Brandon Wendell, CMT: Intraday Trading Tactics for The Forex Trader

anyway um my background I'm a full-time trader I trade Forex obviously that's why I'm here but I also tree futures quite a bit as buzz spreaded both as a student and online training academy back in 1998 and from that time on I learned how to trade through the courses at on LAN Trading Academy but may have seen a lot of the webinars from Sam slidin right here on FX Street I work with him and also learned quite a bit from him as well and I've continued my education I became a chartered market technician which means that I've got a lot of Education in the in the market so as far as technical analysis the interesting thing is that I don't use a lot of what I learned in the CMP I want my training relatively simple well there we go six from video or if though I should do a video there you go now I can see you can see what it look like here got my webcam on the screen anyway um be sure to smile it's all alright anyway I've continuing education I'm just what I look over I'm looking I've got a couple monitors here so I can see your chats as well I probably look much better with the video off right anyway um so what I've done is a continuing on my education I became a charter market technician so I've got a lot of information about how the markets work and a lot of technical analysis but when it comes down to my actual trading I want to keep it relatively simple and I'm primarily an intraday trader for my income I do have some longer-term accounts in which I'm doing some longer-term trades and generally I'd like to do the long-term trade with the current markets because if you the currency market stall you know that what happens is that the currency markets go into long term turns and that gives us a great opportunity if where you are get some investing opportunities in the markets I have again a new trigger to pen well we'll take a look you know that's one of the things I just look to see what's available to me as a short-term interrater I do run some screens from time to time and what you'll notice first of all as far as my intraday trading I'm always looking at multiple timeframes no matter what it is that I'm trading so if you take a look my screen first you'll see I've got my perspective time frame which right now we're looking at the euro dollar 1:02 is adjust this a little bit and it doesn't really matter which platform I'm trading on in this case I'm using TradeStation today but I do use yeah these are short term charts will do the access a little bit bigger as well so it's t-those and my status I'm going to clean this up a bit there we go now you can see I'm looking at the euro dollar or 30 minute chart and the reason why I'm looking at a broad perspective for to two main reasons number one and this is what I call my perspective timeframe solution to this perspective time frame and the reason why I have a perfected time frame first of all I want to know what is my overall trend okay as a trade are typically trade in the direction of the dominant trend unless I see an opportunity where the trend is going to reverse and the trend is typically going to reverse when it hits a major barrier such as a what we call supply or domains own from a larger time frame so I'm not going to go too much into TTIP about what a supplier Amann zone is I will leave it back to Sam side and some of his webinars or maybe some of the webinars that I do in the future as well talk about how to identify some of these opportunities with higher probability this is really what I teach in my classes how to find the highest probable turning points for the markets but I look at the overall trend on this frame and I want to trade with that dominant trend secondly I want to identify what we call supply and demand zones and the reason why we identify those zones that's obviously where I want to buy and sell so the trend tells me the direction I should be focusing on now when I look at an overall trend and I want to identify what trend of trading it currently I'm going to go ahead and look at a minimum of 200 candles that prevents me from looking too closely to present focusing on a trend it may be a short term rather than long term so right now if I just looked at the current trend from this morning on the Euro we see it's a big move to the upside however when I take a step back and look at a minimum of 200 candles which I could zoom out here I can see that that is just a small all movements in an overall downtrend okay how did this multi charts fit into wall time transactions don't go into that in a minute okay I'll talk about that in a little bit really they don't have any font any function for me on the long term transactions okay what I'm focusing on here is my intraday or income type of trade okay and when I look at the larger type frames excuse me what I'm going to be doing is using longer typing charts an ordeal to do that so my perspective time frame gives me the direction should be trading in and also tells me the big barriers that I might have while I'm looking at intraday trades so right now if I take a look at this we have an area where prices cut base click that too soon just to do this do I see double bottoms you know what I don't like trading pops double tops double bottoms anymore because well by the time you recognize a lot of these patterns either they fail or it's too late to trade them so I'm actually going to be focusing more on what we call supply and demand trading rather than trying to focus on heads and shoulders double tops or bottom so I'm ed I take a look at that on a one-hour time frame a little bit later but I want to focus on what I wanted to discuss your read it just simply picking out trades okay I'm gonna be talking about technique and if I