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EURAUD 1D RANGE TRADINGRanges are repeatable trading chart patterns. A Range chart pattern will have a non-directional bias so the price can go either direction. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. Whatever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart ). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility ) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
by Tradingstrategyguides
2
MCD 1D BEAR FLAG SHORT TRADEBear Flags are Ranges that are repeatable trading chart patterns. Bear Flag chart patterns will have a directional bias depending on the previous incoming trend (short trade). Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. Whatever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
NYSE:MCDShort
by Tradingstrategyguides
ALLEGION 1D DESCENDING TRIANGLE SHORT TRADEDescending Triangles are repeatable trading chart patterns. Descending chart patterns will have a directional bias depending on the previous incoming trend (Short Trade). Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. Whatever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
NYSE:ALLEShort
by Tradingstrategyguides
SILVER 1D RANGE BUY TRADERanges are repeatable trading chart patterns. Ranges are consolidation chart patterns that can breakout either direction. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. Whatever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
OANDA:XAGUSDLong
by Tradingstrategyguides
EURNZD 15M 3 LITTLE MOUNTAINS LITTLE RIVERS PRO TRADING STRATEGYThree Little Mountains Rivers Trading Strategy Again, this strategy doesn’t require any professional trading indicators. The Three Little Mountains 3 Rivers trading strategy is a pure price action trading strategy that has the potential to reward us instantly. The rules for this setup are pretty simple (sell signals): First, you need three consecutive symmetrical peaks (swing highs). The time that passes between the development of each swing high is more or less the same. Enter a short position once the market on the 3rd peak turns below the 20% range of the second peak. Place your protective stop loss above the newly formed swing high from the 3rd peak. * It is required that at the top of the last high or low, a candlestick reversal pattern is formed. Whether it's a Hammer, a Hanged Man, a Morning or Evening Star, Bullish or Bearish Engulfing, or another pattern. Basically, we’re trying to anticipate when the third swing high will get formed. If we wait too long, our profit margins will shrink. Note* this chart pattern works on the daily chart as much as it works on the lower time frame. We like to trade the Three Little Mountains 3 Little Rivers trading strategy on the 15-minute chart.
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EURNZD 15M 3 LITTLE MOUNTAIN LITTLE RIVER PROFESSIONAL STRATEGYThree Little Mountains Rivers Trading Strategy Again, this strategy doesn’t require any professional trading indicators. The Three Little Mountains Rivers trading strategy is a pure price action trading strategy that has the potential to reward us instantly. The rules for this setup are pretty simple (sell signals): First, you need three consecutive symmetrical peaks (swing highs). The time that passes between the development of each swing high is more or less the same. Enter a short position once the market turns below the 20% range of the second peak. Place your protective stop loss above the newly formed swing high. * It is required that at the top of the last high or low, a candlestick reversal pattern is formed. Whether it's a Hammer , a Hanged man, a Morning or Evening Star , Bullish or Bearish Engulfing , or another pattern. Basically, we’re trying to anticipate when the third swing high will get formed. If we wait too long, our profit margins will shrink. Note* this chart pattern works on the daily chart as much as it works on the lower time frame. We like to trade the Three Little Mountains 3 Little Rivers trading strategy on the 5-minute chart.
by Tradingstrategyguides
BAC 1D BEAR FLAGBear Flags are Ranges which are repeatable trading chart patterns. Bear Flag chart patterns will have a directional bias depending on the previous incoming trend. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. Whatever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
NYSE:BACShort
by Tradingstrategyguides
Pro Trader 80-20 StrategyThe 80 – 20 Trading Strategy The basic idea behind this pro trading strategy is around a simple chart price formation. Particularly, a candlestick bar with a long body and small wicks. Usually, these types of candlestick patterns signal a market reversal. However, there are some price characteristics that need to confirm the reversal signal. Here are the pro rules: The body of the candle must take at least 80% of the total candlestick size. The wicks of the candle must constitute less than 20% (ideally 10% on each side). Today candle must open 5-15 ticks below (above) the momentum candle (this is meant as a guideline). Once the market breaks above the momentum candle low you buy. Stop-loss can be placed below today’s candle low. Take quick profits as this is a scalping strategy (don’t expect large profits from this chart pattern). Note* This strategy works best in the futures market, but if you’re a smart trader you can work out some variation of it to make it work on your favorite market be it stocks, forex, or cryptocurrencies.
