Forex Trading For Beginners 2022 (Mini Course)

welcome to the ultimate forex trading for beginners mini course I gotta ask you a question what if there was a way that we could condense years and years of study and knowledge about how to actually trade successfully in forex into just one hour that's exactly what this mini course is going to do hey there my guess is that if you're watching this video right now you're brand new to forex maybe you've never traded before maybe you're just getting your whistle wet with forex trading and you want to learn a little bit more about how to trade Forex successfully this course was designed exactly for you my goal is in under an hour to get rid of all the crap that's out there there's so much BS so many different conflicting opinions on how to trade Forex and just give you - in a simple distilled fashion now I wish I would have had this video when I had first started trading Forex instead of having to read tons and tons of both hire mentors and watch thousands of hours on YouTube videos which maybe you've already done and so the goal of this mini course is to cut through all that and give you the ultimate forex trading for beginners mini course now inside of this course I'm gonna show you how it's set up I'm actually gonna pass you over to part my partner Tyler in just a second but here's what we're gonna be covering we're gonna be covering everything from basics all the way up to you getting and developing your own trading plan so that way you can come away from this video and you can start trading with an edge so we're going to be covering everything from what is forex we're gonna be covering how money is actually made in forex we're gonna be covering what's a Candlestick we're gonna be covering candlestick patterns we're going to be covering support and resistance we're gonna be covering things like the most popular indicators the most common chart patterns we're gonna be covering things like how to choose a broker and a whole lot more and also throughout this it's not just going to be you sitting there and watching it like a hundred other YouTube videos that maybe you've already watched but this video you're actually gonna get something out of because what we're gonna do is we're gonna play a little game where I'm actually going to ask you questions throughout this video periodically and what I need you to do is actually comment below with your answers below and I'm not just saying that's likely to drive the YouTube algorithm out for anything like that but we're just doing this because when you're actually gonna respond and type this out into the comment section below you're gonna retain like eighty percent more than you would if you were to just listen passively so that's the whole idea behind it okay so let's go ahead I'm gonna introduce you to my partner Tyler and we're gonna dive right it let's go ahead and start out with the basics which is what is Forex if you have no idea what is Forex maybe that's why you're on this video or maybe already know what Forex is but if you've ever traveled let's say you know you're in the United States and you travel to Chile and let's say that you know to go there you exchange a hundred dollars for Chilean pesos and you get seventy one thousand Chilean pesos for your hundred dollars so that transaction right there is actually participating in four X which is the foreign exchange market so you're sitting in Chile now you've exchanged your hundred dollars and now instead of a hundred dollars you have seventy one thousand Chilean pesos but now let's say you just want to return home and you didn't spend any of those seventy one thousand Chilean pesos so what's that gonna look like well now you're gonna exchange those seventy one thousand Chilean pesos back for US dollars right so when you exchange that back again you're participating once again in the foreign exchange market and let's say that instead of a hundred bucks that you started with when you exchange for the seventy one thousand pesos that now you have $110 so kind of weird right you actually made ten dollars just by holding on to those seventy one thousand Chilean pesos for a little bit before returning back to the US so how does that happen well what happens as currencies are always fluctuating there was going up or down relative to relative to one another so for example the Chilean peso in this case actually went up in value relative to the US dollar so when you exchange them back for US dollars you actually got more US dollars than you had originally received when you exchange just the hundred dollars for the seventy one thousand pesos so that's support an exchange market that's obviously a very minuscule part of the foreign exchange market there's big businesses for example Apple that are gonna buy all these parts from Japan right and to buy parts from Japan they need to exchange their US dollars for the Japanese yen in order to buy those parts in Japan so big companies are always participating in the foreign exchange market needing to exchange their currency for another currency and then another really big player is actually the banks banks make up the majority of the market they trade a lot in the foreign exchange market in fact the foreign exchange market you may have heard of the stock market for example which is another market to trade in the stock market only does as you can see here 22 point four billion dollars a day is is what's exchanged between different people or businesses right and the foreign exchange market is a lot bigger it's actually five trillion more than five trillion dollars a day is exchanged between different people and businesses isn't that crazy so the foreign exchange market is obviously a huge market and with a big market like that with five trillion dollars a day that's being exchanged back and forth there's a lot of opportunity there to make money another big advantage is the forex market is open twenty four five so the stock market is only open during the day during like business hours but this the foreign exchange market is open 24 hours a day and five days of the week so there's a lot more opportunity as well while the markets open to participate in the market and to make money in the market but now we know that forex is exchanging one currency for another so what exactly is traded in forex well like I just said currencies so the US dollar the Japanese yen the Euro the British Pound these are all traded in the foreign exchange market and so you can see here this is an example of what you'll see all the time in forex is they actually come in currency pairs so you're never just gonna trade a dollar right it's gotta be you're trading the euro dollar for example or you're trading the Australian dollar with the US dollar and it's always gonna come and currency pairs you can see there are these little acronyms here so USD for example it's it's the country name United States and the currency name which is dollar so you can see you know we have the US dollar here United States dollar Australian au dollar here the Great Britain pound right here New Zealand dollar here so you can see how those acronyms are made up so those are the acronyms and then they're always traded in pairs as you can see here and these are actually the seven major pairs that are traded in the market and these have like the most volume that's traded each day is with these pairs so looking at this example of the euro USD the first currency and the pair is actually called the base currency and the second currency in the pair is called the quote currency this is important to know because