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Daily Currency Movements and Trading Videos

#234: Which Forex Broker Should You Use?

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Which Forex Broker Should You Use?

In this weekly video:
00:29 – Which broker should I use?
01:03 – I use Pepperstone, AxiTrader, Go Markets and Blueberry Markets
02:12 – ASIC Regulated brokers
02:30 – Oanda and Traders Way are the 2 brokers I suggest for US traders
03:55 – A new Trade Copier Service is now available

Which Forex broker should you use and why? It's an important subject. Let's talk about that and more, right now.

Hi, Forex traders. Andrew Mitchem here. The Forex Trading Coach video and podcast number 234.

Which broker should I use?

Now, a day doesn't go by without me getting a handful of emails asking me, “Andrew, which broker should I choose? This broker's not been fair to me. I can't get my money from that broker. I've read bad reviews about this broker. Who should I use?” So I can't tell you actually who you have to use. That becomes your choice. What I can tell you are the four brokers who I personally use with my own funds. I've been with them for a number of years. I like them, I trust them, and they're working well and I've sent a lot of people to them. But still you need to do your own due diligence and it needs to be right for you.

I use Pepperstone, AxiTrader, Go Markets and Blueberry Markets

If you're in America, there are two other brokers I'll mention shortly, but the four brokers who I personally use are Pepperstone, AxiTrader, Go Markets and Blueberry Markets. Now all four of those use the MT4, MetaTrader 4 platform. All four of them have the correct 5:00 p.m. Eastern Standard Time, that's New York time, start of day charts. So they all open a new day on the charts at 5:00 p.m. American, New York time. Really important that you have that on your charts, regardless of who you choose as your broker.

And what I've done is, I'll put a link below this video to the page on my site where you can go and find out more about those four brokers. If you're listening to the podcast, you can then go to forextradingcoach.com, click onto the products page, and then drop down to the Forex brokers page. So, once again, Pepperstone, AxiTrader, Go Markets and Blueberry Markets. To be perfectly honest, there is not a huge amount of difference between all four of them. All four are based in Australia. I'm based three-and-a-half hours away in New Zealand. So I'm not doing it because they are in the same country, which they're not. They're not even close to me.

ASIC Regulated brokers

The reason I'm using them is because all four, in my opinion, are good brokers. They're regulated in Australia, which is quite a high, strict ASIC-regulated area. And I've been with them for a number of years. You can have your accounts in various denominations. If you happen to live in Europe or somewhere else that's not close, doesn't matter, because they have servers in different countries around the world.

Oanda and Traders Way are the 2 brokers I suggest for US traders

If you are in America, then the two brokers who most of my American clients use are OANDA and Trader's Way.

And with all six of those brokers, I'm not endorsing them. You will find negative comments about all of them. Wherever you go, you're always gonna find people who get grumpy and get upset and blame the broker for losing trades and widening spreads and all this. What I'm saying are these are the four brokers who I personally use myself. I've never had an issue with them. And the two American brokers, OANDA and Trader's Way, are the two brokers that a lot of my US clients use and seemingly like.

And so have a look at them, do your own due diligence. It's really important. It's your money, you need to be comfortable with them. It's not just because I say they're good, you have to be comfortable yourself. So go and do that due diligence and do some research on them, but don't be surprised when you see negative comments about certain brokers. I get negative comments about myself and my coaching course, but having said that, I've got the overwhelming vast majority of clients over the last eight plus years who have done exceptionally well from the coaching course. You're always gonna find negative comments from some people. As the phrase goes, you cannot please all the people all of the time, and you can try your best but you can never please everybody. So have a look into that. I hope that helps. As I mentioned, there is a link below this video.

A new Trade Copier Service is now available

One other thing just to mention this week, and I'll put a link also below the video, to mention that a trade copier service from one of my very best coaching clients has gone live. If you're interested in having your account 100% automatically copied using this master account, then it's something to have a look into. It's an exceptional service and I really strongly recommend it. And again, have a look at the link below this video. If you are listening to the podcast, go to forextradingcoach.com, go to products, and then drop down, you will see a signal service trade copier button there.

