And this looks like a Descending triangle on your charts…. You have the same target profit in both scenarios, but a huge difference in potential risk to reward. Use a trading alert to inform you when the price has reached your desired level.
If you want to know how to do it, TradingView has one such feature. Instead, a better way is to set your stop loss a buffer away from Support and Resistance, away from the noise of the markets or everyone else. And this same concept applies to Trendline , moving average , and etc. If you want to learn more, go watch this training video below that shows you how to set a proper stop loss step by step ….
One way to set your limit orders is in front of Support or Resistance, swing highs or lows, to increase your odds of getting filled. A pullback is when the price temporarily moves against the trend. And this provides an opportunity for traders to get on board the trend.
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These pullbacks usually have shallow retracement as not many traders want to trade against the strong momentum. And even if it does, it will attempt to shake out as many traders as possible before continuing its move. If you agree that the market seldom comes back to re-test your level, then it makes sense to enter your trade on the breakout, right? This means the market can retrace much deeper than you expect, and shake you out of your trade before it reverses back in your direction. Now you might get a later entry, but it improves your win rate which helps your trading psychology.
Well, I call this a False Breakout.
If the price consolidates at resistance, but the higher timeframe is in a downtrend, then the breakout is probably not going to happen. Instead, the market is likely to reverse down lower. Now, if the price consolidates at resistance and the higher timeframe is in an uptrend, then the odds of it breaking out is higher. I do miss a lot of trades because I like to see a return to the support or resistance.
What I look for is a wick cutting through the support or resistance and a close above resistance and below support.
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I like to trade from the 4 H but use support and resistance from the daily. Thank you Raynor for your proper explanation. These 12 tips summarize trading whether for professional, experienced or newbie traders. I bet I struggled with most of these until recently. Severally Limit orders have hurt me badly when I relied purely on Fibs and candlestick formations to time end of Retracement in order to trade in the direction of the main Trend. Thanks Rayner. I have lost over Rk so far to fake Forex gurus and placing wrong trades due to lack of trading experience and teaching like yours.
Question I : I take in that you really do promote looking at higher time frame before taking any position. How do I do that during back testing, because it seems like most of the trading software do not incorporate multiple time frames as one of the trading building block for back testing my system? Is it possible to be a profitable trader without looking into high time frame by just only looking into the underlying trend from a single time frame?
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There are simulators that allow you to look at higher timeframes for backtesting for example Forex Tester. Hi Rayner Thanks for the good work God bless you. But as to the limit order,is it not risky to enter a trade when the candle have not close? Like if a bearish engulfing candle is forming at a resistance can one enter the trade when the candle is still forming? Wow, nice information about Forex Trading.
You have shared a lot of important points that can give a lot of ideas to a person for earning big profits in the online trading market. Hello Rayner. Thanks alot for these amazing tips.
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Please could you do an article specifically for day traders and scalpers. Thanks alot Rayner. You are my mentor, a big inspiration. Whenever i begin losing my head when it comes to trading, i always read your price action trading strategy. I must have read it a hundred times since I got it.
Big thanks man.
Knowledge can help advance your ability in currency trading to far beyond that of your peers. Often, those who know the tricks of the trade can find innovative and interesting ways to increase profit potential. Like any new activity or pursuit, do your research and figure out how the masters managed to get where they are today. The trading world moves fast.
There are hundreds of tools out there to help traders keep on top of events both in and out of the market, and some can actually help you predict the changing flow of trade so you can adjust your investment accordingly. Calendars, in particular, keep track of major dates in the financial year and keep tabs on the movement of the market. Moreover, calendar tools can keep track of events happening outside of the trading world that might ultimately affect the success of your trade. Calendars can also help you reduce uncertainty in future events by providing real-time updates on the trading world, particularly announcements that affect all investments such as changes in GDP or the release of the CPI Consumer Price Index.
Like any long-haul activity or investment, discipline is the key to long-term success. Of course, there is a myriad of books and videos about trading that you can put into your roster of tips and tricks, but knowing these techniques might not bring you the success you're looking for. If anything, emotional control is the skill you need to be successful and make a profit in trading.
Keeping a cool head is imperative when dealing with trading, which can be unpredictable at best. One moment, you're flying high, the next you've crashed. Maintaining emotionally calm, particularly in the face of loss or adversity, can help you make smart decisions during quick-thinking moments. Find what will keep you on the straight and narrow and it might be more useful than any other secret in the trading business. Create a strategy and set realistic goals. If you're expecting the world in your first trade, you're more than likely to be disappointed. Small wins can slowly build up your confidence and skill in trading, which can lead to greater pay-off in the future.
Contact us at Trading Education for more advice. If you enjoyed reading this article from Trading Education, please give it a like and share it with anyone else you think it may be of interest too. Source: www. Forex Trading Articles. Last Updated March 27th
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