Price Action vs Indicators Seminar

it’s a pleasure hello how are you all you can smile it’s okay I won’t bite, so thank you for coming to this presentation today what we’re going to talk about today is price action versus indicators, but what, I’m going to try to do today perhaps is a little bit different to other presentation, so I’m not just going to give you loads and loads and loads of theories, so we’re going to talk about the basic concepts and, then, I’m going to give you a strategy that we use ourselves every day to to make money from the FX markets and some of the indices okay, so I hope some of you’ve got pen and paper ready and we will begin, so a little bit about myself I’ve been trading with my brother for almost a decade now we trade the FX markets primarily we also coach our members, so we’ve got probably about 5,000 around the world and we run traders corner and we also consult for a private investor fund in Europe, so what, I’m going to talk to you about today is stuff that we do every single day we put our own money on the line all right, so this isn’t just theory this is something that we’re that we do actively, so in this presentation we’re going to cover a few things we’re going to talk about why the majority of people fail to make money in the markets we’re going to discuss the indicator myth all right, so why people fail with indicators and also how you can go about using indicators to your advantage to actually assist you with your trading, then where as I said just now we’re going to round it off by talking about a strategy that we use every single day and at the end we’ll invite any questions, so anything that I talked about during the presentations, if you’ve got questions and we’ve got sort of 10 minutes afterwards for you guys to be able to ask them sound like a plan okay 90% of traders fail to ever make money does anybody heard that statistic before or maybe a slightly different one like 95% of traders fail, but the majority of traders fail to ever make any money in the markets why is that does anybody have any ideas undercapitalized, so people come to the markets with these with these amazing ideas of being able to turn something silly like let’s say a hundred dollars into a million dollars and they want to do it by next week, so they’re taking excessive risks you guys are smiling there have you done that they take excessive risks and they destroy their accounts okay they have unrealistic expectations they’re not willing to put in the effort, so many people come to trading and they’re looking for a get-rich-quick scheme they’re looking for the shortcut they don’t want to put in the effort they don’t want to understand what the markets actually tell them they you know they just basically want to sit down to the screen at any point in time click buy or sell and hopefully that makes some money right and that is that’s actually one of the extremely big reasons that traders film gambling mentality kind of goes hand in hand with what I just mentioned and also a lot of you’re focusing on the wrong area everybody when it comes to trading you’re looking for some something that’s black and white okay you want to know, if a and B and C lines up you do X and you get the same outcome every single time you need to understand as traders there is no guarantee when you’re in the markets when you’re putting on a trade any one single trade that you take is random okay one trade in isolation it can go up and it can go down where you make money is over a larger sample size full of trades okay, so when you’re looking at 10 trades or 20 trades or 50 trades that’s where you start to see your edge play out but, if you look at one trade in isolation that can go up it can go it can make you money or it can lose you money now the thing with the trading market is that you don’t have to be skilled to make money anybody in here can put a trade on right now and you guys can make money and the problem with that is that seduces you into believing that you can do that every single time am i right okay, so our indicators really evil forever show of hands how many people in here how to use indicators on their chart or have attempted to use indicators in the past quite a few of you successfully half-off okay, so our indicators really evil is have you seen it written in forums around the place there people say when I took indicators off of my charts suddenly I was successful the indicators stopped me from being successful they clutter your charts they don’t allow you to see what’s actually going on and as soon as I removed indicators suddenly miraculously I started to make money now I don’t think this is a real story, because what you will probably find with the majority of those cases is that they removed all of the indicators off of their charts after a number of years of trying to make money with various different methods okay, so what I believe actually happens is that after spending hours and hours of screen time looking at their charts looking at price action looking at indicators testing different things out they actually start to learn what’s going on in the markets, so it’s not the removal of the of the indicators that actually makes them successful it’s the understanding of the market in general does that that make sense for everybody you all following okay, so how do struggling traders trade anybody got a chart like that you see in a chart like this before probably about 40 million different indicators on your chart, if you asked me to pick a trade there and to make money with it I couldn’t, if my life depended on it is probably game over for me and going goodnight okay, because there’s way too much on there your charts do not need to look like that you can use indicators, but you need to use them in the right way which is what we’re going to