Over 9k Profit In A Month Trading 1 Contract Part Time.

I just thought I would share this statement with you. I cannot share the trades on this one as it’s confidential information only available to students that have taken my 15-hour trading course.

As you can see from the statement there are 68 trades taken with 68 wins. A 100% success rate. As I said this strategy is only available to students that have taken the 15-hour training course.

The strategy is based on my knowledge of where the price is going with the highest probability. If you know where the price is going then you are going to make money. You just have to wait to get paid.

If you wish to learn this strategy or any of my other high probability strategies please contact me now. UK 07939 42 7000 email rob@priceactionforextrading.co.uk Or Skype rob.taylor.trader

Thanks for stopping by and have a great day.

My Number One Forex Trading Strategy Is Now Automated.

Number One Forex Trading StrategyHow amazing would it be to be able to learn a great Forex trading strategy, and to make money on autopilot while you are learning it. Well now you can.

After many years of development my number one Forex trading strategy is now automated.

I have for a number of years been looking at ways to automate what i do. As i am getting older i am less inclined to sit in front of the charts all day looking for trading opportunities, but i still want to make money in the markets. So the answer was to automate my trading, so i don’t have to chart watch all day.

Automating my strategy.

Automating a strategy that is based on indicators is quite easy to do. But we all know that indicators don’t work, and this is why all the expert advisors EA’s that are available for retail traders lose money.

The way i trade is not based on indicators. Its based on market knowledge, and on finding key reversal levels in the market, then entering and exiting trades based on those levels. So building an expert advisor that is not relying on some sort of indicators is an impossible job to do. EA’s do not use discretion to enter the market, they just do what you tell them to do. So you have to set parameters for an EA to understand.

So the first job was to work out how i could define my strategy by way of parameters, and to build those parameters for the EA to recognize. This job was probably the hardest of them all. I had to think of ways to put my thought processes on a chart for an EA to be able to see. From the initial idea to actually building the parameters took around 2 years of work. When the parameters were built i then had to think about how to incorporate them into an EA. This took another 6 months of work before i was happy that the EA was doing what i wanted it to do.

Throughout the whole process I have been working with an excellent developer, who has managed to turn my thought processes and trading ideas into an automated expert advisor. Something that i never thought was possible a few years ago, is now a fully functional EA that is capable of scanning the markets for high probability trading opportunities, and trading those high probability opportunities automatically.

I would like to extend my thanks to my developer, for all your hard work in making this possible.

The benefits of using my EA.

As well as freeing up a lot of time for me, i actually make more money by using the EA, as the automation of my strategy does not need me to spend time scanning the charts for trade set ups. And when i am in a trade i can fully manage it, without having to look for other trading opportunities, as the EA is doing that for me. So i get into more trades, with less work, and more profit. And as the EA is trading based on my rules, its not going to miss any trades, or miss something that is going to effect the outcome of the trade.

It does not matter how good you are at scanning the charts you can always miss something. But not anymore. The EA does all the hard work, and i don’t have to look at a chart at all if i don’t want to, until my orders are live in the market.

Its a very useful addition for traders that do not have the time to sit in front of the charts all day waiting for a set up. You can set an alert to notify you that a trade has executed. You can then either leave it to play out, or manage it if you want more control.

On the subject of management, the EA is fully equipped with all the functionality to enable you to set your own risk profile, and your own money management. When its set up to your desired level of risk, it will enter the market at my high probability reversal levels, with a stop loss and take profit automatically added to the trade. You do have the option to trade without a stop loss, or a take profit, if that’s what you prefer. You also have the option to move the stop loss and take profit levels, if you want to manage the trades yourself. The EA can be used on any pair and on any time frame.

So how do you get your hands on this automated money making machine 🙂 Well the bad news is that the EA is only available to traders that have taken either the 15 or the 30 hour training course. The cost of the EA when you have taken the course is £1995.

For more information on my training courses please click here.

Is Fundamental Analysis Better Than Technical Analysis?

is fundamental analysis better than technical analysisI am not going to name names here, but i was watching a video from a well respected Forex training provider today, and it prompted me to write this article.

His training course is heavily weighted towards the premise that you will have more success if you use fundamental analysis rather than technical analysis.

