"Free Forex Trading Strategies Daily from Asia Forex Mentor"

[asiaforex]

Forex Trading Strategies & System – 2nd Chance

In Forex trading, price always gives us a 2nd chance to place our trades before it takes off.
It can be considered as a 2nd chance or you can consider it as a confirmation bar.

In the chart above, Aud Usd.
We can see the first highlighted blue box showing a pin bar.
As this was not the nicest pin bar of all. We did not take it.

Or if just to say – we missed this pin bar for some reasons. Either by choice or we were not at the chart when it happened.

As mentioned, price always gives us a 2nd chance or a confirmation bar – which is the 2nd highlighted blue box showing a pin bar.
Telling us a great hint that the train is sounding its horn and is taking off – getting the last few passengers to board the train.

Usually Most of them time, the train will take off after that, heading our direction.

In the chart above, besides the pin bar. There are several reasons (confluence factors) which we had entered on the trade.

1) Overall uptrend movement
2) Pin bar at the price pivot area 0.94900
3) Trend line confluence
4) Double confirming pin bar

Remember – the more the confluence. The higher the probability of the trade.

Here’s another example:

 

[asiaforex]

Forex trading strategies: Top Down Approach

Lets look at a recent pair Eur Gbp. When we trade forex, we would always want to trade with the main trend. Even though it is an old say “trade with the trend” or “the trend is your friend”. Sometimes, it is always the simple things that works.

In this pair. As we can see from the chart above – Eur Gbp Daily Time frame.
It shows a lower lows, and higher highs – drawn by the circle in the chart. This represents an up trend.

Therefore, we would want to zoom down the time frame to look for price action + confluence entries to enter.

Lets look at the 4hr chart:

In the chart above, i have highlighted 2 pin bars in the blue boxes.
Those are good possible entries since it is form at the low of an uptrend.

Remember, it is always best to enter at the retracements of uptrends or downtrends.
And it is in confluence with the price pivot at 0.83300.

Lets look for more reasons – confluence to enter the trade. Remember, in forex trading. It is about probabilities.
The higher the probabilities, the greater the chance of winning.

Lets zoom down to the 1hr time frame:

in the 1hr time frame. Thats great news to see.

And, it is in confluence with the 150 moving average acting as the support.
Therefore, whichever pin bar we use as the entry point would still end up well.

To conclude, in this trade the reasons for entering are:
- The pair is in an overall up trend
- Pin bar in the 4hr time frame
- Price pivot in the 4hr time frame
- Pin bar in the 1hr time frame
- 150 moving average in the 1hr time frame

Point to exit as shown is the price pivot at 0.84000 which is a resistance area for the previous highs.

In this trade, our risk reward ratio is yet again a 1:4 ratio.
Splendid it may seem, but these are the trades we take always. Which accounts for our account size Growth!

 

[asiaforex]

What is Price Action?
A lot of people have this question in mind, what exactly is Price Action.
And why is Price Action King in Forex?
To answer the above question, i start off with talking about indicators.
There are tons of indicators out there, be it forex or others. They work mostly the same way.
And there are new indicators coming out every other day.
Alot of traders when they first started trading forex, they have tons on indicators on their charts. Trying different combination of which works best for them. And at the end of the day, they get confused all over as one indicator may be telling you to go long, but the other is telling you to go short.
Which will result in you making bad decisions and end up blowing your account with a frustrated mind.
Why does it happen this way? Indicators are derived from the chart movements. Some indicators react faster, some slower.
However, as they are derived from the chart movements. They are 1 step slower than the chart. Which is in fact Price Action!
Price Action leads the indicators, and when price reverses it movement from short to long (example). The indicator which you are watching is one step too late. And by the time the indicator confirms it is going short, Price Action has taken the market to go Long.
This happens most of time, if not all of the time.
Therefore = ALL INDICATORS ARE LAGGING INDICATORS!
PRICE ACTION IS WHAT LEADS THE INDICATORS, IT IS KING IN FOREX!
By understanding Price action in forex trading, we are able to understand the ENTIRE PICTURE of the market.
WHY is the market moving up,
WHAT causes it to stop moving,
WHY is the market reversing
WHY is the market in consolidation
IT is like reading a book once you have mastered price action in forex. And the best thing is, It is not difficult!
It is even easier than you reading an indicator.
And when you mastered price action, with combination of our system. You will almost be able to pick absolutely MARVELLOUS TRADES all the time. CONFLUENCE is the King of the game. This is what equates to our high probablity trades with a high winning ratio.

 

[asiaforex]

Trading Psychology – Conquering Your Emotions

A lot of traders can actually feel their emotions in place when they place their trades. And seeing their trades taking place.
Emotions include:
- Heart Thumping (Beating faster)
- Sense of Anxiety
- Nervousness
- Excitement
- Irrational Behavior
- Frustration
- Desperation
- Hatred & Revenge mindset
- Devastated
- Always feel that the market is going against you
- Etc,
If you feel any of the above in trading, it is normal. The market is set for you to feel this way.
Which is why to be a successful trader, 80% is about conquering and mastering trading psychology.
And some of the reasons that you could be feeling any of the emotions above include:
- You are trading way beyond your risk level (Trading too high an amount of your capital)
- You have not calculated your proper risk size before entering
- You entered based on Gut feel
- You fully expect and anticipate that the market will go your way according to your previous experience or something which you had learnt – but it Didn’t..
- You are trading on a money that you desperately need. (Eg. borrowed money, food money, life saving money etc..)
- Etc.
If you have experienced the above, stop trading for the moment.
Remedy:
- Go get a shower and analyze what had gone wrong
- Go for a stroll in the park, beach etc..
- Self Reflection
- Meditation, calming exercise
Ask yourself, are you trading the right way?
Are you actually trading or gambling?
Do you have a proper trading system?
Did you entered on proper setups (eg. price action) or you entered based on your gut feel?
Trading is about self analyzing, discipline, self control, and sticking to your trading system.
It may sound tough at first, but once you start practicing the stuffs here for 20 days. It will then become part of you and you are no longer putting any conscious effort in applying the above.

