the_information_nexus/random/forex pairs (1).md

I spent years going in circles trying to
become a profitable Trader but when I
threw everything out the window and
traded one simple strategy my trading
turned from losing me money to actually
making me money this is the biggest
Pitfall that everyone falls into when
they come to trading is thinking that
you can Master multiple strategies and
patterns and become profitable with them
all but in reality this is probably
what's holding you back from becoming a
profitable Trader so let me try and fix
that for you and save you from the
headache of wasting potential years and
walk you through the strategy that I
spend years waking and trying to figure
out so you can try and become profitable
faster than it took me so a quick
overview of the strategy is I have found
it way more profitable to just focus on
key areas of support and resistance in
the market just focusing on those cuts
out a ton of the noise and back and
forth that the market does and it allows
you to focus on high areas of
probability where the market is likely
to reverse and at those areas you can
get a high risk reward rate you and so
what that means is if you risk a hundred
dollars you can make three or four
hundred dollars and why this is
important for trading is because you're
not going to win every time that's just
a part of the game and when you have a
risk reward like that you can have
something like a 50 wound rate you're
only right half the time but you're
still profitable over the long run and
that's what's important when it comes to
trading and so that's what I found super
powerful about just focusing on key
areas in the market because that
increases the likelihood that it
reverses but it also increases the
likelihood of how large that potential
reversal is and so I focus trading the
es Futures on a one minute chart that's
what we're looking at right here and
what I found future so powerful for is
they allow you to day trade while
avoiding the pattern day trading rule
you do not need 25
000 in your account to execute day
trades consistently the rule is with
Futures you don't have to abide by that
they're a little different but the main
thing is you can skip the pattern day
trading rule which is very important
when you're trying to day trade actually
on a one minute chart and so how I like
to find these levels is I actually like
to use a larger time frame so if we go
over and look at a 15 minute chart I
like to essentially look at where the
market has made a clear double bottom
and then when the market comes back and
touches that level that's when I like to
look for a potential bounce because if
you use a larger time frame those
signals are going to be stronger and so
it increases the likelihood that you're
gonna find a stronger support level in
that area and when it comes to looking
for a bounce because you're on a smaller
time frame this bounce right here looks
pretty small on a 15 minute chart but on
a one minute chart which is what I like
to enter in on it can be a very large
trade and definitely a big enough trade
to make a nice profit off of and so once
you have created that level you just sit
and wait for the mark to come to you
that is a big key when it comes to
trading is you want to have your levels
already in place when it comes to
looking for trades you want to be
planning out what you're doing you don't
want to be reactive based if you're just
reacting to moves in the market as they
happen you're more likely to be trading
on emotions and not have a structured
plan in place having a structured plan
in place is extremely important when it
comes to your trading and another way I
like to draw levels is you can just draw
them off of a one minute chart as well
is the market has clearly made multiple
Bottoms in this area so I like to draw a
support Zone off of that and so when the
market then comes back and touches that
zone right here I'm gonna look for a
potential reversal off of that betting
that the Market's going to go higher off
of that now the biggest mistake you can
make is just buying when it gets to
these support levels randomly you don't
know if they're gonna hold and so I
found three key steps to follow when
you're looking for these reversals off
of these levels because if you just
randomly buy when the market comes down
to these levels we don't know anything
that's going to happen in the market
when it comes to trading but it's nice
to try and increase your chances as much
as possible and so the first thing to
keep in mind is you want to make sure
that the downtrend into your support
level is broken because if the Market's
just trending down in a clear downtrend
and you have some kind of really nice
downtrend in place and it's just
respecting that well if the markets come
to your level down here and you just get
in down here with the buy well the
market could just keep going down here
and break that level you want to wait
for the market to show a clear break of
this downtrend and switch that Trend
that's going to save you a lot of
hardship when trying to counter Trend
trade is you have to wait for that
downtrend to break in some ways before
there's a likelihood of the market to
actually reverse and so that's the first
big key thing is I like to see the most
recent Trend broken and so if we're
looking for a reversal off of this area
right here you know we have our support
level that's the burst key that we even
want to be looking out for but then we
want to make sure that the downtrend is
broken so to analyze this trend right
here the Market's made two pretty big
swings right here and those those are a
little too big to be drawing a trend
line off of because we're on a one
minute chart there are some smaller
Trends here in place you could say
there's a downtrend right here and it's
broken and then there's also a really
tight downtrend right here as well I
like to generally go off a couple swings
in the market or if the market makes a
really fast move like this where the
bars are just really one directional
then I just draw a really tight trend
line based on that and assume when
that's broken that that really tight
downtrend is broken now a quick side
