Hey hey what’s up my pals so welcome. to the final word foreign foreign money trading course. for beginners so it is a comprehensive. trading course that will teach you. every little thing from a to z right to becoming. a proficient foreign exchange dealer so the price is. structured in a stepby-step manner so. that is actually for you if you have no. foreign foreign money trading experience or. very little foreign forex trading experience so. the course is structured in such a way. the place the. earlier classes proper builds on the last. so you probably can’t just you know. possibly for example skip to the last section. as a outcome of it won’t make sense to you. particularly if you have no foreign foreign money trading. experience so my suggestion is to go. by way of this. program step by step because the techniques. the methods the ideas proper. builds on the foundation that you have. discovered earlier at the same time a few of.
You watching this may be. an skilled dealer if that is the case. proper i will put the timestamps. in the description you possibly can see you understand. which part of this coaching video. may curiosity you which ones topic proper and. just go to the relevant. section of this video so with out further. ado let’s get started. so in this part you’ll be taught quantity. one what’s foreign forex trading. who’re the most important gamers in foreign exchange. trading the advantages of forex trading. over the other markets. like stocks and what are the foreign exchange. market hours so let’s get began. so initially what’s foreign exchange. trading nicely forex. stands for overseas trade in case you. have not you realize realized it but. it’s simply an trade of one forex. for another. and you may be thinking why do i need. to you realize trade currencies right. now. very simple for instance for example you.
Want to go on a trip. and for example you are in the u.s and you. want to come to singapore for holiday. properly guess what. if you bring your us dollars into. singapore and buy a bowl of noodles the. girl will present you with the. you know like what you are attempting to do. man so clearly proper you’ll have the ability to’t use. us dollars in singapore so what you want. to do is to go to a cash changer possibly. in the us. and what you will do is sell your us. dollars in exchange for singapore. dollars and then you’ll have the ability to you understand come. to singapore. have a nice vacation have a bowl of. noodles rice and you understand have fun. so that’s pretty much you know one. instance of uh forex trading or. quite you understand the trade of currency. and what the purpose is for. on the other hand for companies let’s. say a company like toyota. who produces automobile for example they want to.
Buy some. rubber for their tires for instance okay. and you know. uh you realize they in japan proper maybe. they aren’t a producer of rubber and. they should go to. india to buy some rubber for their cars. so what do toyoto toyota cooperation do. what they do is they may. sell their yen in trade for indian. rupee to permit them to use that indian rupee. go to india and purchase some rubber for. their tires make sense so that’s another. instance of. forex trading one is from a retail. perspective and one is from a. company. perspective and this could be a six level six. trillion greenback market the forex market. is a six level six. trillion greenback market take a look at the. number of zeros my man it has. extra the variety of zeros is much more. than the the hair i have on my head so. that’s an enormous. huge market so who are the players. of forex trading so let me just you know.
Give you a very simple. chart right to sort of you understand break. down who trades the foreign exchange market. so you’ll have the ability to see over right here primarily the. foreign exchange markets are traded by you realize the. main banks this could be due to you. know hedging their portfolios. feeling they’re you understand uh assembly. their requirements of their shoppers. like business firms which i’ll. clarify shortly uh this might. a foreign exchange market can be you know traded. by hedge funds for you realize speculative. functions. possibly to hit their portfolios and accomplished. by industrial companies for instance like. toyota as i’ve talked about earlier. so for instance how does industrial. companies and bank work hand in hand so. quite simple. so let’s say you realize an organization like. once more toyota they know they want. for instance they want to purchase rubber from. india they can’t use. yen in india as a result of you understand the.
Indians would possibly assume you understand what is. this piece of paper proper am i supposed. to make a paper plane out of this. no so what toyota will do is they may. go to a financial institution and say hey i must. change you realize. x variety of yens right in change for. indian rupee so. industrial financial institution will go to i mean a. industrial firm will go to the financial institution. proper and you will. settle this uh this transaction so this. is how they kind of. work interrelated together and of course. banks can you understand trade them. inside uh amongst one another to hate. their portfolio and stuff like that. and at last at the bottom of the meals. chain you have the retail merchants like. us. who you realize go into this for perhaps uh. speculative functions could be you understand. going for vacation you want to change a. bit of. currencies so yeah this is uh largely. you understand what.
What are the players within the foreign exchange. markets do. so advantageous of forex trading so. what are the benefits primary right. it is low barrier. to entry so you can begin with you understand. as little as 100 so unlike you know. futures or stocks where you probably. must begin with a larger quantity. for foreign foreign money trading right to open an. account. a hundred right is i am going to say enough right to. open an account. it has excessive liquidity so you can enter. and exit your trades simply so if you. commerce foreign exchange and also you wish to buy let’s. say. a foreign money pair like euro dollar you’ll be able to. just about get at the price proper that. you see on your display screen not like you know. certain. markets like for example penny stock. typically uh market is shifting rapidly or. market is illiquid whenever you. thought you purchase it hundred dollars and. find yourself you purchase the inventory one hundred and five dollars due.
To you know slippages and stuff like. that so in foreign forex trading. you still have slippages however i might say. it is lesser compared to the stock. markets. then uh the market is open 245 for foreign exchange. proper you probably can commerce pretty much any time. you want unlike the inventory markets which. is you understand simply open for a fixed number. of hours in a day so what are the foreign exchange. market hours so as mentioned right foreign exchange. is open 24 hours. 5 days per week so it is open from. sunday to friday right depending on. the place you might be on the earth when you’re. like me. in singapore it is open from monday to. friday if i imply monday to saturday if. you are in us then you definitely’ll be from sunday. to friday due to the uh. hours in the foreign exchange market because of. your time zone so what are the forex. market hours okay so let me simply break. this down so you possibly can understand this.
Chart. so first one over here is the daylight. saving time so this refers back to the summer. months. in u.s okay in the overseas in different. nations. in singapore we do not have daylight. saving time so it is a bit uh. new to you if you’re in asia and the. time that we use to depict the hours we. use gmt over here. okay so for instance for instance uh london. market right for summer season interval the. london. session right begins at 7 00 am gmt and. ends. at 4 00 p.m gmt so 1600 is in essence. at 4 pm when you convert it okay for model spanking new. york. it starts at 12 p.m gmt. the new york session and it ends at 9 pm. gmt new york session so you probably can see how. this uh. this uh table proper breaks down the. different foreign exchange periods and their. open and shutting hours so this is for. daylight financial savings time during the summer time. period. and for standard time right during the.
Winter period proper the hours proper are. slightly totally different they’re. completely different by an hour so should you look now. at london once more now. we open at eight am whereas previously it. opened. at 7 00 am okay so previously 7 am here. so during winter months right it starts. at 8am. and ends at 5pm for new york it starts. at 1 pm. and close it or ends at 10pm so you can. see this desk right here. i’d say it is useful right to to know. what time a certain foreign exchange. market session opens or closed in your. explicit time zone. and some of you could be questioning hey. ray how do i do know whether or not is it a winter. or summer time interval simple simply google. when you google proper then you know. whether hey is it now normal time or. is it daylight financial savings time so i’m not. going to put that down right here because. it really is dependent upon the time of the. year so let’s do a quick recap.
Number one foreign currency trading is simply an. trade of 1 forex for one more. it’s traded by banks firms. brokers and retail traders such as you and. me. foreign forex trading has a low barrier to entry. high liquidity and the market is open 24. 5. and at last the forex market hours. are broken down into 4 different. sessions the sydney session the tokyo. london and big apple and one thing to add. right a bonus thing is that uh. the most risky session proper within the. foreign exchange market is in the course of the london. and new york overlap so it’s actually. throughout this few hours from here. to right here as a outcome of each the london and the. big apple session. are open and these are kind of just like the. largest financial markets on the earth. so lots of transactions are happening. during this. foreign exchange market hours and if you have a look at. the foreign exchange charts like the 15 minutes or.
One hour time-frame. you probably can see that in this era. proper the candles are transferring lots. a lot more during this a quantity of hours of. the day so this is solely one extra. factor to. share with you okay so we have carried out the. recap so. that’s just about it now shifting on. proper you’ll. be taught what’s a forex pair. what is the base and code forex what. are the several varieties of forex. pairs so. let’s get began primary what’s a. forex. pair so one factor to note is that you. trade forex in pairs not as a. standalone so just like you realize when. you go to a grocery store to buy an orange. you don’t say hey i want to buy some. orange they will tell you yeah you want. to buy some orange right however. you have to you realize exchange proper your. cash for an orange so same factor for. forex pairs proper if you wish to.
Trade currencies you want to trade. one currency. for another currency you can’t simply say. i wish to purchase some euros. then the opposite particular person on the or the. other celebration shall be pondering. certain you are gonna purchase some euros so what. are you giving me in trade. so for this reason forex pairs or somewhat. why currencies right trade in pairs. not as a standalone so in essence right. currency pairs help you. measure a forex’s value in opposition to. another currency. so for instance let me explain proper euro. in opposition to the greenback so whenever you. for instance purchase the euro dollar in essence. what you are doing is you are shopping for. the euro currency all right and you’re. selling. the us dollar so in essence proper when. you would possibly be buying the euro. you’re giving the opposite get together us dollars. in exchange for. the euro foreign money so identical to you are. buying an apple from the supermarket.
You’re giving your cash in trade for. that apple so. it works in pair likewise for dollar. in opposition to the yen. you are shopping for the us dollar and in. return right you give the other get together. japanese yen make sense moving on. what’s a base forex or what is a. base forex so let me clarify the bottom. currency is in essence right the first. foreign money that appears in a forex pair. so it will illustrate so for example. euro against the greenback. the primary foreign money of the pair is known as. a base. forex and i’ll clarify why shortly. so what’s a code forex so the code. foreign money is. the second foreign money that seems within the. currency pair. and for the euro greenback example the us. greenback is the. quote currency and now you could be. wondering hey wayne and what is the. purpose objective. of all this man so let me clarify the.
Purpose of all this is to. tell you how a lot it price in a single. in code forex to purchase one base. currency i do know that sounds like a. technical full so i’ll break it down. very simply which i’ve. actually accomplished earlier so for instance. euro dollar. at 1.3500 what it means. is you realize that euro is the base. currency. proper let’s call it b base and the. greenback as mentioned. is the quote currency that is pretty cute. so this. tells you how much it prices in code. foreign money to purchase one based currency so in. essence what this tells you is that. for one euro greenback it’s going to price you. one dollar and 35 cents. usd so for example you go to a cash. changer hey i’m gonna purchase one euro man. and the guy stated positive my man give me one. greenback and 35 cents. usd and that i’ll give you one euro that is. the means it works proper and that is how you. sort of. interpret this right okay it tells you.
How much. it prices in code foreign money to purchase one. base foreign money. and i feel that should be a pretty. selfexplanatory. when you don’t perceive this simply rewind. this video and i’m pretty certain you will. get it. so if you’re buying and selling currencies right. there are different types of forex. pairs and i’ll explain. what are the three different sorts of. currency pairs that you’ll encounter. primary is what we name the major. currency pairs number two we’ve cross. currency pairs and number three. exotic foreign money pairs so let me clarify. main foreign money pairs these are in. essence proper. or rather they refer to the most traded. currency pairs on the planet. so these are the seven most traded. forex pairs on the earth they’re all. uh greenback denominated like you understand the. euro against the dollar. the pound against the dollar dollar.
