Trend lines - forex trading secrets book pdf

Trend lines ~ forex trading secrets book pdf

Now we are about to embark on what is almost sacred territory for me, trendlines. Ahhhh..... What a most glorious word. Trendlines are one of my favor trading tools. If there is a pot of gold at the end of the rainbow in trading for me, I would have say that it is trendlines.

Why?????? Because using trend lines properly will put you on the right side of the trade most of the time. I personally use trendlines in all of my trading. Now for those of you who have used trendlines and it hasnt worked out for you. Please remember that the shorter the time frame you trade, the more your trend is likely to change. My advice is to find the prevailing trend and trade in harmony with it. Example, if the trend is bullish (going up) on the 30min charts and you trade the five minute chart. If the trend is bearish (going down) on the five minute chart, dont take that trade. It is much more likely that the trend will reverse on you than if you wait for a trade that is in harmony with the bullish trend.

Please allow me to elaborate. If you are trading that five minute chart and price has dropped 30pips, you need to wait for a good candlestick reversal confirmation and a trendline break, before going long. Candlesticks are very often the first sign of a trend reversal. The break of the trendline is just further confirmation. If you trade the five minute chart, you want to get in and get out fast!!! Remember on the five minute the direction of the trend is going to change frequently. The shorter your time frame the less reliable your trend, or your candlestick confirmation. On the smaller time frames, snatch your money and go!!!!!!!!!

Ok........What is a trend? A trend is the tendency for price to move (overall) in one direction for a period of time. I say overall, because you get price retracements and corrections. That is when price temporary takes a pause or temporarily reverses from the major trend.

It is essential that if you chose to use trendlines as part of your trading strategy that you determine the direction of price on a larger time frame, so that you know how to best trade your strategy and for how long.

For example if you are in the mist of a bullish price trend on the daily chart and it is bearish on the monthly chart, then you need to be aware that price will reverse in the direction of the major trend at some point, sometimes in as little as 2days. However if you are bullish on the both the daily and the monthly chart, you stand a much greater chance at a longer more successful bullish run.

The reason to determine your trend before you begin trading is because when you sit in front of the monitor all day with price pullbacks and spikes, it is hard to determine the primary trend.

When I first started to trade, I would sit up and watch price move for about 15-30 mins and some times longer, because I wanted to make sure that I was on the right side of the trade before I committed my hard earned money. I would wait just long enough until the end of a rally or dip and Id find myself on the wrong side of the trade and couldnt figure out why. It was almost as if the broker was just waiting for me to put in my order before price went the other way against me. My early trading life was extremely frustrating and eventually I went broke. I was staying up most of the 24 hours trading and traded all three markets; studying my butt of in between. I stretched my brains with all of the complex theories, and learned all of the indicators, and was still getting killed in the market. After all of that, I had to find what worked for me. Price action.........that is it and I use trendlines and candlestick formations to help me maximize my trading strategies.

Your trendline is diagonal support or resistance, it is that barrier that price is least likely to break. The longer the time frame the more reliable your trendlines. Though trends eventually break.

Traders Whiteboard #1 Traders White Board #1

Drawing trendlines.

To determine if you are in a bearish or bullish trend you will need to draw trendlines...........

For a bearish trend ( a trend in which price is making a series of lower highs) you want to draw your trendline connecting two relevant/major highs, then your trendline should project itself from there.
This is a picture of a downtrend with a bullish break at the end.

Video Lesson: Trading a Downward Trending Market Click Here

For a bullish trend ( a trend in which price is making higher lows) you want to draw your trendline below price, connecting relevant lows, then your line will project itself from there.

This is an uptrend with a 20period moving average.

How to find the Trend and How to TRADE the Trend Video Lesson Click Here

Lastly I want to touch on a trend channel. A trend channel can be bullish or bearish; but in a trend channel you want to connect both the relevant highs and the relevant lows to form a price channel that forms diagonal support/resistance.

An example of a bearish channel. This is a longer term channel, but I included enough of it so that you can see how price bounced off of support and resistance clearly defining buy/sell zones.

I do want to warn you that price will not always fit perfectly in your trend projections, it can be quite naughty sometimes, but we will discuss that in a later blog "When trends turn"

Until we meet again my Friend.

Happy Trading!

