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REASONS TO USE MULTI-TIMEFRAME ANALYSIS AND TRADING

 

REVERSALS & CONTINUATION,MARKET SWINGS

A reversal is a term used to describe when a trend reverses direction. For example, the market has been in an uptrend and when the price hits a major resistance level, it reversed and formed a downtrend. That’s what reversal means. Now, where can reversals happen? The following are the major areas where price reversals do happen: Support levels Resistance levels Fibonacci levels Here’s an example of price reversing form a support level and went up and then later broke it and went down. Now that broken support level acts as resistance level when the price came for a re-test of the level and sent the price tumbling down: So the big question is: how to spot trend continuity and execute trades at the right time? The secret is in the identification of specific chart patterns as well as very specific candlesticks patterns and you will discover more on the Chart Patterns and Candlestick Patterns section of this course. Top 3 reasons why it is so important for you knowing reversal points/levels as well as understanding trend continuity patterns and signals: You don’t want to be buying near or at a resistance level (which is a reversal point). You don’t […]


Three White Soldiers Three Black Crows Forex Trading Strategy

I want to cover a Forex trading strategy that is based on 2 candlestick chart patterns and they are called: The Three White Soldiers Candlestick Pattern Three Black Crows Candlestick Pattern Both of these candlestick chart patterns work in combination with each other and for the sake of simplicity, let’s just call it the “3 white soldiers and 3 black crows trading strategy“. First, let’s look at these chart patterns in detail. THREE WHITE SOLDIERS CHART PATTERN The three white soldiers pattern is a bullish reversal candlestick pattern and it consists of 3 bullish candlesticks and this is how it is formed: The market has to be in a downtrend. You then have 3 green bullish candlesticks that form consecutively giving you the three white soldiers chart pattern. Each candlestick must open within the candle body of the previous candlestick Each candlestick must close higher than the previous candlestick When you see the three white soldiers pattern formed in a downtrend, you should at least take notice because it is a potential signal that a trend change may be happening. One thing you want to see is that these candlesticks scream “bullish” when you look at them. We want to […]


Fakey Trading Strategy | Fakey Trading Setup Explained

This fakey trading strategy is based on the fakey trade setup. If you don’t know what a fakey setup is or what it looks like, then you will learn that in here. The Fakey Trade Setup is being popularized by Nial Fuller, an Australian professional forex trader over at www.learntotradethemarket.com You will also learn about the variation of the fakey setup below. Now, what you will read here are my interpretation of the fakey trading strategy & setup and it may not be similar to what you may read or understand out there but I think it will come pretty close. Lets get started. Definition Of Fakey Trade Setup Here’s what Nial Fuller had to say about the Fakey Trade Setup: “Often times the market will appear to be headed one direction and then reverse sucking all the amateurs in as the professionals push price back in the opposite direction. This can set off some pretty big moves in the Forex market” There are two types of fakey trade setups: bullish fakey trade setup bearish fakey trade setup A bullish fakey trade setup forms when a market is in a downtrend for a while and if it forms in levels […]


Rare Forex Trendline Trading Strategy (GREAT RISK REWARD RATIO)

I want to share with you another rare forex trendline trading strategy which is, of course, a price action trading strategy. As I’ve said here, that I spend more hours watching charts than I spend with my missus and she really gets pissed off sometimes and calls my laptop my “mistress” or “2nd wife” or something along that line 🙂 and as a result of those long hours, I sort of stumbled into this setup by accident a few years ago. And to be quite honest, it may not be new discovery (and maybe has a special name which I have not seen yet) but just because of that fact that I had never seen or read about it prior, I opened up many forex charts and went back to past price action history to see if this setup was tradeable or not, did it make sense or not. And guess what? And I liked what I saw. I have traded this setup and have made money on this setup and believe me, the risk: reward is really awesome if your trade goes as anticipated. I say the word “rare” because you will not see a lot of these types […]


Bear Trap Trading Strategy

The bear trap trading strategy is a price action trading strategy, based on a price pattern called the bear trap chart patterns. If you don’t know what a bear trap chart pattern is, read this post: what is a bear trap (includes 5 tips to avoid it)? Bear trap chart patterns are bullish patterns which means once you see that, you should only be looking to buy. Currency Pairs: Any Timeframe: 15 minutes and up Forex Indicators: none required Anything else?: the ability to spot or identify major support levels the ability to do multiple timeframe trading the ability to identify bullish reversal candlesticks Bear Trap Trading Strategy Rules Here are the trading rules of the bear trap trading system and they are really simple if you know how to identify the different types of bear trap chart patterns. Once a bear trap chart pattern forms, you wait for the bullish candlestick signal. Once that bullish candlestick signal forms, place a buy stop pending order at least 2 pips above the high of that bullish candlestick. place your stop loss at least 2 pips below the low of that bullish candlestick or if not place it 2 pips below the […]


Trendline Trading Strategy-Sell At Top Buy At Market Bottom

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: […]


NR7 Trading Strategy (How To Trade The Narrow Range 7 Bar)

This NR7 trading strategy is a price action trading strategy much similar to the NR4 trading strategy. In here you will learn about the NR7 pattern and how to trade it. This is is a price action trading strategy that requires no indicators. All you need is your eyes. What timeframes are required for this forex system?: Daily Timeframe What currency pairs can be traded with the NR7 forex trading strategy? All What is the NR7 pattern? The NR7 pattern is the narrowest range bar (or candlestick) in 7 days. The NR7 pattern is made off of 7 bars. The 7 bar will have a range that is much smaller than the previous six candlesticks. A range is defined as the difference between the high price and the low price. What Is The NR7 Day? What is the NR7 day? Well, the NR7 day is the 7th day with the candlestick with the narrowest range. The NR7 day is part of the NR7 pattern. The candlestick or bar that forms in the NR7 day is called the NR7 bar or candlestick. How To Identify the NR7 Pattern the NR7 pattern is made up of 7 bars the most recent bar/candlestick […]


NR4 Trading Strategy (How To Trade The Narrow Range 4 Bar)

The NR4 bar forex trading strategy is a price action trading system that is based on today’s high to the low price range that must be narrower than the previous 3 days. Before I get to the trading rules of the narrow range 4 bar trading system, here are some things that you need to know: Timeframe to trade: daily preferred Currency Pairs: Any Forex Indicators: none required How To Identify The NR4 Pattern the narrow range 4 bar pattern is made up of four bars the most recent bar/candlestick will have a range that is much smaller than the 3 previous bars. a breakout happens when price closes above or below the high or low of the NR4 bar. NR4 Selling Rules The best sell setups locations I believe to go short are on using the NR4 bar trading systems are: resistance levels where you see the price is showing weakness in momentum and then a narrow range 4 bar forms. price breaks the support levels and goes down and then retraces back to the support level and shows weakness by forming the NR4 bar as shown on the sell setup chart below. Ok, here are the short trading […]


2 Hour London Open Forex Trading System

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 […]


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