Brandon Wendell, CMT: Finding High Quality Turning Points

excellent perfect okay let's go ahead get started then welcome everyone this is brandon waddell from the online training academy and i'm actually coming to you live from our New York office ISM as a matter of fact right down the street from Wall Street right around the corner from the exchange believe it or not and teaching a class right now so I took a break from my class to kind of join you guys and talk a little bit about the proper ways to find market turning points we call supply and demand you may have been attending a couple of our different webinars in the past with Sam side and myself and so I was talking a lot about how we use these zones to identify high probability opportunities in the markets so I'm going to go ahead and share with you some of the basics some of the things that I use to be able to find the high probability trading opportunities that I do take in the currency markets as well as really any market that you want to trade it's not just currencies that this applies to it applies across the board equally to equity markets futures markets and it doesn't really matter what it is you're trading you want to make sure you're trading with the highest probability for success we do that by finding the areas where prices are most likely going to turn and we take our entries and our exits based on those their areas so when it comes to these areas our zones really what we're going to be doing I'm kind of jumping into the the classes we have yeah this is turning points oh it's is turning points that's maybe misspelled it okay well it's turning points and really what we're looking at our supply and demand zones okay and what's going to happen with these supply and demand zones is that it's going to be an area on the chart where prices are most likely to change direction and that's because supply and demand are most out of balance in those areas okay there's two types of zones there's going to be a supply zone and there's going to be a demand zone and those are going to be dictating where we should be buying or selling any particular security that we're looking at possibly trading so when we look at these zones there are two distinct lines that we're going to be drawing when we draw these zones if you think about it makes sense if you're trying to figure out a supply or support resistance which is with the traditional technical analysis kind of dictates traditional technical analysis says that we mark a line on the chart that tells us where price is going to turn the problem is trying to predict exactly where price is going to turn it's a losing game however if we can identify an area or zone where prices are likely to turn we will have a higher probability of being correct in that area okay well our two lines we have our proximal and distal line so for looking at the current price of any security we're looking for an area where prices are likely to stop moving down and rise we're going to be looking what's called demand and that's where the buyers the demand for that particular security is much much higher than the potential supply and if the demand is higher than supply that's basic economics we know that we're likely to move to the upside as that strong demand chases weak supply now if you wanted to buy something there isn't a whole lot of it out there for instance you know when a new iPhone comes out or new gaming system a lot of people want to buy those because there's so much excitement about it there's huge demand and the company only ships out so many pieces of that product that means that there's going to be lying to people are willing to buy at a higher price but if there's a lot of supply it's going to be just the opposite there's too much supply nobody willing to buy kind of like what we saw in the housing markets many years ago then the prices are going to drop dramatically as the people who wish to sell and unload their supply must drop their prices aggressively in order to be able to attract the weak demand that happens to be around if there's any whatsoever so that's what we're going to be looking for in our charge and really just trade the same way that we do our purchasing or selling in real life whenever we would do in our own lives we should be doing the same thing when it comes to our securities especially we're dealing our seas so our proximal line is always going to be closest to whatever the current price is so if we're looking at a demand zone we're going to be looking at the proxy being closest to current price and the distant line being below that area the proximal for supply is gonna be closest to current price it'll be the bottom line easier said than done absolutely it is you know I always tell my students and then they sometimes get frustrated with this but I say that you know turning is very very simple but it's not easy there are simple rules we buy a demand we sell its supply the hard part is figuring out what are the highest quality turning points so the biggest advantage that we have in using these we obviously get a great opportunity high probabilities when it all comes down to we're not going to be right in the markets every single time but what we can do is look for high probability turning points for buying wholesale and selling retail okay that's why a lot of people shop at things like Costco or BJ's or Sam's Club is because you get to buy wholesale prices it doesn't matter they just happen to buy two years worth of toilet paper but you got a good price so we buy wholesale and we do that retail selling that's the high price that we want to sell and obviously also will give us a low-risk opportunity when we are trading where as I mentioned we're not going to be right all the time but what we need to do is make sure our losses are very very small in relationship to the potential for winning and we do this by