This Is The #1 Way You Must Start EVERY Trading Day

what is up so this morning I got behind my computer desk standing here and I was going to do exactly what I always do every single Monday which is go through every single currency pair in the forex market and look for my favorite and what I consider to be the best trading opportunities and then send those trading opportunities to members of the pro trader report but I started thinking about you that's right the YouTube family here that we have on the trading channel and I was asking myself how can I provide you with value this great Monday morning and decided that what I'm going to do is record myself going through every single currency pair and pointing out my favorite what I consider the best trading opportunities of the week and then explaining why I think that's the case to help you improve and become a better trader on your own because that is the goal here at the trading channel instead of continuing to talk here on this intro I want to get straight into the contents what I need you to do click that subscribe button if you want to become a better trader it's down below the video to the right hand side click that like button follow us on Instagram at the trading channel and smile this is gonna be an awesome day I'll see you after the intro [Music] welcome back let's go ahead and get started here with the euro dollar before we do I want to explain that this isn't only going to be a video where I go through and show you my favorite trades the best trading opportunities I see for this week but I'm also going to be explaining how I'm looking for these trading opportunities so even if you're seeing this a year from now it's gonna have some great value for your trading and it will help you improve so first off we're gonna look at the euro dollar and right now looking at the euro dollar what I'm gonna do is ask myself two questions the same two questions I asked myself when looking for trades on any currency pair if I'm starting out here on the daily chart and that is the beginning starting out on the daily chart here we are on the daily chart I want to ask myself what trend is this market in and if I'm looking at this market right now and I pull up a drawing tool we can see that this market has currently put in what I consider to be a possible reversal now this is not a complete reversal yet we do have this one two three kind of trending move to the upside the market is above the 50 EMA as well so we have a lot going for a possible reversal here but in order for me to actually classify this as a reversal and to start looking for long trades here on the euro dollar unless I have a specific strategy where I'm using this I need to see one more breaking close above this level for a possible uptrend and a possible long trading opportunity here on the euro dollar for that reason here on the euro dollar instead of looking for possible trend continuation plays I have to make a decision since I don't want to look for possible trend continuation on this pair yet I don't want to be looking for long trades yet I have to see another break and close right so what do I need to look for well for me that answer is quite simple if I'm not looking for trend continuation then I need to see where my next counter trend level is going to be to look for opportunities on this pair so for me that next counter trend opportunity is going to be somewhere up here at these highs so what I can tell myself what I can actually gather from the information I'm seeing on this daily chart right now is that the euro dollar is about to be in an uptrend possibly it could possibly start an uptrend when we do start this uptrend will I have room to the upside before my next counter trend the answer is yes if we start this uptrend on this pair and then we pull back down to this level of resistance or this level of resistance in this zone that will be an area I look for possible opportunities now since this isn't immediate and I'm not really looking for anything right now this isn't a trade I'm going to be sending out in the pro trader report so we can go ahead and move on let's go ahead and move on now actually to the USD yen and on the dollar yen I've already done the analysis on this pair I'll do it again with you so on this pair I do see a possible reversal and the reason I wanted to point this out let me grab my drawing tool hold on just say ok so on the dollar yen the reason I'm looking for possible short trades here is because we broke a major level of support we have a level here that's been tested as support and resistance many times in the past so in this specific case we have a possible reversal because we have our one two three move possible reversal situation and we have a level of structure that's been tested multiple times the market just broke below because of that this level this area is that level that I'm gonna be looking for possible reversals out of I'll be looking for trading opportunities out of this area to the downside own lower timeframes and the next question I want to ask myself is if I'm gonna be looking for short trades here what's a likely area that the market makes it to after that trade and what I see here is this level pointed out with my black line I'll make this a zone as well something like that so in this case do I have room to the downside if I get a trading opportunity in my zone this week yes I do so the first part of the equation is ask yourself what trend is the market in or are we in the middle of a possible reversal in this case in the middle of reversal because we didn't only break one level of support but a level that's been tested multiple times in the past so that signals a possible reversal for me since we have a possible reversal I want to wait for the market to pull back to the levels that were most previously broken and when it does is when I want to do something like this to a one-hour time frame and checking for possible short trades and on every one of these timeframes I'm going to be in a downtrend so I'm looking for possible short trades out of the dollar yen in the red zone because of all of that information for this week I've already taken a picture of this