There is a pair that you can trade that my mentor made me to realize that you can actually make mon-ey out of this one pair. I’m not saying that you should only trade this pair alone but I do suggest that you add this pair to your pair list and I also suggest that you trade at least a maximum of 4 pairs.
GBPJPY
The Japanese Yen vs. the Great British Pound is one of the most consistent and profitable pair that I believe to be the easiest to make money with or you can try other major pairs with the Japanese Yen. For pairs that you desire to trade, its up to you to choose any of the major pairs that you feel are consistent or you understand.
-The Green bar Represents Increase in price and it Closes at the top.
-The red Bar Represents Decrease in price and it Closes at the bottom
The shadow is the peak that The bar reached.
Green ->This means that the green bar represents an increase in price and when the bar starts forming it begins to form at the bottom and it closes at the top when its time period ends.
Red -> The red bar represents a decrease in price and when it starts forming it begins to form at the top and closes at the bottom.
THE ULTIMATE STRATEGY
SWING HIGH & SWING LOW
The strategy that we will be using comprises of certain steps that need to be followed precisely and I will give you these steps in an easy way that you can understand. One important thing you must always keep in mind is :
NEVER MANUALLY CLOSE A TRADE.
If you place a trade , no matter the conditions let it run until it hits either the stop loss or take profit, you should never be tempted to close a trade because you think its reversing against you. Every time you place a trade , it should always have two exit points which are the stop loss if the trade reverses against you and a take profit if the trade goes in your favor therefore I suggest that after you’ve placed your trades close down whatever device you use to trade and you’ll come back later on to check whether the trade was a losing one or a winning one.
SWING HIGH
Step 1…..
SPOT A CLEAR TREND
The first thing you should do is to spot an uptrend , to simplify this you should spot at least 4 to 5 green bars that are moving in the same direction.
WAIT FOR A REVERSAL
Now we wait for the uptrend to begin to reverse and that’s where we want to place a trade, but we need to be certain that its reversing and we are going to do that by following these simple steps of confirmations.
Once you notice the uptrend switching from forming green bars to forming the first red bar , that should be a heads up that a reversal is about to take place
Now there are two confirmations that you need to follow to be certain that it is really reversing.
CONFIRMATION 1
When a second red bar forms that is lower than the first red bar we call the first red bar “The middle bar” and that makes our first confirmation but that does not mean we should place the trade yet, we should wait for confirmation 2.
CONFIRMATION 2
The second confirmation takes place after any bar that crosses the moving average indicator, immediately the bar crosses the moving average and closes you must place the trade, make sure you wait for it to close below the moving average.PLACE A SELL TRADE
Let’s recap :
– Spot a trend
– Confirmation 1 : second red bar is lower than first
– Confirmation 2 : red bar that crosses MA
If it doesn’t form this pattern , don’t TRADE
Another Example….
Now that you’ve placed a trade, you must put a stop loss and a take profit.
– SL : 10 pips from placed trade
– TP : 20 pips from placed trade
SWING LOW
Step 1…..
SPOT A CLEAR TREND
The first thing you should do is to spot an downtrend to simplify this you should spot at least 4 to 5 red bars that are moving in the same direction.
Step 2….
WAIT FOR A REVERSAL
Now we wait for the downtrend to begin to reverse and that’s where we want to place a trade, but we need to be certain that its reversing and we are going to follow the same steps as before , our confirmations.
Once you notice the downtrend switching from form-ing red bars to forming the first green bar , that should be a heads up that a reversal is about to take place.
When a second green bar forms that is lower than the first green bar we call the first green bar “The middle bar” and that makes our first confirmation but that does not mean we should place the trade yet, we should wait for confirmation 2.
CONFIRMATION 2
The second confirmation takes place after any green bar that crosses the moving average indicator, imme-diately the bar crosses the moving average and closes above you must place the trade, make sure you wait for it to close above the moving average.
PLACE A BUY TRADE
Let’s recap :
– Spot a trend
– Confirmation 1 : second green bar is lower than first
– Confirmation 2 : green bar that crosses MA
Another Example….
It is also possible for one bar to make confirmation 1and 2 at the same time therefore making an opportunity for opening a trade.
SL : 10 pips from placed trade
TP : 20 pips from placed trade
Now I know you must be asking yourself how much lot size should I use and I say it depends on the size of your account but I suggest you use the power lot size of 0.05 .
This is the ultimate trading strategy that my mentor gave to me and has changed our trading accounts in-to consistent profits, if you learn , understand and ap-ply this strategy your trading account will also change.