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Trailing Stop Forex Strategy

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Trailing Stop Forex Strategy
Trailing Stop Strategy

Protecting against losses with a trailing stop Forex strategy is absolutely critical for successful trading. Traders tend to focus on how to make money, which is great. Equally important is to protect against losses.

In this video, you’ll get a trading stop strategy that will help you “keep your losses small and let your winners run.”

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Trailing Stop Forex Strategy

Welcome to this video on trailing stop forex positions where we’re going to analyze once you get into a trade, where you should place your trailing stop – your initial stop, protective stop whatever you want to call it. With my trading method, when the 50 MA start angling up, I consider that we are in a potential uptrend. That’s an uptrend indication.

By the way, all these are indicators and indicators do what they promise. I mean the answer’s in the question, what do they do? They indicate! No indicator is a money maker. Therefore, you cannot rely on any one indicator to make you money. It’s a piece of evidence is what it really is. Right now, what I would do in a situation like this is to potentially look for a first wave low. I count waves differently than they do an Elliot wave.

If you want my cycle indicator and how I measure these waves and these cycles and so forth, happy to give that to you for free and send me an email at barry@topdogtrading.com. I am also doing webinars once or twice a week where I give away that indicator absolutely free. It works on any trading platform and you get a tutorial with it on how to trade it and you can take it and integrate it to whatever training method you’re using, if you’d like. No charge for that.

Trailing Stop Forex

Cycles are like the respiration of the market, the inhale, the exhale. Markets sometimes ll go straight up or straight down, especially based on news and even gossip or rumors sometimes. Price structure has everything to do with where we place our stops, our initial protective stop as well as our trailing stops. Number one is your protective stop goes where you’re wrong.

Forex Trailing Stop Strategy

That’s the general rule. You might want to write this down – stops go where you’re wrong. What do I mean by that? There’s always a reason that we take a trade. So, whatever the reason is in your methodology, then if that reason for entering the trade no longer exists, then your trade should no longer exist. Your protective stop or your trending stop for that matter should always be placed at a position on the chart where the structure for the reason of you entering the trade has been broken, has been violated. So that to me is the basic rule where you place your stops.

You’ve heard the saying the trend is your friend until the end, right? And some people think the lesson from that is just a trade with the trend. Again, that’s a half-truth. In fact, The second half of the sentence is the most important half of the sentence – until the end.

What that’s really instructing us to do is trade early in a new trend. The longer the trend goes, the less likely it is to continue. Therefore, I’m always looking for the first cycle low after the confirmation of an uptrend. As long as that trend is going up, we’re good.

 

How to Use Trailing Stops

No one can predict what the market’s going to do all the time. That’s impossible. No one’s ever done it. Nobody ever will do it. I don’t care what you hear. And that’s why we don’t predict the market. I hate when people say, how do we predict what the market’s going to do? No one has a crystal ball. This is all about mathematical probabilities. And that’s it, which is exactly why we have to keep our stops in our protective stops and our trailing stops. I would just keep my stop a below these wave lows. And then once I get up here to weigh five, what I would do is look for a momentum shift.

Trailing Stop Explained

I don’t really want it to break the low here, right? This is our structure that I was talking about and so that’s my protective stop. I don’t want the market to break the structure for the reason that I got into the trade, it gets close but it doesn’t provide support and we’re golden. So this will be my initial protective stop right here. The reason I got into the trade is, remember the place your stops go, as long as the reason continues to exist for getting into the trade, keep your trade on, we want to keep our losses small. But we want to let our winners run as well. You don’t want to get out too soon and we allow for the market to go from low volatility, which is what’s happening here.

 

Rubber Band Trade Strategy

I’m not asking for any favors, but if you found this video or my channel as a whole valuable, then please go ahead and click the share button. That’s actually the best thing you can do to move the videos up in the ratings so that other people can see them and get value from videos on my channel. Not only this one but all of them. Also, click on the thumbs up icon. Love it when you leave. Comments that really encourages me to create more free tutorials for you and I’ve got a Freebie for you today, a big freebie and that is my rubber band trade, so I’m going to give you an actual trade set up with all the rules, all the conditions, everything absolutely free and let you try it out on me.

So do it with paper money first obviously, but it’s called the rubber band trade. I will send you a video for it. It’s a 26 short minutes or it’s a really simple trade, but it has a very high win loss ratio. And you can get that by simply clicking on the image in the top right corner of this video or in the description below the video. Or, if you’re not watching this on YouTube, then there’s probably a link below or an opt-in form on the site or somewhere. Anyway, why don’t 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.