 

[toshi]

thanks, can you please shrink the chart a bit as it is too large to fit my screen. Please continue more sessions

 

[asiaforex]

A quick one here.

If you have read the previous post on “2nd Chance”

Here is another example that happen today.
Forex trading pair: Gbp Usd

The chart above shows 2 highlighted pin bar.

Read back the previous post to understand what “2nd chance” is all about.

Sure enough on this pair, the gbp usd took off after that.

This happens all the time, these are also our money maker.
And they are just 1 of them in our Asia Forex Mentor Price Action Course bag. =)

To an awesome trading as always,
Asia Forex Mentor
Ezekiel Chew

 

[asiaforex]

Forex Price Action – Bearish Outside Bar

Forex trading pair: Eur usd Daily

Eur usd daily time frame shows a bearish outside bar as highlighted in the chart above.
Bearish outside bars are trend reversal bars.
This coincides with the fibonacci 61.8% level.

If we wanted to play it with a little of risk, we can enter at the break of the price action bearish outside bar.

But we want to know why price is stalling and not making any major movement. Therefore i zoom down the time frame and saw the reason.

Eur Usd 30 min time frame

Price is stalling in the range of the 150 and the 200 moving average as highlighted in the chart above.
This explains the reason why price is not making a trending movement yet.

What we can do is also – play a breakout trade on both sides of the range.

The above is a brief analysis on the eur usd chart. I may place a pending order at the break of the price action bearish outside bar.
However, this is not a Class A trade as there is no major confluence level to confirm my entry.
This is only to highlight to you guys on price action – bearish outside bars.

 

[asiaforex]

Here’s a trade that i’m in since last week.
Forex Trading Pair: Gbp Jpy

As seen in the chart above, a pin bar in the highlighted blue box was formed.
It was a nice pin bar, with a nice long nose.
It is also in confluence with the price pivot as shown in the orange line at 130.299 in the chart.

As the pin bar was a long nose, we usually understand that price will retrace back to close to the previous bar eye before going down. Which is why i placed a pending sell order at the pink line 130.440.

By doing this, i have reduced my stop loss level and increased my risk reward ratio.

Therefore our first partial profit target was at a mini price pivot (orange line) 129.659. It is marked at that level due to a previous bar support as seen in the highlighted grey circle in the chart. Which is a nice risk reward ratio of 1:3

Our next target profit area is the low and a price pivot area of 129.00. That is a nice risk reward ratio of 1:5.

To further our reason of taking this trade.
Lets look at the daily time frame.


In the chart shown above which is the daily time frame.
The market is seen as a overall down move.

We always like to take trades that are in the overall market movement.
Which is as shown in the chart above, price is making a lower highs, and a lower lows.

This further adds to our confirmation that we are in the right trade at the right time.

Just as i am typing this post. The trade ended with our final profit triggered.
A nice risk reward ratio of 1:5.

This is how we trade and this is how our account size GROW!~

To an awesome trading as always,
Ezekiel Chew

 

[asiaforex]

Here’s a trade that i’m in since last week.
Forex Trading Pair: Gbp Jpy

As seen in the chart above, a pin bar in the highlighted blue box was formed.
It was a nice pin bar, with a nice long nose.
It is also in confluence with the price pivot as shown in the orange line at 130.299 in the chart.

As the pin bar was a long nose, we usually understand that price will retrace back to close to the previous bar eye before going down. Which is why i placed a pending sell order at the pink line 130.440.

By doing this, i have reduced my stop loss level and increased my risk reward ratio.

Therefore our first partial profit target was at a mini price pivot (orange line) 129.659. It is marked at that level due to a previous bar support as seen in the highlighted grey circle in the chart. Which is a nice risk reward ratio of 1:3

Our next target profit area is the low and a price pivot area of 129.00. That is a nice risk reward ratio of 1:5.

To further our reason of taking this trade.
Lets look at the daily time frame.


In the chart shown above which is the daily time frame.
The market is seen as a overall down move.

We always like to take trades that are in the overall market movement.
Which is as shown in the chart above, price is making a lower highs, and a lower lows.

This further adds to our confirmation that we are in the right trade at the right time.

Just as i am typing this post. The trade ended with our final profit triggered.
A nice risk reward ratio of 1:5.

This is how we trade and this is how our account size GROW!~

To an awesome trading as always,
Ezekiel Chew

 

[asiaforex]

Forex Price Action – Usd Cad

As seen in the chart above,
In the highlighted box 1. – It shows a consolidation of Price action – inside bars.
When we see that, we know that price is going to break out. Either up or down.
Therefore we would have played a pending entry on both side of the inside bars.

It eventually went down which we knew it would, and we took profit at the horizontal line, which you can see why in the bar on the left. It is hitting a support level – a price pivot.

Therefore no wonder, once it hit the support level, it went up and guess what took it down.
Picture 2. – A price action – Bearish outside bar

With the bearish outside bar in place, we knew price is going down further.

Therefore, what came after the bearish outside bars in picture 3. are more inside bars.
The bearish outside bar tell us that the inside bars are going down. Therefore, we would have played a pending sell order on the break of the inside bar and caught the next downward move.

You see, once you understand price action – reading the chart is like reading a book. =)


Get free daily strategies at asia forex mentor : www.asiaforexmentor.com

 

[Lord Flasheart]

My usual request to mentors such as yourself,how about calling some live trades on the live trade thread,then we can all sing your praises.Welcomem to the site