keep your trading simple like the big players
TRANSCRIPT
You’ve heard how simple trading can be. This does not translate to "easy" however
The work you do to find trades, manage risk, and
other variables that make up the act of trading, is simple.
USDCAD
A simple patternA simple entry
A simple risk reductionA simple exit from a trade
CONTEXT- Steady uptrend in the USDCAD
- Two weeks in Jan of large momentum moves- 10 weeks of the market in a pause
When the channel is broken with momentum
Channels can highlight trading ranges, trends, and
even pullbacks.
A simple tool with many uses. I just consider any type of channel a consolidation.
Sloppy Range
Neither side is willing to push price in a direction which
indicates a rough agreement on the current price range.
Hindsight is where we all are highly successful!!
It's a reversal type candle of course but the highlight for
me was that it probed below the bottom channel and was
quickly rejected.
The details behind the scenes was not important but this failure test was an
entry for me into a long trade.
You don't need to know the reason behind
everything that happens
I did not wait for the close of the daily candle because
location, context, and sharp rejection was enough for me
to risk on this trade.
STOP ZONE
Stop location can be difficult due to angle of price movement
You may want to experiment with using an ATR type of
stop with pullbacks
One easy was to cut risk is to take some trading profits at 1R
Keeps your equity curve more inviting as well!
www.netpicks.com/risk-managment-trading/
My trade trigger?Obvious reversal candle at a prime location in a market
that is in an uptrend
It was impossible to ignore that candle and
my stop was ramped up just below the low.
I was taken out of this position leaving me USDCAD
flat with 134 pips on the scale & 53 on the profit stop
There are clues on charts however not every clue
builds a case big enough to base a trade on.
Not every move is playable
Simple patterns.Location.
Simple trading tools and getting the most of it until
the time comes to exit