What’s up merchants welcome back to. one other youtube video today i’m going to. be teaching you a quite simple technique. that i see occur many times within the. foreign money market i will speak about. precisely how yow will discover these kind of. setups why they work so effectively and. why that is considered one of my favourite things to. look at in markets so stay tuned let’s. bounce into the video proper now. hey merchants welcome again to the YouTube. channel when you do not already know me my. name is Nick I share all sorts of forex. matter content material here on YouTube so if. you are not already ensure to. subscribe to the channel down under and. additionally give this video a thumbs up should you. like this kind of sort of indepth. content material so with that said let’s speak. about this idea so right now I’m going to. be sharing a technique now this technique.
Is Primeau sleeve okis on worth motion. okay and what I’m going to be speaking. about on this technique is a value action. entry exit and sort of full commerce begin. to complete concept for merchants who are. both type of newer to buying and selling or. struggling to search out consistency I’m going. to speak to you guys about one of my. favourite setups that I prefer to search for. available in the market and why this setup is. actually so so highly effective now what we’d like. to do in order to begin out this idea. is we have to understand something about. the forex market when we’re taking a look at. the forex market we’re speaking about. currencies proper we’re speaking about. things like the US dollar proper and in. this case the yen proper so greenback JPY. now what I’m gonna be showing you is. one thing that can be utilized on any. timeframe for instance right now I’ve obtained.
The 4hour chart pulled up but actually. this is something that can be noticed on. any timeframe as a end result of it occurs all of the. time and that’s what we’re gonna get. into so what we’re in search of with this. idea is mainly we’re gonna be. utilizing it once more value motion to find a. particular setup that occurs all the. time so after we discuss currencies. although we have one thing just like the US. dollar and the JPY or the Japanese yen. what we discover is that in markets what do. we know about them do we all know that they. pattern on a regular basis that’s not the case. proper the market does not go like this. proper a minimum of not normally and never for. limitless quantities of time what the. market actually does a lot of occasions is. it is backwards and forwards or it is trending. one direction more typically than not no. truly about sixty five 70 percent of the time.
We are principally back and forth so when we. have a market that is mostly again and. forth here within the currency market where. we have when things get stretched the. upside usually they start to come again. when things go to the draw back they. start to come again. and that’s not all the time however it’s lots of. the time more usually than not the market is. not super trending and that is why trend. buying and selling could be a troublesome task nicely in. right now’s video once more I’m gonna be speaking. about a explicit strategy that I like. to look for that entails trading most. largely ranges or trading mostly the. reversal of developments that are beginning and. what we’re going to be in search of is. not simply necessarily shorting a pattern. proper we don’t essentially just need to. be shorting this market on the way up. that’s not essentially what this. technique goes to be about and we’re.
Not going to be simply buying simply because. the market goes down what we’re. going to be doing with this concept is. we are going to be on the lookout for signs of. a potential reversal and trading based mostly. off of these indicators to provide ourselves a. greater chance of catching the. reversal of a market whether or not it is lengthy. or quick one other actually cool thing about. this technique that I’m going to talk. about is it would not matter where the. market is going it might be going up it. could possibly be taking place we’re going to be. on the lookout for signs that it is potentially. going to alter directions and looking. to catch a half of the reversal so without. further ado let’s talk about this. concept what is it precisely that I’m. speaking about what are we taking a look at. right here. well let’s notice one thing about this. market what do you see well you see a.
Market that’s making a series of higher. highs and higher lows what does that. mean well if you’re a newer dealer very. simply what meaning is we’ve. markets which are pushing higher and. greater and not solely are they pushing. higher on the highest facet proper the place. you are making larger highs proper you see. how these highs are greater than the. previous excessive for a reasonably apparent. idea when we’ve larger highs like. this that is one factor and we even have. greater lows meaning that the value is. pulling back however buyers are stepping in. and pushing that price bullish so what. is that telling us that’s telling us. that there is lots of demand in this. market proper so clearly buyers are in. management of where the price is headed. proper now which is up so what we’re. going to be making an attempt to do is we don’t. essentially with this particular.
Strategy we do not wish to be shorting. this market. not we. the market continues to be sturdy what we are. going to look for is a key word right here we. are going to search for weak point and the way. are we going to spot weak spot properly let’s. go back to our definition will hold. things quite simple here our definition. of energy was larger highs and better. lows greater highs HH and better lows so. if that is our definition of strength to. an uptrend then what’s our definition of. weak point properly we will kind of reverse. engineer this and for instance we flip the. script what if we had lower highs and. decrease lows would this not by our very. own definition right here be this begin or. potential start of a special path. trend properly this man’s is the kind of. concept of a head and shoulders sample. if you don’t know what meaning give. me a second here I’ll proceed to.