note my bearish bars are blue here and
my bullish bars are white the reason why
I do this is that purely for emotional
reasons if you think about it red and
green are extremely emotional triggering
colors when it comes to trading you want
to try and keep things as neutral as
possible so these are very Zen colors
and so they don't trigger me as much
when it comes to trading seeing you know
a trade go against me seeing a bunch of
red bars that really adds up to
affecting you when it comes to trading
but so with this trade right here is
looking for a bounce off of this Zone I
would consider right here this as a
break of that downtrend now over my time
analyzing the market I've realized that
when the market breaks a downtrend that
doesn't necessarily mean it's going to
quickly reverse off of that area now of
course that can happen but in terms of
being consistently profitable I have
found that it's better to wait for the
market to come down break that downtrend
and then make a pullback and then this
is where you make that decision to get
in because there's a couple things that
can happen in this pullback right here
is one the market can actually continue
lower because then this could just be a
pullback in the downtrend where it
continues lower or it can then start to
shift higher essentially what this
pullback here is is it's an inflection
point in the market it's either the
market attempting to break lower and
continue that downtrend and that's
attempt failing which is a really good
signal if you're you're looking for the
market to go long and go up higher or it
just continues lower and it confirms
that hey the trend's still going down
and it's not time to get in yet and you
avoid that trade and just move on to the
next trade and you don't take a loss
which is really important when it comes
to trading is it's not about taking a
ton and ton of Trades the same reason
why this strategy works so well is
you're just focusing on just a few key
areas in the market and if you can just
take a couple of really good high
probability trades a couple times a week
it's going to be way more beneficial
than trying to take 10 or 20 trades in a
day and so once that pullback happens
what I want to see is a really strong
Candlestick that reverses in the
direction I want and so because we're
looking for a long trade here I want a
really bullish candle and so on my chart
those are white and this candle right
here is very very bullish you can see it
Market opens here essentially breathing
into the Candlestick The Market opens
here pushes lower and then Rockets
higher and it does have a little back
here and so that's pretty much exactly
what this Candlestick says but what it's
telling us is it's come back to this
area where the market previously
bottomed and buyers came in and really
wanted that area and so once I see that
I like to get in either at the close or
break of the high here and bet the
Market's going to go higher and then I
like to put my stop below this swing low
because what that does is if the
Market's going to decide to go up here
and keep going up great my Stop's not
going to get hit but if the trends going
to actually keep going lower well I want
to get out as soon as possible right
there's no reason to risk more money or
give it more wiggle room because in my
eyes this pullback here should hold if
it's going to actually reverse and then
from there I like to manage the trade
which we'll get into with a live example
in a second and in this case one key
thing that happened is there was a nice
little up channel here you gotta hold
through the chop in the market sometimes
the market right here really took a
while to get going and that's just a
part of trading right it's not gonna
just be a extremely fast reversal in
your favor right away but you know once
it gets going it can go quickly and
that's when you want to potentially get
out right in terms of getting out of a
trade you want to be looking at where
the highs are there's a there's
definitely a resistance level up here
the markets kind of come up here
multiple times and reversed and so
seeing the market rocket up into this
when you're in a trade you definitely
want to be getting out once you kind of
get up to those highs because the easy
money's done it's potential to have a
lot larger of a pullback you can see the
market did kind of get going up here and
make one more push higher but it did
eventually kind of sideways and holding
through this kind of pullback is really
hard and you don't know when that's
going to happen you don't know if it's
going to happen right here or right here
so let me walk you through a real
example of this strategy in practice and
so first off what we want to be doing is
looking for our support level so just to
show you on a 15 minute chart where I
found that is looking at currently you
can see the market made a nice bottom
here kind of moved along and it made a
pretty good bottom here as well and so
my thinking was okay I want to draw a
support Zone off of this level I like to
use zones because the market can really
come and touch the area anywhere it's
unlikely that it's gonna Just Bounce
perfectly off of the level and so you
want to use a Zone and so that support
zone is right here and so what I looked
for is hey when the market comes up
pulls back into that level that's when I
want to get in betting that hey I like
this area for a potential buy and I
think the Market's going to go up and so
that's what I looked for let me just
walk you through that a little bit let's
just zoom back in this recording and so
the setup for getting to this is just
that simple checklist having a support
Zone looking for a downtrend to be
broken we kind of had a really quick
downtrend like in our previous example
here and then looking for a Candlestick
pattern so the market essentially made
some pretty bullish reversal
candlesticks here and that's when I
wanted to get in and so I put my stop
right below that swing because the idea
is hey if it pulls back here and breaks
this area it's probably just going to
keep going lower and I'm wrong and
that's okay I just want to get out at
that point and move on to the next trade
