Trading Patterns & Strategies that works to become full time trader

I've been successful in identifying the approach and strategies that works in long term trading. Trading requires test and skillset, which need to be tested in every type of market scenarios. Recent price structures does not allow or require to remain in trade for long term periods as volatility is at 10 year's high which means the average of 10 days can be seen in a single session or a day. VIX index jumps to $90 which was not seen in decades.

I often take strategies and risk reward as the first consideration as compare to market news or fundamentals that are driving the markets. If I see an opportunity which is no in line with my strategies, then I usually avoid trading for days or even weeks. Fundamentally can be supportive or recent trend structure or building of a trend but if profit targets are not seen or a good level is not seen, then you must wait for things to settle and need to watch a level when it is test. Tests usually offers good risk Reward opportunity or even at time it offer counter trend good reward opportunity .

Counter trend trades are very powerful as compare to trend trading because when we see a spike due to fundamental reason, then usually swings are large and require tests & when you see they usually reverse then bottom or top before the news are tested in between trend. I usually rely on counter trend trades and 90% of my trades are counter trend or you can say I trade on short side of the market and I'm prolifically a seller .

I'll cover lot more on topic with trading recommendations in the weeks and months to come. Please stay tuned and spend atleast 3-4 months on the blog and see what changes it can make to as a trader, which took me 8 years.

How to trade Head and shoulder pattern in trading

In this post, I will guide you on how to trade Head and should patter in Trading.

Head and shoulder pattern is the mostly and best trading method for forex and commodity and stock market trader. Reason being the very Good Risk reward opportunity.

Risk Reward in Head and shoulder pattern trader can be calculated with measure fibos from Swing low to swing high or even extension target if there is a measure move. By measure move I mean to say if there are equal swing high after breakout of strong support and resistance.

You first need to make some changes way you trade as Mostly all pattern at sometime frame show head and shoulder pattern but they have very high failure rates and very rare opportunity triggers the desired result. Reason by Left Shoulder kink.

Left should is the most important point to be considered when You trade head and shoulder pattern. Left should rejection and price retest those levels is critical after engulfed and make new highs. Specially, if new high is made after breaching strong level of resistance (Vice-e-versa for support).

Download my Supply and demand Strategy e-book on Crude Oil Futures here

In the example above, we have witness a strong breach resistance with purpose & while price get back to the area, it hold the area but there were no considerable rallies to count for possible buyers at those level. Price easily breach the area and test the support below and try to create a base around the previous swing low.

Also Read :- How I manage to pick top in Crude oil WTI 

Price rise and create a stop hunting zone market with blue horizontal line, After few sessions price try to test the rising trendline but stalled again at the resistance. So called move is know as stop hunting zones. There are possible sellers above the stop hunting zone & When Price usually breach such levels, then It use to create panic with a candlesticks pattern above the hunting zone, which was in this case as double marabozou bullish candles. All the hints of possible strong decline to test the next support zone & that is why I want to check this post and over and over again to get desired results when you try to trade head and should pattern in trading.

This is all you need to know when you trade Head and shoulder pattern, I would recommend to put stops just above the swing high of last retest zone and target atleast 4 to 5 times of reward . If there are new zone below or strong support, avoid trading such patterns and work on your risk reward. There are easily couple of very good setups in  a month on every pair visible in a month.

Stay tuned for more & happy Trading .

Swing trading opportunity in usdchf amid US dollar weakness

I would like to start the blog again with the setup that offer a good swing trading opportunity. Chart below is of USD/chf chart, which tells us that there were efforts to break above if you look at blue rectangle rotation area. Area was rejected earlier as well and you would also see that previous efforts to test the areas resulted in rejection and test of the strong support market with red rectangle.

Set of pinbars in these areas are very strong sign of weakness and Friday fakey setup bar with a long tail pinbar is strong example of price will test the support again and breach the support marked with red rectangle will give away the path for next support lying around 0.9750.

Momentum is getting weaker with strong rejection around resistance

Price action is itself a big blow to the bulls as we have witness strong weakness around parity level earlier as well. We had strong five day weakness if you see the left which took almost a month to test. Then we had a fakey setup bars which were rejected of weak support & now we finally setting up for a strong decline through the support and possibly new bearish trend will follow soon.

Entering here would be more aggressive entry and in case you look at weekly chart there is strong rejection from 1.0050-80 area as well which was the source of decline on weekly as well. On monthly, we can also spot a strong bearish candle which close just above the support 0.9655. I would target that area if I'm given an entry of rejection on weekly bar. Max stop out price Action zone is 1.0095 area. So more safest trade would be entering around 1.0070 and stops 1.0110 & target would be first 0.9850 & then 0.9600

I would prefer test of 50% of the Friday bar which will give us small stops with a stop loss around 1.0050 & target area first should be around 0.9850 & then you can even hold on for more gains or look to close the half or trail your position with breakeven plus 50 or there about.

How to make profits with Swing trading strategies

For all the readers, who want to make consistent profits without any stress and low risk trades, can subscribe to my blog.

HOW TO BECOME A PROFITABLE FOREX SWING TRADER

To become a successful swing trader, which is not easiest thing to do around and When you first steps in Forex trading then it might seems as easy as anything but you better believe that It is not easy as lot of experience is needed and that is what I have done by sharing my experience and hard work of years.

Its all about step to step work that you need to put to find an effective and reliable swing trading strategy which helps your style and still gives you consistent money for your hard work.

Role of discipline and patience in Swing Trading

Then second step is to strictly follow the rules of your swing trading strategy and this requires discipline because you should be able to follow the rules of the trading system even when you are suffering some loses and the natural inclination would be to switch trading systems (or look for a new trading strategy) or even worse, trade without any trading system.

Most important role of Risk Management

The third step is you have to manage your trading risks. Trading is risky, there is a risk of loss of your money. Remember that.

Be careful of the time when you come to a stage where you have been winning consistently and you think you know it all…

The moment you think you are a better swing trader, that’s when the biggest trading mistakes are made and guess what? The Forex market will humble you sooner or later.