you're going to want to know which currency is listed first so you know whether you want to buy or sell the pair so for example with the euro/usd let's say that the you're expecting the euro to go up in value compared to the United States dollar then you're actually gonna buy the pair because that's what you're expecting but if it was the contrary if you expected the euro to go down and the USD to go up in comparison then you would actually sell the pair and you could make money that way as well so this is why you can actually go wrong you've probably heard that before or go short on a pair and if you go long you're buying if you go short you're selling and basically if you go long and you buy and then the market goes up or the euro goes up in value compared to the USD then you're gonna make money but if you sell or go short and the market goes down so the euros going down in value compared to the United States dollar then you're actually gonna make money as the market is dropping so you can make money whether the market is going up or whether the markets going down you just have to choose whether to go long or short correctly so let's just look at a really quick example of this if you're not familiar with metatrader4 this is the platform this is where you actually execute your trades and whatnot and I'm not going to get into these basics in this video but while you're in here you know if you have your account connected to the Metatrader 4 platform just as you can see here and we have a chart pulled up this is actually as you can see here it says the euro USD so just like we were looking at right here it's the euro USD now let's say that the market is currently here and we analyzed the market you know we see it's kind of going up up and we make our analysis and we decide hey this is actually a really good time to buy all you have to do is click this Buy button just like that and you can see on this Green Line we just got into the market right here and you can see down here is the current profit that's floating negative currently now this is not going to be a win or losing trade until you actually close the trade by hitting this X here another way that the trade can actually close is you can actually drag a line here and then you can drag a line up here let's say and if the market goes down and hits this line it'll close if the market goes up and hits this line it'll close as well now we hit the Buy button what are we hoping the market does well we went long we bought so we're hoping that the market goes up in value and so we're expecting this to hopefully go up and hit this line up here now if I hover over this line you can actually see if the market does go up and hit that line I'll actually make ninety-three dollars and sixty cents now if the market comes down and hits this line here I'll lose $155 right and you can put these lines wherever you want to put them but this is called a stop loss down here where you stop from losing more and then a take profit is up here where you take your profit once it hits this line so those are kind of the two main lines that people set that end up closing the trade automatically so I could actually walk away from my computer and I don't have to sit here and watch the chart and just depending on what the market does if it comes all the way down to this line or goes up and hits this line then I'll either make money or I'll lose money so like I said you can also manually close a trade I'll just close this trade right now hey I made a dollar great so I'll just click the X there and you can see that the trade was closed so another thing I just want to mention here before we go back to kind of the presentation is over here you can see the current price actually and this is the price that's fluctuating up and down you can see that little decimal is changing and the way that things are measured in the forex market and kind of the like distance for example is actually in what's called pips so I'm just gonna hit the Buy button again here and if I if I click on this and I drag this down here you can see over here on the right that we have the price you know one point one two one nine three whereas the current price is up here on that that white part right so if I'm moving this up and down you can actually see here on the left it says the the pips so pips is like a measurement of movement now in this case this this is actually a points it's not pips even though it says pips there but don't get confused by that we're not going to go into that now but I just want you to understand that pips is just is is basically a measurement of movement in the market so for example if I drop this here it's actually ninety seven point six pips away from this line right here so that's just a measurement of movement if I move this up here you can see for example now are at sixty four point two pips of movement from there down to here so that's basically what a pip is so if we actually look here you can see that this decimal here actually is a pip so if this decimal word to move up to a two let's say instead so the price moves up and this goes to a two that would mean that it moved one pip if this number changed to a five for example and it said you know point zero zero five one that would be 10 pips right 10 pips more that it had moved in the market so things are measured in pips a lot of the time that you'll see people will say you know that that they're gonna have their stop-loss 10 pips away and their take profit 20 pips away so that's just a measurement of movement in the market as you can see there this video is brought to you by blue H financial.com and if you're watching this video we hope that you're enjoying it getting a ton out of it and I know that you'll get a ton more out of our entire edge Trading Academy plus you'll get our favorite indicator the bank's secret indicator and our AI power trading software plus I did one other cool thing I interviewed actually three people that were multi-million dollar forex traders that were my friends I took them out to lunch and I sat down and I said what's the three books that you'd recommend us reading as new forex traders when I was first getting started in these three books kept coming up these three books and so what I did is I bought these books I read on my devoured them highlighted on my crazy and I went and I made a short video it's like 10 to 20 minutes depending on the book and I broke down that entire book so you can get these three books digested you can read the entire thing just get the most important keys out of them and literally like under an hour so if you want that then going over to blood financial calm and become a member today I wanna cover kind of in the basics of Forex is what's called a lot so you can see here as well that we click by with this point one lot size so a full lot if I were to trade one lot instead of you know a tenth of a lot of point one law if I trade one for a lot a standard lot is a hundred thousand unit so that would mean that I'm trading a hundred thousand euros by choosing let's say I chose a one lot size it's just like that so that would be trading a hundred thousand euros if I click buy boom I just traded a hundred thousand euros so you can see down here we have the size and it's one full lot so there's a hundred thousand now based on the lot size and the movement in the market so the number of pips right that's how we measure the movement based on whatever your lot size was you're gonna be trading with more volume obviously with a bigger lot size so the the more movement with a bigger lot size you're gonna