but if I'm right and the Market's gonna
reverse here I think down here is a
great spot for my risk and then we can
see what the market can do with that and
so just to quickly kind of Zoom forwards
this a little bit I like to have it
pretty fluid management style and so
once the market kind of breaks up here I
move my stop to break even because I
like to take some risk off the table
there is kind of a downtrend line right
here and if the market decides to you
know sell off of that well I want to get
out right I I would rather get out at
break even versus trying to hold on to
it that's a really big mistake is trying
to give your trade too much wiggle room
it's good to give your trade some room
because the market does ebb and flow it
has ups and downs even in an uptrend and
so you have to be able to give it a
certain amount of room and that's hard
to know that definitely takes practice
but what I found is once it makes a good
break in your favor go up to break even
but just like when it comes to entering
in your trade and analyzing the trend
you want to be analyzing the trend when
you're in a trade as well and so if the
market comes up to this level I want to
jump out and I want to be able to try
and read into things and know when it's
good to get out of the trade really the
most important part is getting into a
trade and so if having a more fluid
management style is too complicated at
the start that's totally understandable
just have a simple risk reward ratio of
trying to go for two times or three
times a risk and then get out once it
hits there I don't really have a profit
Target I just have one just because my
system puts one in but I mainly just get
out with my stop loss and so a big thing
here too is we're kind of Awards this
resistance level up here now a big key
is this is kind of a minor resistance
level and so I want to get out if it
sells off of that level here and so you
can see I move my stop up again below
this kind of little micro pullback we
had here the thought process is hey we
have a really nice bullish move here
it's broken my little trend line I have
drawn right here if it pulls back and
keeps going up that's totally fine I'll
stay in the trade but we do have this
little micro resistance I have to
respect that and there's no reason to
get greedy betting that the Market's
gonna push all the way up to the larger
15 minute resistant right away and so
the market kind of just plays out
flagging out at this level and so that
can be really hard to hold through
learning to pull through trades when
it's just kind of sitting there is a
skill I often like to actually just go
and walk around and and vacuum or
something you know try and essentially
keep myself busy of course I'll look at
the charts but if your stop loss is in a
solid spot and you could say your profit
Target is in a solid spot too that's
totally okay you know I have this up
here because it's like if the market all
of a sudden smashes higher and hits me
well I'm okay getting out you know
that's still three or four times my risk
I'm not gonna complain right it's better
than you having no profit Target the
mark comes up here and then reverses all
the way down here and you missed it
because you were you know not paying
attention and so it's definitely a fine
line in doing that and so just seeing
the market puts along here I was just
moving my stop loss up with these little
pullbacks with the idea that hey this is
a pretty good breakout here I want to
you know move my stop-loss up and
capture that little bit more of profit
and now one thing I'm starting to see
here as I'm analyzing this is this is
pretty much a bull flag in terms of a
pattern and that's just a continuation
pattern so the thought is as soon as it
breaks this bull flag that it's going to
make another push higher like this the
market likes to move in pushes of two I
mean a good example is here it made one
push down two pushes down and then
reverse so my thought is okay I've
caught the reversal on the other side
and it might make two pushes like this
and so here you can see it starts to do
that it makes a pretty bearish candle
there and I move my stop up again below
that candle with idea that that's
another little micro pullback and once
the trade gets up to above three times
my risk I like to be be really tight
with how I managed to trade just because
it's great trying to capture really big
trade like this but on average I have
found that when I get up to about three
times my risk which is up here it's more
likely to have a pullback that is not
going to be worth it holding through you
know sometimes yes you can have a larger
pullback and it keeps going higher but
you know it's a fine line if you give
the trade too much wiggle room it's more
likely that on average you're just gonna
be giving a lot more back it's better to
take the easy money and run essentially
because you know that's just how trading
goes and so the market makes a really
big climactic handle here I like to call
it when the market makes a really big
Candlestick at the end of a trend like
this especially close to the resistance
level of the highs it's more likely that
it has a deeper pullback because think
of it like the market has energy right
it's taken a lot of energy to make these
two moves and it's gonna need
essentially to take a and so when it has
a very large move like this at the end
of already using all of this energy in
One Direction it's gonna need to recover
and so that increases the likelihood of
a larger pullback and so there you can
see I pretty much got out right as I saw
it start to look like it was losing
momentum and the market did have a
little bit larger of a pullback here and
so I was able to get out with a really
nice profit there so if you want to
learn more about this strategy check out
the link I have in the description below
it is a class that goes way more in
depth into this it's free and it will
walk you through everything you need to
know about this strategy and if you want
a video that dives more into entries and
exits of these trades check out this
video right here
now a quick side note my bearish bars
here are blue and my up bars
bars what is the upper bar