Against the canadian and so forth so in case you are. new to forex trading right now these are. i’d say the seven. currency pairs that you might need to. consider starting. i imply to commerce first as a result of they are. often uh i’ll say their transaction. prices are decrease because of lower spreads. and you know you get much less slippages when. trading this uh most. seven hottest foreign money pairs so. these are the main foreign money pairs. the subsequent one cross forex pairs this. refers to currency pairs. which are nonusd which doesn’t have the. usd you realize denomination in it. so for example for example you have the. euro crosses euro crosses simply means. that their foreign money pairs that has the. euro currency in it just like the euro. in opposition to the british pound euro towards. the aussie dollar euro in opposition to the new. zealand dollar. then you have the pound crosses like.
Pound yen pound in opposition to the aussie. greenback pound against the brand new zealand. greenback and so on fairly pretty easy stuff. and at last the last type of forex. parents that we have is the exotic. forex pairs. this is when one may when one major. foreign money pair. is paired with a creating nation’s. forex so for instance. us dollar against the mexican peso us. greenback is a significant. foreign money pair and mexican. that’s all right this is a creating. country’s foreign money so again this meets. the requirement right one. main foreign money is paired with a. growing nation’s currency. subsequent one the euro in opposition to the turkish. lira euro is a major forex turkish. lira is a. growing nation’s foreign money and. lastly the indian rupee against the. british pound. once more so this is what we mean by unique. foreign money pairs. so one thing to note right is that when.
You commerce unique forex pairs the. unfold. tends to be wider so if you do not. perceive what the spread means right. don’t fret. as you progress in your trading journey. you perceive however in essence right the. transaction value to commerce. unique foreign money pairs they’re more. costly compared to the. major foreign money pairs so a fast recap. primary currencies they’re traded in. pairs not as a standalone. the bottom forex is the first foreign money. within the pair the code forex is the. second foreign money in a pair. and then there are three forms of. currency pairs main cross and exotics. so with that stated let’s move on. so moving on in this section you’ll. study primary what is a bit. number two what is a paypal and quantity. three how to read a foreign money pair. code so let’s get began so first and. foremost right what is.
A pip a pip stands for share in. point in essence proper what it is making an attempt. to do is to measure. it’s a measure right of a change in. worth within the foreign money pair. don’t worry we’ll get to that later so a. pip right keep in mind it is the fourth. decimal place within the forex pair code. so let me explain proper let me give an. instance. so let’s have a glance at let’s say proper euro. towards the us dollar moves from 1.3500. to 1.3505. now let me ask you the place is the place. is the number to look at when you want. to find out what is the the p worth. change so bear in mind. pip is the fourth decimal place so this. is mainly the fourth quantity. after this dot so one two three four. you are looking at this quantity here. so that you’re comparing the distinction. between this number right here and this. quantity here okay so quiz time. how many pips difference is this so.
Let’s discover out. an answer is quite straightforward this. is actually an increase proper of five. pips from 1.3500 to 1.3505. it’s a distinction of 5 pips so you. can see proper the last. digit the fourth decimal placing digit. proper it has moved from zero. to five that’s an increase of 5 pips. let’s do one other instance let’s say this. time around the euro. towards the dollar strikes from 1.3400. to 1.3350 now how many pips. is this right let’s uh give you five. seconds to determine this out. one two three 4 five okay so the. reply is. a decrease of fifty pips so in essence. proper this uh. euro against the greenback it has dropped. 50 pips from 1.3400 to 1.3350. so fast tip that i’ve for you that if. you’ve difficulty you you understand using. your fingers counting and stuff like. that you just take a calculator. take this final four digit minus this.
Last four digit and you’ll get 50.. okay that is another way to go about it. so transferring on one thing to share is that. the yen pairs they are particular they’re. not like you realize the other foreign money. pairs the place the. pip right is at the fourth decimal place. for yen pairs like you realize the greenback. in opposition to the japanese yr and the pound. against the japanese yen. the pip worth is the second decimal. place so bear this in mind just for yen. pairs the. pit value or under the the height check. the. the peak when you take a glance at the forex. code right is on the second decimal. place. so let me provide you with an instance for instance. the greenback towards the japanese yen. moves from a hundred.10 to 100.15. how many pips is that what number of. uh how much pips did this pair transfer. once more very simple you presumably can simply. keep in mind second decimal place is the place.
You look at. for the pit for en pair so you simply take. 15 minus 10 and the answer is an. increase of. 5 pips next each other example. let’s say the dollar against the. japanese yen moves from 100.25 to 100.1. how many pips difference is that this once more. very simple take the uh. 1 zero which is 10 minus 25 and you get. a lower of 15 pips and that is in. essence right how you. you are measure right what quantity of pips a. forex pair. has moved and to take issues a step. further as a result of the forex got you realize. like to make your life a bit extra. tough. there’s one other factor known as a pipette. and in essence proper a pipe is solely. known as. fractional pips they are a hundred and ten the worth. of a pit. complicated don’t fret an instance usually. solves your pain. so and one factor to bear in mind is that. a pipette is the fifth. decimal place for most currency pairs.
For the yen pairs. it’s the third decimal place so an. instance. would ease your pain let’s say euro. against the greenback strikes from one three. five zero zero five. which this one right here is the pipette to. 1.3505 seven this seven right here is the. pipette value. so how many pips motion is that this. so once more you simply do a basic math you. will notice that this is a rise. of 5.2 pips is smart i do know. it is smart proper so let’s do a fast. recap. primary a pip is a measure of a. change in worth right in the currency. pair. it’s the fourth decimal place for most. foreign money pairs besides the yen which is. the third decimal place. if you want to be slightly bit extra you. know specific there’s one thing referred to as. the pipette which is. in essence a hundred and ten of a pip. so on this section what’s going to you be taught. you’ll be taught. number one what’s leverage number two.
How leverage. impacts your buying and selling and eventually what. are the various kinds of foreign exchange. lot sizes so let’s get began what’s. leverage. how leverage impacts your buying and selling and. what are the several varieties of. forex lot sizes so let’s begin. so what is leverage so intuitively i. know you understand. what leverage means however let’s explain. this in relation to the forex markets. so leverage is in essence right the. capability to trade. a bigger amount of money relative to. your account dimension. and leverage is a double h so and that i’ll. clarify. extra so let me give you an instance let’s. say you’ve a thousand dollars in your. buying and selling account and you buy. 10 000 worth of euro usd. this means you borrow the additional 9. thousand dollars. to commerce and if you need to measure the. leverage this can be a leverage of 1 to. ten why is this a one to 10 you take.
The ten thousand dollars. that’s price of the euro usd divided by. the preliminary capital that you’ve got got in. your account. and you get 10 so it is a leverage of. 1 to 10.. now the question is what if euro usd. goes up how does leverage. impact your buying and selling so recall you’ve a. thousand dollars. account and you purchase 10 dollars value of. euro usd. your ten thousand dollars is now worth. eleven thousand dollars. why eleven thousand dollars quite simple. you simply take ten thousand dollars. and you multiply by one point one. since you truly. earn 10 as a outcome of this currency pair went. up 10. so 10 000 minus or rather multiplied by. 1.1. is equal to eleven 000 or should you take a glance at it. one other means 10. of 10 000 is one thousand one thousand. plus ten thousand equals to eleven. thousand that is another way to to do it. subsequent you return the 9 thousand.
Dollars that you owe what you are left. with is the 2 thousand dollars. and remember the 2 thousand dollars. proper what you had initially at the. begin was a thousand dollars so in different. words your revenue is. one thousand dollars all proper two. thousand dollars minus your unique. capital that you just started with you made a. revenue of. a thousand dollars on this specific. commerce and i know man. this seems simple man i am gonna be the. subsequent market wizard millionaire dealer. well not as far as my young half padawan. as a outcome of what if. euro usd goes down 10 and how would this. change. so now recall you have a thousand. dollars account and you purchase ten thousand. dollars price of euro usd your ten. thousand dollars is now worth nine. thousand. why is that as a end result of ten thousand okay if. you lose ten p.c of your capital. now it’s price 9 thousand dollars you.
Return the nine thousand dollars that. you owe. you are left with zero dollars in fact i. don’t know why there’s 4 zeros right here. but. zero is zero is zero okay and your. unique capital is a thousand dollars. so this implies your loss. is a thousand dollars since you. began off with a thousand dollars and. you are left with. zero zero zero zero so in different words. you misplaced a thousand dollars. so the vital thing thing to point out is that. leverage can amplify your gains. and losses so if you consider this if. with out leverage. this proper would have been a ten loss to. you but since you used leverage. you misplaced one hundred as an alternative of 10 so likewise. whenever you had a gain earlier. when you had a profit when the market. went up ten percent when you did not use. leverage that may be. a revenue of ten % for you however. because you use a one to ten leverage.
It is amplified ten instances you made a. profit of 100. % so on this case it’s a thousand. dollars however in percentage term is a hundred. okay so this is uh pretty much the key. thing that i need to point throughout is. that leverage. it could amplify your positive aspects and losses and. for this case in this instance you misplaced. 100 of your capital as a result of uh you employ a. 1 to 10 leverage. if you didn’t use leverage in any respect there. could be a ten loss of your capital. transferring on proper i wish to talk about. forex lot sizes so. what are the several types of foreign exchange. slot measurement on the market primary. we’ve a regular lot which is. equivalent to a hundred thousand. items so whenever you key in a hundred. thousand models to buy in your foreign exchange. broker you might be. basically buying one commonplace lot then. under that we have a mini lot which is. 10 000 items followed by micro lot which.
Is a thousand. models and smaller than micro lot we even. have. nano lot which is a hundred items. so one thing to point out is that you just. can trade fractional lot sizes it. does not imply that you just only can trade one. commonplace lot one mini lot. or 5 commonplace heaps you can you realize. break it up and trade one thing like 1.3. commonplace lot you’ll be able to trade 2.5 mini tons. 3.7 mini tons 2.6 standard lot. 1.5 micro lots it is all attainable proper. when trading the foreign exchange market so in a. method you probably can you realize better manage your. threat as i will clarify. how that will work within the later part. so let’s do a quick recap primary. leverage is the power proper to trade a. larger amount of cash. relative to your account dimension and sure. you might have seen right leverage is a double. double h. so it could possibly amplify your positive aspects or losses. and eventually we talk about you know the.
Different forms of load sizes in the. foreign exchange market commonplace lot. micro lot mini lot and nano heaps. okay so in this section you will study. what is a pip value. and the method to calculate a pip value so what. is a pip value so a pip worth in essence. is making an attempt to reply the query how. a lot is. one pip price and to find that out right. you have to answer two questions. number one the lot size that you’re. trading and number two the code forex. of the foreign money pair so let me clarify. primary the lot measurement. in order you understand proper within the forex market. there are totally different lot sizes you understand. normal lot mini lot and so forth so one. commonplace lot right is actually. equivalent to a hundred thousand items. and it is worth. ten dollars per pip. one mini lot is ten thousand items and. it’s value a greenback a pip. and one micro lot is a one thousand.