The provider stated that professional traders, hedge funds, investment banks etc, are 80% fundamental and 20% technical. All of their trading decisions are based on macroeconomics and they are just using a 20% technical approach to help with market entries.

Now this is all perfectly reasonable, and i teach fundamental as well as technical analysis in my training course, but is fundamental analysis better than technical analysis? I don’t think it is.

Fundamental analysis will only give you an opinion of the market direction, and opinion is subjective. Sometimes your opinion is correct, and sometimes its incorrect. Just because you think something is going to happen, does not mean it will happen.

There has been a strong fundamental case for a number of months now, for the BOJ to expand on monetary easing, but they have not done it as yet. So if you have been buying yen pairs based on that, then you are in a bit of bother right now.

Putting fundamental analysis to the ultimate test.

Now is a great time to put fundamental analysis to the ultimate test. Lets take the Brexit vote for example. Now if Fundamental analysis was the best thing since sliced bread, and you were a hedge fund trader, or an investment bank, you would have been on the right side of the Brexit move.

Now do a search on Google to find out how many of these guys were on the right side of that move. There are 1000’s of hedge funds and investment banks, but it seems only 1 guy made any serious money on the move. And that was Crispin Odey. Crispin is a well respected hedge fund guy and he made 220 million on Brexit. See Brexit buccaneer rakes in £220million.

I would just like to point out that Crispin manages an 8 billion fund. So although he made 220 million, he only made a 2.75% return on that particular trade. Yes i agree its not too shabby, but people need the facts i think.

If the title of the article was “Brexit buccaneer rakes in 2.75%” it would not have the same ring to it now would it. 🙂

Here are a few sentences from that article.

A hedge fund tycoon made more than £220 million for himself and his investors yesterday after betting on Brexit.

As many in the City nursed heavy losses, staunch Leave supporter Crispin Odey declared: ‘I think I may be the winner.’

He is one of a handful of hedge fund bosses to have hit the jackpot after taking big ‘short’ positions on company stocks and sterling, betting on their value falling in the aftermath of a vote to Leave.

Now please pay attention to the words “a handful”. So out of the 1000’s of investment bankers and hedge funds a handful got it right.

If you actually looked at all the trades that were taken in the hours of the Brexit vote, you would probably find that traders that rely solely on technical analysis, did far better from that move than the fundamental guys did.

Mr Odey also revealed his trading position had left him in line for huge losses if financial markets had risen, and he had lost his gamble.

So he picked a side, and gambled his investors money, and was correct. Do you think we would have been told about his huge losses if the gamble had gone against him? Well you are not hearing about the other hedge fund guys who gambled the wrong way are you.

Can i just make a point here that i do not like the word gamble, as trading is not about gambling. You take calculated risks based on high probability, and the higher the probability, the more success you will have.

So why do hedge funds and investment banks rely heavily on fundamental analysis and not on technical analysis?

The main reason is, they are managing huge sums of money, and they cannot enter and exit the market as a retail trader would. They have to build up a position, and an opinion over time, they add or subtract from that position as the fundamentals change.

To enter and exit the market with one trade would not only spook the market, it would also leave them in a vulnerable position should the market move against them. They have to hedge in and out of the market, building up an average price for their holdings, hence the term hedge fund. This strategy leaves them less exposed to currency fluctuations than they would be if they were all in, all out.

Retail traders can trade this way too if they know how to do it, but it does not mean that this way is better. It does not mean that fundamental analysis is any better than technical analysis, its just a safer way to trade large sums of money.

How i trade the Forex market?

I personally trade 70% technical and 30% fundamental. And when i say technical i am talking about reading a chart rather than reading a news story. People get technical analysis confused with indicators. They think that technical analysis is putting moving averages on your chart and waiting until they cross.

I trade by reading a chart correctly, and understanding what makes the market move. If you look at my article on the Brexit trade, you will see that the trade was purely based on chart reading. No fundamentals were involved at all in that trade.

Almost everyone that trades fundamentals got that trade wrong, but if you had been trading primarily from a technical standpoint, you would have had a much better chance of success.

So to all the trading providers out there that are telling people the reason they are losing money in the market is because they are trading technical analysis i say this.

The reason they are losing money is because they do not know how to trade.

