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Trading ES Price Pattern Action Cycles, Part 4

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Trading ES Price Pattern
Trading ES Price Pattern Action Cycles, price pattern trading, most successful chart patterns

Trading ES Price Pattern Action Cycles, Part 4: This video (and article) on trading ES price pattern will teach you not only valuable insights to improve on futures trading, but also on stocks, futures, and more. This discussion about Trading ES Price Pattern Action Cycles will also help you in analyzing price actions, a very practical thing that is important for you to understand.

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Trading ES Price Pattern Action Cycles, Part 4

Welcome to this fourth in this series of Trading ES Price Pattern. Today, I’m going to use an example, Trading ES Price Pattern futures cycles, but this applies equally well to the forex market, day trading, swing trading, the stock market, futures, whatever you’re trading because it really has to do with the way that markets move through time. Now, in the past, we talked about other types of cycles such as seasonal cycles or calendar cycles, expansion and volatility cycles, and then we also talked about the chaos and the orderly cycle. Today, we’re going to look at price action, Trading ES Price Pattern, a very practical thing that is important for you to understand. So let’s take a look at what we’re talking about here. When it comes to cycles and price action, this is very important to understand. Now, we have a trend.

And so we’re looking at this upcycle or this uptrend here. Now, in an uptrend, we want markets to move up in price and in time. What that means is that we are using both time and price; in fact, W.D. Gann was famous for teaching this, the confluence of time and price. So when you’re in an upcycle, it’s not just about higher highs and higher lows. That has to do with price and so that’s fine. That’s half of the equation, but what people rarely talk about is the element of time in a higher high and higher low. So that’s what we’re going to talk about right now.

Price pattern trading

Here’s your half cycle from a low to a high, and then from a high to a low, that’s another half cycle, so your full cycle will be from the low to the low. Then it moves up from there and we started a new cycle. So that’s what I’m talking about these up/down cycles, markets moving up and down. Now, when we’re in an uptrend, we want to see two things. In other words, the practical application of this is to determine whether the market is going to continue or we all know the trend is your friend until the end. So if that trends not going to continue, you want a way to identify that. So, in an uptrend, the range of the price going up should be greater than the range of the price coming down in the down cycle.

And that just has to do with the price; when it comes down, it’s covering that much range, when it went up, it covered that much range in price. So, pretty intuitive, and this is what most people understand. So I want to talk about that too much, but now what I want to talk about is time. We also want to add the time element. In this half cycle, we want from the low to the high. There’s our time. We want that time to be greater from the time of the market goes from the high to the low, again, in an up cycle. So, again, that period of time, as it goes up, should be a longer period of time than when it comes down.

Price pattern in technical analysis

So it’s not just that it covers more price range. That’s half of it. Yes, that is half of it, but if you want the truth, the whole truth and nothing but the truth, you also have to look at how much time it spends coming down relative to how much time it spent going up. Now, this is called rate translations. If you want to get really into some specifics and technical analysis here, and I find unfortunately that this is not taught very often anymore, which is sad because it’s actually really helpful. So what rate translation means is if we look at this whole cycle, okay? Again, really it’s there that we put on our low or do we put it in there? Actually, the low comes in right about there and the highest up there.

So, there’s our full cycle. Now, if we were to look at this, the halfway point between the low and the low. So, in other words, from this low to that low, where is the halfway part? Is it at this blue line? No, that is to the right of the midpoint. So, again, I’m not going to measure this exactly, but you’ll get the idea. Let’s say I’m just going to eyeball it here that this is the middle note, which if we were to take this square and cut it in half, that is your midpoint right there. Now, if the high comes into the right of that midpoint, then it’s called rate translation. Essentially, that’s another way of measuring what I was just talking about, that the market has spent more time going up than it has been going down.

Most successful chart patterns

But there’s an official term for it. Now, if the market made its high over to the left of the midpoint, let’s say it went there and then it spent all this time coming down, that’s called left translation. It came into the left of the midpoint between the low and the low and then that would be called left translation. That’s not as strong of a signal for it to continue going up because, again, talking about practical trading and addressed theory here, that’s what we’re dealing with. We’re dealing with the issue of I’m going to take a trade, I’m looking to go along. But I got to trade it the hards right edge of the screen. So, do I have a high probability of this thing continuing to go in an uptrend after I get in? This is one way that can help determine that.