Units which is 10 cent per pip or zero.1. dollars. a pip and one thing to level out is. 10 mini heaps is definitely equal to. one. normal lot as a result of should you look at this. 10 000 models you multiply by 10 is one hundred. 000 models so in different words 10 mini lot. is one standard lot so needless to say. 10 micro tons. is equals to 1 mini lot proper a. thousand items you multiply by 10. gives you 10 000 items so 10 micro tons. 10 micro lots is one mini lot as nicely. okay so so bear this in mind. and this holds true only if your code. forex is. in us dollar like euro dollar aussie. dollar new zealand greenback etc. so clearly proper what if your code. currency just isn’t in u.s dollar so that is. why we need to take a look at the second thing. which is your. code forex so let’s say for instance. if the code forex is in euro. then one normal lot clearly is 10 euro.
A bit one mini lot is one euro a pip. and one micro lot is zero.1 euro per bit. is smart all right up to now so good so. let’s have a look at an instance. you commerce euro usd and buy 2.3 commonplace. lots. how a lot is the value per pip so when you. simply you understand have a look at this. you understand that 2.three commonplace lot. is equals to 2 commonplace lot and three. mini log that is one way to have a look at it or. you probably can take a look at it as. 23 mini lot that’s the similar thing so. relying the way you need to have a glance at this. for instance let’s deal with it as 23 mini lot. we all know one mini lot is price one greenback. per bit okay so clearly 23 mini lot. means it’s 23 per pip. and there you may have it transferring on subsequent. instance. for instance you commerce the pound against. the aussie greenback and by 5.5. mini heaps how much is the worth per pip. so once more simply bear in mind the two issues i. shared with you number one.
What is the lot dimension trader 5.5 mini. lots okay nice subsequent thing what is the. code forex. aussie dollar nice you realize one mini. lot is worth one greenback. 5.5 mini tons means it is 5.5 dollars. so what is the forex the code. forex that is aussie dollar so it is. 5.5. aussie dollar per pay. okay great so that should be the reply. so if you look at the answer. it’s 5.5 how do i know this as a outcome of i. did these slides and. and uh clearly i don’t know what’s the. answer so yeah there you’ve it that’s. the reply. so all this really can be helpful to. you if proper let’s say your let’s say. proper now. your account forex is in australian. greenback and yeah 5.5. aussie greenback per that might make sense. but in fact as you know. there is not any guarantee that the code. forex will be the same forex as. your account funding perhaps you could.
Find it in us dollar. you would find it in singapore dollars. it could be completely different so how do you. really. translate this value into your personal. account currency. if your individual account forex is. completely different from the code forex. so this is the place we can take things a. step further and to search out out the pip. value in your accounts. forex if the foreign money is totally different. from the code forex. so once more you need a few issues number. one the lot measurement quantity two is the code. foreign money and number three is the. change fee between the code forex. and your. accounts forex so let me give you an. instance as a end result of instance is your pay. number one for instance you purchase one. standard lot of euro usd. your account currency is in singapore. dollars. the trade fee between the usd and. sgd is 1.3. how much is the value per pip so let’s.
Again right do this a easy. exercise you know one normal lot is. one hundred 000 items reynolds say one. standalone is value 10. per bit okay 10 per bit. you then understand that your. account foreign money is different from the. code foreign money so what now so what you. need to do is to. to transform proper usd into sgd as you. know right now. one usd is worth 1.three sgd so this means. one us dollar is worth one dollar 30. cents singapore greenback so if you need to. convert. this 10 us dollars into singapore. dollars i simply take this multiplied by. 1.three. and i have a figure of thirteen singapore. dollars. sgd okay and that is the answer right the. worth revenue will be thirteen. singapore dollars per bit and there you. have it proper in case you need to know. the. sort of like the math breakdown is 10. usd per bit multiplied by 1.three as a outcome of. it is the change price between us and.
Singapore dollars. and you get 13 singapore dollars per pip. one other instance shall we to actually. hammer residence this idea. you purchase two commonplace plenty of pound. in opposition to the new zealand greenback. your account foreign money is in canadian. dollars the trade rate for brand new. zealand canadian is 1.5. how a lot is the worth per pick so i am. going to provide you. 5 seconds to do that i’m just kidding. 5 seconds too quick i am gonna do this. together with you. and let’s find this out but you know. sort of like you understand pause this video. and do it on your own when you want to. if not i’m gonna walk you through how to. do this step-by-step so once more first. thing first. is the variety of tons we are trading two. normal lots you know that is equals to. 20 new zealand dollar per pip. okay if you have no idea why it’s 20 go. and look back at the earlier slide so it.
Makes sense. your account forex is in canadian. greenback trade fee between new zealand. and canadian. canadian greenback is 1.5 so what i have to. do is for to search out out. how much is 20 new zealand dollar value. in canadian dollars how a lot is that. very simple just multiplied by the. exchange rate this prevailing trade. fee. after all this is not a real number i. simply got here up with this when you just look. at the normal forex web site you will. have. you can find out what’s the prevailing. trade rate so 20 i multiply by 1.5 it. will. give me proper how a lot 20 or somewhat 20. new zealand dollars. is worth in canadian dollars a solution. is 30. 30 canadian dollars. per pip okay so let’s have a. look tada okay so so yeah so with that. stated right. let’s do a quick recap primary your. pip worth is dependent upon a number of issues.
The lot measurement the code foreign money and. lastly right the change price between. the code currency and your account. forex if they’re completely different in the event that they. are the same then you just need the. first two things. and yow will discover out what is the pip. worth. so in this section you will be taught quantity. one what is danger administration and why. it matters quantity two what is place. sizing and at last tips on how to calculate your. place size such that you simply never blow. up. blow up another buying and selling account so this. matter that i’m about to share with you. is very important proper so pay shut. attention. so firstly what is risk. administration so. should you ask me risk management is the. capacity as a trader to come across a. sequence of losses proper and not. blow up your buying and selling account so for. example even should you sustain a collection of. 10 losses in a row.
Your buying and selling account should be fairly. much still intact yes you have a bit. of a losses along the means in which however that. account proper ought to nonetheless have. still have many of the money intact so. that’s what risk management is all about. so it is important as a outcome of you’ll be able to have a. winning trading strategy however with out. correct danger management right you’ll. nonetheless find yourself. a shedding dealer i can guarantee it so. let me share with you an instance so that you. know what i mean. so let’s say for example there are two. merchants john and sally they usually both. have. a 1 000 buying and selling account to start with. their trading technique has a 50 successful. fee so this implies they win half the. time and a one to 2. danger reward ratio so let me explain what. danger reward ratio is. so let’s say for instance you risk. 100 dollars on a commerce okay that’s. the amount of money that you’re willing.
To lose on a specific commerce. and the outcome for you is favorable. as a substitute of losing hundred dollars proper. the market went in your favor and you. made a revenue of 200. so in other words this 200 right is two. instances the quantity that you simply had intended. to threat initially so that is what we. call. a one to two risk reward ratio your. reward proper it is two occasions. your preliminary risk so another instance. for example you’ve a. 500 risk on the commerce and instead of you. know. dropping the five hundred market went in your favor. and you. made 5 thousand dollars in state what. is the risk to reward ratio on this. commerce. this is a danger to reward ratio of a one. to ten you were risking at five hundred. dollars and also you made 5 thousand. dollars. at the finish of it so this may be a risk. reward ratio of one to 10. next john dangers 250 per commerce and sally.
Risk twenty dollars per trade. for instance the finish result of the trades for. each of them is in this. sequence right l stands for shedding right. lose lose lose. lose then win win win win so now what. is the outcome for each merchants let’s. look at john you can see for john. he loses 250 because the first commerce is. a loser. loses one other 250 one other 250 another. 250 and then he blew up. so before he might even odor the winner. he misplaced his entire trading account. however let’s take a look at. sally. as you’ll be able to see sally goes through the. similar shedding streak right she loses 20. dollars. lose 20 lose 20 lose 20 and then she. made forty. 40 40 and 40 as a result of this was a string. of winners on the finish. however why forty dollars once more because we. have a one to 2 risk reward ratio. right. for his or her trading strategy so if sally. threat twenty dollars on each commerce and if.
The market. or rather if she achieves a one to two. threat reward ratio this implies a revenue. is two occasions the initial danger so two. times of 20 is forty dollars so this is. how. we get forty dollars and at the end of. it sally made. a complete return of eighty dollars so. that’s about eight percent acquire. on her account whereas you take a glance at john. he really misplaced one hundred of his account so. hopefully right. utilizing this easy example you can see. the significance of risk management. proper on this case both merchants they are. trading with a profitable technique. however because of risk management considered one of. them loses his whole account and the. other one. is actually you know making some money. proper from trading the markets so this. is essential. so now the question you might be. considering okay right now i get it right. risk administration is important but how do.
I. manage my danger you know how do i make. sure that each time i put on a trade. proper i don’t lose every little thing and more. so that is where the next subject comes. into play. place sizing so what is place. sizing so position sizing is. merely right trading the right number of. units proper such that. even if a commerce ends up being a loser. it is only a fraction of your buying and selling. account. okay let me repeat once again proper. place sizing is. understanding right how many models you should. commerce. such that if that commerce goes in opposition to you. you only lose a fraction of your trading. account and as a common guideline i. normally advocate proper. not to lose multiple % of. your trading account on every commerce so. for example let’s say if your account is. like a. ten thousand dollars buying and selling account one. % of ten thousand is a hundred.
Dollars so this implies each trade you. placed on. you should not lose greater than a hundred on. each trade. and now brings us to the query right. how will we you understand. calculate that in such a manner the place. you realize you know you will lose extra. than a hundred. on every commerce so to do that you need to. know a couple of things okay so. this is kind of like the key formula. right so position dimension is equals to the. quantity. to risk right the amount of uh greenback. that you simply’re keen to threat. divided by a stop loss multiplied by. worth per pip so amount to threat is. normally i. recommend one p.c danger on every commerce. some some merchants will go together with two or. three p.c. uh that is just about you understand up to an. particular person dealer and after which you. divide it by your stoploss multiplied. by your worth per bit. so i’m going to share with you a really.
Simple uh means to do this okay you don’t. need to so i’ll simply. go together with you a guide method after which after. which i show you how to do with a faster. method so for example you are risking a hundred. you are keen to lift 100 and let’s. say you know your stop loss is for example. a hundred pips okay so you set one hundred. and your value per pip proper let’s say. you’re trading euro usd is. uh 10 per bit for the standard lot so that you. put your 10. okay you plug within the numbers you get one hundred. divide by a thousand. and when you do it you discover yourself with zero.1. commonplace lot which is equivalent to one. mini lot. so the difficulty with this is that your. value per bit. is constantly changing it really depends. on the code forex it is dependent upon the. account funding that. you’ve funded with with your account. so you can see that you know issues can. get actually cumbersome right so.
One factor i suggest is to make use of a position. sizing calculator to make your life. very easy and i’m going to show you. how to do that step-by-step. so you can google you realize position. sizing calculator and that is one that. i’ve. discovered you can you understand use it it’s free. so let’s say you are trading once more euro. usd. your account foreign money let’s say it is in. us greenback for example your account measurement is. like what i said earlier ten thousand. dollars. and your danger on each trade let’s say. it is one percent you can put your one. p.c. on this case you ever swap to you know. dollar phrases for instance you want to threat. 100 dollars. which can be one percent that’s fine. as properly however in this case let’s go with. the proportion. let’s say one percent let’s say your. stop loss in pips right is a hundred pips put. in hundred. contract size let’s leave it at hundred.
