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Forex Trading Tutorial: Costly Mistakes in Trend Trading

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Forex trading tutorial
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This Forex trading tutorial video demonstrates big mistakes that beginners and even more advanced Forex traders make in trend trading currencies.

To become a successful trading, you must learn Forex trading step by step from home with a great Forex training course, this this lesson will help you avoid pitfalls that even well trained traders fall into.

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FOREX TRADING TUTORIAL

Welcome to this Forex trading tutorial. Actually this lesson I’m showing you on Forex applies equally to stocks, commodities and futures. Whatever anything you can trade.

Trend is often defined as higher highs and higher lows. That is incorrect. Why is that not a trend? The dictionary definition of trend is “the extended general direction.” Therefore that means a long term move. Whatever you decide to use for measuring trend whatever tool you decide to use it has to measure the long term move. Otherwise it’s not measuring trend.

LEARN FOREX TRADING STEP BY STEP

The fact that trend is always a long term move that then therefore makes it always a lagging indicator because before you can determine whether you have a trend or imagining did a lot of data and once you have a lot of data and it plots it and it’s confirmed well guess what.

A lot of professional trend traders who make money trend trading often have a worse than 50/50 win loss ratio that they make money because they make up for it with an excellent reward to risk/ratio because they’re really good at keeping the losses small and letting their winners run. For me to be comfortable trading, I have to have a better than 50/50 win loss ratio.

HOW TO START FOREX TRADING FROM HOME

I have to use other things too. Nothing leads the market all the time. In trading, we’re not predicting the future really, but mathematically there are times when you can determine the short term move in the market before it shows up on price

This isn’t just just about the long term direction. Higher highs and lower highs only measure short term direction. So we have here a lower low.

BEST FOREX TRADING COURSE

And so a lot of people would say okay well even if it’s not a long term trend at least it’s a downward indication because you have a lower low and therefore that is a bearish pattern. Again wrong!.

That is a short term bullish pattern. And the reason is because with trading, the devil is often in the details one.

I’m just going to tell you what it actually means mathematically and also from a market profile perspective which is based on the auction theory which I agree with 100 percent by the way. This Candlestick here means that yes the market during this period of time and this is a daily chart. So during this day the market did make a lower low but it opened and closed up here. So the overall sentiment that day after all is said and done during that day the market participants said you know what we tried these prices down here.

GET MY FREE MARKET ENTRY TIMING INDICATOR

BTW, if you’re interested in the indicator that I use personally for very precise entries and exits. I’m happy to share that with you. Just send me an email at Barry@TopDogTrading.com, and I’ll show you how to get access to that indicator.

What did you think of this tutorial on a Forex trading tutorial? Enter your answer in the COMMENTS section at the bottom of this page.

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Also I’m giving away one of my favorite a new Forex trading tutorials. Just fill out the yellow form at the top of the sidebar on the right. Once you do that, I’ll personally send you an email with first video.

Those interested in a new Forex trading tutorial that works in today’s markets also showed in interest in this video:
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A New Day Trading Setup that Works in TODAY’S Markets

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A New Day Trading Setup that Works in TODAY'S Markets
A New Day Trading Setup that Works in TODAY'S Markets

While there are a lot of old day trading strategies that no longer work, here’s a new day trading setup that works in today’s fast-moving markets. This strategy applicable to Forex, the stock market and E-minis (as well as other futures markets).

It may be one of the highest probability trading setups you’ll ever find, and in this video you’ll get trading setups examples as well.

Was this video on a new day trading setup that works in today’s markets, helpful to you? Leave a message in the COMMENTS section at the bottom of this page. 

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TRADING SETUPS EXAMPLES

Hey welcome to this video on one of my favorite day trading setups techniques.

This represents why yesterday’s high and why L is yesterday’s low. So the teaching was all right when we were looking for the market to decide on whether to be bullish or bearish for the day. You will look for it to break out of the range of either above yesterday’s high or conversely below yesterday’s low. This will lead to one of the best day trading setup that works.

And it makes sense because if it doesn’t break above yesterday’s high or below yesterday’s low well then when you look at it on a daily chart where each bar represents one day of price activity it’s going to be an inside bar.