So once again, this is Andrew Mitchem, the Forex Trading Coach. Have a great weekend. I'll see you this time next week.

Click here to Register Your Interest in the Trade Copier Service

Check out my suggested Forex Brokers! Click here!

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#233: How To Trade A Trending Market

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How To Trade A Trending Market

In this weekly video:
00:25 – Good strong trends in the market
00:45 – 13 trades closed and a +6% gain for the week
01:24 – How do you know if the market is trending?
02:03 – The great thing about technical trading
03:02 – I trade using retracements
04:05 – You can profit both ways – on reversal and continuation trades
04:52 – An auto trade signal service coming soon

I'm going to explain how you can trade really well in a trending market like we've seen this week. So, let's get into that and more right now.

Hi Forex Traders. Andrew Mitchem here at The Forex Trading Coach. This is video and podcast number 233.

Good strong trends in the market

This week we've had a fantastic change around in the market. We've had some very good, strong trends as opposed to last week when we had the American Independence Day, and we had non-farm payrolls. The market was pretty flat last week [inaudible 00:00:39] this week we've had some fantastic trades, some great opportunities to get into the market and ride the trends.

13 trades closed and a +6% gain for the week

Personally, I've had a great week so far. I've had 13 trades that I've closed out up over 6% on an account on a half-percent risk per-trade. Those have been across a variety of different time frames. Some weekly charts and daily 12 hour, 8 hour, 6 hour and 4 hour charts. Very little time per-day actually spent trading, but just over 6% return, half-percent risk per-trade. 13 trades. That's all. There's three trades still open behind me, they're all in positive territory. So, I'm looking at maybe increasing that to maybe 7% or 8% by the end of the week. So, it just shows what can be achieved.

How do you know if the market is trending?

So, how do you know when the market is trending? You can generally see that in hindsight after it's actually happened. In real time, you really don't know if it's trending, if it's range banned so it can reverse what's happening and that's the beauty of being a price action trader. A technical trader because I can only trade what I see on the charts at the time.

Now, I can have clues on the charts such as Bollinger Bands and things like that. When the Bollinger Bands widen when they get further apart, the market is generally trending more and it's moving further apart. When Bollinger Bands get tighter and closer together, then that means that the market is more range banned and it's flatter.

The great thing about technical trading

The beauty of technical trading is this: If the market is range banned and it's very flat, I generally know where to put profit targets and stop losses because I can figure out those levels according to what's happening in the market right now. Quite often when the market is range banned and flat, you don't actually find too many high-quality trade setups. So therefore, if the market is flat like last week, you don't see much happening. There's not a lot you can trade. You can take some trades, but very few.

This week, the market has been moving beautifully. Think trending markets. Therefore, it's been quite a lot of good setups. High-quality setups and it just gives us the opportunity to take far more trades, and profitable trades because the price action has been moving a lot, and profit targets are being hit on the vast majority of trades. So, it's of great time to be trading when this happens.

I trade using retracements

Now, I trade on retracements. So, that means I'm getting in at a better price than where the market is right now. With these big trends moving, you will get the up-trend, you get little pullbacks and it goes again, and that's a great way of trading. So, it's a continuation trade using a retracement. I‘ve also take a few trades. Now, yesterday was a great example. You'd have noticed on Thursday, a lot of the Yen pairs were suddenly showing strength. There's been a lot of weakness in the Yen pairs, then all of a sudden some strength. Great opportunity to be selling like the Euro, Yen and the US Yen. Not too far because I'm mindful.

It's against the bigger, longer-term trend, but with the strong trends, I am expecting to see some form of exhaustion and an over-brought or an over-sold area, and then look to ride the market back down again. Now that the bigger picture is up, get out of the trade fairly quickly, which we had to today, and then waiting for buying opportunities again to ride the market back up in the overall direction.

You can profit both ways – on reversal and continuation trades

So, you can profit both ways. You can profit when the market is continuing to move up and up and up. Beautiful. Love to do that, but also when it gets over-brought, and it starts to reverse, you can profit on a reversal against the main trend. So, for a reversal trade you definitely need to have all the factors lining up, all the things that we're looking for stacked up in your favour. You definitely want to do that.