entering in an area where if we are wrong we are proven wrong almost immediately and that would be by breaking a demand or supply zone also for getting in at wholesale prices and selling at retail prices we get to get a high reward and the key thing when it comes to any trading is that we don't want to trade based on emotion we want to be trading based on rules okay so we want to be establishing a foundation for rule based trading that's a key thing there so when we're looking for zones it's really just a three step process that we're going to be using in order to be able to find our trading opportunities and so we'll see what this is in order to identify a demand zone one of the key things were going to be looking for we start off always at the heart right edge so we're going to start off at our current price on our chart now from that current price we're going to look left and down until we find the origin of a strong rally in price now in my classes I talk a lot about this that what we need to see where a strong rally is not just a bunch of green candles perhaps and we do have that as a matter of fact right in through this area and you may be saying why isn't this an area of demand if we had this downward movement it paused and it started moving up and one of the first things I would recommend that you look at is the size of those candles the size of the candle tells me a lot about how strong price might be in a particular area right here we can see that we have relatively small candle that's starting off the bullish move a little bit more momentum and then finally we get the big candle just before we pause that's not what I want to see for demands oh one of the odds and the answers that I use in order to identify the proper area of demand is going to be how we leave the level we want to leave the levels with large green candles and or gaps now when we're dealing with forex obviously we don't have a whole lot of gaps because of the nature of currency trading it's almost 24 hours a day so when we're looking at this we're going to be looking primarily for what we see here the origin of an overall move and large candles leaving that area kicking off that momentum so once I found that demand zone what I will then do is draw out my proximal and distal lines and extend them forward this is going to give me the area where I will buy or sell should prices return to that area of demand so going out to a live chart I've got the euro dollar here we can start on any timeframe I'll start with the daily chart and to find my area demand I start at current price 3402 and work my way left and down for the origin of a strong move well zooming in here a little bit more there we go we can see that my last move to the upside really just kind of began from here and move to where we currently are and so if I'm looking for the origin of that move there's a lot of areas where prices that pause and rallied but the origin of the move is where I'm really going to be focusing I want to look back at the beginning of this move and see were there large candles coming out of that area I'll go ahead and put in a line across the bottom there let me just fix this for a moment I'm going to be using somebody else's computer so you never know what you're going to get go ahead and put those in black and thick line there we go so there would be my origin of the last thrust of the upside the top line or proximal line I'm going to put above the bodies of the basing candles so my sideways motion that I saw before the bullish pressure was all the way through here one two three four five six seven eight and the ninth candle we finally started moving to the upside so I always look from current price back and down for the origin of the move and look to see what happened there okay now tell any aside the question that telling you put it into the room if you want to all participants but he was asking you um you know is it just a return to the previous rally the answers gonna be yes I haven't gotten there yet but we will see that this is just a test of a prior area okay but the first thing I look for is start a current price look left and down until I find the origin of a strong move and that was the origin of this overall move we've had to the upside but the second thing I need to do is I need to make sure it's fresh and before I get there talking about fresh I also want to talk about the line placement for our demand zones or supply zones one of the things I want to see obviously once again it started current price look left and down for the origin of a move and I won't just arbitrarily draw the lines wherever I want I have to have rules I have to do rule-based training the more rule-based my training is the less emotion is going to be involved when I'm putting my money on the line so in this case so I just stepped on my microphone cord there for a moment so the in this case what I'm going to be looking for is to draw my lines I have two lines the proximal line is the one that gets a little bit subjective but shouldn't really be that subjective the proximal line will be drawn across the top of the bodies of the basing candles the distal line is going to be drawn below the low or in this case I use the wicks okay because that happen to be low but if there were no wicks yeah but just use the bottom of the bodies of the candles so whatever the lowest low is that's what I'm going to be drawing for my distal line in my area of demand the proximal line as I mentioned is going to go across the top of the bodies of the basin candles so going back to my example that just had that's why the lines were drawn exactly where they were I draw across the bottom of the wicks that was the low and the top of the basin candles before we started to move to the upside so this is my demand zone should prices return to that area somewhere in that zone is where I would expect them to