A DAY TRADING SETUP THAT WORKS IN TODAY’S MARKETS

Sometimes and we just get very neutral days. So the thinking is if we’re going to really get a market moving on an intraday basis where we can really date treat something that’s just not going to move sideways all day we want this thing to really move up and break yesterday high or break yesterday’s low. Unfortunately this is a type of break out trading and I don’t personally find that breakouts of support resistance levels work very well in and of themselves.

You make some money and a few you some good money management you’d probably have a profitable trade there and but then let’s see it starts coming back down comes back down back down and coming back under yesterday is higher. So as you can see the green bar yesterdays high the green line I should say.

SWING TRADING SETUPS

It did stay above it could have been made a little bit of money but did it create a bullish day. That is the thing no lasted for a couple of hours and a lot of times they don’t even last that long. So if you’re looking for oh this is going can be a bullish day.

We want to get as much movement out of it as possible if you really want a day trading setup that works in today’s markets. We don’t want just a little break out and then it retraces back down. And so the point is it’s really it goes back to the basic premise of professional trading keeping your losses small letting your winners run. These break outs are not creating situations where we are allowed to let the winners run because they’re not following through very much.

HIGHEST PROBABILITY TRADING SETUPS

Here’s another option and the option is that instead of looking for breakouts of yesterday’s high and low looking for the break out of a different range. Here’s your pivot point. Your central pivot based on floor to your pivot formula and what I do is now see if you look at it for breakout of previous days high or low you’re already in at extreme.

The market’s already made a move and you’re looking for to really make a big move in. Sometimes that happens and if it keeps going in your way which sometimes it will then that’s great. It’s just they don’t see it happening as much as it used to. I want to get in early. Professional traders we want to get in earlier.

DAY TRADING SETUPS TECHNIQUES

And so I look at these two and I take them as a zone as a neutral zone. Actually let me draw that a little differently here. So drive on the lines instead of the data there. Between those two lines I’m considering that we’re really a neutral market. We’re in a balanced market and either the Bulls nor the bears have taken over as opposed to waiting to break up of the high yesterdays high to decide its bearish a bullish market where to break below the states loaded aside.

It’s a bearish market. I’m going to make that decision earlier. So now that can improve my reward tremendously because and even if the market doesn’t move as much so well look what happens here.

I’ve found this works very well and invite you to check it out with these levels on your charts.

GET MY FREE MARKET ENTRY TIMING INDICATOR

BTW, if you’re interested in the indicator that I use personally for very precise entries and exits. I’m happy to share that with you. Just send me an email at Barry@TopDogTrading.com, and I’ll show you how to get access to that indicator.

What did you think of this tutorial on a new day trading setup that works in today’s markets? Enter your answer in the COMMENTS section at the bottom of this page.

PLEASE PAY IT FORWARD BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons.

FREE GIFT!

Also I’m giving away one of my favorite a new day trading setup that works in today’s markets. Just fill out the yellow form at the top of the sidebar on the right. Once you do that, I’ll personally send you an email with first video.

Those interested in a new day trading setup that works in today’s markets also showed in interest in this video:
http://www.topdogtrading.com/accumulation-distribution-indicator-for-accurate-trend-trading/

Subscribe to my YouTube Channel for notifications when my newest free videos are released by clicking here:
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Accumulation Distribution Indicator for Accurate Trend Trading

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Accumulation Distribution Indicator for Accurate Trend Trading
Accumulation Distribution Indicator for Accurate Trend Trading

Welcome to this video on the accumulation distribution indicator for accurate trend trading. This tutorial applies to Forex, the stock market and E-minis (as well as other futures markets).

You’ll learn how to use williams accumulation distribution to create an effective trend trading strategies.

Was this video on accumulation distribution indicator for accurate trend trading, helpful to you? Leave a message in the COMMENTS section at the bottom of this page. 

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ACCUMULATION DISTRIBUTION INDICATOR

Welcome to this trading video on the accumulation distribution indicator. And there are several types of accumulation distribution indicators. There is an index that’s accumulation distribution I’ve done another video on that and then the one I’m going to show you today though was developed by Larry Williams and released in his 1986 book Secret of Selecting Stocks.

Accumulation distribution line we’ll just call it the online story choppy right. That’s a lot of ups and downs and ups and downs ups and downs. And for that reason I find it very hard to read to make any sense out of it. I look at the black line now that blank line is now the exponential moving average. The zero so-called zero leg exponential moving average. So it’s going to move as fast as possible. And basically what we’re looking for here is we’re looking for.