make more money or lose more money right so if I choose for example point zero one lot size generally if it moves one pip in the market you're gonna make ten cents or lose ten cents point one would be a dollar a full lot if it moves a pip you're gonna make ten dollars or lose ten dollars if you close the trade and then if you did a 10 lakhs size which is really big for every one pip movement you would make or lose $100 now I say make or lose obviously you would have to close the trade to actually make or lose but I just mean floating you know floating negative or floating positive on your trade because these trades aren't losses or or profits yet right until I actually closed them so you'd be floating that dollar amount you know negative or positive based on the number of pips that it moves in the market based on your lock size so I know that's kind of a lot to take in you can always go back and re-watch this section but that's kind of a basic part of forex so it's really important to understand what the lock size means what a pip is which is movement the market and then you know knowing if you're buying you want the market go up if you're selling you want the market to go down and you can set your take profit and stop-loss based on that right so let's go ahead and move on from there another important concept that's kind of in the basics of forex before I move on a little more technical analysis is what's called leverage and leverage is really important in the forex market and it's actually the way that you're able to trade with let's say $100,000 let's say you only have five thousand dollars and you want to trade with a hundred thousand dollars well how could you possibly do that well if you're able to get let's say two hundred to one leverage you actually only need five hundred dollars to be able to trade with a hundred thousand dollars in the market pretty incredible right and that's what attracts a lot of people to forex because a lot of brokers will actually offer that type of leverage two hundred to one or sometimes five hundred to one or even more so that allows the little guys or for people who only have a little bit of money to start to be able to trade with more money now it's really important to be careful and to use proper risk management if you're gonna be training with a small amount of money and really at anytime in the market to make sure that you're trading with really good risk management because if you're trading with $100,000 with five hundred dollars you could very very quickly blow your account if you're not careful and you're not paying attention to to what you're doing so I'm not gonna go into detail on that here either but that's that's gonna be a really important concept is risk management as you start trading so let's move on quickly to Forex order types like I said you can just click the Buy button click the sell button and boom you're in a trade or another thing you can do is set a buy limit sell limit by stop or sell stop so a buy limit is where you think that the markets gonna continue to drop but then it's gonna kind of bounce off of a point and then continue up so for example here I could set a buy limit you know like like right here if I set a buy limit right here then as soon as the market drops right to my line where my buy limit is it'll actually take a by trade right here and then it'll start to go into profit if the market moves up and this is great because you know if the market does keep dropping lower and lower the ideal point to get in would be right before it turns and starts going up this way right so it'd be better to get in a better entry point would be down here if the market is gonna come down and then switch direction so that's how you could use a buy limit sell limit is just the opposite you know if you want to sell because you think the market is going to drop and you want the you think the markets going to come up to a certain point and then draw then you could do a sell limit at that point a buy stop is if you think you know hey if the market continues to go up all the way to this point then I want to get into a buy because it's got all this momentum and it's coming up this way and so I want to get into a buy if it gets to a certain point and then sell is just the opposite where you know I think there's momentum coming down this way I want to get into a cell if it reaches this point down here you know cuz then that means there's a lot of momentum coming all the way down here and it'll probably keep going down that way so so that's that so we'll move on from those different types of limits that's just a different thing that you can implement into your trading strategy to be able to get into a better entry point the next thing I want to talk about is the four main trading sessions and those are the New York session the London session the Tokyo session and then we have the Sydney session so you can see that we cover the entire world and that's why the forex market is open twenty four or five now it's important to know when these sessions are and this is going to depend on you know where you live in the time of year whether it's daylight savings or whatever but generally this is gonna be how it's gonna look so the London session is going to overlap with New York around this time and that's actually a really good time to trade where there's a lot of volatility in the market a lot of opportunity you can see Sydney's starts here we have the Tokyo session here those overlap as well so actually these are good times to trade are during that London session there's a lot of liquidity or volatility in the market when it overlaps especially here with New York is a lot of movement in the market and then the New York session is good as well things kind of slow down around here in the middle of the day when it's called what's what's called the daily changeover right here when Sydney opens back up and then you know Sydney and Tokyo overlap there there's some more volatility in the pair's that have the Japanese yen or anything like that and that's that so those are good times to trade and then another thing to take into account is that Sunday's when the market opens Sundays for those of us in the United States when the market opens it's it's usually not a very good time to trade because there's something called spreads that are really high so just be careful when when the market opens you can really get into trouble if you're trading right when the market opens on Sunday so be careful there Fridays before the market closes also be careful there as well another thing to be careful of is holidays so make sure that you know when holidays are and especially make sure that you know when different news events are because news events are gonna make a big difference on the volatility of the market especially with a certain pair if a big news event is coming out you need to be aware of that all right we're almost gonna dive in a technical analysis but before that I just want to mention real quick one thing that you're gonna need is a broker so the broker is the institution that you're gonna deposit your money to a broker account think of it as like a bank account so you deposit money into this broker account and your money sitting there and then you're able to trade with that money in the market through this broker that's gonna execute these trades so it's really important to choose the right broker and there's a lot of things that you want to look for in a broker to make sure you're trained with the right broker I'm not gonna go into too much detail on this either here but I'm just gonna make