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LONG AUDCADHere on the AUDCAD we have what i see as a good opportunity to hop on what i am hoping to be a reversal or just a brief retracement from our bearish move on the higher time frame. I did alot of different analysis in order to get involved in this trade, so instead of typing it here i have decided to do a video tutorial on the analysis i did for the trade on my YOUTUBE channel in the hopes that anyone who is struggling at trading will get to see how to do top down analysis, price action symbols and other indicators to spot reversals and trend continuation opportunities. Go to my channel and subscribe so that you are alerted when i publish the video. Good luck trading! YOUTUBE CHANNEL LINK: www.youtube.com
by StevenH
1
Technical Analysis Basics: Trends, Support and Resistance #forexWhat is an Uptrend: Uptrend: A series of higher highs and higher lows. Each highs surpasses the previous high and each low is either above or equal to the previous low. If you are able to spot this structure on any chart, then you can clearly say the trend is up. The opposite is true for a downtrend. How the trend is reversed? A break of the structure of higher highs and higher lows is the main threat for an uptrend and could lead to a reversal from an Uptrend to a Downtrend. Note that its not always the case some times the trend resumes to create a new highs or move in sideways manner. Support and Resistance Support and resistance levels are simply those highs and lows that you draw on the chart. For example. The latest higher low in the chart above is the most important support level in the uptrend. Why i say the most important? because simply if the price breaks below that higher low, the the structure of higher highs and higher lows is no longer intact, as we will have a new low that's below the latest higher low as shown on chart. Read(2) on chart. If that happens, a trader should be very careful, as the price may create a new lower high now somewhere below the latest high and resume the move lower to create a new lower low. My best regards Technician Subscribe to my trading portal thefxchannel.com
Education
by Technician
21
Technical Analysis Basics: Support & Resistance #forexThis is a clear illustration for how support and resistance change roles when a breakout occurs. This is not a rule that most happen, but it usually does. Starting point at the latest higher low of the previous bullish trend.(It was a typo on chart, its higher low not higher high) When a breakout below support materializes, the level usually reverses its role to resistance. My best regards Technician Subscribe to my trading portal thefxchannel.com
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by Technician
11
This is How the 5-0 Pattern Looks Like #forexThis is not a forecast that the pattern will complete. This is just an illustration of the harmonic 5-0 pattern. (Price could go in any direction from current levels). The Pattern The first requirement for the pattern is a new low that exceeds the prior low( Point B and X) Point B should be within the range of 1.13 and 1.618. Shouldn't exceed 1.618 extension of wave XA A rally should followe now, creating wave BC, where it should reach at least near the 1.618 extension of wave AB, and can reach up to 2.24. A correction of wave BC should follow, the correction should complete wave CD at point D. Point D should be around 0.5 retracement of Wave BC. Thats the "Potential Reversal Zone" OR PRZ of the pattern This is not a place where you immediately Buy. Its a place to look for buy confirmation signals over the lower time intervals. As you can see, the pattern on chart is still a potential pattern, and far from complete. So that doesn't mean that we should look to short now looking for a move to point D. Good luck Exclusively Subscribers to my mailing list will get one month access to my trading account . subscribe here thefxchannel.com , My best regards Technician
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by Technician
33
Spotting Support & Resistance through Candles #forexHere is another example of how the high and low for high wave candles are usually trade-able support and resistance levels. I think the chart explains it all. When spotting a long legged candle(long shadows) its important to keep an eye on the high and low of the candle as potential key levels of resistance and support. In many cases those levels act as barriers for the price action and could provide good trading signals if accompanied with other technical analysis tools within your whole strategy. Exclusively Subscribers to my mailing list will get one month access to my trading account . subscribe here thefxchannel.com , My best regards Technician
Education
by Technician
#AUDJPY: How to Spot a Potential Trade(Example) | #forex*Correction: It's a LH not LL on the weekly chart This is an attempt to demonstrate one way I use to approach the market and find potenital trades. Starting from the higher time-frame - Weekly Chart identinfied highs and lows to clearly identify the trend(Bearish) Drawn the main falling trend line, and the fibonacci retracement levels. The latest upside pullback have reached the trend line and near the latest "L" and 38.2 retracement level The price formed a long-legged doji candle then a shooting star candle near that resistance area and trend line The price is retesting the low of the doji candle which is in my view key to a bearish resumption of the overall bearish trend. Going to the lower time-frame - Four-hour Chart I have identified all the higher highs and higher lows for the recent major upside pullback. The price has recently broken the latest "HL" and thus has damaged the structure of higher highs and higher lows. and started a new possible structure of lower highs and lower lows. A pullback towards the area of interest or near that, then a bearish pin bar or a double top pattern could be the trigger for my short position, If no confirmation, no trade ----------------------------------------------------------------------------------------------------------------------------------------------------------- Be one of the first members of my new trading portal, check my new website thefxchannel.com , vote and subscribe. Thank you Good luck, keep your stops tight.. twitter.com www.facebook.com plus.google.com My best regards Technician