On a continuation trade because you are trading with the main trend after a pullback, you can get away probably with a few less factors. More of what I like to call a B-Grade trade setup rather than having to be A-Grade because of the nature of the market will likely to continue in your main direction. So, a great week so far for trading. If every week was like this, it would be absolutely incredible.

An auto trade signal service coming soon

To help you out, what I'm looking at doing is with a client of mine. I'm looking at setting up a signal service. An auto-trade signal service where you can have your MT4 Account copied in identical fashion to the way that he is trading. One of my most successful Forex clients. If you're interested in having your account through a signal service, and auto-trade signal service, basically a mirror image. If you're interested in having your account traded by this client of mine, using identical money management, low risk money management trade approach that he takes. If you're interested, let me know. Put a comment below this video.

You can email me, you can add it to YouTube. If you're looking at YouTube, you can add it to my website. If you're looking at my website right now, or if you're just listening to the podcast, you can email me [email protected] just to express your interest in the trade copy and signal service. We're looking at getting it started up in the next few weeks, probably by the beginning of August. If you're interested do let me know and I can send further details to you.

So, have a great weekend. I'll see you this time next week. This is Andrew Mitchem, the Forex Trading Coach. Bye for now.

Click here to Register Your Interest in the Trade Copier Service

 

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#232: What It Takes To Be A Good Forex Trader

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What It Takes To Be A Good Forex Trader

In this weekly video:
00:30 – You must have a passion for trading
01:44 – Controlling your emotions
02:22 – A willingness to learn and change
03:33 – Be dedicated to trading
04:10 – Develop a strategy that works for you
05:02 – You have to give this some time to work
05:43 – How can I help you?
06:07 – A very high success rate for clients – here’s why
07:07 – Click on the link below to find out more

What makes a good Forex trader? Let's talk about that and more right now.

Hello Forex traders. It's Andrew Mitchem here, The Forex Trading Coach video and podcast number 232. In this video, I'd like to explain about some of the main points you need to have in order to be a good Forex trader, so let's get into it.

You must have a passion for trading

Number one, and I think this is so important, very often overlooked. You need to have a desire to want to trade. You have to have a dedication to trade, but you have to have a passion for trading. It has to be something that you really want to do. Don't just get into Forex training because you've heard somewhere or read online it's a really good way of making some easy money. It will not work for you if that's the reason you're in it. If you're in it for a get rich quick idea, don't do it. If you're in it because you're a gambler, don't do it.

If you would like to become a Forex trader and genuinely have an interest in the markets, an interest in understanding how they work, an interest in making money, of course, but investing and being a good investor, then the Forex market is perfect for you. You have to have that approach up front. You have to have that genuine desire to know what's happening in the market. I think it's really important, often completely overlooked because everybody always jumps into the strategy first. You've got to really sort of enjoy it. You have to sort of look forward to trading each day. When it gets to the weekends, I'm disappointed I can't trade. I look forward to Monday mornings. For most people, Monday morning is about the worst thing that can happen to them because they have to go back to their job again. It's all about having that enjoyment in what you do.

Controlling your emotions

You have to be able to control your emotions. It's really important. You are dealing with money. You are dealing with life. Price action moving, sometimes things can be very, very slow. Other times things could be happening very, very quickly. You have to be able to control yourself, control your mind, understand what you're doing, be very level-headed about what you are doing because ultimately when you're trading with money, emotions do come into it. Again, when you're trading with strategy and you're trading with the unknown and you're trading with probability, because that's ultimately what we're doing, you have to be able to control your emotions and not react in a bad way to the market or what's happening. That's the first two points.

A willingness to learn and change

The third thing that you need to do, you have to have a willingness to learn. You have to have a willingness to change and a willingness to adapt to the market because market conditions do change over time. You have to have a willingness to, not just be completely rigid. Yes you have to stick to rules and yes you have to have a plan, and you have to be able to stick to rules and stick to a plan, but at the same time, as the market changes, you have to be able to adapt. Give you a great example, just yesterday, I held a webinar with clients. We took some trades on the four hour chats. Now, more recently, the four hour chats haven't been showing that many good trades, but this last week, they‘ve been showing some excellent trades.

