Price Action - Inside Bars
Hi i would like to run through one of my favorite price action patterns the inside bar which hopefully could help to improve your trading. They are very easy to trade, easy to see and can be very rewarding. They happen in every market and every time frame, although i find it is best to only trade them on the daily and 4hr tf's this is...
Hey Guys. Just wanted to make sure that everybody had the basics down when it comes to making a trading journal that can help you self police your trading.
The point of a journal isn't to keep track of your trading stats, but rather to look and see how your emotions have played a role in your trading. If you feel scared, unconfident, and fearful that a trade...
“Compound interest is the eighth wonder of the world. He who understands it, earns it... He who doesn’t... Pays it” .
The idea of compound interest is simple, use your profit to make more profit instead of spending it... You can do this whilst making small regular withdrawals!
BUT
Too many traders try to get-rich-quick and in turn blow their trading...
Observe the chart for a moment, and you will see the support trendline.
Now, price on the 4h candles has broken below this support trendline, but has never closed below it.
After the first three points on the trendline, illustrated by the first 3 circles, the trendline was established as valid.
(It generally is considered that 3 points are necessary for a...
What is Intermarket Analysis?
Intermarket analysis is a relationship, or a measurable correlation between four major asset classes: stocks, bonds, commodities and currencies.
The majority of forex traders assume that currency markets move in isolation from all the other capital markets... This is entirely wrong as the foreign exchange market underlies every...
The Three A's
It is a known statistic that over 90% of traders fail and I covered the three main reasons why in my previous educational post (shown below).
Now that you know the main reasons why traders fail, it's time to lay the foundation for successful trading.
This can be structured and defined by something I call the three A's.
#1: Approach...
Three Reasons Why Most Traders Fail
Hello traders, I'm back with another educational post after receiving a lot of positive feedback. Today I'm going to break down three reasons why most traders fail!
Traders Fail?!
Yes most do, it is believed over 90% of new traders fail (this is an ongoing debate) but why is that? I personally believe it comes down to...
Utilising a Risk to Reward Ratio
How many of you obsess over an 80% profitability rate? You may feel the need to be right all the time and cannot accept a large amount of losing trades.
OR
You may think in order to become a profitable trader you need to win more than you lose.
Well it's time to put that aside.
You do not need to have a high profit/loss...
A follower sent me a message to learn how to trade this system. Thank you for your interest in my trading system. I have consolidated my trading system based on three different individuals. i.e. Candlestick patterns from Thomas N. Bulkowski, supply and demand forex factory thread and Richard Dennis and William Eckhardt turtle trading.
We will show you step by...
How to Trade the AB=CD Pattern
Hello traders, following up from my previous educational post I received several requests via private message for my take on the AB=CD pattern.
This structure represents the basic foundation for all harmonic patterns, it is one of the classic chart patterns which is repeated over and over again.
It was developed by Scott M....
How to Trade the Inverted Head and Shoulders Pattern
Hello traders, following up from my educational post on the Head and Shoulders pattern I felt I should provide you with the bullish equivalent... The Inverted Head and Shoulders pattern.
Featured on the chart is an illustration of a complete Inverted/Inverse Head and Shoulders pattern including the rules I...
Determining the strength of the fresh zones.
Every time the trend changes direction, it is because of a change in the balance of supply and demand, but to use this to our advantage we need to know the likelihood of that imbalance being there the next time price returns to that zone. Supply and demand zones are similar to support and resistance lines in that...
Trader Questionnaire
The purpose of this post is boost your overall confidence as a trader, to show you how much you have achieved since the beginning of your journey.
A personal assessment review is an excellent way to outline your personal beliefs and expectations of trading in general.
Write down your own answer to each individual question and review these...
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Continued from Educational Series - Part 1 (link below) ;
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3. Expectancy :
So, now we have got our risk reward ratio and winrate.
We move on to calculate the expectancy of our trading strategy.
The formula is,
Expectancy = (Probability of Win * Average Win) – (Probability of Loss * Average Loss)
So, in our scenario,
where,
Risk...
NOTE :
this post is intended for novice or intermediate traders, professional traders can skip it or read it to refresh what they already know.
For the benefit of other traders,
I am starting an educational series where i will be covering lots of topics related to trading which everyone should abide by.
It will be in simple language and easy explanation so...
10 Rules of Successful Trading
I personally feel these are the 10 most important rules to follow, especially as a beginner in order to become a consistently profitable trader. You can refer back to these rules whenever you feel lost or confused about what’s going wrong with your trading.
1. Stick to one strategy, and master it.
2. Plan your trade, trade your...
Why do you trade? Consider writing down your personal trading goals.
The following are my personal Trading Goals & Motivations (taken from my trade plan).
Goals - Consistency
1. Focus on the process and let the results happen
2. Think in probabilities and whether I followed my plan. (Not right or wrong)
3. Master the ability to sit on my hands
4. Demand...
How to Trade the Head and Shoulders Pattern
Hello traders, following up from my previous educational post I received several requests via private message for my take on the Head and Shoulders pattern.
Featured on the chart is an illustration of a complete Head and Shoulders pattern including the rules I personally use to trade it.
This is an easily...
