Let me play a little forex game with You here.
Looking at the forex chart below….do You have any idea how I :
1) Shorted at that point…
2) Exited Lot 1 at that location..
3) And then exited Lot 2 at the later location ?
For a ( Massive ) total profits of 975 Pips gained…
Manage to analyze how I grab those pips using just the patterns and price actions that’s presented on the above illustration ?
If You do….then let me congrats You….as You’re also on the way to be a very good and competent price actions trader in no time..
( Or perhaps You are already one….* smile * )
However….for those who do not have a single clue about how I nailed those massive 975 pips using these patterns..
Then You should really read the entire post as I would be sharing the step by step explanations on :
1) Why I choose to SHORT…
2) Why I decide to enter at that Price to short…
3) How I plan my 2 lots exit strategy..
This is definitely one of the most accurate strategy one can use to trade the forex market …
And the best thing is that it only involves simple ” Patterns Formation & Trendline Bounce “…combined with little Price Actions.
“….What are the steps that I consider before actually entering into any position that get me high winning success and consistent profits each month..? “
Of course….different traders would phrase in different version of their own words but generally…..they carry the same intention…
They wish to know my ” entire decision making process ” before committing into any position… ( whether Buy or Sell trades )
Logically….if YOU CAN ALSO see what a successful trader sees each time before he trades…
You would also be getting ” almost ” the same results ( or at least close results to him/her )….right ?
So upon knowing what these readers would like to know very much….
I really want to share as much as possible through this forex blog…in order to help You guys succeed..
Fact is……since I cannot transfer my entire brain to all of You guys…..( technology not so advance yet I am sure….LOL )
That’s why the more feasible way is to start this section in my forex blog which I called it ” Forex Case Studies “….
Here I will be sharing each different LIVE trades I have traded…
And include all the ” Whys….Hows….”
…..basically all the essential considerations You can also include - In order to enhance the winning probability each time You choose to trade…
If You don’t know this FACT about forex trading yet…..then it’s time to change Your mindset once for all…
” Forex trading is none other than a game of probability……”
“….If You can WIN MORE than You Lose ( and repeat the process )…., You will make Profits each month consistently “…..
Bear this fact in mind….
….and You could really go far and achieve the kind of success You desire with forex trading too…
Alright….so much for the above sharing…
Let’s dive into step by step explanations on the trade which I nailed 975 pips profits…..shall we ?
Step By Step Explanations For Forex Strategy
The GBP ( pound) has been very weak for the month of September as the economic data and GDP have been rather disappointing…..
I am taking into account this fact and simply scan all the GBP crosses for trading opportunities to confirm my BEARISH BIAS…
The common GBP crosses I would scan are namely : Gbp/Jpy….Gbp/Chf…..Gbp/Cad…..Gbp/Usd….Gbp/Nzd
And without much effort….I noticed these patterns on the GBP/CHF….on the daily time frame…
The set - up You saw above is considered one of the ( most ) reliable ” Bearish ” technical set up …
Why so ?
Because it combined 2 patterns formation here namely :
1) Double Top formation
2) Descending Trendline ( to further confirm the Bearish bias )
The price bounced off the trendline for the 3rd time…
And it could be a good trading opportunity for me…
However….due to the current support at that period…
I would need to wait for the price to break that support first ( provided it breaks )……before I could enter and SHORT this pair Gbp/Chf.
Patience is really the key factor here if You want to trade a ” Good & Profitable ” set up..
I personally waited for about 3 days before the price broke the previous support and enter the ” zone ” I wanted……
Once the price entered the ” zone ” that I wanted ….( which is breaking the previous support )
I shorted this pair Gbp/Chf with 2 separate lots..
2 separate lots are very essential as it enables me to exit partial lot at certain pre-determined Profit target…
And allow the 2nd lot to ride the down trend for max pips…
For all my strategies viewing from the daily time frame ( just like this one )….
I would normally enter using this 2 lots strategy….as there are ” always ” lots of pips to be grabbed from the market.
And of course….using a stop loss that would give You a ” Good risk/reward” ratio is mandatory for such big move and profit target.
This explains why most of the set - ups that I choose to enter are mostly those that would ” move massively”..
Since for this strategy, I am not using any technical indicators….not even ” moving averages “….
Then how do I planned my profit target 1 and 2 ?
This is what I am planning to share next ….
How Do I Planned For My Profit Target #1 and # 2 ?
It is a well known fact that price in the forex market tend to stall at a particular support or resistance points previously..
That is why a ” double top or double bottom ” is formed in the market….
So taking advantage of this fact…
I planned both my profit target points with reference to previous support that has formed in this Gbp/Chf.
As You can also see from the chart above…
The Take Profit ( TP 1 ) is set at price 1.67930
….which is slightly above the 1st ( previous ) support point…
The Take Profit ( TP2 ) is set at price 1.63200
…. Again….also set above the 2nd ( previous ) support point..