and I have already sitted out to members of the pro trader report so they've already gotten this information and now what we're gonna do is go ahead jump back out of the daily chart and we are going to look for more opportunities on the Aussie dollar here another opportunity that I've already pointed out and can you tell me why you think this was a good area to look for trades why is this considered one of my best trading opportunities for the week go ahead and see if you can figure it out the reason is because what trends are we in ask ourselves the same questions market came down put in this double bottom we broke through a resistance level here we pulled back pretty heavily and then we started this one two three four five six move if we have more than a one pullback being a to the next leg being a three once we break that that's when I classify this as actually being in an uptrend so what I was talking about that hasn't happened yet on the Eurodollar where it has happened here on the Aussie dollar so now I'm ready to start looking at that most previous level of resistance for a possible long trade so for that reason this week on the Aussie dollar this is going to be an area that I'd look for possible long trades out of owned lower Tom frames the area between 0.6 nine to nine and 0.6 907 and this happens to be a level that has also been tested multiple times in the past as support and resistance if you can get all of those combining so you can get a market that you can tell is in an uptrend based on the rules I've shared in this video which is of not just a one two three move but then a break of that next resistance level so we would need and it all has to happen above a moving average of your choice I'd use the 50 EMA so we would need let's say the moving averages right here we would need one two three to go above the moving average and then another leg to push up and break resistance then I say this market is in an uptrend that's what we do have here on the Aussie dollar and for that reason again that's why we're looking for trades in this Green Zone throughout the week on the Aussie dollar let's move on now to the pound dollar ask ourselves the same question right now on the pound dollar what trend are we in well we have a push up a pullback that's our one two three we then have another pullback and break of a new high because of that we are in an uptrend here on the pound dollar according to my rules since we're in an uptrend an area that I would be looking for trading opportunities in is this previous level of resistance right in this area you can see that the market already came down to that area this is an area I believe we pointed out in last week's pro trader report if that is the case I'll put a picture of that on the screen somewhere but the next thing I'm waiting for is really nothing until we break this high or start a reversal because right now we're just kind of in no-man's land I would consider this consolidation until we continue to move up and considering that my bias is long on this pair if I can tell you something that's a little more complicated and hopefully not confused you I hope this doesn't confuse any beginners but right now I do have a lone bias on the pound/dollar reason being because we're in an uptrend here on the daily chart because of that something I would do is go down to a 4-hour chart or a one-hour chart and wait for this market to start trending on this currency I mean on this timeframe excuse me once we break this high on the 4-hour chart we're back in an uptrend on this on this pair we're back in an uptrend on the 4-hour and I can start looking for possible long trades here so that's just an example of taking the daily timeframe bias and using it down on lower timeframes which is something I may do in the future here on the pound dollar so let's go ahead and go back out to the daily chart we have nothing here that I would send out in the pro trader report so we'll continue looking here on the dollar Swiss we have an area that I've already pointed out in the pro trader report we did get kind of a bounce this was last week's report as well we got kind of a bounce out of that level but now that we have the bounce out of that level what I would look at is either a new level below this for counter trend or a trend continuation level what do you think would be a good trend continuation level for this currency there what I'm seeing is an area right in here we could move this wig down to the bottom that way and this to about right there this would be an area I would look at four possible shorting opportunities if the market does something like this reason being is because it's the next or last most previous level of structure support that was broken and it's also a level that's been tested multiple times in the past with those two factors in place this area between 0.977 and 0.98 o will be an area I look for possible shorting opportunities throughout this week we color this red and actually I couldn't create my zone and you may have the question of since you have this green zone here Stephen would you look for another long trade out of it after the initial balance I don't if we get an initial bounce like this that's all I expect out of counter-trend zones I'm not really looking for complete reversals I'm looking for bounces where I can capture a small amount of movement on a lower timeframe ends up being a large amount of movement and you can actually capture some pips down on like an hourly timeframe in this case so right now we're looking at this chart I'm gonna snag a picture of this and we will move home again what else would I be looking for another counter trend level so I'll go ahead and point that out as well I just zoom out my daily chart and ask myself where's the next lowest support level that's been tested multiple times this is our zone so our next counter trend zone here on and the reason for that again I'll go ahead and explain this the reason this is our zone is because we have support here which is the lowest level that's been tested recently we have support in that zone here the resistance in that zone here and another little bounce of support here so our next counter