Hi, My name is Ân from Viet Nam. I began my trading career 6 years ago, like many other traders, i tried buiding my own trading system manually which is combination of complex indicator such as: Moving average,Bollinger bands,stochastic…but, in fact,it doesn’t work at all ! After that, i thought that the main factor moving the market price is Fundamental economic news on schedule, as you know, from the myriad of information on the market, that put me in a matrix ! In reality, it’s almost impossible to indicate in which direction the trend will move after those news announcement.Then, i tried to analyse the trend and found out the enter/exit point with some simple indicator : Fibonacci,pivot point along with fundamental factor,and soon grew tired of this analyse because everything’s always in changing. I wanted to build a consistent trading rule as simple as possible so that i can follow my criteria, Finally, the most trading method born, we need to determine certain levels where traders are more likely to act one way then another. With this special technical analysis, you can do basically the same thing every time. If you watch the patterns i post, they are basically the same patterns on different pairs every day. I try to eliminate as many random variables as I can. It is important to have a robust strategy, as we do, that works over all markets and all time frames.That’s PRICE PATTERN ( Chart patterns are the depiction of trading psychology in motion. ) Let’s view some usefull price chart patterns .
As you see on the chart, it’s such a easy two step to catch a trading opportinity.
_First of all, i need to draw trendlines to form the current chart pattern. ( popular price chart patterns: Symmetrical triangle, Ascending/descending triangle, Double top/bottom , Head& shoulders , Weidge,ABCD, Bullish/Bearish channel )
_Next, identify the trend with momentum on RSI and drive along with the trend.
How about the enter/exit point ? I always place two trades for each pattern completed, when the market moves in my favor, i take profit at the first trade for 50 pips, the other i’ll move my stoploss into the entry point to protect current profit and trail along with the trend, i’ll let the profit run to support/resistence zone. ( you may hear an advice: Let your profit run and cut your loss quickly, this’s a good advice but the fact that we just let the profit run to a potentail support/resistence level, the Forex market has its " weight " which the trend can be reversal at anytime ). The trade will be stopped out when the price comes back to the Pattern Formation, for instance: I will sell when the price breaks the bullish channel, the stoploss point will be set about 20 pip above the Resistence trendline. Based on my experience, a fake breakout often and often leads to a strong movement. Another way to put the stoploss about 20 pip thanks to the reversal japanese candelstick pattern.
Some sample setup trades:
no prolem, i just saw by accident a forum which posted these e-book in advance, i find them useful for this spread.