a list here of some important things so first of all you want security in a broker so you want to make sure it's a broker that's been around awhile and that your money's gonna be secure you want to make sure that the transaction costs are low that's important or that'll eat away at your profits you want to look at the ways that you can deposit in withdraw from the broker that's going to be important especially depending on where you're living you want to make sure that they have a trading platform that you like for example you want to make sure they use the the Metatrader 4 platform for you to trade on you want to make sure that there's good market execution with the broker that there's not some big delay with the broker and then you're going to want to make sure that they have good customer service because if something goes wrong or you know you're having issues or whatever you just want to make sure you can contact someone so those are kind of six really quick important points and things to look for in a broker all right so moving on to technical analysis which is kind of the main thing I'm gonna cover here in this video so there's three different types of analysis and you can see that those here are technical analysis fundamental analysis and sentiment analysis so what are each of these well let's start off with technical analysis and technical analysis is basically analyzing the market in a very technical way obviously right so I'm finding different patterns of the market finding different things visual that we can see in the market that's happening you know by analyzing and studying the market and the patterns that we see that's how we're able to use technical analysis and you'll place our trades based on that then we have fundamental analysis and that's basically just looking at a country and figuring out whether their economy is bad or good obviously if the economy is good and you think it's gonna get better or whatever then it's gonna have a higher currency value or if you think that economy is gonna get bad of that country then it's gonna lower the currency value so you're gonna you know base your analysis based on things that are happening in the economy in the news in the world and base things on that so that's fundamental and then we have sentiment analysis and sentiment analysis is kind of just a feeling you know it's it's sentiment so it's it's a feeling of whether you should buy or sell and you know that's it may seem controversial to some people and some people like you know fundamental more than sentiment some people like technical more than fundamental and it just depends on the trader but I personally like to use all three in in my strategy which is why I like this picture you know with the three different legs of the stool they all are holding up the stool so you need each of them when analyzed in the market so today specifically in this video we're gonna talk about developing that trading strategy and that technical analysis hey there if you're enjoying this mini-course so far then I want to invite you to check out the entire edge Trading Academy you can head on over to blue edge financial calm and get it it's only 147 dollars per month and when you get started we're gonna give you a whole bunch of cool stuff all of our cheat sheets all of our calculators our most popular favorite indicator called the bank's secret indicator and our AI powered trading software which you can see the 16 year back test results which is insane over at blue edge financial calm and by the way if you have any questions you can just go on to our site and you can live chat somebody 24/7 even if you're watching this video at like 2:00 a.m. and you're crazy and you're intense and you're in studying this stuff because you really want to master it we're here for you to support you and to help you become successful also if you don't like it for whatever reason then you can just let us know we'll refund your money back and there's no long term commitments you can cancel at any time oh also if you just want to take advantage of this if you just want to try I doubt for like one month and then you want to get a refund and you want to go through the entire course you can do that too so diving into technical analysis here and developing your trading strategy so there are three different types of charts when you're looking at the market so there's a line chart a bar chart or a candlestick chart and you have the option actually to choose between these we're currently here looking at the candlestick chart but you can see up here I can actually choose a bar chart or I could choose a line chart just like that so I'm gonna keep it here on the candlestick chart and we'll move on from that so there you can see a line there's the bar chart and then there's the candlestick so candlestick is the most common so I'm just gonna go over that in this video but something that's really important to understand is what do these candles mean you know what what exactly is happening here so I want to explain this because this helped me a lot when I was first getting into forex once I finally figured out how this works is you know what do these kind of empty or black bars or candlesticks mean and what do the white ones mean and what are these wicks mean up here and whatnot so the first thing you need to know is actually what time frame are you looking at in the market so up here you can see you can choose you know a minute you can choose five minutes you can choose 15 minutes 30 minutes an hour 4 hours a day a week even a month so I'll go here on the one hour chart for example and what the one hour chart does is it actually makes it so that each of these candles you can see here each of these represents an hour in the market so this is an hour this candle is an hour that Kindles an hour and it shows us what happened in the market during that hour so if I change it to four hours now all of a sudden it's showing us okay what happened in the market during four hours you know in every four hours for hour as far as every candlestick so I'll go back to the one hour so how this works is in in with this color scheme that I have here with the black and the white these black candles show that the market is is going up throughout this hour so you can see here since this one this candlestick already opened in closed you can see here that actually the the open was here at the bottom of the candlestick then it moved up because it's black it moved all the way up to here and ended up closing right here at the top of the candlestick so what the wicks mean well the wicks mean that you know it started here it actually came down price came down to this point but then price went back up and moved all the way up to actually the top of this wick of the candle stake and then ended up closing right here at the top of the actual candlestick so let me show you just another example so you can capture that so white means down instead of up so that would mean that the open was actually up here so you can see you know this one closed here and then it opened here it moved all the way up to here but then it came all the way back down to this point here and then end up closing right here then we go to the next candle stake opened here right next to where this one closed opened right here went down to this point moved up to that point but end up closing here next one it opened here you moved up there ended up closing there next one here moved all the way up here but then end up just closing right here you know this one opened here move down so you get the point so that's how the that's