What did you think of this tutorial on Trailing Stop Forex Strategy? 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 new Trailing Stop Forex Strategy 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 the first video.

Those interested in Trailing Stop Forex Strategy that works in today’s markets also showed an interest in this video:
www.topdogtrading.com/scanning-for-high-volatility-trading-strategies-the-counterintuitive-way/

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Scanning for High Volatility Trading Strategies: The Counterintuitive Way

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Volatility Trading
Scanning for High Volatility Trading: The Counterintuitive Way

Volatility trading poses implications that can either make you money or lose that same opportunity. Due to the high risk associated with trading in volatile markets, traders should take into account the best strategies when trading in such markets.

To better predict contractions and consolidations in the market and when to enter and exit a trade, it is critical to study the strategies that would maximize your trade.

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Volatility Trading Strategies

Let’s begin with the problem and then give you the solution. One of the problems with volatility trading is that a lot of people will use this for scanning for markets, whether it’s the stock market, futures, forex, and they are generally looking to scan for high volatility trading opportunities. So their logic in that is, well, I want to trade a market that’s really moving, right? And it makes sense. There’s a logic to that. Certainly, we want a good reward to risk ratio. We don’t want to trade Markets that are just consolidating and moving sideways. Therefore, it’s fun to make a trades in a market that’s really moving and your P & L goes up faster. It’s more profitable and you make more money faster and then you can take that same money, put it into another trade, and you can compound your money faster.

That all makes sense except for one little problem which actually turns out to be a big, huge problem; that is, this volatility has cycles, that’s the bottom line. Cycles move in many different ways. There are cycles that are trending and then non-trending cycles. Another type of cycle is the expansion and contraction cycle, and that’s what we’re talking about today; high volatility, low volatility. Another one is randomness and chaos. That’s a big one. We’ll talk about that someday. Another one is just your swing highs and swing lows, that’s the most commonly known type of cycles. But today, that type of cycle that I’m talking about is that the market moves between high volatility moves and low volatility moves. One of the easiest way to see that is with Bollinger bands. And that’s what I have on here today.

Low Volatility Trading Strategy

Bollinger bands are very easy to see markers of volatility. Here you can see the cycles we’re in a low volatility move. And then the Bollinger bands move away from each. This is what you really want to see. So yes, the upper Bollinger band moves up, but you also want to see the lower Bollinger move down. That is the key where they’re moving away from each other. So, it’s actually that lower, even though we’re going up, the lower Bollinger band is very important to look at and make sure that’s going down. That indicates that we’re going into a high volatility cycle and cycles are just time, and then we go into a low volatility cycle again, and where the market has a very low range. So think of volatility as the range of the market.

So low volatility, high volatility cycle. Then guess what, we get back into a high volatility cycle. Then after that, guess what, from here to here, we’re back into a low volatility cycle. Then from here to here, high volatility cycle. Then from here to here, we’re back into a low volatility cycle and you get the point and the average trend on markets these days is five Barry waves. That’s my own unique way of counting waves and this one goes seven so it gets extended and that’d be a good place to start looking for a reversal actually. So you can see the cycles of the market’s moving from high volatility, low volatility. And here’s the mistake that a lot of traded recruiters make; they will actually use a scanner thinking I want to get into a market that’s really moving, so they scan for high volatility markets.

Quantitative Volatility Trading

The problem with that is by the time the mathematical formula of the scanner that gets enough data to accumulate for a high volatility move, guess what, it’s too late. It’s going to catch it probably around here. So it’s going to catch it here because it takes some data to go through the mathematical equation of the scanner before it can confirm that we’re in a high volatility move now. Well, that’s the problem. By the time it shows up on the scanner, it’s late and you’re going to be late for the party and you’re about to enter into a low volatility cycle and then you wonder, ‘how come every time I get into a high volatility market, the market goes into consolidation?’

So you try it again and by the time the scanner and its mathematical formula crunches it and confirms it is up here and you get in, you say good. I mean a high volatility market, and then the market just churns sideways and then you start thinking, the market makers hate me. They’re watching my individual account. The specialists are watching just me and trading against me. No, it’s just that evidently nobody’s explained to you the cycle of high volatility and low volatility markets. So as usual, what you want to do is the opposite. You want to trade the low volatility cycle, you want to scan for the low volatility cycles. Why? Because now you’ve got just the opposite, just about the time that the mathematical formula of the scanner says, OK. So we’re in a low volatility market.