reverse and move upwards so key things I'm focusing on here number one we just go and put this in number one oops sorry current price number to do look left and down for the start of a strong move so my overall move started way down here that's why I started at that point mark the distal and proximal lines okay and I have rules from that as I mentioned I'd use the low and the body the base and candles okay will this be the same buyers and made a rally the first place it could be absolutely and I'll explain that in just few moments why this demands own works okay now I also want to make sure a couple things number one with one of the odds and the answers now I want to make sure we have a strong move so I don't need to look for large green candles and we want a strong move we want a strong move because when we are forming an area of demand okay this is where does the drop is rally here this is the drop there's the base and there's the rally that's all that's what we're looking at we're looking at this particular move to the downside sumers my tool there it is drop base and obviously the rally right there okay so that would be the demand so now this is not going to be a quality demands that I'll explain why in just a few moments but the reason why we want to look for large green candles this is why demand zones work demands owns work because if you imagine there is an institution with large buy orders maybe they have a whole bunch of buy orders just sitting here they want to buy in this price level 129 okay there's a whole bunch of those orders remember this is built up demand lots of demand but if there's no supply here all these orders that are pending are they going to be able to get completely filled what do you think if there's a lot of people wanting to buy in this area but not many people wanting to sell a lot of these orders might get filled but the remainder of those orders are going to be left over so as you guys are saying no they're not going to get filled so some of them might we can remove some of these out of the equation but now if we were to come back to that area people who could not get filled here would likely try to buy when prices return to that zone you have to realize that a lot of these big institutions they're not concerned about chasing price you know they're not concerned about missing out on a move what they are concerned about is buying in a price that's too high okay we're selling in a price that's too low so they will be extremely patient and they will wait for minutes hours days even weeks until prices return back to an area where they can identify a high probability entry point they want to get an average cost I used to work in the the hedge fund level okay I read the hedge fund industry and when I worked in the hedge fund industry that's what we used to do we used to look to try to get an average price for our securities and if it took us some time we would just work the order we were patient and waited for prices to return to us until they could buy into those areas now they will care for fresh levels obviously they actually create the levels the institutions themselves will be the ones creating these levels because of all that pent up demand and no supply okay now I want to look for the large green candles because the faster leaves that area the more likely there will be leftover orders should we return to that once I get into a trade however or I'm sorry once I identify a level in this case okay I saw this drop base rally origin of a move what I need to do is make sure it is a fresh level as janati is met asking you know do they care if it's fresh or not fresh absolutely they do in a way because they want to make sure they're buying early and as soon as all their orders are filled there's not going to be any demand left in that area to hold up prices anymore it should have already except accelerated to the upside so the way I check to see if the zone is fresh is I simply look left so this is my area that I had identified as demand but by looking left was there an origin of a strong move in that area before the answer is yes right we look back right here and we can see this was an area of drop base rally once before and therefore is no longer a fresh level okay so that's that's why going forward I would not trade this level because it has been identified as a demand zone in the past I could take a look back even further remember I'm on a daily chart of the euro and look to see if that is even a fresh level at that point and you could argue that no this level was actually used once before also right here we have the drop base and rally out of this area but at the very least what would happen remember what I was talking about with the left over orders this is why supply and demand work so well if there is an institution that decided 129 or sorry in this case 128 yeah exactly that's why dumb money versus smart money right if an institution decided this area was a great opportunity for them to buy and we're on a daily chart they did have a little bit of time in order to be able to get the orders filled okay so some of these orders that were pent up here I'm just throwing in a bunch of blue arrows as a demand zone okay so these are a bunch of people who were trying to buy and obviously did okay because prices rose from this area the demand was stronger than the supply so we moved out that area did first of all did we leave the area with large screen candles yes of course but some of these orders may not have been filled they carried forward until prices came back to that area once again in the future and that's what allowed us to take the trade okay so this being the origin of the move here you can see that not only did we go into that area one left very powerfully but we also didn't go very deep into that level we only penetrated about half of that level with price on the retest so