Forex and Futures Training
In this video you will learn a key to trading patterns in the market. Today we focus on trading support and resistance, higher highs and higher lows, in the market.
With this information, you will be easily able to identify key areas of support and resistance in the market, and place stops and entries. [Read more…] about Trading Patterns: Support and resistance Video
Price action takes patterns from your charts that are seemingly random, and uses easy methods to break them down. We break down what are key points in the market, and base trades off of these. Understanding price action is not complicated since it it simply analyzing previous information. You are using previous patterns to trade the current market. In this video, we focus on the highs and lows pattern. This pattern monitors the swings with higher highs and higher lows to determine market direction and potential entries and stops. Whenever we get swings in the market, we mark them down. This gives us a clear path of the trade as well as potential resistance and support levels. We monitor these swings in the market (highs and lows), and base future trade outcomes off of them.
Our main way to decipher price action on a chart is identifying the highs and lows in the market. We mark off the highs, and the lows on every chart as per our rules for trading highs and lows. Additionally we rule out any false highs and lows by only selecting ones that are relevant. These Relevant highs and lows are ones that broke previous levels.
Higher highs, and higher lows in the market outline an uptrend in the market. When we get successive higher highs combined with higher lows, we can determine key areas in understanding price action. Each time the market reverses from a high point, that is an incredibly important piece of information. At that point, every person trading was in agreement that that specific price was too high. This may be temporary. What we are looking for is if that high is easily broken by a new higher high.
Similarly, lows in the market define areas where the market is considered to be too good of a deal. These lows define where buyers and sellers are in agreement that the market is undervalued. When we get a low in the market, we want to look for if it is easily broken by a successive low.
Each area of support and resistance, minor and major, can signal trades/stops. Therefore we can look at higher time frames to determine key areas of resistance and support. Combined with these, we can trade the lower time frames to find entries for our trades. There are often conflicting bits of information between higher time frames and lower time frames using this same method. All we must do is remember the golden rule, “the higher time frame is always dominant“.
Highs and lows price action can be applied to any time frame, but a level of R&S on a hourly chart is more dominant than a different level of R&S on a 5 minute chart. Both of these levels can, at the same time, be valid, but we must always respect the higher time frame’s value. This is due to the volume, and type of traders on the higher time frames. We go into detail about these traders in a different video here.
In this video, we go over a quick review on how to analyze a Forex market. We do not specifically need to be analyzing the EURJPY Forex cross, but this is just an example of determining highs and lows. The methods that we use here are highs and lows and multiple time frame analysis.
When trading Forex, we have access to long term trends in currencies. [Read more…] about EurJPY Forex Review: Trading Video
People have been trading since the very beginning this way. You do not need ten indicators for a simple Forex strategy no indicators required. You can easily analyze your charts, or even chart web sites to decipher what is happening in the market with this method.
This method contains a few main points:
Most real traders know of this method, but they can’t make any money off of teaching you how to use highs and lows. They skip teaching you this simple Forex method because they don’t really care about your bottom line. I want to show you this because, as a trader, you need to know all of the tools to be successful. If you can trade with this method, then adding on a few key indicators can massively improve your trading. I believe that you need to know the basic strategies like this before you should start to use indicators used by professionals.
The highs and lows method is based off of one key principal. Agreement between buyers and sellers. When the market pushes to a new high, that is significant. The same goes for when the market is pushed to a new low. These points are agreements between buyers and sellers that the market is of a max/min value at this point. At these levels, enough traders came into the market to reverse the trading direction. You can take advantage of these points as significant levels of resistance or support to base your trades.
You wait for the market to approach the levels. There is no room for panic buying/selling when the market is rocketing in one direction. We wait for the market to approach previous levels, and then buy/sell once it bounces off of resistance or support. While this method is incredibly simple, it works extremely well in any market with good volume.
Volume is key in this strategy because we need to have as many data points as possible. If you are trading a market that is extremely thin, it can jump through, and around levels of resistance and support. We are counting on traders coming into the market to hold these areas.
I focus on giving you ways to trade without indicators, and simply analyzing your charts. Here is a video that can help you by showing you when to expect large spikes in the market.
Traders use multi time frame analysis to give them an edge on short term and long term traders. This is because using a mix of time frames can show you areas in the market that provide resistance, support, or expected moves. There is no reason every trader doesn’t keep multi time frame analysis as one of their key tools in trading. It takes the bigger, more influential, picture of the maket, and applies this to the shorter time frames. You end up with the best of both worlds.
This video shows you how and therefore why you can and should use multi time frame analysis
Bruce Banks