It has nothing to do with fundamental or technical analysis. You do not need to know anything at all about fundamental analysis to make money in the Forex market, and that’s 100% true and i can prove it.

Fundamental analysis is not the answer to consistent profitability.

So if you are a technical trader that is losing money, and you are considering paying some of these training providers to teach you how to trade fundamentals like hedge funds and investment banks, just think about the Brexit trade. I am not saying what they teach is not going to help you, but its not the answer to consistent profitability that they make it out to be.

Courses that offer to teach you the fundamentals of trading are the in thing at the moment, and a lot of training providers are jumping on the bandwagon to offer this because of the failings of traditional technical based training providers.

Some retail traders think that by taking a course on fundamental analysis they will find the holy grail, but this is not the case. Fundamental analysis is just one approach to trading, and it does not guarantee you trading success. I make a lot more money in a lot less time with my chart reading skills, than i could ever make by following fundamentals.

I know what these guys teach, but they do not know what i teach. So just think about that, when you are considering whether to pay these guys, or to pay me to teach you how to trade.

You get the best of both worlds with my training course. 🙂

The Brexit Trade.

The chart below shows the entry and exit points for the Brexit trade. GBP JPY was preferred over Cable as the Yen safe haven flows combined with Sterling selling produced the most pips.

One of my many strategies clearly shows the entry and exit levels for this trade, which could have banked you over 2600 pips.

This trade is based on just one simple strategy that i use to trade the markets. I have many strategies that i can teach you in my Forex training course.

The Brexit Trade

I know what you are thinking, that i have just drawn 2 lines on the chart, one at the top of the move, and one at the bottom, but let me just say this for all you doubters out there. I can with 100% confidence show you why one of my strategies clearly identified these 2 points on the chart for entry and exit of this trade. If you trust me and enroll on my Forex training course i will tell you why this trade worked, and show you many other high probability trades like this.

Please don’t get my training course confused with all the other crap out there. I will teach you what no one else can teach you. If you want to really understand the market, and be in a position to profit from trades like this, then please contact me for an informal chat.

Have a great day and thanks for visiting.

High Probability Reversal Patterns.

One of the keys to success in the Forex business, is having the ability to identify high probability reversal patterns on the chart.

There are many reversal patterns that present themselves on the chart every day, but not all of them are high probability. I am going to talk about some of the better patterns and how you can use them in your trading.

The Engulfing Candle.

engulfing candleAn engulfing candle or outside bar as its sometimes called, represents a complete change in trader sentiment. The way an engulfing candle forms is probably one of the biggest clues that a reversal or a potential reversal is on the cards.

Engulfing candles often form at the end of a trend and can be great reversal signals. The logic behind the engulfing candle is very powerful indeed, and the candle will change bulls into bears and bears into bulls in a very short space of time.

An engulfing candle is a very basic price action set up, but works very well at key reversal levels in the market. For more information on how to trade engulfing candles click here.

The Inside Bar.

inside barAn inside bar is basically a candle that forms inside another candle. Inside bars represent indecision in the market, and can be good indications of a potential reversal. They are not as powerful as engulfing candles, but when traded at good levels, they can produce a successful trade.

Inside bars can also produce a nice breakout trade. Breakouts work best when you have a multiple inside bar set up. A multiple inside bar set up can sometimes be called a flag, or a pennant. Multiple inside bar set ups will produce a much stronger breakout trade than a one bar set up, purely because the volume of orders in the market will be much larger, and as the price breaks out, and the stops are hit the move will be more powerful.

For more information on how to trade inside bars click here.

The Head And Shoulders Pattern.

The head and shouldlers, or inverse head and shoulders pattern, is also a very good reversal pattern and you will often find them at the end of trends, and at major turning points in the market. The head and shoulders pattern can be a very profitable pattern if you know how to trade it correctly.

Below is a picture of a head and shoulders pattern. You can also see that the right shoulder is made up of an engulfing candle, which makes the set up even stronger.head and shoulders

This set up works well when the left shoulder and the right shoulder are at the same level, but this does not always have to be the case for a head and shoulders reversal to work, but the head always has to be above the left and the right shoulder.

These are just some basic price action reversal patterns that you can use to help you in your trading. If you want to learn more advanced high probability reversal patterns please consider my Forex training course.