that shows us that it remembers a lot of buying pressure still left over that many of these orders couldn't be filled now the question came up what 8 days speaking be considered to be too much time at the level when originated it here we have a guess 1 2 3 4 5 6 and the 7th day we finally left ok yeah that may be a little long generally what I'm going to be looking for for a strong demand zone we go and edit there I typically want to see 4 candles or less for demand to be very very strong I don't want there to be a lot of time for people to get their orders filled if there's a lot of time for people to get the orders filled meaning we base for a while there's a lower opportunity for there to be leftover orders yes by the way ray this works on any timeframe it doesn't matter if you're trading on a daily chart as I'm looking at here if we're looking at a one minute chart a 5 minute chart a 4-hour chart I know that's popular Forex hourly charts it doesn't matter I typically want to see that we lived into that area and left very quickly it's as if I I've got a cup of tea right here next to me on the desk it's a paper a cup so when I grab onto that cup my tea I just poured it before it came in here it's very very hot I'm likely to let go of that tea very quickly the same thing if we come into a demand zone and there's no supply to hold us down in this area but there's a lot of pent-up demand we should leave the area very quickly the faster we leave that area and the less time you spend there the stronger that area of demand is going to be in the future so we can take this out to let's say that was a daily chart let's go to my 60 minute chart and now starting a current price looking back and down for the origin of a move we see our last move to the upside well that's not a fresh area our current move to the upside started right here and I'm getting that to answer that right now drew right here we look back and we see well now this as an origin of a move back here now I'm glad you asked a question because I'm answering those questions so right there we see that this was an area of demand previously and what I'm going to do is keep looking back to see if there's an area that's fresh wait a min ice ral here but that's a test of this area we had a nice rally here but that's a test of this area so I just keep going back and looking back and down until I find the origin of a strong move that has not been used here I've got this zone but once again that's already been tested here and that might have been a test of this so I just keep going back right there but we don't really have any strong demand zones for a while here on the euro do we on the hourly chart and right here we see that big move to the upside may've actually been attested this kind of bullish pressure I go back a little bit further and now I found this rally base rally and we see that we've gone sideways here and we were below this before I look back a little bit further and generally what I'm going to be doing when I'm looking back to see if it's a fresh zone I want to see the prices have treated through that area without caring about it before okay so I look back to see first of all prices came from below they did use this area but it has a turning point for supply not demand that's the origin of my most recent demand right now 131 if I kept going back to see if it's absolutely fresh it is because if I look back prices traded through that to the downside it didn't care about that area as demand back here it only cared about it here you're asking if this is too far back in time no it's not it's the only fresh area that I have on this particular time frame because you could argue that all these other areas of sub of demand have already been used what that means is that if I'm trading on this hourly chart I don't want to take any long position until I have a pullback to 130 225 doesn't mean I can't trade the euro it just means that on this particular timeframe that's where my strong demand is there may be other demand zones on different timeframes that we could possibly trade but what I'm seeing here is that I only want to take trades when I have a strong and fresh area of demand and in this case I look back and each one of these is a test of a prior rally point so there's nothing else that's really fresh here everywhere else I tried to draw the line you can see let's copy this line and here was a nice rally nope but that was a test of this here that was a rally we tested it right there this was a rally we already tested it right here that was a rally we tested right there and so on and so forth so I only want to take the highest probability opportunities if I don't find anything and I want to trade on a 60-minute chart of currency what could I do maybe change current season instead of looking at the euro dollar maybe I start looking at the pound dollar or the Aussie dollar or the dollar yen or the you know whatever maybe I could switch currency pairs I don't have to trade this particular pair so those are some of the key things I'm looking for for demand zone I'm going to be looking at the current price looked left and down for the start of a strong move mark out my lines okay Jimmy and I do want to see large green candles for candles or less and additionally make sure the zone is fresh okay not used before and the way I do that is I just simply look left until prices have already treated through that level okay if the first test consists of only small penetration by a wicket doesn't matter it's still a test as long as we have tested that area at least once I'm not going to use it it's a lower probability could you take it on the first time and possibly trade on the second yes absolutely you could but the probability remember what I said about our trades we buy a demand and sell it supply for several key reasons number one when was that we want oops escaped where'd