show you here all right, so this is where a lot of traders begin they think I can find, if I can find the magic combination, if I can just figure out what moving average works and, if I can throw the MACD on there and the stochastics, then, I’m going to be fine I can quit my job tomorrow and I can start trading and making money right now the good news is that the truth isn’t actually, so far from that you can make money trading everybody in here can do this all right, but you need to start to have an appreciation as to what price is telling you look at the clues of the chart and, then you can add your indicators, then you can start to make money alright, so it’s not, so far for obviously you don’t want an ugly chart like that and I pitch the worst colors possible just to highlight that, but yeah, so here’s an example I don’t know, if you guys can see this, but this is an example of a potential system that someone may use ok, so we have a sort of channel here and believe offer on a Celt know channel on there, but it doesn’t really matter, but basically you will get traders that say when it comes to the bottom and it hits the bottom of this line here it’s oversold therefore I want to buy ok when it hits the top is overbought therefore I want to sell something relatively simple right now, if you look at the chart and you take each trade in isolation, so you forget what’s happened here alright and you look at this you say ok it’s hit the channel I want to buy and you want to buy there and buy there and buy there and buy there and before long what happens your accounts destroyed right but, if on the other hand you actually put the chart into context and you see that okay at that point there maybe you want to buy you lose a trade Sullivan nothing we can do about that, but by the time you get to here the market has broken through a serious structure level I don’t want to be a buyer here being a buyer there makes absolutely no sense whatsoever, because we’ve already broken structure, so instead actually the better the better alternative is to look to sell when it hits the top of the channel do you see what I mean, so instead of being a buyer here just, because the indicator is telling you to do something instead of taking it in isolation actually let’s take a step back let’s look at the entire chart and see what the price action is telling us and, then trade accordingly now that’s not going to make you money every single time I’m afraid I don’t have a crystal ball, so I can’t show you something where you’re going to make money a hundred percent of the time, but what I can do is I can show you how you can make money enough of the time to be able to come out ahead of the game at the end of the day at the end of the month at the end of the year okay, so what it really really boils down to is contextualizing price, so anybody heard that term before, so putting price into context all right, so instead of and I don’t know how many of you here, but a lot of our members when they’re struggling they send us screenshots of their of their charts and we find that there’s oom din like this, so, if you’re looking at a chart that close there’s no way on God’s earth you can actually understand where the prices come from and hence where it’s going to you need to put price into context you need to take a step back zoom out a little bit and, then look it and try and understand what the market is telling you, because ultimately as traders we’re detectives okay we’re looking at the clues that the markets give us, then we’re building a trading plan around those clues, if you’re just looking at one clue there’s no way on the planet you can be successful over the long term now does that mean that you can’t make money or you can’t take a successful trade, if you are zoomed in that closely absolutely not of course you can, but let’s let’s be honest here we’re all in this room here, because we like trading am i right and we all want to make money correct, so we need to put in a little bit of effort and try and put price into context to be able to understand what’s going on, so to to emphasize this, I’m going to show you a series of different charts, if we look at this chart here this is a one-hour chart of the euro dollar now looking at that chart there would you say that’s a down trend let’s see a show of hands who would say that perhaps that’s moving down overall yeah we all agree, so we’d want to be selling here right this looks like a good place to sell it’s in a downtrend let’s sell potentially now let’s move out let’s zoom out a little bit this is a 4-hour chart this is that same time frame there, but on a 4-hour chart actually this part over here now looking at that chart can you seriously tell me that that’s a downtrend or perhaps does that look like the market is going sideways anyone agreed, so on the one-hour chart we’ve got the price that’s moving down clearly it’s moving down we want to look to sell we’re going to make money, if we sell take step back and look at the 4-hour chart actually it’s moving sideways I don’t really want to be a buyer or a seller and, if I’m forced I want to be buying support and selling top and selling resistance, if I’m forced to, so let’s take another step back and look at the daily chart this here this area here is that for our time frame and that one our time frame, so looking at this move here okay, if we were to put over a support line and across here you’d see that that was previous resistance become support at that point in time on the one-hour chart where we all said we are sellers we’re going to make money by selling the market here take a step back for our time frame perhaps not daily time frame anybody is there anybody in their right mind and there will be someone in this room obviously, but the majority of us that would look to