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Forex strategy market openForex Trading Strategy: The Ultimate Guide (2018 Update) Do you want to master Forex trading? Well it all starts with having the right strategy! Trading Forex using price action is simple, stress free, and highly effective. In this guide I will share my advanced Forex trading strategy with you. You will learn to use powerful price action techniques in a stress free and simple Forex trading strategy. Don’t have time to read this article right now? I will send you a ebook version that you can read offline whenever you want. Just let me know what email to send it to. Almost there! Create an account by completing the form below. Forex Price Action Strategy. The Story of Price. Price Action Setups. Chapter 1: My Price Action Trading Strategy. My Forex trading strategy is based completely on price action, no indicators, no confusing techniques, just pure price action! What is Price Action Trading?

All price movement in Forex comes from bulls (buyers) and bears (sellers). When GBPUSD moves up it’s because there are more bulls than bears and vice versa. The Forex market (and any market for that matter) is in a constant state of struggle between bulls and bears. Price action trading is about analysing who currently controls price, bulls or bears and if they are likely to stay in control. If your analysis shows that bulls are in control and that they are likely to stay in control, then you can buy (long). If it shows that bears are in control and that they are likely to stay in control, then you can sell (short). How do you analyse who’s in control of price? By using two simple price action techniques. Support and Resistance Areas. These are buy and sell areas you can easily identify and place on your chart.

Once price hits these areas you know it is likely to stall or reverse completely. This allows you to buy or sell at the right time. Advanced candlestick analysis. This is not that basic doji equals reversal stuff you may have seen elsewhere. Advanced candlestick analysis goes much deeper than that so that you have a full understanding of what a chart is telling you. Once you understand this, one glance at a chart will tell you who’s in control of price (bulls or bears) and if you should buy or sell. These two techniques make up the core of my price action trading strategy. In fact, those are the only techniques I use to find and trade high probability setups. My trading strategy differs from most courses you will come across as it is based entirely on Price Action… There are NO indicators. There are NO confusing techniques. There is NO stress. It’s simply about reading price and making smart trading decisions. Forex Price Action Strategy. My Forex price action strategy was born in 2005 and has been constantly improved over the last 12 years – this strategy has seen it all. It has survived major market changes from the financial crisis in 2008 to the Swiss Franc disaster in 2014, to Brexit in 2016.

It really has seen it all. My price action strategy works in all market conditions . From trending markets to low volatility, to ranging, to high volatility, it has weathered it all with consistent profits. Indicator based strategies work well in specific market conditions. If you have a strategy that works in low volatility markets, it will fail in high volatility, ranging, or trending market conditions. Price action adapts, indicators don’t! Price action doesn’t only adapt to changing market conditions though, it adapts to different pairs, different time frames and, crucially, to different traders. Above all, Price Action keeps your trading simple . In fact, my Forex trading strategy is so simple that you can trade it from your smartphone. I use this strategy to trade on the go – as of 2017 I take over 70% of my trades from my smartphone. My Forex trading strategy was created with simplicity in mind. The most common downfall of today’s traders is over complicating their strategy. We have all seen charts that look like this.

How can you trade comfortably using a chart like this? How can you trade efficiently using a chart like this? How can you trade from your smartphone using a chart like this? You can’t, it is too messy. The core rule of my price action strategy is to keep trading simple. Because the Forex trading strategies that work best are simple . The only thing I place on my charts is support and resistance areas . I use these support and resistance areas in conjunction with candlestick analysis to trade Forex. So what does a clean Forex chart look like?

Much better than the monstrosity above! This chart is uncluttered, easy to understand and to navigate, with nothing to distract you from analysing price action. This style of trading is quick, efficient, stress-free, and you can do it from anywhere, including your smartphone. So if you want a simple Forex strategy, keep reading. Chapter 2: Support & Resistance Areas. Support and resistance areas show you where to buy and sell, they are a vital part of every traders toolkit, and it is essential that you learn how to place them . What is Support and Resistance? Placing support and resistance areas is the most important skill you can master in trading. And placing them is easy. Support and resistance areas divide your chart up into buy and sell areas. An area that sits above current price is a sell area, any area below current price is a buy area. The terms buyers and bulls are interchangeable.

Support is a buy area as buyers are found at support. Resistance = Sell Area. The terms sellers and bears are interchangeable. Resistance is a sell area as sellers are found at resistance. On the GBPUSD chart below, you can see price is approaching the blue shaded area at 1.3500. This is a strong resistance (sell) area. When price approaches a sell area large amounts of sell orders are triggered countering buy orders. This usually results in price stalling or even turning around completely for a reversal. Why does this happen though? It’s simple, the market movers like banks and hedge funds place their orders at areas of support and resistance. Why Do Market Movers Place Their Orders At SR? Good traders don’t randomly place entry orders and hope that they get lucky.

They place their entry orders at significant price levels. Significant levels come in many forms. Yearly, monthly, weekly highs or lows. Rounded numbers such at 1.0000 and 1.0500 (also called psychological levels) All time highs or lows. Areas in which price has stalled or reversed more than once. In the GBPUSD chart example above, we can see that price has stalled at the 1.3070 twice (green highlights). The next time it approaches the level it pulls back again and then again two more times (yellow highlights). Because market movers place their buy orders at the 1.3070 and when price hits the area the buys trigger causing a reversal. This happens all the time on every Forex pair and in every financial market for that matter. This is how markets work, buy and sell orders are grouped together in the same general area and when they are hit we see the impact on price. Placing Support and Resistance Areas. There are a lot of indicators out there that claim to give you great support and resistance areas. I have tried them all and I do not find them reliable. Support and resistance placements still need to be done by a person.

These are my support and resistance areas, but if you want to trade more pairs you will need to place them yourself. A good Forex trading strategy requires some work! But don’t worry, it is easy, all you are doing is placing horizontal lines when you spot an area with two or more bounces. I am going to break it down into a step by step process for you though. But first, we need to define some rules for support and resistance areas. Three Rules to Support and Resistance. There are three key rules you need to keep in mind when placing support and resistance areas. Place areas on the body of a candle, the body is more important than the wick. The more recent the bounce the more important. Prioritise recent bounces over older bounces.

