Successful traders should do all they can to help others yet you see these 'Forex Guru's' on Instagram living these fancy lives driving rented Supercars etc yet people fall for their marketing skills to draw you in to use their service when in reality trading is hard work, it can sometimes be 10 hour days.
These 'Traders' never tend to share their charts on their social media, why do you think that is? because they haven't a clue what they are doing. I'm not one to slate people but a popular 'trader' on instagram recently had a cone superglued to his Lambo, probably because they were scammed by him and this was payback. Shortly after he posted this online someone commented on his post saying something along the lines of "this is what happens when you scam people of their money... aren't you still on the warning list on the FCA due to your scamming activity" funnily enough all comments were swiftly deleted and then the option to comment disabled... funny that!
Anyway, enough of my rant here is a breakdown of a trade taken last week. NZDJPY.
The way I trade, as the trendline had already had 3 touches into it I was waiting for price to break, it is too risky trying to buy onto this setup after 3 touches have already happened - think of it as a brick wall and the candles are a sledgehammer. The more touches (hits) into it the more likely it is to break, which as we can see happened. Do not enter on the break as more often than not, price will pull back to retest the trend line so come and touch the opposite side before dropping. As we could see this happening, we added in a Fib from the RSH to the RSL (Recent swing high - recent swing low) After doing this we could see some rejection happening on the 38.20% so we started the sell as you can see at the 2nd bearish candle closure. In reality when we looked back we can see a lot better support in line with the 50% fib so should have sold there instead but non the less the trade went well. We came close to the stop but this was calculated nicely above the previous highs to the left.
As you can see this set up played well and made a nice 5% profit on this trade alone!