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FOREX StrategiesWhat are FOREX Strategies?
You may have noticed that most of people confuse the terminology and refer to FOREX Strategies in the wrong way. There are methodologies, systems, strategies, and techniques. The most effective methodology is Price Language (Trend Tracking). Combined with a correct reading of mass psychology presented by the charts.
We know that in the Stock Markets there are thousands of strategies. FOREX, like the rest of the markets, presents you with the opportunity to apply similar strategies to win consistently. Taking advantage of repetitive psychological patterns.
First, the Price Language methodology has created great fortunes in FOREX, and the next fortune may be yours. But this methodology must be implemented within a framework of advanced concepts of Markets. Without forgetting the basics. And working hard day by day.
Second, a strategy is a set of parameters and techniques that together give you the advantage to act in any situation. Thus for example in war, generals have attack strategies and counterattack strategies.
FOREX strategies alike are entry strategies and exit strategies. All beginners should know these FOREX strategies for beginners. That way you will get a general idea of the game and understand that trading is a war against the Market and its Specialists. Only applying FOREX strategies revealed by the same Specialists and using their own techniques,
... you can survive in this war.
Do not fall into the trap of the many "systems" and "methods" that are offered on the internet about operating in the FOREX Market. They just don't work in the long run. They are strategies based on indicators for the most part. Using rigid parameters. That if they can work and give profitability during a certain period of time, they will always reach a breaking point when the market changes its dynamics.
Instead, take advantage of your precious time and learn the Language of Price or Price Action.
The Language methodology will allow you to adapt to each new phase of the Market. If you combine this knowledge with the appropriate psychological concepts, you can live comfortably from speculation in FOREX.
Forex Trading Strategies Reddit - Basic FOREX StrategiesYou have two basic FOREX strategies, one entry, and one exit. Both follow a general strategy that helps you capitalize on the collective behaviors of the Market. That is, of the total of participating speculators.
This behavior causes the formation of cycles that repeat over and over again. Driven by the basic emotions (uncertainty, greed, and panic) of the speculators involved that can be taken advantage of with the aforementioned FOREX strategies. Specialists identify these emotions in the order flow and capitalize on these events every hour, every day, and every month.
Basic FOREX Strategies - The Price Cycle
These repetitive cycles consist of 4 phases:
The two trends can be easily identified by their notorious breakdown. And the two areas of uncertainty (accumulation and distribution), due to their notorious range trajectories.
This general behavior determines the core of our FOREX strategies.
You buy when the price of a pair has broken and has come out of one of its congestion formations (accumulation or distribution). You implement one of the Forex strategies, in this case, the entry one.
The multi-time technique will help you find the point of least risk when entering your initial buy or sell order. In the same way and using the same strategy but this time to close your position, the multiple timing technique will also show you how to close your operation obtaining the highest possible profit.
The most consistent way to extract profits in the market is by trading the start of trends within a cycle . Once confirmed by their respective breaks from the areas of uncertainty. This is the mother of all FOREX strategies . And in a market that operates 24 hours, we have more frequent cycles and therefore more opportunities.
Forex Trading Strategies Reddit - Advanced Forex StrategiesThere are many advanced FOREX strategies that are generally used by professional speculators working for large financial firms.
Among these firms are banks, Investment Fund managers and Hedge Fund managers. The latter is an investment modality similar to Investment Funds, with the difference that Hedge Funds use more complex investment strategies. Its operations are more oriented to aggressive speculations in the short and medium-term.
Among the most common strategies is hedging (hedging), carry trade, automated systems based on quantum mathematics. And a large number of combinations between the different option strategies.
The Carry TradeThe central idea of Carry Trade is to buy a pair in which the base currency has a considerably higher interest rate than the quoted currency. To earn the difference in rates regardless of whether the price of the pair rises or falls.
Suppose we buy a $ 100,000 lot of AUDJPY, which according to the rates on the chart would turn out to be the ideal instrument in this example to use the Forex carry trade strategy.
As our capital is in US dollars we have to assume for our example, the following quotes necessary to perform the place calculations:
AUD / JPY = 80.00 USD / JPY = 85.00
What happens internally in your broker is this.
The great advantage of carry trade FOREX strategies is that this percentage profit is applied to the $ 100,000 of the standard lot; the broker transfers all of the profit to you, even if you only contributed $ 1,000. On the other hand, if you carry out the inverse of this operation, this benefit of the Forex carry trade becomes a cost (swap), and you assume it completely.
Remember that FOREX carry trade strategies are recommended for pairs with considerable interest rate differences, such as the one we have just seen in our example.
These FOREX strategies should also not be used in isolation. The idea is that through technical analysis you identify when would be the ideal time to enter the market using your carry trade Forex strategy and multiply your profits considerably.
What FOREX Strategies Do Hedge Funds Use?The FOREX strategies used by large fund managers do not constitute an advantage in terms of percentage results for them, nor do they constitute a competitive disadvantage for you.
The vast majority of them fail because of their big egos. In fact, there was a firm made up of great financial geniuses, including 2 winners of the Nobel Prize in Economics, who developed a strategy based on quantum mathematical calculations.
With an initial base capital of about 3 billion dollars, and after 3 successful years obtaining annual returns of over 40%, the firm Long-Term Capital Management, begins its fourth year with losses. To counteract these losses the geniuses decide to multiply the initial capital several times, while the losses continued.