You need at least two connecting bounces to place a support and resistance area. There are a few exceptions to this, the most common one being for points which are yearly or all-time highslows. When you spot a year or all-time highlow you can place an area there even if it has only once bounce. Step By Step Guide to Placing Support and Resistance. Step 1: Select a daily chart and zoom out until you see around one year of data. Don’t worry if you see a little more or less than one year, it’s not a big deal. Step 2: Identify the highest and lowest bounces in the last year and place an area at each. Remember, place your areas at the bodies, not the wicks and as these are yearly highs and lows placing them based on a single bounce is enough. Step 3: Place support and resistance areas between the first two by connecting areas which have two or more bounces. You will generally find that there are 5-8 support and resistance areas on most charts. If you have more than 8 you probably placed too many.

Chapter 3: Advanced Candlestick Analysis. Most new traders learn a little bit about candlestick analysis. But most of what they learn is completely useless! Well the standard approach to candlestick analysis is basic pattern recognition, which fails to work in real trading. I delve much deeper than that, I look at the story behind the candle and in this chapter I will show you how to do that too. You can’t skip straight to advanced candlestick analysis without knowing some basics first. If you don’t know the basics, that’s fine, I got you covered! The Truth About Candlestick Analysis. When Forex traders first start out they usually learn about candlesticks. But what they learn is usually useless. They normally see a list of “candle patterns” like the one below. Each pattern has a set in stone definition and that is the only meaning it can have. This is not candlestick analysis, it is pattern recognition. And for a price action trader, it is useless. Actually, it is worse than useless. Thinking about candles as just patterns is counterproductive.

It makes you a worse trader, it leads you to make massive mistakes. Giving a pattern a set definition leads to tunnel vision. When you see that specific pattern, you assume that something will happen. But that is not how candlesticks work. All candlesticks need to be assessed based on the candlesticks around them, and many other factors. Below is a candlestick pattern commonly called a “spinning top”. Normally people say that a spinning top means a reversal is imminent, which can be true. However, this same pattern can also mean that a continuation is imminent. It can mean that price is temporarily stalling. It can mean a lot of different things. Thinking of candles as simple patterns is the wrong way to do things.

You need to look beyond the pattern and read the story of price. Every single candle on your chart is telling you a story. When you combine those candles together, you get the story of price. The foundation of my Forex trading strategy is reading and understanding the story of price. Reading and understanding the story of price is vital in Forex. It is vital because it allows you to answer one of the most important questions in trading… Who is in control of price? This question has three possible answers: buyers, sellers, or neither. Being able to accurately answer this question is vital. If you are about to enter a short trade and you ask yourself. “Who is in control of price?” and your answer is “buyers”, well perhaps selling is not a great idea. Let’s break down the story of price. If you look at the three highlighted candles below, it is easy to conclude that sellers are in control of price. The candles all closed lower than they opened, they all created new lows beyond the previous candles low and they all had small upper wicks in comparison to the candle body.

The small upper wicks indicate that buyers were unable to push price up by much. But what does the highlighted candle in the next chart tell us? It has a short upper wick, a small body, and a long lower wick. This is what I call an indecision candle. What’s an Indecision Candle? Indecision candles occur when neither buyers or sellers can gain and maintain control of price. They are common, but if used in the right way, they can be very powerful. Take a look at this bullish trend (yellow highlight), it is a strong trend, there are several bullish candles heading towards an area of resistance. The big bullish candles tell us that during the highlighted period buyers were in complete control of price. When price hits resistance we get an indecision candle forming (green highlight). Let’s break this candle down into a story so you understand why it indicates indecision. Large Upper Wick (Blue Highlight) A large upper wick shows that buyers tried to continue the bullish trend but failed. Sellers took control of price and pushed it down. Small Bearish Body (Green Highlight) The small bearish body shows that sellers were able to close lower than the open. This is significant because in the three candles before this price consistently closed higher than open.

This shows us that buyers are losing power. Small Lower Wick (Red Highlight) The small lower wick shows us that sellers were not able to gain much ground either. This tells us that sellers are not strong enough to turn price around completely. However, they are strong enough to stall further buyer movement. All together this indecision candle forming right after strong bullish candles suggests that power has shifted from a decidedly bullish (buyer) market to an undecided market. While sellers are not in control, neither are buyers. But there is one more thing we need to look at… … The indecision candle is forming on top of a resistance area. Let’s looks at this chart again. If you remember, in the previous chapter we talked about resistance being a sell area and support being a buy area. So the image above shows us three strong bullish candles heading into a resistance area. And then… Price stalls and we get indecision forming on top of that area. This tells us that the sell area is working.

When price pushed into that area sell orders triggered and buyers could no longer continue up. That is the story of price for this chart. And this story gives us a nice little price action trade setup. Chapter 4: Setups With My Forex Trading Strategy. Price action allows you to take many different types of trades, reversals, continuations, range, swing, breakout and scalp trades to name a few. In my free Forex trading strategy I will focus on one type of setup, the easiest to spot and trade, reversal . How to Spot a Reversal Trade. Reversals occur quite often, but if you do not know what to look for, you cannot trade them. Reversals are one of the strongest price action setups, and one of the easiest to trade. And because they occur so often, you can trade this setup exclusively and be a profitable trader. In fact, for years Forex trading strategy focussed on reversals only. However, these days I trade more price action setups. Reversal trades come in three parts: The preceding trend. The Indecision candle(s). The reversal trend. Let’s break down each of these parts.

A preceding trend is a strong move by the bearsbulls heading into an area of supportresistance. In the example above, the preceding trend is a very strong bearish move, indicating that there are a lot of bears in the market and very few bulls. If bulls were strong then price would not be trending down. The preceding trend shows us that bears (sellers) have strong control of price and they are pushing price down into a support area. The opposite applies for a bullish preceding trend which would show bulls (buyers) trending towards resistance, as you see below. A preceding trend can be formed by as little as one candle. If the candle is strong and covers a lot of price distance, I categorise it as a preceding trend for the purposes of reversal trading. The example below shows a single candle preceding tend. Preceding trends are pretty simple. As long as you see a strong move heading into an area of support or resistance, you can consider it a preceding trend. The Indecision Candle(s) A reversal setup will have one to three indecision candles. The indecision candles need to form on or near to the support and resistance area.

