Reading Forex Market Structure to anticipate retracements and trade them profitably

Even if you're relatively new to trading, you've probably already heard by now that top-down trading is the way to go. What that means, is determining the tradable bias on the combination of timeframes that align with your own preferred style of trading (whether longer term or shorter term) and then looking to buy the dips and sell the rallies accordingly.

Sometimes, though, a reversal presents itself which forces us to make some decisions. For example, where did the reversal start? What kind is it -- merely corrective against the trend, or something else? And once those questions are answered, what kind of trading approach would seem to apply?




In today's weekend video update we'll walk you through the corrective rally that was confirmable on the Daily chart for EUR/USD as early as January 19th -- not only pointing out things to look for to confirm the larger reversal unfolding, but how you can adapt your trading style to take advantage of that move. If you can get these ideas 'under your skin' as the saying goes, you're well on your way to understanding the inevitable twists and turns in price action, and how to anticipate and respond to them profitably.

Full Video at: www.forexmentor.com/swingtrader/update/20120128

Category:

Education

Tags:

• top-down
• trading
• bias
• Forex
• trend
• time
• frames
• dips
• rallies
• reversal
• currency
• Forexmentor
• Frank
• Paul

[MsDawdawdaw]

what a chart illustration ?