Thousand which is equal to one commonplace. lot. you click calculate and there you might have. it proper tells you the lots to trade is. zero.1 which is equals to. zero.1 commonplace lot or one mini lot can you. see how fast this is. let’s do another example for example this. time round you’re not trading euro usd. you are trading pound against the aussie. let’s say your account foreign money is in. new zealand dollars okay and for example. this time you’re a baller your account. measurement is hundred thousand dollars. and you’re a baller and you still danger. one % on this commerce well accomplished and. for example your stoploss this time. around is 350 pips. contract measurement again hundred thousand you. click on calculate it’ll inform you. how many models to trade right such that. if even if the trade hits your. cease loss you will solely lose one p.c. of your account so that you click on calculate.
And on this case it tells you that you. can commerce 0.263. standard lot which is about 26 uh sorry. uh. 2.sixty three mini tons make sense so once more this. could be very helpful so. once more let’s you realize interpret this. collectively so this means right. for this particular pound or z commerce and. let’s say your account is in new zealand. dollars. and you’re risking one % of this. hundred thousand dollars this implies. right if. the trade goes in opposition to you proper with a. cease loss of 350 pips proper. you’ll lose right a thousand dollars. thousand new zealand dollars right in. your buying and selling account which is the one. percent that we now have outlined. over right here right and this is the position. dimension that you need to be buying and selling with. 2.6 mini lots okay it is sensible. so this is how you use a place sizing. calculator so okay let’s do yet one more. instance so you actually perceive this.
Big time. so for example this timer we do one thing. easy like aussie dollar you wish to. commerce the aussie in opposition to the us dollar. for example your account forex is in. aussie how about that. similar uh simply put aussie dollar for instance. your account dimension this time round is. five thousand dollars. and for instance you’re risking somewhat. bit more two % threat on each trade. which continues to be about. uh hundred dollars so your stop loss. this time around for example it is solely 50. pips. okay contract measurement again hundred. thousand models so now the question is. what number of. models right must you be buying and selling such. that if this trade goes in opposition to you and. hit your 50 pip loss. the loss of on this trade is only two. p.c of your account two p.c of. this 5. thousand dollars 5 thousand aussie. dollars. click on calculate and it tells you that.
You ought to only be trading 1.fifty three. mini heaps make sense okay so don’t be concerned. i’ll share with you uh. uh we’ll discuss more about you understand. place sizing threat administration with. chart examples in a while but for now i. just want you to. to know the means to use this very useful. calculator simply click google there are. many free available ones and just pick. whichever that you understand you are. comfy with so let’s do a quick. recap number one place sizing is the. software to manage your risk. and use a place a position sizing. calculator proper to make your life. easier i don’t count on you to. manually you realize calculate it most. brokers normally have an inbuilt. calculator perform if it doesn’t have. right then simply you realize you go to any. of the free website. by way of google and you ought to use the. calculator to help you calculate the.
Number of items to trade such that you just. know. even when the trade is a shedding trade. proper you only lose a fraction of your. account. now shifting on let’s discuss about the. different types. of forex orders proper so on this part. it is all about you understand studying the. several varieties of foreign exchange orders and one. factor to point out is that. uh there are many extra different types. of orders that you ought to use particularly. when you’re using skilled trading. platforms but the ones that i’m about to. share with you right now could be i might say. the ones that you’re probably to make use of. proper most of the time. okay so let’s get started first one. market order second one is a restrict order. third one is a inventory order and eventually a. stop loss. order so let me explain every certainly one of them. step by step. first one is a market order so let’s say.
It’s a buy market order order. because it could also be a promote market. or the idea is similar but on this. case. let’s go with let’s let’s say a buy. market order this is in essence right. you are attempting to you understand. buy at the present market worth right. now it would not matter what so this is such as you. know sending an. order to your brokerage platform and say. hey i want to enter euro usd. right now no matter what now so your. dealer will fill you. at a trade at the current prevailing. worth. so the pros to it’s that you know. you are assured to enter a trade there. is no. what if but or whatsoever you’re. assured to enter a trade but the. draw back to this. is you may get sleep web page proper throughout. fast. moving markets and also you could be thinking. right now what’s slippage man. so here’s the thing proper in the foreign exchange.
Market yes it is liquid. most of the time however when it when. there’s a big piece of news arising. like for instance you understand. nfp nonfarm payrolls or fomc meetings. proper for example euro usd is currently. buying and selling at one three. zero zero zero proper however throughout quick. transferring markets. you if you hit market order right you. could get slippage proper where you. thought hey. i’m gonna purchase a 1.three however you discover yourself you. know shopping for truly at one three. zero let’s say two zero you had find yourself. paying 20 pips greater than expected so. that is sort of like the draw back to. utilizing market order due to this uh. slippages so instead of you understand shopping for. at one level three zero zero zero you. end up shopping for at one point three zero. two zero. a slippage of 20 pips so in other words. you’re paying 20 pips greater than. you expected okay so this is a market.
Order. the other sort of market order proper is. limit order. so again let’s speak about buy limit. order sell limit order is simply the. reverse. so for a buy restrict order proper it is an. order an order to purchase. below the current market value so let me. offer you an instance. so let’s say market is in a variety. between these highs and this lows it. goes up comes down goes up and now it is. in the middle and also you. think to yourself ah man worth proper now. is within the middle right i wish to buy. i wish to be a cheapskate i would like to buy. the most effective worth and it seems like the. finest value. is near this lows over right here and let’s. say that is zero usd this lows is round. one point. 5 okay so what you are capable of do is you’ll be able to. place a purchase limit order. at one level five zero zero zero so such. that if the market. comes down into this level you’ll.
Get stuffed on that purchase commerce however of. course if the market doesn’t come down. you will not get fuel so that’s kind of. like the professionals and cons. to using a buy restrict order so let me. provide you with a chart instance you presumably can so you. can see what i imply. so that is uh for example pound canadian. let’s say you are taking a glance at this chart. possibly on the eight hour time frame. okay and also you zoom out somewhat bit and. you realize oh this. this market right this looks as if a great. place to buy that is an space of help. don’t worry when you’re not familiar with. this technical time period i’ll clarify more in. the later part but for example hey. you wish to buy round 172 proper this. looks like a good place to buy as a result of. the market has bounced once twice. you realize and 3 times over here this. seems like a great place to purchase but the. current market worth is at this level.
Over right here which is nearly. close to 1735 so what are you able to do you’ll be able to. place a purchase restrict order. over here a buy limit at 1.72. so this implies only if the market comes. down low. enough into this 1.72 degree. solely then will you get stuffed if not you. won’t be on this commerce so that is what a. buy. restrict order means so in fact all proper. the good factor about it’s that you get. to purchase at the price you need. the draw back is you may not get crammed. on the commerce so possibly you are waiting for. that degree but the market would not come. to the extent and instead. you realize if it continues you realize going. up larger then clearly right you. wouldn’t you understand be. in the commerce so vice versa right for a. sell limit order the. idea is simply the alternative so transferring. on the third sort of. order is a stop order so again let’s. speak about purchase stock order so this.
In essence right is to so as to buy. provided that the market moves above. a particular price stage so that you may be. thinking what does that mean. so again i may give you an example let’s. say. market is uh let’s say it is trending. higher it goes up pulls again goes up. pulls again and it’s beginning to go up. and you inform yourself. i’m looking at this chart and it might. make sense proper that. i need to purchase only if the price can. breaks above this highs as a outcome of should you. can breaks above this highs. then there is a good chance that this. market might proceed higher so that you need. to inform your self i’ll solely. purchase if the worth can breaks above this. high if it does not break above this high. i cannot you know enter a trade so. what you are in a position to do is to make use of a. purchase cease order so an example is that this one. here. should you look at this chart dollar against.
The chinese language yuan this is the eight hour. timeframe so once more you’ll find a way to look at this. and say hmm. at this level right right now i’ve no. idea when the worth might go up and come. back down. you know and again i don’t need to enter. right now because you know this could. happen. and then you definitely’re pondering to yourself i. feel more assured if the worth. can break above this highs solely then i. could be keen to buy. so if that is your thought process what. you are in a place to do is you can use a purchase stop. order you’ll find a way to place a buy stop order at. this price. around six dollars and 59 cents around. this value level. which is someplace about here so you’ll find a way to. place a purchase inventory order right here. let’s call it bs buy cease not not not bs. that you’re conversant in however. buy cease order at 6.fifty nine so such that if. the worth goes up and breaks above.
6.fifty nine this is an order that would. routinely you realize get you. into this commerce proper because it broke. it broke about broke above this key. level. 659 that you have you understand uh put into. your dealer platform. so it is in order to purchase if the worth. strikes above a particular value stage. so this is useful proper with your. buying and selling breakouts this order is. you know completely helpful as a outcome of in. breakout trading the value will break. out. of a particular stage and then you’ll. proceed with the momentum right to hit. greater so when you have a purchase cease order. you. are you realize kind of like assured to. enter proper if the worth may escape. of a level. the downside to this is that it could be. a false breakout so once more what might. happen is that permit’s say. pound the greenback towards the chinese yen. so that is the highest. price might go up escape and then.
Boom reverse proper this is attainable as. nicely. anything can happen available in the market so. it is a one possibility that would. happen proper should you’re. you realize using purchase inventory order to enter. a trade. so the next sort of order right will be. uh. stop loss order so the first three. orders that i shared with you proper. these. are orders right to get you right into a commerce. so for stop loss. order is the other as a outcome of this is an. order to get you. out of a commerce so so for example we are. going with a protracted entry. okay so a cease loss order is in order to. sell your place if the worth. exceeds a selected stage so for example. for instance. you market this in a range up down up. down. they start to go up okay and that is the. area of assist and also you begin to purchase. over right here. okay and what occurs is that you know. as you understand in trading.
Nothing is for certain there’s a possibility. that this market may proceed to. reverse down lower. and decrease and should you don’t bail out of. your trade in time proper you can you. know lose a lot of money so this is. the place you can use a stoploss. order and say you realize hey you possibly can tell. your dealer hey you understand what if the. market. you know breaks under this degree in fee. okay if the market. reaches this degree in fee i need to get. out of that trade so to tell that you simply. will inform your broker to set a stop loss. order at this particular value for example. this value is at. two dollars right and you will exit your. commerce so this is what we imply by a cease. loss order is in order to promote your. place if the market strikes in opposition to you. and reaches a particular value degree so. a chart instance would assist so let’s say. you look at dollar in opposition to.
Usd in opposition to the singapore dollars so you. can look at this right market right now. appears slightly bit bullish proper this. space of assist. and it is starting to hit larger but of. course as you realize market might presumably. you understand reverse down. and break lower so to guard your. draw back what you can do is to set. a stoploss order okay so this is the. area of help and what i might say a. correct stoploss order might presumably be. at one thirty three. six stage around here so this means i. can tell that dealer and say. hey you understand i i’m lengthy. usd in opposition to the singapore dollars but i. know the trade could go towards me so. i’ll set a stop loss order at. 1.336. so if the market let’s say reverse down. lower and hit my stop loss degree which. is. this one over right here the stop loss level i. will wish to. promote the place that i have to guard.