The year closed with the bankruptcy of the fund, and with a total accumulated loss of 1 trillion dollars, due to the great leverage used. And all for not admitting that the FOREX Strategies of Long Term Capital Management were not in line with the dynamics of the Market.
There are an overwhelming number of opportunities in the stock markets to make money interpreting the Language of Price.
You don't need to use complex "advanced" strategies that have been created to handle hundreds or billions of dollars.
The reasons for using these FOREX strategies are very different from what a "retail trader" pursues with his small speculation business.
As you can see, you should not worry about wanting to integrate any of these advanced strategies into your arsenal. They are only beneficial for managing hundreds or billions of dollars, where the return parameters are very different when you handle small amounts of capital.
Do not worry about collecting hundreds of free FOREX strategies that circulate on the internet, that great accumulation of mediocre information will only serve to confuse you and waste your valuable time.
Spend that time learning Price Action,
… And you will always be one step behind the Specialists, identifying each new Market condition, and anticipating the vast majority of reversals of all prices.
Ironically, the most successful fund managers indicate that their most profitable trades are those based on the basic trend-following strategies of the Price Language. The same ones that you will learn in this Free Course.
Dedicate yourself to perfecting them and believe me you won't need anything else. As long as you have good risk management, taking into consideration the following points ...
Styles of Investments in FOREXThe Investment FOREX long term is not recommended for small investors like you and me. If we take into account the term investing literally as large investors do who buy a financial product today to sell it years later.
We both have a better niche in the short and medium-term.
You may have noticed that the big multi-year trends in the Forex Market do exist. But minor swings within a big trend are usually very wide.
These minor movements allow us to easily double and triple the annual return of the big general trend, motivating most traders to speculate in the short and medium-term.
These minor oscillations or trends that occur within the large multi-year trends owe their occurrence mainly to two reasons.
First, the FOREX Market presents 3 sessions a day each in different cities of the world with different time zones (Asia, Europe, and America). This causes more frequent trend changes than in the rest of the stock markets.
Second, the purpose for which it was created also plays a role. The modern Foreign Exchange Market, since its inception in 1972, was conceived by the global financial system as a tool for speculation. To obtain benefits in the short and medium-term (from several days to 1 year).
These two points are basically the reasons why we observe the immense speed with which the FOREX market changes trends.
For example, for those who live in America, in the early morning (Europe) the EURUSD pair may be on the rise, in the morning or afternoon (America) it may be down, and then finally at night (Asia) it may return to the rise.
Define your Own Style for your FOREX InvestmentsOne of the first decisions you will have to make is to choose your style as a trader or investor.
There are 4 types of well-defined styles.
Most professional traders tend to have multiple styles, although they always identify with one primary style for their FOREX investments. Study the characteristics of the 4 main styles to make your investments in FOREX :
1. Long Term: recommended for anyone who is going to enter the market for the first time and who can dedicate a minimum of one hour per month to their investments in Forex. The period of an open position ranges from 1 year to 5 years.
2. Medium Term: recommended for anyone who is going to enter the market for the first time and who can dedicate a minimum of one hour per week to their investments in Forex. The period of an open position ranges from 1 month to 1 year.
3. Short Term: recommended for anyone who is going to enter the market for the first time, or who already has a certain time operating in the long and medium-term, showing constant profits, and who can dedicate a minimum of one hour per day to your investments in FOREX. The period of an open position ranges from 1 day to 1 month.
4. Intraday : recommended only for people with a fairly solid earnings record in the short term, and with a capital greater than $ 50,000. As we have noted, this option constitutes a full-time job.
People who start investing in FOREX , should start executing short-term (weeks) and medium-term (months) transactions only, and not pay attention to intraday oscillations (day trading).
If you are interested in being an intraday speculator, I recommend that you first exhaust at least a year doing operations in the short and medium-term to assimilate the correct strategies and to develop the necessary mentality to carry out this work.
The second option would be to participate in some kind of intensive training.
I remind you that self-educating is almost impossible in speculation. You are likely to accumulate a lot of knowledge by reading books and attending courses. But you will probably never learn to make money with all the incomplete "systems" circulating on the internet.
Mistakes to Avoid When Looking for Your StyleMany people who are new to FOREX investments make the mistake of combining these styles, which is a key to failure.
I recommend that if you are not getting the results you expected by adopting one of these styles, do not try to change it. The problem sure is not in the style, but in your strategies or in your psychology.
A successful investor is able to make a profit in any longer trading time than he is used to. I explain. If you are already a profitable operator in the short term, it is very likely that you will also be profitable in the medium and long term,
… As long as you can interpret the Language of Price or Price Action.
In the opposite case, the same would not happen. If you were a medium-term trader, you would need time to adjust to the intraday. The reality is that long, medium and short term traders have very similar personalities. The intraday trader is completely different.
The Myth of the Intraday in Investments in FOREXIf you are already successful in the short, medium and long term, you will notice that the sacrifice and the hours necessary in front of the computer to operate intraday is much greater. The intraday style will be useful to increase your account if it is less than USD $ 100,000 in a very short time in exchange for 8 to 12 hours a day of hard work but ...
You must first develop the necessary skills to operate the intraday.
The ideal is to combine all the styles to get more out of the Market and carry out more effective transactions and have a diversification in your investments in FOREX.
There are intraday traders that are very successful, but the reality is that there are very few in the world that make a profit year after year. If you want to become an intraday, you just have to prepare yourself properly through intensive training.
Otherwise, I recommend that you don't even think about educating yourself to adopt the intraday style. It is not necessary to go against a probability of failure greater than 99%. Unless
... your ego is greater than your common sense.