see some trade opportunities and I'll go ahead and do that but I just want to expose you to some ways that I actually trade and what I use to find opportunities for instance this morning I'm actually in Philadelphia area right now I lived San Diego California but in Philadelphia I'm teaching a class on trading and I was able to take a trade in the the queues because we're focusing on stocks and Ashley was able to exit at the low of the day I closed out my trade literally at the lowest point of the day because I'd identified the bright turning points trading on these techniques of measuring now look at this this is a narrative I would look at as and we have equilibrium buyers and sellers noted by the small red and green candles but obviously the selling pressure one is we had that huge move to the downside afterwards so if we get back up to that area this will likely be a lot of selling pressure for those who could not get in originally on that move down while you look up see an area like that a little bit higher this is not going to interest me for selling partially because it's very high up we'd have to go through this lower area first but secondly looking back that was simply the first time back to an area of supply a little bit off - Greer there it is I was actually my first time back in a retest of this area as supply so I only want to take the first time to an area and I'm what I'm doing in this time frame this perspective perspective time frame is really just getting an idea of where prices are likely to go while looking for intraday traders today and looking back they don't do anything below where we currently are so I'll mark off the origin of our overall move upwards and that's going to be my area that I call demand and right now it's kind of like the room that I'm sitting in and what about the zone about one point three three zero two of this little area right there that is also zone I it really has wrong mood aware that it's it was able to be exactly a limb on top of level that's something that if you've been of all the law attorney can use as we're off the answers as well so there are two supply zones right there which means that what do you think is going to happen with the euro if we try to get back up to that area to be easy to through that or you think it's going to be met with a lot of selling pressure exactly herb does be hard to get through that area there's gonna be lots of selling pressure Lucas that's absolutely not sure yeah that's what we're going to be seeing if we get back up to that area so I'm going to be seeing right now on the short term we're probably very bullish but I'm going to be setting myself up for an opportunity to look for shorts if we come up towards this larger time frame area of supply well those furs are moved downside there are some pauses as we come back down there's pause right here on the way up and a pause right here on the way up but that's not going to concern me too much because the origin of the overall move or what we call the curve originated from down here at 129 there so going to be intraday opportunity this afternoon perhaps too short once we get up to about 130 on miss for my frame so go to my training time frame which you see here I'd be using a five minute time frame let me format this we can see the text a little bit bigger as well this is one of the key things I always want to make sure I'm looking at multiple time frames so I want it font that way I'm not surprised okay and this one looks smaller there we go this one a little bigger sorry I should have to set up a time in class earlier there we go yes my target may be the demands oh no for my step request hey Chris okay so looking at this now in a smaller time frame what you'll see is that this is what I call my trading time frame and I like five minute chart for my trading time frame partially because the size of the supply-demand zones are manageable for intraday trades I will still look for anything from a about 40 to 60 pips on a move but I don't want to risk too much I usually want to maintain it three to one reward risk ratio as far as the indicators I am here I'll go over some of these a little bit later I'm going to disable this one for right now okay and why is actly christie this is good one will I sell those errors talk about that the reason why I'm using this particular time frame this is what I call my trading time frame okay and with my trading time frame it could be whatever you select ok I'm using five minutes for my instance the reason why when I'm looking at these supply demand zones the relatively small and that has been very little risk in comparison potential reward that I could take and because I'm an intraday trader I don't want to be stuck in phrase for many many hours I typically want to make my twenty to sixty I'm sorry forty to sixty peps within an hour or two and then walk away a note of cash to just leave it at that so for my trading time frame once again I'm good with trend but if you notice my trend currently is up and on the big picture is still down but right now it should be opposing that it should be an install up thread because I need to be able to move up to strong areas of supply for me to sell so overall number one I look for the trend number two I look for supply and mand okay number three I'm going to manage my trade I'm going to manage my trade this timeframe and what I mean by manage the trade number one but this is a I'm going to find my stop number two or B should say I'm going to find my entry and number three or C in this case I am going to find my target okay what do I mean by supplying band well like I said this kind of outside the scope of what I'm going to talk about today but you may know these as support and resistance levels okay but when