How to Scan Through Your Charts Quickly
#435: How to Scan Through Your Charts Quickly
In this video:
00:26 – Today’s Topics
01:00 – How to quickly scan through your charts
01:55 – A candle pattern off a Bollinger band
03:03 – A Continuation trade
04:31 – When to scan your charts
05:14 – Who would you suggest as a broker?
05:55 – Register for our Black Friday Sale (it’s 1 week early on Friday 19th November)
07:07 – Don’t forget to share this video and podcast
I’m going to share with you some tricks and secrets of how to scan through your charts really quickly, to save yourself time on the change of a candle. Let’s talk about that and more, right now.
Hey, forex traders, it’s Andrew Mitchem here. I’m the owner of the Forex Trading Coach.
And I’m going to explain to you how you can look through your charts really quickly and to identify potential new trade setups. More about that shortly.
At the end of the video I’m also going to explain about our upcoming Black Friday sale, which we’ve got in a few weeks time. So if you’ve been looking at joining us, that could be a great opportunity for you to save a fortune on joining us with the crazy low prices that we’ll be offering for Black Friday. More about that shortly though. So back to the trading.
How to quickly scan through your charts
So a question that a lot of people have is they say, “How can you scan through charts really quickly and identify high probability trade setups?”
So a question like that came through from Mark this week and I said, look, I’d cover that on a video and podcast for him. And for me, it’s quite simple, the market can either move up, down or sideways. It cannot really do anything else. And with my strategy, it’s also relatively simple. So we’re either looking for reversal trades or continuation trades. And that’s it really. It really is as simple as that. There’s two different ways of trading. And to help me identify what part of the chart the price is in right now, and whether it’s likely to be a reversal or a continuation trade, I use Bollinger Bands. Standard Bollinger Bands have an upper band, a middle band and a lower band.
A candle pattern off a Bollinger band
And if I see a candle pattern and setup that I’m looking for, that’s coming off either the upper band or the lower band, then for me, that’s a reversal signal.
And what I mean by that is let’s say the price is near the upper Bollinger Band and you’ve had a good, strong up trend, and then you see the reversal signal. So like a bearish outside bar or engulfing candle, and it looks like the price is then going to drop. If it comes off that upper Bollinger Band area, after a prior trend, then quite likely the price is going to reverse. The opposite of that being if you’ve had a good, strong down trend and then you see a good strong bullish candle off the bottom Bollinger Band, that’s a likely reversal. Now, not every time you get that, it’s going to be a trade setup. We’re looking for other things like prior exhaustion bounces a round numbers, pivot points, trendline breaks, all the other things that we look for. But just in terms of identifying what part of the chart you’re in right now, a Bollinger Band can be an extremely powerful and useful, easy to see tool. So, really scanning through charts instantly, that will help you.
A Continuation trade
If, for example, you see a pullback from the upper band to the middle band, and then a bullish signal, that is a continuation trade. Likewise, if you see a pullback from the bottom Bollinger Band back towards the middle Bollinger Band, and then the bearish candle, that is a likely continuation back down again. So reversals and continuations are great ways of trading the market. It means you only need to look on the close of a candle. And if you see that right setup near either the bottom or the top bands, reversal signals, somewhere near the middle Bollinger Band, continuation pattern. Instantly, that means I can scan through my charts and go, no, no, no, yes. Potential trade, write it down, come back to it. No, no, no. Yes. Things like that, just real simple way of doing that.
And then all you need to do is you can use your strength and weakness analysis, or you can come back to the trades that are showing potential setups, and then you can go and analyse them slightly more in terms of other barriers for the profit target not to be hit. Is there some way to protect the stop loss? All these type of things that we then look at, but you can very quickly dismiss, probably 95% of the charts that you see, because there’s nothing setting up. And then you may have a few trades that you can go back and analyse a little bit further.
So that to me is an instant, quick scan through my charts on the close of a candle.
When to scan your charts
So I do that once week, the beginning of each Monday on the weekly charts, once a day on the daily charts, twice a day on the 12 hourly charts. And depending on when you’re around, maybe two times, sometimes three on the eight hours or six hour charts.
You can go right down in the European session on our forum site, we always talk about two hour charts, one hour charts. When I trade live on our weekly webinar, I’m trading on anything from one hour charts up to 12 hour charts. So it depends on what timeframe suits you, but very simple on the close of a candle to scan through multiple timeframe charts, different currency pairs, and quickly analyse what’s setting up or what is not. So I hope that helps with that.
Who would you suggest as a broker?
When it comes to trading and you’re looking for a broker, because all the time people say to me, “Hey Andrew, what’s a good broker?” A really good broker that I can strongly suggest you consider is Blueberry Markets. Now, of course, it’s up to you where you place your funds and it’s up to you to do your due diligence. And Blueberry Markets will be one of those brokers that I strongly consider you take a look at. Write to them, see how good they are with their customer service, do some reviews online. But I’ve been with them for years. I personally met Dean and Ben over in Australia, and some of the other team when I was there a few years ago. They’re really good guys, very good brokerage to consider.
Register for our Black Friday Sale (it’s 1 week early on Friday 19th November)
And finally, as I mentioned at the beginning, our Black Friday sale. I’m going to put a link on here where you can register your interests in our upcoming Black Friday sale. It’s going to be something that’s just going to completely blow you away with what we offer. We do this every year, of course, for Black Friday. It’s just one of those times of year where it’s basically this completely stupid, crazy, low, giveaway price to get access to the course.
So, if you’ve been thinking about joining us, you’ve been thinking about joining this massive community of great trading, like-minded people that we have, and don’t forget we’ve been doing this nearly 13 years. We’ve got over 3,200 trading clients in 98 countries at the last count. If you’d like to join this amazing community of people, all trading the same system, all there helping each other out, day after day, it’s a good opportunity for you. So, I’ll put a link here for you to register your interest, and after that, we’ll send you more information about how you can join us for the Black Friday sale.
Thanks again for watching or for listening. Any questions, send me an email, [email protected]
Don’t forget to share this video and podcast
Anybody you know who’s interested in trading, feel free to share this video or podcast with them, and I’ll see you this time next week.
Bye for now.
Episode Title: #435: How to Scan Through Your Charts Quickly