The main reason why this style of investments in FOREX is not recommended for the vast majority of us "retail investors" (the official term "retail traders"), is the high operational cost.
The real commissions in this market range between $ 2.0 and $ 2.50 for each lot of 100,000 virtual units. This means that a complete operation (opening and closing) is approximately $ 5.00, for each standard lot traded ($ 100,000 virtual).
Another fundamental reason is the advent of robotic traders (HFT = High-Frequency Trading), which tend to manipulate the market in the shorter intraday swings. Please do not confuse HFTs with automated systems that we find daily on the internet, and that can be purchased for a few hundred dollars and often for free on FOREX forums / groups.
These HFTs to which I refer, they are effective. They cost millions of dollars and have been developed by the large Wall Street financial firms to manage their investments in FOREX.
The reality of the intraday trader is that you execute orders for large lots at the same time, to profit from the smallest movements in the market. It is an activity based on reflexes. The slightest oversight or distraction can turn into a catastrophe for your FOREX investments.
I recommend that you start investing in FOREX using slow time periods such as H4 or Daily. For some reason, all Goldman Sachs intraday FOREX investments are made with algorithms.
Finally…To choose your style as a trader and manage your investments in FOREX, first determine what your degree of experience is, analyze the points mentioned below and the rest you will discover when you execute your first operations.
The points that will affect your decision are:
And I hope you are one of those who get up over and over again. The next lesson will boost your confidence when you discover the main reason that moves currencies ...
Fundamental Analysis in Forex Trading RedditThe fundamental analysis in Forex is used mostly by long-term investors. Players as we saw in the styles of operators, start a negotiation today, to close it years later.
I always emphasize the importance that the mass media give to this type of analysis to distract the great mass of participants.
It is all part of a great mass psychological manipulation. For centuries the ignorance of the masses has been organized before the great movements begin.
The important news are the macroeconomic reports published by the Central Banks and other government agencies destined for this work. All reports are made up. 99% of them are corrected months later.
These events are tools to justify fundamental analysis and price cleaning movements. Any silly headline does the job. With this, it is possible to absorb most of the existing liquidity, before the new trend phase is projected.
Reaction!Except in rare situations, the result of an economic report of the fundamental analysis is generally already assimilated in the graph. In most cases, there are financial institutions that already have access to this information and are organizing and carrying out their operations in advance.
The phrase buy the rumor and sell the news is a very old adage on Wall Street. And its meaning contains what we have just explained. For the investor who can interpret the Language of Price, fundamental analysis is of little importance. Well, in general, their disclosure does not indicate that you have to take any action in your open trades , as long as your entry strategy provides you with a good support cushion.
This reality of fundamental analysis causes a lot of confusion for investors who lack in-depth knowledge of the forex market.
Macroeconomic DataThe data published in these events is irrelevant. Both for speculators and for the people in general. They are false. They lack reliability.
The price can go up or down with the same result of the data. The main ones are:
- Interest Rates - GDP (gross domestic product) - CPI (inflation) - ISM (manufacturing index) - NFP (payroll) - Double Deficits (deficit = fiscal + balance of payments)
If you are initiated, I recommend you avoid operating near these events. It is only a matter of having the time pending. Use the economic calendar for Fundamental Analysis of Forex Factory.
There is a probabilistic advantage in operating these fundamental analysis events. But it takes preparation, experience, and practice. They represent a way of diversifying in the general operation of a speculator.
The Uncertainty of Fundamental AnalysisOn many occasions after the disclosure of an economic report, the price movement of the currency pair that is going to be affected tends to move in the opposite direction to the logic of the report.
I show you an example of a fundamental analysis report. Imagine that the EUR / USD pair is trading at 1.2500, and the FED (US Federal Reserve) issues a statement announcing that it has just raised inter-bank interest rates from 0.25 points to 0.75 points. Very positive news for the US dollar that logically implies an appreciation of the currency and consequently an instantaneous collapse of the EUR / USD pair (up the dollar and down the euro)
However, minutes after the release of said fundamental analysis report, the pair after effectively collapsing to 1.2400, returns and returns to its levels prior to the report (1.2500). This situation is very common , but it is not so easy to identify it when it is occurring, but after the damage is done.
Traps like these devour the accounts of beginners who approach the market with little experience, with weak strategies, and especially with very little experience.
That is why I reiterate that you forget the fundamental analysis for now. Just keep in mind when operating, that there is no publication scheduled nearby. Just check the economic calendar for the day and forget about the numbers. Let the economists mess around with the data.
FOREX Market CorrelationThe Forex market correlation exists between pairs with similar "base" currencies and not always under the same circumstances. The correlation in the Forex market that is most followed and that has the greatest impact on fundamental analysis is that of the US dollar (USD).
The USD is the most traded monetary unit with a volume greater than 80% with respect to the rest of the currencies. This fact determines why their correlation is the most important, the most followed, and perhaps the only one worth following in the fundamental macro analysis.
The 7 major pairs are usually in sync . These 7 pairs all include the USD and present a fundamental analysis correlation almost 75% of the time. Influencing the rest of the currency pairs.
Advantages of the FOREX Market CorrelationIn the fundamental analysis the most basic FOREX correlation is the following. When the USD appreciates, the USD / CAD, USD / CHF, and USD / JPY pairs tend to go up in price. This indicates that the Canadian dollar (CAD), the Swiss franc (CHF), and the Japanese yen (JPY) are losing value against the USD.