If indecision does not form on or near to the area of support and resistance, it is not a valid reversal setup. Why does it need to be on a support and resistance area? An indecision candle in a bullish preceding trend indicates that buyers are possibly losing control, and sellers may be gaining control. In a bearish preceding trend it indicates that sellers are losing control and buyers may be gaining control. However, an indecision candle does not indicate that price will reverse with any degree of certainty. An indecision candle indicates only one thing… Indecision! You cannot take a trade based solely on indecision. The image below shows indecision forming between support and resistance.

If you were to enter reversal trades based solely on indecision, it wouldn’t work out too well… What about when a bullish preceding trend heads into an area of resistance (sell area) or a bearish trend into support (buy area) and indecision forms? Well, then we get the makings of a high probability reversal setup. But we cannot enter just yet, we need confirmation, which comes in at part three of a reversal setup. The reversal trend is the third and most important part of a reversal setup. This is where we make our profit! After a preceding trend stalls at support, and indecision forms, you often see a reversal trend. The image below shows a bearish reversal trend forming after indecision on resistance. In this case we saw a transition of power from a bullish preceding trend to a bearish reversal trend separated by a stall on resistance. Where do you enter the trade though? Let’s discuss that in the next chapter. Chapter 5: Trading Reversal Trades With My Strategy. You know what a reversal trade looks like.

You know that you need to enter after indecision and before the reversal trend. In this chapter I will show you how to use my Forex trading strategy to trade reversals profitably. Don’t worry, entering reversal trades at the right time is a lot easier than you may think. My Forex trading strategy was built on reversal trading. It has now expanded beyond just reversals, but reversal trading is where it all started. Over the years I have refined reversal trade entries into a simple step-by-step process. Entering trades does not need to be difficult – remember, my goal is to keep everything simple. Getting in at the Right Time. In the previous chapter I explained that a reversal comes in three parts. The preceding trend.

The Indecision candle(s). The reversal trend. You need to enter the reversal trade after part two (indecision) closes, but before part three (reversal trend) completely takes off. Obviously if you enter after the reversal trend takes off, it is too late. You also need to make sure you do not enter too early as you could be entering a false setup. In the image below you see a preceding trend heading into support, indecision, and a failed reversal trend. If you entered too early, you would have failed this trade. Failed trades happen, there is nothing you can do about them. But getting in at the right time lowers your percentage of failed trades. Many people wait for a candle close to get in, but I have tested this thoroughly and waiting for closes gets you in too late. In the image below you can see the first candle in the reversal trend closing far from support. This means you miss out on a lot of potential profit, which is obviously not good. The key to reversal trading, or any trading for that matter is getting in at the right time . So, how do you do that? How to Enter Reversal Trade. I have tested countless entry methods in the last 15 years.

In that time I have found three awesome entry strategies: entering on new highlow, retrace entries, and distance entries. In my free strategy I will teach you the easiest, entering on new highslows. When indecision forms on an area of support or resistance, you can use the high or low of the indecision candle as an entry trigger and as a stop loss. In the image above indecision has formed on resistance after a bullish preceding trend, so we want to enter a short reversal trade. We set our entry a few pips below the low of the indecision candle, and our stop loss a few pips above the highest point of the candle. In trading, highs and lows are very important. If a new low is created from resistance it indicates sellers have taken control of price, which means we want to be short. Our stop loss sits above the high as a break of that high would indicate buyers have regained control of price. For long trades you set your entry a few pips above the high of indecision, and a few pips below the low. This is the most simple form of trade entry, but also one of the most effective. Now that you know how to enter, you need to know where to set your target. Where to Set Your Target.

Targets are also very easy, you need to make sure your target comes before major barriers like the next area of support or resistance. So, if you enter a long reversal from support, make sure that your target is before the next resistance area. The minimum risk to reward ratio I use is 1:1.5 R. This means that my target has to be a minimum of 1.5 times the size of my stop. If my stop is 100 pips, the minimum size of my target is 150 pips (1.5 x 100). If my stop is 75 pips, the minimum size of my target is 112.5 pips (1.5 x 75). If there is a major barrier like the next support and resistance area in the way of my minimum target I skip the trade. In the image above the support area is before my minimum target of 1.5 R is met so I skip the trade. What Pairs and Timeframes With The Forex Trading Strategy? The last thing you need to know is the pairs and timeframes. This strategy works on every single Forex pair, and it also works in other markets like cryptocurrencies, options, futures, stocks and everything. I trade around 10 pairs regularly. However, I often have extra pairs on my list that I monitor. If you want to see what I am currently watching check out my weekly analysis on YouTube. As for time frames, I currently trade these. Many people do not have access to the 6, 8 and 12 hour time frames because their broker doesn’t support it. The general rule in trading is the more time frames you trade the more trades you find. If your broker does not support 6, 8 and 12 hour time frames you need to find a broker who does, or simply use a charting platform separate to your broker.

While this strategy can be traded with just the 4 hour and daily time frames, there is absolutely no sense in sacrificing potential trades because your broker is too outdated to provide new time frames. Chapter 6: Learn More About My Forex Trading Strategy. If you want to get my latest analysis, or want to learn more price action setups, I got you covered. Every Monday I do weekly analysis using my price action strategy. You can check it out on my YouTube channel. If you want a more in-depth guide to my Forex trading strategy you can check out Forex Mastermind. In my course, I expand on this strategy, and I also share different price action strategies. Learn My Forex Scalping Strategy. While the strategy above is an awesome day trading strategy and even a swing trading strategy, for scalping you will need a different approach. In this article, I share my Forex Scalping Strategy. FREE! See Exactly How You Could Potentially Turn $500.00 Into A Growing Monthly Income! "Using my euro open strategy, I share how I profit from the forex.