trend zone will be between zero point nine five eight three and zero point nine five four which isn't something I expect this market to hit this week and we were doing everything correctly like I had mentioned at the beginning of the video I could tell this was in a downtrend so I didn't mention that but I would have looked at trend force and asked myself are we in a downtrend on the dollar Swiss and we weren't so my counter trend plays are gonna be long trades and for my train continuation I'm looking for previous levels of support that I can that I believe will become resistance that's the dollar Swiss let's go ahead and move on Canada Swiss but trend are we in predominantly down but no real trend here's we're just consolidating along and there's no real trading opportunity here as we're just consolidating what I would need to see in order to look for possible trading opportunities is I push down to my next counter trend zone which I have here which I don't think will happen this week so I'm not gonna send this out or a push up to what I consider to be my next major level of resistance right here that could possibly happen this week but I'm really not seeing that much movement this week out of this currency pair so I'm not gonna send anything out for the Canada Swiss Canada yen we have a counter trend area already pointed out and we are predominantly in a uptrend but at the same time we're not in a very strong uptrend as you can see the market barely broke above this resistance level we changed that to black so you can actually see it the market barely broke above that resistance level before immediately pushing back down so I'm really not I don't have a long bias here on the dollar Swiss because of that I don't have a bias at all and the best thing you can do if you're confused about a situation if you don't have a bias if you can't tell if a markets trending or in consolidation it's just not trade that pair it's time to sit on your hands and just be patient and maybe look at a different currency bear so that's what we're gonna do I'm not gonna place anything here all in the Canadienne I will grab a picture of our counter trend zone because that could happen this week and if we get a push up to our counter transit zone this week of course it is going to be an area I look for short trades considering our trend is up and a counter trend trade would be a short trade so in that areas where I'll be looking for possible shorting opportunities based on a couple of different entry reasons we have in that zone let's go ahead move on now to the Euro allsey here olz came down and just played around with our possible counter trend entry but didn't really touch the zone so we wouldn't had a trade out of that area and we've now pushed up I'm not seeing anything here that I would be looking at for a trading opportunity I can do this pretty quickly if I wasn't explaining this this takes me about 10 minutes in the mornings but I wanted to explain it to you and actually try to show you how to do it yourself so right now you would look at this and go what trend is the Euro Aussie in there's not really one we're just consolidating there's no trend here so if there's no trend what's my next level of possible counter trend I guess you could call it trait this is a level of resistance I would possibly look at for short trades but I would have to get a really good entry reason our lower timeframe to want to trade in this area so because of that I'm not gonna send anything out here I'm not really looking for anything on the euro ozzie throughout this week euro Canada the Euro Canada's coming down to a counter trend zone but I'm actually gonna move this zone down now that I see this lower low here to about this level right in here and this markets already came down kind of kissed that area if we get lower into this zone again it will be an area I look for possible counter trend along traits because of these two support levels right here looking left in this area so if we get down again like I said this week to this area it is an area I'll look for possible short team opportunities we do have a possible level of resistance as well back here for a trend continuation play the markets already kissed this level too but if we get back up to this red zone I'm about to draw in right here then this will be an area I look for possible short trades this area hits between one point four five six one and one point four five three five in that area I'll look for possible shorting opportunities for trend continuation here under the Euro Canada so let's go ahead and move on now to the Euro Pound after I snag a pic of this one and the Euro pound now on the Euro Pound I don't see anything I'm gonna move through it quite quickly now if we're looking at trend yes we're in a downtrend but at this point we've already broken above the most previous level of support so right now I would be looking for this market to either possibly reverse and this is a really good note whenever you don't see anything on the chart right now is in terms of what you want to trade it's a good idea to actually step back and look at the chart and ask yourself what needs to happen so I can look for a trade in this case I would need this market either reverse so I could look for possible reversal trades back here or continue lower and break through these lower lows and if that happened of course I would be looking for possible counter trend trades there so I already know at what I'm gonna do pretend it's a chess game pretend the market is a chess game and you need to be four or five steps ahead of the market at all times I am completely by habit at this point four or five steps ahead of the market I know exactly what I'm gonna do here on the Euro Pound no matter what this market decides to do no matter what this payer does I already have plans I already know what I'm going to do if this market goes lower if this market goes higher and that's a relieving feeling and also something that you must do if you want to actually be prepared for any situation out of the market so let's move on now to the euro yen only your again I don't see anything we just double top we broke through we're kind of