So the dynamic behind it, by the way, it’s not just charting or geometry or theory, there is actual practicality behind this, and what it means is that you’re getting a very strong impulse move when this happens. So it goes up very fast in a short period of time. And the way that affects the market participants psychologically is they feel like ‘I’ve missed out on this move’ and we had a big impulse move, and I got left behind. So that’s part of the mass psychology that’s going on that discourages people from coming in and buying after that event. Another very practical aspect of this is those big moves that have been in a very short period of time are often caused by news events, sometimes that’s now fake news. But, the point is that the market is reacting emotionally and a very quick a knee-jerk reaction.

Price action chart patterns

It may then end up very well, say ‘that deal is done’. That news is over with the money was made on that news or later on, it could be just minutes later they say that wasn’t really news, that was just a piece of gossip or rumor or because the markets respond to news so quickly they might then you evaluate it. They usually just read the headline and they’ll say that’s exciting. And then after the news comes out and they’ve taken their trade, their initial trade at least. then they read all the qualifiers of that news and they’re like well the headline sounded good. But now that I read all the details, I guess it’s not as good as I thought after all.

So these are the kinds of dynamics that happen. This is the reality behind the price pattern. And then when people think these things, of course, they’re less likely to follow through. So that’s what the price pattern means in practical terms. There’s a tool – now you can do this with just eyeballing it and getting to understand price patterns and kind of get these ingrained in your brain cells through repetition and that’s totally cool. I actually prefer to use tools that are objective mathematically so that I don’t have to depend on my discretionary evaluation. Now, we have a tool that’s mathematically based, then you have an objective evaluation. But, you also have a mathematical one that you can create rules with so that you will then you can build a rule-based system which I think is very important.

Price action trading strategies

So I’ve got a cycle indicator that I use. It actually catches every single cycle, high end low with amazing precision. It’s very accurate in identifying the final high and low so you don’t get stopped out so often after entry. And this is not an indicator that I sell. In fact, it’s not even a proprietary indicator, quite frankly. It’s an indicator that is already on your charting platforms, in fact, it’s one of the most common indicators that is on charting platforms. But it wasn’t designed as a cycle indicator and to time the market. So, I modify it. They just go into the parameters with the inputs, we modify it and we turned it into a cycle indicator.

So if you’re interested in that, it takes about an hour for me to help you get it set up in your chart and then to give you a tutorial on how to trade it because frankly, it’s very counter-intuitive how to trade it and a lot of people would look at it and say this doesn’t work until I show you the patterns you trade, the triggers and so forth. And then, in fact, I just had a gentleman wrote me the other day. He was already a professional trader.  He said ‘thank you so much for this, it’s already improved my trading even though I was making money’. This is absolutely free, no charge whatsoever. Just join me on the Webinar depending on when you watch this video.

Rubber Band Trade Strategy

The Free Webinar may or may not still be available since things last here on youtube for years. But, just send me an email, barry@topdogtrading.com if you’re interested and we’ll send you an invitation to this. I love doing these videos for you. Please go ahead and leave a comment below on this Trading ES Price Pattern video. Give us a thumbs up, share the video below if you would. Really appreciate that. And it’s good to share good things, right? Share good things with good people. And I’d love to help you in any way that I can. Another thing that I have for free right now is I’m giving away one of my trading courses. This is an actual course with videos and there are five videos in it, it’s just a mini-course.

But in it, I share with you some very practical thing that you can actually incorporate into your trading. This includes my rubber band trade. And this rubber band trade is a complete trade setup that I’ll teach you in. My intent is hopefully you can start making money without having to spend any money. And I love to get you making money first before you make any kind of investment. And I’m obviously doing it on paper or simulator trading before, but I give you all the rules absolutely free. Just click that little icon in the top right-hand corner of the video. If you’re not watching a youtube, then there’s a link below or an opt-in form on the side. Once you do that, I’ll send you a link to the course with my rubber band trade strategy.