We must bear in mind that this correlation does not occur 100% of the time. In fact, the JPY generally tends to move in the opposite direction , since in recent decades this currency has been used as a source of financing to invest in other financial instruments.
On the other side is the FOREX market correlation that generates a movement almost in unison in the other 4 major pairs EUR / USD, GBP / USD, AUD / USD, and NZD / USD. These tend to fall in price, homologous the appreciation of the USD. But not always.
In this case the fundamental analysis correlation works most of the time, between 65 and 85% of the time. Small differences are noted in the extent that each of these pairs experiences.
There is also a correlation in the secondary FOREX market, where the pairs of all currencies that do not include the USD participate, but I recommend you not to waste time on them for now. There are more important things about the Language of Price to know first.
FOREX Commodity CorrelationIn this part I will explain to you in a basic way the Correlation Commodities - FOREX of the fundamental analysis.
There are three currencies that have a direct correlation with commodities. They are usually called: "COMDOLLS" which is short for "Commodities Dollars" (Commodities Dollars), since all three obey the dollar denomination. These are:
- The New Zealand Dollar (NZD) - The Australian Dollar (AUD) - The Canadian Dollar (CAD)
These three currencies make up the group of the 8 largest together with the euro, the pound, the yen, the franc and the US dollar. Together, they merge to produce the major pairs traded in the FOREX Foreign Exchange Market.
The FOREX Commodity Correlation has an affinity in most cases greater than 75%. And each of them has its different raw material of correlation. You will notice that the NZD and the AUD are two currencies that act practically in unison. Both present minimal discrepancies in their fluctuations in the short, medium and long term.
This is mainly because their economies are very similar and their economic and fiscal policies are too. Their main production items also show great similarities, despite the fact that the Australian economy is much larger than the New Zealand economy.
The raw materials that follow the movement of the AUD are mainly gold and copper. If you put the history of these three quotes during the last decade of the year 2,000 together on the same chart, you will notice a very similar upward movement between the three quotes. Pure correlation of fundamental analysis.
This strong correlation with commodities in the metals area for the AUD has provided Australia with an economic advantage enviable over the other major powers that have seen their currencies devalue sharply against the AUD. At the same time, they experience a constant decrease in the purchasing power of their citizens.
The NZD maintains a correlation with raw materials related to agriculture and livestock, mainly including milk and its derivatives. It is one of the countries that dominates the world export of these economic items, and also has important exports of metals , although in smaller quantities than Australia.
Finally, you have a correlation with raw materials in the energy area. For historical reasons the CAD, which is not the largest oil producer in the world, but an important supplier to the largest consumer that is the US, has seen its currency oscillate in line with oil prices.
To make long-term investments in the Foreign Exchange Market, it is necessary to take into consideration at least one Commodity Correlation - FOREX in your fundamental analysis.
Forex Technical Analysis RedditThe technical analysis is the methodology that interprets the movements of the price. Specialists look for liquidity to fund their business. The repetition of the strategies used by the specialists in their work generate repetitive patterns.
If you were an analyst, you would develop the visual ability to identify such patterns on a graph. If you were a programmer you would quantify them mathematically using complex formulas.
And if you could learn to interpret the Language of Price, you would have the ability to anticipate 90% of all movements that occur on a chart. And in this business, anticipating is what will make you money.
Market prices are reflected and framed on a horizontal time axis and a vertical price axis. Prices go up or down according to the aggressiveness of the participating operators. In an efficient or balanced market these oscillations should be imperceptible.
But in reality this is not the case, since the Market works thanks to the digital printing of hundreds of billions of units of paper money systematically distributed by the Central Banks through the banking system. These resources serve as a tool to manipulate 100% of the movements that occur in the FOREX Market.
Are you looking for Technical Indicators? All technical indicators were created from the 70's. How do you think that for more than 200 years the speculators of the past accumulated great wealth?
With the Language of Price. The best timing is given by the price itself. Indicator-generated entry signals usually occur at the wrong time.
The basis of technical analysis is human psychology. Unfortunately, human beings are not perfect and are loaded with emotions that dominate their behavior in similar situations, creating repetitive and highly predictable behavior when it occurs in masses.
The study of technical analysis through indicators and subjective training, originates and shapes the collective thinking on which all the traps that specialists execute every day to maintain their business are designed. If the majority won, the Market would cease to exist.
Although you already know that the patterns are not generated by the masses , but the repetitive behavior of the Specialists in the face of the action response of the masses. It is very easy for speculaists, because they can see everyone's orders in their books.
And they also exert a great influence on the decisions of the masses through the mass media. It is what I call the war between the Egg and the Stone , if you hit me you win and if I hit you also you win.
The Deception of Modern Technical AnalysisThrough the centuries thousands of people have been able to extract great benefits from the financial markets by applying the basic strategies of technical analysis and the psychology of the Price Language.
More than 200 years ago when the markets began to operate officially, fundamental analysis predominated, which was only used by large financial institutions. As this analysis tool began to become popular, these institutions began to apply the strategies of technical analysis.
In recent decades and with the massification of internet technology, technical analysis has begun to be handled by anyone who has a computer with internet access. The same financial institutions, which have been present for more than a century and as a result of this overcrowding , establish a strategy to confuse and misinform about the true strategies of technical analysis.
This has been accomplished in the following manner. Currently there are hundreds, if not thousands of technical indicators that have been developed by so-called "gurus" of technical analysis and that sell their magic indicators packed in a "system" or "method" that usually cost thousands of dollars, or simply with the publication of a book with which they generate large profits. Double benefit.