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by Technician
15
Trading? Here are 10 Things You Should Consider1. Trading is not a get rich quick scheme. It is a normal investment that gets traders return on capital. Have you ever met a trader making double-digit percent return per month on a consistent manner? Trading professionally with proper money management would likely get you a return of few percents a month. From my personal experience a 3-5 percent return on capital per month is a very realistic number. So if you’re that kind of person who wants to “make a killing” trading, please reconsider your expectations. 2. You should be well-capitalized. Small accounts will probably burn you. This point is correlated to the first one. let me illustrate with an example: Suppose that you have a $30,000 trading account. According to the 3-5 percent return per month rule, that would give you 1000-$1500 return per month, which is a very good number, relatively speaking. Now let’s assume that you have a $5,000 account, according to the 3-5 percent rule, that would return 150-$250 per month. In the second example(smaller equity), the return would likely be unsatisfying for someone looking to trade for a living. Would it be for you? Wouldn't you break your money management rules and take more risk to increase that return? 3. Technical Analysis doesn't work all the time. Assumptions we make will always have a percentage of failure. The main goal is to keep your risk limited, your targets bigger than your risk, looking for consistent profit on the long run. 4. Trading is not about forecasting the market. Do not try to forecast where markets are headed all the time. What a trader does is wait for the market to GIVE him certain conditions that validate a trade. (Don’t trade under the market rules, trade under your rules.) Do you feel sometimes that you're lost and don’t know what to do? it's probably because of this. 5. Limit your risk. If you did use stop loss on your trades within the past year, but you didn't and took excessive risk only on one trade, this single trade might wipe out all of the profits you gained through the year. How many times did you ignore your stop loss convincing yourself that you will close at a better price? It may have worked sometimes, but what if the price goes against you more and more? Are you mentally strong enough and able to close at a bigger loss? You probably won’t, until forced to close on a margin call. 6. Don’t over analyze. Over analysis and complicating your tools will lead to confusion and is not necessarily efficient. 7. Ignore your bias Initiating a trade requires technical evidence, three, four or five conditions that occur concurrently. 8 . Always use a top-down analysis approach. Start from the higher time frame to the lower time frame. The higher the time frame the more strong and invulnerable the trend is, and the more strong and invulnerable the support and resistance levels are. 9. Trend-trading increases your chances of success. Trading setups that occur within the context of the trend tend to have a higher success rate than those against it. 10. Don’t give up when you encounter a losing streak Yeah it can go up to 10 losing trades… Don’t worry, it’s normal in trading. Hope you found it useful and enjoyable... If you have points that you would add to this, I would be happy to hear them, please comment and discuss.. Be one of the first members of my new trading portal, check my new website thefxchannel.com , vote and subscribe. Thank you twitter.com www.facebook.com plus.google.com My best regards Technician
Education
by Technician
241
Watch This Candle: #AUDJPY Hammer Weekly | #FOREXIntroducing another posts type named " Watch This Candle", I will try to spot and explain the main important candlesticks patterns. I wish you like it. If you do please comment and agree so i continue... ----------------------------------------------------------------------------------------------------------------------------------------------------------- Candlestick Pattern: Hammer Prior Trend: Down Implications/Use: Bullish reversal, Bullish correction, good for scalping Introduction One of the most powerful tools in gauging shifts in market balances, the hammer candlestick pattern is one of the patterns I personally find extremely useful in the process of determining trend reversals. Definition There are plenty of candlestick patterns; however the hammer is of the most illustrative. Hammer candles form when a security moves sharply lower after the open, but rebounds to close significantly above the low of the session. The shape The Hammer has a long lower shadow with a small body, the lower shadow should at least be double the size of the body, and the body can be green(up) or red(down), however through my experience I find the ones with green body more reliable. The Hammer should be preceded by a clear downtrend or at least several down days. Note: breakouts below the low of the hammer usually lead to further bearish movement, and confirms bearish continuation. $$ It's strongly recommended to always use candlestick patterns in conjunction with other technical tools to increase the chances of success. For example, a hammer near a support level or the 50-days Simple Moving Average. Note: breakouts below the low of the hammer usually lead to further bearish movement, and confirms bearish continuation Guys, please check my new website thefxchannel.com , vote and subscribe , thank you...
Education
by Technician
36