WILLIAMS ACCUMULATION DISTRIBUTION

And again we can’t see this alone. Got to treat it with other things. Let me be clear with that trend is lagging. So we cannot try this by itself. Got to treat it with a momentum indicator. Actually this is considered a momentum indicator but we’re going to use it as a trend indicator but we have to use that with a leading indicator number one. And we also have to use it with a cycle indicator number two to time our entries because this does not help you time when to get in when to get out.

OK so back here what I’m doing now is I am looking for the angle of the black line. The zero leg moving average. So here it’s flat. So I would say OK. During this time there’s no trend really no no clear trend. And you see the markets moving pretty much sideways. Then we start having the black line angling down. And so therefore then I would say all right now we’ve got a different situation now that is hanging down.

TREND TRADING STRATEGIES

The trend is down. All right. And another thing to look for by the way if you get a little early your signal on this is the spread between the moving average and the actual Aideen line. So you’ll see that the line starts sailing down here. One way by the way you can do this to us a little extra step. You can go up here and get your crosshairs are in Milliot over the moving average because the crosshairs bar is going to have a horse in a straight horizontal Lane on it.

You can look for the divergence there too not divergence but the moving away. So here you can see that the moving average has now pulled away from the crosshairs right there. All right. So it’s no longer horizontal and the blue lines maneuverability the black line. And so this would be about our first signal here and taking a short you know anywhere like below the low these bars then we’ll get you into a short trade in.

ACCUMULATION DISTRIBUTION INDICATOR FOR MT4 OR EXCEL

Look here where we get the market going sideways. And this is a big issue because a lot of times traders can make money with trends trends are very commonly taught and when the market is trending up ok I’m making money. That’s cool. Here’s the problem though then a lot of traders give back the money that they’ve made and sometimes more when the market goes into consolidation. If you can just learn to avoid trendless markets consolidating markets that’s worth a lot that helps you avoid a lot of losses and then get you back into profit.

Stay out during that time or look for a different market to be trading during that time when that’s clearly moving up or down. So here we get it right here at this point. We get the arrow here. This is where we get the line going up. If we take our global crosshairs. I can’t do it because I believe that everyone there let me take that arrow off for a second just to demonstrate this example again.

GET MY FREE MARKET ENTRY TIMING INDICATOR

BTW, if you’re interested in the indicator that I use personally for very precise entries and exits. I’m happy to share that with you. Just send me an email at Barry@TopDogTrading.com, and I’ll show you how to get access to that indicator.

What did you think of this tutorial on accumulation distribution indicator for accurate trend trading? Enter your answer in the COMMENTS section at the bottom of this page.

PLEASE PAY IT FORWARD BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons.

FREE GIFT!

Also I’m giving away one of my favorite accumulation distribution indicator for accurate trend trading that works in trading the markets. Just fill out the yellow form at the top of the sidebar on the right. Once you do that, I’ll personally send you an email with first video.

Those interested in support and resistance zones that actually work also showed in interest in this video:
http://www.topdogtrading.com/trend-trading-indicators-the-best-one-3-ways-to-trade-it/

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Support and Resistance Zones that Work in Real Trading

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support and resistance zones indicator
support and resistance zones indicator

Welcome to this video and support and resistance zones. This applies to Forex, stocks and futures. one of the questions that I receive a lot is how to draw support and resistance levels like a professional.

In this video you’ll learn how to find support and resistance in day trading and swing trading. I’ll also show you how to draw support and resistance lines in mt4 or any other charting platform.

Was this video on support and resistance zones, helpful to you? Leave a message in the COMMENTS section at the bottom of this page. 

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SUPPORT AND RESISTANCE ZONES

And so the market goes and goes and goes and boom well there it goes. OK so it went up and that could have been a potentially good entry let’s say. Now so here is the basically money management has two things money management and then also just the realities of the market. So let’s talk about money management first support and resistance zones are for a couple of different purposes.

Number one for entry is as we kind of illustrated here but also for exits. So if I have a let’s say for example I was short here and I was looking to take a profit at this support level then we never would have reached it. So that would not be good. And again from going long it didn’t quite get down to my support level either.