how candlesticks work that that's what the black means and the white means and you know it just shows the direction basically and then you know the wicks kind of tell us a story of of you know where the market went and what price it reached and whatnot and actually these different candlesticks that all look different these these different candles are gonna tell us a story of what's happening in the market so we're gonna talk about that a little bit later as well the next section I want to talk about is support and resistance in the market and this is really important and I suggest you put this in your trading strategy so support and resistance is as the market is moving there actually be points in the market where there's kind of some resistance and some support that's either resisting and pushing the market back or supporting and trying to push the market up this way just like you can see here so if we look at an example you know you can see that these candles are coming down down down down and then you can see this point for example the market is kind of bouncing off of this support zone right here and we talk about support as more of zones instead of actual just lines because it will be zones you know it's not gonna be a perfect line that it's gonna bounce off of every time but there's a lot of places so I can even go into the market real fast here and just show you a couple places where you can see very clear support and resistance so down here for example you can see that there's very very clear support I'm gonna just add this little shape on here to show you guys the zone so if you look kind of just right here in this area you can see if the market came down and kind of bounced off bounced off came back up and then came down bounced off again up came down bounced off again so this is a very strong support area and then from there you know the market moved up this way here so you can identify different support and resistance in the market all the time you're gonna see it all the time and it's gonna really help you with your strategies look guys I'm making 83 bucks there you go okay so moving on to trend lines and channels it's actually another support and resistance line basically so it's just an angled one so actually a really good example is is right here we can see very clearly that we have this trend it's kind of trending up this way and if I draw this line you can see the markets coming up and down then bounces off this line comes up down bounces off up down bounces up up down bounces off again it just keeps going up and down and bouncing off of this line as the market moves up this way so you know the market moved up here it's coming back down it might bounce off this line again and continue to go up so I might place a buy trade once it gets to this point here which means I could actually place a buy limit like we learned about right here and what if the market does get down to this point then it'll take a trade at a really good spot I'll get in at this good entry and then the market will hopefully move up and since I bought you know I would I would make money on that trade so you can find that in up trends and down trends you can see that there is either support on the bottom or resistance on the top of the market that it keeps bouncing off of then if you draw I'm actually what's called a channel which is not only as for example here support line on the bottom but then another line on top just kind of touching the the points on the top you can kind of see a channel that it's bouncing off of you know kind of between the top and the bottom so you know a good example would be kind of around here now these lines are supposed to be parallel so this line would be parallel from from this line and so you can see here that you know the market is kind of in this channel here it kind of broke out for a second here from the channel but now is back in the channel but you can see it's you know kind of in this area here so you can actually draw channels there and sometimes take opportunities as it bounces off of here and as it bounces off of here on both sides of the channel so like I said to draw those lines it's really easy to just kind of draw it you know touching the bottom of the candlesticks or the wicks kind of drawing through the wicks and touching the bottom of the candlesticks as you move up you know through the market and and draw that so I'll zoom in here so you can see I'm not I'm not crossing through the candles but I'm crossing through these wicks and just kind of you know touch in there and you can see it you know it doesn't cross through any right here it doesn't cross through any candle sticks here either just kind of touching the wicks and it's right on the bottom of the market so a really good uptrend that we're seeing right now in the the euro/usd so that's a great example there so moving on so how can you trade support and resistance well one thing you can do is trade the bounce so like I was just saying you know whether it's a trendline like we have here or if it's a you know a line that's that's straight across or a zone just like we have here you know and you think it's gonna bounce off at some point here then you can trade the bounce you know where you think it's gonna bounce off of that zone and basically what you would do is you would wait for it to bounce off to make sure it does actually bounce off of that support or resistance line and then you would enter the market once you've seen it kind of you know bouncing off and heading the right direction then you would place the the trade there another way is to trade the break and there's a conservative and an aggressive way to trade the break now the break means that it's gonna break through that support or resistance so you're expecting for example here the market come down and actually break through this support here or you know let's look at a recent example here with the trendline let's say that you thought that let's go here you thought that the market was gonna come down and actually break through this trendline that we saw coming all the way up here for so long you thought the market was gonna start heading down this way and break through this trend line here which is acting as support in the market then at that point you could play the break and if you play the break basically you just place an entry order below the the line so I could place you know a sell stop is what it would be a cell stop right here so if the market comes down breaks through this line and then hits my cell stop it's gonna place a cell trade and hopefully continue down this way now I can say that's a really aggressive way to trade it the more conservative way would be to wait for it to break through the line so I'd wait for it to come down break through this trendline here and then I would wait for it to come back bounced off the line again so it would come down break it bounced off come back up touch this trendline again and then start heading down again and then I would enter the trade there so that's a very conservative way to do it because it's obvious that it's broken that trend line and that it's going to continue to come down this way that we no longer have this uptrend in the market so those are the different ways that you can trade the support and resistance whether you're trading the bounce or the break the next part I want to talk about is actually candlestick pattern so like I was saying you'll actually find different patterns of these candlesticks in the market and you'll see these patterns and you'll be able to trade based on the patterns that you see