Trend Trading Strategies

Guess what? It takes time for it to do that and it might come up somewhere in a balance. It comes up about here and now you say, well great. So now is when I want to get in on. You can do the several ways you can do the breakout of this high or you can – by the way, one of the biggest questions is the direction of when you get into a low volatility cycle, basically a sideways move, whether it’s a triangle or just a channel, the big question is always ‘which way is this going to break out’? And there are two answers to that. Number one, you want to trade it in the direction of the trend of the chart interval that you’re treating, but only early in a new trend.

The reason for that is the trend is your friend until the end. And what does that really mean? That’s instructional. No, that is teaching you something. If the trend is your friend until the end, then at the end, it’s what, your enemy. So the meaning of that slogan, which is very critical to understand, is that you should only trade in the direction of the trend early in a new trend. So that is what that saying really means. If we can catch this then that’s golden, that’s your first retrace in the new trend. And you can take it here, in this breakout. That’s very good too and maybe even a little bit better. So then again, you scan for the low volatility market in catch up, coming out, scan for the low volatility market. Remember, this has been a low volatility this whole time.

Technical Analysis

So it’s got enough time to calculate in the mathematical equation. Same thing here – and you want to get in early on this. Some people, a lot of people waited for the breakouts. And that’s an old-fashioned traditional way of doing it. But, you’re giving up a lot of your reward. First of all, your risk is greater because in these examples, if you wait for it to break out of here, you’ve already given up all this and I would have gotten in above the high of this bar here. So my risk is much smaller as opposed to the risk of about that. And then not only does it make your risk bigger, but then, of course, it diminishes your reward as well as opposed to that reward, that’s just through the half cycle obviously.

So risk-reward ratio on breakout trades not nearly as good, prefer to get inside of the contraction. And then that’s the key, buying it inside of the contraction. So that is one part of it. The other part is, as far as the direction to trade, only treated in the direction of the dominant energy of the longer term timeframe. So that is the second dancer as to how to determine which direction to take these consolidation trades. So your reward to risk ratio is better. Also, you’re getting in before the retailers, instead, at the same time as the professionals. Retailers always wait for too much confirmation and if you wait for too much confirmation, you’re late for the party and that’s the problem because they don’t have the confidence, the skill or the knowledge on how to get in inside the consolidation.

Volatility Trading

So if you’d like more information on how to trade inside a consolidation, I have another YouTube video on that, on triangles can either just searching YouTube for it or send me an email and I’ll be happy to direct you to that. So, if you liked this video, please understand that sure, it’s free. But if you got value from it, you actually have a moral obligation to pay it forward by clicking on that lovely little share button below. Believe me, the spiritual satisfaction you’ll get from that will be very rewarding and Karma will be kind to you.

In addition, if you’re watching this on YouTube, please click the thumbs up icon below and I love it when you leave comments; that really encourages me to continue to create these free tutorials for you. Finally, I am giving away one of my favorite trade strategies called the rubber band trade; it has s a very high win-loss ratio. I’m going to give it to absolutely free, comes in the form of a 26-minute video, and you can get that rubber band trade strategy by simply clicking on the image in the top right corner of this video or in the description below the video.

There’s a link there for it too, and if you happen to be watching this video somewhere other than on YouTube, there’s probably a link below or an opt-in form on the side anyway. Why don’t you 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 Scanning for High Volatility Trading Strategies: The Counterintuitive Way? 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 new Scanning for High Volatility Trading Strategies: The Counterintuitive Way 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 the first video.

Those interested in Scanning for High Volatility Trading Strategies: The Counterintuitive Way that works in today’s markets also showed an interest in this video:
https://www.topdogtrading.com/swing-trading-strategies-stocks-mcclellan-summation-index/

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Breakout Trading Strategy Indicator Forex and Stocks

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Breakout Trading
Best Breakout Trading Strategy Indicator Forex and Stocks

Sticking with the most used, proven tools in breakout trading is what most traders do nowadays to avoid the risk of losing money as a result of false breakouts, and the like. However, this approach narrows them down to these few tools and forgo the greater reward that some uncommon tools may bring in predicting market movements in trading.

In order to have a competitive edge in trading; whether it’s Stocks, Futures, FOREX, etc., it is best to learn and use some uncommon tools that only a few people know about; the results and implications it generates, to win the market.