Explain we’re going to discuss a. head and shoulders sample and I know. this is thought of a primary basic concept. but generally it is the best stuff. reengineered and type of introduced again. to the fundamentals that can really be some of. the most consistent stuff in for X and. in buying and selling normally okay so we have. that all cleared the chart looks much. cleaner now however what we now have here is we. have once more a market that is making a. series of upper highs higher lows when. that begins to shift we usually see. one thing pretty attention-grabbing occur so. again higher low higher low larger low. greater excessive larger highs greater highs. higher highs so what about here what do. you discover about value here this isn’t. necessarily a better low actually we’ve. got some pretty good proof to suggest. that it is a lower low you presumably can see.
Prices is forming lows right here the place we’re. showing plenty of demand costs shifting up. and you would in all probability even make an. argument that have a look we have got this. sort of development line to the upside right. so price is making a move to the upside. price may be very bullish after which we come. in and we mainly break down we break. down and we present some signs of potential. reversal now we need to be careful right here. we don’t wish to be simply at least in my. opinion here on this particular strategy. we don’t need to be shorting this market. just because it’s made a lower low. I’m truly gonna anticipate something. additional and I’m gonna discuss to you guys. precisely about the place the entrance level. on a commerce like this might be so stick. with me so we’ve got this degree let’s. determine this degree here again right here is. our greater highs higher highs what’s.
Right right here I’ll give you a hint. LH means lower high price tried to rally. once more right patrons attempt to proceed this. uptrend but they failed and this is the. massive factor here when this market fails to. make greater highs and better lows that. is the place things get fascinating as a outcome of. now we’ve the potential to search for. indicators of an even bigger reversal as a result of. bear in mind when the market is again and. forth on an everyday basis proper for the most. part on the lookout for indicators of reversals. could really find yourself being a reversal. and there is some fairly good proof. that you would line as a lot as try and discover. good setups okay so with that mentioned how. could you commerce this concept nicely so now. we’ve got our stage here proper so we have. mainly come up we’ve we’ve formed. this level here at the earlier move we. made a pleasant transfer to the upside we made a.
Nice try but then we failed and formed. this lower excessive nicely now you may be. saying properly we must always just be shorting. right here right properly when you knew that. this was going to be the we’re gonna see. a serious downtrend then in fact you’d. say yeah quick proper here it’d be easy. however we don’t know that in the case to be. truthful we would not know that this is the. finish of the trend at this second this is. too soon to tell as a result of should you can. think about if we’re just trading proper here. it nonetheless appears like it primarily is. bullish right properly in this case what am. I gonna await nicely we have highlighted. this area proper here for a cause. okay this stage is taken into account our. neckline okay if we truly get a device. there’s a device right here on trading view. which is basically cool you’ll have the ability to go over. right here and let’s examine head and shoulders.
Right and it provides you with it will assist. you create just this sort of sample so. now you possibly can visually see if there’s our. Head and Shoulders sample left shoulder. right right here head at the top right. shoulder on the decrease high then worth. breaks beneath what we would name the. neckline I’ll put it out at the neckline. we break underneath well here is the. setup. guys this is the trade that I actually like. on this type of idea again keep in mind. we’re looking for the reversal so that. means we’re trying to go brief but solely. once value begins to show us proof. that there’s a good probability that we. proceed keep in mind we now have no guarantees. in buying and selling Forex we solely have. possibilities so where are we gonna. enter how are we gonna enter where’s our. stop where’s our target all of that. data what can we do with it.
Well let’s get our brief software again. one other actually cool software that buying and selling. view supplies us and bam that is our. entry on this strategy the idea right here is. that as value retests the neckline after. breaking this is the place we enter ok value. broke by way of the neckline to the. draw back we noticed a price break. underneath that level after which price. begins to retrace we make a transfer to the. upside and certain sufficient we see value fall. so to some extent that is type of a. break and retest combined with a head. and shoulders technical sample and. potential technical reversal okay so. that’s where we’re getting into at least. based mostly on this technique price breaks. underneath the neckline we retest this. area we’re in search of the continuation. or the start of a new pattern so we’re. looking for a development to basically show. evidence of weak point keep in mind let’s.
Recap we’re on the lookout for a weak spot in a. pattern and we’re looking to join it’s. horrible handwriting I’m sorry a brand new. pattern and that’s precisely what this kind. of entry does we’re in search of the. retest now where do we put our stops. right as a result of it’s important in this. case how are we gonna define our danger. for this type of concept properly we have. this proper shoulder I’m gonna use that. as my threat I might place a cease proper. above the earlier excessive stop above. previous high so when price comes as a lot as. this earlier high and falls from there. if price starts to break back above it. then I’m just gonna scratch the trade. just gonna take a loss no massive deal ok. now you may have some choices right here and this. is where things get interesting ok. as a result of now. query of the place do we put our targets. so we’ve answered a couple of questions we have.