in the market so we have this cheat sheet in our Academy actually that shows how to spot and trade Japanese candlestick formations to give you that true edge in the market so this is a really cool cheat sheet that actually shows these different patterns shows you know hey if you see this pattern where you can place your trade what what to look for in the pattern and and this is really helpful we spend a lot of time making these cheat sheets for our members at edge Trading Academy so so yeah this this sheet is awesome but basically what you look for is you look for these certain patterns in the market that historically have showed that you know if this pattern forms in the market of these candlesticks most likely the market is going to continue to go in a certain direction so for example if you see you know these two candles like this and then a candle that comes up like that and then another candle that's coming up this way then you could place a buy trade here because it's historically this pattern is shown that the markets gonna continue to go up this way so I'm not gonna dive into a lot of detail on here we have a whole section on how to trade these Japanese candlestick patterns in the edge Trading Academy but there's just a lot of information to go over here but this is our awesome cheat sheet that you can see here of the different candlestick patterns and and that's the gist of of how it works is some people will just trade based on that it's actually really cool because like I said it's almost like reading music when you're looking at these candlestick patterns because you know if you can if you can read music you can play a song if you can read the market and read these candlestick patterns and what's going on in the market and why these candlestick patterns mean certain things then you can kind of just look at it and just like you can look at and read the music you look at and read the market so it's a really cool skill to have is is knowing these candlestick patterns and being able to recognize them and and they all make sense all these patterns make sense on why they're supposed to continue in a certain direction or whatnot but like I said we go into a lot of detail in the edge Trading Academy on that not going to talk about it here as much but you just need to know that one strategy is actually trading with candlestick patterns and looking for those patterns in the market now we've learned about support resistance right we learned about that recently we just learned about candlestick patterns that there are certain patterns in the market that you can search for that'll say hey this is a good time to buy or this is a good time to sell so you can actually combine and then this is really important you never want to only trade Candlestick patterns or only trade support/resistance you want to have multiple indicators that are saying hey this is a good time to buy you know so let's say five different indicators that say hey buy buy buy now now now then it's okay this is a great time to buy but if you have one indicator that says buy one that says sell one says buy one to sell it may not be a really good time really clear time to buy or sell in the market so if we can combine these different indicators I'm gonna show you here that's how we can create a strategy with a really strong indication that we should buy or sell that will increase our chances to win the trades that we're placing so we'll start here with actually combining the support and resistance with candlestick patterns so this is a really good example here where you see the market coming up and you see here that we have this resistance up here you know the market came up and touched here came down it's coming back up and it's touching here again so we see we have some resistance here and possibly in the past - there was resistance in the market at this price point right here so we see it's hit in this zone and now we see right here that we have the is what's called three inside down pattern just like that so we're like hey this is a really good opportunity this pattern tells us to sell it's also bouncing off of this resistance line or level up here and so this could be a really good time to sell so have we placed a sell trade look we would have made a lot of profit on that trade as the market just shot down this way and that's because we had those multiple indicators the resistance and the candlestick pattern that we're matching up saying at the same time hey sell sell sell is a good time this sell so that's kind of how that works so we're gonna talk about another indicator here in fact two more indicators and then we're actually gonna we have a whole section on indicators in s Trading Academy I'm not gonna dive into a lot of detail on each indicator but you know you can check that out later but here's Fibonacci this is a really good indicator I really like this indicator basically what it is is if you have a trend let's say that the market is trending down as you can see here we have kind of this high point low point we can actually draw out what's called the these Fibonacci levels it's really simple imma show how to do that actually in a training academy but and it'll actually map out these different levels like you can see here in these levels mathematically and historically have shown that the market will bounce off a lot of times of these levels just like this you can see it was coming down and then as it retraces and comes up this way that in this example it bounced off of what's called the 50% Fibonacci level so you can see right here it says 50 that this level actually ended up holding and then from there the market shot down this way so it's times when the market is moving down down down we see a trend of it moving down or moving up in this case moving down and we see oh hey it's retracing now the markets retracing up this way you know when is it gonna start going down again so this helps to let us know a good chance of when it could start to move down and to get us into the good entry point in this case we would have you know sold right because that we expect the market to move down and bounce off of this area so we would place a sell trade here or go short and the market would hopefully move down just like it did and we would make profit on all of that so you can trade Fibonacci with support and resistance like we just talked about so for example let's say you have this you know this strong move upwards here so you have this uptrend and it gets to this point and you're like okay hey is it gonna you know come retrace back down this way and then keep moving up in this direction so let's draw out the Fibonacci levels there you go and then we see here hey this was resistance back here and a lot of times actually you know when something has resistance in the future it'll actually become support so for example here it bounced off and then came down and then broke through this resistance well in the future a lot of times it'll come back down and it'll actually bounce off and this will be support and they'll continue up that way so you know we see this in the market well that resistance become support in the future which is kind of right on this 50 Fibonacci level here so if we move forward you can actually see this is zoomed out and and singing the future on the market you can see that it actually did move down it hit this 50 percent Fibonacci level and this resistance back here that became support up here and from there it bounced off and continued all the way up this way so you've had you place a buy trade right here you actually would have made