it comes down to supported resistance the traditional definition of support or resistance is simply an area where prices have turned in the past or if you look at some of the Phoenicians that you get from the technicians out there they say it's an area that prices have had difficulty moving up above in the past well the problem with that is you could call this an area of resistance this is area of resistance were prices obviously right here try to move up and they started coming back down but according to definition that the traditional definition of supplying it and every time you come to that area right there turned down it worked right here we turned down again it worked but what's happened now you try to take a trade there again you're going to lose money we're going to likely push right through this level at ups at one-thirty level the reason why every time you come well let's put it this way if you're in you watch the ocean okay every time the ocean comes up and hits the beach it removes some of the sand it makes that area weaker so for people to say every time it comes up here it's going to make this area of resistance stronger that's ridiculous it actually weakens it because what is doing is removing the selling pressure that initially calls this move to the downside third time's not the barb in this case no honestly usually what'll happen is I only take trade on first time back to an area where I saw that there was an imbalance between buyers and sellers and the sellers revert strong okay so to me supply and demand is actually a little bit different than support resistance you can see just as I'm talking there's that breakup I said was likely to happen okay don't trade the breakouts either but do I find that the five minutes too noisy no actually I don't I really don't I find that if there's an opportunity there I'm not worried about every little turn in the market what I'm looking for the strong powerful moves that originate in overall trend direction so looking at this from a bigger picture when I'm trying to find my stop entry target to trade here what I'm going to be doing is looking at my larger time frame and we've got that 1:30 what is my actual level I'll just go ahead and do this got trendline labels actually label that African for me go hmm for about 129 98 to 130 13 okay that's the first area of supply that I'm looking at 30 minute chart were likely to reverse I go into my smaller time frame and now I can fine-tune my entry based on that I know that there's likely to be supply in that area I'm going to disable these these pivot points I don't really need those either right now it's just some assistance I get sometimes in looking at price so what I'm going to look for is a supply zone or an area where there is balance between buyers and sellers but then I saw a big movement of supply or big movement of selling pressure that pushed us away from that area and this is it right here this is what we're looking for it's got to be a big move down all very close to the origination up Stan word Trent I wouldn't take this as a selling opportunity down here reason why with the DL will move from the high right here around 130 60 to the lows right here at about 129 40 this is too low in the overall move it's got a lot of risk as a matter of fact if it tried to sell on the first move away from that I barely moved down four pips I'm looking for a pretty significant move something like this where you can see we move down from chits over 130 down into 1:29 so that's almost 100 tips there is this a test of a previous level the question comes up well to me I'm looking back as soon as I draw up this line C is in an area that's been used before in this case we had a little bit of an paused but we did have a very significant move away so I'm going to plan my trades the fact that this area of supply that I'm noting right now is also an area supply from the larger time frame it gives me more about confident in taking that particular trait as I know it's not only a big origin of selling candle here but it's also as I mentioned this area of ply which once again is very close to the tire cluster should say very close closer to the top of the overall move down so that is not only on my five-minute ordinary supply but it's also my area of supply my 30-minute chart so I do have a higher probability of this one working out now this primer I do want to make a note on this over that respect timeframe that should be basically the trading time frame multiplied by either four five or six okay I don't want to go from a small timeframe and jump to a very large timeframe so what I did was I took my five-minute chart which is when I'm trading on and I then multiply it by 6 in this case and I've got a 30-minute chart for my perspective now I don't really watch the one or two minute chart for my a time frame okay and on this time frame I'm not trading here I'm going to trade my five-minute chart so I'm going to manage my trip for your mines table entry and target on this time frame so I go in once again I'll put in my trendline labels make sure they're there so I can see my price levels and I'll do background dragon so I can pull this back here a little bit there we go if I'm setting up a trade right now we're in an overall uptrend but because the larger time frame supply is in this area I'm expecting to turn around in this area and I'm going to put in a short order or several we're not shorting in for X but we're gonna sell now my target could be an origin of a strong move on this iframe but I usually do multiple targets so I'm going to put in one target here and what I look for is the origin of a strong move not just every little turning point but in this case we see that towards the bottom of this overall uptrend I can