Showing posts with label Trading Strategy. Show all posts
Showing posts with label Trading Strategy. Show all posts
Understanding the Market Condition : Nikkei JPN225 Scalp Trade Example : v
Understanding the Market Condition : Nikkei JPN225 Scalp Trade Example :
Well its my first time trading the Nikkei, ! but its on a demo account , but i'd like to share the chart and why i took itFirst I look at the big picture - 4hr chart
During the Asian Session, the Nikkei jumped very aggressively and jumped and stayed above an important level of 15000.
- As price approaches a fib retrace level of 61.8, its an area i will look for clues if market will take a pause
- Drawing in fib extensions, i saw a 127.20 fib ext level just above 61.8
- When market got there, i zoomed in a 5 min chart and see it bounced from there, so i just took a short trade there
Why was i confident?
- The time of the market was nearing Asian Lunch time where Hong Kong share market takes an hour lunch break and sharemaket takes a pause. - So the market condition should slow down, and earlier traders who got in the long of the nikkei most likely close their positions. -
- So understanding the market conditions is very important.
- Market went in my way, then i closed my order once price has stalled and performing 5min pin candles, and also the time is when every trader gets back from lunch, and market could resume its bullish momentum.
End result
- I got 700points from initial 400 risk. so nearly a 1:2 risk reward.
- As you can see, market is starting to pick up its momentum and if i were to kept my short opened and be greedy, my profits became negative!
More advanced tip:
At the same time , you could have traded a yen pair, say USDJPY, and could have went short, with the same result - (Nikkei and Yen Correlated)
At the same time , you could have traded a yen pair, say USDJPY, and could have went short, with the same result - (Nikkei and Yen Correlated)
Happy Trading!
Trading Strategy for Scalping exposed! -HIGH PROBABILITY with Low risk High Reward setups
Trading Strategy for Scalping exposed!
HIGH PROBABILITY with Low risk High Reward setups
Aim - To find confluence of
- Fib Retrace levels
- Fib Ext Levels (also inverse)
- Daily / Weekly / Monthly Pivots
- Support and Resistance
This is a chart of the AUDUSD H1 chart -
You will see that i have the following- Two sets of Fibonacci retrace swing level
- Two sets of Fibonacci Extension swing level
- Daily Pivots shown only
- Marked area of support and resistance
For details on how to identify swings for fib retrace - there are tons of info online,
I will however explain the fib extension-
1st Swing is - from the low to recent high
2nd swing is - consist of both, Previous Days trading range, and also yesterdays swing low to high
What does the chart tell me?
You will see that the 127.2 fib ext, which is overlapping exactly on the 61.8 retrace - this to me is a very strong and together with previous support which now is resistance. And whats above? there is a 78.6 from the smaller swing retrace as well as a daily pivot.
How Should you trade this?
Two ways
1 - Risk takers - , Pending Order there - however stops will need to be wide, perhaps above the daily pivot or even at the the high of the smaller swing.
2 - Conservative Traders / Scalpers
Wait for price to get there, zoom into a 5 min or 15min chart, and look for confirmation entry.
Confirmation entry - there are few techniques, and I could not explain them all , however in this scenario a Shooting star candle was enough!
Below is a 5 min chart - where you see a Shooting star with the body closing in the previous candles body.
nb - bit risky because of the huge jump on the previous candle due to news releases, but you can see your risk is small and when you see that price stalled at the level we anticipate it will reverse.
Another way is what I learnt from Forexmentors Vic Noble Course.
- You will see that there was a buy setup on the AUDUSD after the whiplash action
Word of Waning
Guys, don't be greedy when trading, Don't go for the home run! Get your 1:1 or 1:2 (risk reward) and take your profits of the table. These setups occur everyday, !
Last words
I hope you guys learnt something here. There are many more techniques and things to look out for, what I have shown is just the basics. :)
I am not the best on explaining things , but my passion is to provide good information to traders out there!
Cheers
Trading Strategy
This is my contribution to an easy trading strategy for new traders. It is an effective strategy, that is easily traded. Please keep in mind that price can go as far as the previous day's high or low depending on the direction of your steps. Also be mindful that this is a short term strategy. Have a killer trading week, and make money!!!!!!!!!!Here is a link to some more free lessons. Some of them are actually good!
http://www.ino.com/info/447/CD4033/&dp=0&l=0&campaignid=6
This blog is not in anyway an enticement or solicitation to trade in the Forex Market. These tips are for informational purposes only and are not to be substituted for legal advice or council. I have written this blog in hopes that it will help you to avoid some of the terrifying pitfalls I had in the Forex Market before I learned better.
Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you need for living expenses and cannot afford to lose.
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