take a sell trade there into a support point into a previous resistance point with market momentum moving up that way to the upside, so would you agree that this is an uptrend yes okay, so that’s kind of highlighting to you where we believe and where certainly our members go wrong they zoom into the charts, so much they have their system they’re like I’m taking this system I’m only going to trade this system, I’m going to take every signal that this system gives me which is good to a point, but they’re looking at it in isolation they’re not taking the overall market context into account now I’m not saying that you always need to do multi time frame analysis all I’m saying is that you need to zoom out of your charts and you need to understand where the prices come from, because it’s only once you understand where prices come from that you can really make any educated decision as to where potentially it’s going to go to does that make sense, so far, so good okay, so here’s um a simple strategy an arbitrary strategy we don’t use it a lot, but it’s just to highlight there any indicator can work, if you put price into context, so looking at this chart here we can see that there’s a downtrend okay the market moves up here to a resistance line the next time the market moves up to that resistance line there’s a concept called divergence with indicators has anybody heard of that concept before divergence anyone a few of you okay, so basically what it is is that price action will be doing one thing, but your indicator will be showing you something different, so in this instance here the MACD okay it’s made a peak it’s made a high the market hopefully you can also listen you can all agree the market comes up and it visits the same high, so the markets gone to the same place before the same place as it was just here okay however your indicator here which is measuring your momentum and everything your indicator hasn’t gone up to that same point, so the indicator is telling you that actually there’s there’s not as much behind this move as there was the previous one, so, if you put that into a strategy taking into account price action, so we’re looking at our structure levels we’ve got a previous level of support here that will support there this resistance here comes up to resistance again we, then look to our indicator to confirm it for us the indicator isn’t telling us to take the trade all the indicator is doing is confirming what our what we already know from our analysis does that make sense, so you could be looking too short there anyway and the indicator will just back up your analysis, so from our perspective for my brothers and my perspective we use indicators it’s sort of like a confirmation to your own analysis it’s not a substitute for understanding price action once you understand price action, then you can throw indicators on there and what it does is for traders is it gives you that little bit of confidence now we all know their trading is very difficult from a psychological perspective is it’s tough you know we question ourselves all the time it may be that we want to get into a trade okay, because we haven’t traded for almost five minutes, so we need to be in the market right it may be there actually were too afraid to get into a trade, but what the indicators do for us is they confirm our own analysis, so now, if I’m looking at price and, if I’m looking without the indicator I’m saying okay, so it’s coming to a resistance point, I’m going to look to sell here, if I were to throw my indicator onto the chart I can just have a little bit of extra confirmation a little bit of extra confidence to say that actually I’m looking to sell here and guess what the indicators telling me to do the same thing, I’m going to take that trade Forex confidence is key in trading, if you are, if you you can’t take the next trade in the next trade and the next trade, then unfortunately you’re not going to make a lot of money, so questions what are you guys doing today we have a little show of hands how many of you are in the habit of negotiating with your stops your stop is it one point the market comes down to that point and you like actually market might turn around let’s move it down a little bit lower yeah anybody ever done that before the market may turn around one person two three people the rest of you are all liars okay all of you I’m taking profits too early, so you’ve had a string of losses okay you’ve had four or five losses in a row, then suddenly you’re in a trade and miraculously it’s making money it’s not quite at where your profit target was, but you’re like actually I’ve got some money on the table here let’s take it off the table who’s done that a few more still we’ve got a real issue of honesty in this room you know okay missing opportunities and trying to make up for your mistakes, so you’ve come to the markets you’ve been sat there all morning you’ve got a call from I don’t know your girlfriend your wife your brother whoever you take the call you look at the screen and the trade you’ve been waiting for all morning is now gone and you like I’ve done I need to get it to the trade, so suddenly you chase the market you’ve missed the opportunity you try to get into the trade and suddenly as soon as you’re in the trade it turns around and it takes you out we’ve all been there paralyzed by analysis paralysis through analysis, so you’ve actually got too many indicators on your charts that one saying by one saying cell the other one saying go get a coffee and you just have no clue what to do alright all of these are problems that we all face as traders us included now we’ve all faced these problems before, but what we need to do is we need to figure out a way of getting around that we need to figure out a way of being consistent in our approach to making