In this post we will aim to clear some of common misconceptions of trading and how we can help you go further in your trading career by giving you all the tools you need to better understand the market and kill the game.
1. Trading is easy.
Trading is relatively easy IF you know the rules of the market and use certain analytical techniques. Once you have a full arsenal of technical tools, you can easily understand the market and figure out where it may go next.
2. Market moves in one direction.
That can be true to a certain extent where we have trending markets. However, within that trend there are various types of pullbacks. Once you understand the different market phases, you can make money whether it's a trending or ranging market. Opportunities are endless!
3. Buy when low. Sell when high.
If only things were that straight forward, right? Sometimes the lows aren't really the lows and the highs push higher and higher. This is when you need to understand the different patterns and structure of the market to help you figure out where the best possible place is to buy or sell.
Once we understand the market, we need a trading plan. How do we enter? Where do we enter? Where is the stop loss? This is where having rigid checklist really helps! You can tick things off the list and grade the trade setup from good to bad and then enter accordingly using various entry methods.
It may sound like a lot of but once broken down into little bits, you can learn this EASILY and know exactly how to analyse and enter trades!
What we will be covering:
- Market structure: Impulse & Corrections
- Using Index charts to correlate your trades (Very important Topic!)
- Drawing a trendline and levels correctly – There’s a hack to it!
- Using Moving Averages Correctly
- Combining higher timeframe & lower timeframe
- Different patterns and how to trade them
- More topics to come!
Comment below on what other topics you would like to see!
I hope this post help clarify some of the misconceptions of trading and the different elements involved.
See the links below for information on how we can help you!
Why are we entering?
- Price is at channel support
- We have previous structure at the channel support area
- We are expecting EUR to strengthen for the short to medium term
What are we waiting for to happen?
- Waiting for one 4H candle to signal bullish pressure
- EUR index to reject structure level
What is our confirmation?
- 4H bullish candle
- lower timeframe trendline break
Where will our Stoploss be?
- Below the channel and structure level 1.559
Where do we take profits?
- First TP previous high 1.587
- Next TP channel resistance