profit on this entire market movement up that way you can also trade Fibonacci with trends remember we talked about trendline so if you see this trend line which in this case is acting as support coming up this way then you could draw out your Fibonacci level which like I said we're not going to show you how to draw it out but you could draw this out which gives you these different levels here right and then if we move here you can see actually that when the market dropped back down this way it bounced right off of this trendline just right here and right off of this 38.2% Fibonacci level so that was for two indicators that hey this could be a really good point that the markets gonna you know retrace bounce off of here and continue up in this direction so let's go ahead and place a buy trade here and the market is going to go up and we would make profit on this entire movement as the market moves up so that's combining those two and you can combine even Fibonacci retracement with Japanese candlesticks so right here we have a downtrend we drew out the Fibonacci you know we see the market starting to retrace here and all of a sudden we see hey look at this shooting star and it's right on this Fibonacci level right so we move forward and you can see boom right on that Fibonacci level whether it's 38.2 or even up here on the 50 where the wick got to you can the market from there just shot straight down and how'd you place a sell trade right when you saw this candlestick formation which is indicating that the markets gonna reverse and start going down this way and the Fibonacci level that it should bounce off of hopefully and continue down this way two indicators that are telling you hey this is a good time to sell had you sold here you would have made a profit on that entire move if you're enjoying this then you're gonna really really love the entire edge Trading Academy and go into everything super in-depth plus when you become a member of blue edge financial we're gonna give you our favorite indicator the bank's secret indicator which is going to give you a crazy competitive edge on the market plus we'll give you access to our AI power trading software that'll pretty much do all of this hard work for you you can see our 16 year back test result on our site and by the way you can live-chat us at any time we have people working 24/7 around the clock so hope you're enjoying this video and you're taking a lot of notes and hopefully we see you as a blue edge financial member soon all right finally we're gonna talk about moving averages this is a really cool and important indicator so moving averages it is the SMA which is a simple moving average so basically what a moving average is in general is it's gonna look at the last X number of candles and it's gonna say hey this was the average price across all these candles and it's gonna map it out and then kind of connect all the dots and draw a line that's it's basically hid in a nutshell so actually the lower the moving average number that means it's only gonna take into account for example ten the last ten candles or twenty last twenty candles or 200 the last 200 candles so the more candles that it has kind of the as you can see here with this blue line the slower its gonna react to market movements you know it's not gonna be as dramatic as you can see these ones that are following kind of ride along with the market so you can see the yellow one which is the ten which is the you know last ten candles and and the lowest number that that one is right along with the market here so it's moving with the market basically when the market moves this line is gonna move but the 200 for example you can see here is a lot slower of a movement and it's not gonna reverse you know until the market really starts changing direction then it'll change the direction of this line so you can actually use these moving averages and when they cross over you can use that to enter trade so I'm going to show you that real quick right here so we have for example the 100 moving average simple moving average here and then we have the 13 simple moving average and the 26 simple moving average so the 13 and 26 as you can see like we just talked about are a lot tighter to the market and react a lot quicker to the market when it shifts direction and moves and the green line here which is the 100 simple moving average that line doesn't react as quickly right it's kind of just very slowly reacting so the good thing about this and the way this strategy works is that you know the the low number simple moving average is going to show you hey this kind of where the market is and it's moving this direction and the large moving average of the 100 simple moving average in this case is going to react slower so it's gonna take a lot more for it to change direction basically and and change the direction of the trend so for example you can see multiple times where these moving averages all cross here and you can see that when these cross it's actually a really good opportunity to get into a trade so for example here you can see that the faster moving averages are crossing over this slow moving average here and they all cross here so that means this would be a good opportunity to sell because the markets gonna start heading down this way then you can see here that the market kind of starts reversing direction you can see that the fast moving averages are right along with the market already moving direction and the slow moving average just took a little longer to recognize about right here this point so when they all cross right there that's a good long entry or a good opportunity to buy and it gets to the market shot up this way then it changed direction again came back down they all crossed here a be a good opportunity to sell so you can see it's it's pretty simple in a very simple strategy but very effective it's a very effective strategy so you can use these moving averages as well as dynamic support and resistance level so as you see you know the market moving in a certain trend like if it's a downtrend as we can see here you can plot a moving average like a 50 moving average in this example it's it's called an exponential moving average which is just a little quicker to react to the market so you place this 50 moving average right on here and you can see that multiple times the market is coming down and then coming back up and bouncing out that line down back up bouncing off the EMA down up bouncing off of that moving average and so it it's a really good in this case resistance line that's showing you you know when a good chances that the markets gonna bounce off of this resistance line and same thing works as support if we're in an uptrend you know the the moving average would be below the market and the market would be moving down and bouncing off of the moving average so that's moving averages in a nutshell so we've talked about a few different technical indicators that kind of show us which way the market might be heading and in our Academy we actually go into a lot more detail on a few other really important indicators that are really good to know and that you can implement into your strategy but for the sake of this video to keep it short I'm gonna just talk quickly about leading and lagging indicators so a leading indicator basically tells us beforehand what it thinks the markets gonna do and the lagging indicator kind of tells us after the markets already doing something it confirms it says hey the market is currently doing this whether it's dropping or the markets going up so there are different indicators that