I’ve been trading for awhile and do pretty well, to say the least. Price action is the entire foundation of how I trade. I trade daily charts, simple, set forget, low stress, large movements (800-3,000+ pips), high probability, high profitability. The indicators I use…center of gravity, and MT4 stock RSI, are only for confluence. I only execute a trade when price action reversal candles present themselves, and only when overbought or oversold on the RSI, and in the green or yellow of the COG…which I have custom settings on both for each currency pair. I do not rely on indicators, I have to reiterate that. Price action is what matters…the indicators just tell you where price is headed next, supply good support and resistance data, and are kinda just the icing on the cake. If the indicators line up, but if I don’t get my price action candle…no trade. Indicators are actually made from price action. So use the candles!..they are the most direct interpretation of price that you can get. Also, at higher time frames…price action is much more accurate. I always go for a 2:1, or more, profit target. Once the trade is set, I don’t touch it. I set up and execute mainly limit orders, because I want to get a really good entry via retracement. If for some reason, the next bar after the reversal bar, doesn’t retrace enough and trigger the trade, so be it. I usually shoot for about 1/3 to 1/2 the length of the reversal bar candle via the next developing candle. I absolutely DO NOT chase trades. That may be the hardest thing for a trader to learn. Never ever chase. There will always be more trades.
The first 2 pictures are 2 trades I’m eyeing. Waiting for the AUD/NZD (Sorry, my cross bar/mouse pointer was accidentally in that first picture) to get into range…then will wait for the reversal bar. In the AUD/USD, the indicators are already lined up…so I love the confluence. Now just waiting for my reversal bar. If you don’t wait for the correct price action bar…who knows? price could keep going up for awhile. That’s why it’s crucial to wait for the price action. If you don’t understand price action or want to know more, pick up Steve Nison’s book (the guy who brought price action patterns to the US from Japan…the godfather of price action), Japanese Candlestick Charting Techniques. It’s an absolute must and will change your trading, completely. I cannot reiterate that enough. Get his book! I apologize if that sounded insulting…I truly don’t know how much people know or don’t know on this site. I have little yellow X’s on my charts just so I can pick them out from my control panel. Hehe, that’s my control panel in picture 3. Funny thing is, I can go through my charts in 3 minutes and see if there’s a good setup coming due to the simplicity of this method. Picture 4 is a current trade that I’m in right now and am currently profitable. Once I hit my profit target, I will have made 1,931 pips. Picture 5 is another trade that I am currently in and profitable, as well. A beautiful reversal pinbar developed 2 days ago. This is what I look for…price action doing it’s thing, and telling me via the candles. Profit target when hit will be 1,317 pips. I only make a handful of trades per week…because that’s all that’s necessary. I don’t force trades. They come to me, and when they setup, they are beautifully apparent and basically scream at you.
I used to trade indicators, intraday - 5m, 10m, 1hour, etc. charts…and all I did was stress out and lose money. If you are only using indicators to trade, I guarantee that you are already late to the trade. It wasn’t until I studied price action and learned to be patient, that I started making consistent money. Nial Fuller (youtube or google him) and the Lazytrader (youtube, google) know what they are doing. Watch their videos, study price action, trade like a lion…patient, waiting for that high probability trade, and then execute without thought, and let it be. Keep it simple!! Pretty soon you will be winning 80% of your trades, as well. With profit targets of at least 2:1…you will make money and consistently. Price action candles are a reflection of what the big market movers are doing and give you the power to jump on board and ride their wave to profits. It truly is that easy. This took a lot of time…lot’s of errors, lot’s of different methods and systems, a lot of losses, a year of incessant studying, reading, and learning. Now hopefully, you can cut through all the Forex BS, that I had to sift through, and start making money, just like I do.
Anyway, just wanted to share my trading. Hope it can help some people out.
-Dr. Ninja