How To Identify Supply And Demand Areas

Knowing how to identify supply and demand areas on a chart will help you to make more informed trading decisions.

What are supply and demand areas?

Supply and demand areas are all over a chart on every time frame, supply and demand makes the market work, as it creates an imbalance in the market, and that imbalance is what makes the price go up and down.

For example: Prices move up and down on perceived value. Say Euro Dollar is trading at 13500. Some people may think that is expensive, some people may think that is cheap. The people that think its cheap are buying, and the people that think its expensive are selling.

Now, if you have an equal number of buyers and sellers on both sides, then price will stay at 13500. The currency has reached its fair value according to buyers and sellers. Price will stay at fair value until an new imbalance of buyers and sellers is found. As new buyers and sellers are continually coming into the market, fair value can last a few seconds, or price can literally trade around the fair value area for ever in theory. Until a new imbalance comes into the market, the price will not move from the 13500 area.

Its not just about the buyers and the sellers.

Now consider this, its not just about the buyers and the sellers in the market, its also about the price.

Price is the most important thing in Forex trading, and you should never forget that.

To create an imbalance you must have more buyers at a higher price than the current price, or more sellers at a lower price than the current price. You may have more buyers than sellers in the market, but the price could still go down. Or you may have more sellers than buyers in the market but the price could still go up. How does that work then? I will try to explain.

Say you have 1000 sellers around the 13500 area, but you have 100 buyers that are buying from 13480 up to 13520. Sellers out number buyers 10 to 1, but if the cumulative value of their sell orders, are not larger than the cumulative value of the 100 buyers orders, then price will still go up. The total value of the buy orders, are worth more than the total value of the sell orders, so the demand for Euro Dollar is outstripping supply, so the price continues to go up.

When the last of the buy orders are filled at 13520, and just another 50 sellers come back into the market at 13520, and the cumulative number of sell orders is outstripping the now very small amount of cumulative buy orders, you then have more supply than demand and the price will do down. So to recap, more cumulative supply and the price goes down, more cumulative demand and the price goes up.

How to identify supply and demand areas.

Now this is the tricky bit. How do you know when supply is outstripping demand or vise versa? And more importantly, how do you know when fair value has been reached? and how do you know when supply will change to demand, or demand will change to supply?

This is the holy grail as far as Forex trading is concerned. If you can identify when price will switch from supply to demand, or demand to supply, you are effectively identifying key reversal levels in the market. And if you can identify these reversal levels in the market with high probability, then you have a license to print money. A lot of what i teach in my Forex training course is about how to identify key reversal levels in the market.

Identifying these reversal levels is not as easy as it may look though. Well unless you have access to every brokers order book, which you don’t. So in the absence of every brokers order book, you have to study the chart to identify possible supply and demand areas from which to buy and sell. I cannot go in to detail about what i teach in my course, and how i identify reversal levels in the market, but you can use previous areas of supply and demand, as possible new areas of supply and demand, rather like a trader would use previous support and resistance levels, as possible areas to buy and sell.

The chart below shows you how previous supply and demand areas are respected, and how trading long and short from those areas would have produced nice profitable trades.
supply and demand

Rather like support and resistance levels, sometimes old supply and demand areas produce some nice trades, but also like SR levels they don’t always work. The skill is in knowing which ones will work, and which ones will fail, and i can teach you how to identify the supply and demand areas that will work, which will enable you to take high probability profitable trades from those areas.

How To Make Money With Swing Trading.

Swing trading is a popular methodology used by many professional Forex traders, that can produce some very nice profitable trades.

To be able to consistently make money with swing trading strategies, you first have to understand what swing trading is, and how to identify a swing from which to trade.

What is swing trading?

Swing trading is identifying potential swing highs and swing lows within a market, sometimes called major reversal levels, and entering as close to the perceived high or the low of the swing as possible, and trading all the way up or down to the next major reversal level, or swing high or low.

Swing trading differs from day trading in the length of time a trade is held for. Typically swing traders can hold their trades for up to a week, whereas day traders are generally in and out of the market the same day.

I am primarily a day trader, as i like to enter a trade, make my pips, and look for another opportunity. I don’t like to have money in the market overnight, as the longer you are in a trade the more your money is at risk. And i don’t like taking risks, and i also like to get a good nights sleep. 🙂

How to identify swings.

