The Trendline Trading Strategy is a forex price action trading system that is designed to trade the price bounce off the trendlines. You will notice on your charts that price does two things when it comes to a trendline: it bounces off it which means it obeys the trendline or it breaks it…and when it breaks it, you can use the trendline break forex trading strategy to trade it. This strategy is about how to trade when prices bounce off the trendline. In order for you to use the trendline trading system, you need to know how to draw a valid or proper trendline. HOW TO DRAW TRENDLINE You need a minimum of two lower swing high peaks to draw a downward trendline (to show market in a downtrend) and two higher swing lows to draw an upward trendline (to show market in an uptrend) like the chart shown below. When price come to the trendline and touch it on the 3rd, 4th, 5th peak or lows etc…that’s when you buy or sell. For more information on how to draw a trendline, check this out: how to draw trendlines the right way in 2 simple steps. Timeframes: Any Currency Pairs: […]
This forex trading system is called the 2 hour London open forex trading system. It is a simple price action trading system, designed to capture the breakout of the high and low of the 2nd-hour candlestick after the London forex market opens. Currency Pairs: GBPUSD, GBPJPY, GBPCHF Timeframe: 1 hour Indicator: Sessions (shows you the beginning and end of Asian, London and new york forex trading session) TRADING RULES 2 hours after the London market opens, and as soon as the 2nd-hour candlestick closes, place 2 opposite buy stop and sell stop pending orders on the high and low of that 2nd-hour candlestick. As soon as one pending order is activated, you must cancel the other immediately. These pending orders must be 2-3 pips above the high or low of the 2nd-hour candlestick. the stop loss must be placed 2-3 pips above/below the high/low of the 1st-hour candlestick IF it is the greatest distance away from the entry price level, if not use the high/low of the 2nd candlestick. Confused? Let me explain. There will be times when if you enter a buy stop order, you will see that the low of the first candlestick is near the entry price […]
The Broken Trendline Retest Forex Trading Strategy is a price action trading system based on the behavior of price to come back to the trendline that has been broken (intersected), hit it and bounce off it and take off in the direction it was going in the first place. To be able to know how to trade this forex trading system, you need to know how to draw trendlines. Currency Pairs: Any Timeframes: Anything above 1 hr is recommended but you can also use smaller timeframes. Indicators: none required. WHY DOES PRICE BREAK A TRENDLINE AND COMES BACK TO IT TO BOUNCE OFF IT? My simple answer: I don’t know. It is just market behaviour of supply and demand, buyers and sellers at work that somehow happens to cause the price to come back to the trendline and make it bounce back up or down depending or what direction it was going initially. The chart below shows the AUDUSD currency pair in the 4hr timeframe and you can see those two trendlines drawn: the first trendline is a falling trendline indicating that the market was in a downtrend until that trendline was broken. From there price moved up but later […]
If you are looking for the best trend trading strategy then this forex trading strategy here really fits into the ranks of those forex trading strategies that really work. Indicators: You don’t need any forex indicator. All you need is price action. You may also be interested in this free price action trading course. Timeframe: Any Currency Pairs: Any BACKGROUND OF THE BEST TREND TRADING STRATEGY You will see that there are times that the market is really trending nicely, either up or down, price will head back up to retest the support level that was broken only to fall down in a downtrend situation. Similarly, the price will head back down to test the resistance level that was broken only to head back up bouncing from that level in an uptrend situation. Knowing this characteristic of price action, we can make trading rules around such trending situations. So the main concept of the best trend trading strategy is support and resistance trading. DEFINITION OF SUPPORT LEVEL A support level is a level at which price bounced up from after it had been going down for some time. You will see support levels a “valleys” on a price chart. DEFINITION […]