AMEX:IWMEducation
by Tradingstrategyguides
EURNZD 15M 3 LITTLE MOUNTAIN 3 LITTLE RIVER STRATEGYThree Little Mountains Rivers Trading Strategy Again, this strategy doesn’t require any professional trading indicators. The Three Little Mountains Rivers trading strategy is a pure price action trading strategy that has the potential to reward us instantly. The rules for this setup are pretty simple (sell signals): First, you need three consecutive symmetrical peaks (swing highs). The time that passes between the development of each swing high is more or less the same. Enter a short position once the market turns below the 20% range of the second peak. Place your protective stop loss above the newly formed swing high. * It is required that at the top of the last high or low, a candlestick reversal pattern is formed. Whether it's a Hammer , a Hanged man, a Morning or Evening Star , Bullish or Bearish Engulfing , or another pattern. Basically, we’re trying to anticipate when the third swing high will get formed. If we wait too long, our profit margins will shrink. Read more about swing trading in forex here. Note* this chart pattern works on the daily chart as much as it works on the lower time frame. We like to trade the Three Little Indians trading strategy on the 5-minute chart.
Education
by Tradingstrategyguides
1
EURNZD 15M 3 LITTLE INDIAN REVERSAL STRATEGYThree Little Indians Trading Strategy Again, this strategy doesn’t require any professional trading indicators. The Three Little Indians trading strategy is a pure price action trading strategy that has the potential to reward us instantly. The rules for this setup are pretty simple (sell signals): First, you need three consecutive symmetrical peaks (swing highs). The time that passes between the development of each swing high is more or less the same. Enter a short position once the market turns below the 20% range of the second peak. Place your protective stop loss above the newly formed swing high. * It is required that at the top of the last high or low, a candlestick reversal pattern is formed. Whether it's a Hammer, a Hanged man, a Morning or Evening Star, Bullish or Bearish Engulfing, or another pattern.   Basically, we’re trying to anticipate when the third swing high will get formed. If we wait too long, our profit margins will shrink. Read more about swing trading in forex here. Note* this chart pattern works on the daily chart as much as it works on the lower time frame. We like to trade the Three Little Indians trading strategy on the 5-minute chart.
Education
by Tradingstrategyguides
AUDUSD HOLY GRAILThe Holy Grail Trading Strategy Now, the name of this trading strategy may be controversial, but it’s a simple strategy that everyone can use. The professional trading tools you need to use are: Average Directional Index (ADX) indicator 20-period moving average The Holy Grail trading rules are simple to follow See the rules for buy signals: ADX must break above 30 and rising. Wait for price to retest the 20-period moving average (this will be accompanied by a declining ADX, which must hold above the 30 level). After the price touches the 20-period moving average place a buy order above the high of the candle. After your order is filled, place a protective stop-loss order below the newly formed swing low. Trail your SL to look in profits or take profits at the most recent swing high.