The aim is to confuse the initiates in speculation and create the collective mentality that will originate the same behaviors over and over again. About 95% of these new entrants completely lose all the capital they invest in their early stages as investors.
Leaving them with a negative experience and creating the idea and the image that financial markets are an exclusive area for geniuses with high academic levels and that only they can produce returns in the markets year after year.
The initiate, having lost all his original capital, turns to these “gurus” for help and teachings. You spend more capital on the products they offer you and the cycle repeats itself . Obviously, the vast majority do not relapse and completely forget to re-engage in the stock markets.
I hope you have not been a victim of this drama.
Now I will show you the simplicity of a FOREX technical analysis , without the need to resort to any indicator as a tool to determine an effective entry or exit strategy when planning your operations.
The Price CyclePreviously you studied in the FOREX strategies lesson, that the typical price cycle when it is reflected in a graph, presents four very specific phases and very easy to identify if you perform a technical analysis with common sense . These are:
You will be surprised by the simplicity with which thousands of people around the world and over the centuries have accumulated large sums of money by drawing a few simple lines and applying responsible risk management with their capital.
How to Identify Trends?Being able to determine the trend phases within the price cycle is the essence of technical analysis since it is these two phases that provide you with the probabilistic advantage you need to operate in the markets and obtain constant returns.
In the most plain and simple language, in the world of technical analysis, there are only two types of formations: trends and ranges.
The trends, in turn, can be bullish if they go up, or bearish if they go down. The ranges, on the other hand, can be accumulation if they are at the beginning of the cycle, or distribution if they are in the high part of the cycle. As I had indicated in the topic of FOREX strategies when describing the price cycle.
This sounds more like a play on words, but I will show you the practical definition to simplify your life and then you will apply these definitions on the graph so that everything makes more sense to you.
Some key points from the graph:
The Common Sense, The Less Common of SensesThe central idea of technical analysis consists in determining the price situation of a market, that is, in which phase of the pattern of its cycle it is currently conjugated with the collective thinking of the masses and the possible traps that the market would have prepared to remove. the capital at stake by the public.
To carry out a precise technical analysis, you will use the support and resistance lines, which can be static (horizontal) or dynamic (projecting an angle with respect to the horizontal axis).
Your common sense prevails here.
If you show a 10-year-old a chart, they will be able to tell you if the price is going up or down. You will most likely have no idea how to draw the lines, but you will be able to establish the general trend. Simply using your common sense.
By introducing indicators and other gadgets , the simplicity and effectiveness of the technical analysis created by your common sense evaporates.
The following graph conceptually shows you all the possible situations in which you could draw these lines to carry out your technical analysis of the place. You can clearly observe a downtrend delimited by its dynamic trend line and an uptrend on the right side with its respective dynamic delimitation.
Forex Charts AnalysisI want to remind you that the formations or patterns that develop on the charts (triangles, wedges, pennants, boxes, etc.) only work to execute trades that have initially been confirmed by the static support and resistance lines and to read the collective thinking of the masses.
Chart formations work, but you must know the Language of Price to determine when the Specialists will exploit a chartist figure, or when they will allow it to run. In fact, you will learn with the Language that you can operate a chart figure in any direction.
Much of the "mentalization" that the masses receive is to believe that the figures are made to be respected. Which is an inefficient way of working. Simply because you could wait days or months for a perfect chart figure to occur in order to perform a reliable trade. When in fact there are dozens every day.
Japanese CandlesOf all the tools you have to carry out technical analysis, perhaps the best known and most popular is the Japanese technique of candles (candlesticks).
Candles are mainly used to identify reversal points on the chart without resorting to confirmation of horizontal trend lines and only using a previous bar or candle breaks.
Its correct use is subject to a multi-time analysis (multiple temporalities) and a general evaluation of the context proposed by the market in general at the time of each scenario.
Later I will show you all the important details to take into account so that you use Japanese candles in a simple and very effective way.
Do not forget ... Trading in your beginnings based on formations (chartism) and candlestick patterns conjugated with hundreds of tools and technical indicators, constitutes the perfect path to your failure. Before using any strategy or technique I recommend you focus on learning the Price Language, which includes 3 basic things:
Specialists make money every day at the expense of the collective behavior caused by the use of these strategies and techniques. With which you will only manage to lose your capital and your time by putting the cart in front of the horse.
People who do the opposite, at best become,
... Philosophers of Speculation, or indocile Robot Assistants or Expert Advisors.
To make money in any market condition, range or trend, you must use the technical analysis based on the Price Language and combine it with a correct psychological reading of the price. This knowledge can only be acquired through proper education and lots of supervised practice. Like any other career in life.
I hope you've found this guide helpful!