2 Doji Candlesticks Forex Breakout Strategy can be used when you notice two Doji candlesticks form one after the other. You really don’t care about whether the market is going to go up or down because of whichever way it goes, you want to catch that breakout so what you do is place pending buy stop and sell stop orders on both sides to capture that breakout. Timeframes: 4hr and daily Currency Pairs: Any Candlestick Pattern: Doji Forex Indicators: none TRADING RULES Here are the trading rules: Watch until you spot 2 consecutive Doji candlesticks on the charts next thing you do is mark the high and low of the Doji borders wait for the third candlestick to close if the third candlestick closes above the upper border, buy at the market and place your stop loss 2-3 pips below the low that you marked in step 2 or you can place it 2-3 pips below the low of the third candlestick. if the third candlestick closes below the lower border then sell at market and place your stop loss 2-3 pips above the high that your marked in step 2 or you can place it 2-3 pips above the […]
This daily pin bar forex trading strategy is one you should know. Pin Bars (or candlesticks) are one of the most popular candlesticks that many traders watch out for. Why? Well, that is because pin bars represent a really sudden and drastic change in traders sentiment. See what I mean with this chart below: THE MAIN ISSUE WITH TRADING DAILY PIN BARS Daily pin bars are usually very long candlesticks…the range (the difference between the high and low price) is often in the hundreds of pips. For example, if you want to trade a daily pin bar that has a range of 450 pips, you stop loss will be a little bit more than 450 pips. That is the issue with trading daily pin bars: the large stop loss distance. See what I’m talking about below with this chart: Now, if you had a $5000 trading account and if you trade 1 standard contract for the setup on the chart above, you are risking about $4500. It is a very large trading risk to take. If you only trade 0.1 contact, your risk will be $45. If you trade 0.5 contacts, your risk will be $2250, still an unacceptable amount […]
Price Action Trading Strategies 20 Pips Asian Session Breakout Forex Trading Strategy The 20 Pips Asian Session Breakout Forex Trading Strategy is a trading system designed to capture the breakout of the asian trading range during the london forex trading session. Let’s be honest, many forex traders don’t like trading the asian forex trading session…why? For one simple reason only: price does not travel too much at all which simply means less trade volume compared to the London and New York forex trading session. But don’t hate the Asian session just yet…and with this asian breakout strategy I will show you why. Ok, first things first: don’t get confused…you are trading in london forex trading session but what you need to look at is the asian forex trading session to do that. I will explain a bit more below. This forex trading strategy is almost similar to the london breakout forex trading strategy but the difference here is that you are aiming for only 20 pips profit each trade. Currency Pairs : GBPUSD, GBPJPY, EURGBP, EURJPY Forex Indicators: none Timeframes: You can use 15, 30mins or 1hr timeframes. If you’ve traded long enough in the forex market, one thing you […]
Price Action Trading StrategiesRoss Hook Pattern Forex Trading Strategy The ross hook pattern forex trading strategy is a 100% price action trading strategy that is based on the ross hook pattern setup. There is no ross hook pattern indicator you are going to use here because all you need will be your eyes to be able to spot a ross hook trade setup when it forming and take trades accordingly. Many forex traders, at first find it difficult to understand the ross hook chart pattern. But trading the ross hook is easy if you know what a ross hook pattern looks like. In this post, I will show you how to spot the ross hook chart pattern and also how to trade it. Let’s get started on learning how to trade the Ross Hook Pattern Forex Trading Strategy… WHAT ACTUALLY IS THE ROSS HOOK PATTERN? So what is the ross hook pattern and what does it look like? In simple terms, the ross hook pattern is a very slight variation of the 1-2-3 pattern. This means if you know what a 1-2-3 pattern is, then it will be quite easy for you to understand the ross hook pattern. So what […]
The head and shoulder chart pattern forex trading strategy is a price action strategy. The head and shoulder chart pattern is based on a reversal pattern that is mostly seen in uptrends and in here, you will learn how to trade this pattern by learning to recognize this pattern when it starts to form and then trading it. The head and shoulders forex trading strategy is the opposite of inverse head and shoulders forex trading strategy. WHAT IS THE HEAD AND SHOULDERS PATTERN AND HOW DOES IT LOOK LIKE? The head and shoulder chart pattern can form in any time frames, from 1 minute up to the monthly time frame. But do you know what it looks like? Well, here’s a chart of what a head and shoulder chart pattern looks like in an ideal case: But in the forex market, you see head and shoulders patterns that look more like this: Or this: WHAT CAUSES THE HEAD AND SHOULDER CHART PATTERN TO FORM? Price does not continue rising all the time or falling all the time. There will be times when it will reverse and go in the opposite direction. So, if the market is in an uptrend, it […]
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