You could too. " Joshua Martinez's Euro Open Strategy. Get Your FREE Forex Strategy Video! Enter your name and email on the right for instant access. Your Free Video. Watch as I use MTI's trading tools to easily identify profitable entry and exit points, allowing me to take advantage of the market. I call it the Euro Open Strategy - my proprietary Forex trading strategy to the start of the London session, said to contain nearly 70% of all market activity! In this video, you will learn my unique approach and see example trades in my account. Enter your name and email below for instant access on the next page. I'll also send a $19.95 Forex eBook FREE to your email. MARKET TRADERS INSTITUTE (MTI) HAS BEEN SEEN ON. Check out what our Facebook friends are saying! Juan Manuel Salazar !!again .

I love the Fibonacci analysis. 80 and 60 more pips in my wallet today with the NZDJPY and EURUSD. Copyright © 2016 Market Traders Institute, Inc. All Rights Reserved. Our address is 3900 Millenia Blvd, Orlando, Florida, 32839, United States of America. Trading foreign exchange on margin carries a high level of risk, and may not be suitable for everyone. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before getting involved in foreign exchange you should carefully consider your personal venture objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial deposit and therefore you should not place funds that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. The information contained in this web page does not constitute financial advice or a solicitation to buy or sell any Forex contract or securities of any type. MTI will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Past results as represented in these testimonials are not necessarily indicative of future results or success.

Testimonials may not be representative of all reasonably comparable students. Forex trading involves significant risk of loss and may not be suitable for all investors. The information contained in this advertisement is subject to the terms and conditions in our GENERAL DISCLAIMER, RISK DISCLAIMER and PRIVACY POLICY. 30 Min New York Open Forex Strategy. Take advantage of the New York trading session with the 30 min NY open forex strategy. Use this strategy on the GBPUSD and EURUSD currency pair. Chart Setup. Indicators:!De_Munyuk Preferred time frame(s): 30 min Trading sessions: New York Open Preferred Currency pairs: EURUSD, GBPUSD. Download. GBPUSD 30 Min NY Strategy Example. Mark off the first NY 30 min candle highlow price (1.64341.6414).

Buy the GBPUSD 1 pip above the high of this candlestick. The! De_Munyuk dot must be green color (entry price 1.6435). Close the trade for 20 pips at 1.6455. Trading Rules. Buy Rules: !De_Munyuk indicator has to be green. Do not buy on red dot! (buying against the down trend) Mark off the high and low price trading range of the first 30 min NY candlestick Buy the pair if the price exceeds the high price by 1 pip. Place stop loss 18 pips below the entry signal. Exit the trade for 20 pips target. Sell Rules: !De_Munyuk indicator has to be red. Do not sell on green dot! (selling against the up trend) Mark off the high and low price range of the first 30 min NY candlestick Sell the pair if the price exceeds the low price by 1 pip. Place stop loss 18 pips above the entry signal. Exit the trade for 20 pips target. How To Use A European Open Forex Strategy. The forex market operates around the clock, thus not only does one need to be concerned with price movements, but they also need to know the importance of the time at which they are trading. By utilizing certain trading strategies at certain times, traders have a better chance of realizing profits.

Different currency pairs are prone to somewhat more consistent movements at differing times of the day. The following day trading strategy takes advantage of price change patterns but couples the pattern with a time frame that makes the pattern more reliable than if traded at a random time. (Knowing the relationships between pairs can help control risk exposure and maximize profits. See Using Currency Correlations To Your Advantage. ) The Strategy The following strategy is for the GBPUSD currency pair. We are looking for movement on both sides of the Frankfurt opening price. Trading begins in Frankfurt around 7am GMT. This is the bar we will use for our opening price. The strategy is as follows. A 25 to 40-pip move or more above (or below) the opening price at 7am GMT. Then a 25 to 40-pip move or more below (or above) the opening price. This creates a range of movement on both sides of the opening price. We enter a trade when either the high or low of this range is broken. Ideally, we want to see low, high, low breakout, or high, low, high breakout, although this does not need to be the case. Initial stop is 40 pips.

Take profits on half of the position when showing a 40-pip profit. Trail the rest of the position with a 40-pip trailing stop, or alternatively create a second profit target. This can be done by calculating the difference between the morning high and morning low. Then add that difference to the breakout point, this is the profit target (covered in example below). Avoid patterns where initial moves in each direction are larger than 40 pips. Moves such as this create large opening ranges that are tradable themselves. Because we are going to wait for at least a 25-pip movement above and below the open price, it is common to wait an hour or more for a tradable breakout. Until the breakout occurs, we do not enter into a trade using this strategy. Why the GBPUSD Pair? The GBPUSD exchange rate is often referred to as the "Cable.

" The cable is not heavily traded before the Frankfurt open. This is because the only market open right before Frankfurt and London is the Tokyo market. The cable is lightly traded on the Tokyo exchange and because of this, there is more volatility when traders enter the market around the Frankfurt opening time, which is followed shortly by the London open. Some other currency pairs are more evenly traded throughout the day and thus this strategy is not as effective. Also, the GBPUSD is a volatile currency pair. It has large swinging moves that create excellent profit opportunities. Where there are large swings and profit potential, there is also the probability of being stopped out. We wait for the market to move both directions before entering a trade so we can reduce the likelihood of being stopped out of our trade. After these initial price movements have taken place, the next move – our breakout - is more likely to have conviction behind it because all the weak positions were shaken out of the market in initial rate swings. (To learn more about other strategies, refer to Confirm Forex Momentum With Heikin Ashi .) Logic Behind the Strategy Traders often put stops just outside ranges. When the market opens, and a direction has not been definitively established, these tight stops are triggered by the increased volatility of the open. Stops on one side of the opening price are triggered, pushing rates out of the range and giving the illusion of a breakout. Once all the stops and weak positions (traders not completely dedicated to this first move after the open) have been cleared out, the initial move slows and often reverses. The same thing happens on the other side of the opening price.

