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teacher avatar Muzammil Ijaz, FOREX,Binary Options Trader

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Lessons in This Class

14 Lessons (3h 5m)

    • 2. Setting yourself up for Success





    • 7. Trend Channel Pocket Strategy








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About This Class

Learn Advanced Forex Trading Strategies Based on Price Action!

Welcome to our Advanced Forex Strategies Course. In this course, you’ll learn a number of advanced trading strategies that you can use on the Forex markets.

Many of these strategies are based on price action and include step-by-step guides on how and where to enter your trades. The lessons include details information on where to set your stop-loss, entry and exit levels.

What will you learn?

  • 24 Forex strategies designed to help you as a trader
  • Where to set you entry, exit and stop-loss levels
  • Step-by-step lessons with live trade set-ups and examples
  • Forex strategies based on price action, indicators and major economic news

Meet Your Teacher

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Muzammil Ijaz

FOREX,Binary Options Trader


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1. INTRODUCTION TO THE ADVANCED FOREX STRATEGIES COURSE: but you're gonna learn in the advance forex strategist works. We're gonna cover a lot of strategies. Strategies build on one another. You could use them to use them independently. But each one is gonna teach you how to beat the market a bit better and offer insights into your overall trade, so allow you to build on your skill sets. You can learn to anticipate price moves when we get toward the end of the course, you're going to be able to do that. You're gonna have enough information to be able to read how the prices moving, whether it's moving with conviction. If it's likely to turn. And by using all that information, you can get much better entry points with low risk and high reward potential, which is exactly the opposite. What most people think. Those people think that you cannot anticipate anything, and there's where you have to take these horrible entry points, and that's simply not true. By anticipating what we believe the market's going to do and acting on that with conviction , we get great entry points and small risk large profits, so keys to success we're gonna look at. So that includes money management position size and avoiding certain common strategies which just don't work. There's a lot of information out there which just isn't quite accurate in terms of strategies that people are using, which they just say, You know, you have to trade this way and it's simply not the case. We're gonna go over some of those Uh huh, four strategies that are just commonly taught and we'll show why they don't work. And we're gonna give you obviously a host of alternatives. Each video slides that start to show the concepts similar to what you're looking at now is that you can easily just click back in the video review if you have a question. So we're gonna go over those concepts right at the beginning so you can easily go through. After is you want each video as extorts. Historic itself is the trades. You can see them in practice, should give you enough to be able to go there and start practicing these methods, which is the next point. Training requires work, and you will need to take time to practice these strategies to get good at, especially as we get toward the end, it becomes more you're building on your No. And so you need to get in there really practice in cream these concepts, as opposed to simply reading it, saying yes, I know that. I just cause you wrote a book on fixing a car doesn't mean you actually know how to fix a car. Trading is absolutely no different. Um, we're gonna look at these strategies, but then you're gonna have to take some time, actually go in practice in a temple account, get good at them before you start implementing those real money. There is so much weight. There's so much information, ways to enter ways to exit trade setups that you'll be able to find a way of trading that works for you, your personality, your account side. So I've taken all traders into consideration and try to give you while the strategies I provide are concrete, they can also be flexible in the sense that I have given you one entry method with one strategy which could potentially work with another strategy as well. So you have a a whole host of ways that you can take these strategies and make them your own. Tweet them a little bit so I give you that option. And as we go through the videos, especially toward the later part of the course, I show you how to do that and give you examples of how you can alter the strategy slightly to suit your needs. 2. Setting yourself up for Success: video Siri's We're gonna Look a total of 23 4 X strategies plus odds enhancing video. That's gonna be the final video where we look at a few interpreting price actions that you can really find two year trading, this video probably not the most fun of all the videos were going to do. But this is stuff that you really need to know if you want to be successful in forex trading. So the first thing we're gonna look at is we always place a stop loss in our trades. Each strategy has its own stop loss, and in each of the videos, I'll show you where to place those stop losses. The stuff lost controls your risks that were not letting our losses get out of here. We put a stop loss so immediately with the trade this way, we know our risk is controlled and we don't have to worry about it. All strategies also have a target price or target area where we're looking to exit profitable trades. Nothing's worse than you have a profitable trade running in your saver and you don't take your profit, and then it comes all the way back. We want to know what our profit potential is before we take the trade. So he set a price target. We have our stop as well. Then we can look at a reward relative to our risk. So if we're risking 20 pips and our potential award is 40 pips, that's our target. We know that our risk reward ratio is favorable. We're making more, are winning trade and we're losing on the losing trade. And that's the kind of set up we want free to our trades. Trading is based on a plan. There's no question. Once we're in the trade, we know where I stop is. We know where our target is. There's no question we can sit back, and it's much less stressful this way than thinking while you're in the trade, where am I going to get out? By setting a target setting a stop. We take care of that money management and position size her traders. Best friend. We want a limit risk toe 1% of your account portrayed. So what that means is on a $5000 account, we're not going to risk more than $50. So risk is the difference between your stock price and your entry place multiplied by the pit value and the number of lots of trade. So that may sound a little complex, but it's actually not. The reason. We only risk 1% of our trade is that even great trading systems can have a string of losses . Great traders have strings lost. If you lose five or six trades in a row, only risking 1%. You only drawn down your account five or 6% even risking 10% on a trade and you lose six in a row. You have more than your account value is gone. So let's look at a position size example on $5000 account. As mentioned, you can risk $50 portrayed. So if they were buying the euro ust we find that I said it that we like we place in order to buy. At 1 39 90 we place a stop 25th blow at 1 39 7 so this may be reviews for so you, but that values we have three different pit dies in the forex market. You can take a micro lot where each pip movement will give you a profit or loss of 10 cents . A mini lot fluctuates. It's a dollar and a standard lot when it means a pip is going to give you a profit or loss of $10. So for this trade, with a $50 risk limit and a 20 pit stop, we can take 25 micro lots. So what's the easiest way to figure that out if you're using less than a $10,000 account, typically you're gonna be trading at micro lots or many lots. But I always calculate it in micro lots because after the fact, that's very easy to convert that to many lots. So we have a $50 risk limits, so we take $50 divided by 20 pips, times 10 cents so 20 times 200.1 it's too. So 50 divided by two is 25 so it's 25 micro lots or 2.5 many lots. If you notice the maker on many, many is simply 10 times bigger than a micro. So if you divide this by 10 2.5 million watts, let's say you have a larger account $30,000. You have a $300 risk limit portrayed with a account over 10,000 you're typically going to be dealing in mostly many watts. So instead of 10 cents were using the pit value of $1 for a many. So 300 divided by 20 times one is 20 that it's 15. Many lots, 300 divided by that is your flying tune position size for the exact stop that you're using and your exact account size. We do this for every single trade. That way, you know that you're risking less than 1% your account for trade. Every tree is planned ahead of time. We're not making impulsive or emotional trading decisions. That's why you're watching the strategy videos, why we want to have a strategy because it puts the odds in your favor. We have a detailed plan for when and what we're gonna trade on. What time frame? How we're gonna enter. That's the strategies that we're gonna cover. And your max moments portrayed, which we just just discussed is 1% portrayed. This is your training. Glad we don't deviate from right. This plan down was you see strategies you like. Detail it out When you gonna trade it. What time frame. Are you gonna traded on what parents are you can treated. So in the next video, we're going to start to look at strategies. Wow, I am telling you how to trade these strategies. I want you to test the mote in a demo account before trading with real capital. This way. You know, if the strategy works for you are something I may want to trade it on an hourly timeframe or recommend trading on an hourly time for him. But you're a day trader. So you want to try trading about five minutes? It may work on a five minute timeframe tested out in the devil here. Forex trading does involve substantial risk of loss. And these videos are not personal investment advice. Make sure you're only using risk capital, the trade. If your are using money that you need to trade, that can put a lot of undue stress on a trader. Trading can be stressful as it is. So don't put that out of stress by trading with money that you Absolutely. It's a little review. Every trade has a stop in a target. We're gonna discuss exactly where those go in the videos, but those orders must go out. When you place your trade, we only risk 1% of our account on our trade. That way, even string losses occurs. It won't significantly draw down our account. Onley take trades based on a well laid out plan if we see something that we want to trade, but we don't have a specific strategy for it, we leave it alone. We're going to give you 23 strategies to trade. There is no reason to make impulsive trading decisions or emotional trading decisions. We're giving you the strategies used them on Lee. Use only take trades where you're using a well defined strategy. Test out strategies before using them to make sure that you're able to actually implement them and that they work for you on the time frame that your trading and in the four X payers that you're trading in each of the strategy videos. I'm gonna look at the time for insight we trade these on, and trading does involve substantial risk of loss only trade with capital that you can afford to lose. So in the next video, we'll start looking at strategies to review the material in this video and keep coming back to it. This is the stuff that's really gonna make you effective as a trader and ultimately successful. We can have the best strategy. But if you start risking too much on the trade, it's gonna it could wreck the strategy. So you need to know this stuff inside out and backwards before we implement strategies. So until next time, happy tree. 3. TRADING WITH THE TREND STRATEGY: so the trend trading is where most the money is. There are multiple ways to trade trends, but this strategy is a staple. It gets us in early, keeps risk small, and profits are larger than losses. It's usable in all timeframes for day trading or swing tree. So when uptrend occurs when the price is making higher swing highs and higher, sweet, close down train occurs when the price is making lower swing lows and lower swing highs. A swing is an overall movement in price trade in the direction of the trend. If the trend is up, we're only looking for long trades. If the trend is down, we're only looking to sell or take short positions. This set up does not occur as often as we would initially suspect. It's a fairly simple set up. We're gonna look at a multitude of trending trade examples, are trending strategies that you're gonna have one for each sort of look of a trend. This is one of those strategies. So this, along with other trend trading strategies we're gonna look at, is gonna give you a full our solar tools to trade any trend they see or most of them when they offer get set up. So during during an uptrend, we wait for the price to pull back and pause at the bottom of the pullback to establish a small rage that slow arrangements be at least four price bars buy when the price breaks above the smaller range. Back in the training direction. If there's no pause, we don't take a trade. We're looking for that pause because it gives us our edge and lets us know that selling has slowed. So remember Riman uptrend. But we're buying on a pullback, which means there's been selling that just took place. That pause. Make sure that that selling has slowed or stopped. Stop those one pit below the small range Target is placed at 1.6 and 2.6 times are risk. This allows us to, no matter what a risk is weakened, compensate by taking a larger profit. So if our risk is 10 pips, we place a target at 16 pips and 26 pips. Whenever possible, split up your position. Instead of taking two or three many lots on one trade, we're gonna take two or three positions of one many lot each that way we can get one lot of that 1.6 and the next. Lotto that two points. It's during a down train. We wait for the price to pull back and pause at the top of the Polack to establish a smaller range. That Smalls range must be at least four bars. We short when the price breaks below the small range back in the trending direction once again. If it doesn't pause, we don't know that that momentum has slowed yet. So we don't take trade. Stop goes one pip above a small range, and our target is the same for risking 10. Pips were looking for a target of 16 to 26 pips, and we're going to split up our position as we come in. The first video still only want to risk 1% in that pair that were in. So even though we're splitting our position up, we still want to make sure that we're not risking more than 1% portrayed. So let's look at a couple examples here. Here is one. We have this very sharp move higher, so we're moving within an up trend. Go back a little bit. We could see overall progress higher. Very choppy trading in here. But we have this strong move. So we're looking for a continuation to the upside of this little aero here marking. So we have a pullback kind of pops higher, but we don't have all four of our pause in here. Really? Because this is almost a move higher again. Move back down. But here we have a definite pause. So we're looking for this sort of pause here. We have four bars that, um, form a little area for us, Actually. That big but readable there. That's our four bar patterns. We place our stopped 1/5 below. It's gonna be very close here, since this is only a boat Pips or so I'm gonna use this measuring tool quite a bit, so I'll show you what it does. You could see it zero slash 110-1 00.69609 That middle number where it says 110 That's pips . And we need to insert the decimal. So 11 that basically means 11 pips. So 11.0. So here this is our entry points. We have this little range establishment for breakout above the high. So it would occur on this bar here where we have a little pop out of the range. So basically, as soon as that happens, you're looking to go long, so it will be our interest, probably just above that range to our stop. We're looking at almost exactly 10 Pips, so our first target is going to be at 16 pips, so that would be right about there. So this is the area of our first target. So we're risking 10 pips and that first position we're making 16 pits on. So we're making 60% more. Um Prasit, Then we have at risk, and our next target is at 2.6 times. So from the breakout point just slightly above it, wherever entry point is, we're looking for 26 pips. So already they're 25.9 26.2. So right in here is where our second profit targets for 2.6, the 1.6 and 2.6 work. Well, because it is based on your actual risk at stake. So here we have a very large move. Small amount of risk, though, and even though this didn't have a lot of upward momentum were still able to get off. I found the 1.6 is very reliable for getting out. 2.6 is a larger target. So sometimes that one will get hit. Once this, let's change these two green to our targets. Once our first target is hit, we can move our stop to our break even Price. So we're right about there. That way we still if we have one remaining position or ever remaining position to have, which are waiting for this target to get hit. Uh, we're not gonna lose money on them, so we'll make money on this one. And if it does happen to pull back, we won't lose money. And once it gets close to this target, So once we're within a few pips, that one I will move my stop to up to the old target because I do not want If we get within a couple pips of this target, I don't wanna give up Ah whole bunch of Prasit just for waiting for that one hip so abruptly stopped there. Look at a few down trade examples. We had downturned examples. We have this uptrend here. Big explosive move there and then we start to channel down. So once we've had a few swings, the downside will start to look for trades to trade the downtrend. Here we have a pause here. Forget about that volatility for a second, but basically have a pullback. We have some sideways movement here for about four bars. There were waiting for a move to the downside. So even though this broke up that when it mattered because we're waiting for a move to the downside snow we have five bars there that for more consolidation or a pause, and we have a big move down below the bottom. So this is our entry point right here. When it breaks below our little range, stop this place one pip above. So let's just measure on a risk. Remember, interpret would be just below that range. 