5 levels of highs and lows in the Forex market

5 levels of highs and lows in the Forex market

We got low high high high high high high, high equals low and then we have this higher high here just from that point we failed to create any new highs and instead we went down and broke new lows, well that’s it. The change in trend is the first indicator that we are turning into lower lows, so this is the standard confirmation that we just mentioned.

5 levels of highs and lows in the Forex market

If you remember what we said we said we want to see this shift, and then we want to sell the pullback, and this is the selling point which in this case would be the pullback to this supply, so we have a supply zone just here, it’s the last candle before the push to the downside that would It is the place we want to sell in the market.

So we’ll place our sell order in that area, our stop loss will go above the high and then our target will drop to the low on the right, so that will be our target now if we allow this trade to go lower. Eventually, you will see us trade back into this bid, and then sell down to our target.

Use the Forex market structure to ensure that the time frame is the lowest

So what we’ve done here is use the market structure to make sure that the lower time frame corresponds to the higher time a 10-minute time frame which in this case for day trading our higher time frame would be bearish now we’ve used the 2-minute trend to see that the time frame For two minutes he also agreed that it was bearish.

This means if we sell now and we have full agreement across all time frames which means we have the highest probability setup, we use confirmation in the form of a low time frame structure to validate the trade and tell us this trade is good if you use this format we will lose less Deals and the deals you make will be bigger.

Forex trading from a proven structure

As you can see we were able to order a stop loss because we were trading from a confirmed structure so we could place a stop loss order above this high instead of having to place it above the previous high, meaning I think this was a 3.58 trade % before it now trades at 4.76%, so we’re making about 1.2% more.

Just follow this format, but be careful that you have to choose your poison. Here, while you’ll avoid a lot of losses, you’ll also be making a lot fewer trades if we keep in mind the previous example of this right, where we had a trade on this offer, and the confirmation didn’t happen here, so that would be a missed opportunity so the 2.97% that you made there which It didn’t exist.

Accepting losing Forex trades or consecutive periods of losing

You may have missed it, so if you are a trader with a good mindset and reasonable risk aversion and don’t mind accepting losing trades or losing streaks because you know a statistical advantage will make you money in the long run, I would just trade with the normal sell limits of the zones as mentioned.

But if you’re a trader who feels more stressed about losses and you want to reduce the chance of getting into losing trades, this is a great way to do it, but it means you’ll miss some setups that you would have discovered otherwise, so to win as a trader we need a strategy that we can follow consistently.

Forex rules and processes that we can apply every time

A set of rules and processes that we can apply every time we come to the charts and all the trades we make should look the same, we should be able to explain the exact concepts and the exact reasons behind each trade because if our trades fall under the boundaries of the strategy and system that means they are… Repeatable which means it’s easy to stay consistent.

We can use the statistical advantage of winning on our winners more than we lose on our losers to make money in the long run so some have finally noticed this system. You will only win about 50% of the time, and sometimes the markets will enter a volatile range and you will be stopped out two, three, or four times. Or five times in a row.

Trending Forex Markets

It only works in trending markets but fortunately, the markets are trending a lot of the time and when they do multiple opportunities will present themselves as you just saw so we can take advantage of the markets at every step of the trend, this strategy along with any other trading strategy will not give you Trading operations every day.

Sometimes we will wait for a few days maybe even a week or two where there are no settings workable for you, so I want you to remember that so you don’t get impatient because if you do this, just wait for the settings to be generated and you will make money in the long run.

If we think back to the beginning of this article it messes up your application of the system moving from one strategy to another and all these other things that cause you to take losses and lose control of your trading.

Summary

So I’ve just given you a huge amount of information here but there’s still a lot to learn and now you have the option to start looking through the hundreds of free article clips I’ve taught many different Forex market concepts in amazing detail, these article clips alone will give you massive amounts of information. Which you can use to make a profit in Forex.