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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.

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Forex Market Cycles Trading Indicator Part 3

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Forex Market Cycles
Forex Market Cycles, best forex market cycle analysis, forex market indicator

Forex Market Cycles Trading Indicator Part 3: This video (and article) on forex market cycles trading will teach you not only valuable insights to improve on forex trading, but also on stocks, futures, and more. This discussion about forex market cycles will also present the fundamentals of trading, the five energies which run the market, which can help you in your trades.

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Forex Market Cycles Trading Indicator Part 3

Welcome to part three of our series on forex market cycles. This one, we’re titling FOREX market cycles trading, but it also applies to stocks, futures, pretty much any type of market. This is one of those cycles that is rarely talked about. In fact, I hardly hear anyone talk about this and yet it is one of the most important. So we have taught about calendar cycles and we have talked about high volatility, low volatility cycles. Well, this one is when I call my order chaos cycle theory. First of all, there’s one theory that the market is a random walk. In other words, chaotic, random, and you’ve probably heard of the book random walk down Wall Street if you haven’t even read it.

It’s a popular book, very well thought out, very well researched, and it is a good book and there’s a lot of truth to it. Basically, the author said that everything that can be known about the market is already known and, therefore, the markets are already perfectly efficient and if we can’t get an edge and trading or investing. So that’s one theory. Another theory is exactly the opposite and these people say the market is perfectly orderly, predictable and they’ll often use mathematical models, often geometrical models. And here you’re getting into schools of thoughts such as Gan, probably the most famous, and some followers and people have followed up with his work, maybe altered it a little bit. It’s basically saying we can predict the market five years out, 10 years out, 20 years out to the exact day, time and price.

Forex market cycle analysis

Two completely opposing points of view and some of them even have some history to back up some predictions that they’ve made out into the future, which were pretty accurate. Obviously, I’ve read both of these positions and each one seems very convincing. They showed a lot of examples and you can say, ‘that worked, that made sense.’ But then, when you’re done reading both sides of the research, you’re stumped because they are completely and utterly contradictory. So, as I was doing this, I realized, yes, they both have examples that support to their positions. So there might be an issue here where sometimes the market is a totally random walk and other times when it is very orderly and predictable. That’s why I came up with this idea that there is another type of cycle where the markets go through periods of being orderly and chaotic.

While they’re chaotic, they are unpredictable and you cannot establish a probability scenario. Therefore, you should not be trading them. On the other hand, the times we do want to trade is when the markets are very orderly and then we can provide a probability scenario. This is why overtrading is one of the cardinal sins because people can trade for a while and maybe you’ve had this experience where you’ve traded a methodology and it’s worked for a little while and then all of a sudden it seems like it stops working. One of the reasons for that may be that while you’re trading it, the market is in an orderly cycle and then it goes into a chaotic cycle, and your probability scenario goes away just because the market isn’t a random walk during that time and nobody’s taught you about these cycles.

Forex cycle analysis

So if you’re trading during both cycles, then you’re going to be overtrading because you shouldn’t trade during quarterly times. And this is the foundation of waiting. What I do is I wait for the alignment of what I call five energies in the market. Well, how do we determine now when we have an orderly cycle in the market? I don’t like to use the word predictable because that assigns too much certainty to what we’re doing. But probability, which is really all we need to exploit that probability over a large period of time, is what makes us money. So here’s how I determine an orderly cycle, I’m looking for the energies in the charts: the money, money flow, buying, selling, buying pressure or selling pressure volume, and the speed of the orders. So I break the energy of the market down into five subsets.

Now you can add more to this, but these five are important and I’ll show you why in a moment. But first, let me just give you the list. So step one in my trading method is trend, and I always trade by going right through this checklist. Start with step one. What’s the trend? A good place to start because I want to know which size of the market I should be in. Number two, trend is not enough. A lot of people think you just to trade with the trend. No, there are two types of trends, strong trends and week trends. Again, that is a huge vacuum in your knowledge of trading and you will lose money unless you learn how to determine whether the market has momentum behind it because momentum is strength, and if a trend is weak, it will fail.

