Why the Daily Trend is so Important
In this weekly video:
00:34 – Currencies are moving all the time
01:00 – I look at the Daily charts at the close of the candle
01:42 – Analysing the charts
02:30 – Adding probability to your trade
03:20 – Free daily analysis published each day
03:39 – Client makes +18% account gain on a live account in 9 weeks
04:24 – I’m heading to America this weekend – come and join me live in the US
Why is the daily trend so important to your trading success? Let's talk about that and more right now.
Hi, traders. Andrew Mitchem here, The Forex Trading Coach. This is video and podcast number 226 and I'd like to talk about and stress the importance of understanding the daily trend and the likely daily direction, and how that can make such a big difference to your overall trading success.
Currencies are moving all the time
Currency pairs are moving all the time, different currencies are moving all the time. Some are strong, some are weak, some are going sideways. We really need to know how do we use that information to our advantage because things are changing. News events come out, price hits certain levels, political events, whatever it might be, things are always changing. It's very hard to know what the trend is right now unless you make some form of analysis.
I look at the Daily charts at the close of the candle
What I do is each day, I'm looking at the daily charts on the close of the candle. Upon the completion of the close, the 5 PM Eastern Standard Time, that's New York close of day chart, on the daily chart, I go through the different daily charts. I'm looking for stronger currencies and weaker currencies and then, putting the two of them together. You have a very strong currency that's strong against all others or most others, very weak currency that's weak against all others at that time.
Putting the two together and looking for ideal currencies that are likely to be moving up or currencies moving down, but it's not just a case of looking for strength and weakness only.
Analysing the charts
You then need to analyse what part of the chart that price occurs in. You're looking at candle patterns, you're looking at the formations or the candles, other factors influencing that actual candle pattern right now. At what part of the chart is it appearing in? You're putting all those things together and then, what I'm doing is I'm making an analysis of where I see which currencies for that particular day are favouring buy trades and which are favouring sell trades.
Now it does not mean to say that by the end of the day if I'm looking for buy trade, it does not mean to say that that currency will end up closing higher than it opened. If it does, fantastic, but it doesn't mean to say that will happen. What it means is when I then scale down and look for trades within the day.
Adding probability to your trade
If I see trades within that day that are setting up in the same direction as my longer term trend and longer term direction, surely that adds more weight and more probability to the likely outcome of that trade being a successful trade and in my favour.
What it does also is it helps to eliminate what I call false set-ups, set-ups that technically can look quite good, but they're against that bigger picture, against that bigger trend. Now, of course, some of those will work, but the probability is less so if it's trading against the longer term picture or the bigger likely direction for that pair for that day.
I like to use trends and trade with the trend, not always just for the trend. Sometimes after, I retrace and then I pull back and then looking for the trend to move down or up, whichever it's doing after we've had some form of retracement. It's a really important point there.
Free daily analysis published each day
But I publish free information on my website daily for the public, but I publish a lot more specific information, of course, for my clients on the membership site including specific daily trades with the actual entries and exits and reasons for the trade. That's the first thing I wanted to mention.
Client makes +18% account gain on a live account in 9 weeks
A couple more things, I held a webinar just yesterday for my clients, a live webinar, two-hour webinar and I took some trades live during the session and I had a comment from a client in America called Javier. Javier's been with me for nine weeks and he's been posting on my forum quite actively for nine weeks. He's made an 18% gain, 1, 8, 18% gain on his live account in the nine weeks since he's joined me. It's just a fantastic result and it just shows what can be achieved if you follow the strategy, the setup, and you contribute to forums, etc., like to my forum, not general forums, but my own forum for clients and it shows what can be achieved when you put that time and effort and commitment in. It's the second thing I wanted to mention.
I’m heading to America this weekend – come and join me live in the US
The third thing is on Sunday, and today, right now as I'm recording this is Friday so, in a couple of days from now, I'm heading on a plane from Auckland through to Houston in Texas, in America and then, the next day Houston up to Raleigh in North Carolina. Next week, I'll be in America, there for almost three weeks holding some free information evenings in North Carolina and then followed by some live in-person training, some one-day event trainings on the Saturday and Sunday of next week and then the following week, we head to Washington, DC and we hold some live free information evenings and then again some live in-person Forex training days for people who wish to become clients. Really looking forward to that.
I'll be joined on that trip by Paul Tillman who's a client of mine who's been with me for just over two years. Paul averages 3 to 4% consistently per month on his account on live account since he's joined me and he is going to be a representative of The Forex Trading Coach in America and so, I'm really looking forward to meeting up with Paul in person and meeting up with anybody who, like if you're in America, you're watching this and you're half keen on learning to become a good trader, you really need to be at one of those weekend events. I'll put a link to those events below this video. If you're watching, I have a video on my website or on YouTube, there'll be a link below. It would be great to see you in America next week or the week after.
Once again, this is Andrew Mitchem, The Forex Trading Coach. Look forward to talking to you this time next week when I'll be in the States.