Whereas I've been trading a lot off the daily and the 12 hour chats more recently, but this past week, less trade. You adapt to what's showing at the time in the market. This week we've had U.S. holidays. We had a holiday in Canada on Monday. We had independence day in America, Tuesday, and then today being Friday, we've got U.S. non-farm payrolls or employment change, so it's been quite a quiet week. Therefore, you adapt and you trade slightly shorter timeframe charts if that's what's showing at the time. That's what I mean by a willingness to adapt as well.

Be dedicated to trading

You also have to be dedicated to what you're doing. You have to be doing this all of the time. When I say that, you don't have to be trading as your full time job, but if you are going to be a trader, don't just sort of trade yesterday and then I might go on holiday for a week and might not trade for another week, and something else happened, I can't be bothered to trade for two weeks. Don't do that. Try and be consistent in your trading. Whatever it is you do, whatever style of trading you have, try and be consistent. Doesn't mean to say that you have to sit there watching charts all the time, all day and night, but you have to be consistent at when you trade.

Develop a strategy that works for you

You also have to find, develop for yourself, or purchase, whichever way it is, and it doesn't really matter, a strategy that works for you. A strategy that not only works across all currency pairs and all market conditions or timeframes, but it's what suits you. You can spend a lot of time trying to develop your own strategy and if you get a strategy that works for you, well done, absolutely go for it. It took me four years of trial and error before I found a strategy that really worked for me, and developed my own strategy. Likewise, you can buy a strategy. You can buy my course. You could buy other courses. Again, it's what works for you. I'm a technical, price action based trader and that's the way that I trade. I'm a technical trader. It works for me. If it works for you, if you'd like to be a price action trader and a technical trader, then I can certainly help you shortcut that whole learning process.

You have to give this some time to work

You have to be willing to give this time. It's so many people I see that give up after a few weeks or a few months and say, “Oh, it's not working for me. My broker's taken all my money,” or, “My wife tells me it's gambling.” All these excuses come out, but ultimately it is very, very good. It's not easy and it does take time. It's like all good things, they take time. It's like a good bottle of wine. It takes time to develop. Whether you're growing something, whether you're producing something, whether you're learning something, anything good generally takes some time and some dedication. Forex trading's no different whatsoever.

How can I help you?

How can I help you to become a good Forex trader? As you probably know, I run an online course, been running that for over eight years now. I have clients in over 58 countries, all around the world, all trading experiences, different types of ages, different work commitments, etc. The list goes on. There is such a massive variety of people who have taken my course. The success rate is absolutely incredible. Why is that?

A very high success rate for clients – here’s why

Number one we have the strategy that works. We have a strategy that doesn't require you to be sitting watching your computer all the time, a strategy that doesn't require you to have to be there at a certain time. We have a huge amount of ongoing help and support. Just yesterday, I held a two and a quarter live webinar for my clients. Every week you can jump onto a live webinar. In the European session, the following week in the U.S. session. They all get recorded so you can go back and watch recordings back to 2010 on the membership sight.

Every day we're posting strength and weakness analysis, where we're seeing the likely movements for the day, specific trades, why we're entering, the reasons for entering the trade, the exact entry and exit levels for you to go and learn. We have great software. We have a forum site where clients can interact with each other, where we post trades on different timeframe chats. There's email support. There's a support site. There's a huge amount of ongoing information on top of the actual strategy itself to help you to become a successful trader.

Click on the link below to find out more

If you'd like our help, there's a link below this video. If you're listening on the podcast and you can't see the link, well just head to TheForexTradingCoach.com and you can find out more on my website.

This is Andrew Mitchem, the Forex Trading Coach. Have a great weekend. I'll see you this time next week. Bye for now.

Learn More about the Video Course. Click here!

