I get this question a lot from my students at CourseinForex.com The answer is really quite simple if
you know what you are looking for. Before I tell you where to enter a trade I want to emphasize that I believe there are two parts to trading. There is the entry, and then there is trade management once you are in the trade. Trade entry is the ability to know when the market will turn so you can enter with very tight stop losses. Trade management is the ability to read the movement of the candles once you are
in the trade to see if there is a reversal that is going to stop you out. If you are trading with the Fibonacci retracement tool it is possible to enter and exit the trade with no trade management, which is pretty nice. If you want to see the Fibonacci tool, use this link. If you would like to set up a one-on-one training session with me to put the booster rockets on your trading, hit this link here. I have a Youtube channel with Forex Trading help videos as well.
Step One
Turn off all of your indicators and look at the naked chart. I recommend going to the four-hour char. Use this timeframe to spot the overall trend. This is the direction you will be trading. be sure to look for any sharp turns in the market. This
is known as marking support and resistance. To see if your support or resistance is valid, look to the left on the chart and see if the market has turned at this area before. The more times it has turned at the marked area the stronger the said mark is.
Continue to do this on lower and lower timeframes until you get down the 5-minute timeframe. At this point when you mark the 5-minute support or resistance you will be looking for entries. What you want to do is find support or resistance that is used on a higher timeframe as well as a lower timeframe. A good way to do this is to use the multi-timeframe stochastic. This indicator will tell you when the market is converging on a strong support or resistance area. I do offer training on how to correctly use the multi-timeframe stochastic in my one-on-one training sessions.
When you see the market turning at the marked support or resistance enter the trade as soon as possible. This is known as making the market come to you rather than chasing the market. I use the banker's candle to see where to set my entry and stop loss. Be sure to use proper trade management and risk management to protect your account. Remember that you are not playing the slots in vegas, and to be a serious trader you have to stop succumbing to FOMO.
This is one of the best ways I know of to catch huge reversals. Be sure to use all of the tools at CourseinForex.com. There you will find many videos to help you in your Forex trading journey as well as a link to my youtube channel. There is nothing that will help you as much as individualized coaching. I highly recommend setting a meeting with myself to go over your trading and overcome your biggest obstacles to profitability quickly.
See you on the Charts,
Dalton Smith
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