SUPPORT AND RESISTANCE ZONES INDICATOR

So I actually prefer to look for the lowest low of the real body is not of the low of the bar. Could be an open or a closed but the open body means the green section or the red section or green section here. And there is a very logical reason for that and that is that the markets are not so neat and tidy the mark is if you’re trying to make your technical analysis to picture perfect where you are looking for praise to go to the exact Penny, Pip, tick. We’re even to the little pixel on the chart. It’s just very unrealistic. That’s not how the market works. Markets are huge. Today we’re dealing with global markets of millions of people and trillions of dollars and everybody’s doing different things for different reasons.

Markets are not that pinpoint accurate. They’re a little messy, and so, therefore, are support and resistance zones. There’s a little bit of randomness in the market always a little bit of noise if you will. So you’ve got to allow for that noise. So that’s the logical reason from a market perspective just an auction place perspective if you will and then the money management part of it is that again if we are short and we’re coming into a we’re looking to take profits into a in this case a support level then I don’t want to miss it because of the market anyway.

HOW TO DRAW SUPPORT AND RESISTANCE LEVELS LIKE A PROFESSIONAL

That’s it. That’s what you got. So people do price all the time different shapes of price indicators and price bars and price patterns and these kind of horizontal support resistance levels. Those are price levels but very few people are trained to use the time access. The on the X access here and it’s very important because that’s really what we’re looking for we’re looking for the confluence of time and price. The intersection of those two things.

Today’s video is just about price levels it’s poor resistance Zola’s let’s look at one more example a little different example here now we have a moving average. This is the 50 period simple moving average. And you see it down there. So now how do we account for zones. This is the question because a moving average is really dynamic support and resistance zones. In other words it doesn’t stay the same praise as a horizontal line does across time.

HOW TO IDENTIFY SUPPORT AND RESISTANCE LEVELS IN FOREX

It changes price over time. So we’re not manually drawing it on there we can’t mainly draw a high a low. We’re at the real body. It’s just there it’s plotted mathematically. So how do we account for resume’s when it comes to a dynamic support resistance level. Well here’s how I do it. And there’s many different choices but this one’s worked very well for me for a long time.

So let’s just look at this bar here. So this part does come below the 50 SMA. Do I consider that this has broken the support for example if you look back here it held the support of the 50 SMA are pulled the support of the 50 SMA here and now it comes down. And do I consider this is still holding the support of the 50 SMA on this bar.

HOW TO FIND SUPPORT AND RESISTANCE IN DAY TRADING

I call that the flypaper phenomenon where it’s stuck. It’s like a little mouse that gets one foot stuck on the white paper the rest of his body is off its other four feet around. But that one little foot stuck in there there’s like a cat quite get off. So that’s what I consider this. It’s still touching it and that allows for the randomness. Now what about the next part the next part is a dog who got the wrong drawing tool on there.

That’s how I account for the support and resistance zones. Two different ways to account for zones as a review and if you have horizontal support resistance then I account for them by using the real bodies of the lowest bars and not to the highs and the lows. And for dynamic support resistance we have to have a bar completely clear the dynamics of where resistance such as a moving average and the real body has to be below the bar that was touching it.

RESISTANCE ZONE TRADING

We consider that we have now broken through that zone. So these things might seem minor but they actually become very important because sometimes technical analysis can be very deceiving because it’s so precise because it’s so mathematical and we’re looking at these lines and everything is very precise.

The problem is the dynamics of the market as I talked earlier because of the huge scale of them the dynamics of the market are not as accurate and therefore you need to have something like this built into your treaty methodology to account for that noise that randomness that chaos.

GET MY FREE MARKET ENTRY TIMING INDICATOR

BTW, if you’re interested in the indicator that I use personally for very precise entries and exits. I’m happy to share that with you. Just send me an email at Barry@TopDogTrading.com, and I’ll show you how to get access to that indicator.

What did you think of this tutorial on support and resistance zones? Enter your answer in the COMMENTS section at the bottom of this page.

PLEASE PAY IT FORWARD BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons.

FREE GIFT!

Also I’m giving away one of my favorite support and resistance zones strategy that works in trading the markets. Just fill out the yellow form at the top of the sidebar on the right. Once you do that, I’ll personally send you an email with first video.

Those interested in support and resistance zones that actually work also showed in interest in this video:
http://www.topdogtrading.com/backtesting-trading-strategies/

Subscribe to my YouTube Channel for notifications when my newest free videos are released by clicking here:
https://www.youtube.com/user/TopDogTrading?sub_confirmation=1