My downside so i can depart to fight. another day so this is how. a stoploss order works is to protect. your draw back. okay and naturally proper the draw back to. utilizing a stoploss order is that you simply. may get stopped out of your trade. prematurely so what may happen additionally. is that okay let’s say you set your stop. loss. at this degree right here there’s no. there may be you realize nothing to stop the. market from coming down decrease. when you hit your stop loss and then. reverse up greater that might also occur. so this is sort of like. the draw back draw back to utilizing a. stoploss order however as a foreign exchange dealer. as a trader who makes use of leverage in your. trading i nonetheless counsel you use a. stoploss order. typically sure this could happen it sucks. however in the grand scheme of issues proper. you. will likely proper have a long life in. your trading career because your losses.
Right or. are at all times stored small and that’s. achieved by using correct danger administration. and position sizing and again. those are issues that you’ve realized. earlier and we’ll revisit them. later with chart examples however for now i. simply want you to be familiar with a. stoploss order. okay and the other for stoploss or. the proper is can be utilized for each the. long trade. and a short commerce the concept is the. similar just you know the inverse so let’s. say for instance you’re. in a brief commerce for example market comes. up into this space of resistance and also you. promote. proper you’ll have the ability to put your stoploss order. above this high so if the market breaks. out greater. you would exit this commerce if the market. hits your stoploss at this particular. value point so it is just the inverse. proper of a long entry. so let’s do a quick recap right of the.
Four market orders you have simply realized. primary market order gets you right into a. trade instantly it doesn’t matter what. a limit order will get you right into a commerce solely. if it involves a specific. value degree that you have dictated a. cease order will get you into. a commerce if the market exceeds a certain. value level for instance for example buying. breakout only if. for instance breaks above let’s say a. hundred dollars will you be entering the. breakout trade in order that’s. what a stop order a buy stop order can. do for you and eventually a stoploss order. proper would get you out of a trade if. the market you realize. exit a sure worth levels to protect. your downside. now shifting on in this part you will. learn. the two prices in the financial markets. not simply the forex markets. what’s the spread and why it issues. and how. to scale back the unfold okay so let’s get.
Started the two. costs out there so here’s the factor. right if you end up buying and selling the foreign exchange. market the stock market. or any of the monetary markets there is. always two prices. so they are number one the bid the bid. is the value which you’ll. promote at and the ask that is the value. which you’ll have the ability to. buy at so this idea is identical as. you realize going to a money changer. everytime you for instance for example you. wish to you know purchase and sell. a certain forex for instance euro. in opposition to the usd you are at all times being. quoted two costs to beat. and ask and it is the identical idea over. here so let me. share with you you understand and explain what. this means so the bid right let’s say. for instance if you look at a chart i’m. going to deliver up my charts. over here you see this is the greenback. the usd towards the singapore greenback.
This over right here. is the bid and that is the ask in order of. right now if i want to. sell the us dollar in opposition to the singapore. dollar. i can promote it at 1.34101 and if i need. to purchase. u.s greenback in opposition to the singapore greenback. right now i’ll take a glance at this blue field. and that i can buy it at one three four one. one 5. make sense so there’s always two costs. proper which is being quoted. in the forex market the bid and the ask. and depending you know what you’re. making an attempt to do when you’re attempting to purchase. then in fact you will. concentrate and see what is the asking. value. should you’re looking to promote if you’re. seeking to short a foreign money pair. you will take observe of what is the. bid worth. what is the unfold well the unfold very. simply is this. is the distinction between the bid and. the ask. so let’s say for example euro usd is.
Trading at. one three five zero zero this is the. b and the ask is buying and selling at one three. 5. zero one that is the ask so the. distinction proper. between the bit and ask on this case is. one pip. so this is the unfold on euro usd. and now you might be wondering hey proper. now you understand why does the spread matter. as many what has it received to do with me. nicely a lot proper he has to do lots with. you. and your own buying and selling and here is why. unfold proper if you have a look at it proper you. can take a look at it within the form of. transaction cost in foreign foreign money trading most. of you most likely don’t pay commission to. your broker. so your transaction value is in the form. of a spread so let me explain how this. works. so the upper the spread the higher your. transaction value and likewise the decrease. the spread. the lower your transaction prices and i’m.
Going to give you an example. so you possibly can see what i imply so for instance. you purchase one standard lot of euro usd. and the spread is three pips how a lot. does a spread cost you in in dollar. terms. so you know as we now have you understand. mentioned earlier one commonplace lot is. a hundred 000. units one hundred 000 units. and the value per pip is 10 dollars. so in case your unfold is three pips. this means proper the second you placed on a. trade whenever you trade one normal lot of. euro this ought to be usd it is unsure. why it’s i okay if you. purchase one a standalone of euro usd you would possibly be. instantly down. 30 on this trade that’s. the value of the unfold in phrases of us. dollar to you. so if you think about this proper what if. the unfold. now is one pip can you see how much of a. difference this make. if the unfold now is one pip the cost to. you is simply ten.
Dollars see see what i imply by. having a large unfold and a tight spread. the upper the spread. the dearer your transaction price. is going to be the lower the spread the. cheaper your transaction price is going. to be. so now the question is how can you. scale back the price. of the spread so one thing to point out. is that it’s near inconceivable to you know. inform your dealer to give you. a good spread proper as a end result of it’s pretty. a lot mounted and there’s nothing you can. do about it however what you are in a position to do in your. finish. is simply concentrate on major forex pairs so. as talked about earlier main foreign money. pairs these are essentially the most. in style currency pairs which would possibly be actively. traded on the planet and when you have a glance at. their unfold right they are. usually right smaller tighter than the. different foreign money pairs just like the exotic or. even the uh.
The uh cross currency pair so let me. share this with you and you may see over. here i’ll pull up buying and selling view. if you look at our every day time-frame and. in case you guys are questioning right. this platform is trading view it. provides uh charting providers in case if. you need it. so when you have a look at euro usd you can see. what’s the spread right now so for. instance. the distinction between the bit and us is. really proven over here on this middle. the spread on euro usd proper now is. zero.2 pips should you have a glance at pound dollar. the unfold now is about 0.3 it is shifting. you understand up and down simply pay attention. to this. portion right here about 0.5 and should you look. at aussie against the dollar it is about. zero.23. 0.2 right now but what should you take a look at. other currency pairs perhaps you look at. you understand one thing just like the cross. forex pair like.
Pound new zealand the unfold right here is now. 1.2. if you have a look at one thing exotic like. dollar against the turkish lira is 66.three. pip so you’ll find a way to see right. if you need to have you know lower. transaction prices all right concentrate on. major foreign money pairs the spreads are. often. tighter often decrease and. one other thing that you can do is to. trade the higher time frame so the cost. of your spread is lower in terms of. proportion so let me clarify what this. means. so for example you could have one pip unfold. with a 5 pips stop loss should you assume. about it right your. unfold is 20 proper of the size of your. stoploss so let’s say in case your stop-loss. is 5. pips your unfold is one pip proper the. unfold as a perform of your stoploss. eats up about 20 of it so this implies. right in essence your stoploss is only. four pips if the market moves four peeps.
Against you you are going to get stopped. out of your commerce. however when you have a onepip. spread but your stoploss is. one hundred pips and the explanation why you’ll have the ability to. afford 100 pip cease loss is. because you’re trading off the higher. timeframe. you’ve a wider stoploss right because. you’re buying and selling on a better time-frame in. this case the one pip spread is just one. %. of the size of your stoploss so in. phrases of price it’s just one p.c. of the size of your stop loss so you can. see that in the method in which proper your. unfold right you are paying or quite a. proportion of your stoploss is smaller. when you could have a wider stoploss and to. have a wider stoploss is often. because you are trading off the higher. timeframe and if you suppose about this if. you commerce on a 5 minutes chart on the. 15 minute chart.
The worth motion right the finest way the. candle moves up and down right the vary. is usually. smaller in comparability with trading off the. day by day time frame where the range is much. larger so when you’re trading off the. larger time frame with a larger vary it. is smart to have a wider stoploss to. accommodate right. the biggest swings on that time frame so. for this reason if you trade off the upper. time frame. your stoploss is often wider and if. your stoploss is. wider you’ll understand that this spread. proper as a function of your stoploss. proper in phrases of. share is often decrease compared to. you understand for example you commerce off the one. minute or 5 minutes timeframe. the spread as a perform of your. stoploss right is usually. wider and you’re gonna you know find yourself. pay more in transaction costs. so let’s do a quick recap primary the.
Spread is the difference between the. beat and ask. the bid is the worth that you can promote. it the ask is the price you could. purchase at number two the lower the unfold. the lower. your transaction value and eventually when you. need to scale back the value of the spread. what you can do is to give attention to the main. currency pairs. or trade off the higher time frames. hey hey what’s up my pal man i miss. saying that as a result of you know. these videos truly they’re all carried out. individually and then stitch up together. as a end result of. if i have been to say hey hey firstly of. each part right you are gonna get. irritated by me. so anyway welcome again uh on this. part you will study. the several varieties of foreign exchange merchants. and you know let me clarify so there are. various kinds of foreign exchange traders out. there. you can classify them as shortterm.
Traders mediumterm traders and. longterm traders so let’s analyze you. know. uh what are the variations proper. between these kind of merchants number one. shortterm merchants. so for time period merchants proper your time. frame it is usually under the one hour. time-frame you will likely operate on. the five minutes quarter-hour time-frame. your potential goal by method of pips. proper you are normally aiming anyplace. between 5. to 50 pips and your holding time it is. normally. lower than three days and one thing to to. share is that no matter i’m sharing with. you is simply. basic guidelines it is not really cast. in stone as a end result of shortterm merchants. there are some. actually actually shortterm traders like. scalpers who can be in a trade for simply. a couple of minutes. after which you have some shortterm. traders merchants that are slightly. longer which could be beneath day traders.
Where they may maintain their commerce for a. day or two so what i am sharing right here is. just. uh a basic guideline proper to to take. into consideration. next one medium time period merchants so these. are the sort of merchants who trade. between the one. and 4 hour timeframe their potential. goal is usually wherever between. 50 to 200 pips and they can maintain their. trades wherever between three. to 10 days and eventually you may have the. longterm trader. who trades proper the fourhour time. body and above could probably be the 4 hour. eight hour daily. or even the weekly time-frame then their. potential target is normally you understand. more than 200 pips on each trade that. they are aiming for. and so they can hold their trades you know. for 10 days or extra weeks and even. months so a super quick recap this could be a. fast. section right so you could have quick term.
Traders medium term traders and long. time period merchants and personally for me i’m a. medium to long run dealer so. the important thing right here right to share with you is. to get you to know the totally different. sort of. buying and selling time frames you could be on. and to find a kind of trading fashion that. suits you may be you extra in course of. shortterm buying and selling medium-term buying and selling. or longterm. longterm buying and selling and the one approach to. discover out is to through trial and error. proper you realize. buying and selling throughout the completely different time frames. to see what works for you and also. another thing is time commitment. performs a part because in case you have a. fulltime job it is unlikely that you could. be a shortterm trader as a end result of. you simply can’t afford to be glued in. entrance of the display screen right all day to. watch the markets whereas having a. fulltime job. so probably i will say medium term to.
Longterm trading would suit you greatest. but however for instance you are. a someone who is very free. uh you have a lot of time and you’ve got. you know interest in shortterm. day buying and selling then hey you understand maybe that. is one thing for you however in the end you. should discover experiment trial and. error. to see which kind of buying and selling strategy. would go well with you. finest. boom increase shakalaka hello my name is raynor. pleased to fulfill you all proper cease stop. messing around so in this section right. you’ll. be taught primary what’s technical. evaluation what’s market construction. what is an area of worth what is an. entry trigger and more importantly. how do you use technical evaluation in. your trading so let’s get started. so first thing first what is technical. analysis so i define technical analysis. as using previous. knowledge that can help you make your buying and selling.
