s take a look at an illustration using the EURUSD.

As you can see the theme of continuation is written all over this chart be it downtrend or uptrend. The breakout plays create risk reward opportunities if you play your cards right. Once the trend resumes after a brief pause your trade will be riding like a socket and racking up profits as well.

That’s s wrap for “Three Perfect Tips You Can Use To Profit From Trading Inside Bars”

Til next time take care.

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A Complete Breakdown of Inside Bar and How To Trade It

Hello and welcome to another edition of the bulls vs the bears. A while back I did a post on Trading The Inside Bar With Gusto. Today I am going to do a complete breakdown of the inside bar and how to trade it. Being the nice guy I thought to myself”Hmmm..How about doing breaking the inside bar down for those who are still struggling trying to trade the the insidd bar?” So basically we will be doing an introductory lesson on trading Inside Bar signals in terms of what it is, its anatomy, and how to trade the signals.

For those of you who are fairly new to the inside bar it’s fairly straight forward. It just shows a pause among among the major players as they try to contemplate their next move. Even more important the inside bar clues you in as to the next move of the major players. Think of the inside bar as another tool in your mastery of your trading strategy. And when you do master the inside bar it will most certainly help you prosper as a forex trader.

I guess the question burning on everybody’s mind is

What Is An Inside Bar?

Well an inside bar is a a pattern consisting of two components called the mother bar and the inside bar respectively. Of course the first bar in the pattern is the mother bar followed by the inside bar. It reminds me of a hen protecting its chicks . Now let’s see what the inside bar looks like in real life.

Ladies and gentlemen this is what the inside bar pattern looks like. Now as you can see the inside bars form in the middle of the mother bars or close to either the high or low of the trend . This pattern takes shape in both the bullish and the bearish trends. It doesnt really matter how these bars look so long as they are within high to low distance of the mother bar.

Now that we have gotten the definition out of the way let’s look at

Four Variations of The Inside Bar.

The first variation we are going to look at is

Double Inside Bar

The double inside bar consists of two bars within the mother bar. Sometimes you can sopt as many as thr33 to four inside bars within the same inside bar layout. when you see this many bars that tells you that the players are struggling to decide what their next move will be. The good news is these bars appear before the powerful trend moves take place. so just hang tight and wait for those moves to unbfold. Then you make your entry.

Next up is

Coiling Inside Bars

Coiling inside bars take shape when two or more inside bars are coiled up within one another. Picture a bicycle spring and how tight it looks. That’s what coiling inside springs look like. They coil up very tight like a spring. When this pattern develops it suggests the market is suffering from contraction. After a while the market will uncoil and burst into a powerful trend surge. Keep your eyes open for these surges as they present great profit opportunities

Next up is

Fakey Inside Bar Pattern

The fakey pattern is what you call an inside bar false break. It’s a false breakout from in inside bar pattern in that an doing a sharp reversal and going back the opposite directions. Rookie traders are the biggest,,casualties in this charade as they are tricked into believing a huge move is about to break. Of course they end up making the wronf move which will end in tears for a lot of them. Then again these false breaks drop valuable clues as to the next move of the markets

Last but not least is

Inside Bar/Pin Bar Combo

The Inside bar – pin bar combo is pretty much self explanatory. It’s a combination of an inside bar and a pin bar. Here you have an inside bar with pin bar showcasing its classic tail/shadow. Now as some of you may well know, the pin bar’s tail/shadow is tells us which direction the market is turning to next. Thus the inside bar doesnt just take a break. It comes with confluence as well. In others it’s equipped with other price factors. This makes it a very humongous price signal.

That’s it with the variations of the inside Bar. The next burning question on everybody’s mind is

How Do I trade Inside Bar Patterns?

You can trade Inside Bar Patterns two ways -either as a continuation signal or as a reversal signal. Now you an trade these patterns as continuation signals in the daily chart or as a reversal signal at key support and resistance levels. The best way to get the most out of inside bars on continuation levels is trading them on the daily charts. Someone is probably wondering”Why the daily charts?” Well, it’s fairly easier. Unlike the the other time frames you get less noise. Everything is crystal clear on the daily chart. Let’s take a look at a few examples shall we?

First

Trading Inside Bars as Continuation Patterns

Insider bar 2 education

As I said The most profitable way of trading an Inside bar is within a trending market or continuation move.

It’s much easier to trade and the trend is so clear that the odds can only be in your favour and nothing else. Often times the inside bar results into a breakout or continuation pattern depending on the current trend at the time. And when that pattern unfolds, it can only mean one thing – PROFITS!