by Tradingstrategyguides
3
PROFESSIONAL TRADING STRATEGIES - One Good Trade at a TimeThe complete guide to professional trading strategies will reveal how to trade against the crowd and become a professional trader. The most efficient professional trading techniques used by hedge fund traders, bank traders, and prop traders will be outlined through this guide. Once you read them, you’ll have an AHA moment. Trading is more than just slapping on a few keyboards or using your favorite support and resistance indicator. Professional traders do more than just that as they well-know this business requires time, effort, and the right professional trading tools to succeed. There are no shortcuts if you want to trade like a professional trader. The good news is that these professional trading techniques can be learned. You don’t need to have a special talent to become a professional trader, but you need to have the right mindset and an actually proven edge. So, if you want to know how to trade like a professional trader, we’re going to coach you in the right direction. Let’s get started! Table of Contents 1 Becoming a Professional Trader 2 How To Trade Like a Professional Trader? 3 Tools That Professional Traders Use 4 Professional Trading Strategies 4.1 The 80 – 20 Trading Strategy 4.2 The Holy Grail Trading Strategy 4.3 Three Little Indians Trading Strategy 5 Final Words – Professional Trading Techniques 1 - Becoming a Professional Trader. Professional traders aren’t born, they are made! And, here is my proof… Legendary trader Richard Dennis, who turned $1,600 into a $200 million fortune has successfully taught a group of traders known as The Turtles. With the Turtle experiment, Richard Dennis proved that anyone can learn how to be a professional trader. Let me tell you a secret… Most hedge fund managers, bank traders, and institutional traders learned to trade profitably from another successful trader. There are a few exceptions that are self-taught professional traders, but these only confirm the rule. Learning to trade like a professional trader doesn’t mean working for a financial institution or trading large amounts of money. A professional trader is someone who over a period of time, has proven he or she can beat the market on a consistent basis. Secondly, you need the winning mindset of a professional trader. Now… If, you might be wondering… Here are a few characteristics of the mindset of a winning trader: Pro traders are comfortable taking calculated risks. Pro traders are self-disciplined traders. Pro traders know how to leave their own personal opinions at the door. Pro traders don’t take losing trades personally. We can definitely add more things into the above list, but most often these are the things amateur traders can’t overcome. Moving on… Let’s see some of the professional trading techniques in action. 2 - How To Trade Like a Professional Trader? According to Brett Steenbarger, Ph .D. Author of The Psychology of Trading and a performance coach every elite trader can be characterized through 6 qualities. You can learn how professional traders trade by emulating these traits: Ability to sustain focus (pro traders are either fast thinkers or deep thinkers). Originality and creativity (while pro traders may use some well-known trading strategies, there is a uniqueness to how they execute that strategy). All pro traders have learned from a mentor or other professional traders. Emotional resilience (treating losses as a learning opportunity). Attention to the details. Always working to become better at this game. So, professional traders derive their edge from all of the above-highlighted points. However, we have kept the best professional trading techniques for last. First, the world’s most talented traders are good at exploiting their edge. What do we mean by this? Simply put it, they are able to recognize what are their strengths and weakness are and then capitalize on those strengths. In other words, a pro trader is doing more of what works and less of what doesn’t work. Let me explain… For this, we’re going to assume that pro trader A from hedge fund ABC has identified that most of his profits come from scalping the stock opening bell. On the other hand, he also noticed that he is doing a terrible job trading breakouts. Now, a professional trader will maximize his strengths by trading bigger sizes on the opening bell. And, at the same time, he will avoid trading breakouts. Other professional trading techniques used by many pro traders are to take one good trade at a time. While all the tools that the professional trader uses are equally important if we were to pick just one rule, this would be: One good trade at a time followed by another one good trade. In his book “One Good Trade – Inside the Highly Competitive World of Proprietary Trading,” Mike Bellafiore explains the characteristics of a good trade. One good trade is a trade that strictly follows your setups and your plan. Let me explain… If you followed your plan, whether the trade yields you a profit or a loss, then that’s one good trade. In other words, the inner workings of a good trade follow the trading rules you have set in place. Of course, if you don’t have an edge, you can follow your trading rule as much as you want; they will produce the same type of results. So, the first thing you need is a profitable trade setup that you know it works. Moving on… We’re going to share some of the tools that professional traders use. Hint: It’s not what you think. 3 - Tools That Professional Traders Use. The reality is that professional traders don’t gain their edge from special tools or special technical indicators. Most of the professional traders use the same trading tools that are available to retail traders as well. So, if there are no professional trading indicators how come a professional trader can make money using the same trading tools as you do, but you still can’t seem to find any type of success? Well, it all comes down to how you use professional trading tools. A professional trader can take the Relative Strength Index ( RSI ) indicator and use it in a very unique way. This type of unconventional thinking is another trait of a professional trader. Check out some professional trading techniques that have an unorthodox approach: Best Average True Range Forex – An Unorthodox Approach How to Trade The London Breakout Strategy With One Trick Breakout Trading Strategy Used by Professional Traders Hedge Fund Strategies and Tools Used on Wall Street Secondly, you’re probably using indicators the wrong way. The problem with indicators is not that they don’t work, but with the fact that you use them in the wrong way. Let me explain… We’re going to uncover the most common mistakes you’re doing when using technical indicators: Using indicators in the wrong context. Using indicators with the wrong settings (i.e. Trading short-term time frames with long-term settings). Moving on… We’re going to share with you some professional trading strategies used by top market wizards. Professional Trading Strategies Note* Some of the professional trading strategies outlined through this section can be found in the book “Street Smart” by Linda Bradford Raschke and Laurence Connors. Moving forward. We’re going to share with you some professional trading strategies used by top market wizards. We’re going to share 3 professional trading strategies that work and give you some hints to pick the one that fits you. Here is the list of what we’re going to write: 80-20 strategy for day trading like a pro, The Holy Grail trading strategy (suitable for any market and TF). Three Little Indians trading strategy (catching trend reversals like a pro). My next posts will be these strategies.