put in my order to target that origin of a very powerful bullish move because there's likely to be some leftover buy orders when we come back there we list the area very quickly which means anybody who wanted to buy didn't get a chance to buy there only a few people did so I'm going to wait for it to come back to that opportunity and then buy the next area would probably be looks like the origin of this overall move down here the one 2925 area so could I put in a limit order for this yes absolutely depending on how high this ranks might raise I could put in an order for that right away but for do my order bar are just going to pull this off here real quick and I could put in able to do for a santur lot I'm ready to put in the order yet because I need to take a look to see what's happening not just on this timeframe but also my larger timeframe because I'm using multiple timeframes will typically target my first area for exit on the small timeframe but my second target would be the larger time frame so that's 129 25 while my first target is what's this level refresh rent sugar now Thank You Chrissy 1.8 945 so I've got two targets okay so first are going to be the origin of a strong buying pressure here and then my second target would be the larger time frame demand stone as I mentioned that was the 129 25 so to prove my order could I put it as limit or yes okay my supply zones also line up at the average daily range and that's usually what will happen absolutely because gamers daily range gives you an idea of how much momentum and friend may have before it dies off so I could put in this order as an O CO order it'd be a an OC order cell order or one cancels other see here we go and I can put in my limit order to sell at one-30 now let's see that's zero eight and I believe I'm on the ask so I'll go ahead and put it in a little bit below that just to get in so maybe zero six oops I have to fix this it's not set up right now for 4x is it bear with me for a moment I didn't have the setup anyway you can see the type of order we could do that as an odd name would be necessary to correlate with us tolerant dishonestly US Dollar Index should have the same sort of levels of demand as I'm seeing here on the supply since 58% of the index is made up by the Euro anyway so I'm not really too worried about that okay but what I would do for my orders I was just showing you real quick I'm not gonna just from the decimals at this point but I can do this on any platform okay I'm just having to use this platform today but right there is where I put my limit order I put in my target here for my first target and my stop right there you can also do multiple stuff I wanted to multiple target that allows me to do that yeah if the US Dollars near demand zone that we should be seeing the Euro during play zone the opposites now the question was do I wait for confirmation for my trade if you notice I still have enough time from here the other time frame I would use inside of that area of supply we've already identified that supply one 3008 to thirty thirteen and go down in my 1-minute chart put in a line there 3000 eight we are two thirty thirteen and when I put in there we go justify the zone but I look for if I need condemnation what I will do is go down to this one minute timeframe as prices move into that area of supply I drill down the smaller time frame and I look for some sort of a there its price paratus I look for some sort of confirmation inside that zone so this is where I can actually read candles so this is what I call my entry timeframe now if I'm doing the limit order where I'm setting the order ahead of time forgetting about it then I don't have to do this but if I'm waiting for it to watch and see the bear pressure come into the markets I will actually drill down to this timeframe and look for a candle formation that tells me to enter what I mean by that I don't necessarily look at rami or some sort of bullish or bearish hammer drat you know dragonfly or shooting star things like that I don't care about that it's actually only three things I really need to focus on four altogether really number one I want to look at the color of the camp bowls because if I see mostly the green candles we're pretty bullish trend if you notice when we start to pause like we are right now we get a mix of red and green candles that gives me a little bit I have an idea as to how the trend is either continuing because if it's most Green is so very bullish or if these artsy Renick remix it shows me a trend might be changing this may be your entry you're looking for number two shape you don't need to memorize names of candles if you see topping tails bottom tails that tells you a lot about what's going on in price you can see on this candle over here let me just do this this candle it was created it's a green candle but there's a big topping tail and that was a warning sign that there's bearish pressure coming in just before turn down conversely take a look at the bullish candle here and right there you had bullish pressure and that was a warning sign before the prices took off so I see that in an area of supplier demand where I'm looking to take my entry that's some of the confirmation of looking for we also a size okay and one of things I can refer you to and I know that some of my lessons from the pros orbs are also a pollution fx3 if you take a look for some of my articles you can google me aura or look at the treating county website it some do this you go out to training academy calm you can go to the out blesses with the pros and I read a lot of articles actually write two per week and one of the articles I wrote about was called tale of the tales where talks about the color shape size and location so one of the ones like probably just