Listen team had a Stoke a low risk, high reward entry point. Welcome to listen team. My name is Sam ADA. I'm a global macro Currency Trader and owner of FX Renu calm. This is the advanced forex course for smart traders. You've done your homework, you found a damn good set up and now it's time to execute.
The temptation is to jump in straight away. But now is the time for patients. It's time to stalk your entry like the cheater stalks its prey. As a forex trader, you should have an array of simple entries at your disposal that help you uncover low risk high reward times into into your chosen possessions. This will allow you to wait patiently for time to enter they will improve the odds of you having a winning trade, while at the same time maximizing rewards and minimizing risks. Calm our Shea market was calm O'Shea said I think implementation is a key enabler.
Thing implementation is more important than the trade idea behind it. Simple is better decisiveness is critical when it comes to your entry in a fast moving market. Or if you are trading with the trend, you need to be ready to pull the trigger, or else you could miss out on the move. Confused, confusing and complex entry approaches to be avoided. You don't need five indicators on a chart to line up perfectly to time your buy. Instead, look to use toes and chart patterns that help you to recognize the market for what it is and allow you to execute flawlessly when the time is right.
With entries simple is very much better. market was a band top said stoking means making sure the odds even more in your favor by paying attention to the smallest timeframe possible for you. One of the goals of a patiently stocked entry is to improve the risk reward on the trade by moving to a low timeframe allows you to time your entry so that you can tighten your stop loss. If you have a tighter stop loss, you can take a larger position of the same amount of dollars risk meaning your profit on the position can be much greater. If you have a setup that gave you the potential to make 300 pips with a risk of 100 pips, you have a risk reward ratio of one to three. If during your process of stalking an entry, you were able to get into the trade with a risk of only 50 pips, then you would have a potential risk reward on the trade of one to six.
On this weekly chart of the Euro USD, we have a double top formation of resistance signaling a change in trend. If our profit target is on the next level of support. We have a rest broad ratio of one to 1.6, which is not great. If instead we still can entry on the four hour chart, we can enter the trade with a significantly improved risk reward ratio of one to 3.61 market was it James Rogers If I just wait until there is money lying around the corner in all I have to do is go over there and pick it up. I do nothing. In the meantime, do nothing unless there is something to do.
Many traders don't trade to win, they trade to get something else that they want from the markets. So instead of patiently stalking an entry, they feel the need to always be playing, but you can't rush the markets. If you try and force a position, it's pretty much guaranteed to come back and bite you. If you don't know what's going on. If you don't have a superior risk reward trade lined up, then you should not be trading Simple as that. If you have made a profit, there was no need to go out and place a new trade in a rush of overconfidence, it will come if you give it time.
If you have a losing trade, you don't need to do something to make it back. In fact, that is the worst thing you can do. Revenge trading is not a fruitful exercise. To get comfortable with doing nothing. Make sure you send to yourself after a winner or loser And only place of trade if you have a great deal of conviction and its success. A good trade should feel like you're shooting fish in a barrel, not like you're taking a punt or hoping it will go your way.
Is there a fundamental catalyst when you assess an entry point it's good to check if there is a fundamental catalyst that is coinciding with the entry point. For example, if the price is breaking out, is it because of a positive surprise and some economic news that has the potential to move the currency further? If there is a good fundamental catalyst then it can improve the probability of your entry success. You might even want to increase the position size on trades that have strong fundamental reasons for the entry. market was in MADI Swartz said I developed and synthesized a number of indicators that I use to determine when the market was at a lower risk entry point. Here are a collection of entries you can use for your trading system.
These can be used both on the original timeframe of the trade or they can be used on a lower timeframe. So you can be Be precise in your entry. candlestick patterns. candlestick patterns can be excellent representations of the short term buying and selling pressure in the market and can be used to time entries. There are a lot of candlestick patterns and formations but for our purposes here we will only look at two. Just remember they only tend to work well if they're used in conjunction with a setup.
The first pattern is known by a few names, but we will call it a pin candle. To see this pattern you'll need to switch your chart to a candlestick chart. A pin candle occurs when there is a sharp reversal of the price within a time period and as a strong sign that the price is about to change direction and reverse. You can see here an example of what a pin candle looks like. As you can see the candle has a small body and a long tail or wick you would enter into a trade when the direction of the market especially if there is a fundamental reason for doing so. The next candlestick pattern that is of interest is called a bullish or bearish engulfing.
Candlestick pattern. Again, this pattern is prevalent at market reversals. Here's an example of bullish and bearish engulfing candles. The key in each case is the second candle in the pen is larger than the first the second candle should engulf the first candle. If you get a bullish engulfing it is a sign to buy if you get a bearish engulfing it is assigned to sell. He can see candlestick entries in action on the Great British Pound USD.
During breakouts after consolidation, a breakout from consolidation entry is used when an existing trend pauses and consolidates for a period of sideways movement before the train resumes. Ideally, what you want to do is look for a consolidation set up and then move to a lower chart the stock the entry. The entry occurs when the price breaks out and closes above the range where if this entry you should generally have a tight stop loss as the price will either breakout and continue in that direction will fall back within the range quickly. low volatility breakouts patch my favorite type of entry. The low volatility breakout is epitome of a low risk high reward trade idea. When prices compress into a tight range they can expand rapidly in a strong directional move.
This gives you a good place to put your stop loss if the trend continues, it can result in a big one. low volatility entries can also be good situations in which to scale into positions as the move goes for you. to trade the setup, I use Bollinger Bands simply wait for the bands to compress and then take a position once the price breaks out. Here's an example on the Euro USD currency pair. The old fashioned moving average crossover, it's very easy to identify a moving average crossover, which is a big plus for using them as entries. You can also vary the speed of the moving average to suit your objectives.
The way a moving average works is to identify the strength of the trend once the train reaches a certain velocity The faster moving average will cross over the slow one, which gives you a signal to take a position. This means you're always buying or selling with the trend. Moving Average crossover can also work as a counter trend entry. If the price bounces off a support or resistance level and the moving averages cross, it could be a good time to enter. I'd like to use a three period moving average combined with a seven period moving average. Once the three period moving average crosses over the seven period moving average provides an entry signal.
I will also displace the shorter moving average one period foreign time to make it easier for live trading. Here it is in practice in a trained on the British Pound USD. As you can see on the chart, the moving average crossover can get you into some nice trends. Simplicity will have its rewards. One of the best ways to master the art of trading is to pick and choose a limited number of techniques first and then get to grips of them. Select one or two injuries that you like and practicing.
Be patient when your hand for injuries and keep them simple so you can act decisively when the time comes. In essence coursework you select the entry points for your trading system. I'll see you in the next lesson.