by Tradingstrategyguides
21
PROFESSIONAL TRADING STRATEGIES - One Good Trade at a TimeThe complete guide to professional trading strategies will reveal how to trade against the crowd and become a professional trader. The most efficient professional trading techniques used by hedge fund traders, bank traders, and prop traders will be outlined through this guide. Once you read them, you’ll have an AHA moment. Trading is more than just slapping on a few keyboards or using your favorite support and resistance indicator. Professional traders do more than just that as they well-know this business requires time, effort, and the right professional trading tools to succeed. There are no shortcuts if you want to trade like a professional trader. The good news is that these professional trading techniques can be learned. You don’t need to have a special talent to become a professional trader, but you need to have the right mindset and an actually proven edge. So, if you want to know how to trade like a professional trader, we’re going to coach you in the right direction. Let’s get started! Table of Contents 1 Becoming a Professional Trader 2 How To Trade Like a Professional Trader? 3 Tools That Professional Traders Use 4 Professional Trading Strategies 4.1 The 80 – 20 Trading Strategy 4.2 The Holy Grail Trading Strategy 4.3 Three Little Indians Trading Strategy 5 Final Words – Professional Trading Techniques 1 - Becoming a Professional Trader. Professional traders aren’t born, they are made! And, here is my proof… Legendary trader Richard Dennis, who turned $1,600 into a $200 million fortune has successfully taught a group of traders known as The Turtles. With the Turtle experiment, Richard Dennis proved that anyone can learn how to be a professional trader. Let me tell you a secret… Most hedge fund managers, bank traders, and institutional traders learned to trade profitably from another successful trader. There are a few exceptions that are self-taught professional traders, but these only confirm the rule. Learning to trade like a professional trader doesn’t mean working for a financial institution or trading large amounts of money. A professional trader is someone who over a period of time, has proven he or she can beat the market on a consistent basis. Secondly, you need the winning mindset of a professional trader. Now… If, you might be wondering… How to think and trade like a pro trader? You may want to check out this trading mindset PDF. Here are a few characteristics of the mindset of a winning trader: Pro traders are comfortable taking calculated risks. Pro traders are self-disciplined traders. Pro traders know how to leave their own personal opinions at the door. Pro traders don’t take losing trades personally. We can definitely add more things into the above list, but most often these are the things amateur traders can’t overcome. Moving on… Let’s see some of the professional trading techniques in action. 2 - How To Trade Like a Professional Trader? According to Brett Steenbarger, Ph.D. author of The Psychology of Trading and a performance coach every elite trader can be characterized through 6 qualities. You can learn how professional traders trade by emulating these traits: Ability to sustain focus (pro traders are either fast thinkers or deep thinkers). Originality and creativity (while pro traders may use some well-known trading strategies, there is a uniqueness to how they execute that strategy). All pro traders have learned from a mentor or other professional traders. Emotional resilience (treating losses as a learning opportunity). Attention to the details. Always working to become better at this game. So, professional traders derive their edge from all of the above-highlighted points. However, we have kept the best professional trading techniques for last. First, the world’s most talented traders are good at exploiting their edge. What do we mean by this? Simply put it, they are able to recognize what are their strengths and weakness are and then capitalize on those strengths. In other words, a pro trader is doing more of what works and less of what doesn’t work. Let me explain… For this, we’re going to assume that pro trader A from hedge fund ABC has identified that most of his profits come from scalping the stock opening bell. On the other hand, he also noticed that he is doing a terrible job trading breakouts. Now, a professional trader will maximize his strengths by trading bigger sizes on