Learn All The Charting Tools, Trading Strategies And Profitable Hacks For Day Trading With Real World Examples!Videos
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In this video we will review 16 different illustrations of popular forex chart patterns like flags, pennants, double tops and bottoms, reversal patterns, and explain how to read and interpret forex chart patterns. Then you can incorporate these chart patternssubmitted by forexalerts to u/forexalerts [link] [comments]
There are about 10 different chart patterns that are meaningful to forex traders. This includes pennants, flags, and double bottoms. Check out this great illustrated article about forex charts and chart patterns that can affect a forex trader. Use these charts as part of an overall trading system.submitted by forexalerts to u/forexalerts [link] [comments]
|7:00:00 AM||MBA Mortgage Applications Index||43,134.00||0.01||NA||-0.03|
|10:30:00 AM||Crude Inventories||43,134.00||-||NA||NA|
|3:00:00 PM||Consumer Credit||Dec||-||$18.0B||$20.0B|
|AMG||Affiliated Manag Rg||$0.30||0.42%|
|CVCY||Central Valley B Rg||$0.07||1.25%|
|EBTC||Enterprise Banco Rg||$0.15||0.00%|
|GHC||Graham Hldg Rg||$1.33||0.87%|
|GNL||Glbl Net Lease - Registered||$0.18||11.90%|
|HTBK||Heritage Commerc Rg||$0.11||2.61%|
|KBH||KB Home Rg||$0.03||0.28%|
|MBTF||MBT Finl Rg||$0.66||8.64%|
|OFED||Oconee Fed Finl Rg||$0.10||1.40%|
|PGC||Peapack Gladston Rg||$0.05||0.00%|
|RGA||Reinsurnce Gr Am Rg||$0.50||1.32%|
|STBA||S & T Bancorp Rg||$0.22||2.10%|
|SXI||Standex Intl Rg||$0.18||0.62%|
|TBNK||Territorial Bnc Rg||$0.20||3.94%|
|WSFS||WSFS Financial Rg||$0.09||0.58%|
|WTFC||Wintrust Financi Rg||$0.19||0.68%|
|Company||Release||Est. EPS||Company||Release||Est. EPS|
|A10 Networks (ATEN)||Afternoon||0.01||Jones Lang LaSalle (JLL)||Morning||4.22|
|Activision Blizzard (ATVI)||Afternoon||N/A||Kamada (KMDA)||Morning||0.06|
|Advanced Drainage Systems (WMS)||Morning||N/A||KapStone Paper and Packaging (KS)||Afternoon||0.42|
|Aerohive Networks (HIVE)||Afternoon||N/A||Keryx Biopharmaceuticals (KERX)||Morning||-0.18|
|Allegion (ALLE)||Morning||0.95||Knowles (KN)||Afternoon||0.36|
|Allstate (ALL)||Afternoon||2.03||Lannett (LCI)||Afternoon||0.85|
|Alpha and Omega Semiconductor (AOSL)||Afternoon||0.16||LifeVantage (LFVN)||Afternoon||N/A|
|AMERCO (UHAL)||Afternoon||9.20||Manning and Napier (MN)||Afternoon||0.09|
|American Equity Investment Life (AEL)||Afternoon||0.67||Manulife Financial (MFC)||Afternoon||0.45|
|Anavex Life Sciences (AVXL)||Morning||N/A||Matrix Service (MTRX)||Morning||0.16|
|Apollo Investment (AINV)||Morning||0.16||MAXIMUS (MMS)||N/A||0.77|
|AppFolio (APPF)||Afternoon||N/A||MDU Resources Group (MDU)||Morning||0.32|
|Ardmore Shipping (ASC)||Morning||-0.15||Medical Properties Trust (MPW)||Morning||N/A|
|Aspen Insurance (AHL)||Afternoon||0.89||Medidata Solutions (MDSO)||Morning||0.35|
|Astrotech (ASTC)||Morning||N/A||Michael Kors (KORS)||Morning||1.29|
|AU Optronics (AUO)||Morning||0.14||Moelis & Co (MC)||Afternoon||0.59|
|Axis Capital (AXS)||Afternoon||1.11||Mohawk Industries (MHK)||Afternoon||3.31|
|Aytu Bioscience (AYTU)||N/A||N/A||Monmouth R.E. Inv. (MNR)||Afternoon||0.11|
|Ball (BLL)||Morning||0.52||Monolithic Power Systems (MPWR)||Afternoon||0.79|
|Beazer Homes USA (BZH)||Afternoon||0.00||Natus Medical (BABY)||Morning||0.62|
|Berry Global Group (BERY)||Morning||0.65||Navios Maritime Acquisition (NNA)||Morning||-0.04|
|Brink's (BCO)||Morning||1.06||Noble (NE)||Afternoon||N/A|
|Brookfield Renewable Partners (BEP)||Morning||0.01||NuVasive (NUVA)||Afternoon||0.67|
|BSB Bancorp (BLMT)||Afternoon||N/A||NXP Semiconductors (NXPI)||Afternoon||1.79|
|Caesarstone (CSTE)||Morning||0.28||Organovo (ONVO)||Morning||N/A|
|Callaway Golf (ELY)||Afternoon||-0.17||Owens-Illinois (OI)||Morning||0.54|
|Camtek (CAMT)||Morning||0.10||Pandora Media (P)||Afternoon||N/A|
|Carbonite (CARB)||Afternoon||N/A||Patterson-UTI Energy (PTEN)||Morning||-0.12|
|Cardiovascular Systems (CSII)||Afternoon||-0.04||Peabody Energy (BTU)||Morning||1.30|
|Care.com (CRCM)||N/A||N/A||PennantPark Investment (PNNT)||Afternoon||0.18|
|CDW (CDW)||Morning||0.93||Performance Food Group (PFGC)||Morning||0.37|
