Strategies for Trading Exotic Currency Pairs Exotic currency pairs offer unique opportunities in forex trading, combining major currencies with those from emerging or smaller economies. While they may be less frequently traded than major or minor pairs, their higher volatility can lead to significant price swings. This article delves into exotic currency pairs...
This is how I have been using this indicator, coloring the divergence bars a separate color helps them stand out and makes it easy to build the rest of the model around the strong volume in the bars.
When it comes to learning about markets and trading, finding the right path and committing to it is the hardest part. The right path has little to do with any technical analysis method. It has to do with structuring our mental framework so that we fundamentally change how we experience markets, trading, and loss. In the video, I show some Median Line and...
It's common for some traders to see things in black and white, worrying too much about the outcome of each individual trade and giving excessive importance to winning or losing on every try. This perspective is pernicious because it overlooks the inherent uncertainty in the process, which often leads to unnecessary emotional burden and is almost always detrimental...
Liquidity: LQ High/Low LQ Strong High/Low => Swing High/Low LQ trendline LQ Equal High/Low Liquidity => Strong High/Low => Break => Swing High/Low
Cryptocurrencies have revolutionized the financial landscape, with Bitcoin and Ethereum emerging as two prominent players shaping the digital economy. Despite sharing the common ground of blockchain technology, each offers distinct features and functionalities, underscoring the need to understand their differences. Introduction to Bitcoin Bitcoin, introduced...
This is one important case study as to why investors lose money in the stock market. Now if you look at the chart, Here is what you see: 1. 32 Months of pure range-bound consolidation 2. Clearly defined support and resistance zones 3. Five months of consolidation at the resistance zone 4. A beautiful high-volume breakout followed by a...
Find True Open Time Wait for manipulation Entry at Manipulation before Distribution start. TIME & PRICE
Intro I tried to talk through stop-loss placement in 3 minutes here. I do not think justice was done. So let's take a look at exactly what I mean when I say "Let Your Trade Cook". Proper stop-loss placement is critical to a successful trading plan. Don't Place Your Stop Like Everyone Else You are guilty of this, if you have been stopped out many times just...
Here we take a look at trading pullbacks using the Keltner Channels. I cover the initial setup, the types of entries, and trades to avoid. This setup contains 3 parts: The channel touch The Pullback The Entry The Channel Touch Here is an example of the beginning signal in our setup, a band touch. The top and bottom bands represent the ATR (Average...
Understanding Probability in Trading Probability is a fundamental tool in assessing the success of a trading system and making informed decisions. In simple terms, probability tells us how often we can expect a system to succeed relative to the total number of trades executed. Imagine you have a trading system with specific rules that are repeated over and over...
This video goes into depth on the types of market structures and how they happen. Ranging -> Breakout (Spike) -> Channel (trend or a ranging trend) -> Climax. The market moves in these repeatable patterns over and over and over again. If you can diagnose where we are in these cycles then you can harness this skill to improve your trading.
Hey Rich Friends, Happy Wednesday! I wanted to share one of my top 3 favorite indicators with you.... The Stochastic (STOCH). As a leading (vs lagging) indicator, it is perfect for beginners because you can find entry and exit signals with only a few key details. Adding the STOCH to your chart: 1. Search the indicators for "STOCHASTIC" and click once to...
An illustration of Cup and Handle pattern First look for an initial uptrend of the stock Later a small pull back And later reversal of the pull back .... Breakout of the highest point of the pull back At retest , look for reversal candles like doji.... Look for tight price action Enter the trade just above the high of the candle with stop loss below...
In this video, I discuss The Anti a trade first mentioned by Linda Raschke in her 1996 book Street Smarts. Her version used a Stoch indicator but, I prefer a modified MACD indicator. To take this setup, you first need an indication of market reversal. In our case that will be climatic activity. So this trade has 4 parts: Climatic activity or other indication...
The Power and Beauty of Price Gaps Price gaps represent a clear imbalance in supply and demand, making them one of the purest representations of momentum in financial markets. These gaps occur when there is a significant disparity between the closing price of one period and the opening price of the next, indicating a sudden surge in buying or selling pressure. ...
In times of geopolitical turmoil or war, investors often seek refuge in currencies perceived as safe havens. several currencies are considered safe harbors due to their stability, liquidity, and low risk of depreciation. Some of the notable safe-haven currencies include: 1-US Dollar (USD): The US dollar is often regarded as the ultimate safe-haven currency due to...
What Are the Most Popular Trading Exit Strategies? In trading, having a solid exit strategy is essential for managing risk and securing potential returns. This FXOpen article explores four popular exit strategies, offering traders a comprehensive look at how to refine their exit plans and potentially improve their trading performance. The Importance of Trading...