bring it out I guess slower browser opened hopefully that runs pretty quickly let's soul in yeah good so if you go over the drinking website this is where I teach and you have the lessons with the pros aren't the resources so I'll just go in real quick and do a search and one of them is just put in the word pale if they're tail of the tail seem to go ahead and see the glasses with a prose article this book from June 26 2012 absolute about right action and there's an Esso guy right there anyway talks about how you can read some of the price and how you can use that to help you identify trend changes okay yeah and the other one I wanted to point out was I believe it's called I was that ladders flagpole sorry about that is like whole yeah that's one enough before but the other one is right here climbing a flagpole for February 15 2011 and on this one I was talking about how do you identify with any emma jumping anywhere prices are likely to turn so what happens is that this is referring to the size of the candle so I'm go too much in depth into the article that's Sam Sidon yeah I got a better smile Sam signs there too in these articles anyway so looking at the sizes again looking gave me a warning sign in when prices are going to turn around as well and the last thing which is the most important is going to be location okay so looking at location words I mean is it at a supply or demand zone so all kinds of indicators I'm looking at to give me an idea of how price is going to react so my entry timeframe as they come into that area if didn't already put in a limit order to enter or exit at that level this is where I'm going to compare and fine-tune my entry by seeing some sort of candle formation telling me to get in ok I'm saying before the process obviously there's a lot more - otherwise it would be teaching a an overall class on this but you can see we're coming into that area right now on my 30 minute charge that's telling me to expect a reversal soon we haven't quite reached my area of supply yet that I want to sell so I'm not taking the trade yet on the 5 minute chart and if I want to if I'm watching yes I would watch the one-minute chart and take my entry but I can do the same thing I'm going to take a look at a Stu another pair usd/jpy you go to the dollar yen and I can go out to a daily chart here or even not something to go that big will go to 240 the same thing would do occur if I'm looking at a 240 minute chart here I could look at a daily chart and then I may even drill down into a 16-8 chart I could do the same type of training here I would look at the long-term trend look for the overall supply demand zones trade in the drawer so the trend during Corrections induce supply or demand oh my 240 and then drill down into the 60-minute chart if I needed time my entries so the time I get my higher probabilities for true that's all well there's two levels of supply on top of each other yes a higher probability you we want to place your stop outside of the upper-level said low-level sold about new so thirty minute you can see that on the Euro traditionally you'll probably move deeply into the first level depending on how much basing you add these are all things that we call us an answer cell let's identify the best opportunities in the crate so anyway the point I was making by going to those timeframes doesn't matter what I'm trading or timeframe I always use a minimum two if not three time frames to trigger my entry to find my entries so once I'm in the trade though if it was using this one-minute chart like right now we're coming into a 30 minute supply we haven't hit my entry point yet the euro dollar on the five minute chart as you can see on the five minute here just below that area so I'm not entering it on the one-minute we are getting some confirmation of Irish pressure aren't we you can read candle the topping tail the selling pressure we are starting to move down but I'm not ready to trade this yet I'm waiting for my opportunity what about one hour 15 minutes five is one minute see the problem is 15 minutes I would actually use three minute to time the entry 15 minutes of one hour is fine because in that case you're still doing a multiple of four or five or six and we want to use multiples of four five or six I got that from dr. Alexander elder read his book grating for living many many years ago and I've always gone through pretty much my modified triple screen to be able to find trading opportunities so that's what a couple things that I'm looking at yeah you're slipping down but I don't think it's done is roll up returned yet it is hitting that 30-minute supply zone but we may so build it and not one more thrust to be able to get me into that trade I'm so waiting for it now going into the five-minute chart one of the other reasons why I look at this small timeframe okay which become by recommending yeah you know I'm not really recommending any of those particular books I read trading for a living that was the first book I read I said to become a trader I think he wrote in 1993 I started trading in 1998 but the main thing I took away from that book was to make sure I look at multiple time frames obviously online trading companies when I recommend not you know you can only learn so much for book the main benefit that you're going to be getting is working with someone who is trading in markets for a living I'll teach part-time because I trade full time so I'm doing a class this week and next week and then I'm off for about three or four weeks while I'm going to be triggered and then I'll teach another class is like a board I only spend about two hours a day trading I trade in the mornings generally near the open of the New York session and if I want to trade a little bit more in the afternoon