money in the markets right that’s what we’re here for today almost some of you may be here to see me and thank you very much I love you too, but the majority of you are here to make money, so what do we need from a system what’s the ingredients of a system, if we, if you are to build a trading system and the reason that I put this here is I understand that not everybody in the room are going to be the same all right, so there will be some people that want to trend trait there will be some people that want to counter trend trade there’ll be some people that have day jobs and they can’t sit in front of the screen all day and there’ll be others who can sit in front of the screen all day, so it’s not necessarily going to be one system fits everybody you’ve got to find something that works for you we will give you a very successful system, but you may want to make tweaks to it or something like that, but you need to understand what are successful the ingredients of a successful system, so you need to be able to identify levels from a perspective where price has the potential to break through and not look back now this isn’t going to happen on every single trade there were will be trades that you take where you get into it and it feels like the markets been waiting for you who’s done that they’ve got into a trade or they’ve been waiting for a trade and as soon as they get into the trade the trade turns around and goes the other way and it just it feels like there’s someone behind your screen that’s just waiting for you to get into that trade and, then it screws you, so we need we need to have a system that allows you to get into a trade that will cause you the least amount of pain, because as traders we don’t really like pain I don’t like pain personally all right the system should have the ability to identify the trend, if you’re a trend trader right well at least needs to have the ability to identify the market condition are we in a downtrend are we in an uptrend is it consolidating, because until you know what sort of market it is that you’re in you’re not going to be able to take consistently profitable trades you need to understand the context of the market, so your system in one way or another has to have a way to identify the market condition you need to have a way to identify momentum at the end of the day price can go up or down it can go up slowly I can go down slowly it can go up quickly or down quickly personally I know I prefer being in trades where it moves very quickly, because I don’t have to sit there for a very long time and I can make money relatively quickly or loss as the case may be, so our systems need to have a way of identifying momentum market condition we just we just covered and most importantly down here there must be a clear there must be clear repeatable rules for entering and exiting the markets okay there can’t be anything ambiguous about your system you need to have a way to look at your charts and to be able to follow a checklist and go one two three this all lines up I can, then take the trade, if there’s too much discretion certainly when you’re starting out, then you’re going to you’re going to make mistakes and I liken this a lot to a pilot checklist I am I’ve got a private pilot’s license, so I can fly planes and, then every time I get into the Cockrell before I even gets into the cockpit of a plane we need to do our checks on the outside of the plane as well as the inside and, if I don’t make those checks, then potentially disaster it’s dry all right and trading is much the same you need to be methodical in your approach to trading all right, if there’s way too much discretion, then it’s just kind of like you know just roll up to my charts and see what’s there and that looks like a good trade off I’ll take that and you know today you do it nine o’clock in the morning tomorrow you do one o’clock in the afternoon the next day you take the day off, because the previous two days which is way too stressful you know, if that’s your approach to trading you’re not going to make money all right you need to be methodical, so this is where you get your pens and pencils out or at least pretend to be writing and paying attention evil ways fine just make me feel good about myself, I’m going to teach you a system okay that we use in the market it’s a combination of indicators and it also looks at price all right has anybody here heard of constant range bars anyone know okay well price action or price for any instrument really is on one axis right price can go up or it can go down the sideways part of the price action is only there, because we add time to the equation right, so everybody here when you open up your charts you’ll have an axis along the bottom of your charts which looks at the time, so it may be 5 minutes 15 minutes an hour whatever it is that you choose that’s where the sideways price action comes from, because we decide to add time to the equation and the problem with that is time as arbitrary why five minutes anyone why 10 minutes why 15 why 4 hours there’s nothing significant about any of those time periods there it’s just an arbitrary time it’s something that allows us to measure what price is done in a certain period of time the problem is that price doesn’t have to do anything miraculous over that period of time, so, if you’re trading the 5 minute time frame and you’re trading FX X all right and let’s say you’re trading between over here in Spain between 11 o’clock at night and 1 o’clock in the morning nothing happens, so anybody ever looked at a chart at that time of night nothing happens yet Barr’s print, if you’ve got a 5 minute, if you got 5 minute time frame you will get 5 minutes, then another 5 minutes, then another 5 minutes and another five minutes, but nothing significant has happened it’s just