that go said the sliders looking for here we are we want high probability low-risk high-reward the key thing is high probability right there because if we do take a second or third test yes it is a low-risk entry because we could still get out if we break that area of demand and still get high reward or right but it's a lower probability on the second or third test that's the key thing all right so the same thing for supply but yes exactly opposite if we're looking for supplies on here I could show you an example by the way of an actual trade the mistake and we have Britton and Tristan orphan Patel who are sold over for excellent Forex instructors and one of the trades we were looking at a while ago was on let's see what peri they're they're looking at the euro they actually did euro futures in this case and some of the students were looking at this opportunity where we had a drop based rally came into that area for demand that identified that as a fresh area of demand and obviously a really nice move to the upside that the traders road will take why would price channel and touch at a level for several days it could happen just because there's no interest in that particular security by the institution's anymore okay that's all now this is another example of a trade that a student took on a stock how they determine target for the trade I don't know exactly they I'd have to look at the chart and see it was an older chart so I don't know but it doesn't matter when news drives things news usually is an excuse for what was already likely going to happen and we've got big news coming out tomorrow in the United States we've got the Federal Reserve that is meaning for today and tomorrow and they're going to be announcing whether or not they're going to continue or start tapering off quantitative easing well obviously if they say they're going to start tapering off quantitative easing that may be weak for the US dollar although it may also be weak for the euro as well because the euro and the US equity markets have been moving in very similar direction so we could see what happens there but usually what will occur when we have news is that the news will simply drive price into an area of demand or supply as you see here back in 2010 we had bad news on British Petroleum I know this isn't forex but it works the same way in currencies as it does on equities or futures it really doesn't make much of a difference this student saw that move to the downside on the bad news right into an area of demand that we had identified in our extended learning track which is our online mentorship that we have for online training academy it's actually more of an apprenticeship or you know you're working with senior instructors and watching them trading and getting an information about some of the trades you're looking at taking so in this case it collapsed price that is BP collapse right into that area of strong demand was untested fresh demand zone had larger green candles leaving the area it was near the or origin of the move okay and yeah this was in reference to hire timeframe they were looking at a monthly chart we collapsed into that monthly demand zone and saw almost a doubling of price from $25 to $50 so the news doesn't matter as much as what's happening in our supply or demands don't looking at the actual technicals of the markets so to identify supply it's going to be very similar we're going to start off the current price but instead of looking left and down we're going to look left and up for the origin of a move it may say well Brandon why don't you just focus on this area we just said we had a nice little drop right there even a gap that's not the origin of the overall move the origin of the move is way up here and we have what is called identifying the curve I'm not going to go into them and reserve that for our classes but in our identification of the curve it tells us do we have a higher probability or lower probability of taking a trade based on where we are the overall trend now the longer you're in the trend the weaker that trend is likely to become because everybody wanted to buy probably already did when prices were very low in wholesale however when prices are very deep into a bullish trend the demand zones are a little bit weaker for the simple fact that they're higher they're more expensive institutions tend to try to buy wholesale not retail the dumb money as you guys were mentioning before that's the the amateurs they tend to chase price now they're worried about oh my gosh this is going up and I'm going to miss out on this great trade on the pound because it's already going up well you just have to be patient wait for it to come back to you so once again for the supply zones will draw proximal and distal lines just as we did with demand in order to draw these lines the distal line is easy once again you're going to draw that across the top of the wick or the high for the basic candles now it's easy the lower line people get a little confused on this one the lower line is going to be the proximal line and that will be drawn across the bodies of the basing camels before the selling pressure became very strong this is where there was an imbalance of lots of supply versus the demand so it pushed prices downward very quickly that's we're going to be drawing those lines all right so taking this out to our live charts sticking with the euro here on the one on the daily chart start a current price and be the same for supply look left and up and I'm going to be looking for large red candles so let me go ahead and do this I'll just write out the rules here there we go finding demand and over here we're finding supply then over here we're finding Nemo oh wait no that's another class nevermind my bad okay sorry I like to try to have fun in classes what can I say so if we're trying to find an area supply we're gonna go ahead