( Note : I would never aim exactly at the low of the previous support…..as that is not realistic. I would rather aim slightly higher as the price is more likely to reach. Being ” Consecutive ” is the keyword here…..)
Maybe at this point….You want to ask me this question too :
how do You know whether the price would move to Your Take Profits #1 and #2 or not…? “
My answer : ” I really don’t know…..as nobody can predict exactly what would happen next in the forex market….”
Only when the price actually moves….then the truth would be out…..agree ?
That is why I am using the previous support as a profit targets to aim for….
With these facts :
1) Double Top
2) Descending Trendline ( Bounce for 3rd time )
3) GBP is weak for this period fundamentally..
I am willing to ride on this ” down trend “ sentiment….
But just like any other things we do in life….
We need some backup plan for contingency….in case the worst happen…
For this case….I would at least ” secure ” the profits…….or at least reduce the risk further…
That explains why I enter with 2 separate lots for this trade….
Because I intend to ride for massive pips …( if it happens )….
And using just 1 lot is definitely much too risky…
But by using 2 separate lots….I can exit partial first after the first target…
Then I can shift my 2nd lot stop loss accordingly to reduce risk…..while still riding the wave…..* smile *
It is indeed very essential if You’re also planning to ride such massive pips in future…..
OK….so how did this trade progress…?
The 1st Profit Target was hit on the 3rd day of trading at Price 1.67930
( 251 Pips Profits…..and the stop loss for 2nd lot shifted to Break-even then… )
Subsequently….the 2nd Profit Target was hit after 1 week + of trading at Price 1.63200
( for a whopping 724 Pips profits ..! )
Here’s the earning screen shot for Profit Target #1 ( 251 Pips ) to share :
251 Pips gained for this 1st lot is equivalent to Profits Usd $ 2405.39 ( trading 1 standard lot )
And here’s the earnings screen shot for Profit Target #2 ( 724 Pips ) to share :
724 Pips gained for this 2nd lot netted me Usd $6948.34 in profits….( 1 standard lot )
Notice for this earnings screen shot….the Stop Loss ( SL ) has been shifted to the Price 1.66440…
This is already ” locking in 400 pips ” if You can do the simple math too…
Aiming for ” massive pips ” is definitely good and very profitable..
But it is also vital that You lock in the pips accordingly as the trade continues to go Your direction and Profits still growing…
Just like for this 2nd lot ….
As the pips keep accumulating….it would be really stupid if I did not “ trail ” along as it progress….
Imagine seeing ALL 700+ pips gained reversing and turning against You ……ended up losing all those valuable pips…
That’s equivalent to banging “A HARD Wall big time ” to me……
Do You agree that can be really detrimental & negative both to one’s confidence and morale..?
Well fortunately…..it can be avoided at all cost…
For this trade….all I have to do is lock in those pips ( profits ) accordingly…..
….while at the same time giving some ” breathing space ” for the trade to develop without getting hit unnecessarily..
There’s really no fix formula to how much You should lock it…
Just depends on how much You have accumulated …
AND….how many of those pips….You want to secure….that’s all…
Remember…in any trading game….nothing is certain….nothing is guarantee…
So it is our duty to protect and secure the pips we have accumulated…
If the trade go against You…..nobody would feel sorry for You…..
The market would not feel guilty too just because it has reversed on Your position causing You to lose all the 700+ pips You have gained earlier…! ( Arghhh….)
Ride the Pips……Lock in…..& Lock in MORE……that’s the key. * smile *
Alright…..up till this point…
That’s pretty much all I would like to share with You about this ” High Probability Forex Strategy ” using just :
1) Double Top
2) Descending Trendline Bounce
3) Fundamentally weak GBP
4) Support and resistance to plan for profit targets…
Which means once You can trade using these elements from the market…
You do not need to rely on those ” lagging textbook technical indicators ” anymore too……if You want..
Enough of seeing those situation when You’re always too late to enter into a trend because You’re waiting for those technical indicators to show You the signals to enter …..right !
That’s NOT the way to trade the forex market…..for sure!
I have been through the frustrating phase too…..always LATE on buying or selling into a position because those lagging indicators are simply lagging in nature..
The moment I learn about trading solely using ” Price Actions + Patterns Formation“….
My monthly trading results complete changed !…….And for the better…..No joke !
It makes me trade really confidently too…..without having to worry about being late on my entry point….
YES…..even with merely price actions + patterns formation….I can spot good trading opportunity for such ” massive trend ” too…
You have gone through all the illustrations and my entire ” decision making process ” above ……
And now You Know…..* smile *
The key to achieve such MASSIVE Pips…..is to be abled to lock in those pips….and even more pips as the trade progress…
And of course…..must be dare to see the entire trade through……and ride on the major trend that prevails..!
Thanks for reading this far…..
Hope this is a valuable learning experience to You so far…..
Good luck in Your trading and happy riding the next MASSIVE Trend too !