just consolidating here until we either we have our double top we would need another break of support to put us in Trin then I would be looking for possible short trades out of this pair or we need this market to break in a new highs and possibly get some trades out of this zone because we got so close to this top zone already and then started falling I'm not gonna be looking for short trades in this zone again so we're gonna move on to the euro New Zealand on the euro to Zealand we have a possible shorting opportunities on the markets in right now and a counter-trend zone we haven't touched yet that I'm also looking at now what are the reasons behind this shrink is in uation zones I always look for turning continuation first I am in a sense a trend trader but I do look for counter trend trades if there is no possibility of trend continuation so and when I said no there's always a possibility for tribulation I mean no possibility for a trend continuation trade in a particular zone like my rules described so in this case the reason that we're looking in this zone for shorting trades this week is because this market is predominantly in a downtrend we have all these little moves down huge moves down small pull backs and then we get a pull back up to what is this right here it is the most previously broken level of structure support now I ask myself we're at the most previously tested level of structure support that was broken but do I want to trade in this zone right now the answer is yes for me I can trade if that's all I have but what I'd like to use as an extra confirmation is was this level ever tested and perform and either pushed up from or down from became support or resistance from in the past and the answer is yes we have another area of support right there where the market used this level we have some resistance looking left back through here so because of that that gives me added confirmation that this is a level I want to pay attention to for possible shorting trades it's going snag a pick grab it and go all right your New Zealand is done move on to the Aussie yen on the Aussie yen predominantly in an uptrend but we've now broken below our previous level of structural resistance that was broken most previously which is where I would be looking for long trades because of that I'm not looking anything on this pair unless we break into a reversal or break higher and I can look right here for possible long traits now we'll move on to Aussie Canada and because this video is already over 20 minutes long hopefully it was extremely valuable for you in terms of learning what I'm looking for in these zones also in these zones you're not just looking for the zones and going I'm in a place to trade when the market gets there you want to drop down to lower timeframes and look for some type of entry but you also this has to be a tested plan you can't just randomly start trading this and expect it to be profitable because as traders we're looking to have a statistic edge a probability of winning and unless you test and validate that whatever entry you're gonna use in these zones is a winning pattern a winning entry in these zones then you have no way of knowing if you have a statistic advantage but this is one step to building that statistic advantage in what we call a trading strategy so you have this and what what you can do is go ahead and test these zones with double tops and double bottoms I'm telling you you'll be surprised at the results so go ahead and go through the market and back test that for a while decide if it's something you want to put in your trading plan and if it is go nuts go ahead and start creating a strategy based on these rules these zones can be extremely accurate and the way we look for them yet again just to give a final recap so we look at a market we go what is the trend of this market the markets in an up or a downtrend and then we look for trinka deviation trades based on the previous level of structure that was broken so in this case we'll look right here this market was pushing down created a support level here pushed up as a pull back pushed back down broke below that level and immediately we said okay because of this situation we are in a downtrend under a moving average I use the 50 EMA and this market I want this market to pull back to that zone before I start looking for trading opportunities when we're in that zone I want to look for short trades on lower timeframes boom and then you can see it and it's not a hundred percent nothing is but that would be the trend continuation version and when we're not entering continuation you want to look left let's say price is right here on this little red bar right here I would take a horizontal line place it at the close of that bar scroll back and ask myself where's the level the last level of support that be tested multiple times and that level is exactly where the line is we have this wick test we have this test here and if I scroll back further probably a little further we have another test right here so with that being the case this would 100% be an area I would look for counter-trend rates and we got a nice little counter trade bounce from that area so that's something to keep in mind that's a recap of everything we went over today and if you would like to start receiving emails of these zones every single Monday showing you my top trading opportunities the top trading zones that I'm looking at then there's a link in the top of the description labeled pro trader report not that is totally fine just make sure you subscribe here for more valuable content if you enjoyed the video click the like button follow us on Instagram and check out one of the videos that's gonna pop up to one side of my face I really think you'll enjoy it and it will help you to improve in your trading career so with that being said I want to wish you the best of luck on all your future traits I want to wish you a great 20 20 happy late New Year and I will talk to you in the next video see you soon

Channel: The Trading Channel

Views: 144,633

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Id: --K1hLNoJBo

Length: 22min 24sec (1344 seconds)

Published: Tue Jan 07 2020