the opening bell. And, at the same time, he will avoid trading breakouts. Other professional trading techniques used by many pro traders are to take one good trade at a time. While all the tools that the professional trader uses are equally important if we were to pick just one rule, this would be: One good trade at a time followed by another one good trade. In his book “One Good Trade – Inside the Highly Competitive World of Proprietary Trading,” Mike Bellafiore explains the characteristics of a good trade. One good trade is a trade that strictly follows your setups and your plan. Let me explain… If you followed your plan, whether the trade yields you a profit or a loss, then that’s one good trade. In other words, the inner workings of a good trade follow the trading rules you have set in place. Of course, if you don’t have an edge, you can follow your trading rule as much as you want; they will produce the same type of results. So, the first thing you need is a profitable trade setup that you know it works. Moving on… We’re going to share some of the tools that professional traders use. Hint: It’s not what you think. 3 - Tools That Professional Traders Use. The reality is that professional traders don’t gain their edge from special tools or special technical indicators. Most of the professional traders use the same trading tools that are available to retail traders as well. So, if there are no professional trading indicators how come a professional trader can make money using the same trading tools as you do, but you still can’t seem to find any type of success? Well, it all comes down to how you use professional trading tools. A professional trader can take the Relative Strength Index (RSI) indicator and use it in a very unique way. This type of unconventional thinking is another trait of a professional trader. Check out some professional trading techniques that have an unorthodox approach: Best Average True Range Forex – An Unorthodox Approach How to Trade The London Breakout Strategy With One Trick Breakout Trading Strategy Used by Professional Traders Hedge Fund Strategies and Tools Used on Wall Street Secondly, you’re probably using indicators the wrong way. The problem with indicators is not that they don’t work, but with the fact that you use them in the wrong way. Let me explain… We’re going to uncover the most common mistakes you’re doing when using technical indicators: Using indicators in the wrong context. Using indicators with the wrong settings (i.e. Trading short-term time frames with long-term settings). Moving on… We’re going to share with you some professional trading strategies used by top market wizards. Professional Trading Strategies Note* Some of the professional trading strategies outlined through this section can be found in the book “Street Smart” by Linda Bradford Raschke and Laurence Connors. Moving forward. We’re going to share with you some professional trading strategies used by top market wizards. We’re going to share 3 professional trading strategies that work and give you some hints to pick the one that fits you. Here is the list of what we’re going to write: 80-20 strategy for day trading like a pro, The Holy Grail trading strategy (suitable for any market and TF). Three Little Indians trading strategy (catching trend reversals like a pro). My next posts will be these strategies.
Education
by Tradingstrategyguides
TRADING 800 SMAHere is a story about the 800 SMA . When you begin your trading session look at each pair you are going to be trading on the 4 H chart. See if any pairs are stuck on the 800 sma . They probably won't move far for 25 bars. Avoid. What ever short time frame you trade from and what ever pairs you trade, make a list of pairs that have been away from the 800 sma for 24 hours or more. Also add to the list any pairs that have been stuck around the 800 sma for 25 BARS and are ready to break away. This helps find what pairs you want to focus on during the day with the rest of your trading strategy. On my chart you will see price come down to the 800 sma 3 different times. If price hesitates by the 800 for several bars then it may get stuck there for 25 bars. If price bounces away from the 800 sma when it comes down to it then price is still in motion and can set up some trading opportunities for your strategies. We have many different strategies to learn on our blog and we are constantly coming out with new strategies for traders to learn every week.