are leading in different indicators that are lagging that are gonna tell us both of those things and it's good to use a combination of actually both leading and lagging indicators in your strategy the last thing I want to talk about before moving on to how you can develop your own trading strategy and exactly what goes into it is another indication of whether you should buy or sell which is based on chart pattern so chart patterns are basically patterns in the market you know the way the markets moving that can indicate whether the markets going to continue in a direction or reverse and go the other way so for example here you can see we have reversal patterns of the market and then here we have continuation patterns and I'm not going to go into a lot of detail here either on this but basically you look for these patterns in the market where you can draw this out and dry out these different wedges or dry out different rectangles that you know where the market looks like this black line basically as far as how its moving and then you can place an entry as whether a buy or a sell and get in at a good point after a market pattern these market patterns historically have shown that the market is either gonna continue or reverse and go in the opposite direction so that's it for chart patterns there's also bilateral patterns there so so that's that alright guys let's move on to building your trade system so there are essentially six steps to building your trading system the first step is to define your time frame so if you want to build your trading system right now you can based on the information we talked about today you may need a little bit more details to really decide on what you want to choose for your trading strategy if you want to manually trade but the first thing you need to do is define your time frame so you need to decide hey am I going to be trading on the one-minute chart the 5-minute chart at the 15 minute you know 30 minute one hour etc so you need to decide which time frame you want to trade on the next is let's say you want to do the one hour time for it we'll do an example here - the next is determine the trend so when you're determining if you need to if you're gonna buy or sell you need to know hey is there a trend in the market so to determine the trend let's say that I plot the different moving averages if you remember when they cross it means that the market is moving in a new trend in a new direction so I plot some of these EMA's in fact if in this example if the quicker MA is above the slower EMA indicates an uptrend if the quick EMA is below the slow EMA it indicates that the market is currently in a downtrend so that's that would be mine so you need to determine the trend and use different indicators to determine that like I said in the X rating Academy we actually talked a little bit more about specific indicators that show that determine the trend there are multiple indicators that can determine the current trend in the market then you want another indicator that's going to confirm the trend so for example I'm gonna plot the RSI which is one of the indicators we talked about in the Academy and that's gonna let me know or confirm the trend basically and know if the trend actually is going in a certain direction or not then step four is to define your risk and this is really important you need to know how much on each trade you're gonna risk let's say you're gonna risk 2% of your account on each trade you definitely don't want to do above you know two and a half percent I think anything above that is pretty risky on each trade so you can do more but like I said it's just gonna be a lot riskier and not a very good long-term strategy so define your risk we talked about a whole section on risk management in the Academy as well which will help with that but that's step four Step five is determine your entry triggers so you need to then have you know something that happens with your strategy that says okay buy or sell you know just like we talked about with combining you know Fibonacci with a candlestick pattern or combining the moving average with a trendline or whatever it is you need to have these different indicators or different types of analysis that say hey this is a good time to buy is a good time to sell so you have the trend going in your favor you confirm the trend you have your wrist defined and then and then you have the entry trigger that's gonna say hey you know get into the trade now so so that's step 5 and then step 6 so you need to have and it also says you have an entry trigger for buying in an entry trigger for selling right for both of them then step six is knowing when are you gonna exit so your exit trigger so you need to have you know a certain criteria we have a whole section actually on stop losses in the Academy as well that goes into more detail I just can't cover everything in this video guys would be a lot to cover in this video which is why I refer back to the the Academy but doing the best I can in this short video to give you the basics oh so you you would learn how are you gonna exit the trade you know at what point are you gonna exit whether it's in a profit or in a loss right so that's that guys so that's how you would end up you know creating your own manual trading strategy would be to combine these different indicators I hope this has given you a clear vision on on how you could at least start to trade in the market you know that you use these indicators and patterns that historically have worked in the market to increase the chance of you winning the trade you know letting you know how you should buy here you should sell here and if you can be more consistent at buying at the right time selling at the right times you know that's gonna obviously help you be a really profitable trader and these different indicators and technical analysis along with fundamental analysis and sentiment analysis are gonna help you with your trading strategy so this is obviously a very technical approach to this trading strategy but you know this is a very good way to do it and to get started and you know the next thing from here is obviously testing out the strategy on a demo account you can actually with with your broker like we talked about earlier with your broker you can actually sign up and open a demo account with with play money basically you could trade it in the real market but with you know with play money so that way you can test your strategy and see how it would do in the market if you had real money in the market so anyway guys I hope this helped you out I hope you've gotten value from this you've understood you know what Forex is you've understood different parts of you know the training platform and and and how that works and then I hope you've seen how you could possibly come up with your own trading strategy if you have you know maybe a little more information than here and you know you could create your own trading strategy and go from there so I hope this helped you out guys and good luck

Channel: Blue Edge Crypto

Views: 229,016

Keywords: forex trading for beginners 2020, forex for beginners, how to trade forex, how to trade forex for beginners, forex basics, how to start forex trading, trading forex for beginners, how to start forex trading in 2020, forex for beginners 2020, forex course, how to start forex trading for beginners, forex trading tutorial, forex trading course, how to start trading forex, forex trading, forex, blue edge financial, forex trading for beginners 2021

Id: n9op7TRy8ww

Length: 53min 41sec (3221 seconds)

Published: Wed Jul 01 2020