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#231: How to use Round Numbers as a FX Trader

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How to use Round Numbers as a FX Trader

In this weekly video:
00:29 – How to profit from using Round Numbers
01:15 – Strong Buying and Selling horizontal levels
01:53 – A level ending in 00 or 50 – price will react at these levels
02:52 – I use these levels in a variety of different ways – with a trade example
04:25 – How you can use round numbers
05:04 – Using a round number to predict my profit target and to add safety to a stop loss
05:35 – Use these levels and do some back testing
06:02 – Many traders fail to look at the price

I'm going to explain how you can profit from the Forex market by using round numbers. It's really important so listen up. Let's get into it right now.

Hey Forex traders! Andrew Mitchem here, The Forex trading coach. Video and podcast number 231.

How to profit from using Round Numbers

Now this is a really important lesson and I would like to explain to you how I use round numbers and how you can use round numbers to your advantage and to help you profit as a Forex trader. See the things that I like to do in trading, I keep things simple. To me it's really important that as a professional trader and as a Forex teacher, I'm teaching people how to trade in an easy, simplified way that is practical. You see it's all well and good having all these systems and lines crossing over and different things going on, but if it's not practical and it's not something that you can do in real time, and you can do with enjoyment as in like you're not trading all of the time, than it doesn't really mean a lot. So let's talk about round numbers because they are very, very important.

Strong Buying and Selling horizontal levels

The reason I like them is I like psychological levels, reasons why people are buying and selling. I also love the use of horizontal lines on my charts. Now you might say why horizontal? Well, a horizontal line does not move. It's always fixed. It's not like a moving average or a MacD or RSI or one of those other, you know, sort of squiggly lines on your charts that are moving all the time.

A horizontal line is a horizontal line. I can see it, you can see it, it doesn't matter who your broker is, what your platform is. It's there for everybody to see if you know what you're looking for.

A level ending in 00 or 50 – price will react at these levels

So think of it this way, a round number, and I call a round number something that ends in a 00 or a 50, so the price of the pair might be 0.7000 or 7100 or 7150, something like that. Something ending in 00 or 50. Think as in like why the price is reacting at those levels, so go back to a scenario we all know, let's go to a shop.

We're buying something and the price is $100 or $101 let's say, but that doesn't happen does it? Because when you buy something from a shop the price will be $99 or $99.50 or $99.99, you know, something like that. Psychologically round numbers are there everyday in what we do, what we buy, so it's no different to trading Forex. Think of the 00s and the 50s.

I use these levels in a variety of different ways – with a trade example

I love to use those levels in a variety of different ways. To give you an example, just last night I took a trade on the New Zealand dollar, Swiss Franc on the four hour chart, you can go and find it on your charts. It was taken on the 29th of June, go and find it on your charts.

The price bounced through the 70 level, 0.7000 and it showed a really good set up and I could use that in a few ways, the price, and I was selling the New Zealand Swiss Franc. The price had already closed below the 70 level, the 70 cents level. It meant that I could then use that as an area to put my stop loss above that because in order for the price or for the trade to fail, it meant that the price then had to of rose back up through 70 and beyond in order to stop me out of the trade.

In the end the trade worked beautifully. I had a 2.6 to one reward to this trade, which meant at half per cent risk because you know that that's the way I trade, I made a 1.3% account gain and I posted that trade as I took the trade to my clients on our forum site, and I also posted the result and you can see, you know, when I took the trade and after the trade's finished. The great thing was I was asleep when the profit was hit. I took the trade at 9 o'clock on the Thursday night my time, here in New Zealand. Woke up this morning I'd made 1.3% on my account with that one trade, so it's a great trade.

How you can use round numbers

So how can you use round numbers? Well, when you see the price reverse, let's say, and it goes up and it hits a level and it hits say psychological bounce level, a round number, it then reverses for a reason. So if a round number's the potential reason, that's great. In my example on this particular trade, I used the 70 level, the price had gone through 70 level and closed below it on a sell trade, I could then use the 70 level to say if the price comes back, it's not going to break through that 70 level and it went through by about one pick, and then continued down again into my favour, into my profit target.