|Central Garden & Pet (CENT)||Afternoon||0.15||PJT Partners (PJT)||Morning||0.67|
|Central Garden & Pet (CENTA)||Afternoon||N/A||Pro-Dex (PDEX)||N/A||N/A|
|Cincinnati Financial (CINF)||Afternoon||0.91||Prospect Capital (PSEC)||Afternoon||0.18|
|Civitas Solutions (CIVI)||Afternoon||0.17||Prudential Financial (PRU)||Afternoon||2.64|
|CM Finance (CMFN)||Afternoon||0.25||pSivida (PSDV)||Morning||-0.15|
|Cognizant Technology Solutions (CTSH)||Morning||0.88||RadiSys (RSYS)||Afternoon||-0.06|
|Computer Programs & Systems (CPSI)||Afternoon||N/A||Radware (RDWR)||Morning||0.07|
|Cousins Properties (CUZ)||Afternoon||0.02||Rapid7 (RPD)||Afternoon||N/A|
|CSG Systems International (CSGS)||Afternoon||0.65||Rayonier (RYN)||Afternoon||0.09|
|CSRA (CSRA)||Afternoon||0.47||RealNetworks (RNWK)||Afternoon||N/A|
|DHI Group (DHX)||Morning||0.04||Regal Entertainment Group (RGC)||Afternoon||0.42|
|Diodes (DIOD)||Afternoon||0.38||Rent-A-Center (RCII)||Afternoon||0.07|
|DTE Energy (DTE)||Morning||1.00||Rio Tinto (RIO)||Morning||N/A|
|Ellie Mae (ELLI)||Afternoon||0.32||Sanofi (SNY)||Morning||0.68|
|EnerSys (ENS)||Afternoon||1.14||Statoil ASA (STO)||Morning||0.34|
|ePlus (PLUS)||Afternoon||0.84||Steris (STE)||Morning||1.07|
|Exelon (EXC)||Morning||0.60||Suncor Energy (SU)||Afternoon||0.44|
|FBL Financial Group (FFG)||Afternoon||N/A||Synaptics (SYNA)||Afternoon||1.09|
|First Solar (FSLR)||Afternoon||0.48||Taro Pharmaceutical Industries (TARO)||Afternoon||N/A|
|FirstService (FSV)||Morning||0.48||Taubman Centers (TCO)||Afternoon||N/A|
|Fonar (FONR)||Morning||N/A||Taylor Morrison Home (TMHC)||Morning||0.70|
|Forward Air (FWRD)||Afternoon||0.62||Tesla (TSLA)||Afternoon||-3.75|
|GGP (GGP)||Morning||0.20||The Carlyle Group (CG)||Morning||0.62|
|GlaxoSmithKline (GSK)||Afternoon||0.65||Timken (TKR)||Morning||0.67|
|Granite Point Mortgage Trust (GPMT)||Afternoon||0.36||Torchmark (TMK)||Afternoon||1.23|
|Green Plains Partners (GPP)||Afternoon||0.47||TriNet Group (TNET)||Afternoon||N/A|
|Hain Celestial Group (HAIN)||Morning||0.42||Trivago (TRVG)||Morning||-0.02|
|Hasbro (HAS)||Morning||2.04||Twitter (TWTR)||Morning||0.10|
|Hennessy Capital Acquisition (BLBD)||Morning||0.02||U.S. Global Investors (GROW)||Morning||N/A|
|Hornbeck Offshore Services (HOS)||Afternoon||-0.73||Ubiquiti Networks (UBNT)||Morning||N/A|
|Hortonworks (HDP)||Afternoon||N/A||Usa Compression Partners (USAC)||Morning||N/A|
|Humana (HUM)||Morning||2.00||Valvoline (VVV)||Afternoon||0.28|
|IAC/InterActiveCorp (IAC)||Afternoon||0.92||Verisign (VRSN)||Afternoon||0.99|
|Infinera (INFN)||Afternoon||-0.21||ViaSat (VSAT)||Afternoon||N/A|
|Innoviva (INVA)||Afternoon||0.38||Walker & Dunlop (WD)||Morning||1.02|
|Inphi (IPHI)||Afternoon||0.08||Watts Water Technologies (WTS)||Afternoon||N/A|
|Intercontinental Exchange (ICE)||Morning||0.72||Web.com Group (WEB)||Afternoon||N/A|
|Intermolecular (IMI)||Afternoon||N/A||Workiva (WK)||Afternoon||N/A|
|INTL Fcstone (INTL)||Afternoon||N/A||World Wrestling Entertainment (WWE)||Morning||0.18|
|Invacare (IVC)||Afternoon||-0.44||Xcel Energy (XEL)||Morning||0.43|
|Investors Title (ITIC)||Morning||N/A||Xplore Technologies (XPLR)||Afternoon||0.02|
|iPass (IPAS)||Afternoon||N/A||XPO Logistics (XPO)||Afternoon||0.43|
|iRobot (IRBT)||Afternoon||0.25||Yelp (YELP)||Afternoon||0.05|
|J2 Global (JCOM)||Afternoon||1.70||Yum China (YUMC)||Afternoon||0.18|
|Jacobs Engineering Group (JEC)||Morning||0.67||Zayo Group (ZAYO)||Morning||0.12|
|Jones Lang LaSalle (JLL)||Morning||4.22||Zynga (ZNGA)||Afternoon||0.01|
Pennants and Flagssubmitted by alfafinancials5 to u/alfafinancials5 [link] [comments]
A flag in the shape of a triangle with a tapering tail towards the end is referred to as Pennant. A similar looking pattern is formed immediately after a major movement in the price chart of a financial trading and forex trading asset in the shape of a triangular flag that can be seen by connecting the trend lines which are converging towards the end of the chart and then follow the same path of the initial trend with an outbreak. Pennants can be classified as Bearish Pennant and Bullish Pennant depending on its trend direction. This is how a Bearish and Bullish Pennant depicted in a Chart.