sometimes I'll trade some of the end pairs I live in California so about 5 to 7 a.m. Cal for tea time and that's where the opening of the markets now as far as books up banks no I don't know I'm beloved in India traders so I should say that as far as the multiples here instead of taking my trading time frame multiplying by a four five six it's actually multiplied by char pawnch J right so what it is a little bit of Hindi for you now as far as outside reading I don't necessarily recommend any okay so what I'm looking for is as we approve this flyzone I do want to keep in mind a couple of things they learn for some bankers well one of the main things I've learned from one of the bankers is that use a on the fire and a chart okay and you can change your time frame to I'm gonna go ahead and enable my moving average tours that is this one yep if you notice this particular moving average and I'll go ahead and adjust up this USD well it's what strategy I'm using here so stretch there we go yeah oops there it is moving average exponential 60 period okay yeah I would say don't you don't really need read anything what you need to do is see it time live okay I did a charter market technician I'm not CT yet but anyway what I look for is this is a 300 minute exponential moving average and so if I'm going to five-minute chart obviously it's a sixty period EMA on a five minute chart talking to many bankers I really banking to traders for major banking houses one of the things I found is that many of these powerful moves originate right at that moving average notice loan euro right there and generally unless you hit a major barrier such as supply or demand that trend is going to continue in a particular direction and use that area as a Saran board you can see we had a little bit of a pause here continued lower on the Reitsma so that secured moving average that's where you saw the fast movement away once again when we change trend forcing that happen we started to pause in that area once after the pause we moved away and came back to the sixth period moving average not only was it an area where we saw that bouncing there was areas of buying pressure here little pockets of buying pressure that supported the banking buying in that area but every time going back here once more you can see we were trending downward stumbled in the air the 60 moved away came back to it and started explosive move it doesn't matter what chart you're looking at we can go out to I'll see Penn and yen talk about currency Ward right is there one you used 50 100 200 because that's what some books that's the problem right there I mean Roger just said don't look at the books because if ever uses what's in the books but good are those books anybody been a trading book would automatically just say okay great I can read this training book and make millions of dollars that doesn't happen what happens is you got to learn what the traders are really using not what people are putting your books it's part of the reason why I haven't written a book yet I guess right well that lazy I'll be honest with you but looking here once again when you see that we've got a little bit of stumbling going on yeah we just crossed over the 60 pure movie after that something is done we move wake back right there and not only to come back to 60 I also came back to the origin of symbol to bullish pressure that was your spring or in your opportunity for a loan and lots of opportunity I'll trade whatever honestly update whatever I can find that gives me an opportunity once again here's your sideways movement moved away came back up to the 60 period moving average on the five-minute chart and a nice little spring off that so obviously when it's made when the markets are most active but I'm usually going to look for this trade opportunity near the beginning of sessions or during the active trading night and the active trading times are obviously going to be the beginning of New York the bidding beginning of Tokyo and the beginning of Europe and London so to talk about the ATM to about 10 or 11 a.m. for each of those timeframes and that's where the most tip most active is yes it would be a 20-period moving average on a 15-minute art so if I change my timeframe I can even go to a 30-minute chart and do a 10 period exponential moving average it's the justice can't really go much lower than that though but 10 period moving average notice where many of these big moves are originally and here we broke through that area came back up tested that 10 period moving average okay and that's where the best opportunity was if you miss the beginning of the move this is a way of joining trend after it has already changed and direction here we have a trend change we've stumbled at the area of the 60 . boobie I'm sorry this is a 10 period moving average now on a's 3rd minute chart rallied up pullback that opportunity is right there where we spring off of that okay what do we need a moving average it just tells me where someone made a basically buy or sell you can't really do this on a 60-minute chart because you're looking at 300 minute moving average but it's something that yeah exactly as George is asking it maybe it's a good opportunity add to your winning trade if I've already bought in because I saw an area of demand or supply and I see that we've run through this experience re 300 minute moving average stop a little bit booed above come back that's an opportunity for me to add to winning position or join the trend if it's one that I wasn't able to get into originally I like trading on the end in the European session so actually more or less in the Asian section it actually is very very volatile okay so if you don't like the volatility the pound again obviously the euro yen is one that I could