Forex cycle indicator

The trend is your friend until the end and you will be getting in at the end, so you must always ask yourself a question. In fact, I’d encourage you to write this down and here’s the question, is this a strong trend or a weak trend? And Ask yourself that question every time before you take a trade. Step number three, cycle. So now that we have a trend and it’s strong, then we go to step three, but only if we have step one and two in place. Now, we say when do I want to get in? I want to buy the final cycle low so the market doesn’t make another low after I bought. By the way, that’s where my cycle indicator comes in, which I did get away for free.

I offer it through a live Webinar, at least at the time of this recording. I’m still offering that for free and it takes about an hour to explain it – not only how to get it set up in your charts, but how to trade it so we modify an indicator that’s already in your charts to turn it into a cycle indicator. So if you want that, just send me an email at barry@topdogtrading.com. Like I said, if it’s still available, we’ll let you know the date and time of the next webinar. It’s all for free. Now, step four then, we’ve got a trend that’s strong, we’ve got the time to get in and we just want to make sure that we’re buying at a support level or shorting at a resistance level, and that’s all on the short-term chart.

How market cycles work

Then number five, I look at the longer term timeframe and I want to make sure I’m trading in the direction of the strength, the momentum of that longer timeframe. Not trend, I don’t care what the trend on the longer timeframe is. So that’s one of the heresies of traditional technical analysis that I violate. It’s not the only one by the way. But if you’re making money with traditional technical analysis, God bless you. Most people aren’t, by the way, there’s a reason for that. It’s not that it’s no good, it’s just that the markets have changed since those rules were written. Now, markets move very differently because of technology – computerized trading, algo-trading, commoditization of retail, traders direct access, high-frequency trading, all of this stuff has dramatically changed the way markets move since the establishment of traditional technical analysis.

So you’ve gotta keep up with the times. Thus, trend on the longer timeframe no longer means anything. Used to work, but no more. So I wait for the alignment of these five energies. Now, here’s the key, as I measure these, we’re going to use indicators not because indicators are any kind of magic. They’re not magical, they’re just mathematical. But I use them because being mathematical gives me objective measurements so that I don’t have to be a discretionary trader. And indicators themselves don’t make us money, right? They do what they promised, well the answer’s in the question, they indicate. But they do give us an exact value so that the measurement of those energies is objective, rule-based and duplicable. So when I share this with people, they can do it as well. It’s not just that I’m good.

Cycle analysis trading

So here’s the bottom line on how this all then creates a probability scenario. At each point, I’m looking to possibly take a trade. I simply ask myself how many of those five energies are aligned and give each set up a score of one to five. Now, the higher the score, the higher the probability of success. So, I liken this to taking each trade to court, but here’s the key. These particular five energies were strategically chosen because they are independent and uncorrelated to each other. That’s why these five energies, as I said in passing earlier, you can use more. But these five are special because they are very uncorrelated to each other. That’s what makes it significant when they’re all bullish or bearish. That gives you a preponderance of the evidence and gives you a probability scenario.

So that’s when we then say, now we have an orderly cycle in the market. The market is moving in an orderly manner and we still have to use our stops. We still have to hedge our positions because anything can happen at any time. But that’s okay because we can survive those as long as we use good risk management and money management. But this is how I establish a probability scenario. I find cycles that are in a time of moving in an orderly way that gives me a probability scenario.

Our Favorite Rubber Band Trade Strategy

So if you liked this video on forex market cycles, please understand that it’s free. But if you get value from it, then you should pay that value forward. And the best way to do that is clicking the share button below. If you’re watching on Youtube, please subscribe. You’ll get notified every time I release a new tutorial, which is about every week. Click the thumbs up icon and leave a comment. I really love your comments. I’ve got a special offer for you if you’d like to learn more details about the five energy map. Obviously, I can’t go into all the details. Just want to give you the overview so you get the concepts.

The best place to start is to start for free with me and just get my rubber band trade. It’s absolutely free, tells you where to get in and out and where to place your stops. It has a very high win-loss ratio and I want you to start making money immediately, without having to pay. So this video’s about 26 minutes. You’d get my rubber band trade strategy absolutely free by clicking on the image in the top right corner of this video, or in the description below the video. If you happened to find this video somewhere other than youtube, there’s probably a link below or an opt-in form on the side. And once you do that, I’ll personally email the video to you with the rubber band trade strategy.