Bearish Pennants can be seen during a strong downtrend in the price chart followed by a short period of up’s & down’s, the trends lines of which resembles a triangular flag. Then there comes another sharp downtrend of fall in price which bestows an opportunity to make a short trade which is profitable from a huge fall in price.
BULLISH AND BEARISH PENNANT
Bullish pennant is almost the inverted version of bearish pennant which can be seen during a strong uptrend in the price chart. After forming a pennant pattern, the upward trend continues with a sharp break out and this paves a way to be profitable from the price rise. Bullish pennant is helpful for making long trades when the price rises for the second time.
ADVANTAGES OF BULLISH AND BEARISH PENNANT
The advantage of the bearish pennant in trading is that it allows us to make a short trade which will be beneficial to the traders to gain profit up to a certain level from a huge fall in the price.
Similarly, bullish pennant which is formed during the rise in price chart can also be profitable for the traders when used to make long trade when the price rises for the second time.
Flag patterns are formed when the price chart moves in a narrow path sideways preceded & followed by a steep break out or breakdown depending on the type of trend and can be differentiated as the Bullish and the Bearish Flag.
BULLISH FLAG AND BEARISH FLAG
The Bullish flag is a result of a sudden uptrend in price rate which looks like a pole and is followed by a collective narrow path of highs & lows which depicts the shape of a flag and then again follows the trend line with a breakout. On the contrary, the Bearish flag is an inverted version of the Bullish flag which finds its existence during a downtrend instead.
BULLISH FLAG AND BEARISH FLAG
TWO TRADE ENTRY SPOTS
Entry spots can be identified in two spots, the first entry spot occurs during the flag break while the second entry stop marks its place during the break of the pole.
TWO TRADE STOP-LOSS SPOTS
This Flag pattern is of two measured stop-loss levels. One can be placed under the upper trend line on the uptrend and the other at the lower trend line on the downtrend.
The gist of the above information would help the traders to tune their trading knowledge and also be helpful for the people who are beginners in trading to trade without much chaos.
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Reasons Behind the “Pennant” Pattern Formation in Forex. The “Pennant” pattern forms and materializes very quickly and most often occurs on M5-M30 timeframes. The most common scenario of the “Pennant” formation is as follows: trap (false move) (1) – impulse (2) – pause (3) – continuation (4). The forming impulse (2) is the outcome of the exit from the previous market ... Pennant Ein Wimpel kann als Einstiegsmuster für die Fortsetzung eines etablierten Trends verwendet werden. Die Bildung erfolgt in der Regel nach einer heftigen Preisbewegung, die ein Gap enthalten kann (bekannt als der Mast oder die Stange des Wimpels), wobei der Wimpel eine Periode der Unentschlossenheit in der Mitte der Gesamtbewegung darstellt und das vorherige Bein konsolidiert. Pennant Chart Pattern: Forex Chart Pattern . Author: Mahmoud Salha 22/07/20. Pennant Chart Pattern Definition The pennant graphical price model is a minor, short-term, trend continuation pattern that shows the previous direction will prevail in the future after its formation. As for the daily chart the pattern is generally formed within a week. Test your knowledge before trading. 12 simple ... Pennant Ein Wimpel kann als Einstiegsmuster für die Fortsetzung eines etablierten Trends verwendet werden. Die Bildung erfolgt in der Regel nach einer heftigen Preisbewegung, die ein Gap enthalten kann (bekannt als der Mast oder die Stange des Wimpels), wobei der Wimpel eine Periode der Unentschlossenheit in der Mitte der Gesamtbewegung darstellt und das vorherige Bein konsolidiert. Pennant performance strongly depends on the initial price change as defined by the pennant’s pole. Pennant vs. Symmetrical Triangle. At first glance, a bullish Pennant may appear to look very much like a Symmetrical Triangle but on closer inspection, it is typically of a smaller size and duration with volume tending to contract during the pause and then increase on the breakout. The Pennant ... The Pennant Forex Trading Strategy is easy to learn and with a little practice could be all you need to make a living trading. These are some of my favorite patterns to spot and trade. We talked briefly about support and resistance areas with this strategy, and if you still are not quite grasping what we mean, check out the Pennant patterns are very similar to triangle patterns, but there are some important differences between a forex Pennant and a forex triangle that should be acknowledged in order to trade either ...
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A Pennant is formed when price compresses; bearish pennants are a continuation trade pattern, we are looking for price to move in the same direction it has moved previously. Episode Highlights ... Pennant http://www.financial-spread-betting.com/course/flag-and-pennant.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! We are talking about technic... Pennant pattern trading in Forex and stock market is one of the most popular chart pattern trading strategies among traders, and pennant chart pattern is ver... http://www.stock-market-strategy.com/tutorials/flags-pennants Stock Market Strategy has put together a video to explain how professional traders use Flags & ... ForexMT4Indicators.com is a compilation of free download of forex strategies, forex systems, forex mt4 indicators, forex mt5 indicators, technical analysis and fundamental analysis in forex trading. Bull Pennants and How to Identify a Bull Pennant Pattern - Duration: 17:56. Bullish Bears 499 views. 17:56 . Why You're Failing as a Trader + Candle Sticks & Volume - Duration: 1:14:35. Live ... How to trade Flags and Pennants Chart Patterns Forex Trading Strategy The flag pattern is encompassed by two parallel lines. These lines can be either flat o...