Don’t Take Another Forex Trade Until You Check These 4 Things
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#653: Don’t Take Another Forex Trade Until You Check These 4 Things
In this video:
00:26 – New to trading and not sure how to proceed?
00:52 – How to organise your charts on your trading platform.
01:45 – I look for a suitable candle pattern.
02:07 – Does the candle pattern form in the ideal part of the chart?
03:38 – Knowing exactly when to look at your charts.
04:34 – Trading at the beginning of the day, the week and the month.
05:18 – When does the next 4 Hour chart open?
06:08 – Check out my new Masterclass.
06:12 – Blueberry Markets as a Forex Broker offering multiple markets to trade.
07:08 – Book a call with us to help you with your trading.
So you want to become a trader. But the issue is you don’t know what to trade and when to trade it. I’m going to give you 4 really important points that are going to massively help you. So let’s get into that and more right now.
Hey traders! It’s Andrew here at The Forex Trading Coach of video and podcast number 653.
New to trading and not sure how to proceed?
A lot of people get into trading and they open up their charts. They add lots and lots of indicators. They start taking some random trades. They might fluke it, they might do okay, or they might lose lots on their demo account and then possibly on their live account and they give up.
The issue that I find is that so many people just don’t know what to look at. They don’t know what chance to look at and when to look at them. So I’m going to give you some really important points here that I think will massively help you.
How to organise your charts on your trading platform.
So in terms of what to look at, what I do is I open up all my charts and have them saved on my MT5 platform.
So I open up all the, let’s say, the euro pairs, and I put them all 1 after another. So the euro against the US, against the yen against the Frank, against the pound, against the Aussie, against the Kiwi, Canadian, etc. like that. The same with the British pound pairs, then the Aussie, the Kiwi. Look at the US pairs Canadian pairs.
And so I’ve got them. I can scan through 1 after another. So if we have an example of the euro let’s say. And I’m looking at the EUR/USD and it’s heading up and the EUR/GBP heading up and EUR/JPY heading up. And EUR/CHF heading up. It gives me a fairly good indication that possibly the strength and weakness is with the strength in the euro. So that starts to help. And it gives me a bias that I’m preferring maybe to see buy trades on euro pairs.
I look for a suitable candle pattern.
Secondly, when I scan through those charts, I’m then looking for the candle pattern that I’m looking for. And it’s very easy when you’re looking for let’s say Outside bars and Engulfing bars to go. Yes. No no no no. Yes. No. Like that. So it’s very easy to scan through your charts to be able to see a potential candle pattern.
Does the candle pattern form in the ideal part of the chart?
Thirdly, once I’ve decided which charts are giving me the potential candle pattern, I then need to put a little bit more analysis into that and deep dive into that actual setup and go, okay, so it’s an Engulfing candle. That’s great. But there’ll be lots of engulfing candles all over your charts. You can’t obviously just take every single 1.
So you then need to find tune things a little bit more. And so I then like to look at say is my stop loss protected. So if let’s say it’s a by trade, can I put my stop loss below a certain level, maybe a previous swing low below the pivot point, maybe below a round number to protect it.
And the opposite of that is is my profit target likely to be hit. Are there like, do I need to make a new swing high to get to my profit target? If I do, I probably don’t want to take the trade. Do I need to get just above a new round number for a for the profit? And so if that’s the case, then maybe I should consider just bringing my profit target down below that round number and either a series of highs to the left.
And if my profit target can be below those to give me the high reward to risk that I’m looking for, then that’s a good thing as well. So it’s not only analyzing the candle, it’s putting it into the right part of the chart and then looking. Do you have like some added strength to protect the stop loss? Do you have a likely scenario there that your profit target is going to be hit without needing to make new highs, will get through previous resistance levels, that type of thing as well.
Knowing exactly when to look at your charts.