For any questions you may contact me at TradersFriend@yahoo.com

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This blog is not in anyway an enticement or solicitation to trade in the Forex Market. These tips are for informational purposes only and are not to be substituted for legal advice or council. I have written this blog in hopes that it will help you to avoid some of the terrifying pitfalls I had in the Forex Market before I learned better.


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Patience - forex trading books in urdu pdf

Patience ~ forex trading books in urdu pdf

The biggest challenge to trading once you learn what you are doing is the waiting. The waiting makes you itchy. You have got to trade or bust. Staying out the market is probably the hardest discipline you will have to learn to master as a trader. Itchy is dangerous. It is that horrible nagging feeling(almost a compulsion) that you are going to miss out on something. Every nerve in your body is screaming at you to jump on this opportunity NOW before it is too late and you miss out.If you have been trading any length of time, you know what I am talking about; and there are a few times that you can remember missing out, then you begin to chastise yourself for not getting in at the most opportune time. That missed out recording is still playing in your head. Now I want you to remember more accurately all of the time that you followed that itch because you were so sure of the markets direction and got your butt handed to you. Then you cursed Forex, your broker, and kicked your little dog Mike. You went around all day in a funk because of your lost, and if you continued to trade trying to make your money back, you only dug a dipper hole.

I know these things, because I too have been there, except I dont have a little dog(smile). As a recovering type A personality, it was and sometimes is to hard to wait for the market to do what it is I want it to do. The best thing to do so that you dont over-trade is to turn off your monitor, do something else, and wait for a valid reversal signal on a larger time frame chart and then trade.

When you know better psychologically but, you just have to get in or bust, a practice account comes in handy. That way you can play, test your strategies and instinct without getting killed. Trading emotion without logic will get you killed.

When you are not the most patient, times of deliberation and congestion are the worst. That time is designed to work on your nerves, make you antsy, distract and confuse you and cause you to make big mistakes. It is a very successful deterrent and works on most traders, we get caught up, then we have made a commitment with our money that we usually soon regret. Trading isnt hard because it takes a rocket scientist to do it, active trading is hard because in order to trade successfully, you must master and conquer YOU.

By all means stay out of deliberation/consolidation, where price is in a tight trading range. You are much more likely to have successful trade if you wait for a valid breakout from the tight trading range ( a close of a breakout candle below your support/or above your resistance level), to add to the probability of your success.

Price movement is the next most important behind emotional control. No matter what economic reports or the experts say; the charts always tell the truth. They tell you where the real money is headed. The longer term charts are the most accurate, trading the smaller time frames are more of a gamble.

IF YOU ARE NEW TO FOREX, PLEASE DONT TRADE THE NEWS, UNLESS YOU HAVE BEEN TAUGHT BY A PRO! NOTHING WILL KILL YOU FASTER THAN THOSE WINDFALL GAMBLES!!!!!!!!!!!!!

ALSO TRY NOT TO HAVE AN OPEN POSITION DURING MAJOR ECONOMIC NEWS BECAUSE OF THE EXTREME VOLATILITY OF THE MARKET

You want to give yourself every possible advantage by trading when the odds are most in your favor. Trading in harmony with the longer term trend will give you a tremendous advantage. When your long term trend is down, you want to sell the highs with a valid trend-line rejection or candlestick reversal confirmation or both. When the trend is up, you want to buy the dips with a proper trend-line rejection or candlestick reversal formation or both. Remember this is not Vegas, it is a business. We dont gamble here.

Develop the discipline of patience, stay out of consolidation,(let the market tell you what it is going to do, dont try to out guess the market, the market is always right), and trade with concrete rules.

A very successful trader once said that he made money not through his thinking, but through his sitting(Patience). (The patience to wait for a proper turn in the market and the patience to ride out the turbulence until he hit his profit target)


HAPPY TRADING, LIVE IN LOVE, HARMONY AND PEACE! STRESS IS A GREAT ENEMY TO SUCCESSFUL TRADING. TAKE A BREAK, BREATHE AND RELAX!

Write me if you need me. You can find me at TradersFriend@yahoo.com

This blog is not in anyway an enticement or solicitation to trade in the Forex Market. These tips are for informational purposes only and are not to be substituted for legal advice or council. I have written this blog in hopes that it will help you to avoid some of the terrifying pitfalls I had in the Forex Market before I learned better.







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