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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 Forex Market Cycles Trading Indicator Part 3? Enter your answer in the COMMENTS section at the bottom of this page.

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Day Trading Stock Market Cycles Part 2

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Day Trading Stock Market Cycles
Day trading stock market cycles, trading in most profitable times in the market, expansion-contraction cycles

Day Trading Stock Market Cycles Part 2: This video (and article) on day trading stock market cycles will teach you how to time your trades during expansion-contraction cycles, allowing you to trade in the most profitable times in the market. This will surely increase your earnings and greatly contribute to your overall trading psychology.

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Day Trading Stock Market Cycles Part 2

Welcome my friend to part two of trading stock market cycles. Today, we’re going to talk a little bit about day trading, but a lot of what I’ll share is going to be applicable to swing trading as well, and it also applies for stocks, FOREX, futures, and commodities. But I’m willing to give you an example at the end that is specifically for day trading. By the way, if you missed part one, then you can watch this first. Part one is not necessary to watch before this part two, but go ahead and after you’re done with this, type in trading stock market cycles part one, top dog trading, into the search bar of Youtube and you find it. So last time we talked about seasonal or calendar cycles, agricultural seasons or retail seasons, travel, etc. Today, we’re talking about a very different type of cycle.

This one is volatility. So what do I mean by volatility cycles? Well, I call these trades, this family of trades, Ex-Con trades, and that stands for expansion-contraction. So volatility has to do with the range of the market within a period of time. How much does price cover with regard to the expansion of the movement of prices from highs to lows and lows to highs, and then we get into narrow range markets and that’s when we have contraction – that’s actually a cycle in the market. So you will see markets that are sometimes very volatile, and they make these big huge swings and people think ‘that’s really exciting, I want to get into that market.’ And then other times people see markets that are in very narrow range and they’ll say ‘I don’t want to get into that.’

Day trading strategies

There is some truth to that, but it is a little trickier than it is at first glance. So I want to share with you how I trade this and see if it makes sense to you since most people, in my opinion, trade this backwards. And I’ve done very well with this type of trading by the way – I’m speaking not only from experience but from success. So here’s how I see most people doing this, they will scan for high volatility markets to trade. And it kind of makes sense, right? There’s a logic to that. A lot of times, there are certain stocks or forex pairs or futures commodities that are high volatility markets, and they leave it at that as though it’s always a high volatility market, a market that’s always tending to move and make big swings.

Of course, they want to get on that to make some big profits quickly. Problem is they don’t realize that this is a cycle that pretty much every market goes through. Some markets will, let’s say there’s a particular stock that’s highly volatile, well it’s not that it’s always highly volatile, it’ll go through a period of movement and then all of a sudden it starts to slow down and contract. We’ve actually seen that in some cryptocurrencies recently where everybody gets all excited. Now, the CME and SIBO have come on board and it started to contract a bit again, so there you go. ‘You don’t want to chase the high volatility’ is one of the ways of saying this. In practical terms, one of the mistakes people do is they will use a scanner and scan for high volatility markets to trade.

Stock market cycles analysis

The problem is that by the time a scanner accumulates enough data for it to then show up and mathematically trigger as a high volatility market, then it could be very close to the time the period or that cycle ends, and the next cycle of low volatility or contraction to kick in. Then they wonder, ‘how come every time I get into these markets, they really move and go into a narrow range.’ And they think ‘my broker’s trading against me, the market makers, they got that out for me.’ No, it’s just that they haven’t been taught about the Ex-Con cycle, expansion-contraction cycle. So they’re always trading the wrong end of it. And especially because, as I said, mathematically, the scanners need a certain amount of time and number of data to accumulate in order to indicate that this is a high volatility market.