five minutes has elapsed, so what we like to do with one of our training systems is we eliminate time from the equation, so instead of saying we’re going to use a 5 minute chart or a 10 minute chart we’ll use something called a constant range chart now everything, I’m about to show you here is freely available on most charting platforms okay, so we personally use NinjaTrader absolutely free you don’t need to use any spend any money on that mt4, if anybody uses Metatrader you can get indicators for that I think you might have to pay for that, but most charting platforms it’s free, so we use something called a constant range chart and what that is is that’s a chart where every candle from the high to the low is exactly the same distance all right, so, if I choose to trade a temp range chart, then every candle every single one of these from the top to the bottom is 10 pips I only get a new candle once I’ve exceeded 10 pips okay or, if you use fourth, if you use 40 pips and you only get a new candle once price has exceeded 40 pips now what am i doing there think about it by using a range chart and eliminating time what what am i doing I’m only looking to get into the markets when the markets are moving I’m not interested in gets into getting into the markets, if they’re not moving we’re traders we need volatility we need the price to go from one point to another point to make money, if it stays, if it stays in the same point your brokers will make money and your account will cry and suffer, but you’re not making any money, so by using a constant range chart here we are using were utilizing the chart which enables us to see cry section in its truest form, so we can see price only when it moves when it’s going sideways we don’t really care about it all right, so the difference between a time-based chart and a range chart is time-based charts you see you have these wicks here at the bottom of a candle, so you have the body and you have a high and you have a low you can’t have that with a range chart with a range chart you can have a width on one side, but you can’t have it on the other why, because for a new candle to be created the high or the low of the range has to exceed a certain pip size or point or tick size whatever instruments it is you’re trading, so I’ll give you an example of what Matt she looks like on a chart, so this is a time-based chart which is kind of pretty, but lots of wicks everywhere a little bit untidy you wouldn’t really well you could make money from that, but it would be difficult, if we look at the same chart on a range chart it looks a little bit tinier you can see the peaks and the troughs a lot more clearly or I can anyway, so it sort of shows you the same price action, but it shows you it’s in a cleaner form now it may just meet be me, but I like things to be aesthetically pleasing I like it to be easy on the eye, so I can look at the chart and I can be happy with what, I’m going to take the chart that we just saw before was untidy it’s messy you know, if you have to trade it you would, but you wouldn’t be happy or I wouldn’t be, so that’s what’s a range chart is, so now we need to put the components of the system there to allow you to make money, so the system that, I’m going to show you it’s a swing trading system okay it’s a little bit laid back you can use this on the lower timeframes or lower range chart okay, but generally speaking, if this is for people there do have other things to do with their day, so they don’t want to be sat in front of the screens all the time and it roughly gives you sort of three to five trades per week now I hear a lot of hearts sinking at this moment, because they’re like only three to five trades a week what really how am I meant to make money, if I can’t be in the market every second of every day it’s about quality of trade isn’t it it’s not about quantity we’re here to make money we’re not here to make trades all right this is a profitable system, so the key components of the system the chart setup you want to have a range chart and it can be any size you want, so, if you’re trading FX and you want to swing trade I recommend a range above 20 pips, if you’re looking to day trade I’d recommend a range somewhere around 3 4 pips or above nothing much lower than that unless you’re more experienced you have indicators that’s what we’re here for we love indicators right there are 3 moving averages exponential moving averages 25 55 100 now the important question why 25 55 and 100 you’ll know the answer it could actually be the 20 60 and 100 who really cares as long as you’ve got something that works from your chart perspective, if I change that to a 26 moving average a 56 moving average and 101 moving average it would do the same job all right you can do testing you can do tweaking to do something that fits with your own personality this is just a sort of range of numbers that we’ve found to to work over time, so you have your moving averages what are they there for earlier on I said that we need a way to identify the market condition we need to know whether the market is going up whether it’s going down or whether it’s going sideways okay, so we need to know whether we’re looking to buy whether we’re looking to sell or whether we’re looking to do absolutely nothing and remember not being in the market not taking a position is actually a position in itself not taking a position are you deciding that actually there’s there isn’t any favorable condition here for me to be able to make money and, if I can’t make money I certainly don’t want to lose money, so let’s do nothing all right, so don’t ever worry, if you’re not in a position, so we have the moving averages that helps us identify the trends we have the stochastic which is our trigger to enter and the settings we have on a statistic a stick