The chart below shows major reversal points in the market, or swings from which you can trade.
Swing Trading

Now its really easy to identify swings on a chart after they have happened, but how do you know that a level in the market is a major reversal level, or swing, before its happened?
How can you enter long or short at a particular level, with the knowledge that there is a high probability that it will be a major swing high or low?

I am not going to go into detail here about how identify major reversal levels in the market, but it is covered in detail in my Forex training course. But another way that you can potentially get into a swing trade is to look at supply and demand areas on a chart, and buy an sell at those levels.

For more on how to identify supply and demand levels in the market please click here.

What i teach in my Forex training course will show you how to make money from swing trading by identifying major reversal levels in the market, and enable you to day trade or swing trade them for them for big profits. For more information on my Forex training course click here.

Can You Use Price Action Trading For Scalping The Forex Markets?

I am a great scalper, and price action trading can be a very successful way of scalping the Forex markets.

What is scalping the Forex markets?

For those of you that are not aware of what scalping is, its basically the process of entering and exiting trades very quickly for just a few pips profit. Scalping trades can last anything from a few seconds to a few minutes. Scalping can be a really effective way of making money from Forex trading very quickly, but it can also be a very high risk strategy if you do not know what you are doing.

Forex Scalping StrategyMany traders end up as scalpers, as they do not really understand the markets, so they try to jump in and out of trades quickly, and make a few pips on each trade. When you do not understand how to scalp effectively it becomes a very high risk Forex trading strategy, as scalpers tend to have much larger stop losses than other traders, some scalpers even trade without stop losses.

If a bad scalper enters the market at the wrong time, price can quickly move against them, and a series of half a dozen winning scalping trades, can be wiped out with one single losing trade.

How can price action trading be useful in scalping?

Price action trading is all about understanding price, and predicting with high probability what will happen next. To be a successful scalper you need to have a complete understanding of price action trading, this will enable you to enter and exit the markets with precision and take your pips effectively, rather than just jumping in and out, and hoping you make some pips. This type of reckless trading is very stressful and can be very costly, and should be avoided at all times. Trading should be relaxed and calm, and you should be entering the trade logically, and with a complete understanding of what price is likely to do.

Can you teach me how to be a successful scalper?

The short answer is yes. I teach advanced price action trading. What i can teach you is as close as you will get to a perfect trading strategy. That is a bold claim i know, but i am 100% confident in what i do, and my strategy if followed correctly will produce a 90% plus win rate, so if you want to be a scalper following my strategy will make you a great scalper, if that is what you want to do.

Teach Forex TradingWhen you have completed my Forex training course you can trade how you want to trade. So if you want to be a scalper, you can do that, if you want to be a swing trader, you can do that. Whatever trading style you have, or wish to have, you can apply it to what i teach.

I like to trade based on what the market is giving me. If there is an opportunity to make 50 pips i will take them, if the opportunity is there to only make 10 pips i will take them too. I trade logically, and i take what the market gives me, and to trade that way you need to have a complete understanding of advanced price action trading, which is what i teach.

So yes you can use price action trading for scalping the Forex markets, and in my opinion you do have to have that knowledge to be a successful scalper, but when you do have a complete understanding of price action Forex trading, why would you want to be a scalper and take 3 or 4 pips from a trade when you can take 50? 🙂

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Can You Make Money Day Trading Forex?

Day Trading ForexCan you make money day trading Forex?

This is a question that has a very simple answer as far as i am concerned. And its a big fat YES.

There are many well respected Forex traders that say the Forex markets are too volatile, and its impossible to make money consistently from day trading Forex, and you should trade the higher time frames, daily, weekly, and monthly charts, if you want to be successful.

What a load of rubbish. If you are a good trader you can trade any time frame from the 1 minute chart right up to up to the monthly.

People that say you cannot make money day trading Forex, don’t know how to trade, its as simple as that.

My preferred time frame is the 15 minute chart, but i can trade the 5 minute and the 1 minute chart very successfully. I can also trade h1, h4, and daily. I can basically trade anything, and anyone that tells you its not possible to trade the smaller time frames is just a poor trader.

Day trading Forex is what i do. I am a professional Forex day trader and i make 1000s of pips every month day trading the 15 minute time frame. Why do i trade the 15 minute time frame? because that is the most profitable time frame to trade.

