Forex Trading Tip | Trade What You Know To Be True

http://www.trading-strategies.info
http://www.facebook.com/TradingStrat - In this video I talk through what led me into a short trade on the 28th Dec '11. The most important lesson you should take away from this video is to trade what you know to be true and not what some outdated book or method tells you.

Category:

Education

Tags:

• Foreign Exchange Market
• forex
• Forex Training
• Trading
• currency trading
• forex trading

[randy12368]

That inside range you're talking about is a text book move known as a breakout pullback continuation.

[pnewton69]

@randy12368 Actually in this case on the time frames we looked at both in the video and on the images on posted on facebook there was no pullback on GU until after a 150 pip drop.

As I said in the video this might be more actually described as a false break or a range reversal.

Entry images on facebook link above in description

[jsp07411]

i agree, i lost a ton of money trading this format. wish i did my homework.

[pnewton69]

@jsp07411 glad you liked it :-)) while we talk about a specific pattern on the video The message was more about comparing what you know to be true with research and observations with what the text books tell you should happen.

I hope you can take action with this new spin on an old pattern.

Check into facebook for regular updates

[MsDawdawdaw]

you can use insidebar or reversal candle only in the direction of the trend. it must be a trend otherwise don't trade insidebars

i this video we see cable daily chart for this pair there are not a trend from october to december so you must ignore insidbars for this period .

Nice insidebar trade for GBPUSD were on 23 december where the trend was DOWN and we breach the insidebar into the downside

Inside-bar trading only : when TREND (55 MA) and only if breach in the direction of the trend

[pnewton69]

Thanks for you input @MsDawdawdaw personally I dont agree with you but thats what makes this trading lark great if we all agreed there would most likely be no market.

It does work trend and counter trend which you just simply need to look at any chart to see.

Finally at the moment there is no trend at all and there hasn't been since Feb 09 on GU (see monthly charts, Since Nov 08 on EU) Interestingly you will see the exact same condition I mention on the monthly chart for Feb/March on GU.

[thomasdevon]

Nice video Phil, I am subscribed now. I think your observations confirm what I have read aobut this tendency, characterised as the hikkake pattern?

[littlebabeedtcom]

no indicator or candle is enough to trade. take any pattern out of context make up any rule about it and you'll lose consistently.

[satjathamma]

I don't agree with your thoughts in this video but I find your videos interesting,

and you might be right on the inside bars on other charts,

the reason i dont agree with this video is because the price moved into a supply zone,

and thats the reason of the decline, I would more think that in this case,

the institutional traders pushed the price into this zone to trigger a ton of sell orders,

which will help them to get the price to where they want it to go,

they could be adding on right there

[gabesz65]

Excellent Phil, thanks !

Gábor