Decisions and this past information could be. issues like volume indicators chart. patterns candlestick patterns and so on. and of course proper technical analysis. is not the one approach to treat the markets. since you even have issues like. basic evaluation. sentiment evaluation however me primarily i’m. a technical dealer so for this reason in. this video. i’d focus more on technical analysis. and i want to share with you. the three issues right that you must. concentrate on right when you kickstart this. trading profession of yours so technical. evaluation all proper i would say there are. three. elements which is essential to. master the primary part right here. is what i name market construction so. here’s the factor right whenever you look at. the worth chart. the the very first thing that involves your. mind should be no. hmm ought to i be shopping for should i be.
Selling or should i stay out of the. market that’s actually the first. thing that should come to your thoughts you. should not you know have a glance at the chat and. say oh let me buy now oh let me promote now. no. you must first ask your self is this. the type of worth action is that this. chart telling me that i ought to be. on the lookout for buying alternatives. or promoting opportunities or perhaps i. ought to stay out fully of this. market that is the first. query proper that you must reply and. every thing else proper is secondary. so the greatest way to do that right is market. structure helps you to answer this. question it tells you what to do. so market structure lets you outline. the current market condition so you realize. whether to be shopping for promoting or staying. out of the market so let’s dive. a little bit deeper into market. construction so market construction there are.
Different kinds of market structure but. for this video i will share with you. three broad classes of market. structure primary being. an uptrend if you know a stock or sorry. a market is in an uptrend not. essentially stock could be currency pairs. etc you wish to look for. buying opportunities so let me clarify. to you what an uptrend is. so within the grand scheme of things grand. scheme of issues an uptrend. forms a sequence of higher highs and. higher lows so it appears one thing like. this. market goes up however as you realize market. does not go up you need straight line he. goes up he must take a breather it. must pause and then he makes a. pullback. then as soon as the pullback ends he’ll. proceed up higher breaking above this. previous swing high this earlier high. if you want to name it and goes up once more. it doesn’t go up in a single straight line. [newline]You need to take a breather. pause once it pause once it rests. completed and then it continues up higher. breaking out above the previous swing. high again after which the pattern rings. repeat itself. so if you take a look at this you will discover. that an uptrend consists of. a collection of higher highs and better low. look at this excessive. one other higher excessive a cluster disc as. one and one other greater excessive. when you take a glance at the lows it is a greater. low. larger low high low okay had to do this. so that is what i mean by an uptrend a. collection of upper highs and higher lows. and should you see a market has this. market construction this forex pair has. this market structure then what you need. to do. well you wish to search for shopping for. opportunities as a outcome of the market is in. an uptrend the path of least resistance. is greater so that is why you wish to be.
Looking for buying opportunities so if. you see a chart that looks like this. inform your self promise me you will solely. look for buying opportunities proper you. don’t want to look for. promoting alternatives not they can be. carried out they’re merchants who focus on. counter trend trading but for you. the newbie is far easier to be. trading along the path of least. resistance. trading in the course of the trend. then in opposition to it okay so uptrend search for. buying alternatives. subsequent one downtrend this is just a. reverse you want to search for selling. alternatives. so downtrend right in essence is a. collection of decrease highs. and lower low so market hits down decrease. makes a pullback. heads down lower again breaking under. the earlier low. makes a pullback heads down lower. breaking the previous low. generally it may consolidate and then.
Break down lower as quickly as once more breaking. below the. previous swing low so if you look at it. you’ll notice a sequence of decrease excessive. lower excessive. lower excessive and lower low. lower low decrease low so if you see a. market is in a downtrend. then what should you be doing buying or. selling. nicely the trail of least resistance is. towards the draw back so promise me when. you see a chart that is in a downtrend. you only. consider selling opportunities okay. that is the path of least. resistance and eventually you could have what we. call. a spread market and on this market. condition you’ll find a way to know be both a buyer. or vendor so a range market appears. something like this. price is contained between the highs and. the lows so. when a market is in a range right you. can look for each shopping for and selling. alternative and one factor to point out. is again how do you know a market is in.
Range is the place. you see the the highs of the range right. the value just keep testing it right however. unable to interrupt out greater compared to. an uptrend the price is prepared to break. above the previous swing excessive it is ready. to break above the highs. however in the range it’s just you realize. getting rejected at the highs. persistently over here same for the the. lows of the range it just can not break. down decrease. it is just you understand include uh above the. lows. of the range so you can assume just like the. worth proper it’s being trapped like in a. in a giant large box simply can’t. get out of it so with that said let’s. take a look at a quantity of. chart examples so you know how this. appears like because one factor to. to know is the theory is one thing but. whenever you. take a look at the stay charts the promote it. can look utterly totally different out of. whack.
Like one is in in uh one is in heaven. and one is on earth so it’s going to be. quite different so i wish to. walk via with you proper when you. take a glance at the chart so should you have a glance at this. chart new zealand against the swiss. franc this is the daily timeframe as. you’ll find a way to see over right here. on the day by day chart what market construction. is this. nicely when you discover this this market in. the grand scheme of issues is forming a. collection of upper highs. and higher lows greater high higher excessive. higher high. greater high greater excessive and higher low. higher low larger low high low excessive yeah. low there’s one other minor one over here. okay so yeah so we will see that within the. grand scheme of things. in a big image should you look from left. left to proper this market is. heading higher it’s in a uptrend and if. a currency pair if a market is in an.
Uptrend. what do you have got to be doing in search of. buying alternatives or selling. alternatives. i am certain you got the answer okay so. let’s have a look at. one other one dollar towards canadian. okay so when you look at this again this. pair just determine the highs and lows on. the chart this is the highs. the highs the highs highs highs the. highs. the highs and the low the low low low. low low and low so you look from left to. proper. the place is this foreign money pair heading over. time it is heading down. decrease so in other phrases you probably can see that. the us greenback is depreciating against. the canadian greenback. over you realize over the last there’s a. number of months over here that you see. at the bottom. okay so that is in the downtrend and one. factor to additionally share is that. whenever you look at a chart proper there are. many swing points what i name a swing.
Point is. the heights and lows on the chart that. sort of stick out like a sore thumb. which could be very obvious like you realize this. is a swing excessive. this is a swing high i would not think about. this a swing high as a end result of this is not as. obvious this is not as. in your face kind of thing so whenever you. wish to establish the collection of upper. highs and better lows on the chart pay. consideration to the swing points those. that actually. stick out like a sore thumb right the. minor ones you’ll find a way to just just about. ignore it as a result of if you. attempt to pay attention to every single. minor highs and lows on the chart. you will get confused proper and lose the. big picture so for example let’s say you. look at this over right here. you would possibly look it is oh it rainer the. price you realize broke out of the. the uh there’s high man you know this. looks like an uptrend.
So i do know it sounds silly but you know. typically whenever you get too. fixated on buying and selling within the now you may. actually suppose along those lines so simply. keep in mind. take notice of the most important swing points. if you’re unsure and look from left to. right. left to right do not just have a look at the. final 5 six candle loops. look from take a look at the massive picture. perspective bird eyes view that is. necessary. okay so dollar against the canadian we. can each agree that that is. within the downtrend moving on british pound. against canadian. dollar on this case i will go to the. weekly time frame okay. and you can see over here what is that this. market condition and oh yeah before i. continue. dollar against the canadian day by day time. frame. okay in this current market structure. what do you wish to be doing shopping for or. promoting. i am sure you wish to look for promoting.
Opportunities that’s the trail of. lease resistance next one pound in opposition to. canadian so if you have a look at this one. again what’s. this market structure nicely you can see. that this one’s slightly bit completely different. it’s kind of totally different from the sooner. ones. this market appears to be contained. between this highs. and this lows we’ll speak more about this. exact highs. and lows what’s the terminology and the way. we will use them in your trading. in a while but for now simply concentrate. that this market is type of. contained in in a box caught between the. highest and the lows and that is what we. name. a spread market and in a range market you. can look to purchase low and promote high purchase. near this low. or promote near this high however personally. for me i like to commerce. developments okay but i nonetheless wish to share. with you what the range market looks.
Like because hey a few of you may go on. to be you know. pro range traders in future but for me. personally i simply wish to trade tendencies. purchase in uptrend and promote in downtrend so. but nonetheless that is what we name a. vary market you presumably can look to buy. near the lows and sell near the highs. and one a few extra examples you. can see is on. british pound towards the us dollar what. is that this market structure. so again should you have a glance at this this. total seems to be. in an uptrend right series of upper. highs larger highs. greater highs and better lows higher low. larger low higher low greater low. and probably this larger low so you probably can. see that you know. this proper if you are again too fixated. within the now you may assume that. ah rainer this seems like you know a a. downtrend man look rainer. this market has made a decrease high and a.
Lower low this market is in the. downtrend. sure i get it proper if you take a glance at simply. those few candles proper you. uh you’ll be able to assume that it is a downtrend. but you let’s take a step again and look. from left to proper again. you wish to just be sure you are. taking a chook eyes view and never just. looking at. a person tree and missing the. forest this is a mistake that i want you. to make so should you look from left to. proper you’ll find a way to see. that this market general is in an. uptrend okay so this might be. a swing the next or quite the swing low. that’s just about still intact if the. market proper can break beneath this. low and this low over here then hey then. possibly you realize you’ll have the ability to see that this. up trend is getting weak right perhaps the. pattern is starting to reverse but once more i. don’t you know. take issues too far out of hand because.
That is where we go into more superior. technical evaluation however for now. trying on the huge image i would say. the pound against the us greenback trying. from left to proper this market is in an. uptrend. and i’m on the lookout for shopping for alternatives. and don’t be concerned you understand about you understand. hey the place to purchase how much to buy when to. buy we’ll cowl all that stuff later on. now simply focus on this market construction. and what’s one last ultimate instance is. euro towards. the us dollar so if you take a glance at this. this market. is it in an uptrend or is it in a. range so you possibly can see that you know. this chart i purposely picked this one. up as a result of. when you deal with technical analysis. there is subjectivity concerned and if. you say. that is an uptrend some traders are. going to say this in a range i won’t say. anyone is correct or incorrect as a end result of it’s.
Kind of like in between. the it’s kind of like in between okay so. personally i will say. that this market is more in path of the. range right given this uh. value chart that i’m looking at right. now this is able to be the lows of the vary. and that is the excessive although this. excessive is just tested one time. some may argue not right now that is. an uptrend or greater high excessive low. nice that is your viewpoint so this. is why as a discretionary trader as a. technical dealer. there is always you realize somebody with an. opposing view of your so. and one factor to additionally level out is that. if a chart does not converse as much as you if. the chat proper makes you feel confused. and frustrated and you have no idea what. to do. remember you all the time have the choice to. stay out of the markets. transfer on on to one thing else no one is. pointing a gun in your head hey.
Everybody placed on a damn trick man. no no one is doing that so if it isn’t. clear if it’s conflicting data. move on onto another forex pair does. it make sense. now shifting on quantity two area of value. so you’ve got learned right what’s market. construction earlier if the market is in an. uptrend. you want to look for buying. alternatives but here is the thing simply. as a outcome of a market. is in an uptrend does not imply you. blindly hit the buy button no as a end result of. the pattern proper might be about to make a. reversal it may could probably be about to make. a pullback so for this reason. you want to look for this subsequent second. thing an area of worth so this is like. you understand happening a date with a woman for. the first time. doesn’t mean you go on a date once. you are gonna marry her because you do not. not know what kind of individual is she does.