You could also use it as a profit target. Well let's say my profit was at 69, 0.6900. I wouldn't need the price to go, I don't want to think that the price is going to go through 69 to get to my profit target, I want my profit target at before that level. I mean my profit target wasn't there. I'm just giving you an example. My profit target was using a fib level, but as an example I want to get profit out of a sell trade before the price has to go through the next round number.

Use these levels and do some back testing

So use round numbers in your trading. They are horizontal lines. They're there on your charts, plot them on your charts, use them. Go back and look at charts, do some back testing and have a look at levels where on any currency pair where the price restored or bounced at a 00 or 50, they're everywhere. Really, strongly encourage you to use that in your trading. That one tip alone could make you an absolute fortune from your trading because it just really helps.

Many traders fail to look at the price

You know people that use all these pretty patterns and all these charts and indicators and things, you know, they fail sometimes to look at the actual price, so it's really important that you look at the price on the right hand side of the chart. What is the price of this currency pair and why? Hope that helps, round numbers are very, very important.

This is Andrew Mitchem the Forex trading coach. Have a great weekend. I'll see you this time next week for more trading tips and information. Bye for now.

Learn More about the Video Course. Click here!

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#230: Do you want to trade 5 minute FX charts?

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Do you want to trade 5 minute FX charts?

In this weekly video:
00:22 – Should you trade 5 minute charts?
01:05 – Unrealistic way of trading – too much chart time needed
01:48 – Trading at silly times of the morning
02:45 – Less strength on a 5 minute chart
03:32 – Trading the W1 and D1 charts while in the US
04:22 – Less than 1 hour per day to trade full time
04:50 – 14 Continuation pattern trades made +5.5% gain last week
06:08 – Software to trade offline charts
06:34 – Conclusions?

Why should you trade the five minute forex charts? Let's talk about that and more right now.

Hey, forex traders, Andrew Mitchem here, The Forex Trading Coach. This is video and podcast number 230.

Should you trade 5 minute charts?

I'm going to talk about five minute chart trades. Why should you trade them? Should you trade them? Let's talk about that and see what your answer is in a couple of minutes from now. The reason I want to talk about five minute charts is I had an email from a guy in the UK called Michael. He came to me and said, “Look, Andrew, I'm struggling with my trading. I purchased a course.” I'm not going to name you the course, but he said, “Look, I purchased the course, been doing it for a little while and I'm getting nowhere.”

I said to him, “Okay, so tell me about the style of trading.”

He said, “Look, it's all based on five minute charts.” Instantly for me that's like a bit of a warning system going off there.

Unrealistic way of trading – too much chart time needed

I said, “Okay, Michael, what's the issue? Why can you not trade the system?”

He said to me, “Well, it's requiring a lot of” his time, a lot of the chart time, like he's sitting at the computer a lot. He's got work to do. He's got a wife and kids to commit to. He said, “I just can't commit that amount of time to sitting there watching charts, and when I do sit there watching charts, I'm feeling like I'm forcing trades to happen. I'm overtrading. I'm constantly scanning different charts, different currency pairs. I'm on five minute charts looking for setup, scared to miss something, and almost like a gambling mentality, that constantly having to do something, scared to miss a trade.”

Trading at silly times of the morning

He also said that he has a mentor with his course who's over in America. He gets up at like three or four o'clock in the morning to trade the European session. Michael's there trying to go to work, and he's trying to trade. There's people getting up at like silly o'clock in the morning, crazy times in the morning, to trade these five minute time frame charts because they think they have to be there at that time trading these short time frame charts. You can get where I'm going with this. To me it's crazy. It's not sustainable. Even if you're making money from trading five minute charts, if you want to do that then maybe select say like an hour or so at a time that you're going to sit and do that.

My system works on five minute charts but I don't trade five minute charts. The same principle applies, but the downside is also you have to commit yourself to sitting watching the computer. You feel like you're forcing trades because you think [inaudible 00:02:40], therefore I'm going to look for trades.

Less strength on a 5 minute chart

The short time frame charts, if you're a technical trader like I am, a five minute chart doesn't really have a great deal of relevance because they still do work technically, but they have less relevance and less strength than say like an hour chart, or a four hour chart, or a daily chart, something like that.