are the period d3 . k 7 and the smoothing part is 3 i’ll give you our email address at the end, if you want these, if you want the slides we can send you the slide that’s absolutely fine, if you are, if you’re not getting a good picture of it over there now the stochastics is are triggered to enter, so our moving averages they give us the market condition they tell us where we’re looking to buy or sell the stochastic tells us when to buy or sell, so, if we’re in an uptrend we’re looking to buy the market the moving averages will tell us that you’re looking for a buyer, but it won’t tell you when it’s just say it’s just giving you permission, but the moving averages are saying ok market condition looks ok for a buyer right now go and look for an opportunity it’s not saying take a trade at this moment in time the stochastics do that, but, then finally we have the CCI now we use the CC on a slightly different way we don’t look for a cross above zero or crossed below zero or across above a certain line to say gets into a trade what we use the CCI for is to keep us out of losing trades, so the the whole premise of this system is that you’re going to be buying on pullbacks in an uptrend or you’re selling on rallies in a downtrend ok, but what the CCI does is it stops us from standing in front of a train I don’t know, if that translates here or catching a falling knife basically, if the market is going one way I’m not going to try and guess when that market has stopped going one way I only want to be getting into the markets when it moves in the opposite direction ok in the direction that I want to be trading in, so the CCI stops us from getting bun now question will that stop us every time none we will there this will have losing losing weeks losing days fact, if you want to know the statistics of this system over we’ve been trading this since about 2011 2012 and it a ver ajiz out at about 60% strike rate, so 60% of the time you will make money with this system 40% of the time you will lose money with the system now does that mean that it’s going to be evenly distributed does that mean that in every 10 trades you take you will have exactly 4 losers and exactly 6 winners no that’s not the way the markets work okay over the course of a hundred trades or 200 trades you will see that that play out, but over the course of the next five trades you could take five losses in a row you could take six or seven you could take ten winners in a row that’s all very possible that’s, because they are the markets we can’t predict what the markets do all we can do is we can put ourselves in the best situation to be able to take advantage of the fluctuations in the market, but unfortunately I personally don’t have a big enough account to be able to move the FX markets I’m not sure that you guys do too well though, if we get together maybe we can pull all of our funds and we can just like by the pound dollar noun force it up good idea okay, so that’s the setup of the system long entry what are we looking for price action alright, so first of all our moving averages we want the 25 to be above the 55 and the 55 to be above the 100 that tells us that we can start looking for long opportunities we can look for buyers for the market to move up that’s what that does for us alright, so this point in time here we’re only looking for buying opportunities we are not looking to sell the market which is kind of good right, so, if you look at that chart there and you try and sell they’re there they’re there maybe makes money they’re there they’re there you’re losing money it’s moving averages tell us when to went to look for a buyer one to look for a sell the stochastic where do we enter price action we look for areas of previous supports that become resistant or previous resistance that become support, so in the case of a long entry we’re looking for areas of previous resistance where become support now does this mean that, if you take a trade where there isn’t a support level you want make money no you will make money, but I can tell you that your strike rate will be significantly lower as we’re looking for an area in the market where we can expect something to happen do you remember a few slides back I said that any system you need to have part of that system needs to get you into a trade when you’ve got the most chance of having some momentum in the trade, so it can take you into the trade and hit your profit target as quickly as possible, so by taking it at a level of previous resistance which become support that allows us to take a trade a place where we’re expecting something to happen mark the market will either come to this point here and drop through the floor or as we can see here it will bounce and that’s where we look to make our money, so now we’ve got the area that we’re looking to trade from we know what the market condition is now we need our trigger to enter that’s the stochastics, so, if you look at the stochastics here you’re looking for a cross of your stochastic right you’re looking for the two averages on the stochastics to cross over, so from the bottom to the top that’s your trigger to enter, but do you enter at this point not quite yet you now need to go across to the CCI and you need to ensure that that’s CCI and this is important in an uptrend it is not below negative 15 all right not below negative 50 I don’t care about the crossing on all of that all I want to know is that there isn’t momentum with the pullback any more I want to know that this pullback here is coming towards an end and that’s what the CCI does for us and I’ll zoom in a little bit, so you get this too across here move the cursor out the way and it’s gone as, if by magic get the stochastic here crossing to the upside in the area that we’re looking to take the treat and the CCI down there