Was this video on Breakout Trading Strategy Indicator Forex and Stocks helpful to you? Leave a message in the COMMENTS section at the bottom of this page. 

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Breakout Trading

Today, I’m going to share with you a FIBONACCI and FOREX stock market rarely taught, trading tool. It is called the FIBONACCI spiral. This is not to be confused with the fib ark or the Fibonacci circle drawing tool. This is different. So, first of all, I’m going to show you real quickly what it looks like. Then we’ll talk a little bit about it, the mathematics of it, and then I’ll show you how to actually use it on your chart. I’m using Thinkorswim here and we just go down here to FIBONACCI spiral. Basically, what you’re going to do is click and then release, and you’ll see what it does. So you can see it’s not really forming circles because the circle tool would connect here. These are expanding arcs or whatever you want to call them.

They continue to expand and that’s what the difference is between; this and the FIBONACCI circle or Fibonacci Ark drawing tool. Now, it only takes a lot of time explaining FIBONACCI to you today. You can look that up on the internet, Google it, and you can get all the information you want, but just as a quick little maybe 60-second introduction as to why we would even consider using these spirals. So your Fibonacci sequence is basically this and it goes on. This is the sequence; zero plus one equals one, one plus one equals two, one plus two equals three, and on and on and on it goes. So that’s where we get our numbers from. All right, now let’s talk about how that plays out in nature. So this is a basic diagram of the FIBONACCI spiral.

Fibonacci Trading Strategy

All right? How is that calculated? So the spiral is created by taking the numbers in that sequence and we begin with a golden rectangle and we break that down into smaller squares based on the Fibonacci numbers in the sequence. We divide each square with an arch. And by doing that, the pattern of the FIBONACCI spiral is created so you can see there and that you’ve got your number. So the bottom line is that mathematicians and scientists have found that this pattern is actually found in nature everywhere in nature. It’s just amazing. We find it in botanicals. You see this same kind of pattern in hurricanes. We see the pattern in the formation of galaxies overhead. The most famous example is probably the Nautilus Shell and we’ve all seen that of course

So how do we apply this to trading? What we’re going to do is it’s going to be applied to a chart and we’re going to create support resistance levels that are both a confluence of time and price support resistance. So what we do is we come down here to our drawing tool and we choose the FIBONACCI spiral. This is Thinkorswim again, and we have to click.

Then we pull it up to the high; let’s see if we can get that actual high there and lock it in. OK? So it’s created in our spiral as I showed you before, but now we’re applying it directly to the price bars. And as you can see here, it is a projection, so Fibonacci projects out into the future. So I drew it from this low to this high that your impulse moves because that is where we had our major thrust and then the market just went sideways from there.

Breakout Trading Strategy

Now what we’re going to be looking for is the breakout of the next spiral and it comes in right here. So you could look at this as a type of breakout trade if you want it to, but it adds. In other words, you can have resistance above there and we’ve got, again, typical, a little false breakout comes right back down here. But here, again, this tells you this is a good time and price because it is an arc, alright? Or spiral more properly. It is measuring both time and price in one tool. So it comes together at that time and at that price and that’s when we look for the breakout. All right, let me give you another example. Here’s how flexible this thing is by the way. It’s pretty cool because it’s really based on ratios.

Now we’re going to draw it from that low up to that high because that’s the next impulse move, right? That’s the next move from low to high. And then we’d go sideways. So now let’s come back down here and move our chart around a little bit and you can see again, this tool is not a tool for measuring precision moves to the bar, to the penny, to the pip. We’re looking for zones, for areas, so you don’t want to use this alone. You definitely want to use this with other tools that you’re already using what had been proven. So we’re looking for a little shift here and we broke through it and it’s not obviously right on the line, but after it gets very close up, now this one’s pretty good.

Breakout Trading Method

Here, we have a similar thing and this is the kind of thing that I look for with us. We’ve got resistance and, again, this is now the time that it breaks out of that previous high. So for breakout traders, if you’re looking for the breakout of resistance in both of these examples are showing you, then this is something that you can add to your repertoire and say ‘I’m going to wait until we get the confluence of time price as indicated by the FIBONACCI spiral’. And then, if I get other signals, volume, price bars, indicators, whatever else you use, you can use this in conjunction with that to add to the probability of your trade.

