How to Adapt to The Current Market Conditions
#391: How to Adapt to The Current Market Conditions
In this video:
00:29 – A very interesting week
00:58 – Needed to adapt to the market price action
02:02 – Client make a +6.1% gain on XAU/USD H2 chart
02:27 – Just 1 Daily chart trade for the week
03:22 – Trading the shorter time frame charts this week
04:09 – The way we trade at TFTC
04:28 – Trading next week onwards
05:12 – Keep a look out for our Black Friday Sale
As a forex trader, you need to be able to adapt to what is happening in the market at the current time. And I want to talk about that to help you in this week’s video on podcast. So let’s get into it right now.
Hey, forex traders, it is Andrew Mitchem here at The Forex Trading Coach with video and podcast number 391.
A very interesting week
Now, this week we have had quite a lot happening. We’ve had the US elections. Right now, as I’m speaking, we still don’t know the outcome, and by the time you get to watch this video, you may or may not know the outcome, but with that in mind, the market has been a little bit different to many other weeks. And then later tonight, my time, we have the monthly Nonfarm payroll, the US monthly employment results coming through.
Needed to adapt to the market price action
So, what does that mean? Well, it’s meant that the market’s been quite difficult to trade, but also it means that we’ve had to adapt to what the market is giving us. And what I mean by that is we’ve got to look at different currency pairs, different timeframe charts in order to basically give us the right setup that’s happening at the time. Now, as you know, I talk about trading on monthly charts, weekly charts, daily charts, 12-hour charts, six-hour charts, all those kinds of longer timeframe charts. Now, this week, it’s been completely different due to what the market is giving us. And as an example, online webinar that I held just last night with my clients, which was a fantastic webinar with many, many trading examples, we focused on one and two-hour charts predominantly with a few four-hour charts.
And on the session, I took two two-hour chart trades, one on the Euro Australia and one on the Euro/New Zealand Dollar. And we took those live, and we explained the setups, et cetera, on that session.
Client make a +6.1% gain on XAU/USD H2 chart
Now, also on that session, we had a client who took a trade on gold and made us a massive 6.1% account gain on the two-hour chart on gold. And it just makes you realise that if you adapt to what the market is showing you, you can do very well in all conditions.
Just 1 Daily chart trade for the week
And as another example, this week, I’ve placed just one daily chart trade, just one the entire week. It was placed on Tuesday. It was an Australian Dollar-US Dollar trade on the daily chart. Go and have a look at your charts to see a bearish engulfing candle at the bottom of a downtrend, a double bottom off the bottom Bollinger Band. I believe we also had divergence. I think we all bounced off the 70 level, and we had a retracement all the trade that made a 2.5 to one reward the risk, and we had our market in order to make 1.6 to one reward the risk.
It would take a quarter percent at each of those two. In other words, half percent risk on total, on the two trades, one trade, two positions. We just over 1% just on the one trade. So we have adapted because we just haven’t really seen many daily charts, just the one.
Trading the shorter time frame charts this week
We’ve also adapted because we’ve been trading predominantly the shorter timeframe charts this week because that’s what the market has been telling us that has been active. You’re in and out of a trade a lot quicker, and the results have been outstanding.
So, it always worries me when some traders say to me,” Hey Andrew, I’ve got this amazing system. It works on the 15-minute timeframe chart only on the US Yen.” And the question is, well, what’s so special about that? And you’re highly, highly specialising, if that happens. And to me, there’s nothing special about the US Yen 15-minute timeframe chart, as opposed to any other timeframe charts.
So if your system is so limited that it only works on one pair, one timeframe. You really don’t have yourself a very good system.
The way we trade at TFTC
What I love about the way that we trade, because it’s price action, looking at candle patterns, et cetera, that allows us to look at all timeframe charts, all currency pairs, and then select what is looking good for the market conditions at that time. And that’s exactly what I mean by you need to adapt.
Trading next week onwards
Now next week, we would probably be over the US election. It’s probably going to get decided Nonfarm payrolls is headed all the way. The market might have some good price action again. And therefore, we might find that the daily charts or 12-hours or six-hour charts have some very high-quality setups. This week when the market’s been quite narrow, it’s being quite range banned in many ways. The shorter timeframe charts have been the moneymakers for us. So I think it is very important that you take the lesson out of this, that you need to be able to adapt to what’s happening right at this current point in time in the market if you want to be a very successful forex trader.
So I hope that helps. This is Andrew Mitchem, The Forex Trading Coach.
Keep a look out for our Black Friday Sale
Just one more thing, by the way. At the end of November, we will be holding a Black Friday sale. I’ll send you details about that shortly, but if you have any interest, just feel free to let me know that you’re interested and send me an email to [email protected] Of course, it’s just once a year sale, its all-around price as everything at Black Friday is. So we’re going to be offering the course an exceptionally crazy low price that we’ve not done since last year.
So, if you’ve got any interest in that, just send me an email, and I’ll put you on the list to send you details at the end of the month when that sale starts.
So I hope that helps enjoy your weekend, enjoy your trading week next week. And I’ll see you this time next week with next week’s video and podcast. Bye for now.
Episode Title: #391: How to Adapt to The Current Market Conditions