Sound familiar? Because what I like to do is exactly the opposite and just like most things in trading, the opposite usually works. So if you have ever felt like ‘I’m a perfectly imperfect trader, and if I just did the opposite of everything I did, I’d probably make some money.’ Well, you know what, probably not far from the truth because trading, actually, is very counter-intuitive. So what I do is I trade inside contraction. Now, what does that look like? Well, this is not completely new. There are other people who do this as well and you’ve heard of these types of patterns – triangles. I love trading triangles. In fact, if you want to learn exactly how I trade inside triangles, I have another video specifically on that technique, just type in top dog trading and triangles, but I don’t wait for the breakout of the triangle.

Stock market cycles forecast

Some people wait for the breakout of the triangle, and then the retrace before they get in. I don’t want for any of that. I trade while it’s inside the triangle before the breakout. So I’m entering inside of contraction. Another example will be Bolinger band squeezes, very similar to triangles. So you get the idea. These are patterns that are very well known, but timing when to get into these is the key. Speaking of timing, by the way, I do have a tremendous timing indicator, would be happy to give it to you absolutely free since you are watching this. Be happy to give it to you. Just send an email over to me at barry@topdogtrading.com and we’ll show you how to get that absolutely free and that will really help you with your timing.

I find this as one of the things that people neglect. They understand price levels, support resistance pretty well and that’s great, but there’s another side of the chart, not just the Y-axis which is price, but then there’s the X-axis and that is time. That’s 50 percent of the chart. You better know how to time your entries with precision, and that’s what this indicator will help you. I promised to give you a day trading setup here and so that’s what this is. This is a typical pattern and you’re probably familiar with it. The market moves most of the time in the morning between the open of the market and launch, and then during lunchtime, the market quiets down, goes into beta consult, consolidation in the swings between the highs and lows, gets more narrow range, and then in the afternoon, it breaks out again.

Successful day intraday trading strategies

So not every day is like this. This is again a meta-pattern. It is not an everyday pattern, so this won’t happen every day, but it gives you something to look for. One of the traits that I look for, for example, is to trade at the end of lunchtime. So I am watching and saying ‘let’s find out a time to trade this inside of lunchtime, but toward the end of lunchtime.’ I got to tell you a little secret here; sometimes back when I was trained at the Chicago mercantile exchange, we would watch the whales and because everybody knew this meta-pattern. Again, this is the problem, right? Once everybody gets to know something then it stops working, though it’s not that it stops working all the time. But, again, everyone knows this.

So the big money, they don’t want to be followed. And what a lot of these guys would do is they turn in the accounts over to their fledglings and they would just basically say, ‘do no harm while I’m gone,’ and they leave the building or they’d leave the room I should say, and it’d be gone maybe a little bit and then they’d come back in. They didn’t actually go to lunch. They wanted everyone to think they left and then they would take a trade during lunchtime.

Stock market cycles charts

I find these happen about once or twice a week, but this is another one that you can look for. Again, you’re going to have to be patient because it’s not gonna happen every day. Nothing in trading is meant to be easy. In fact, if you feel like the market’s against you, you are 100 percent correct because the other people in the market, especially the professionals, they are not there to give you money. They are there to take your money. So they make it as difficult as possible. They always tried to hide their tracks. They know these common things that people are looking for and they do intentionally try to throw you off of their tails.

There you go. The patient one is the one who wins. In fact, I’ve often said that a professional trader, outpatient amateur traders. So these little anomalies, it’s not even an anomaly because it does happen pretty much every week, once a week, sometimes twice a week. And when it doesn’t, then you just wait until toward the end of lunch and trade into the afternoon. But if you wait for the breakout in the afternoon, usually, you’re giving up too much money. The reward is pretty much going to be gone by the time you see it again, and that’s too late. Professionals are early and retailers are always late. So you’ve got to be early, and this is why you need to read charts. That’s why you need to learn how to read the inner details.

Using stock market cycles analysis

I always say that the dollars are in the details because every day, it’s going to be a little different. Again, the markets are not here to make it easy for you. You gotta read it day by day, bar by bar because each day is going to be different. So, if you liked this video on day trading stock market cycles, please understand that sure it’s free. But if you got value from it, you actually have a moral obligation to pay it forward to others. Click on that beautiful little share button below so that others can benefit from it as well. Also, please subscribe to the videos because that way you’ll get notified every time I’d come up with a new tutorial, which is every week, click the thumbs up icon and leave a comment.