She actually such as you do you really like. her. you understand you need extra affirmation and. it’s the same for buying and selling we’re trying. for extra affirmation to give us. clue that this may be a good time to enter. into an uptrend okay so the second factor. is what i call. an space of worth so this in essence. proper let you know. tells you right the place to purchase or promote so. market structure previously it tells you. what to do. do you’ve got to be looking for shopping for. alternatives or selling alternatives. nevertheless it doesn’t suggest. hit the buy button no you are only. looking for alternatives. whether or not to buy or promote for this one it. tells you. where to buy or promote the vital thing word right here. is where the place on the chart to purchase. your self so area of worth. really is about this that will help you. pinpoint the world on your charts to look. for. trading opportunities and to to search for.
Areas of value on your chart there are. numerous tools that you ought to use however for. me personally. i exploit support resistance and shifting. average typically and so this is the 2. things. the 2 tools that i need to share extra. with you so help and resistance. in any other case often identified as sr. so what is assist and resistance so. here is my definition of it so help is. an. area on your chart the place buying strain. could step in i did not say mass right. as a outcome of in trading. nothing is guaranteed buying and selling is all. about possibilities by no means a certainty so. it’s an. area in your chart where shopping for stress. could possibly. are available in to push the worth greater so it. appears something like this let’s say. market is in the vary. so help is at near the lows of this. vary that is what we call. support proper where buying strain got here. in and pushed the value up greater.
Buying pressure got here in push the value. up higher. assist this year buying patrons got here in. and pushed the price up larger so let’s. say now value is at help. what’s gonna happen go up no it might. additionally go down okay so this is why i say. that. it is an space in your chart where buying. strain could step it. so subsequent resistance that is an area on. your chart the place. promoting strain may step in so once more. this is an. area of resistance over right here the place the. price came up. hit down decrease went up kept down lower. went up. and what happens came down decrease so. again anything can occur. in markets it could go up it can escape. of resistance or it might possibly. face selling strain resistance and. then reverse down decrease once again so. for this reason. the word is could might step in so now. that you just perceive what’s support and. resistance.
So in essence proper support is the place. consumers could are available and push the value. up larger. resistance is an area in your chart. the place sellers may are available and push the. worth down. lower and another factor to add is that. when help is broken it tends to. turn out to be or it might. turn into resistance so for example it is a. port. okay so support support support right. earlier help. could now turn out to be resistance proper where. fights where worth could face selling. pressure after which proceed. lower down for from right here and vice versa. if. resistance is damaged that area could now. become. support let’s say this is resistance up. down up. down up down up escape come again. previous resistance resistance. resistance may become support and the. value might. possibly heat up higher from here so let. me share with you. a couple of charts so you’ll have the ability to kind of like let.
This concept sink in to your head so. first one right here is pound canadian. so when you look at this uh weekly time. body chart which i’ve marked you can. see. where is your assist and resistance. space support right tested once twice. 3 times four times. the resistance that’s those over right here. and for this reason i said it is an area on. your chart when you have a glance at this over right here. the value did not respect. this stage to the height actually you break. out folks thought it is a breakout and. then came again collapsed again into the. range. once again okay so if one other. one over here almost touching nearly. touching it broke out. went back in the range once more after which. this was virtually near to the pit and then. went back into the range once more so this. is why we’re dealing. with an space however the cause why i draw. support resistance as traces is as a outcome of.
It’s my habit it is something that i’ve. been so used to doing but when you do not. need. to uh to to face this drawback of you. know treating this as. a a line or whatsoever you can use a. tool right i think it is known as the. rectangle. device to make your life simpler this one. over right here. so what you are in a place to do is simply you realize. deal with this as a box and space you can. just draw it. like this like an area if that makes. your life easier identical for this one over. here right. draw it like this to sort of know better. interpret it however once more. as i’ve stated right my desire is to. use a line but if you suppose a box technique. would make extra sense for you be happy. to go forward. subsequent one platinum so on this one i need. to share with you the eight hour time. body so you can see over right here. the concept that i’ve shared earlier. resistance proper tested once tested.
Twice. virtually thrice fourth time here. fifth time then price breaks out. if price breaks out of resistance what. may probably occur earlier. resistance could turn into. help buyers might probably step in. here right to push the worth up greater. in this case it did. happen one more instance or quite a. second final instance this one right here is. euro against the aussie dollar. that is an area of assist tested as soon as. examined twice got here back right here. consolidate slightly breakdown retest. earlier support turns into resistance. head down lower retest this same space. of resistance. after which continue to grind type of decrease. around here. so once more this is how help resistance. looks like in your chart and once more i. didn’t draw the total thing i just wished. to point. out the obvious one to share with you. the ideas that i’ve mentioned however.
Really if you need to draw another one. i’ll say this would be one other degree. that you may look at this heist over. right here. okay and one final example this one right here. is a bitcoin. simply to illustrate to you that you know. hey the concepts that i’m sharing with. you are can be utilized to uh. completely different markets as properly so if you look. at this one over here. can you see this area of help okay. examined virtually right here virtually the primary time. second. third fourth fifth then what occurred. worth broke. below support okay broke down nice. in order you know right if value breaks. under support what may occur. previous assist may turn into resistance. which happened over here earlier. help worth breakdown. became resistance and again support. resistance they’re an area on your. chart so this is why. you should not anticipate the worth to reach.
A explicit. greenback amount or very same right and. reverse from there no it is an space. it could exit by a lot it may exit by. somewhat bit or you can undershoot it. proper does not even touch it after which. reverse from there. okay so you’ll find a way to see what happened next. proper for bitcoin worth continues down. decrease and it retains right it goes to. retest this space of resistance. and watch what occurs it didn’t respect. this this space that we had drawn out. earlier in reality it. went deeper proper to retest almost this. highs over right here so you’ll find a way to see i just. pulled it again out. okay so now so at this level proper. help resistance it’s kind of fluid. it’s dynamic you must. make changes to it from time to time. so if i wish to take a look at this chart proper. now. okay i would not leave my line on my space. of resistance here i might shift it up.
Higher. proper to bear in mind right the. latest value move so this one now would. make extra sense because they tested this. one here as quickly as and twice over here. so let’s examine what happens subsequent then. price i’ll zoom out a little bit. price then retest this for a 3rd time. over here after which it. finally broke out so worth has broke out. of resistance so as you understand if price. breaks out of resistance. what might presumably occur earlier. resistance might turn into. support right earlier resistance could. now turn into. assist consumers may possibly step in. might step in. and push the worth up larger which he. did in this case and of course all these. charts are cherry picked right simply to. you know. make certain that the teachings the. ideas that i am instructing you proper are. crystal clear in the. real world of buying and selling right there are.
Things that always issues is not going to go. away and. you know you must be ready for it. okay so in this section proper it’s about. entry trigger so let’s do a fast recap. what you’ve discovered thus far so thus far you. have realized about market structure it. tells you. what to do must you be on the lookout for. buying alternatives promoting. opportunities or to stay out of the. markets. there we coated about area of worth. there are two issues we coated in space. of worth. support resistance and transferring average. and these are instruments you could. use right to tell you realize the place to buy. or promote so. market construction tells you what to do. space of worth tells you. where to purchase or promote and now we’re. shifting to the third part entry. trigger this tells you. when to buy or promote okay so. entry trigger there are lots of methods you. know you’ll be able to.
Use the numerous tools on the market that can help you. time the market but what i find. personally to be very useful is. candlestick. patterns and that i need to dive deeper into. this part since i find it so. helpful so what’s candlestick sample so. candlestick patterns is a method of. reading a value chart in fact it’s not. the only way you’ve bar chart you might have. line chart of all of the various sorts of. chart on the market. so candlestick pattern is just one of. the methods to learn the value chart and. it’s obviously one of many extra well-liked. approaches. so how do you truly learn a. candlestick pattern one factor to. perceive is that there’s four knowledge. factors for every candlestick sample. you’ve the opening value the closing. value. and the high and low of the session so. if your candlestick sample is let’s say. on the.
One hour time-frame then what you may see. is that the highest. price point over the over the last one. hour and the low. is the lowest value point over the past. one hour so slightly bit more about. candlestick patterns is that you ought to use. it. to trade different time frames so for. example if you see a candlestick pattern. on the one hour time frame it simply. means that on a one hour time frame. each one hour a brand new candle is shaped if. it is on the four hour time frame every. new candle is formed. every 4 hours and should you’re on the. daily time-frame one candle is formed. each single day. identical for the weekly monthly identical idea. so now let me clarify you understand. how to actually read a candlestick. pattern so you’ll see. primarily two types of candlestick. sample one is green and one is purple. however let’s talk about the green one first.
So keep in mind i stated that there are 4. information points so how do you actually know. know where the four data factors so very. simple for green candle it merely means. right that the worth has closed. above right the opening worth so let’s. say this is type of a one hour candle okay. for instance this is a one hour candle. so what it tells you that the worth. proper has closed. proper higher than the place it was one hour. in the past so that’s why it is nice proper he. has closed greater. you understand in comparison with the place it was at the. opening worth one hour in the past so that’s why. it’s nice so the opening value. will be at here and the closing worth. might be right here that is the only means for. the closing price to be above the. opening value the closing value has to. be greater than it so that’s why it’s. green. it is bullish so the opening value was. once again over right here at this line.
And over here is the closing price we’ll. add in some numbers afterward so you can. see how it all is sensible. so what about here this merely means is. the very best value point over the past. one hour if you’re on the one hour time. body. and this is the lowest value the market. has win right. in the course of the previous one one hour proper is. the bottom price level so this is the. high highest worth level over the previous. one hour. and the bottom price point over the past. one hour in fact if we modify this to. a different time frame to the eight hour. time frame the. every day timeframe concept is similar so. let’s say we try the weekly time frame. let’s take another one hour the weekly. timeframe so what does it mean it means. that. at this value level of the candle that. is the best worth level right. over the week over the past one week and.
This is the bottom price level over the. past one week over here. and that is the opening value of the. week and that is the closing value of. the week so same similar concept. so now what about nice candle so this. is simply the inverse so should you recall. this over right here was the closing and this. is the opening. so the closing worth is higher than the. opening value that’s why it is bullish. that’s why it is green. but for a rate candle it simply means. that the closing worth is beneath. the opening worth i repeat right the. closing worth is below. the opening price for a rate bearish. candle so your closing worth has to be. right here. see and over right here is your opening worth. that’s the only method proper for this. candle to shut decrease. is if the closing value is under the. opening value and likewise over here. is the best and that is the lows.
Exactly the same. idea so if i have you learnt piece all. this together you will have a chart that. appears like this. okay this is what i simply stated earlier so. a little bit more uh. socalled technical definition should you. need so we name this color thing the. body. and this this line over right here we call. this the. higher wick or higher shadow whichever you. know whichever term that you just prefer. there isn’t any right or mistaken over right here and. that is what we name the decrease wick. or lower shadow okay so that is how you. learn a candlestick. pattern now transferring on let’s let me. let me share with you how it looks like. right on a real chart and how you. interpret it. so i’m going to take a look at this uh. foreign money pair let us take a look at the daily. timeframe this is aussie against the. japanese right here and i’m going to zoom in. so you’ll be able to see what. so we are on the same web page so you possibly can.