The other thing is also you have to be really careful and mindful of news events. You also have to understand that the spread, the cost to take a trade, will have a significant impact on your overall profitability if you're looking at small time frame charts. All these things you have to weigh up. My conclusion is why on earth would I want to sit looking at the charts all day trading five minute charts. I just think it's crazy and it's not achievable long term. Give you some ideas.

Trading the W1 and D1 charts while in the US

As you probably know, I just spent almost three weeks in America. I came back last week but I spent almost the three previous weeks in America. I just traded the weekly charts once a week and the daily charts once a day. Five o'clock New York time, their afternoon time, looked at the charts, took about ten minutes to scan through the charts, took a trade if there was something there, moved on. Very easy to do.

Now back home in New Zealand, I'm trading the same weekly and the daily charts but when the daily charts change over, I'm also looking at four hour charts, and six, and eight, and twelve hours at the same time. Then I'm looking at four hour charts as and when I can during the daytime every four hour increments. Then five A.M. eastern standard time, which is currently my nine P.M., I'll look at the four, six and twelve hour charts again. In the daytime, I'll look at the eight hour charts once more if I can.

Less than 1 hour per day to trade full time

Total time of trading less than one hour per day. I'm a full time forex trader less than one hour actually watching the charts looking for new time frame, a new setups because I know when to look at the charts. I know I can only look at a new potential trade setup upon the completion of a candle, very, very easy to have other things going on in your life, far more enjoyable than to sit watching five minute charts. I can promise you far, far more profitable.

14 Continuation pattern trades made +5.5% gain last week

Now last night I had a webinar with clients. I love the webinars because of the shorter time frames. Yes, I do go down and look at say like one hour charts, et cetera. On that webinar, I explained to clients that the previous week, last week, I found fourteen trades that had really good setups, as a continuation pattern on the four, six, eight, and twelve hour charts, just fourteen in the entire week. If you had taken all fourteen of those, which realistically you probably would not because of different times of the day being asleep or at work or something, but let's say you did. You'd have made a five and a half percent account gain if you'd taken all fourteen of those trades that setup as continuation patterns.

I'm not even counting reversal patterns. I'm just looking at the higher probability continuation patterns. Fourteen trades in one week, maximum five and a half percent account gain if you'd taken all of them. Pretty amazing results for such a small amount of time. When you think about that, it's something that you know when to look at the charts, you know what you're looking for if you understand the way that I trade in my strategy. It's all taught in the course but if you understand what you're looking for, very easy to scan through a chart and go, “No, no, no, no, no. Yes, potentially trade then. No, no, no, no, no,” and you go like that. You can look through four hour, six hour, twelve hour charts, very, very easy to do.

Software to trade offline charts

I have some great software that allows myself and my clients to trade what we call offline charts, which are the made up charts, nonstandard empty four charts, such as like six and eight and twelve hour charts, fantastic way of trading, high reward to risk, low stress on the individual, very easy to plan your day around it.

If you'd like to know more, just send me an email [email protected]

Conclusions?

Conclusions, you make your own. If you want to trade five minute charts staring at the screens all day, or more relaxed and far more enjoyable, far more profitable and by the way, you're not feeding your broker's pocket by trading the higher time frame charts. You're cool. If it was me, I'd go along with time frame.

This is Andrew Mitchem, The Forex Trading Coach.

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#229: Continuation Patterns Give Better Results

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Continuation Patterns Give Better Results

In this weekly video:
00:33 – Back in NZ after spending a few weeks in the US training new and existing clients
01:20 – Continuation patterns and Reversal Patterns
01:58 – Looking for Continuation Patterns – Software to help
02:30 – Examples of trading a Continuation Pattern
03:36 – A trade example from today’s webinar – made clients a +1.15% gain
04:24 – More from 1 trade than you’ll get in 1 year from a savings account in the US

I'm going to explain why I much prefer taking continuation patterns. Let's talk about that and more right now.