27.5 tips or risk is 27.5 pips. Let's calculate that over 27.5 times 1.6 44 hips for our first target and 71.5 so 44 hips with the right about there so we would easily gotten out of that one on this move. Very strong move and then we're down here. It's 71.5 pits for a breakout price. Yes, right in this area here, you could see that 71.3 for a target was been right about there. So we have a very nice action like this strong selling pressure it is likely to trigger. Both are targets once again. Once our first target is hit, we will drop this down too. Are break even price. Once the prices in this area here, we're out of this position and the price is approaching her second target, we can move our stopped down to there. That's just that we don't give up a whole bunch profit. I have worked one here called Questionable, and that would be this one here simply because we made a higher low. But then we're making a lower high. So this one, I probably would have traded it. If you want it when you're practicing the strategy, might one of with this one and just trade these types where there's really no question whether the trend is down. We have all lower highs, all lower lows. Where is here we haven't up move a down move, which doesn't make a lower low and then a pop higher again. So this one's a little bit more questionable, a little bit more subjective here. Once again, we have a strong move back to the downside. We make a new low price pulls back or making a lower high as it forms. We have this pause where we can see we have a little support area here when the price breaks below it. We're looking for that continuation to the downside. So again, stop would be placed here targets at 1.6 times the risk in 2.6 times a risk. So a little review. Every trade has a stop in a target, which is put out where you placed trade Onley Risk 1% of your account on a pair taking multiple positions get you out at different targets. But we're still sticking to that 1% for trade role Onley trade in the trending direction following a pullback pause and a break back in the training direction. No pause, no trade. Basically, that shows us that momentum in the opposite direction of the trend has stole so We are looking for that edge in in trade in the training direction. Once that small ranges broke, place to stop just above a small range for a downtrend just just below the small range for an uptrend. Split up your positions I mentioned before, but still only risk 1% by splitting it up your you take profit at different CrossFit targets. Targets are 1.6 and 2.6 times a risk. Trading involves to stand Hristo loss only trade with capital and four blues trading with capital. That you absolutely need is very stressful and will likely result in an outcome that you want test out strategies before using them. Make sure you're actually able to implement them yourself. Watching these is one thing, but you need to actually go through, go through some charts, isolate these practice putting up your targets, practice putting out your stops, calculating. Uh, you may have to do this very quickly if you're trading on a one or five minute chart. If you're trading on an hourly charge, you have more time until next time. Happy trade 4. MINI CHANNEL BREAKOUT FOREX STRATEGY: the little review from the last video trend. Trading is where most of the money it's. There are multiple ways to trade trends, but this is one that you want out of your arsenal. It gets us in early, keeps wrist small, and profits are larger than losses could be used on all timeframes for day trading or swing trading. So when uptrend occurs, when the price is making higher swing highs and higher swing lows, this should sound familiar if you watch the last video. If not, we will build through. This concept prints again. In this video down trends occur when the price is making lower swing lows and lower swing eyes. We only trade in the direction of the trend. These strategies, this is this is relatively simple set up, but it doesn't occur as often as we initially suspect. But when there is a very strong trend, it will look her frequently, and that's what we mostly want to trade. It provides us a lot of opportunities to get in on that trip to make money. We'll look at other trend trading strategies as well, so that no matter what the trim looks like, you have a way to trade it. So during an uptrend, we're waiting for the price to pull back. We avoid trades when the trend of our time frame isn't clearly visible. A line must be able to connect at least the high point of at least four bars in the Polack when this occurs. Typically, the Polack has a channel like parents. Sometimes it's not beautiful, but we at least need those four high points in the bar pull back to be able to. This allows us to draw a line, and Avery Co. Point doesn't it doesn't sound clear in a moment. Well, we look at this year examples we buy when the price breaks above that channel in the training direction. Back in the training direction, we're looking for a certain look. A counter friend move or the breakout is clearly visible. Once we drawn that General er stop goes one bit below the lower the channel following the breakout. Christ, once the prices break broken out, Sorry will place that stock one hit below the general low and our target similar to the last video. We're using the 1.6 and 2.6 times wrist. So if we have 10 pips, risk really for a first target at 16 Pips and another one at 26 pits. We do this by taking two positions instead of just one larger one. If you can afford to take too many lots, take two to positions of one. Many lot each say you can get one out at each start, but during a downtrend, we wait for the price to pull back. We avoid trades when the trend isn't clearly visible. A line must be able to take the low point in this case of four bars on that pull back. So we sell when the price breaks below that line. So it'll be really back in the trending direction that we want to get in on that. The stock goes a one one pit above the Sorry, that should say hi, one people, but the high of the channel is the price will be coming down. The channel will be going up, so we want to put this stop one of the higher the channel and our target is 1.6 and 2.6 times or risk once again if we can take two positions instead of one larger one. We will do that. Keep in mind from the last two videos we want toe keep risk to 1% of our trading town portrayed. So from the out of 8th $500 account were only risking five bucks pretty tough to do because they have $3000 account. We're risking 30 bucks portrayed to keep that in mind. Let's look at a few examples, so it's highlight a few in the Euro U S d A couple weeks back, we had some pretty good action going is have the euro flying Haider and then a bigger Roussel. Back to the downsides is what we talked about, what he had. When we have very strong moving, we're going to see lots of these little, many channels. So here, strong move, higher proceeding from a longer term uptrend. So we're looking for it was here. I've said this is only three bars, so technically, this isn't about set up we want for, but we are on an hourly chart. You could drop down to a 30 minute chart and how many bars that be? We have three bars here on the hourly truck. That means you have six bars. It gets for that lineup you have about signal. So you can It's not cheating you to just drop to a different time frames for certain setups . Is he seeing anyone in? But basically, we're looking for four points. Just that we know that we have a solid resistance level there. When it breaks, we know where to the get. So this one would have been a great trade here. Assumes that broke it, flew to the upside here. Pause again. Not not really. Can't really draw channel around this. We sort it could, but, um, here we have the lows that connect and these the ones on the bottom don't really matter too much. You can put them on if you want, but we know from strategy that we're gonna be putting her stop one pit below, so we don't really need to channel. So we're going to be entering here as soon as it breaks out. We do not wait for Mars to complete as we can see. If we would have waited for this part of complete, the price would been way up here. As soon as it breaks that line, we get in. So our injury coin is right around here looking at a vote. 13.8 pips of risk here and we take targets at 1.6 and 2.6 times our risk, 13.81 point times one quite six or first started be a 22.0 he hips and for 22.1 pips and then this one is 13.8 times 2.6. So this one with the at 35.9 he knows from the last video and this one, typically the 1.6 target will be very nearly former high. It just seems to work out that way. They'll be in a in a close proximity to the former high. That way, if the price fails to go higher and makes a double top type formation and then proceeds lower from here, we at least got that one target over here. The former I because once this pops is a pretty good chance that it's gonna at least go back and test this former high here we have popped higher. It's testing it, and in this case it worked out well. It continues to go higher. While we were in this trade, you could have had another opportunity. Here. 1234 We have four bars that form a little, uh, channel type here. This is one of the ugly ones I talked about because if we were to draw a line, he doesn't really have a channel like appearance. But this line does. And that's what we're looking for. Grandma's clearly defined level that we could watch for a breakout above and what it does, we'll watch for the pop. Higher. These are a little bit subjective. You have to be in there in real time. You have to be able to say, All right, we have this nice, strong pop higher. You have this level. Do I want to trade it if it breaks out saying with here, Same with here. So we have this pop hire a pullback. Do I want to trade? This breaks out. This would been a very aggressive trade after the strong up trend, but it is a valid signal because we have a lower low. Please had a number of little movements here and the price drops below them. Then on the rally higher. We're making a lower high. So this is a decision. After making real time, once you draw this line, the prices moving up. If we go to the very right hand side of the chart like this was happening in real time, the price is creeping up. We've had this strong run up. What do we want to do? We have to decide. All right. If this breaks below this line, I am I gonna take the short you say it's gonna cost me nine pips of risk once this breakout occurs. Yes, I'm gonna take that trade. So we take it really, at about nine pits of risk is we're putting her stop when it above the former high of the channel. So this was the high of the channel. This one we actually could have drawn because does actually have a channel like appearance . So here's the high a channel. Here's our entry point. We're looking at about nine pits of risk. If our stock goes right here, this one worked out quite well going into the weekend. If we had held it over the weekend. Our initial target 1.6 times nine is 14.4 pips and We didn't quite get there for Friday. So if you have a nice broker the next morning you and made 35 gifts instead her on Monday morning. Sunday night. Same with the next one nine pips. Times 2.6, which is our next target 23.4 would have also not filled at these following open. If you have a nice broker, some brokers may just pocket that difference. But night hips risk entry point right here on the breakout. Here we have one that would have worked out. We have this nature into the downside. Have the gap on Sunday channeling higher, well defined area here where we're looking to go short. We would have gone short right in here when the price drop below stop would have been placed. Great. Both there rights, we have this nice channel like parents, but we would have been stopped, just moves above our stop and then proceeds to go. They were actually expect. This is forex trading. We cannot avoid these trades. We I I don't even try with these trades because we know that they will inevitably occur. What we learn a strategy were expected. Never work about six or seven times out of 10 um, on a hopefully at least for four or five times I'd attend That way we're making 60% of the 60% more in our winners that even if we win 50 40% of the time, we still should be coming out of hip. Therefore, we do not need to try to avoid these. This is gonna happen. Do not be frustrated by it. Just look for another opportunity. So a little review. Every trade has a stop in a target. Put these target out when he placed the trade only risk 1% your account in anyone. Pair that includes You're taking multiple positions instead of one larger position, but you're still limited to that 1%. That way, even a string of losses won't significantly drive down your account. Onley trade in the trending direction following a pullback. That pullback must have a channel like appearance. Remember, it can be ugly, but you at least need to have that clearly defined break up. If it's not clearly defined. Breakout point. Don't take the trade places stop above the height of the town for a downtrend place to stop below the low of the channel for an uptrend. When possible, keepers below 1% split up your positions and take profit at two targets. The targets are 1.6 and 2.6 times your risk trading balls. Substantial issue of a lost only trade with capital, you can afford to lose train with capital that you have. So we need will result in a you know, like destitute strategies before using them to make sure you're actually able to implement them and that they work for you. Use a demo account, trade this work on it, do it in real times that you can actually see these channels forming. Trade the breakup set your stop. Set your targets and you get good at it before actually using real money until next time Happy tree. 5. ENGULFING CANDLESTICK TREND ENTRY STRATEGY: trend. Trading is where the money is. There are multiple ways to trade trends that this strategies steeple get sent early keeps profits larger than losses. And our risk wrote it was small can be used on all time frame for day trading or swing trading, although it is recommended for day trading, since we do have to be watching for the entry. So you recognizes from prior videos. Little review. Uptrends occurred when the price is making higher swing highs higher swing lows down. Trends make lower lows and lower highs. We only trade in the direction trend this set up occurs fairly common is fairly common in occurs on all time friends. We'll look at other trend trading strategies as well. Throw these videos that no matter what the trends looks like you have traded in the last two videos. We looked at setups that involved a breakout of a pause price channel. This dries a little bit different. All it requires is a sharp new back in the trending direction, so it is more frequent or we see it more frequently. So during an uptrend we wait for the price to pull back the price of Cairo waiting for a pullback. To the downside, we avoid trades when the trend is clear. Once we will pull back for at least three bars. We're watching for an up bar to completely in both the last down bar, basically up, move down, move and right at the bottom. Here, we're looking for a start moved back in the training direction. Both the engulfing bar and down bar should have substance then, meaning that we want to see a bit of a difference between the opening closed. We don't want to see engulfing bars that are extremely small because it doesn't show a strong ships in moment. We need to see strong selling in one bar, followed by strong buying on the next. Well, look at a few examples of this sort of all become clear moment if it doesn't make sense here by as soon as the bullish engulfing candle moves above the prior bar open. So we have a down bar in the pullback, followed by an up bar. As soon as it crosses above the open of the down bar we're looking to buy you do not wait for bars to close, and as mentioned, we're looking for a certain look. A sharp move back in the trend. Trend direction. Falling, pullback are stop mills one pit below the re slow and our target, as we've done in a few other strategies. 1.6 and 2.6 times a risk. So if we are, we have 10 pips risk. We're looking at a target of 16 and 26 pits. Whenever possible, we will split our positions that it's easy to get out those different targets. Instead of taking too many lots or to micro lots, for example, we're going to take two positions of one, many, lot, one micro. So our situation for a downtrend we're waiting for the price to pull back. Once we have a pullback of at least three bars, in this case, the pullback, it's higher. We're moving down. We're having a pullback higher. We're watching for a down bar to completely engulfed the last bar. Once again, they should have some substance them showing a strong shift. We sell or short as soon as the bearish engulfing candle moves below the prior bar Open. Stop this place. One people of recent high and targets are at 1.62 point six times a risk. So let's look at a couple examples here. We have a Euro USD one minute chart moving up throughout the morning. Higher, highest higher lows. No question here assed whether the trend is up at this point, we do have a bit of a lower low here, lower high and hold back. We do have this strong shifted moment here. So this not an absolute textbook trade which I put here simply because we have had a lower high. We're making a bit of a lower low here, but we could see overall moment is up. We're not seeing a lot of strong selling pressure to the downside, so this would be a valid trade. 5.7 pips risk. We're taking a soon as the price crosses above the open of the last candle. So we do not wait for bars, completes or entry would have been there. We're looking at a motel 4.54 point seven pips of risk. From the entry, we tack on an extra pips or 5.7 tips risk from our entry point. Multiply that by 1.62 point six to get our targets are targets would have been a 9.1 in 14.8 on a five minute charter. One minute chart need to be able to captivate these points quickly. I recommend that if typically your trading a five minute chart. We have lots of stops between about six pips, five pips, six picks to go, 12 pips. So I almost memorized exactly what those profit targets are for all those stops that used frequently, you have a strong move here. Makes a higher high. It pulls back three bars, they're making a higher low as well. So no question here, this is about set up something you want to get in. We were treated this as soon as the price on this bar had popped above the open on this bar . So this green bar opened down here, traded up as high as this point. And as soon as it crossed the open of that red bar, which was in this level right here, we're looking to buy. So that would read about where the top of the boxes here. So we're looking at a vote 10 pits risk. We add on an extra pip. So over here we'll let in 2 11.5 risk. I used 11.5 most played out by 1.6 and 2.6 to get our targets with here. This technically would have been a signal as well. Although we would have been in this trade still going down here. We have a news related moves to bar pull back and we see a potential inter here at this point. At one point during this five minute period, this part here would have traded below the open of the prior green bars. That would have any bearish engulfing pattern. But we only have to bar pull back. We could have dropped down to a one minute chart if you were interested in trading this. Yes. You have a valid set up on the one minute chart. You could look for it there. One thing to know is on news related moves. Take this. If we have a down bar like this, followed by a bar of equal magnitude, we would not consider that a valid trading opportunity. We have separate strategies for news related events. So we do not want to enter or used volition going patterns when we have massive volatility . So if this red bar would have occurred right next, it's green bar and the turn was down. We still wouldn't trade that. There's just too much movement there, much exposure. The stock would be too big. We just don't want to trade that. We're looking for general or normal market movement. That just shows a removing back in the training direction. So here we have a very weak pull back, which is why I would have taken this trade Overall. Momentum's up here. We have another pop in its trending direction. Pull back, moving back in the training direction. It's very rhythmic. There's no not a lot of volatility going on here yet. So these air get trades once we get to hear. If you would have seen one here, that's not something. So let's look at the odd ust This is an hourly chart. Um, has eventually probably use this mostly on the daily. Simply Victor on the like. Five minutes, 10 minutes, 15 minute chart simply because we're watching for an entry point. Yeah, only chart. If you happen to catch these their trades, though. Here we have a downturn. We're making a lower low, lower high than this. This is a valid entry here and see this part one point traded. It's loads here before moving back to close here. We would have taken that trade, though as soon as the price cross below that candle. So we're looking at an entry point approximately 19 pips. A risk here. Originally calculated out it was 18.6, including our extra. So we multiply 18.6 times 1.6 and 2.6. We get our turf first hard at 29.76 and we would not quite has got note this trade here We're looking for 20 4.4 sort of 48.4 tips rounded to eight four So we're looking for 48 points. Four Pips here from our entry point we have gotten it, but possibly not. Otherwise we would have had to wait until the price eventually. Here we see our stop here One love and that was never indeed see the price similar to the Euro USD example. We have this overall lower lows. Here we have the same sort of thing Overall structures down, moving tropically sideways. We have a little higher high here, a little bit of a higher low. But the overall mentum is down, so the trend is down. So this is a valid signal, especially since we have a drop and we're making it Lord High when it forms, Let's again entering right at the bottom. Here, risk is 1/5 stop is one tip above the high of inflammations or looking for stop right here . So when I saw you have had about 10 pips of risk, 16 pips and 26 pits are targets strong move down. We have this little pop here bearish building pattern, but we don't have three bars. So this technically isn't really even a pullback. It's more just a pause. Continuation. Here we have markets running higher. We have a bearish engulfing pattern here. I have exit out simply because this is probably the most com state with This strategy is that people will start trading all of them but recall we only trade with trend. This is going against the trend. If we trade this while it looks nice and hindsight, you could actually get a move lower. We want to trade with trends. So this this time momentous down this time, Momentum's downs were trading with the trend at this point of this signal momentous, this could