and again it start a current price okay yeah rimshot yeah I'm a funny guy but looks aren't everything right okay so I'll going to look left and up to find the start of a strong move and let's go ahead and edit this so it doesn't run into each other there we go so edit we go number three mark the lines oops number four look for large red candles okay we want a strong move there as well and of course we would like to see four or less candles regardless of time frame okay and of course we want to make sure that own is fresh here we go so I start off at current price 31 10 okay which is the lowest timeframe for the zones to be tradable honestly you can do in a one minute charge but I wouldn't usually suggest anything lower than five minutes I've traded out a five minute charts with a lot of success that's usually what I look for so I started current price here 31 14 and just again start going left and up for the origin of a strong move we see right here there's a move downward that we're coming up towards the top of so this was my current price I look left and up for the origin that move and I see we've got there's the high we've got basing going on here before this drop well it didn't really drop much before we pull back and then drop finally again a little bit lower so I don't know to me this would not be a high quality area of supply really what I would like to see is as we had this basing which was relatively short maybe one two three four five candles and then the drop I would not want to see this little pause going on in here I rather would have liked to have seen something like this were just dropped away and moved away pretty good so I'm not going to consider that to be a strong level supply on this daily chart of the Euro and instead go back further to see above 37 was there a strong area of supply as you guess so your office your olives going in here sorry one of the guys offices I stole I'm actually in somebody else's office right now he just walked in for something so as I look back from that 137 level just go higher now I can see this is an area that might be a little bit better off as my supply zone and that is my rally base drop in this case I might actually I do this sometimes there's a very small basing like that it might actually use the open or beginning of that big red candle for that area it's really high yes but that means that on a daily chart if we're not near supply or demand on our daily chart should we be trading right now if we're in between fresh supply and fresh demand not really in any area we should already be participating in the trend on that timeframe if not there's a saying one of our instructors michelle boomerang she's a great futures trader a great futures instructor you may or may not know her but she always says don't diddle in the middle so if you're not at a supply zoner at a demands on you don't take any trade on that particular timeframe it doesn't mean that I couldn't find a trade on a weekly chart or a trade opportunity on a 4-hour chart or even a one-hour chart it's just that on this timeframe I'm not near a high quality supply or demand therefore I shouldn't take any trades that's all now I just need prices move to the zone itself to be honest with you that some of the best trades they don't even go into the zone they just touch the proximal line of the zones that's all so I don't necessarily need it to go deep into the zone I don't want it to I wanted to just barely touch the zone and rally out of that area so I need to be willing to jump in very quickly as we enter to the proximal line of either supply or demand okay so now I definitely don't need a deep move in whatsoever so let's go to another timeframe here maybe even though the security let's go ahead and switch over to well see I can do well I was saying five minute charts can work for trading opportunities let's take a look at the cable Here I am on the cable if I'm looking for a trading opportunity on the cable one of the things I might be able to do is start off first of all I would start off in a larger time frame then work my way down okay that's one of the things I always do because when we're trending in a particular direction for instance right now we are starting to trend a little bit to the upside here on the 5-minute chart since 9:00 a.m. we have lows higher lows we're starting to move up a little bit more okay and because we're starting to push to the upside a little bit we may be able to break through some of these supplies owns on the smaller timeframes that's in a way where if I'm walking around this room there's a chair my way I can push the chair out of my way because I have momentum that will carry me past that area of supply but what I'm not going to be able to get through is the wall that's too strong it's going to I'm going to bounce off that area so the walls are for price are the supply and demand zones from higher time frames so I use that as kind of a starting point for where I can enter into the trend I'm going to enter into whatever dominant trend I'm trading in it will save the trend discussion for another topic or another time frame but if we're starting in now a bullish trend the reason why I say we're starting this bullish trend we're starting to make some new higher lows and even some higher highs that's part of it right there any kind of a trendline that I would have tried to draw downward is getting broken already so that means that we're likely to continue to break through supply zones on this time frame how do I know that we're also in a bullish trend take a look at the last little area right there where we had a collapse now this was not the strongest of supply zones was it right right there we have rally base and then we started to move down red candle is not the biggest of red candles but what happened when price got there we were able to break right through the reason why