Last but not least is:

Trading Inside Bars As Reversal Patterns

Insider bar 3 candlestick

The graphic above is a classic example of a solid inside bar reversal. An inside bar forms at the level of resistance, suggesting a period of indecision among the major players. Obviously they are scared of moving any higher. However, see the bears take over in explosive fashion as they head downwards on the back of a price breakdown past the inside bar’s mother bar low. With that being said, it’s time to ring in the profits.

That’s s wrap for “A Complete Breakdown of Inside Bar and How To Trade It.” Hopefully you ar inspired and rearing to apply your knowledge you have gained about trading the inside bar. Next week we will learn how not to trade the inside bar.

Til next time take care.

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Trading Breakouts Can Be Fun.But..They Can Also Ruin Your Trades

Hello and welcome to another edition of the bulls vs the bears. Today my message to you is this:Breakouts can be fun, But they can also ruin your trades. By that I mean trading breakouts can cause you to lose your trades. IF you are rookie trader, trade breakouts at your own peril. It is very tempting to get sucked in to trading on new lows(downtrend) and trading on new highs(uptrend) . Noq I’m not saying do not trade breakouts. Breakouts do possess great profit potential. Except that if you follow the herd, you will get gulped up by the market.

Sure it’s okay to trade with momentum. You may say to yourself”This trend is very hot. Let’s jump on the bandwagon here. Newsflash! Breakouts can force you into a whiplash it will make your head spin. Instead just wait for the market to pull back to the support/resistance area where you get more price signals lined up. There are some trades that make say”Hmmm..This trade has a million dollars written all over it. Then you jump in as if you just won the lottery only for the market to do a 360 on you. You are then looking like a deer caught in the headlights wondering”What happened here?” Well the market is unforgiven towwards rookies. So you need to contemplate carefully before you jump in.

So today I’m going to show you some real life examples of trades that can suck you in only for the market to whiplash into the opposite direction. You could lose your entire account on such trades. Sure it’s hard to ascertain where such mouse traps spring from spring from. But at least you can learn from the carnage these traps create and not repeat these mistakes again.

First Pic Please

This is a classic example of a failed breakout/false break at the key level via the GBPUSD pair. Just see how the bears break through the key support during the downtrend only for price to do a 360 and make an upward push. of course those overcome by greed are left standing there holding the bag with their tails between their legs.

Pic No 2

This is another example of a failed breakout attempt by the bears inside the channel vis the EURUSD pair. Basically price takes a plunge and recovers as illustrated by trendlines connecting September 1st and 21st highs and September 8 and September 25th lows. The bears anticipated slalom breakout fizzled out with the doji at the tip of the channel

This is the type of breakout that easily sucks in rookie traders who like to follow the herd. Once they get stumped, the pros turn in and whiplash price in the opposite direction. That of course will leave a black hole in your trading account every time.

Pic No 3

Here we see a clear false break above a key resistance level in the GBPUSD pair. Initially the bulls mount a strong push only to be repelled by the bears. Of course this causes price to create a sharp reversal. This strips so many amateur traders out there-especially those to looking to cash in early.

So now that we have ascertained how risky trading breakouts can be, The burning question on everybody’s mind is

What’s The Alternative To Trading Breakouts?

Well rumor has it that the best alternative to trading breakouts is retracements or pullbacks. This is where price temporarily drags back after a sustained trend period. It usually occurs at key levels and it is at this juncture where you find multiple opportunities for price entries.

Let’s take a look at a few examples

Pic 1

GBPUSD-Moving-Average-Trend-Identification-Uptrend

Here we see a classic example of a pull back in action visavis the GBPUSD pair with the help of moving averages. Notice the way the 13 day EMA line(Red Line) crosses the 21 day EMA(Green Line). This suggests a pull back, and,even more important, it suggests a price signal. Also it’s happening on the daily chart frame where you have a much higher higher chance of making making a solid profit. Plus, you don’t have to worry about false breakouts in this setup. It’s as clear as day.

Let’s look at another pullback example

GBPUSD-Moving-Average-Trend-Identification-Downtrend

Here we see another example of a pullback but this time in the downtrend. See the way the Red EMA crossed the green EMA. This signals another pullback, which of course means a signal to make your entry. Once Red EMA croses Green EMA it means the pullback has ended and that the downtrend has resumed. Pullbacks make for very valuable high probability setups. You’d do well to make that part of your trading plan.

Now let’s look at a pullback situation where the trend has confluence

Price-Action-Enter-Market.-pullpack-trading

Here we get confirmation that the downward trend has begun. Not only that but you have multiple signals along the key level . This phenomenon is popularly known as the power of confluence. The downward trend is confirmed by the moving average crossover and the sloping trend line. Initially price suffers a humiliating rejection at the 1.5750 level. In this setup just put on your hunter’s hat and wait for the bearish pin par to appear. This then confirms that the bears shift is over. You then make your entry when price dips just below the tips of the pin bar. This should bring you decent profits with little or no risk.