have very easily pulled back and slow higher. So not a ballot signal there. So it's a little review every every train Stop target. Put those out as soon as we placed three when were trading on short time frame, such as the 15 minute chart. We're gonna have to make those calculations very quickly. Some memorization of some common stops. The use will help. In this regard. We only risk 1% of our account on trade. That way, even a string of losses won't significantly drive down your account. Questions about this go back to video. One is this covers a lot more risk management even were taking multiple positions. Multiple decisions. Teoh Teik. Different targets that still only accounts is one trade. Taking two too many lots of one trade is the same, mistaking two trades of one only trade in the trending direction following a pullback. We're looking for engulfing pals, but show shirt, move back in the training direction. Use discretion if you have two huge bars and the second is in golfing pattern, Skip the trade, the risk is too large and the market too volatile to take high probability trades. Typically, those types of move their news related, and we have specific news related strategies will cover in future videos. Please stop above the reason high for a downtrend. What you've taken entry and stop below the recent low during your went possible. Keep risk under 1% split your positions up and take profits at two targets. Those targets are 1.6 and 2.6 times a risk. As discussed in the past videos, we have the option to reviews risk. This is optional. It's not mandatory. You instantly set your positions and allow your targets to get hit. What often, though, is to reduce your target or your stopped to break even on any remaining positions once your first target is hit. So once you hit this 1.6 target and that position is gone, you can reduce your reduce your stock to break even. Simply that when the prices hitting toward this target, it doesn't fall all the way back and end up, resulting in the loss. When the price is close to the second target. Then you can move your stop up to this first hard. That way you're sure creating balsa stand Hristo loss only trade with capital that you can afford to lose creating the capital. The US need my result in something that you do not want. Test out strategies before using them to make sure you're actually able to implement them. And they worked. I've shown you see examples. It's now up to you to go into a demo account and look for these accepts. Notice how analysed trends see where the trend is, looks in the direction. Be able to spot those engulfing patterns in real time. The old sent your injury stops and targets accordingly. All these things take practice until next time. 6. STAGGERED ENTRY AND EXIT STRATEGY: So Tran training is where the money is there multiple ways to trade trends. This strategy is useful because you get set orders and forget about it. In the last videos, we looked at a couple entry techniques, which required you to be there. You had to watch for the break held or the praise crossing a certain level. This one's not like that. I like these strategies. You can put a little before you go to bed. When you wake up, you might have some trades. It manages risks and keeps the law small relative here. Profit can be used on all time friends but have mentioned ideally used for swing trading. Since we are gonna take a bit of time, Teoh calculator orders. So in Uptrend occurs on the price is making higher swing highs and higher swing lows. During that time, we want to be trading with the uptrend, so we're looking for long trades in a downtrend. We're looking for short trades or sell signals when the price is making lower lows and lower hives. His strategy can be used on most trending waves strategies and prior 1,000,000,000 videos required active entries, and we had to sit and wait for a break. This is a set and forget strategy. So having basically works is for an uptrend. We need a strong advance. So we need to have just seen a higher high. And when the pullback begins, we apply a Fibonacci retracement tool to the last wave higher. And we place orders at the 50% 61.8 and 78.6% retracement levels. All these positions were putting out three orders. The whole risk of all those three positions must be less than 1% of our account as we covered in the first video. If taking three positions is too much risk for your account, you can just take the 61.8% level and the 78.6. Or if you're just taking one position, take it at the 78.6 level. That entry point has the lows risk and the highest reward. The problem with taking just the 78.6 is that quite a few on quite a few training moves, you won't get a trade, but it is for a small account, probably the best interest you can get. So stop those five tips below the last swing low, since we are mostly considering this for swing trading, if you're day trading could probably reduce that to about one or two pips, but for swing trading, having five, actually 5 to 7. So our targets are a little bit different than what we've seen, but you'll notice some similar numbers the 50% entry point. So whatever our risk is, let's say it's 10 pips for 50%. Uh, we're gonna look to get 16 pips out of it, So we're gonna put our stop 10 pips way in our target 16 pip soy thing goes for this 2.6 times or risk, and our final entry point has 3.6 times a risk. So that's why I mentioned up here. If you're going to take one entry 10.78 point six, the best one for a small account simply because you're gonna be able to maximize your gain . And it also has the smallest risk, as we'll see when we look at a few examples. So for downtrend trades, you need a strong decline, so we need a lower low. And when that pullback begins, so Once we've seen the price start to pull back a little bit off that low, we're gonna use a feminazi retracement tool, Apply it to that down wave and put out orders at the 50% 61 pointing and 78.6% retracement levels. Once again, all these positions, the whole risk must be kept under 1%. Take the last two if you can just take two positions or take the 78.6% entry if you're only taking one. Stop goes five pips above the swing high as mentioned day trading could be a little bit more if swing trading wanted about 5 to 7 tips. Targets are the same for the 50%. We're looking 1.6 times a risk 61.82 point six times a risk and 3.6 times a risk for the 78.6 entry. So I have a few eighties set up to show you. So we have an overall uptrend here if we, uh, pan out a little bit. We see price moving an overall uptrend moving within a channel as well. So this is something we want to keep be aware of were not blindly applying strategies were also doing a little bit of analysis looking for probabilities. So going long, right at the top of this channel, Probably not a great idea. So instead, we would rather wait for a strong move off the bottom of the channel, which we got back here a couple weeks ago, who had a strong bounce off the top of the channel. Plus it need a higher swing high. Where we here yet? So we're moving down. We have this strong move up. Makes a higher high. You can see it cleared these bars here. So we're potentially moving with an uptrend. Plus, we have to look at this longer term structure here, which says that we are moving within an overall trend. So once we see that nice, strong bounce, we would put our orders out. Just leave this tool for now. So I was basically works is we have this up move and we're looking for Pullbacks to the 50% 61.8 and 78 78.6% levels we always wanna have. We're talking about an uptrend. We're gonna have zero at the top of the trend. That way we can see we can measure how far the pullback is and you'll get the rate levels. So 50% is always at the middle. But once we get down here, we're looking at a 78 0.6% retracement. That means the prices come almost all the way back, so you can think of it that way. If it comes all the way back here, it is retraced 100% of the move, so orders would have been put out at 50% 61.8 78.6. We only would've got filled on the 50% level in this case, cause the price only came back about half way of this wave. But her stop and her stop goes below the recent low. So a quick way to see what our potential risk is. Just click down. We see our risk is about 110 pips on that. Plus we're adding a bit of a buffer at the bottom. So 115 pips he would multiply that by 1.6. You see, I have said that already. So here is the entry or stops down here. And our target for that murder would have been up here 68% if it had been filled. Unfortunately, in this case, it wasn't. When you go from there to our stop, we're looking at about 92 pips of risk. We multiply that by 2.6, and for that one are our target would have been this target right here and 78.6. The price didn't get anywhere close to it. I know about 53 pips. Or risk you would multiply that by 3.6 in that order. Numbers 98 Sorry. 93 So our target would have been right at this level here. So that's how that works. You can see this is very profitable. If we have a deeper trace mint and then a surge higher, we can apply to use to any of these ways. We have this up move here. So basically, we would have been out of all these trades and we would simply move our tool up to the next wave. Yeah, we have put ours that again. So if we had placed orders at the 50% and 61.8% levels in this case, tracking these up here. You could see if we had isolated that trend right away. We could have put out our orders. We would have got the 50% and the 61 percent level are stop with her stops. Would have been a bit bigger on this trade since was a larger move. And then we would have had to calculator targets once again 1.6 for the 50% and 2.6 for the 61.8. So our targets would have likely been a bit higher based on our risk. So potentially somewhere in there, let's look at an example of a downtrend year. So we have price making lower lows, Lord highs. We definitely have a lower low here. Something to keep in mind weaken. Use this on any sort of wave that we want. It doesn't necessarily. I'm looking at major price waves, but you could have used the same strategy Here is Well, this pullback didn't quite make it to the 50% level, so no trades there, but in this case, we have a nice run to the downside. We would have put orders out 50% level to sell 61.8 and 78.6 and her stop would have been placed just above this high. Here it's writing about that area. There are targets. Same thing for this are risk would have been 35 pips for any 50%. Remember entering at the 50% level that would have happened back here. So our target on that would have been about 56 Pips. So right about there, 61% retracement. We're looking at about 26 Pips to the stops we had Multiply that one by 2.6 26 times 2.6 gives us 76.6 Sorry, 67.6 Now I would have got sealed right there, going down 76 67 Pips so the second target would have been read well there as well. So as you can see when this when the downturn and fold, this is a very powerful strategy. As mentioned, the 78.6 won't get filled as often as the 50 and 60 50 and 61.8. But when it does, that one's gonna offer the most potential because you're getting 3.6 times your risk. So if you have a small account, those are the types of retracement you want to look for. They do happen, and when they do, it can be quite cross ball. If you get that trade, so a little review every trade as a stop and target. Put those orders out when you place the trade. It does take a little bit more math than the typical strategy. Because you have multiple entries. Different targets only risk 1% your accounting. Anyone pair, even though are taking multiple positions were staggering. Our entries. Next, it's still, well, part of one trade. That way, even a string of losses won't significantly draw down your account. Onley trade in the training direction We are expecting a pullback, but we're relying on that trend to continue. So during an uptrend we're putting out by orders, even though the price is pulling back at that point. Typically a trend role word role to trace the entire last wave, which is why we're putting up those orders place to stop five pips above the reason high for a downtrend. Five pissed blow the recent low for an uptrend targets are 1.6 times risk for the 50% 2.6 times risk for the 61.8 and 3.6 times heiress for the 70.6% injury optional. We can reduce the risk to break even on remaining positions once the first Hardin it's hit . So once that 1st 50% entry order has been hit at its target, then we can move the stops up on the other positions to break even. That way, we're gonna be well on side on that trade. That way, if it does tumble all the way back, we're not gonna lose money. And we still made money on the first position. Trading involves substantial risk of loss, only trade with capital that you can afford to lose test out strategies before using them to make sure you're actually able to implement them and that they work. Looking at a few examples isn't gonna make you proficient in this method. You're gonna have to go through a practice practice in a demo account, putting out the orders test using that technology tool so really tested out, get used to having the is a little bit different We're putting out orders as the markets coming into us, as opposed to the other strategies where we were jumping into the market. So it's a little bit a little bit of a different approach, different psychology involved. But when it works out and were trading strong trends, you could be a very profitable strategy. So until next time, happy trading. 7. Trend Channel Pocket Strategy: no is where the money is. There are multiple ways to trade trends. I probably use this strategy the most of any of them talk to you about. We set orders after the U. S. Closed and before the U. S Open. It's a high probability strategy with that. I mean, it has a high win rate, a low risk relative to reward potential, and we can capitalize on multiple moves in high probability. Trends can be used on all time friends, but ideally will use this for swing trading. Since we're looking for high probability pockets to place our orders. And those occur at major reversal areas of longer term charts such as the Daily and for our chart, then will drop down to an hourly chart, too. Flying to your entry point trades last several hours to several days. I typically find if I put these haute before the one and open a lot of times, I'll wake up in the morning. I'm on us time. So a lot of times, by the time I wake up, I've had several orders, Phil and they're already closed out. So a few hours and a few trades I've had last for a week or so just volatility drops off and it just does nothing. Then you may have these for a bit longer, so we only trade in the direction of the trend. The strategy can be used on most trending waves, but we can better analyze our probabilities when the price is moving within a channel. It could be a very crude channel. I'm gonna show you what I mean by that. There's a lot of analysts out there that say, you know, stestanovich perfect, and it's simply not true. Accrue Channel will give you a good idea of sort of how much room you have to play with in your trades. So this strategy we can set and forget there's no touchy touchy. Once you put those orders out there, you let your stop get hit or your target get it? The one exception we will talk about the end is you can always wants your first target's been hit. You can adjust your stop to break even. That is it. We simply want Letmathe do the work. As with the other strategies, we have a target that is bigger than our stop, and usually we're taking multiple positions so that our targets grow. If you recall from prior videos and we're gonna look at it in this one, too. Our targets are usually 1.62 point six and 3.6 times a wrist. So we're making Mawr, then our losses that if we win 50% you have 40% of the time. Math does the work for us. We're gonna have a profitable strategy. So don't get too involved with these trades. Once you've set him out, just let the math work. So basically we're looking for a crew channel on the four hour chart. It doesn't need to be pretty as I will show you. We then drop down to an hourly or 30 minute chart if needed to find two entry point for an uptrend. We placed orders right in the pocket of a former low. So what that means is we're gonna have a big up move followed by down Move We're placing are stopped right in the pocket of the form. Reload. This is like the congestion area around the prior low. So when we look at the examples, I'm gonna show you lost city because, like I said, is the strategy. I would use lots. So I always have lots of workers up this strategy. So you have no doubt what that means. Replaces Stop seven pits below that last swing low. I should point out you will be buying into selling. You're gonna be putting your orders out as the market this falling. Where would you anticipate a decline? That's why we give it a little bit more real below a stop or below the prior low. Then we didn't some of the other strategies you should look familiar to you again. The targets based on the other strategies 1.62 point six and 3.6 times a risk. So if we have a 10 pit stop, which is pretty gonna be pretty unlikely with this strategy, it's more likely to be about 30 to 50 pit stop with a 30 pips. Stop! You are looking at 48 pit target for your 1st 1 and then you multiply 30 pips times 2.6 36 times 3.6. To get your progress of targets, we must have enough open space in the channel, meaning if we're buying. If the trend is up. We're looking for a up channel. There must be enough room from where we buy to the top of the channel toe actually have those targets. If we don't have enough room, then we'll just use the targets. Where there is enough room, such as 1.6 and 2.6. We should have at least that much room. If we know, then we probably shouldn't be taking the trade. So if we only have two targets, even if we're taking multiple positions exported five positions, we're gonna get them all over to 1.6 and 2.6. So the position should be coming. Maura. Familiar tea now based on the other videos. But once again, risk must always be kept below 1% of all orders. Instead of taking five micro lots, for example, for one trade, we're gonna take five trades of one micro LA each. That way we can get the boat. Different targets. If we only take one micro lot. For instance, if you have $1000 account, um, typically, your positions might be that smaller, so you might only be able to afford one micro lot in that case, exit at 1.6 or 2.6 myself. Personally, if there's a big stop on a trade and I only want to take one position, I will always take the easy money 1.6. That way I could get up, get on to another opportunity if you think about it in terms off, you know, at 1.6 say your stop is 10 pips and you get out your targeted 16 pips. You've made 16 pips. You should try to get out. 26. Your incremental game is a river. Get out of the 2.6 target. Your incremental gain is only 10 pips. You're better off finding another opportunity where you can make 16 pips, right cause to 16. Pitt trades is better than 1 26 victory. We will be buying into selling as I mentioned. It may seem logical, and some people may be absolutely devastated by this fact because, you know, we're always told never to buy into selling. Yet if you have a probably high probability strategy and it works out, then I think you should trade it and not listen to what other people safe. Also, we are looking at a longer term time for him. So while it is dropping on the short term, longer term were buying at channel support or resistance. So looking for a crew channel again for the downtrend ruining for that downtrend channel for our tribe, it doesn't need to be pretty. In this case, this place Stop this place seven pips below the last swing. Hi. Sorry. That should be above the last wing high plus the average spreads or looking at a downtrend wherever that last swing high was. That's where reporting her stop. And we're expecting the price to stall before that point targets once again. 