you can see that it’s not above not below negative 50 that tells us we aren’t standing in front of a train that tells us that the momentum okay from the pullback is over at least that’s what we think at that moment in time to be able to take the trade okay and it’s important to understand that in any one of your trades is never going to go from point A to point B in a straight line that’s where we make our money it’s never going to go from there to there all of these pull backs here the majority of the time in a big trend is a little bit of profit taking and price acceptance nothing more is not loads and loads of the opposite crowd coming in to go take the trade the other way is it’s basically price acceptance, so people that have made money here they’re taking profits on all of the money they made they’re people that have made money down here they’re taking profit there okay really you will get some people contrarians that are trying to take the market in the other direction, but the majority of time is profit taking all right the it’s the players in the market that are making the most money is them just dialing back their positions a little bit and they have a memory, so what are they going to try and do the next time they’ve just made money taking this short just there they’ve made money there do you think they’ll give it another go I reckon, so right now my brother and I haven’t come from a banking background right we haven’t traded for a JP Morgan or you know Goldman Sachs or anything like that, but we are actually lucky enough that we’ve got a number of friends who have traded for some of those organizations and our family are from a banking background, so our uncles trade for a few major banks in Asia and they and when we talk to them about trading strategies we know it for a fact that this is how they operate not this specific strategy here, but they operate from a perspective of the way that they made my money last time is probably the way they’ll make money the next time, so a long time ago well a few years ago the dollar yen was on the floor don’t know, if you guys have been trading long enough for this, but the dollar yen was on the floor I was a huge resistance level and every time the market came up to that resistance level it sold off came up to again it sold off and I remember conversations that we would have over dinner or something just talking about what we’re going to do with this with a particular position and our friends at the big banks are saying yeah every time it comes up to or things like 82 or something I’m selling stop a hundred points the other side take profit somewhere around 80 no real strategy there no you know this has to happen it’s just, if it comes up to this point here I make money on it last time, I’m going to do it until I stop making money when that stops making money, then I’ll look for something different all right, so you need to understand that behind the markets are human beings executing these trades and human beings have a memory and, if they made money doing something once they’re going to try to make money doing it again and they will do it until that stops working okay, so short opportunity is exactly the opposite moving averages have to be flipped, so the 25 moving average has to be below the 55 moving average and the 55 moving average has to be below the 100 all right that tells us that gives us permission to go and look for short opportunities it doesn’t say take the trade it just says the markets going down start looking for an opportunity to sell, then we look for our previous levels of support and resistance price action coming into the frame here okay, so we’re looking at supporting resistance levels we’re looking at where the market has previously come to, so previous results support becomes resistance, then we look for us to castex and, then we look for our CCI okay I’m thinking I’m coming towards the end of my presentation here, so I’ll hurry up I just want to give you guys, so much that’s the problem I love you all right you’re finally your stop and everything your stock goes behind the swing points okay, so swing high swing low and profit target on this particular system here we look for a minimum of one to one and, then you see where the price goes from there, so you guys when you came in here you were given a flyer right, so everybody have that, if you don’t the details are there okay that’s access to another system that we use, so we’ve given you one here this is our little free gift to you guys, so it’s another system that you can use to make money from the FX markets a number of our traders use them very very successfully, so, if you go to WWE d’ascanio UK you can sign you can sign up there and that will give you access to like a little video course where we show you what to do very effective system and the reason that we’ve given you more than one system here just very quickly before someone comes and rugby tackles me off the stage is basically trading straight successfully it’s nice to have a portfolio of different strategies, because not every strategy is going to work at every moment of the time, so, if you’re trading a portfolio of strategies well one strategy isn’t doing, so well the other strategy will and, then you’ll make money you want that wasn’t my good side anyone know okay, if you have any questions this is our email address at the bottom my brother and I respond to all of the emails you send us any questions you have about the markets world peace whatever it is please feel free to ask us them I was going to go with questions and answers, but I’m guessing though time and any time for questions and answers no potentially not fair enough I love you all thank you very much for watching and I hope you got value okay.

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