All tight stops around the open price have been triggered and now the market is ready to make its first real move. This move is more likely to have strong traders and positions behind it and be based on more solid fundamental and technical criteria than the initial weak moves triggered simply by increased volatility. We enter a trade after this noise and stop triggering has subsided and the market is making its first strong move and triggering a breakout of the either the high or low of the range established after 7am GMT. The morning session does not always play out in this fashion; patience is required in finding the pattern. Example The example in Figure 1 shows how the strategy works. The blue vertical line is when trading begins at 7am GMT. The two blue horizontal lines mark the high (32 pips above open) and low (33 pips below open) made after our open of 1.4862. The market moves down, setting the low, then rallies to set the high and then breaks below the low again. We enter one pip below the old low at 1.4828 (first circle). A stop of 40 pips is set. When the market moves down 40 pips (or the equivalent of our stop), we close out half the position and change our stop order to a trailing stop of 40 pips. At 1.4788, we lock in our 40-pip profit (second circle). The remainder of the position has a 40-pip trailing stop. The market in this example continued to move down to 1.4758. At this point it began to rebound and the remainder of our position was exited at 1.4798 (third circle) for a 30-pip profit. Sometimes the market will run and we will make more on the second half of the position, other times it will stall and reverse resulting in a smaller gain than on the first half the position.

Alternatively, we can use a second profit target by calculating the height of the opening range and then addingsubtracting it from the breakout point. In this example, the opening range is 65 pips. Therefore, we subtract 65 pips from our breakout point at 1.4828, giving us a target of 1.4763 which was also hit in this example (not marked on chart). Strategies for part-time forex traders. Very few people are available to trade forex full time. Traders who have to make their trades at work, lunch or night find that with such a fluid market, trading sporadically throughout a small portion of the day creates missed opportunities to buy or sell. These missed opportunities can spell disaster for the part-timer trader. The risk of missed opportunities notwithstanding, there are strategies that can work based on a part-time schedule. For example, those who trade at night might be limited to the types of currencies they trade based on volumes during the 24-hour cycle. These night traders should employ a strategy of trading specific currency pairs that are most active overnight.

An example would be trading the Australian dollar (AUD) Japanese yen (JPY) pair or the New Zealand dollar (NZD)JPY or AUD pair. It is important to analyze the correlation between currencies when choosing a pair, as having time during the day to study the market and implement trades can lead to a successful strategy (For further reading on forex trading, see "How To Place Orders With A Forex Broker.") The main problem as a part-time trader is – you guessed it – time constraints. Here are some strategies for trading part time when you have an inconsistent schedule. Know Your Forex Markets. Assuming you work nine to five in the U. S., you could trade before or after work. The best trading strategy in those time blocks is to pick the most active currency pairs (those with the most price action). Knowing what times the major currency markets are open will aid in choosing major pairs. The markets in Japan and Europe (open 2:00 a. m. – 11:00 a. m.) are in full swing so part-time traders can choose major currency pairs. These include the EURJPY pair or the EUR CHF pair for major currencies or pairs that involve the Hong Kong dollar (HKD) or Singapore dollar (SGD). The AUDJPY pair might also work well for part-time traders available during the 5 p. m. to midnight timeframe. While it is crucial to understand the best currency pairs that fit your schedule, before placing any bets the trader needs to conduct further analysis on these pairs and the fundamentals of each currency. Stop-Loss Orders in Forex Trading. The best strategy for part-time traders may be to let your computer be your "trading partner." The ability to employ a trading program where you can let the information technology work for you could be beneficial, as the forex market is so fluid and difficult to monitor.

Another common strategy is to implement stop-loss orders, which means that if the market takes a sudden move against your position, your money is protected. Price Action in Forex. There is also a strategy for part-time traders who pop in and out of work (10 minutes at a time). These brief but frequent trading periods may lend themselves to implementing a price action trading strategy. Price action trading means analyzing the technicals or charts of the currency pair to inform trades. Traders can analyze up bars (a bar that has a higher high or higher low than the previous bar) and look at down bars (a bar with a lower high or lower low than the previous). Up bars signal an uptrend while down bars signal a down trend, while other price action indicators may be inside or outside bars. The key to success with this strategy is trading off of a chart timeframe that best meets your schedule. (For further reading on trading strategies, see "Stop Hunting With The Big Forex Players.") Other Forex Trading Strategies. These strategies may also serve you well as a part-time forex trader: Take fewer positions and hold for days. It is critical that you understand the drivers of your currency pairs and have taken the time to really understand your market. Therefore, after studying the market and narrowing down particular chosen currency pairs, selecting a few positions and holding them for a longer period of time is a prudent strategy for part-timers.

Another wise strategy is to put in stop-loss orders with all your trades to minimize any losses if the market moves against you. Look at long-term trends. There is value in looking at longer-term trends (dailyweekly) instead of looking at hourly or even four-hour charts. This will allow you to trade while looking at your computer only once a day. Set up trading orders. Setting limit, stop-loss or other entryexit orders can ensure you do not miss opportunities to enter or exit positions. Most trading platforms allow for these orders with no additional fees. Use technology! Set up automated alerts to your mobile phone or email to keep you informed of currency price movements while you are not actively trading. The forex market is desirable for part-time traders because it runs for 24 hours and is constantly in flux, providing ample opportunities to make profits at any point in the day. However, the forex market is very volatile. This makes it risky for all traders, particularly the part-time trader, if the proper strategy is not implemented. Strategies such as trading specific currency pairs that are at play during the times of day you can trade, looking at longer timeframes, implementing price action methods and employing technology will contribute to the success of part-time forex traders. Risk tolerance, leverage and time horizon (from hourly to weekly) must also be taken into account for any trader's broader strategy.

In sum, these elements are an important part of any trading strategy, whether the focus is on short - or long-term gains. (It's also important to keep track of your forex trading decisions, which are outlined in "4 Reasons Why You Need A Forex Trading Journal.") FREE! See Exactly How You Could Potentially Turn $500.00 Into A Growing Monthly Income! "Using my euro open strategy, I share how I profit from the forex. You could too. " Joshua Martinez's Euro Open Strategy. Get Your FREE Forex Strategy Video! Enter your name and email on the right for instant access. Your Free Video.