1.62 point 63.6 times the risk. Assuming there's enough open space in the channel again, I'm gonna get that. We'll look at some examples If there is enough room, then just use the 1.6 and 2.6 targets once again keep risk below 1% if we can. And in this point, we're gonna be selling into buying. Sorry, I forgot to change that around from the last live. So we're going to be selling into buying. And yes, it's a logical but at the same time we are like using a longer term time for which actually makes this a high probability. Let's look at a few examples. You see, the odd USD moving in a nice jail here. First, we're moving in an overall trend higher. We have this down trend. Here we are on a four hour chart. This this 1st 1 we wouldn't have traded, cause at this point right along the side of our chart, we do not know if we're entering a downtrend yet, But once we have these couple ways here. So this would have been a valid opportunity right here. We would've going short right in. This is what I'm calling a pocket. This area here, you see, that's that's the congestion area of the last high. So as soon as the price fell away, we would have put out an order to go short right here. We would have gone short there, stop above that high, and we would have been able to capitalize on that next move down. Let's switch overs. What's going on right now? We have this channel higher. Yes, There were some opportunities in there too. We broke this channel to the downside I haven't order out here in this pocket here. Basically, that is the pocket. It is right in the congestion area of the last high. If you think back to the Finma naci strategy that we looked at last time, the last word we put out was that a 78.6% retracement level. This would even be deeper than that. We're looking at almost liking 90% retracement level and you'll notice in four X there. It is very common. Have deeper trace mints so we can see potentially a travel channel forming. Now we're looking for a pullback to that line is very crude. We don't know where this low is gonna be, but basically, we're sort of extrapolating that a channel's gonna form out here. But we do have this to go off of. We're moving lower downtrend, and we're expecting a deeper treatment. If it doesn't come back here, that's fine. It may come back here and then drop, in which case we possibly look to were ordered them to hear, assuming there is a channel and we have enough room by open space, I mean this. If this price comes up to here we have this resistance above it, meaning there's not much open space above it because they would have to act totally reverse the trend to get above here. But we have lots of open space to the downside were in a downtrend, which means the open spaces to the downside. So we have this entire distance. So if the price comes back up here, so the price bounces up here. This is the open space all the way back down to this channel. Oh, so since we're only gonna have this one, our risk is 24 Pips. Our largest target is vote is you go 1.6 times that 2.6 times that 3.6 times that. So even if we both played out by four, that's 100 pips. Easily we can hit those targets. So if it comes up here, we definitely have 100 pips, plus some extra. But we're just gonna get up and you could see my orders here. The price comes up here. My last word is gonna be out here and we still have some room to the downside. So here's a nice long term trend on British pound US dollar moving and overall channel higher. Recently we had this fantastic trade which I was able to get in on right near the bottom. My orders out now are not for that. But I was basing it on this one. Here we have this major low here. A pocket rights year. Were wood in place right about in here. One thing to note. If we have these long bars, I usually disregard them. And we'll just use the major congestion area. So that was like thing is related. Probably not a lot of impact. So my stop. My entry point would have been right here at the top of the congestion area and my stop below this congestion area. Here, you see it? So this is the congestion area I'm talking about. So in that trade, we're looking at 30 gifts of risk again. And we've seen a nice run to the upside on that one. So all those profit targets have been hit, which is why there's no position showing and we have a new order out right in this congestion area here. So we had a new low form. I'm looking to buy on a pullback to this area here, right along the channel bottom. Let's keep looking at these. The JP water USD again channeling here we wouldn't have really looked to do anything. There's no definitive trend direction. While we're moving within a channel, we want to trade with some sort of bias. Once we have this run to the upside. This was a good trade down here. Once again. Look at this pocket. The price does not go through it. So there's your pocket There. Stop Would have been seven pits below this low. As you see, it was not hit. We need higher lows, but the price moves right into that little pocket. Gives us an opportunity to get long and partake in all this potential up to the upside. Now, at this point for this trade, we wouldn't have known that it was gonna run this high, but we could use this is an approximation. So even if it only ran up to this former high, he still had a lot of upside to run. And once again, with a 20 pits plus seven pips for our stop close with 30 Pip stop Lots of opportunity for we would have already down of all our trades at this point here once again, another opportunity here it's We can see that the price pulls right back into this old consolidation area. I would use both of the use for this one since they were close together. But we can see there's a consolidation area right, and here Price falls right back into it. Stop it of its seven pips below this low and once again, lots of Rupert to participate in the upside. The reason we would take the lawns and not the short is because we have this. Now. We have an upside bias were making higher highs, were making similar lows slightly higher. But that channels up this one, we still get a taking it. We would have been out of our trades, but once we don't make that higher high anymore. I didn't take any of these and we're waiting to see what happens over here. If this forms a more definitive channel to the downside, then we would be looking to take shorts potentially in this area here with stop above here and targets lower the USD. Swiss was moving in a nice channel up till this point. Ah, little analytical insight here is we can see we touch the low. We moved to the high move lower pulled back on this one. We couldn't make it to the channel Channel bottom, And then we have strong rally. So at this point, we are sitting on the sidelines. We're waiting to see what this does. Did this come back into the channel, or are we going to start a channel to the upside? So you're O J p? Why, we had, uh, a triangle here which we're gonna look at in future videos. Another pattern I like to trade, and basically, we're waiting for a pullback into this major congestion area here. So at the end of this channel is getting very congested. So lots of resistance here. So we're looking to get short in this area here. Another potential trade since we've had a very strong run to the downside, Um, I may also put when I was here. This is the This is the one I don't risk 1% on up here with, uh into these here. Stop up here and should be fairly easy for to reach our targets here. This one might be more of something that just half of percent time just cause we're sort of in the middle of nowhere, we do have a nice trend channel going to the downside. And I put my entry here. Stop seven pips above this and we'll be looking to get out down in this area here based on our 1.6 in 2.6 times, whereas targets British pound the end. Same thing. We have this challenge. The downside. We broke out of it. Meaning we had a very strong room to the downside. Here we formed a new channel. I was able to get out of this one last night on this trade right here. You can see right in this area here. We had a little pocket, so that would be the part. We want to be a short, nice little spike overnight, which filled the short position but didn't exceed that high. Ran to the downside, were able to get all positions on this drop here before this rally. Now, in this rally, we're waiting for a move up toward the top of this channel area. I generally will go through and mark these whenever I see them. Just that I remember to put out orders on them. So we are looking for one off in this area. So we may. I may take a small position here, right at this one with a stop above this level and a larger position going short right in this pocket here with a stop of of you notice that that would mean this has moved above the trendline. But we don't care if you look at how I've drawn these trend lines. They're not against highs. They're not, uh, it is just a guy way. Don't care if they get broken a little bit. So I still want it yet short in that park there. And potentially this pocket here. So those are quite a few trades that should give you a good idea of this strategy. Like I said, I put these out every night. I can usually find about four or five. At least put out a night. So at any given time, I probably have orders out on a boat, 50 in pairs and a couple still a night. Usually on a volatile night. You might get seven or eight trades, and usually we'll have, um, are already done by the time trading the ends, so a little review every trade. Other stop target. Put those orders out when he placed trade. Only risk. 1% your account in a pair. That's including taking multiple positions to get a different targets. That's all. One trade this way. Even a stream of losses won't significantly drive down your account. We've only trade in the training direction, even though you have the channel. If it's a down channel, do not buy at the bottom. We only want a short at the top of a downtrend channel and by the bottom of an upward trending, typically a pullback. What were traced? The entire last wait. That's what we're relying on. That's why we can put our order right in that pocket. Have a small stop seven pips below. We're above the last higher low and still make still have our targets at multiple times or risk. We only trade into why open spaces. We need that area in the channel to give us that high probability trades once again, replacing stop seven pips above her is high seven pitch below a recent low targets 1.62 point six and 3.6 times a risk. Uh, typically, we may get another pull back before the 3.6 target. If you're already out of two positions, you can look to add, assuming you have enough room within the channel. But always remember, maintained the 1% rule. So within a longer term up Tranel and you're gonna have smaller channels within it. So you can trade those ways by just sticking your orders right in the pot optional. You can reduce risk to break even on remaining position. Once you hit the first target. As I mentioned, nothing else changes. That is the only thing that, uh, that we can change about this strategy. Letmathe do the work trading involves a standard is colossally trade of capital T for lose test out strategies before using the make sure you can actually implement them. So use this in a demo account. Put out orders each night, see how it works out for you may be fine, too. In the approach a little bit. Are you drawing a 10 trend channels right where you trading in the right direction and then relax. This strategy only takes about 20 minutes a day to place orders once you have practice spotting opportunities, so take time to practice it. That pays off until next time. Happy three. 8. TRENDLINE BREAK FOREX STRATEGY: So train training Is I saying every videos where the money is, there are multiple ways to take trend trades. Typically, I use this tragedy to tip me off about potential trades and then used one of the entry methods described in prior videos. And we'll review a couple of those this point. I would like to say watch all the videos because we will build on certain things that are discussed. I'm not going to review every element in every video. So we're building on certain entries that we're gonna use. Our targets, you noticed, are quite similar in a lot of videos. So we're gonna build on all this stuff. So if you haven't watched all the videos, you should be going through and watching you too. As always, this tragic provides a low risk relative with the reward we're gonna be making. More are winning trades that we do are losing trades. And as mentioned, we can use a normal time frames that includes using a one minute chart five and a charge hourly charge. We trade in the direction of the trend. In this case, we are betting on a probable nutrients. This is a reversal strategy. The trend line break is when we have were training in one direction, that trend potentially break. So we're taking the trade in the new direction. There must be evidence. It must be evidence other than a trendline break to support the reversal, though, So we're looking for a higher low, lower, lower, lower, depending on whether we're looking at an uptrend or downtrend with this strategy, Weaken seven. Forget there's no touchy touchy again. Let them out. Do the work we're gonna make more on our winning trades are losing trades. So once we set that trade, once we get in there, let it hit your stopper target. So first off, for an uptrend, we need a up trend where it is neatly defined by a trendline, meaning the trendline highlights. The rising lows doesn't have to be exact, but we want to be able to see that trend line fairly neatly defines the upturn. The trend line then is broken. Remember, this is just a tip off. It's not an entry signal. The trend line is broken and the price moves steeply lower. So we were moving hiring at a sufferance that we have that sharp reversal after a trendline break and ideally, reaches or exceeds a prior swing low. So during the upturn, we have rising swing lows. Now we have our first either matching low or a lower low, plus the trendline break. We wait for the price to move back up. So we were in an uptrend. We have move lower, and now the price is starting to trickle back up. This is when we look for our entries were betting on further downside. In other words, we're betting that the up trend is reversing so we can use our Fibonacci entries 61.8 and 78.6 of the ones I recommend for this strategy. We can also use their pockets strategy. So those were covered in the last two videos. Alternatively, we can sit there if we don't want to. Just put out are ahead of time. We can sit there and wait and see if we get a pause. This was covered in the trend. I forget what I call it. I think I just called the trend training video. We're waiting for a pause and then a break out. So we're gonna place are stopped five pips above the uptrend high. It will be a little bit different if we actually sit there and wait. If we use this century here where we actually sit and wait for the pause, then we can put our stop five pips above the consolidation no matter which entry method we take. And even if we take multiple entries at different prices, they're all going to be 1.6 times the risk. You may have three different entries with a 10 pips. Stop 15 pip stop in a 20 pence Stop. Multiply each one by 1.6 and that's going to give your target for each one. So this is conservative. We are going against a longer term trend. This is why we don't go for more on this one. We're still making 60% more are winners are losers, But we I don't wanna stay in these trades too long. There are other trades that we can extract more out of this one. We're betting on reversal, but we're not 100% sure yet. So this is why we just take the 1.6 and if we're taking multiple entries which I do recommend, we only risk? 1%. So this should be a staple. Now that you understand through all the videos, Uh, the only risk 1% portrayed we will be selling into by. Remember, we're betting on the reversal of an uptrend, so we are short selling. Um, we're selling as the prices rising into us. We have this nice uptrend. We're moving up. We had a deep pull back. Now we're pulling back higher again, and we're gonna go short expecting the price to continue lower the trend line we needed for a down trimming a trendline that neatly defines it. The trend line is just a tip off. Remember, we're looking for it to break and the price to move steeply higher, ideally reaches or exceeds a prior swing high in the uptrend. So we wait for the price to start to move back down. Then we can throw a sit Banacci tool, look for entries at the 61 78.6 retracement levels, or we can enter along with the pocket strategy. Or we can wait for a pause in the pullback causing the selling and then trade a break out back to the upside. So in this one. We have this downtrend shut. Move higher. We're moving back down and we're looking to buy in anticipation that that downtrend has been broken and we're gonna move to the upside. So five pips below the downtrend low once again. If we're using the active strategy and entering after this pause, then we can put this stuff five pips below the consolidation. This key is 1.6 times a risk. We don't know if it's a full reversal yet over what we're thinking is that that trend line , the downtrend has been broken short term at least. So we're probably going to see a bit more upside. That's what we're going after. Risk is kept below 1% for all trades and on this one, we will be buying into selling. But the sharp moves indicates that the downtrend is in trouble, so we're likely to seize more profit to the upside. Okay, so no one set up here in the British pound US dollars. We have this move lower. If you look at this a little bit longer, turn to we can see that we are moving within a trend channel. So when we get down here that this is a nice trade. So we see downtrend broken. Let's just get rid of this again for now. So living in a downtrend, we can see that it is defined by a trendline. Like I said, it doesn't need to be perfect. We have some spikes above it. That's fine. The point is, is that we can see that this is clearly broken. We have a definite shift in momentum here from to the upside compared to what was going on here. So we have this move above no real Pullbacks immediately following the breakout. Plus, like we said, we need further evidence that this has actually broke. So we're looking for in the case of a downtrend, we need a higher high. So that does not happen until about this point right here at this point here, we have broken above these former highs and we've broken the trend line. So this is where once we start to pull back from this level, that is where we would pull out her tool. And if we wanted to use this entry meant that we would be looking to place orders here at the 61.8 and here the 78.6. Now I can see that the market didn't actually pull that to that. Of course, we wouldn't know that in real time. All we could do is throw out our tool and place our orders right there and right there. So as we can see in this case, the market doesn't touch it. There is no perfect entry. Do not think that you'll be able to get into every trade. I recommend you pick the entry methods that you like. That's why we covered several different ones and videos. I've found that they all generally worked the same. It's just your personal preference, some you can set and forget. In my case, I like to put our orders and then go to bed and wake up in the morning in their cell. Others like to actively trade. I did that for 10 years. I'm not interested in sitting in front of my computer all day, so I no longer look for those trades. But it is viable. And here you would have gotten that signal if you waited for the pause. You got one right there in the first video. We're looking for a score bar, cause we have 112345 And then we had this pop higher about it. Now you would have had your stop below this low. At that time, a pirate comes all the way back to when he got stopped. Although alternatively, if he had missed that entry, there is this other consolidation down here where you would have traded the pop above. So let's go with that one. Let's say that you miss that trade order. We also had a news announcement right here. So you may have avoided taking the trade right before that. So you waited for this pause. At this point, you are looking at the risk. Remember, for this strategy, we can put it five pips below the consolidation low. So it would have been right about the bottom of that. We're entering on the breakout above. So we're looking at about 80 32 point for a pit stop on my little tool. There, you can see 300 24. That means 32.4 pills. So 32.4 times 1.6. It's 51.8, right? We're entering right there. 