Education
by Tradingstrategyguides
EURAUD 10M/15M PIVOT STRATEGY LONG TRADEBest Pivot Point Strategy PDF Pivot Points are one of our favorite trade setups. We’re going to show you what the best method is to trade pivot points through our best pivot point strategy PDF. The pivot point strategy doesn’t require significant trading capital. It can yield positive results right away. More often than not retail traders use pivot points the wrong way. They usually sell to quickly when the first pivot point resistance level is reached and buy too soon when the first pivot point support level is reached. This is the wrong way to trade because you’re trading against the prevailing momentum which is one of the reasons why retail traders lose money. Now, before we go any further, we always recommend taking a piece of paper and a pen and note down the rules of the trading strategy. For this article, we’re going to look at the BUY side. Step #1: Trade only at the London open or the 8:00 AM GMT The best time to trade the pivot points strategy is around the London session open. However, it can be used for the New York session open with the same rate of success. We trade the London open because that’s the time big banks are opening for business, and the smart money operates in the market. Note* We’re going to use the 15-minutes time frame and trade based off of the daily pivot points. Step #2: Buy at the market if after the first 15-Minutes (10M) we’re trading above the Central Pivot Point If after the first 15-minutes (10M) into the London trading session we’re trading above the central pivot point. Then we buy at the market. The trade logic behind this rule is simple. Once the market is displaying a disposition to trade above the central pivot point, we assume that the bullish momentum will continue to persist. If the price of any currency pair is trading above the central pivot point, then the bias for the day is bullish and we’re only looking for buying opportunities. (Opposite if below and bearish bias) Important Note * If after the first 15-minutes into the London session we’re too close to the first resistence level we better skip this trade opportunity because the profit margin has tightened. The next important thing we need to establish for our day trading strategy is where to place our protective stop loss. Step #3: Hide your Protective Stop Loss 5-10 pips below the Central Pivot It’s essential to have a good strategy for your stop loss as much as to have an entry strategy. If the price breaks below the central pivot point then the sentiment has shifted on the bearish side and it’s wise to get out of any long trades. However, in order to accommodate any false breakouts, we also use a buffer of about 5-10 pips below the central pivot point for our SL. Step #4: Take Partial Profit #1 at Resistance 1; Take Partial Profit #2 at Resistance 2. We employ a multiple take profit strategy because we want to make sure we give the market the chance to reach for deeper support levels. The first pivot point Resistance level is the first trouble area and we want to bank some of the profits here. We also advice moving your protective stop loss to break even after you took profits. At the second pivot point, the Resistance level is where we want to liquidate our entire position and be square for the day. Note** the above was an example of a BUY trade using the best pivot point strategy PDF. Use the same rules for a SELL trade – but in reverse. You absolutely need to start using a pivot point strategy as a complementary tool to your support and resistance strategy if you’re not doing it already. These pivot point trading secrets are very powerful price-based support and resistance levels. The best pivot point strategy PDF signals a good entry point near the central pivot point and also provides you with a positive risk to reward ratio which means that your winners will be higher than your losing trades.
by Tradingstrategyguides
PETS 1D ASCENDING TRIANGLEAscending Triangles are repeatable trading chart patterns. Ascending chart patterns will have a directional bias depending on the previous incoming trend. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. Whatever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
NASDAQ:PETS
by Tradingstrategyguides
AUDCHF 1D DESCENDING TRIANGLEDescending Triangles are repeatable trading chart patterns. Descending chart patterns will have a directional bias depending on the previous incoming trend. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
Short
by Tradingstrategyguides
2
PLNT 1D BULL FLAG LONG TRADEBull Flags are Ranges which are repeatable trading chart patterns. Bull Flag chart patterns will have a directional bias depending on the previous incoming trend. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. Whatever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
NYSE:PLNTLong
by Tradingstrategyguides
RCL 1D BEAR FLAGBear Flags are a Ranges pattern which are a repeatable trading chart patterns. Bear Flag chart patterns will have a directional bias depending on the previous incoming trend. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. Whatever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
NYSE:RCLShort
by Tradingstrategyguides