Watch as I use MTI's trading tools to easily identify profitable entry and exit points, allowing me to take advantage of the market. I call it the Euro Open Strategy - my proprietary Forex trading strategy to the start of the London session, said to contain nearly 70% of all market activity! In this video, you will learn my unique approach and see example trades in my account. Enter your name and email below for instant access on the next page. I'll also send a $19.95 Forex eBook FREE to your email. MARKET TRADERS INSTITUTE (MTI) HAS BEEN SEEN ON. Check out what our Facebook friends are saying! Juan Manuel Salazar !!again . I love the Fibonacci analysis.

80 and 60 more pips in my wallet today with the NZDJPY and EURUSD. Copyright © 2016 Market Traders Institute, Inc. All Rights Reserved. Our address is 3900 Millenia Blvd, Orlando, Florida, 32839, United States of America. Trading foreign exchange on margin carries a high level of risk, and may not be suitable for everyone. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before getting involved in foreign exchange you should carefully consider your personal venture objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial deposit and therefore you should not place funds that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. The information contained in this web page does not constitute financial advice or a solicitation to buy or sell any Forex contract or securities of any type. MTI will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

Past results as represented in these testimonials are not necessarily indicative of future results or success. Testimonials may not be representative of all reasonably comparable students. Forex trading involves significant risk of loss and may not be suitable for all investors. The information contained in this advertisement is subject to the terms and conditions in our GENERAL DISCLAIMER, RISK DISCLAIMER and PRIVACY POLICY. Forex Trading Strategy: The Ultimate Guide (2018 Update) Do you want to master Forex trading? Well it all starts with having the right strategy! Trading Forex using price action is simple, stress free, and highly effective. In this guide I will share my advanced Forex trading strategy with you. You will learn to use powerful price action techniques in a stress free and simple Forex trading strategy. Don’t have time to read this article right now? I will send you a ebook version that you can read offline whenever you want. Just let me know what email to send it to. Almost there! Create an account by completing the form below.

Forex Price Action Strategy. The Story of Price. Price Action Setups. Chapter 1: My Price Action Trading Strategy. My Forex trading strategy is based completely on price action, no indicators, no confusing techniques, just pure price action! What is Price Action Trading? All price movement in Forex comes from bulls (buyers) and bears (sellers). When GBPUSD moves up it’s because there are more bulls than bears and vice versa. The Forex market (and any market for that matter) is in a constant state of struggle between bulls and bears. Price action trading is about analysing who currently controls price, bulls or bears and if they are likely to stay in control.

If your analysis shows that bulls are in control and that they are likely to stay in control, then you can buy (long). If it shows that bears are in control and that they are likely to stay in control, then you can sell (short). How do you analyse who’s in control of price? By using two simple price action techniques. Support and Resistance Areas. These are buy and sell areas you can easily identify and place on your chart. Once price hits these areas you know it is likely to stall or reverse completely. This allows you to buy or sell at the right time. Advanced candlestick analysis. This is not that basic doji equals reversal stuff you may have seen elsewhere.

Advanced candlestick analysis goes much deeper than that so that you have a full understanding of what a chart is telling you. Once you understand this, one glance at a chart will tell you who’s in control of price (bulls or bears) and if you should buy or sell. These two techniques make up the core of my price action trading strategy. In fact, those are the only techniques I use to find and trade high probability setups. My trading strategy differs from most courses you will come across as it is based entirely on Price Action… There are NO indicators. There are NO confusing techniques. There is NO stress. It’s simply about reading price and making smart trading decisions. Forex Price Action Strategy. My Forex price action strategy was born in 2005 and has been constantly improved over the last 12 years – this strategy has seen it all. It has survived major market changes from the financial crisis in 2008 to the Swiss Franc disaster in 2014, to Brexit in 2016. It really has seen it all. My price action strategy works in all market conditions . From trending markets to low volatility, to ranging, to high volatility, it has weathered it all with consistent profits. Indicator based strategies work well in specific market conditions.

If you have a strategy that works in low volatility markets, it will fail in high volatility, ranging, or trending market conditions. Price action adapts, indicators don’t! Price action doesn’t only adapt to changing market conditions though, it adapts to different pairs, different time frames and, crucially, to different traders. Above all, Price Action keeps your trading simple . In fact, my Forex trading strategy is so simple that you can trade it from your smartphone. I use this strategy to trade on the go – as of 2017 I take over 70% of my trades from my smartphone. My Forex trading strategy was created with simplicity in mind. The most common downfall of today’s traders is over complicating their strategy. We have all seen charts that look like this. How can you trade comfortably using a chart like this? How can you trade efficiently using a chart like this? How can you trade from your smartphone using a chart like this?

You can’t, it is too messy. The core rule of my price action strategy is to keep trading simple. Because the Forex trading strategies that work best are simple . The only thing I place on my charts is support and resistance areas . I use these support and resistance areas in conjunction with candlestick analysis to trade Forex. So what does a clean Forex chart look like? Much better than the monstrosity above! This chart is uncluttered, easy to understand and to navigate, with nothing to distract you from analysing price action. This style of trading is quick, efficient, stress-free, and you can do it from anywhere, including your smartphone. So if you want a simple Forex strategy, keep reading. Chapter 2: Support & Resistance Areas. Support and resistance areas show you where to buy and sell, they are a vital part of every traders toolkit, and it is essential that you learn how to place them . What is Support and Resistance? Placing support and resistance areas is the most important skill you can master in trading. And placing them is easy.

Support and resistance areas divide your chart up into buy and sell areas. An area that sits above current price is a sell area, any area below current price is a buy area. The terms buyers and bulls are interchangeable. Support is a buy area as buyers are found at support. Resistance = Sell Area. The terms sellers and bears are interchangeable. Resistance is a sell area as sellers are found at resistance. On the GBPUSD chart below, you can see price is approaching the blue shaded area at 1.3500. This is a strong resistance (sell) area. When price approaches a sell area large amounts of sell orders are triggered countering buy orders. This usually results in price stalling or even turning around completely for a reversal.