51.8 Pips would have been Raedle there. Right? So as you can see, we're getting out on a move higher. We do not know that that's gonna fly higher. In hindsight, it looks like, Oh, we could have taken a lot more out of that. But we do not know that we do not know that this low is the one that's gonna launch. This could very easily moved up to here Channel around. Um, we do not know this is coming. Get rid of that notion that we can predict big moves. There's no reason to We make more profits than our losses. We trade in terms of mathematics, and that is if we trade probabilities. So here we have a very good chance. You know, we get out of this, it's below this former high typically are targets. If you had a little bit shallower, pull back, we'll see. We'll be right around the high. So we're not betting on this major move simply because even though we have some evidence that the trend has reversed, we are fighting a longer term move here. I noticed one, uh, Mrs Gore here for a second because we have one occurring right now in the British pound USD . So we have this trend line here very steep. And we had a breakout above once again we're waiting for a former high to be breached. It reaches it here. So now we could potentially settled orders here, here. Or if we're waiting for the Prakit strategy, our order would be down. Alright, Right in line with 78.6 would be looking to get in down here. Stop down here and once again even if we take entries here, here here we are. Each one will have our risk 1.6 times. So whatever our risk is on the individual trade, we put out an order for that. So if we have a 10 Pip are what would be artist here? 72 pips plus five. So we'd be looking at about 77 pips or risk their 77 pits times 1.6 will give your target for that one on this one. Here we'd be looking at about 45 plus five pips about 50 pips. So 50 pips times 1.6 to give your target for that entry. So even though we're taking multiple entry. Don't get all out of the same target for each risk level multiplied by 1.6. You're gonna have target staggered up here. And they're generally going to be below this recent highs that even if this pops back higher but fails to make any high, you're still gonna be out of the tragedy. Were out of the trade simply because we're fighting this downward momentum. Still, let's look at a downtrend. Here's a bigger move. Long term downtrend. We could see this last wave lacked a lot of strength compared to this one. This one's just relentless. This one falls a little bit, pauses out and then reverses. Let's change the time frame on this to the hourly. So you see, pop higher, we make a new high. So this high is higher than the last high in the downtrend. So we have a potential trade here. Once again, we can use our Fibonacci entry if we so choose orders at 61.8, we would have definitely been field on that 1 78.6 wouldn't have been filled on that one. And if we use the pockets crabs, your order women right down here in about the 78.6 level and that would have been filled either We switched to the half hour again. We can see there is no pause it the bottom here. So the waiting for a pause strategy would not have worked here. So basically Like I said, there is no perfect entry that's gonna work for every single trade. This one at least you would have gotten the one trade on the 61.8% level. So for that one we are placing or stop it, you are answer 0.61 point eight. Our stop is five pips below the recent low. It's really an animal. 17 pips there plus five looking at a vote 23 pips So 17 plus five or sorry, 22 times 1.6 35.2 So 23 pips Heiress to the downside, we're entering here 30 fives 0.2. So our target would've been right about in that area there say that we had been filled on this 78.6. In that case, we'd be looking at about nine pips plus four or sorry plus five. So we'd be looking at 14 pips of risk times 1.6. So 22.4. So from this point here, 22 points floor right about there, right? So you could see the staggered entries, different targets based on where we're getting filled. And that way, if we get just a bit of a surge up and this stalls out and collapses like it did here, Yes, we have a little bit more outside, but basically it collapsed. And this is why we take the targets just at 1.6 that if this happens, we're out of our positions and, you know, we can move on to another trade so pretty conservative, But we still are making more than our risk a couple different ways to enter. Like I said, not you're not gonna find one that works every single time in terms of being able to get positions. The markets just it doesn't work that way. It's a little weird dynamic, but using the seven Accio typically at least get one entry waiting for the pocket or the 78.6. You're going to get a better price, but you're gonna get it much less often so things to keep in mind every trade. Has he stopped the target? Put these orders out when he placed trade only risk 1% your account in one pair, and that includes taking multiple positions. That way you in a string of losses, will significantly draw down your account. We only trade in the trending direction. In this case, we're betting on a new trend, but we have evidence to suggest that that's occurring. Play stopped five pitbull. The reason. Low for a downturn reversal place. They stopped five pips above the recent high for an up trend reversal. If you're using, if you are waiting for the pause to entry to enter, you can put the stuff five pips outside. That consolidation targets 1.6 times a risk. We do not deviate from that. Do not try to make more than that simply because we are going against a bit of longer term moment. Option already is risk to break even on the remaining positions once the first targets hip . So if you do have multiple positions out, you can reduce those to break even once your first target has been hit. Trading of also statue risk of loss only trade with capital that you can afford to lose test out strategies before using them to make sure you're actually able to implement them. Being able to see these things a real time is very good from them watching a few examples on a video. So pull up the demo account, make sure that you can actually do these yourself in real time. Be able to put out your orders, capital, your targets, your stops and, until next time, happy trade. 9. WEDGE BREAKOUT FOREX STRATEGY: so trend training is where the money is. There are multiple ways to trade trends. This is a reversal strategy similar to the trendline break strategy. As always, low risk relative to reward potential can be used on all timeframes on longer timeframes. You may not see this pattern too often, since it takes multiple price ways to align. To create a wedge in the examples will look at exactly what languages. So we trade in the direction of the trend in this case, a probable nutrient. The wedge and evidence that we're looking for suggest that the trend is reversing. So that is why we will take a trade in the opposite direction. The trend, this strategy we can set and forget. No touchy touchy. Once we have our entry set, our stops and our targets, that's it. We letmathe through the work. Our profit targets are bigger than our losses, so isolate and ascending which this would be an uptrend. So we're gonna look at exactly what that is. But basically the wedge is characterized by waves higher, which are smaller than the last week. So basically, you can think of it. Uh, it's almost like a funnel where the price of just narrowing and narrowing. But it's within an up trend, so the price is making an overall movement higher. Yet it's getting squeezed as it does so we wait for the price. To Blake, the load break below the wedge should fail to make new highs. That is the only confirmation we need. The order doesn't matter here, so it didn't make a new hot or failed to make a new high within the wedge and then break out where it can break out and then fail to make a new high. We do wait for the price to be outside the wedge. Before we look for entry, we can either use the pause method which we discussed. Basically, we're one of the first videos were just looking at trends or we can use the pocket strategy stops five pips, but which high targets are 1.6 and 2.6 times or risk The wedge indicates a reversal but is unproven when we take the trade. Therefore, we only use two targets and don't get greedy. Expecting a massive reversal as you see there was still making quite a bit more are winners that we are on the losers as we can see. If you take two positions, we will end up with 2.6 times harvest. As always, we do try to take two positions instead of taking one position for too many lots. Take two positions for one many lot each. Risking be risk must be kept below 1% on all orders, and that is cumulative. It's so we can isolate a descending, which which is a downtrend. That would be the price is moving overall lower, but the price is getting squeezed. The waves lower, getting smaller than the last wait for the price to break above the wedge or should fail to make a new low. That's the only confirmation we need. Once again, the order doesn't matter. We do wait for entry to enter outside the Web, so we look for the price that pause. Or we can throw a pocket strategy entry. Stop this five pips blow the wedge low using the same targets 1.6 in 2.6 times Risk. Keep risk below 1%. Let's get the downtrend First we have the euro JP, why up here? I have to go back a ways to find a kind of a nice wedge pattern, as indicated on a longer term. Charles at the four hour he's might not come up too often simply because it does take multiple waves to sort of a wine as they've done here. And you can see this is is starting to funnel. Even though the angle of this is very strong down, we can see that it's starting to lose a bit of a match. We have a very strong wave, a bit smaller wave than a bit smaller wave. So that's what creates this funnelling type appearance of these lines. We have to pause. Then we have a breakout. So here is one were starting to look for trades, but we still need one more piece of confirmation, and that is a lower her story a higher low. So it pulls back here we have a higher low, Beautiful. Now we can look for entry. So if we used the pocket strategies, one of the, uh, easiest to use in this case we would have been looking for an entry in this area here simply because this is the pocket area of the last down wave So by putting an order out there, we catch any sort of last bit of selling, you know, in anticipation that this is going to occur. So we that we worked out very well. We do not get enough of a slowdown to give us the pause method. We have this pop higher. We wouldn't need to see a few bars down and then this would have needed the pause here. And then we could treat a breakout. But it doesn't happen. So the pocket strategy, as I mentioned in the pocket Strategy video. It's one of my favorite entries. So because you get a great price, you won't always get filled. But when you do, you get a good prints. So this one and originally our stop is below the wedge low both sides pips below so we can see the low. There is 23 point 1 36 23 0.2. So we would drop that down. Five people of that. So we're looking at entering right about here. Our order would have been set waiting for that entry there, and we're looking at almost exactly 90 pips of risk. So 90 pips times 1.6 If we have enough room for two positions, whatever is to micro lots to many lots. Where you gonna sort? We'd be looking for our first entry at a first except 144 Pips said Been right about here. First target and then 90 pips times 2.6, 234 pips, remember, this is a four hour chart. This is why we're getting some bigger moves. Though 234 pips would have been right about there. You can see this one produced much more honor winners that we didn't hurt that went on our users. And that's the kind of strategy one. All right, then we had a upward wench. Uh, not too long ago in the U. S. D. J P. Why, this is once again for our chart. As you see again, we have this strong run higher, followed by a little bit weaker run are followed by a week run higher, which creates this funnel like appearance. Price moves outside of the wedge. Still, that doesn't really provide us with a ton of confirmation. But then we do have this here basically needs the same high than drops away makes another run. So here we could have used the pocket strategy. Once this price dropped away, we would put in order out right here. So we were not feel basically on this bar based on that pocket rate there. Here's our stop. Five pips above. So we're entering right there. Target of roughly 16 pips. Times 1.6. So from our entry point there, we're looking at a 25.6 pip target. That would have been right there. What? We really had 16 pips. Times 2.6. So our next target would have been at 41.6 tips. You know, it's like that would got spilled on that bar right there. Actually, here you're spread. You may have got out of that. Otherwise you would have been maybe in this for a little bit longer until we got out on that bar. Great. There you can see 1.6 and 2.6 that fairly conservative. Sometimes you will have a little bit more room to the downside. But we want to get out of this. We're not sure if this trend is going to continue to reverse all the way or if it's just a deeper pullback. So all we're doing is betting on a deeper pullback, which this occurs. These would be shallow Pullbacks, as we could see. So we're betting on something more substantial. We have the wedge and a lower high to confirm it in this case, and just looking for a bit more downside to come. If we would have tried to go for more, we probably wouldn't hit our targets, and we would eventually been stopped out here. So don't get greedy. Just take the targets that we can, Um, in this case, once again, we have the pocket entry. We do not have a pause entry. We potentially have one setting up here. Once this move lower, we have a little bit of a pullback. So what we're doing is waiting for a pause that we can trade a break lower. But we need at least four bars. 12 three and we break out. So if this would have lasted, if this would have pause for a couple more bars and then broke lower, then we would have had the pause entry based on that area right there. But it doesn't pause. Clayton Long enough to give us confirmation, so the pocket entry would have worked well on this one. If he did have that pause, then you could have used the pause Braco with it. So the review. Every training as a stop in a target place these orders when you place the trade, we only risk 1% of our accounting. Anyone pair taking multiples is positions to get out at different targets. Councils, one trade. So even though we may take whatever your position is too many lots to two positions of one , many, a lot each, those still have to add up to less. The risk on those two positions must add up to less than 1% your account that we even a string of losses won't significantly draw you down. I only trained the trending direction. In this case, we're betting on a new trend, or at least a short term shift in direction. The wedge helps us to confirm that we place to stop five pitch below the Web slow. Please stop five pips above the west, which high targets are 1.6 and 2.6 times a risk. Even if we're taken different entry prices. We didn't really discuss that simply because we're using the pocket strategy mostly. Or the pause break out. The Fibonacci entries wouldn't really work well on this simply because we're looking at two small of moves for them to really be relevant. So we take 1.6 and 2.6, and we're not getting greedy. We're just expecting a short term reversal. We don't know if it's gonna be a full fledged reversal yet. Awful. We reduce risk to break even on remaining positions once the first target is hit. We don't have to do that is simply something. If you want to do, you can trading of also stand to risk of loss only trade with capital that you can afford to lose testing out strategies before using them. Test out strategies to me before you use them to make sure you're actually able to implement them yourself and in real time. To work on this in a demo account, draw the wedges, isolate them and look for these sorts of entries. I go through the other videos if you need to. To see how these entries work again and practice practice practice until next time. Happy trade 10. HEAD AND SHOULDERS CANDLESTICK STRATEGY: Trent Trading is where the money is there multiple ways to trade trends? This is a reversal strategy. Evidence suggests that a new trend has begun based on this pattern. As always, we want our reward to be greater than a risk, and we can use it trade in the direction of trend. In this case, it is a probable nutrient the pattern itself as evidence of a reversal, since it appears when trend momentum has already showed signs of reversal. But this strategy we can send forget once we have that entry point, we've center stuff. We've sent our targets. We could just letmathe through the work, but it hit your stopper target. So a head and shoulders talking pattern is characterized by a swing high pull back lower. A higher swing high pull back and then a lower swing high is how we get that transition and momentum from an uptrend to a downtrend. We've had that higher swing high. Now we've had a higher swing low, so we're starting to collapsed to the downside of it, and we're expecting that downside. Move to continue and neck line connects the two pullback lows. Inter short break below the neckline. We can also use a trend trading consolidation entry as the price drops toward that neckline . If you get a bit of a pullback higher again and get that consolidation, pause, weaken, trade a breakout to the downside of that consolidation. Since we already have some confirmation that a downtrend has begun, then we can also take another entry at the neckline. If you want stops, go one pit above the right shoulder. Target is the height of the pattern. Subtract from the breakout price. We want to be really conservative here. Don't use extremes of price. It's better to get out with a profit that missed a target by one or two pips. Risk must be kept below 1% on all orders. If we do end up taking to entry points, you still want to make sure that at risk is less than 1% on that trade. So the controllers bottoming pattern is characterized by swing low, a pullback hire, a lower swing, low a pullback and a higher swing low. Once again, we have that transition and momentum for making lower swing lows to lower to higher swing lows. We're starting to see some upside portion this, and we're expecting that to continue. The neck line connects the two pullback highs. The main entry is to just enter when we break above the neckline once again. If we do have a bit of a pullback before that and we get one of those consolidation breakouts we covered in the trend trading video, then we could trade that as well. When we get that for bar consolidation, a pop above it, you can go long one pit below the right shoulders where replace or stop. And our target is based on the height of the pattern added to the Braco price. Once again, we're gonna be conservative. I'll show you how to do that. Risk must be kept below 1% on ours. So let's look at a downside. Transitioning toe on upside first this of the ache and shoulders bottoming patterns. We have this the left shoulder that this drop a bigger drop. This is our head. We have a pullback moved to a higher low. We could see we made a slightly higher low here. This low is higher than this. This is the right shoulder and then we're having this move to the upside its. We have this neckline which connects the two full backs. So our entry point is basically right. As soon as the price hits goes above this neckline, we enter long once again. Like other strategies, we don't wait for bars to complete. Bars are arbitrary. We don't care. This price could have run too far. Right? The time if we wait for a bargain complete so soon as that bar pops above the price pops above that neckline we're looking to get in. We place our stop one pip below this right shoulder. As you can see, we have quite a bit of distance now between our entry point and this. That's why we don't need to put us five or six pit stop a little this right shoulder, as we did with some of the other strategies. Basically, we're putting it right at that low. Just a touch below. So this box represents a risk. Then we're getting in here and our stop is down here. Next, we need to establish our target. One way to do it quite easily is to just grab a trendline tool, and we're just gonna use it to measure the height of this pattern. So once again, we're not going to use these extreme points. We're going to use points where the market was able to reach it and close or open Basically that the bodies of the bar is not just the little tailings. So here, eyes about where one of these So you can see that little square marks the top of those and along the bottom. Here, let's get we don't want to use these extremes. We wanna use a price. Where the bar where the market seemed really respect and so we can see a number of times the bark loader the bars closed and opened at this level here. So that's the level we're gonna use instead has been See if we just compare that to a risk , we're still getting more profit than risk. So we add that to the breakout price to get our target, and we could see it just barely reached. That's why they wanted very conservative with this. So I'll even horribly knock off a few pips. Just make sure I get out. So there we would have male get out with a couple pips to spare. Like I said, this this strategy, especially since we're not using really any trend. I'll trade these whenever I see them. We want to be conservative because the market does have a tendency. If we get too extreme in our with our profit targets, it isn't gonna make it to him. So be conservative. Make sure you get those Pips because once we have that break out, it's pretty high probability trade in the sense that it's gonna move in our direction. But it's not. It won't always move a ton in our direction. So be conservative with the target. So let's look at