You see the power of confluence in this chart? With these multiple factors your odds of winning a trade increase by a hundred fold. By using a combination of a solid trend, support and resistance , and price action bars, You cut down risk and increase the probability of achieving huge profits.

If you want to know how moving averages work, look up We are Moving Averages Part I and Part II

That’s s wrap for “Trading Breakouts Can Be Fun. But..They Can Also Ruin Your Trades.” Breakouts can lead you into a ditch especially if you follow the herd blindly. Now I’m not saying you shouldn’t trade breakouts. I’d be the last person to ruin your fun. But you do need to tread with care when trading breakouts. Failure to do the right checks and you risk being eating alive by these breakouts.

Sure it’s only natural that you want to put in a trade because you strongly believe that the market is moving in the direction you want to trade in. However, you need a trading plan that allows you to take advantage of these breakouts instead of you being swallowed by these breakouts.

Til next time take care.

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Wanna Get More Out of Trading Daily? Chart Frame…Try End Of Day Trades

Hello and welcome to another edition of the bulls vs the bears. Today my message is simple. If you want to get more out of trading the daily chart chart frame, try placing your trades at the end of the day. Your focus will be on closed candles not open ones.

Now I can hear somebody asking”How IS Trading At The End of The Day Going to Help Me?” It will definitely take your trading to another level. And it makes the trading process simple and straightforward. End of day trades accomplishes this feat several ways. First it cuts down your trading time which translates into a positive mindset. With this mindset you don’t need to stare at the screen all daya- a major addiction of a lot of traders. When you stare at the screen all day , you overthink , which makes you over-analyze and which eventually sends your money down the abyss.

Even more important end of day trading helps you with money management via the set and forget approach. With a solid money management plan you dont need to scratch your hair over your trades. Set your trades and get out of the way.

So what are we going to do? We are going to learn how to trade end of day session And how we are going to do this? By utilizing popular trading patterns that we have looked at before. We are going to look at how you can employ these patterns at the end of the day.

First up is

Inside Bar Pattern

The first pattern we are going to look at the inside bar pattern

bullish inside bars

This pattern looks perfect for an end of day trade. Doesn’t it? All you have to do is place your entry, take profit, and stop loss. And the market will do the rest. Just set and forget and go on vacation. By the time you get back you should see a handsome profit in your trading account.

Do you know what you just did. You solved the most difficult aspect of forex trading – trade management. Even more important, you took the emotions out of the process – a trade killer if you ask me.

Now let’s t look take another example of the inside bar using the GBPUSD pair

pinbar6

First thing we see here is the dreaded range that most traders don’t really care about. However, see the back-to back pin buy signals at the level of support. This is what you call confluence where you have multiple signals popping at the same time. This is perfect for an end of day trade.

With this trade you could make three times your risk. As I indicated earlier, just step away from your screen and let the market rack up the profits for you and out them on your bank account. This will open happen if you don’t over-think your trades, and you are not in a hurry to jump into the market.

And Finally

Fakey Pattern

Let’s look at another end of day trading example using the fakey pattern via the GBPUSD pair.

fakeywithpinbartrend

Here we see a fakey/pin bar combo forming in-line at the uptrend in the daily chart frame.. Place your take profit at the breakout of the inside bar or at the high of the pin bar and stop loss below the low of the mother bar. Do that and you make yourself a handsome profit.

The only hitch here is you have to wait ten days for this pattern to form. Sorry folks that;s the way the daily chart frame works. You need sit tight and watch things unfold.

That’s  a wrap for ”Wanna Get More Out of Trading Daily Chart Frame…Try End Of Day Trades. ” End of day trades will definitely do wonders for your forex trading account. But please don’t get the impression that end of day trades are a walk in the park. They are not. However, you’d be a whole better off trading end of day than spending your whole day searching for 15 minute scalps on the market. Who does that?

In utilizing end of day trades, you vanquish the small voice torturing you into taking those 15 minute scalps. You only take what the market offers you, depending on your trading edge of course. Even more important end of day trading teaches you self control. You don’t feel the urge to jump into the market just for the fun of it. I trade using the engulfed pattern. If it is not evident on the screen I don’t trade–Simple as that.

Take care til next time

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How To Profit From Trading Key Chart Levels

Hello and welcome to another edition of the bulls vs the bears. Today we are going to look at how to profit from trading key chart levels. Obviously when I say key chart levels I’m referring to support and resistance.

We are going to look at how to trade the price action occuring around the key chart levels. As you well know key chart levels show up in different scenarios. We will use these key chart levels together with basic price action strategies to create a high probability trading strategy.