Now, one question I know that I’ll get is, ‘hey, where is this tool on my charting software?’ So I can’t answer that question for everybody. Unfortunately, I don’t know the details of every single trading platform out there. I know this is on Thinkorswim. So, please just contact your support team that provides you with a trading platform and ask even if they have the tool, because this is not a tool that is very common. It’s a great thing because if you’re using something that most people don’t use, that gives you an edge and that’s what you’re looking for in trading. This can be an edge where you see something on your charts that the person on the other side of the trade doesn’t see. They don’t see. That is why it’s actually kind of great that it’s not on that many trading platforms.

Rubber Band Trade Strategy

If you liked this video, please understand that sure, it’s free, essentially. But if you got value from it, you have a moral obligation to pay it forward by clicking on that beautiful little share button below. Also, if you’re watching on youtube gimme a thumbs up, and I especially cherish your comments, they really encouraged me to create more free tutorials.

Also, I’m going to give you a gift today, which is my rubber band trade it has a very, very high win-loss ratio and this is a trading actually start taking. I’m going to encourage you to do it on a simulator or a demo account first. Obviously, make it prove itself to you. But I’m going to give you all the rules, everything, and I want you to start making money.

So it’s a video that’s 26 short minutes and 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. And if you’re not watching this on youtube, then there’s probably a link below or an opt-in form on the side where you can request it. And after that, I will personally email the video to you with the rubber band theory and 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 Breakout Trading Strategy Indicator Forex and Stocks? 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 Breakout Trading Strategy Indicator Forex and Stocks 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 the first video.

Those interested in Breakout Trading Strategy Indicator Forex and Stocks that works in today’s markets also showed an interest in this video:
https://www.topdogtrading.com/forex-strategy-success-strategies-that-actually-work/

Subscribe to my YouTube Channel for notifications when my newest free videos are released by clicking here:
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Trend Following System

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Trend Following
Trend Following Trading Best Trend Following System in Today's Market

A trend following system is a form of forecasting. Traders have to forecast, as accurate as possible, the movement of the market and come up with a process/system to follow market trends to succeed in trading. Unfortunately, only a few traders have come up with an effective trend trading system. The rest are either just wondering how the market moved this way and that, or on the brink of quitting.

In this video, you will learn how to establish a tested Trend Following System to succeed in today’s market.

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

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Trend Following

Welcome to this video on putting together a trend following system. Today we’re going to talk about the basics of a trend following system which generally is considered; by the way, I will also add incorrectly, to be based on higher highs, higher lows. Now we all heard that; and that’s supposed to be a trend, that is not enough. So it’s not that that’s completely wrong, but there were some things in trading that are complete truth, the whole truth and nothing but the truth. Other things that you read about in trading are half-truths, and this is a half-truth. So let’s get to the whole truth and nothing but the truth and show you why that is not enough. In fact, I was on a Webinar the other day and I liked what a woman said.

I’ve adjusted what she said a little bit. I used to say, OK, so this is your basic Meta pattern and that’s true, but we’ve got to add more details to it in order to make it more specific and accurate and precise. So I said, the devil’s in the details, she said no heavens in the details. And I kind of like that thought. So I decided to change that up a little bit and to say the Dinero is in the details worth a dollar is in the details if you will. Let’s take this higher, high and lower high stuff off here because it’s not meaningless, but it’s not enough. So, let’s move our charge forward. Now, technically, if you look here, we do have a higher, higher from this high to that high, definitely a higher high.

Trend Following Trading Strategies

So, is that a trend that should we build a trend following system around that? And the answer is absolutely not. Now, it’s a higher high. That’s correct. But it’s not a trend continuation, and here’s why. So in the markets, you have to give the market some wiggle room. You’ve got to allow for some noise and chaos in the market. You’ve got to remember, there are people all over the globe who are trading these markets and they’re trading from different countries using different methodologies, different time frames, and different systems. Some are discretionary traders. Anyway, you get millions of people trading this stuff and nothing’s going to come out exactly to the penny, to the pip, to the tick or to the pixel on your chart. So the bottom line is you have to allow for that variance that is just part of the system.

What I do, instead of just saying, we need a higher high, I go like this, ‘I take a vertical or I’m sorry, a horizontal line and I’ll put it at that high’. That’s it. Looks like it’s about right there. And then I say, OK, we did make a higher high here. That is correct. But what actually is going on there, price-wise, is the dynamic of the auction place because that’s really what markets are. Markets are huge auction places. So what’s actually happening here? And if you’ve ever been on the floor of the exchange, like I have, you will really see and feel it’s a visceral thing, the energy of the money flow.