another one this time. A downtrend. And it actually occurred right after this one. So we'll take a bit of practice trail spot these in real time. So here we have a left shoulder pullback. Move up to the head here, pull back, then a right shoulder. We pull back, making lower, high and a drop below. So we would have taken the short right as soon as the price drop through the neck line. Let's again we use this box. Do you represent our wrists? We would have been going short just below this neckline, and our stop is one tip off. So just barely above that last high. So here. So there is our stock level right here about that high entering down here, and our target's gonna be down here once again. We need to use use a trendline tools to establish the height of the pattern. So we're going from the high, but we're not gonna use the extreme. We're gonna use levels that were hits This part close there. The next one opens for me. Is that level. And then down here once again, we're not going to use the extreme low. Instead, we're going to use this area where we had a bit of consolidation to mark the height. Our parents, so you can see the conservative is much smaller than the actual light of the pattern. And that's fine. That's what we want. If we compare even that conservative hard it to a risk we and see, we have quite a bit more profit potential than the risk which is represented by this box. Our profit target represented by the height of this lines. We would add that or subtract that from our breakout price and we end up with a target right down here. As you can see near the bon. If we would have got too aggressive on our target was down here. We may. Now I got no. This is very common that, as I mentioned before, I want to be conservative simply because remarkable generally run in our favor. But it isn't necessarily a full blown trend reversal. So we want to be able to get out and take our money, be on our way, look for other opportunities. So let's get if we use that conservative target profit darted down here, and we are easily open and looking for other opportunities. So every traded stop target, put these orders out. When you place the trade Onley risk 1% of your account in anyone. Pair, even if you're taking different entries that way, even a string of losses won't significantly drive down your account and take entries at both places. We didn't cover that in this video. I'm gonna cover another entry point in a future video, which is gonna look at all these patterns. There is one other entry that we can use, but we're not gonna discuss that in this video is it's a bit more advanced. So right now you just have that one entry point on the neckline break. So make sure that that Anthony is less than 1% your account on Lee trading the trending direction. In this case, we're betting on a new trend, at least for the short term. Based on the head shoulders break place to stop one people both right for right shoulder for a topping pattern. One pit below the right below the right shoulder for a bottoming target is the height of the pattern, and we add that to the breakout price for a bottoming pattern subtracted from a braco price for a topping pattern. Be concerned about cannot stress that enough. Do not get ripped off for a couple pips just because you went too aggressive. Use a conservative target added units. Attractive couple pips from it here. As long as your profits greater than your risk and you can easily compare those two, he'll be fine. So just be conservative trading ball. Substantial risk. A loss only trade with capital even for its lose. Test out strategies before using them to make sure you can actually implement them and that they work for you. looking at a few had shoulder patterns on a video isn't gonna make you an expert. You need to find them. The Elvis bought them in real time. They'll put out your orders, draw the necklines, get the entry, set the stop, and also be able to set your conservative target and understand how those conservative targets are pre it. Until that time factory. 11. TRIANGLE CHART PATTERN FOREX STRATEGY: so trend training is where the money is. Triangle breakouts provide a way to participate in the next way of a trend. As always, at risk is going to be lower than our potential award. And as mentioned, we're gonna see triangles on all timeframes. So we trade in the direction of the trend, which is the direction of the triangle breakout triangles air called a continuation pattern , since they slightly more often than not break out in the direction of the prevailing trend . So if we have the price moving higher than will have, ah triangle take pattern both 55 60% of the time, we're gonna break higher. But we don't need to make that assumption. A break out in the opposite direction is also tradable. With this strategy, we can send forget we consider order outside the triangle weekend center stops that are targets, and we just let Matthew work as indicated. Our profits are always figure that our losses sweeping it for right 45 50% of the time we're still gonna have a winning strategy. A triangle is characterized by narrowing price action, and we need at least two swing highs or swing loads to connects. What that basically means is that we're having these swings back and forth that are getting smaller and smaller back and forth, basically forming a triangle like appearance when we draw lines on them, the more narrow the price action becomes, the better the opportunity because our risk gets lower and there's a greater possibility of a sharp move will develop shortly. Markets do not do nothing for very long. So as they narrow into the what we call the apex of the triangle when the price action gets very compact ID where we it actually gets springs. We're expecting a big move. When the price moves above the confines of the lines or a triangle we entered long, we place a stock just below the pattern. The height of the pattern at the widest part is what determines our target. So we take the widest part and add it to the break out front. Don't use extremes and price. When you're getting this target, it's better to get over the prophet, then to miss a target that is too aggressive by a couple of tips. I'm gonna show you exactly what I mean when we look at a couple examples. Profit should be at least 1.5 times Heiress Press oppressor believe we want two or more times. Risk must be kept below 1%. With this type of strategy, we're just taking one entry when exit one profit target. When the price moves below the confines of the lines or the triangle we enter short, we place to stop. Just of the pattern target is the highlight powder, the wives parts attracted from the breakout point. Because we're going down this time. We don't use extremes of price once again to establish that target, we'd rather get out, then be too aggressive, and profit once again should be 1.5 to 2 times a risk. You're more. Let's again. We just have the one entry exit and stop so on that position, which should be kept below 1%. So let's look at an upside breakout first so we can see her downside breakout. So in this case, it is a continuation pattern we have. We're looking at the aud USD one hour chart. You can see the prices moving down narrows here bit, gets a bit wider, but that we have this narrowing pattern again. So we need at least two swings in order to even create these lines, which we get here. So we have our first wing where these start. Then we notice we have two swings which are quite a bit narrower than the last two. So we have this compacted price action where the price is narrowing and once we've drawn those lines, we noticed we get a major trend line break of that. So it breaks below this trend line here which signals our entry into a short position. So we are entering here. So are stop goes on the corresponding bar of the breakouts or stop would be just above the pattern, right near a breakout point or above our break, Hotpoint. So don't make the mistake of saying, Oh, our stock goes above the pattern of putting it way up here. That's too much risk. We could put it right down here. Since it's broken to the downside, we expect that to continue. If it comes back here, we don't know what's gonna happen, so we're gonna get stopped out, and that's fine. So we're gonna put that right above the pattern for a downside break up. So the stop always goes outside the pattern opposite side of the break out. So there we can see our would be entering short right about here, just below the pattern, we can see what risk is. So we're looking at a vote 13 pips of risk. There you can see 1 29 That means 12.9 pips on my little measuring tool there. So 13 pips. As for our target. Oh, let's just Marjorie, actually, Sorry, actually would be just below the powder in there. That is green for entry. Okay, so they're easy entry stuff, and now we need our heart. So, as I mentioned, I normally just use this. You can go through and actually do the math if you want, but I find this is easy visually, uh, to see where your tiger will be. So we have a couple extremes in here, which I do not like. I generally do not use those, but here we have a level that the market has reached quite a few times. So we will use this as our low and we have this year another spike we did which we want. We want to take areas where the market hit, so we can see the price did reach this area a couple times and also this area. So we're more inclined to use this area here than this extreme level. So as we can see, the height of my target is quite a bit less than the actual that won't always be the case. But just when you have these extreme bars simply because the market didn't reach those and stay there for very long, we can't really consider the relevant levels. So there I have my target. First thing I wanna check is based on my entry point. Is my risk bigger than where is my profit Bigger than my recipe And see, just by lining that up there that my reward is quite a bit bigger than the risk that I have here. So that's a good thing. So we can go ahead and set our target. So, based on our entry point there, they're looking at a target down here so you can see we're looking at about a 2 to 1 reward to risk ratio here, which is pretty typical. A little less than 2 to 1. We had 13 Pips risk in about 25 Pips profit. So that's a get trained. Other times we will have quite a bit more say if these had hung around at these levels than we could have used that hole with the triangle and then we would have had about a 3 to 1 or so. So it's looking another. This is a bit bigger one here. Once again, it ends up being a continuation pattern. Overall, we have some choppy action here. The price then moves into this triangle. Let's see, narrowing price action. Quite a big news related moving here. So this based these basically create our middle points for connecting or our second swings . Then we have 1/3 swing. So top connects bottom connects bounces off of it here. And then we have this rally up through the upper trend line. So once again, entry will be just above the pattern right there. So as soon as it breaks out, remember, we don't wait for bars to complete. I should point that out again on all these strategies. No reason. A lot of our complete we don't want to be entering appear when we can enter down here stop goes just below the pattern at the break point on the opposite side. Killer That red. So there stopped. There's our entry. Now we need to establish our target price. So here we could see a little bit of extreme here. I don't want to use that this area a little more condensed, so we'd rather use this area here this extreme only hit once. We don't want to use that. But this area here was hit on multiple bars, traded through quite a bit. So it is a significant area, so we can use that one. So, as you see, this target is pretty close to the height of the pattern. We knocked off a little bit sore being a little bit conservative, which is always my preferred choice. I'd rather get out of a trade than be too aggressive in. I haven't run all the way to my target and then missed by a few pips. So we add this to our breakout point and we can get our target. So there is our target and we can do a quick visual check to see if our target is bigger than our loss. And we could see that it is. We're looking at about a 2 to 1, and we can just firm that entry point to stop. You're looking at rounded to about 33 pips and to our target 66 pips. So exactly to the one which is the kind of trades were looking for. Once again we will see triangle patterns where will make about 1.5 toe one for profit to risk. If we're below that, we probably don't want to trade the pattern and occasionally will have large triangles that really narrowed down to a point. And in those cases, we may sometimes get three or four at times are risk on our profit. So those are ones that we really like to see so little review. Every trade has a stop target. Put those orders out when you place the trade risk 1% or less of your account in one for expert or trade. In this case, we're only taking the one entry at the break. Oh, point. So risk should be pretty simple to calculate that way, even a string of losses won't significantly dry down your account. We trade in the direction of the breakout places stop just outside the pattern. On the opposite side of the break target is the height of the pattern. For an upside breakout, we add the height of the pattern to the breakout price. For downside breakout. Subtract the height of the pattern from the breakout price. Be conservative here. Do not use the extremes of price. We would rather get out with a profit, then missed our target by a couple pimps because we were too aggressive. Trading of also stand to risk of loss only trade with capital. You can afford to lose test out strategies before using them to make sure you are actually able to use them and make them work for you. Chart patterns are subjective. That should say chart patterns are subjective since the break. Oh, point is determined by the trend lines. How you draw those trend lines will determine your breakout price where your stops go where your targets are, so this is a little bit of don't call it an art, but it does take a little bit of skills to be able to get used to drawing these patterns that your targets actually get hits that you're not getting too many false breakouts, so it will require some practice on your part until next time. Happy tree 12. FLAGS AND PENNANT FOREX STRATEGY: so trim Trading, as I always say, is where the money is. Flags and pennants breakouts provide a way for you to get in on the next trending move. As always, at risk will be lower than our potential award. You're going to see these types of patterns all time. Flame timeframes, flags air Gonna be our focus. Pendants are very similar and traded in the exact same way. But flags occur more often. So trade in the direction of the trend, which is the direction of the flag break out flags air called a continuation pattern since they slightly more often than not, break out in the direction of the prevailing trends. If you have a sharp move down, we'll have a flag which will work of art in the second down flag. We expected to drop down about 55 to 60% of the time quite a bit of the time, though for you that 45% is gonna go the other way. So make no assumptions. A break out in the office it direction of the trendy is also tradable. With this strategy, we can set and forget no touchy, touchy Letmathe do the work Onley trade neat flags. If in doubt, use the many tragic, many channel Braco strategy we cover in video three. Another great flag has two parts. The first is a sharp upward move, which we call a flagpole. Swallowed by a very tight consolidation. It is angled slightly lower or sideways, very rarely in his angled slightly up. We draw lines along the highs and lows of the consolidation. Consolidation should be at least four bars and the breakout level neatly defined. I'll show you exactly what I mean by that when you look at the videos for the examples. When the pipe price moves about the confines of the lines enter long places. Stop just under the pattern targeted the height of the flagpole added to the bottom of the flag. Going use extremes that price once again, we've gone over this a prior videos, much better to get out of a trade, then to be a bit too aggressive. Ent Mr Target Biasi Pips only measure the sharp moves and don't measure slowdowns before the consolidation. I'll show you exactly what I mean by that in the examples. When in doubt, use 1.6 times your risk as your target. If you take multiple positions, exit one position at 1.6 times risk and the other position of the target. This is a fusion, I guess you could say of the many channel breakup strategy, which is similar but a couple differences. So this is taking some of the elements of that which is a strategy I like and applying them to. This risk must be kept below 1% rises. How many entries you take, even if you're using the multiple targets or stops, keep the risk on all the positions on that set up below 1%. In the alternative case, if we have this upward flag, but the price drops below the flag, we have to Shortstop goes above the pattern even more conservative with Target. Since we're going against the prior trend, we knock off approximately the height of the pattern. An upside down flag has two parts. What's again first is a sharp move down, which go flagpole, followed by a tight consolidation that is angled slightly higher or side with very rarely will be slanted down. Draw lines along highs and lows of the consolidation. Consolidation should be at least four bars with a breakout level neatly defined. When the praise moves below the confines of that flag, we enter short place to stop just above the pattern. Same target we're using The height of the flagpoles attracted from the top of the flag. Don't use extremes of price. You also have the option of using the 1.6 target if you like. Risk must be kept below 1%. If the price rallies above the flag. Winter long stop goes below the pattern. We want to be conservative again. Since we're going against the prior move, we're gonna knock off a bit of that profit. So chosen a few entries here on purpose. They're not. They're not all that pretty, to be honest. And I've chosen them for a reason simply to tell you about a few other insights into trading. So I've ever eaten something here. For all these strategies, the exact entry doesn't matter over a great many trade to this, simply that you make more know that got cut off more on your winners than you do on your losers and win about 45% of the time. So if you win more than 45% of the time and make more on your winners than on your losers. It doesn't matter. Yes, I say this is how I trade a flag pattern, that someone else trades it slightly differently. The point is, is that was long as we have this overall, we're gonna enough being profitable. So we have this flag here, very sharp move down. Followed by this consolidation. I've I've used this one purpose simply because we have a high that's defined by three bars here and we have 1/4 parts. We have at least a four bar slowdown. We have a low that's defined by the major low and also by these four bars here. So the first question, a lot of trains Alaska's Well, do I go short here or do I go? Sure. Here, when I'm trying to tell you, is that it doesn't really not, because on some trades you'll go short here. And if you do this trade, you know, 100 times in your career this is gonna work out. This is gonna work out. Sometimes you're gonna lose on it. Sometimes you're gonna win on it at the end of the day, it all comes out in the wash. So there is a potential entry here where you could say, All right, that pulled back. But now we have a consolidation. This is the flag. I'm going short and you go short right at this weight line. As this bar drops below it, you put your stop appear just above the highs of the pattern and you ride the momentum down . Or you could say no. This is the very low of the pattern. I'm going short here putting my stop up here and write it down. So it in either case, this broke out, pulled back. You wouldn't have been stopped out, though. And we continue to the downside. So this is a flag type pattern where we have a sharp move, pauses for at least four Mars. We do have to find entry points. By that, I mean, you have at least a couple bars which highlight an entry point. Now we need to see your out. Our target. So once again, as we've looked at in a few videos, this could be tricky. On the triangles video, I said don't use extremes. I showed you how to do it. here. We're gonna do the same things. We have this sharp move higher now. Technically, once it gets here, we're in freefall This far, it's We're not in free fall yet, but you can see, while we started up here, we pulled that quite a bit. This bars, where would start to notice a lot of downward movement. So I'm using that the actual start of that decline, where it's relentless down to here, I can't