I love your comments, that lets me know you’re engaged and it encourages me to create more free tutorials. As a special offer to you, I’m giving you one of my favorite trade strategies. I call it the rubber band trade strategy, which has a very high win-loss ratio. In this trading strategy, I get into the details of exactly where I enter, place my stops and get out. I’m going to give it to you for free in a 26-minute video. You can get the rubber band trade strategy absolutely free by clicking on that image in the top right corner of the video or in the description below. And if you’re not watching on Youtube, there’s probably a link below or an opt-in form on the side. Once you do that, I will personally email the video to you with the rubber band trade strategy.

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.

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Forex Training Video

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Forex Training
Forex training, best forex trading training that works in today's market

Best Forex Training: This video (and article) on forex training will teach you how to effectively use support resistance levels to better time your trades in order to boost your trading performance. This strategy can give an edge against other traders.

Was this video on Forex Training helpful to you? Leave a message in the COMMENTS section at the bottom of this page. 

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Forex Training

Welcome my friend to this forex training. By the way, what I’m going to share here also applies to stocks, E-Minis, commodities, future markets and so forth. What we’re going to share with you today is something that is quite simple, but the dollars run the details. So we want to give you the details here that while keeping things simple, just a few tweaks here, we make sure that you’re doing it as professionals do and not overlooking some of these things and just trading general ideas that really are not quite detailed enough. You know, Einstein is attributed with a quote of saying keep everything as simple as possible but no simpler. All right, so we’re going to be talking about support resistance levels – work very well in all markets and there is a good reason for that. Primarily, the reason is, well let’s draw a level here.

So what happens is when people see the market; when I say people, I mean the market participants. The market comes up to here and comes down, so now, as people are going to be buying back, everybody in this parakeet watches that level. So this is one of the nice things about these support resistance levels based on previous major swing highs and swing lows. Here we have a daily chart, that’s a common timeframe. Everybody sees that high, and you have the masses who are seeing this, so you’re going to get a crowd effect. The mass psychology comes into play and what’s happening when the market comes back up to that level is people are starting to say “well, last time we got up to this level, the general consensus of the market was that we’re not going to pay more than that.”

Forex Trading Training

This price over here, that’s what we’re going to pay. That’s getting too expensive. Now, will sentiment change? Sure, in three weeks, absolutely, sentiment can change, and often does, but it’s still in people’s mind. They’re looking at that, they’re considering it, and so that’s the psychology that’s going on. And that’s why of all the support resistance levels that there are, whether it’s FIBONACCI, whether floor trader pivot if you’re doing intraday trading or any other type of support resistance you might look at, I consider these major swing highs and lows on big charts like this, like daily charts, things that the masses are all looking at, to be the most significant and the most reliable support resistance levels of them all. So I often get questions that have the word best in them, in this case, would be “what’s the best support resistance tool to use?”

This is one time that I have a clear answer and it is major previous swing highs and lows. And major, I’m talking about you just look at it in a visually pops out to every human being. And that’s it. Now, because it does have that mass psychology, here’s the problem. As you look at that level, we see that the market went through it, went up to here and then it went down to there. Wait a minute, it didn’t work in maps because we drew it wrong. Great, thanks. So you don’t do it at the highs, you do not do it at the highs and you do it at the real bodies of the candle.

Forex Trading

That real bodies for beginners mean these colored areas here which define the open and the close, not the high and the low. And the reason that we draw them there, that’s the professional way to draw your support resistance levels, is because the spot forex does not have a central exchange. So you are dealing with, first of all, all these different exchanges, all banks, people in all different countries, they’re getting different price quotes, have different spreads, right? So there are variances. And then we’ve got millions of people, retailers, a lot of them amateurs and they don’t know what they’re doing. They’re putting in orders all over the place and getting them in and out real fast.