Trading daily and weekly time frames? You must be crazy.

When you are trading daily and weekly time frames you have to wait so long for a set up, and your stop loss is so big, its just not worth the hassle to be honest. I take 2 to 3 high probability trades every day. I make my money, and i get on with my life. I am not going to wait for 2 weeks for a set up on the larger time frame chart, and have a 100 pip stop. Whats the point? If you are a great Forex trader, you should be able to trade any time frame.

Yes, but trading the smaller time frames is too stressful? Rubbish.

Take The Stress Out Of Day Trading ForexSome traders say trading the smaller time frames is too stressful. Yes it is if you do not know what you are doing, and you get into a trade and it goes 30 pips in the red. Yes i agree, that is very stressful, that is why my entries are very cleverly worked out in advance, and i enter the market with precision, so my trades go into profit very quickly, which takes the stress out of trading. A lot of my trades are over in less than 30 minutes. I get in, i take my pips, and i get out. That’s not stressful, that’s just great trading.

So yes you can make money day trading Forex, and anyone that tells you otherwise, just doesn’t know how to trade. For more information on how you can learn to day trade Forex, please consider my Forex trading course.

Stop Press. One of my students made 87 pips today off 2 trades, after just 5 weeks of training with me. Stop wasting your time with the 95%, and get into the 5%. Supercharge your trading, and change your life. 🙂

Why Do Pin Bar Reversal Candles Fail?

If you read my article on the pin bar rejection candle, you should know what one is. But not all pin bar reversal candles, or rejection candles work out. Why do some pin bar reversal candles fail, while others pay out?

Here are 3 reasons why pin bar reversal candles could fail.

1. A news release.

A classic reason for a pin bar reversal failure is a news release. I do not trade through news, but news can dramatically affect the likelihood of a successful outcome of a pin bar reversal set up. As a Forex trader you should always be aware of news releases, to make sure you are not either in a trade when news is coming up, or are about to get into a trade when news is pending. I subscribe to a news feed called Talking Forex that keeps me updated on any price sensitive news no matter how small it may be.

2. The components of the pin bar reversal candles.

bearish pin bar reversal candleHow the candle is made up can also affect how successful the set up will be. The ideal components of pin bar reversal candles are a long pin, or wick as some people call it, and a small body. If the body is too large, or the pin is too small the likelihood is it will not work.

The picture on the right is a great example of a bearish pin bar reversal candle. You can see the wick is nice and large, and the body is small. It is also beneficial that the body is red if its a bearish candle, as this one is, or that it is green in the case of a bullish reversal candle.

You can see how successful this bearish pin bar set up is by the strong move down on the candle to the right of the pin bar. A lot of Forex traders would have recognized this great pin bar set up and quickly jumped into short positions to promote the aggressive move down in price that we can see.

3. The location of the pin bar reversal candles.

 

The location of the pin bar is a common reason for a pin bar set up to fail. If the pin bar is located at the wrong position within a trend it will fail. Pin bars work best when they are located at a swing high or swing low within a trend.

If a pin bar is located between 2 candles there is also a likelihood that it will fail. The pin bar set up works better when the pin bar is protruding from the 2 candles either side of it.

failed pin bar reversal chart

The chart above shows a number of pin bar set ups. Two that have failed and one that has worked out nicely. The two that have failed are marked with arrows.

You can clearly see from left to right that the first pin bar has failed for 2 reasons. The first reason was the size of the body. The second reason is the location within the trend. Also the body is bullish (green) and it should ideally be bearish (red).

The second pin bar set up worked out nicely for 4 reasons. The pin bar has a nice small body, that is the correct colour for a bearish set up (red), and its at the swing high within the down trend, and it is protruding from the candles around it.

The third pin bar failed because of its location within the trend and the candles either side of it. You can see that the pin bar has a nice wick and a very small almost non existent body, which is very good, but its totally in the wrong position within the move down, it is positioned at a swing low, and it is overpowered by the 2 candles either side of it.

Pin bar reversal candles work very well when the correct set up presents itself. This article covers basic price action set ups. What i teach is advanced price action trading. If you wish to learn how to trade Forex using advanced high probability price action Forex trading, please consider my Forex training course.

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