Why does this happen though? It’s simple, the market movers like banks and hedge funds place their orders at areas of support and resistance. Why Do Market Movers Place Their Orders At SR? Good traders don’t randomly place entry orders and hope that they get lucky. They place their entry orders at significant price levels. Significant levels come in many forms. Yearly, monthly, weekly highs or lows. Rounded numbers such at 1.0000 and 1.0500 (also called psychological levels) All time highs or lows. Areas in which price has stalled or reversed more than once. In the GBPUSD chart example above, we can see that price has stalled at the 1.3070 twice (green highlights). The next time it approaches the level it pulls back again and then again two more times (yellow highlights). Because market movers place their buy orders at the 1.3070 and when price hits the area the buys trigger causing a reversal.

This happens all the time on every Forex pair and in every financial market for that matter. This is how markets work, buy and sell orders are grouped together in the same general area and when they are hit we see the impact on price. Placing Support and Resistance Areas. There are a lot of indicators out there that claim to give you great support and resistance areas. I have tried them all and I do not find them reliable. Support and resistance placements still need to be done by a person. These are my support and resistance areas, but if you want to trade more pairs you will need to place them yourself. A good Forex trading strategy requires some work! But don’t worry, it is easy, all you are doing is placing horizontal lines when you spot an area with two or more bounces. I am going to break it down into a step by step process for you though. But first, we need to define some rules for support and resistance areas.

Three Rules to Support and Resistance. There are three key rules you need to keep in mind when placing support and resistance areas. Place areas on the body of a candle, the body is more important than the wick. The more recent the bounce the more important. Prioritise recent bounces over older bounces. You need at least two connecting bounces to place a support and resistance area. There are a few exceptions to this, the most common one being for points which are yearly or all-time highslows. When you spot a year or all-time highlow you can place an area there even if it has only once bounce. Step By Step Guide to Placing Support and Resistance.

Step 1: Select a daily chart and zoom out until you see around one year of data. Don’t worry if you see a little more or less than one year, it’s not a big deal. Step 2: Identify the highest and lowest bounces in the last year and place an area at each. Remember, place your areas at the bodies, not the wicks and as these are yearly highs and lows placing them based on a single bounce is enough. Step 3: Place support and resistance areas between the first two by connecting areas which have two or more bounces. You will generally find that there are 5-8 support and resistance areas on most charts. If you have more than 8 you probably placed too many. Chapter 3: Advanced Candlestick Analysis. Most new traders learn a little bit about candlestick analysis. But most of what they learn is completely useless!

Well the standard approach to candlestick analysis is basic pattern recognition, which fails to work in real trading. I delve much deeper than that, I look at the story behind the candle and in this chapter I will show you how to do that too. You can’t skip straight to advanced candlestick analysis without knowing some basics first. If you don’t know the basics, that’s fine, I got you covered! The Truth About Candlestick Analysis. When Forex traders first start out they usually learn about candlesticks. But what they learn is usually useless. They normally see a list of “candle patterns” like the one below. Each pattern has a set in stone definition and that is the only meaning it can have. This is not candlestick analysis, it is pattern recognition. And for a price action trader, it is useless. Actually, it is worse than useless.

Thinking about candles as just patterns is counterproductive. It makes you a worse trader, it leads you to make massive mistakes. Giving a pattern a set definition leads to tunnel vision. When you see that specific pattern, you assume that something will happen. But that is not how candlesticks work. All candlesticks need to be assessed based on the candlesticks around them, and many other factors. Below is a candlestick pattern commonly called a “spinning top”. Normally people say that a spinning top means a reversal is imminent, which can be true. However, this same pattern can also mean that a continuation is imminent. It can mean that price is temporarily stalling. It can mean a lot of different things. Thinking of candles as simple patterns is the wrong way to do things.

You need to look beyond the pattern and read the story of price. Every single candle on your chart is telling you a story. When you combine those candles together, you get the story of price. The foundation of my Forex trading strategy is reading and understanding the story of price. Reading and understanding the story of price is vital in Forex. It is vital because it allows you to answer one of the most important questions in trading… Who is in control of price? This question has three possible answers: buyers, sellers, or neither. Being able to accurately answer this question is vital. If you are about to enter a short trade and you ask yourself. “Who is in control of price?” and your answer is “buyers”, well perhaps selling is not a great idea. Let’s break down the story of price.

If you look at the three highlighted candles below, it is easy to conclude that sellers are in control of price. The candles all closed lower than they opened, they all created new lows beyond the previous candles low and they all had small upper wicks in comparison to the candle body. The small upper wicks indicate that buyers were unable to push price up by much. But what does the highlighted candle in the next chart tell us? It has a short upper wick, a small body, and a long lower wick. This is what I call an indecision candle. What’s an Indecision Candle? Indecision candles occur when neither buyers or sellers can gain and maintain control of price. They are common, but if used in the right way, they can be very powerful. Take a look at this bullish trend (yellow highlight), it is a strong trend, there are several bullish candles heading towards an area of resistance.

The big bullish candles tell us that during the highlighted period buyers were in complete control of price. When price hits resistance we get an indecision candle forming (green highlight). Let’s break this candle down into a story so you understand why it indicates indecision. Large Upper Wick (Blue Highlight) A large upper wick shows that buyers tried to continue the bullish trend but failed. Sellers took control of price and pushed it down. Small Bearish Body (Green Highlight) The small bearish body shows that sellers were able to close lower than the open. This is significant because in the three candles before this price consistently closed higher than open. This shows us that buyers are losing power. Small Lower Wick (Red Highlight) The small lower wick shows us that sellers were not able to gain much ground either.

This tells us that sellers are not strong enough to turn price around completely. However, they are strong enough to stall further buyer movement. All together this indecision candle forming right after strong bullish candles suggests that power has shifted from a decidedly bullish (buyer) market to an undecided market. While sellers are not in control, neither are buyers. But there is one more thing we need to look at… … The indecision candle is forming on top of a resistance area. Let’s looks at this chart again. If you remember, in the previous chapter we talked about resistance being a sell area and support being a buy area. So the image above shows us three strong bullish candles heading into a resistance area. And then…

Price stalls and we get indecision forming on top of that area. This tells us that the sell area is working. When price pushed into that area sell orders triggered and buyers could no longer continue up. That is the story of price for this chart. And this story gives us a nice little price action trade setup. Chapter 4: Setups With My Forex Trading Strategy. Price action allows you to take many different types of trades, reversals, continuations, range, swing, breakout and scalp trades to name a few. In my free Forex trading strategy I will focus on one type of setup, the easiest to spot and trade, reversal . How to Spot a Reversal Trade. Reversals occur quite often, but if you do not know what to look for, you cannot trade them. Reversals are one of the strongest price action setups, and one of the easiest to trade. And because they occur so often, you can trade this setup exclusively and be a profitable trader. In fact, for years Forex trading strategy focussed on reversals only. However, these days I trade more price action setups.