And then it’s a case of knowing when to look at your charts. You know it’s all well and good saying I’ll just go and look at the euro and EUR/JPY. EUR/USD, etc. but the very easy way around that is to only look at your charts at the close of a candle, and you’ll know when that is, because the charts are the same all year round.
They all work off New York time, so the daily charts are always going to open the New Day at 5 p.m. New York time. Now that may change in your local time depending on where you live in the world. And we’ve just gone through daylight saving here in New Zealand, just moved into summertime. And so in my local time, the daily charts now open an hour later than they did last week.
Now, heading into November when the US clocks change as well, that will then for me locally be another hour on again because the US go back for winter, but it’s still always 5 p.m. New York time. That’s always the same as a constant throughout the year of. That’s when the charts open.
Trading at the beginning of the day, the week and the month.
And so at the beginning of the day, I can look at the daily charts, I can look at the 12 hour charts, 8 hour charts and 6 hour charts, and we do that and we analyze those charts for our clients each day and take trades.
Today being the beginning of the month, I’ve also looked at the monthly charts for the month of October now that September has closed. So it doesn’t matter what time frame chart you’re looking at, it’s all based on the close of the candle. The reason I do that is because it’s set. Nothing’s moving higher or lower the candle is set.
Any indicators that you look at their set, they’re not moving support and resistance levels. You know they’re they’re sort of fixed anyway. But you know anything that you look at once the candle has closed that’s not moving. And therefore you have time to go make your analysis and take your trade decisions.
When does the next 4 Hour chart open?
So if you’re looking at, say, 4 hour charts, and you know that the New day opens at 5 p.m. New York time, you’ll also know that you take 4 hours on top of that. That becomes 9 p.m. New York Times. It’s when the next 4 hour candle will close. If you’re looking at 6 hour charts, you’ll know that it will be 11 p.m. New York time because it starts at 5 and 6 hours, that becomes 11 p.m. So that’s how you can know when to look at your charts. Use strength and weakness.
Look at the candle pattern, then put that candle pattern into perspective. Is it in the right part of the chart? Have you got reasons to protect the trade? Reasons to get out without sort of causing too much in the way of resistance? Does that give you the high reward to risk it? Looking at if you’ve got strength and weakness analysis in your favor and you know when to go and look at the charts. So I hope that those 4 tips help make things easier.
Check out my new Masterclass.
If you’d like to know more details, have a look at my masterclass. I’ll put a link to that here.
Blueberry Markets as a Forex Broker offering multiple markets to trade.
And if you’re out there looking for a really high quality broker, I can highly recommend Blueberry Markets. They have the MT4 and especially the MT5 platform. Lots and lots of markets.
I’ve just looked through gold trades today. There’s gold against 6 pairs. It’s no longer all 6 other currencies. It’s no longer this XAU/USD. You know I’ve taken 8 hour chart trades on XAU/EUR and XAU/SGD. But you know there’s XAU/AUD, XAU/GBP and XAU/JPY, XAU/CHN, you know, lots of other markets as well.
And that’s what I like about Blueberry Markets. You got lots of choice to look for the highest quality patterns, because of course the way that I trade, I don’t really care what market I’m trading or what direction I’m trading or what time frame I’m trading is getting the patterns.
So if you’ve got the ability to look through multiple gold charts and why just restrict yourself to gold against the US. You know, that’s what we used to have in the past with the likes of Blueberry. We’ve got a lot more options there as well.
Book a call with us to help you with your trading.
If you’d like to book a call to speak to myself or 1 of my team to find out about how we can help you with your trading, I’ll put a link to our booking calendar as well.
So that’s it. This is Andrew here at The Forex Trading Coach, and I’ll see you this time next week by for now.
Episode Title: #653: Don’t Take Another Forex Trade Until You Check These 4 Things
Find out more about Blueberry Markets – Click Here
Find out more about my Online Video Forex Course
Book a Call with Andrew or one of his team now
Click Here to Attend my Free Masterclass
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