First off:

How Do I Trade Support and Resistance in Trending Markets?

Trading the dominant trend is the most popular technique that traders like my self use to trade the markets. Any trader worth his salt will dedicate as much time to trend analysis and stick to simple price action strategies when trading the market that is trending. You look for price action signals forming near levels of support , a consequence of the ebb and flow of the market.

Let’s take a look at the graphic below

Forex Support and Resistance | Support holds at 1.4700

Here we see 4 months of price action data Notice how the key of support has been drawn. also look at how the various price action strategies have been set up via the inside bar pin bar, and fakey setups. You don’t need to use any fancy robots-just pure price action.

If you want to freshen up on trending markets look up Trade Trend with Price Action Analysis as the Weapon of Choice

Next up is:

How Do I Trade Support and Resistance in Range-Bound Markets?

Unfortunate markets don’t trend all the time. And when that happens go in consolidation. This means that the big players are taking a breather planning their next move. This is manifested in the manner the market move sideways. and when the market move sideways, it means the market is range-bound. Let’s look at a range bound market through the eyes of the USD/CHF pair.

Range-Breakout-Trading-Example

Here we see the USD/CHF pair from 23RD January to August 1. Notice the period of consolidation from May to September. Two things happen in this pic. First a long-tailed pin bar formed showing a strong rejection inside of the range. Next we see a break of the pin bar which, of course sparks an upward break by the bears.

Be careful with trading ranges though. Ranges can be very unpredictable. If you don’t play your cards right you risk blowing a hole in your trading account. But if you keep a close look at the peripheries , you could catch some serious price signals at the key levels of support or resistance of the range.

If you want to know more about trading ranges, look up Forex Market Goes Sideways

Next up is:

How Do I Trade From Swing Points In Trending Markets?

In case some of you don’t know by now swing points are the highs and lows formed by the market. Look out for these as they make for great support and resistance. The good thing about swing points is that they dont require mutiple rejections of price to be considered a bona fide support or resistance level. Instead, the swing in the opposite direction is enough to create a key support or resistance level.

When you see price getting price etching towards a swing point , look out for possible price action setups around that point. Let me you in on two secrets. First a swing high acts as support in an uptrend while a swing low as resistance in a low trend. Let’s look at the illustration below.

GBPJPY-Daily chart lower

Right in front of us is an illstration of swing points using the GBPJPY pair. Here we see price finding support around 17 July. This swing point is absolutely crucial as we see price action swirling around it at both support and resistance levels.

If you want to know more about swing points look up Let’s Do A Little Swing Trading

Next up is:

How Do I Trade Dynamic Support and Resistance in Trending Markets?

For those of you who don’t know dynamic support and resistance leves are levels where the market finds support without having to be at a horizontal support or resistance. I alway price changes at the speed of light at tehse levels because of the evolving nature of the market.

The best way to trend dynamic asupport and resistance levels in trending markets is exponential averages (EMA’sfor short). It’s the best method for analyzing and identifying dynamic support and resistance levels.

Why? Because they do a great job of catching crazy momentum switches in price action, while at the same time keeping an eye on long term price movements. Let’s take a good look at the 1 hr chart using the 20 EMA via the EURUSD pair

dynamic support and resistance forex market 2ndskiesforex

Notice the numerous times the price action touche the 20 EMA(The bluish line. This opens the way to numerous trade setups that you can chew on. If you want to know more about dynamic support and resistance levels, look up How To Locate Dynamic Support and Resistance Levels

How Do I Trade Event Area Support and Resistance Levels?

In case you guys have forgotten, an event area is a price level or zone where a price action signal forms followed by a humongous directional move or “event.” Let’s see how event areas are traded in the pic below

Event zone

As you can see, the white arrows pointing downwards suggests price retracement after price bounced off the resistance ;levels. However take a close look at the huge upwards arrow at the line of resistance. Here we see a humongous break by the bulls at this level. And when you see such a pattern it’s time to make so much needed doe.

Even more important, keep an eye on this price signal for future entries when it touches this key level again. You dont want to miss out on another opportunity to ring in the cash.

For more information on price event areas look up A Closer Look at Price Event Zones and Support and Resistance Levels

That’s  a wrap for ”How To Profit From Trading Key Chart Levels ” As you can see, learning how to trade key levels is not that scary. All you have to do is analyze the market and gain enough lough as to how to identify key market levels and price action match ups.

Once you have these two components you have a huge advantage over other traders. You can combine these two weapons to form a high probability trading strategy that you can apply to the ever changing market conditions week in week out. These sets do work out in your favor when you constantly seek them out these confluent key levels

Take care til next time

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