Reversal trades come in three parts: The preceding trend. The Indecision candle(s). The reversal trend. Let’s break down each of these parts. A preceding trend is a strong move by the bearsbulls heading into an area of supportresistance. In the example above, the preceding trend is a very strong bearish move, indicating that there are a lot of bears in the market and very few bulls. If bulls were strong then price would not be trending down. The preceding trend shows us that bears (sellers) have strong control of price and they are pushing price down into a support area. The opposite applies for a bullish preceding trend which would show bulls (buyers) trending towards resistance, as you see below. A preceding trend can be formed by as little as one candle.

If the candle is strong and covers a lot of price distance, I categorise it as a preceding trend for the purposes of reversal trading. The example below shows a single candle preceding tend. Preceding trends are pretty simple. As long as you see a strong move heading into an area of support or resistance, you can consider it a preceding trend. The Indecision Candle(s) A reversal setup will have one to three indecision candles. The indecision candles need to form on or near to the support and resistance area. If indecision does not form on or near to the area of support and resistance, it is not a valid reversal setup. Why does it need to be on a support and resistance area? An indecision candle in a bullish preceding trend indicates that buyers are possibly losing control, and sellers may be gaining control. In a bearish preceding trend it indicates that sellers are losing control and buyers may be gaining control. However, an indecision candle does not indicate that price will reverse with any degree of certainty. An indecision candle indicates only one thing… Indecision! You cannot take a trade based solely on indecision. The image below shows indecision forming between support and resistance.

If you were to enter reversal trades based solely on indecision, it wouldn’t work out too well… What about when a bullish preceding trend heads into an area of resistance (sell area) or a bearish trend into support (buy area) and indecision forms? Well, then we get the makings of a high probability reversal setup. But we cannot enter just yet, we need confirmation, which comes in at part three of a reversal setup. The reversal trend is the third and most important part of a reversal setup. This is where we make our profit! After a preceding trend stalls at support, and indecision forms, you often see a reversal trend. The image below shows a bearish reversal trend forming after indecision on resistance. In this case we saw a transition of power from a bullish preceding trend to a bearish reversal trend separated by a stall on resistance. Where do you enter the trade though? Let’s discuss that in the next chapter. Chapter 5: Trading Reversal Trades With My Strategy.

You know what a reversal trade looks like. You know that you need to enter after indecision and before the reversal trend. In this chapter I will show you how to use my Forex trading strategy to trade reversals profitably. Don’t worry, entering reversal trades at the right time is a lot easier than you may think. My Forex trading strategy was built on reversal trading. It has now expanded beyond just reversals, but reversal trading is where it all started. Over the years I have refined reversal trade entries into a simple step-by-step process. Entering trades does not need to be difficult – remember, my goal is to keep everything simple. Getting in at the Right Time.

In the previous chapter I explained that a reversal comes in three parts. The preceding trend. The Indecision candle(s). The reversal trend. You need to enter the reversal trade after part two (indecision) closes, but before part three (reversal trend) completely takes off. Obviously if you enter after the reversal trend takes off, it is too late. You also need to make sure you do not enter too early as you could be entering a false setup. In the image below you see a preceding trend heading into support, indecision, and a failed reversal trend. If you entered too early, you would have failed this trade. Failed trades happen, there is nothing you can do about them. But getting in at the right time lowers your percentage of failed trades. Many people wait for a candle close to get in, but I have tested this thoroughly and waiting for closes gets you in too late. In the image below you can see the first candle in the reversal trend closing far from support. This means you miss out on a lot of potential profit, which is obviously not good.

The key to reversal trading, or any trading for that matter is getting in at the right time . So, how do you do that? How to Enter Reversal Trade. I have tested countless entry methods in the last 15 years. In that time I have found three awesome entry strategies: entering on new highlow, retrace entries, and distance entries. In my free strategy I will teach you the easiest, entering on new highslows. When indecision forms on an area of support or resistance, you can use the high or low of the indecision candle as an entry trigger and as a stop loss. In the image above indecision has formed on resistance after a bullish preceding trend, so we want to enter a short reversal trade. We set our entry a few pips below the low of the indecision candle, and our stop loss a few pips above the highest point of the candle. In trading, highs and lows are very important. If a new low is created from resistance it indicates sellers have taken control of price, which means we want to be short.

Our stop loss sits above the high as a break of that high would indicate buyers have regained control of price. For long trades you set your entry a few pips above the high of indecision, and a few pips below the low. This is the most simple form of trade entry, but also one of the most effective. Now that you know how to enter, you need to know where to set your target. Where to Set Your Target. Targets are also very easy, you need to make sure your target comes before major barriers like the next area of support or resistance. So, if you enter a long reversal from support, make sure that your target is before the next resistance area. The minimum risk to reward ratio I use is 1:1.5 R. This means that my target has to be a minimum of 1.5 times the size of my stop. If my stop is 100 pips, the minimum size of my target is 150 pips (1.5 x 100). If my stop is 75 pips, the minimum size of my target is 112.5 pips (1.5 x 75). If there is a major barrier like the next support and resistance area in the way of my minimum target I skip the trade. In the image above the support area is before my minimum target of 1.5 R is met so I skip the trade. What Pairs and Timeframes With The Forex Trading Strategy?

The last thing you need to know is the pairs and timeframes. This strategy works on every single Forex pair, and it also works in other markets like cryptocurrencies, options, futures, stocks and everything. I trade around 10 pairs regularly. However, I often have extra pairs on my list that I monitor. If you want to see what I am currently watching check out my weekly analysis on Y



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