use that is a little what's volatile okay no when a trading the question when I move my stops if I'm training multiple patterns I'll go back to my five-minute here because I'm a traditional trading on a five minute timeframe identify my applying demand on the bigger time for a miracle better euro USD we're having notes okay and when I go to my trading time frame this five minute chart I'm going to manage my treat there and that's where I'm going to put my stops as well put this back to 60 we are that is a 300 minute moving average so in the trade that I'm looking at right now there is no moving average I use for a one one hour well I'm not just an intraday trader Lucca I trade on multiple timeframes okay but for the most part for my income yes I trade on five minute charts and look at 30 minute charge for my longer-term perspective when I'm looking my investment portfolio on trade Forex as well and I will actually put in trades on daily or weekly charts and I just hold them longer-term okay um RSI no I don't use 70/30 okay yes set a moving average Edwards asking I use a moving era equates to the 300 minute moving average absolutely so on a 5-minute chart is 60 periods on a 15-minute chart of 20 periods on a 30 minute chart it would be ten periods that can't really go higher at my time frame ladies for this this was given to me by a trader who worked for major institutional banking firm who did forex trading okay I traditionally do my own portfolio you're tracking and journaling using Microsoft Excel spreadsheet it's been similar 1/2 or we gave out to our students online training academy ok so once again looking in trend see that we're coming up to the supply zone you can see we're starting to stumble a little bit this implies bone what I look for on my treating timeframe I'm going to look for that supply zone that I marked off and you have to go back here a little bit there it is that's a play area I'm not ready celli yeah it's not a supply and you can see that even on my five-minute chart if I were to sit L right where we are notice we've got red entry candles but we haven't really broken down yet the markets are not ready to break down ok once we get to my air supply that's when I'll go to my smallest timeframe and as you can see it on the most timeframe and marked off that five minutes lies own and I will look for the reason to go short in that area ok it's possible to form another supplies I'm sure it can be yeah I worry mostly about the arrival on my trading time frame it's what I'm looking at my tray opportunity I'm going to focus primarily on the trading time frame that's where I'm going to enter that's where I'm sitting stop and aunt Jim earlier where do I place my stop only a few pips above this area of supply now it depends on what I'm starting right now I believe I'm charting the it and that's what this defaults to so if I did EURUSD dot a I think it is now it's going to be a chart with the ask price so what I could do years cuz I'm I'm buying to cover my prime position I would actually make sure that I include the spread and perhaps I'd the supplies zone you always have to make sure you do this correctly but I only put my stop based on the bid price I saw something too tight and I'm not because I'm wrong but just because price took me out on that spread so I entered to a big chart ok right there I was ten percent a month a realist never yeah I tried to get tempers one percent a day rather turn on the money no I'm what I'm trying to get on an individual prick awesome yeah what I'm trying to get on the individual trade is anywhere from 40 to 60 pips right so depending on how much I have to put in for the capital obviously 2000 for a contract for one lot well if I can make you know 400 to 600 dollars I do a couple trades in the day I'm already making my one percent so here we are moving or supplies up very quickly right now so if I were taking this trade I'm putting in the trade when I stopped bought that supply if I need the confirmation for the trade I'll go back to my bid chart here just back to EU or USD that's ready to move it in okay now I look as we're coming into that area do I see a reason to go short round we do see a little bit of selling pressure for coming into that area we came in very quickly we're likely to turn around from the zone I really want confirmation I'd wait for it to trade into the zone and look for some sort of a weak candle in there so as far as how much how much pressure I give it or how many pips above only a couple pips above the top of my zone just Smee if it if it breaks about the supply zone even by a little bit there's no reason for me to be still beating the trade because the definition of a downtrend is that I should have overall lower highs and lower lows if I start to make higher highs when we break above this lies own I shouldn't be in the trade name okay uh I always make sure that if I have an opportunity to get out of my trade it's going to offer me at least a three to one reward to Rooms ratio that's one of the thing I'm really looking for and again said in this case right now we're well above that six secured moving average so there's no reason for institutions to be buying here there's an opportunity for us to be able to short and I think I might be missing this opportunity load my short timeframe notice what's happening here we're getting topping tails topic tails toffee tails up there we go moving a little bit more into the zone and I'll wait to see if this pressure turns around I would take the trade however what's up in the trade I would then turn around set my stops based on my five-minute chart is this where I'm managing my trade on the five and I put in my stop they're my targets as well as putting in my trails up addressing those as well to