really pull back and it comes back to this point This to me, this area tested multiple times I I like that as my target. I'm not going to use this extreme down here because it wasn't hit very often bounced right away off of it. Where is this area? Did bells. But it can't right back to. So this is a target that I like and quickly compared, regardless of which entry point I use. Whether it's that one I can see this is my risk for that trade. And my target is much bigger even if I enter down here. In that case, this is my risk for my stuff. To my entry points of that represents my risk and my target is still bigger. So the target goes from the top of the flag. So we put it right at the top of the flag. You see? Are eventually our profit target would have been right down here and we would have gotten out of that before this mess Here, it's now we still have been able to get out down here. But notice if I would have been extremely aggressive in my pricing of this or my target, it said, Okay, that that's how much we're going to drop. I would have been way off. And even though this came all the way on side and would have showed me a nice profit, I miss my target by a long shot. Be conservative. This is not looking at things in hindsight and saying, Oh, I need Teoh be conservative. This is we need to be concerned all the time because this sort of thing is gonna happen a lot. If you're too aggressive, you're not gonna hit your target. I looked at one another, one to which is a bit ugly, bit different structure and I want to highlight a few things. Here is Well, we have this shirt move down Once again, it hits this level multiple times, so I don't mind using. That is my target streams of color that this one a little more ugly. Since it's not relentless selling, we kind of want to see that relentless momentum, like what we saw here, where it's just boom. But in this case, it's still okay. We can see there still overall selling. There's no real buying going on. Then we entered this pause at four bars basically here. We don't have any clearly defined breakout areas. If we were just looking at this in real time, basically, it's just slow down, but we don't have a flag yet. As more bars developed, we can start, see okay along the bottom. Here I have a potential entry point based on the lows of these, so I can draw trend line there and along the highest. We also start to see this is well, we're edging higher. Lows are edging up, so here we start to see a bit longer term flag. As we can see, this is much longer than four bars, but the flag develops over those higher number of bars. We have a pop higher here which I've highlighted, said Rising equals expected. We are making slightly hard high as weii. See this We see this rising so I wouldn't trade this break out even though pops above these bars simply because we're almost expecting that the price is gonna jump of it. If this pattern continues, that is going to occur. So don't trade that 1st 1 going against the prior move simply because this is not a high probability trade based on these prior moves, we know that the's Moser these sorties high, they're creeping up. So we don't want to trade something that's just potentially creeping up on this type of flag. We would much rather see that break to the downside, as we do with mole trends, Treme trays. We'd rather see it go in the trending direction. But since we have a tendency here of the price creeping up, do not trade a break out when the prices creeping up. So here, looking at this major decline from the high of the parents, so our target would have been down here. I'm not gonna let me slept there. So what's gambling quickly see if our risk is greater than her less than our war. So entry point would have been right about There are stopped just above that high, basically with a bisney high of this box if I just move it down a little bit. So here is our risk, from this point to our entry point and we could see are expected, Prasit much bigger than that. So I get trade to take. Why now Get a target down here. So if you want the actual numbers, we could like that. So we're looking at about 30 pips of rescue and see 301 there. That means 30.1 pips and women from the entry point down to her target, looking at about 46 pips of profit. So once again, a few insights here focus more on letting the winners run out to your targets. Like I said in every video, no touchy, touchy. Just let the math do the work for you. That's what matters over the long run, not whether you take this trade here or this trade here. Another thing I want you to think about is the tendency of the price action. We're seeing that the prices making slightly higher high. So in this edges above your trendline. We know that the race is making slightly higher highs. So don't trade that as a breakout because we have a tendency already. Where is this When this makes a lower low? That's a slightly different tendency. And also we have a flex. We have downward momentum. So we want to trade more. The downside breakout in this case, then trading this. Now, if this rockets up, then pulls back, we might have a some evidence to go along. But that is a different strategy, which we're gonna cover in future videos right now. Look at the tendency and say All right, we've just gone down, were slightly rising. So if this just peaks above that trendline, that's not a good trait toe look for I would rather wait for this downside breakout simply because it shows a different tendency. The prices making it lower low here. And I'd rather purchase paid in the downside, let's can be conservative with your targets measured out with just the strong moves, and it's from the top of the pattern, so every train has to stop and turn. We put those over and we place the trade risk 1% or less in your account portrayed that way , even string losses won't drive down here. Account these. Take prep. These take time to practice and spot trade. They look easy. But there are lots of similar looking powers, which are a little probability went in down trade than many channel breakout strategy in the direction of the trend, only to go back. Look at that video. It's that you don't remember it. Make sure there was a sharp move forward by a very tight consolidation or flag. If it doesn't have the right look, don't trade it like a flag trading the break up direction. Please stop just outside. The pattern on the opposite side of the break out target is based on the height of the flagpole. For an upside breakout, we had that height of the pool to the bottom of the flag. For a downside breakout. Subtract the height of the poll from the top of the flag. I use that measuring tool that just trend lines makes it very easy to quickly see whether your risk is greater than your reward. Be conservative, the oracle typically more than compensate for your risk if taking a trade in the opposite direction of the trend. We didn't look at that because we didn't have any examples of it. But if that occurs, reduce your target by a vote, the height of the flag. So whatever your stop is on the position, knock that off your target. Which means in a lot of cases, it's not gonna be a worthwhile trade. So usually we want to be trading in the trending. You're actually looked at that one example We had the false breakout to the upside. We skipped it because there was a tendency for that price to be edging higher in that flag that was singled up. So we also have a option to use a 1.6 times or risk. This is sort of a hybrid of the many channel breakup strategy. So for holding multiple positions, get you get some mode of that 1.6 and hold us for a time for the full target. Based on the pool, training involves a stand to risk of loss only trade of capital that you get support, lose test oh strategies before using them to make sure you are able to implement them, and that they work for you until next time. Happy tree 13. CUP AND HANDLE CHART PATTERN STRATEGY: so trend trading is where the money is. As we always say, the couple handle chart pattern provides a way to get in on the next training move. Our risk will always be lower than our potential award. Otherwise, we don't take. The trade can be used on all time friends. But we do want to be aware of what is happening on larger timeframes trade in the direction of the trend, which is the direction of our cup and handle break out and overall, recent momentum coming handles are a reversal pattern can be seen at tops and bottoms on Lee trade breakouts higher from a bottoming pattern and only trade breakouts lower from a topping pattern. With the strategy we can set in, forget once we have our entry weaken center stop, set a target and let Matt through the work as indicated, our profits are going to be bigger than are lost. This pattern occurs frequently, depending on how strict you are for the specifications of the trade. I am not very strict. I prefer to take more trades than less and also how you can differentiate between being too strict in Teoh to lead. So a Cup and handle bottoming pattern is created by a move lower, followed by a rounded bottom and then a rally higher to the top of pullback in the downtrend. This creates a cup like appearance where similar highs create the lip of the cup. So you just watch my mouse. It's we are moving down and then we have, uh, cup shape at the bottom. Anything like a warning label, too. So we just have this cup like parents and you have similar highs at the top of the cup. When we look at a few examples, it will become more clear. So pull back lower from the lip of the cup. Creates a handle. The handles shouldn't pull back more than 50% of cuff. We have this cup here and a handle. It shouldn't retrace this whole distance of the cup. Once again, we'll look at some examples. Traditional analysis tells us the Cup must be rounded. I am definitely not a traditionalist. A V bottom is fine. So a V bottom. Instead of having a rounded cup, we're just gonna go boom boom. And to me, that actually shows a stronger shift in momentum. I would rather trade that v bottom buy when the price breaks about the handle. Typically that trendline break stop those one pit below the handle. Low target is the height of the cup. If we're taking a conservative estimate added to the breakout point or non conservative, we can add it to the bottom of the handle. Of course, there's always the options to use targets at 1.62 point six and 3.6 times a risk, which is generally what I always do with pretty much every trade I take. I like to get some, oh very quickly at that 1.6, and then you can let the rest ride less than 1% risk on every trade we take. So a cup and handle topping pattern is created by a move higher, followed by a rounded top than a decline to the bottom will pull back in the prior trim. This creates an upside down cup and the similar lows create the lip of the cup. So in this we haven't upside down label moving higher properly and then we have. They don't like, uh, cup of the top men Upside down cup and similar lowers create the lip of the cup, so a pullback higher from the lip creates the handle. The handle shouldn't pull back more than 50% cup. Once again, a V top is fine. If we go higher and then pull straight back, that's fine by me. It doesn't necessarily have to have a rounded appearance. So when the price breaks below the handle, stop one pip above the handle, plus the spread. So whatever your spread is, you're putting your stop one pip above that high. And if you have ah, one pip spread you'd out of pity. If you have a two scripts spread, you got two pips. Target is the height of the cups, attracted from the breakout point. If we're using a conservative target, we've talked about that and prior videos. The difference between being conservative respites, not using extreme prices, stuff like that were using a non conservative, in which case we could just subtract it from the top of the handle because that would give us a concert. Of course, there's always enough and best get 1.62 point six and 3.6 times, or just which I love. As you know, less than 1% risk on the trade. So here we have the NASD's USD. It's a one hour chart moving lower. We can see. And then we get this pattern right here. As we see this is more of a V bottom and has a slightly rounded appearance. But basically, we're making this. This is what I'm looking at. Here we have a similar high. These right here it is for a second. So in this downturn we have this pullback than a move lower than we have a move higher, which pretty close to matches that last down with. So this shows us that momentum has had momentum has shifted enough to the upside to basically erase that last down with. So that's what we're looking for that shows us all right. We have enough momentum to move higher to erase that last down with. We could potentially move higher again if we get a break out off the handle. So as this is occurring, once we see this price moving higher, we're watching this in real time restraining. Okay, if we get a pullback here and it stays above 50% of this, I mean we don't have to measure exactly. But we can see this isn't a very big pullback that breaks higher. I want to get into that once again. I do not. As you may have noticed from a number of other videos. I do not really care about extremes. So the fact that this didn't quite reach that high I'm not too concerned about this area that it hit multiple times 123 bars right in here. It was reached by this bar so that that's fine by me. As long as it's close, you can see the cup like appearance here. That's what we're looking for. Then we have this pullback. We want to see at least a few bars. I'm not gonna impose a rule on this one civil, because sometimes if there's a lot of strong momentum, we may only get a couple bar pause. And if we say all right, it needs to be four bars or five bars. We might miss the trade, and I typically do like these types of trades, so I'm not gonna pose a bar limit on it. But you want to have this appearance where you have this cup like appearance, pull back, and then you trade the break out of this. So we'd be going along a soon as it breaks this sort of trend line. Of course, as I mentioned the prior video, sometimes how you draw these things going to be a little bit subjective. If you draw here, you're gonna be entering very quickly here. If you draw it, you know, like that your entry points gonna be a bit different. It doesn't really matter. In the end, it's all gonna come out in the wash over, agree many trades. So here we want Teoh established our profit target. So we have our entry there are stopped, those one pit below this. So basically, we're looking at a very small risk on this trade. 3.5 to the bottom, we add an extra pip. So we're looking at 4.5 pips of risk. We don't have to add the spread because these prices are based on the bid source. Stop will hit the bid, and we'll just take the 4.5 hit loss. So one pit below the bottom, establishing our target we're taking We could just use a trendline tool again. I don't have to do the math. Not using extremes is gonna be our conservative target. So we're gonna go right from there, which is the point here. We're not gonna take the exact stream low, extreme low. And we're gonna go from this point where basically, we're looking at the lip of the cup. So we have this high. It was hit here, hit here, hit here So that levels been used a few times comfortable using that one. So that is gonna be our conservative target. And we can add that to our break over us, which would have been right about there, so we didn't quite get it. We have this nice drunks or tired. We didn't quite get out. We would have had to wait for this next rally. Here. We can see. We would have eventually got out for a nice gain on the following day. Now, if you don't want to do, don't have to think about conservative targets training. You just take the high in the low, so from that bottom to that high right there, and you can have that to the bottom and you're gonna get a target roughly in the same area as the last target. In this case, it's a little bit higher sort arguing in there we still would've got out, basically goes, Does it eliminates that subjectivity of the height of the pattern and you're reducing it of it by putting it off the bottom of the pan. Remember the conservative pattern we went from our breakout price, non conservative target we put at the bottom says something you can do with some of the other strategies discussed to. If you're unfamiliar, don't really feel comfortable coming up with the conservative estimates you can use this. Also, you have the option of using the 1.62 point six and 3.6 times our risk. So in this case, as we mentioned, we have a for pip 4.5 risk. So you put out targets at 4.5 times 1.6 so 7.2 for Braco Price. So we would go somewhere ready to vote here 4.5 times 2.6 11.7 pips. So that would have been somewhere up in here, 11.7, right? There's we would have got out in this area here and 4.5 times 3.6 16.2 So from our Braco price, when you go there wouldn't go there, so it would have once again had to wait to. We have this way of higher to get out of that trade, but we would have locked in some profit along the way. So I do like to do that. That is always an auction, and when I entered, it shows this pattern. It's a little bit ugly again. As we discussed in the last video. There's always some subjectivity trading, and it doesn't really matter exactly how you enter if it's gonna be one or two pits difference. At the end of the day over a great many trades, it's not gonna really matter. But here we have this move higher, followed by a very ugly cup. You could say we have a sharp move higher bottoms out, rounded top collapses. We have a cut that the rim of the cup reaches very similar levels of this shows. This down move has basically erased all of this prior up move, which means we could expect some continued downside once again in real time. As we're watching this, we will have to determine how we're gonna train it. So we see this. We see the sharp drop. At this point, we gotta saying, Okay, way have potential for more downside. We do have a little handle here, but no break out. Then we have this sharpness higher. That hasn't changed anything. We still we're still making a lower low. We did retrace quite a bit of a handle. This would be about pretty much at the threshold of what I would trade because we've retrace probably about 50% of the height of this cup. So that would be about the extent If it went any further than this, then we wouldn't look to trade it. So then we do have more of a handle here, as we can see, so we can trade either the break out of this first handle, which would be this trend line. Or we have these two bars which create another trend line. And we could have traded that break out there, in which case stop would have been placed up here above the handle highest cause, both breakouts period on this side. So we would have known that's the high, and we would put a stop there. And we're looking for that continued move lower. In this case, it didn't come right away. We had to wait for butter. Stop! Wouldn't have been triggered establishing a target. Once again, you can see this is more likely the top of the actual pattern. This could have been just a few trades that went through in addition to it. So this is gonna be our conservative target for a write about their pattern, Not including the extremes to this low in this little but not including the extreme. So this place this was hit my all four of those bars that we see this area only hit by once . We don't want that. So this is our conservative target at it to the breakout price. Yeah, I can see that eventually. The price didn't move down. Although we had some choppy action through here. We did eventually get out of our party. So that's our target will mark in this green. So if we didn't wanna have to do that and we just want to take me full measure of that company handle or the cup, then we can add it to the top of the handle. In that case, this handle is very large. So end up with a slightly smaller target. So are tarred with similar area again. Um, but basically, we're getting out of this is just a different way of calculating it. As always, we can use the 1.62 point six and 3.6 times or risk. So we're entering here. In this case, are stop would have been 14.3 pips, plus whatever your spread is so around that up to 16 then you would be getting out at 16 times 1.6 16 times 2.6 60 between +33 times, 16 times, 3.6 and you would have been getting out on these waves lower as they occurred, with a final target likely down in this area. As they said in the slides, we do want to be aware of what is happening on a longer time friend. This move higher. I liked because we stayed below this low so we can see we're in overall downtrend, longer term downtrend. So even though the short term trend was up and then we saw this reversal pattern, the move to the downside was confirmed both by the A Cup and handle which we were trading and also this longer term