Many struggling Forex Markets traders struggle to find out how to Buy near a
Bottom of the day or sell near a high of the day. If you are one of such traders, then keep on reading the rest of this blog post as I am about to reveal a simple but yet very reliable strategy to help you determine in advance how to buy near the low of the day or do sell near the high of the day.
The reason why it is important to, determine the lows and highs is because you will be is the position to determine the new trend and trade in the direction of it, and also be in the position to ride most of the trend in order to also be able to go out of a trade before the end of the trend. This will help you, master the art of trading low risk high probability trades and give a trading edge over other trades who does not know how to spot such trading opportunities.
Learn how to determine divergent between Price/Indicator.
Divergent, is when the price is making higher highs, while the indicator like Stoichaitics or the RSI make lower lows at the bottom of a trend.
The opposite is also true is an uptrend, the market price will be making higher highs while the indicators will be making higher lows.
Triple Tops or Bottoms, Head and Shoulders.
In an uptrend the Price will test the Top three times and the second time it will go higher than the previous high before it drops then the third time it test the top it will fall below the previous high then in the process it will form a left high, centre higher high and the right lower high that looks like a head and two shoulders of a human being, which is the reason why they call this pattern head and shoulders.
This middle pattern is called a neck line and is very powerful indeed, and if the price can break the neck line then it will continue to fall with a very high momentum in the opposite direction, and it will give you a very low risk, high probability trading opportunity for you to make money.
W`s and M Patters or Double tops or Bottoms.
The next reversal patters I want to share with you, in this article is called double bottom, when it happened at the end of a down trend or also known as W pattern or double top or M pattern if it happen at the end of an uptrend.
Though this patters are not as powerful as the triple tops or bottoms, they also give traders who know how to spot them a very good signal in advance to tell them to go out of whatever trade them are in as the current trend has run out of steam and is about to change direction and move in the opposite way.
You can also look for new trading opportunities basing on your trading strategy, to ride most of the new trend that is starting out, and make some forex pips for yourself using the above information I share with you in this post, to start trading near the highs and lows of the day.
The market is trending 30% of the time while the other 70% of the time it is moving sideways and therefore this information is very powerful indeed if you know how to spot a strong trending market.
In my next blog post I will share with you about how to spot continuation patterns like, triangle flags, parallel flags as well as breakout patterns which are powerful indeed for a trader who really want to trade with a trading edge.
Thank you for visiting my Blog , and I hope you did enjoy what you learn in this blog post which was aimed at teaching you how to buy near the high and sell near the low of the day, and more importantly you will use this information I share with you her to help you become a better trader.
From: Patrick Sekhoto