Got the entry we have got the stop which. defines our danger now where can we put the. exit and you have got some choices right here what. do I imply by options well you’ll find a way to go for. a strict something like a two to a minimal of one. that would give you something like this. that implies that our risk is one time and. our reward is 2 so if we now have. something like a risk of $50 we’re. probably going to make $100 and with. you should you get some good setups and you. get good at finding these type of. scenarios this could work out nicely so. you are making nice profits when issues. go properly and also you’re shedding some revenue. when issues go mistaken that’s a method I’m. gonna give you some extra options for you. to consider once more on the finish of the. day I’m not telling you what you should. do I’m telling you I should think about. proper so you want to think about this.
Concept and find which is most. comfy to you as a outcome of totally different. individuals are gonna be considering different. things are higher right so when you spot a. trend and you notice the potential. reversal you enter proper everyone’s. entry goes to be slightly bit. completely different than the other particular person’s proper. people see charts in a unique way so you. need to ask your self follow this take. a look at the ideas go back take a look at this. idea and figure out what works for. you so now there’s another selection that. we have to make well what if we wish to. goal structure proper so for example we. look for a significant space on the chart. historically properly we’ve got this level. here which seems pretty attention-grabbing. right take a look back here we are able to use. our ideas that we’ve talked about all. the time on this channel pivot moments. like this proper are significant.
Historically that is where provide meets. demand and things pivot off of that so. you would make an argument that’s. something like this or perhaps this level. is a good target on your commerce so that you. may place your goal at the current. construction this offers you a two point. three to 1 so once more you must ask. yourself do I need to go strictly off of. a threat to reward do i strictly need to. go off of a tip base target proper do I. need to go for a hundred pips 200 pips. no matter 50 pips proper that’s another. thing depending in your time frame as. properly remember I talked about this might be. used on a quantity of time frames it would not. should be the 4hour chart however I’m just. giving it a demonstration and then you. should ask your self properly what if I want. to take two. targets that is finally the third choice. that I’m gonna give you guys to think.
About right what if I want to basically. have two targets we might part we could. goal halfway and take profit too so we. need to take revenue one and take profit. two that enables us to scale out of the. trade you could put this one at a. oneto-one proper that is one thing to. think about I know lots of people who. love this idea they put a goal at. one to one after which they put a secondary. target at the two to one or at their. second level or they even let the commerce. run and that is an entire another concept. so again you have some options right here to. take into consideration how would you do that. properly simply so you realize there’s a extremely. simple way you simply take two positions at. half measurement each one placed on the goal. right here at the oneto-one stage or wherever. you see fit for that first goal and. then the take revenue okay so that.
Gives you a few exit criteria see we had. to consider the exit greater than we had. to assume about the stop right so the. goal was slightly bit extra to assume. about and that is that is actually the means it. should be in my opinion it’s slightly. bit you understand your cease is actually. necessary nevertheless it’s additionally necessary to. take into consideration you realize your exit technique. on the great side as well so something to. sort of think about there so again this. can be utilized on any timeframe it can be. used on the 1hour the 30-minute the. 15minute chart it can be used on. completely different charts and this is the place it is. also gonna come down to you doing a. little bit of back testing so I. positively encourage you should you like. this idea when you like trading the. head and shoulders sample it’s a very. simple structure to to acknowledge you. haven’t got to be a genius to do it proper.
You just basically search for greater lows. larger highs right that sort of factor. and you then basically look for these. sorts of setups so this concept is. nothing super tough so the common. one who’s learning trading can. actually start to find these patterns. to search out these setups and to look for. them and to build a method round them. but I highly encourage you guys do not. take these videos and simply say oh I need. you know simply inform me the easy. solution that’s all the time going to provide me. each single answer with no downside. proper what I encourage you to do is take. these movies that I’m sharing I’m. sharing insight I’m sharing ideas and. then concepts that I’ve learned through. my years of trading do one thing with it. okay go take it and back test okay go. take it and back check these ideas go. on the chart spin.
Time take the the diligence to go. apply this concept spot them for. yourself share it with a pal share. the video with a good friend and and ask. their opinion and we’re be taught and work. through it with them alright so again. test this idea well what else plan a. buying and selling plan I guess make a trading plan. cuz you guys get the purpose make a. buying and selling plan you guys could be shocked. in our in our business we provide all. types of various services for traders. and we are continually amazed that there. are so many individuals on the market who don’t. have a simple buying and selling plan written down. I would highly recommend whatever you. stick with or if you wish to persist with. something consistently write it down. bodily on a piece of paper put it on. your desk that may allow you to no less than it. does for me it will allow you to remind. your self what the plan is and tips on how to.