trend. Now, on this pattern here, you see, the market is barely making new lows, so that helps us when we just make a new low. And then we have this rally higher. It helps us confirm the long as well we're moving in this choppy sort of channel. So we get that bounce off the lows here that helps us confirm that there might be some more room to the upside as we move back toward the top of the channel. So if your call if you go back to some of the other videos Trend channel training, the pocket strategy, all these can be combined to help you isolate trades, which for higher probability than simply just spotting a pattern and trading. It can always look for other evidence to help us just when a trade is worth taking. So both of these ones worked out well, This one occurred near the top of the channel and we had more room to the bottom, this one of here near the bottom of the channel, and we had some room to profit to the upside, so we'll review every trade has a stop target. Put these orders out when you place the trade risk 1% or less of your account. Portrayed that way on a string of losses won't significantly drive down your account. These take practice to spot trade. Make sure the lip of the cup is level or close to it. As that shows, the market has had enough momentum to offset the last training wave. You can also look for other evidence using other strategies. Other forms of analysis to help pick trades that are likely going to be high probability. Trade in the direction of the breakout places. Stop just outside the handle. Low or high, on the opposite side of the break out target is based on the height of the cup when being conservative at it to the brake pedal point. If we just measure the whole cup, then add it to the bottom of the handle. The same thing goes for a topping pattern, except that we're going to subtract those targets optional, and the method I always use is get out at 1.62 point six and 3.6 times aggressive. I'd rather take a couple of different positions. Same entry point and get out along the way, as opposed to just using one target. If holding multiple positions, G 0 1/3 at each training bosses down to risk of loss on Lee. Trade with capital that you can afford to lose test of strategies before using them to make sure you can actually implement implement them and that they worked for you Once again, you get any doubt to go through? Fine ease. Spot them in real time and make that decision in real time. All right. Am I gonna trade this if it breaks out? Where's my stop going? Where is my target going? You can have that all calculated out before that entry point even comes. So until makes any pepper tree. 14. SUPPORT AND RESISTANCE TRADING STRATEGY: in trading, as always, is where the money is. By highlighting supported resistance areas, we can spot high probability entries for uptrends and down trans respectively. As always, our risk will be lower than our potential award can be used on all time friends. What we do want to be aware of what is happening on a longer time frames, we're still going to trade in the direction of the trend. So for an uptrend, you want to highlight areas of support for down trends. We want to highlight areas of resistance because these are going to be our entry areas, which is not what's commonly talk. Simply. Resistance is where price stopped rising and fell, so the price is living up. It stopped going up and it fell. That's called a resistance Syria supporters, where the price stopped falling and rallied. So it was going down, stopped falling and we see a popping price. And that low is what we call support. So that's kind of the textbook definition of support resistance, which is pretty much useless, strong support resistance or where price aggressively turned and changed at least the short term direction these air levels that we care about not meandering supporter resistance, which didn't really do anything. So just because the price happened to stop falling and bounced a little bit doesn't necessarily mean that's important level. We want to look for strong levels that at least changed the short term direction. You'll notice there are a few similarities to the pocket strategy when we start getting into this, but we're gonna discuss some more misconceptions about supporting resistance, and also this strategy is a little bit more broad based. You can use it to help you with all the other strategies that we've covered to help filter some. Oh, and this one is also going to be a bit more generals. You can apply it more circumstances. So new supporter resistance levels that textbook examples are created all tough call all the time. So our job is to your which ones are likely strong so we can trade off. And which ones are weeks. We can ignore him or even exploit them. Also, we don't want to be holding a position expecting strong levels to break. So in this way we can use this type of analysis to filter out signals from other strategies . For example, if we've highlighted a strong resistance level, we don't want to be buying as we approach that resistance level because we're actually expecting it told. And since resistance causes the price to drop, we do not want to be holding a long position. So we'll look at that in the examples. So I'm gonna show lots of examples of this. We're just gonna go through some charts and I'm gonna do a little commentary and hopefully that'll help established some of these contexts and concepts and get rid of some of the, um, former maybe not so productive teachings that you got from textbooks which don't really seem to work. So we're still train with the trend. We use areas. This is the first point want, understand, use areas, not a single support or resistance level, which is commonly talk. So just because the euro, USB or some other pair stopped at 1 38 52 and bounced off that point doesn't mean that's a strong resistance level, or that it's even a relevant level. The whole area around it is what caused the price. Two barrels, not simply that exact it. All that shows is that was the last transaction that went through. It's pretty random. It could have been, you know, a couple of tips difference. It doesn't matter. It's the whole area that we want to focus on. When the trend is down, we expect support levels to be broken. So there's also a pretty different concept. Most, uh, books, you know, they say, you know, we expect things to bounce again. Not true. When the trend is down, we expect support levels to be broken. When the trend is up, we expect resistance levels to be broken. Remember, resistance level is a former high. When the trend is up, the simple definition of a trend is higher highs, higher lows. So we're expecting those resistance level street broken. This is why we continue to trade in the direction of the trend and why, when we're trading in that direction. So for an uptrend, we're not too concerned about resistance levels because we expect that to be broken and a downtrend. We're not too concerned about support levels because we expect them to be broken. So it's a pretty common teaching that during a downtrend you go short where you sell when support breaks for go long and an uptrend when resistance breaks. So in a downtrend, when the price makes a new low, you sell when it in an uptrend with price makes a new high. Do you buy this approach severely limits profit potential and makes it very, very difficult to find a place to put your stop loss. It's not a good strategy yet it's seems to be very commonly taught, and it's not ideal. Instead, we're going to do the exact opposite, not the exact opposite. Where we're going to take a different approach. We're gonna look at different levels than those that are commonly taught. So instead, we're gonna short at resistance in a downtrend and by at support, enough tread. Remember, we're looking at areas we don't need to buy the exact former low, because that's probably not gonna happen in the case of support or we're not gonna sell the exact former high in the case of resistance really in areas, so stops are much easier to place when we do this, and we have a lot more room for the price to run in our direction. I'm not gonna give a specific target for this simply because we were trading with trend. We can allow it to run if we want. We can apply this to other strategies and, as always, you know, because I love it. 1.62 point six and 3.6 times a risk that can always be applied. That way. You're getting out continuously throughout a profitable move, walking in some profit along the way. So remember, as we're going through this during a downtrend, we expect support to be broken. So support is former low points. Most of these are going to be weak, so we do not expect them to hold up. Also take profit near a former low. Well, sorry. When we take profit, we can take profit near a former low. And then, since we're expecting at the break, we can take another target further down below. And for an uptrend, we can take a target near the former high. And since we're expecting it to be broken, weaken, take more profit as the price breaks to that new high. Yeah, okay, so you may be scratching or anything, and that's nothing like what I've wanted before. So let's go through some charts. So here we have a one hour chart of the USD Swiss we have Let's just start here. We have a move that starts here continues to the downside. So were we can see just based on this room and overall down traffic just made a major lower , low and lower high here. Then we see this rally here we're still making it lower high and we've made a lower low. But this point here change the direction of the trend. So this is a potentials for area. Let's just market. But we have to ask ourselves since the trend is overall down, is this strong or weak? And the answer is it is likely going to be weak simply because the overall trend is still down You. When we get to this point, we can still say All right, once this starts to fall again, we have made a lower high. As this is rallying, we have to be able to say, Is this a strong area? Is the price likely to rally beyond this point? Remember, we're always looking at areas not that single level. So is the price. The price just fell from here to here rally and has now come back into that area isn't likely to break that high. The answer is no. Because we've established the trend is down. We have a lower low and we have a lower high. We can assume that and enter in this area and take short position, placing a stop five pips above this high. Then our trend is once again confirmed to the downside. And once again, we can use any of the targets we wanted. 1.62 point 63.6. We would have gotten all oh, it all the way down or the other approach I mentioned was during it. Downtrend. You can take profit near the former low, which would have been this, which is our weak support area. So we're going to take a profit training here, and then we can take profits lower than that because we're expecting that levels break. We have a little bit higher here. And then we could have taken profits anywhere down here. And once again, uh, we can use the other methods and strategy. What strategy is covered to figure out a way to get out? I'm not gonna go into where you should exactly get out for that. So we have now. We have a new down ways this ways. Now we have another major win. We can see it's a short term up trend within a longer term downtrend. So I'm just gonna draw trendline on here. The trend line does not matter. As we covered in the trend. My video, it could be broken. We're still looking for areas, so we have this area before. Now we have this area. Now, the moment this is a little bit random, you could zero in on the church. Find it again. Yeah, you can zero in on the charts to figure out exactly how big these areas should be. But for simplicity, we're gonna keep it out of of this size. We're talking about an area of about 10 pips, and I'd say that's fairly conservative. This pair isn't while it's extremely choppy. Doesn't move a whole lot per day on a more volatile pairs such as the British Pound GP. Why, you might want to use a 25th range simply because it's quite a bit more volatile in this pair. But for this parent, 10 pips works quite well. So we had a move that started here. We have this down move and then we have a short term up trend within this. So this does not indicate the weary in an overall uptrend. All it does is indicate the word a short term up trend within a longer term, down for it. So as the price moves within this uptrend, we can place orders to sell in this old resistance area by this former high. As you can see, we would have just gotten filled as we did on that last trade. Stop those five pips above. And we have targets either all the way down at 1.62 point 63.6 times a risk it, Sentra, or we can take near the former lows which in this case could be either here, which is a weak support level. We could have also put them down here, which would have taken a lot longer for them to get hit and then below the former lows. In the meantime, if it would have taken 1.62 point 63.6, we would have likely been out in this area here. And we have yet another trade. So We have a short term up trend within a longer term downtrend and once again using a 10 pip area that would have just gotten missed if you had adjusted it to their. As I've said in other videos, we don't always include extremes. You wouldn't be able to get still. But there's also get possibility that if you had just used this area here as it was you and it just missed that entry point and that's fine. So lower loaf lower low again. At this point, we would have used that. And I did actually take this trade and I lost on it, and that's fine. We made on two or three of those, depending on whether you got this filler not and you'd lose on this one, and that's fine. We're betting on the trend, continuing enough those areas of the whole now that this changed the entire trend. So this trend is no longer down, and it started at this point, this point becomes a strong resistance there sport area. So now we no longer have strong resistance because it's been broken. That was our last major wave down and it was broken. We had a short term up trend, but it turned into a longer term uptrend and it started at this point, which means this is a strong support area. So now we're looking for support areas and we do not care about resistance. We're expecting resistance to be broken. So as well, up strong, strong, strong. We pop off this level so we can see this area was tested multiple times. We're looking at this area as a potential support pops higher. Never comes back to this area. Chop, chop, chop, chop, chop Very strong live here. So this is a potential area that we want to trade off of. As you see, the price comes back down. This would be a short term pullback with any longer term uptrend. As we could see it, we're still making overall higher highs, higher lows, so stop would have been five pips. Blow would have been fine, never stopped out and removing. And as you can see, the trend dies out a little bit. Here. We don't see quite a strong movement as we saw here, but continuing to move forward. This was the low of that pull back support throughout here. So this entire area would become points that we want to watch for in the future. Once again, we just miss it. But if you were in a trade, you can, even though we miss this opportunity and potentially this one back here when we didn't quite get filled here, if you had positions, short positions, that helps you determine how strong the trend is. So the fact that you didn't get field here again and it dropped again. If you're holding positions, that tells you all right, I can hold my short physicians. So here again, if you were long, the fact that it doesn't pull back helps you say Okay, I can stay in my long positions. This is still good. So and continue to go through this and all we're doing is since the trend is up, we're looking for areas of strong support. So we had a nice, strong move. How rally here are strong of here reaches above that former high helping toe really confirm that uptrend again. Short term pullback within. So this becomes a new support area. Strong support area, I should say. And remember, resistance doesn't really matter. We're expecting needs to be broken. So Let's talk about that. One misconception that is taught and a lot of books is to buy on a new high. So, well, positions were examples like this raft inside, Intel CEO will get how much that went up after it passed that high. If you look at typically is you bought on all those you know, this one just went marginally above that. This is a new high, but barely cleared. This is a new high, collapsed after a few bars. This is a new high that one went of fairways. Here's this high than this one that creates a new high but quickly fails, so it it's not a very high probability strategy. It's much better to wait for the Pullbacks into strong support areas that are in alignment with the trend in this case, an uptrend, or wait for the price to pull back into strong resistance areas in a downtrend. Because that way, even though you may not get filled all the time, the probability of the trade is much higher. So we had this down move so we would be waiting for a pullback into this area. And if you want to get filled, a bit more. You can always adjust your area a little bit because since we know that support is likely to hold, it's we don't expect this wave to come all the way down to this form or low. So we can use something similar to the pocket strategy, the pocket strategy. We wanted to get filled in this area here just above the what we called in the pocket of the bars So we can adjust this support area to just above that pocket and we'd be able to get a few more feels as we went back to these examples. This one will really know until no matter what in this one here is we had gone into the pocket of it more. We would've got that, Phil. And same with the trade back here is we went into this pocket. We would have gotten that feel there to enter. Stop would still be five pips above the former high or five pips before below a former load . So hopefully that changes some of your perceptions on support and resistance, because how it is commonly taught, I don't find too helpful. This hopefully gives you some a few ideas You may have to go through this video a few times and try to really see how I'm going through this in the commentary, because it is a bit of a weird concept. Understand? It's so different from what's commonly taught that it may take a few times Teoh really understand it. Every train has to stop target. We put those oak when you place the trade as I lost it a little opening with the targets on this one. So make sure you establish how you're gonna set your targets for these. I always use, like 1.6 to 3.6 or 4.6. If that were to you, make sure that you put those targets out when you place the trade. In that case, you don't have to worry about anything. Don't touch anything. Just let the trade materialize. Has always responded to less than 1% your account that we even a string losses will significantly drive down here. Coming. These takes practice to spot trade. It will also help you determine probabilities on other trading strategies. Assume that strong areas were hold. We can put out our orders once we've isolated a strong area and the trend we can put out or order for support. You put your stop five tips below the last target or the last support strong support area, the low and for resistance. You put five pips above the last high. So don't take trades where you have Teoh. Those strong support areas have to break in order for a profit. So if there's a strong resistance area right above you don't you're not looking to buy. Even if one of the other strategies tells you to do it, we assume that strong levels are get ahold. We also assume that weak support Mary week supporting resistance areas will break. So if the trend is down, we expect all those weeks of port areas to be broken. If the trend is up, we expect weak resistance level. Street broken once again stopped those five pips above strong resistance levels or five tips below strong support areas. Optional targets were already discussed E and use the 123456 what everyone is. I do always like this approach because it takes get allows you to take some profit as the price moves in your favor. Training bosses down to risk the loss only tray of capital you can afford to lose test out strategies before using. Make sure you're actually able to implement them, that they work for you. This is probably one of the more at least I think it would be most difficult to sort understand, simply because it's very different from conventional teaching and Under and Vienna, all the differentiate between strong and weak is something that takes quite a bit of practice. You'll have to go through it. See? Alright. How did the price react to these levels? And that will help you determine whether level was stronger week, so until next time.