Hey, forex traders, Andrew Mitchem here, The Forex Trading Coach. This is video and podcast number 229. I'm going to talk about why I much prefer taking continuation patterns as the majority of my forex trading setups as a technical trader.

Back in NZ after spending a few weeks in the US training new and existing clients

So, back in New Zealand, after spending the last two and half weeks in the U.S., had a fantastic time over there. We did some free events and some live inperson one-day events in North Carolina and in Washington D.C. Had a great time, met some fantastic people, and we achieved some amazing success.

Really, actually rewarding to meet existing clients who have been with me for a long time. I had some clients fly right across from the other side of America, from San Francisco to come across to train. I had a number of new clients as well. So, it was really interesting to meet those existing clients in person and just to see how well they're doing and to help new people with their trading. So, that was all about America. Back in New Zealand now this week.

Continuation patterns and Reversal Patterns

So the video today is about continuation patterns. So, as a trader … And I explained this to all of the people I taught last week. I'm looking for mainly two types of patterns. One is a reversal pattern. The other is a continuation pattern. Now, reversal patterns on the charts look really good. They're very rewarding to see. They look dramatic.

As an example, there's a large uptrend. We're taking a sell trade because of a technical reason to do that, and the market drops in our favour. The opposite, of course, is a large downtrend, we're looking, we're taking a buy trade, the market reverses back up in our favour. Very dramatic, look very good, but slightly higher risk.

Looking for Continuation Patterns – Software to help

So, to counteract that, my preferred way of trading is to look for a continuation pattern. I've got some great software that works on the MT4 platform. My clients all have access to it and it helps to give us a few reasons of why continuation pattern is likely to form and to give us confirmation that the reversal has happened, and the continuation is now back to resume, giving us an ideal opportunity to jump into the market at that point and ride the existing trend after a retracement or after a slight pullback.

Examples of trading a Continuation Pattern

So, what does that actually mean? Well, let's say the market's trending upwards. As it's trending upwards, there may or may not be opportunities to ride that, but what I'm preferring to do is look for a retracement or pullback and then an opportunity to ride it back up again. Take the opposite of that, the market's moving down, and then we're looking to wait for the retracement or the pullback and then look for opportunities to take the market down again and to take short positions, sell positions as the continuation of the main trend happens after a reversal or retracement. So, it's a very safe way of trading. You blend it all together with everything that I teach, everything that I'm looking for, and you add to it the bigger picture, the longer term strength and weakness, which again I teach in part of my course.

A basic version is available free of charge on my website every single day for you to go and have a look at, but when you blend all of this together, the bigger picture, the trend, the retracement, all the pullback, and then the opportunity to ride the trend in the same direction again. That is when you have probability trades and very good reward to risk.

A trade example from today’s webinar – made clients a +1.15% gain

To give you an example of a trade that was just taken just a few hours before I recorded this, in the U.S. session webinar today, which is for my clients, and only for clients, we had a buy trade on the Canadian, Japanese Yen four hour charts. A fantastic continuation patterns set up on the charts. And it worked [inaudible 00:03:55].

It retraced to the exact levels that we're looking for, for the entry, and it moved to the profit target absolutely perfectly within one candle, which is four hours, being a four-hour chart and hit the for-profit target. So, clients who follow that one trade with half of 1% risk made, a 1.15% account gain, which is an absolutely fantastic reward considering this was just one bar.

More from 1 trade than you’ll get in 1 year from a savings account in the US

Now going back to America, you wouldn't get paid 1.15% on a normal savings account in an entire year. We just did this live in front of all clients who are on the live webinar in one bar. It just goes to show what can be achieved if you wait for the right setups and you don't take hundreds and hundreds of setup, so you wait for those higher probability setups. The way that I like to trade personally is wait to see them on the higher timeframe charts.

This was a four-hour chart example. The trade worked beautifully. So, 1.15% account gain in one candle or four hours taken live in front of clients. That is something that excites you and it really should because something … There's a high probability low-risk trading style. If you'd like to find out more, you need to jump onboard with my course.

So, once again, this is Andrew Mitchem, The Forex Trading Coach. Have a great weekend. I'll talk to you this time, next week. Bye for now.

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