Trend Following Systems

And then when I came back to screen trading, I brought that experience with me and I’m like ‘now I understand the charts are just mapping the math of the mass psychology’. That’s going on through the exchanges. The real market is what’s going on between people and to these days, computerized systems and so forth. So, when we look at this, and again, allowing for a little bit of chaos, randomness and so forth in the market, what we see here is, sure, you get a higher high. But that’s just the very high of where we reached. What really was the auction place saying? In other words, the massive, what’s the mass psychology there? We got a little bit above it and made a little bit of a higher high, then the event, and right away the market reverses, right?

So it negates the Barbie for that in my type of candlestick analysis, a little bit different than most. I don’t really stick to the traditional Japanese candlestick pattern trading, a little outmoded. That’s my personal opinion. Anyway, we say that in top dog trading, the red bar negates the Green Barn. Then we get a neutral bar and then we make another attempt. And then again, now what happens? This bar is splitting this high, these highs. So it opens below, closes above; which is the high there, closes above. So the overall dynamic of the auction place is that it starts down here and up here, and we’re testing these areas. That’s what’s happening. But the market is constantly testing previous support and resistance levels because the market has memory, as they say in.

Trend Following Rules

So the participants were actually thinking, ‘that’s the value of the market that was established’, and well in this case about an hour ago. And people want to come back into that level, get a little nervous like uncertainty, which the market hates. And people are thinking ‘this is the highest value that people were willing to pay’. Again, think of it as an auction place. Think of it like selling your car, right? You might want to sell that car for $20,000 and that’s great, but if no one’s willing to pay you $20,000, you’re not going to sell it for $20,000 because there’s no one on the other side of that transaction to pay you that much money. Now they might sell and pay you $18,000 and then you have to decide whether or not you’re willing to take less or negotiate something in between.

That’s the exact same type of dynamic that’s happening here. So the answer here is no, no one’s willing to pay $20,000. Now, I shouldn’t say nobody. Oh, you can’t see the price there. Anyway, that’s a 121. So we’ve got a few, but we can’t get enough buying traction or there are not enough buyers to make this market sustain to the upside. Actually, let me forward to the right a little bit more so you can see what actually happens. So the way we read this again is, all right, this green bar here, that’s just an attempt. This is the market participants testing. Do the global markets, the global market participants, is their sentiment now bullish enough to break through that resistance level and say we’re willing to pay more than that no? And the very next bar, the red bar answers the question and says nope.

Trend Following Indicators

And, in market profile terms, this is called a rejection of value. I’m not the only one who talks about this stuff. This is now saying the market has and the term, again, is rejection of value. It’s tested. These higher prices and the global markets have rejected that, meaning not enough people are saying ‘I’m willing to buy that’. I believe the market is worth that. They’re saying ‘no, it’s not worth that much, that’s overpriced, I’m not buying’. And if you don’t get enough buyers coming in there, you don’t get into finding traction, it will not follow through and so, therefore, that is not so. For example, we call this a wave one and we called this a failed three because it attempted to go higher and it did go higher, but it actually could not again get enough traction so it actually becomes a bearish pattern.

It’s actually the opposite of trend following to the upside and it becomes a reversal pattern. So, that is the kind of thing we would actually take short. If you liked this video and you’ve got some value from it, of course, it’s absolutely free on the Internet. But, you know, I think we get so used to everything being free that we forget about our moral obligation. So, if you got value out of this, then I really encourage you, the best thing you can do is to click the share button. That is number one, click the share button below that provides value to other people. That’s your way of paying it forward. I don’t charge you anything for these lessons. I’ve got over 100 videos on youtube right now.

Rubber Band Trade Strategy

They’re all free and I don’t ask you to pay me any money, but the only thing I ask you to do is pay it forward and share it with other traders. So click that share button and share that value with other people. And by the way, click the thumbs up icon. That helps a lot. Comments I love and I’m also giving away one of my favorite trade strategies called the rubber band trade, which has a very, very high win-loss ratio. So this is a value added.

It’s also free by the way, but it takes a little longer than my youtube videos, so it’s 26 short minutes, but these youtube videos I try to keep to around 10 or 12 minutes, so I’ll be happy to give you my rubber band trade strategy absolutely free. You just click on the image and top right-hand corner of this video or the link in the description below the video, and if you’re not watching it on youtube, there’s probably a link below or an opt-in form on the side. Anyway, once you do one of those options, I will be happy to personally email the video to you. We have 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.

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