read the background news I don't care used affecting me really what happens with news is becomes an excuse for what was already going to happen in the trend so if I'm looking for an opportunity here I'm watching this we're starting to see a red candle formula see if it starts to stall out or trend so I can wait for my entry here I'll just give it a minute and it will have a bearish Campbell now the only thing I do with data released maybe I can do this on an invert and other WebEx because I do have a lot more I can share with you guys obviously but economic news or data releases I can actually trade those based on my supply and demand but just take bandage those boobs okay we are I'm going to go ahead sell and I just got filled on one light we're going fold here I can sketch up this I got filled at one three zero zero seven and so I caught that sleeve in the area now what I'm going to do to set my stop as I mentioned I could go back in my trading time frame that's where I'm going to manage everything is right on the trading time frame so my stop is going to have to be above thirty thirteen remember I have to worry about the spread and this this bid jar not the offer card so I'm going to go you are USD dot a so the chart for the offer which is where I'm going to have to exit so that is 15 so it's my stop two pips above that at 1:30 17 my first target as I was mentioning before another chart would be here and that's my first target my second target actually demand at one-30 us are one to nine to five so it was this level here right there twenty nine so I'd go ahead and I'll put in my singing preferences here for a moment preferences order entry it's allowed me to do enough decimals was looking for active move the easy way it just is my matrix and a third is a whole lot there we go and remember I'm going to have two targets so I can do a star tip on this one I want to do two targets let's stop there we go and I can edit this so do 50% there we go perfect and I'm going to go ahead and place the eoseo at the wrong one to tonight here we go to limit won't stop just on the right okay I have to put it back on the Eurodollar as long as I note my levels too low I'm going to getting in this trade starting to work out my first target 2947 second target 2925 just slightly above that actually so we just change this over you know now I can place my osio order put it in and yes yes yes and yes there we go and I'm over stand I have to do here is it just those stop opps my first one should be 130 17 right there terrific so I'm going to adjust this a little bit as well cause it's showing me fractions of a pip and I don't really see that there now I got the Apple hips so oh I can move this one down to 129 25 which is what I wanted my second target and I'll get out just follow that so maybe 129 12 7 that would find what to greedy I always want to get out before you hit my target and I also want to the other part burger was 1.9 47 so I'm gonna get just above that yeah we'll just get out at 49 there we go there now my orders are place I executed according to my plan take a look art so Dan sighs there you can see I'm in on my short in my area supply is holding right now has turned around yet there's my stop market order for my full lot I'll take off five minis on way down at that first area of demand my second target is actually based on the demands on that I noted here on the third minute chart and as you can see I'm getting it just love that errand as well I usually only take a few trades a day I don't need to take many traders have to be slow to find the right opportunities so those trade would work Albert Waltz I have very little risk and get personal gain in my trade as per fact you can see that I have got lots of buy order 130 no no about that I mean there's a lot of selling pressure I'm buying pressure someone's getting about a hundred bucks in order to make about 580 for the first move in a hundred for a second so now is great through time frames on the opportunity on confirmation on the market movie down shouldn't be the weakness at that areas ploy and normally I wouldn't take this trade now maybe at this time of day we're kind of coming out of the lunchtime from New York so we may get a little bit more activity but we do have obviously the markets already closed or closing and therefore it's not to be one of the best trades I would have ever taken I'd much rather take this trade and warning or beginning of the European session because that as a higher probability trade working out but it's likely to move down to those levels to suit as the overall trend and those we're seeing the supply and demand okay pens Moses reverse that work for me will do trend reverses at lunch but now just plain via the highest probability and by also combining some of the things they've learned from so many professional traders out in the in the world um hi Billy success so anyway I do have to get going unfortunately I've got a class I got to teach some names now I'm not going to name anybody but anyway we'll see how this works out then go and follow it on your own like he says I'm one of the best trades that were taking I definitely would like to have taken a trade earlier in the morning look for better opportunity but this is what I happy able to me it doesn't look like a bad trade it probably could look bigger move and keep my stop well about the thirty minutes to ply zone so we'll see I'm pretty confident and no play they'll help me back here for some more webinars I'm gonna share more information with you mean it's more live trade so until next time gas trade trade well take care

Channel: FXStreet

Views: 49,431

Rating: 4.8664732 out of 5

Keywords: Forex

Id: ubueQrFLhbM

Length: 51min 37sec (3097 seconds)

Published: Wed Jan 13 2016