we're becoming more bullish so what I need to do now is figure out where are we likely to stop well will likely stop near the origin of the big move down or supply for the larger time frame or both so there's my basing good sized red candle and that move continued for quite some time that's the higher-quality supply zone for me to be able to trade right now on this timeframe because we are seeing that supply is not really holding until we get up to this area I'm going to be looking for pullbacks two areas of demand in order to buy oh yeah well see what happens and like I said maybe I'll use this for my next month's webinar with you guys identifying trend number one I always look for trend first what trend does I want to trade in the direction of the trend now the supply and demand tell us where to enter or exit the trend like I said I'm in New York City right now and if I go downstairs I'm right above the the four six okay that's the four train the six train that's the nearest subway station to me on your Wall Street and if I decide I want to go uptown okay I can take the six all the way up Lex and if I take the six train I don't just jump on board in the middle of the tunnel as I mentioned Wall Street Station is literally just underneath my feet I'm going to take get on board the number six to go uptown by getting on board at the station if I know we're in a bullish trend and moving up I'm going to get on board this trend by buying it a strong level of demand using just what I taught you I'm going to exit when we reach a strong level of supply name picking a demand zone would be dangerous if it changes from longer short well remember why would trend change from long to short it would only change if we hit the wall the higher time frame supply zone so the right now let's take a look at this as an example we have this move to the downside that's been occurring on the cable we turn it around around 155 60 that's actually 155 70 is this area why do we start turning around in this area well what would happen is that we would go to a larger time frame perhaps a 30-minute chart and looking at the 30-minute chart why would we have turned around there take a look there's demand there right you can see this is my area of demand from the 30-minute chart right there drop base rally we stopped just shy of that and that's what caused our five-minute trend to turn around from short to long that's why I'm always going to be looking at multiple time frames if you go back to one of my old recordings here from FX Street I actually did a session on multiple time frame analysis and how to find out those turning points and so that's a key thing that I look for so by looking at my smaller time frame again on the cable here in the 5-minute chart I'm going to be looking for buying opportunities at areas of demand so I look to see where did we last come from we have nice move to the upside we based and have that strong rally right there well maybe that's going to be my entry point for a long until we reach that 156 80 as my potential target here we go what do I do now just sit back and relax and wait for prices reach my area demand and then trade according to my trading rules that's it can't find multiple time for training in FX Street I know I did it a while ago and I'm not sure if there was a problem with the recording but if I if I need to I'll do it again that's not a problem whatsoever definitely do it again lessons from the pros article who provides good point figure charts for Forex it depends I don't know mt4 I'm sure probably has a version you can go through FX cm yeah you can usually do search on my page with my webinars I've done but I know tradestation which I'm using right now for my charting actually does allow me to do point figure charting I believe it's under either format symbol now right there point figure for those are you're wondering what I'm talking about on our website training academy com we actually have our lessons from the pros they can go into it's under resources so you would go to training academy comm you go to resources and then there's lessons from the pros and you can read a lot of the articles that are right there and the most recent one I was writing about was the point figure charting actually did it for the india articles because i also write for india as well as the US equity it's but it gives you a different way of perspective on price and can work for almost any security as well so but that'll be a discussion for another webinar boy I've got a lot of topics here that can go ahead and come up with for the next several webinars with you guys but unfortunately I have to go that's the end of my time with you guys today I can go ahead and keep up with me at training can be calm as I showed you that you can also keep up with me if you want to by my Twitter handle it is trader bdub at Twitter and now I'm going to try to update that a little bit more than I have been in the past why do I do the Indian markets because I was over in India for about a year and a half helping to set up the online training academy franchise over there and I was working with the Bombay and the National Stock Exchange's so I have a really good understanding of the Indian markets over there really loved it over there too had a lot of good time webinars on the 14th and 23rd April of March okay there you go so those be the ones all right well you guys take care of trade safe and trade well and hopefully I'll see you very very soon in a upcoming webinar like I said we've got great topics to be able to go over here and let me know if you have any questions you can send an email into epic Street no forwarded to me so I can answer it for you and until next time I'll see you soon

Channel: FXStreet

Views: 241,699

Rating: 4.9210067 out of 5

Keywords: Forex

Id: sxYcGsAUkIE

Length: 45min 59sec (2759 seconds)

Published: Tue Jan 12 2016