Then you got your banks, your funds and then you got to your professional traders that are scalpers. So you’ve got all kinds of different levels of traders, size of traders, nationalities through different exchanges and brokers. Bottom line is that the market, as you chart it, is not going to stop to the penny, pip, or tick, in this case, the pip at various highs and lows. You can’t expect that there’s going to be a little more chaos there. So these highs here are that randomness, that chaos, that noise. And we want to, again, look at fair value; basically what the masses, the conglomerate of the mass psychology of all those people, are finding as the value of this high and that’s going to be the real bodies. So, when we draw up there, now all of a sudden you say, “It does hold here”.

Forex Trading for Beginners

Now it doesn’t hold the low, but again, we discovered that that doesn’t matter. That’s just a little bit of extra noise. It does. When you look at the real body of the Red Candle, for example, there it is. Now look over here, there it is. So this is the proper way to draw it in order to allow for that noise. And don’t expect these highs and lows to come in at the exact pip. So that’s point one. Point two is when the market comes into these levels, look at your candlestick bars and you don’t need to use candlesticks necessarily, but I just think it’s easier to see the candlesticks and so again, we’re taking that same principle now and we’re using candlesticks.

I’m not going to, again, this is meant to be a very basic lesson, so I’m not going to use candlestick terminology. For those of you who don’t know the candlestick terminology, I’m going to just point out the principle. Again, the principle of it is when we get to these highs, look at that wick, that’s called the wick or the shadow. I like to call it the wick because candles have wicks. So you’ll see that the real body, the value is right there. That’s where, on this day, it opened and closed within that very narrow range, tested these prices up here and rejected them so that is a bearish pattern because we get that long wick up there and this again, this whole zone up here, that’s a rejection of those prices and that means that that is at least a short-term bearish pattern.

Forex Trading Tutorial

That’s what makes it put in a high and goes back down to support. Now, when we get paid down to support, again, we’ve got a long wick down there so it rejected that as a push off of the bottom and it goes back up. When we come back up, you’ve got a long wick up there. And then here we’ve got a couple of long wicks and now you will not get this kind of long wicks at every hirgher high. So, for example, well actually we got one in there. I didn’t think I’m pretty good one right there and it may not be right at that very high. Might come in the second bar or so, but there are other types of candlestick patterns, engulfing patterns and things like that. So this is just one example that I’m pointing out and there’ll be others.

You want to study candlesticks in detail, actually, that would be a great idea. Today, we’re just pointing out a couple of things. Now, when we break through this resistance level, notice how the candle just flies through it. There’s no wick up here. We actually closed up. That’s how it breaks through. When it comes back to support, the wick goes below and it comes back to support. The wick goes below, but the close is above. Now, when we break down below that resistance or this time, resistance, this turned into support, now when it finally does break through support, what happens? It closes below the support level and closes down there. The problem is how do we determine when support is going to hold or, whether a support or resistance for that matter, is going to break and the market continues to slice right through.

Rubber Band Trade Strategy

This is one way to do it. Look at your price action bars at those support resistance levels. This is one example. Do encourage you to learn more candlestick patterns in addition to these and it’ll give you more trigger itself. If you liked the video on Forex training, please understand that you have a moral obligation to pay forward the things that are helpful to us because you’re getting this for free. Please click on the share button below and pay it forward. Also, if you’re watching on youtube, go ahead and subscribe, that way you would get notified every time I create a new video, which is about once a week. Please click the thumbs up icon. And leave a comment because that really encourages me to keep creating more free tutorials for you. I love the interaction and finally have a special offer for my youtube subscribers.

Actually, for anybody watching this, I’m going to give you one of my favorite trade strategies. It’s called the rubber band trade. It’s a great trade. I still trade it myself to this day because it has a really high win-loss ratio. And it’s a simple trade, one of the simplest trades I know. I can teach it to you in 26 short minutes, which I’m going to do. You can get it absolutely free by clicking on the image in the top right corner of this video or in the description below the video. There’s also a link. And if you’re not watching on Youtube or you’re watching somewhere else, there’s probably a link below or an opt-in form on the side. Once you to do that, I’ll personally email the video to you with the rubber band trade strategy.

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 Forex Training? 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 Forex Training strategies 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 the first video.

Those interested in Forex Training video that works in today’s markets also showed an interest in this video:
https://www.topdogtrading.com/swing-trading-stock-market-using-bollinger-bands/

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