Video Synopsis – Trading reversal bar systems in forex – 6-9-2009
In the above forex trading video we are looking at a live GBPJPY reversal bar forex setup that formed on the daily chart. This is for educational and training purposes only and is not to be considered a trading recommendation.
In this setup we are looking for 3 things:
Daily chart uptrend carries a lot of weight, horizontal line at 151.10 broke out to upside. Moving average divergence indicates momentum is up. Prices are obeying the MA, short term momentum is extremely buoyant, and each time price hits the MA it bounces from it and closes higher. The uptrend is great but we need some confirmation to find our trading signal.
• Price action
The confirmation comes from a reversal bar, the classic candle bar “doji” or bullish pin bar reversal. The tail is pointed down for an uptrend continuation. We can only look at bars that are closed out to find our trading signals. This trade entry decision included the uptrend and then the bullish price action signal confirmation, the stop is placed just below the low of the pin bar
• Enter on retrace
Looking for a small intra-day retracement to get long, however we do not need to look at the intraday charts to do this, just keep your eyes on the daily chart. Intraday charts are much more complex; price action should be traded mainly on daily charts, especially for newbie’s. I started trading on simple daily charts, they carry a lot of weight and thus higher probability and they help with the emotional side of trading.
Get Free Trade Setups, Videos, Tutorials, Articles & More
Disclaimer: Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By Viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Learn To Trade The Market Pty Ltd, it's employees, directors or fellow members. Futures, options, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures, spot forex, cfd's, options or other financial products. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.