See over here i’m going to. i need you to pay attention to those. numbers over right here right this is the. opening worth. that is the best value level over the. last one day this is the lowest value. level over the previous in the future and this is. the closing value. and is the percentage change right in. pips so this quantity will transfer right. depending where my mom’s cursor is so. pay attention. so let’s look at the newest one. this candle right here how do we interpret. this so let’s interpret this together. one after the other so for this candle it tells. you that this market. opened at 83 589 so it opened at this. price point. 83 589 the best price level for the. day is eighty three.788 which is over right here 83.seventy eight. the low of the day is eighty three.036 which is. here the low of the day. eighty three.036 and the closing price for this. this uh this market for today is.
83.529 which is at this price. point over right here does it make sense so. let’s do yet one more example. how about the dollar towards the. japanese yen okay now we have a green. candle. so identical identical factor proper for this market. the opening value what does it say. 109.248 this is the opening worth 109. 248 where is the highest value level for. the day. 109.ninety six 109.ninety six. the place is the lowest worth point for the. day 109.193. over here 109.193 and where is the. closing price for the day 109.614. 109.614 and along the ways you will. in all probability see. some candles the place they’re lacking a. body man the candle is weird proper now. where’s the physique. so that is normally whenever you’re opening. and shutting worth are too near one. another the place you get a really. nearly a nonexistent physique kind of like. this one here take a glance at this proper almost. a nonexistent physique so yeah it occurs.
Especially when the opening price. and the closing worth are very close to each. different so when you have a look at this. proper. let me simply see what the numbers are so. you don’t freak out. so for this candle the opening price. uh opening price for this is 103.76. and the closing worth is 103.75 okay so. that is why. you’ll find a way to see they’re just like a 3. pipette different zero.three. pips completely different so that’s why their body. is nearly nonexistent. so that is how you really read a. japanese candlestick. chart so transferring on proper so now you understand. the basics right how do you truly you. know. or rather how do you use it to time your. entries so to do that proper you need to. focus or learn a few patterns right to. allow you to accomplish that and there are two. patterns. or possibly four patterns i want to share. with you so first let’s speak about the.
Bullish. reversal candlestick pattern and. perceive you realize what is it how it. works. and the story behind it so the primary. sample i wish to share with you is what. we name. a hammer so completely different candlestick. patterns they’ve totally different names they. have hammer harami engulfing you know. darkish cloud cover and stuff like that so. that’s actually actually really lots out. there but i am not gonna teach you. every thing as a end result of. it isn’t wanted proper as you progress. and learn and grow as a dealer you. realize that hey. most of these patterns are pretty much a. variation of one another so i will. share with you the commonest. variations the most helpful ones and. after which you’ll go on and explore. the opposite you realize patterns out there. and of course the fundamentals i’ve already. taught you so. you can just you know stack upon what.
You’ve realized and to to study even more. so first one is what i call ornate i. call it right people. you know others on the market the. technicians call it a hammer so let’s. understand what. hammer is about so once more where is the. opening price worth open over right here. where is the closing worth for green. candle the closing worth has to be above. the opening price. so it’s right here where is the excessive of the. day. over here so let’s assume that this is. the day by day candle proper the high of the. day is here. and the low of the day is over here so. what is the story. of this hammer so it’s quite fascinating. right you can imagine like that for when. the market opened. over right here the sellers they were in. management like. out of the gate proper right here like. barbara’s you understand running out the gates. they usually pushed the market they pushed. the price down close to the lows.
Of the day then when all the buyers they. all defeated all right then by some means. quite. there’s like one tour one captain. america from the center of nowhere. shelter. vengers assemble and then all of them unite. and you realize push the price up all the. means up larger. finally closing near the very best of the. day so you’ll find a way to imagine that this type of. tuck of four. between the consumers and sellers proper. when market open sellers came in with. smash and you understand. uh push the value all the way down. suddenly sometimes in the course of the. day the patrons they awakened proper they. assemble the united and so they push. the market all the greatest way up to close near. the highs of the day so this tells you. that hey you realize the buyers are actually. in management that’s why they managed to. push the worth proper push the worth all. the greatest way. close to the highs of the day and that is.
What we call a hammer since you kind. of look like a hammer. okay so another another pattern that is. price learning is what we name a bullish. engulfing pattern so the story is very. related however this time round it’s. expressed proper using two candles so for. this one over here this can be a rate. bearish candle so you can see that the. sellers took management and closed the. price proper near the lows of the day so. the buyers had been all defeated ah. you understand injured already painful the. next day right by some means the. the patrons they obtained revived proper they. grew stronger proper maybe they put you. know slightly bit an extreme quantity of steroids in. their physique or. or whatsoever it takes a magic potion. and so they they push the price right to. shut close to the best of the day as soon as. once more. so they beautiful a lot just overwhelm right. the selling pressure of yesterday.
How do i do know that because you’ll be able to see. that the vary. of the candle or the vary of the physique. over right here was previous beforehand from. this opening value. to this closing price but the next day. it opened low. and closed even higher than the previous. day opening worth so you’ll find a way to see that. the consumers has even overwhelmed right. the. the sellers right by a lit even somewhat. bit extra so that is what we call a. bullish. engulfing sample so subsequent one the. opposite of uh. bullish candlestick patterns proper this. is what we name the bearish reversal. candlestick pattern so there are two. as nicely this one known as a shooting. star so this is really the inverse of. a hammer. i will just explain the story behind this. so since you understand it’s a red color. candle opening price. is right here closing price is here so what. happened proper so you’ll find a way to see that.
When the day began proper for example. this is a every day candle patrons push the. price all the greatest way up. this larger and mark this highs for the. day and then. suddenly the sellers got here in you realize. took control. and push the value close to the lows of the. day finally closing close to the lows. of the day i noticed the buyers so you realize. when the market just opened oh i am. really excited. you realize let’s push the price up higher. then by some means middle of the day you know. things obtained depressed you realize possibly you. know. he received reminded of his exgirlfriend. item this exsweater let me throw this. sweater let me promote promote every little thing. and then the market collapsed and sell. bought off and almost just about closed. near the lows of the day so you’ll find a way to see. that. initially patrons they’d the upper hand. but they had been overwhelmed by the sellers.
Right towards the end of the day so this. is where you get. a taking pictures star so for this. bearish engulfing pattern right it’s. pretty much uh. similar uh similar story so we are able to see for. the first candle. it’s bullish proper buyers are happy. woohoo i celebrate right they’ve. closed near the highs of the day. but for the second day proper the sellers. took control and pushed the price proper. all the way in which down decrease. exceeding even beneath the lows of the. previous day and the and even the. opening price. of the previous day they closed near the. lows over here so we will see that the. buyers as soon as again they have been defeated ah. i know. you realize injured hospitalized and. they’ll by no means i will not i do not need to. say. by no means to get well because in the market. it at all times always goes up goes down so. for now. i might say the sellers has quickly.
Won the war. okay for now so let me share with you a. a few uh charts all proper so you realize. how this appears like. on the chart and you may see that you simply. know all of the totally different variations of it. on the market. so let me point out to you the first one. let’s take a look at how about. greenback towards the japanese yen so that you. can see over here. this one appears one thing like a in. between a taking pictures star and a bearish. engulfing. pattern then we’ve this one as properly. extra of a taking pictures star. should you have a look at different instance like euro. against the usd. you presumably can see over here this is just like. shooting star but the difference. is the body of the candle is green so. once more if you trade the markets proper. it would not. mean that it must be a textbook. instance it has to be fee to be pink. shade sometimes it might be green as nicely. but the meaning is pretty much the identical.
Because when you have a glance at this proper. this is the price rejection that you. have seen proper the consumers tried to push. the value up higher however received overwhelmed. by the sellers and eventually. close proper near the lows near the. opening opening value of the day. over here you’ve a bearish engulfing. pattern right take a glance at how this range of. the candle has you realize. overcome right the physique of the previous. day. and uh this is a bullish engulfing. pattern discover how the body of this. candle has you know. uh is bigger right and shut right even. above the. highs and the opening value of the. earlier day this could be a bullish engulfing. pattern. and then that is one other bearish. engulfing pattern and yeah so later. we’ll take a look at some. chart examples uh you realize when it comes to. the uh. the market construction area worth entry. set off and stuff like that but for now.
Let’s do a quick. recap so i do know i’ve coated so much so. primary. bear in mind market structure it tells you. what to do should you be on the lookout for. buying opportunities. promoting opportunities or to stay out of. the markets then we’ve space of value. which tells you realize where to enter a. trade you know. where and finally the thing that we simply. lined entry trigger. tells you when to enter a commerce. and by the way when you’re having fun with this. training thus far smash the thumbs up. button. in case you are not then hit subscribe and. then smash the thumbs up button. now transferring on let’s take a look at some real. world. buying and selling examples and to mix the. buying and selling strategies. strategies and ideas that you’ve. discovered proper and see how we are in a position to apply. it to the. real world of trading utilizing actual. chatting. examples so this is the chart of.
Dollar towards the south african lease as. you presumably can see over right here on. that is on the day by day time frame so first. and foremost let’s ask. ourselves what is the market structure. so after we are. trading the markets this is the primary. question that we need to ask ourselves. what’s the market construction this may. inform us you realize what to do whether to. be a buyer seller. or to remain out of the markets so when you. take a glance at this market structure we see a. series of lower highs. lower highs lower excessive and decrease low. decrease low. lower low so we can see that this market. the market construction is in a. downtrend second factor the realm of worth. let’s put it aov. is there an area of worth over here so. you know area of worth might be issues. like transferring common. assist resistance so from what i’m. seeing over here there. is an space of worth over here i can simply.
Use it this software over here. and to attract this space of resistance over. right here. i am going to just change this to black shade. okay so now we’ve an area of value. over right here so do we’ve a legitimate entry. trigger so bear in mind the candlestick. module. or section that we simply coated this. over here appears like a. bearish engulfing pattern all proper so. let’s. call it a bearish engulfing sample so. from the seems of it right we’ve a. numerous. issue right working in our favor number. one the market construction is within the. downtrend. area of value the price is at resistance. our entry trigger we now have. a bearish engulfing sample that’s being. formed so on this case. we can look for a short trade right to. shop this market in expectation of. decrease prices and of course right this is. clearly a cherry choose chart on this case. the worth you know.
Did when in our favor. okay so now transferring on let us take a glance at. another trading example proper utilizing the. market construction space of value and. candlestick patterns that you’ve just. learned and you realize use it to assist you. make a trading determination to to know. whether or not to buy. or promote so again let’s revisit proper. what we’ve learned primary ask. ourselves what’s the market construction. of this currency pair this forex pair. is new zealand yen. on the eight hour timeframe so market. structure as you possibly can see this market. structure is in an uptrend. worth forming a collection of higher highs. and higher lows right here. greater low larger low higher high greater. high. okay what about area of worth can you. see it being. near any space of value so from what i am. seeing over right here the value. has retested this space of support right. assist support and support and also.
Previously this was really resistant. so. worth broke out of this swing excessive. resistance it turned support. now what about entry set off is there. any like signal entry set off that tells. us hey. it’s time to enter a commerce so if you. look at this candlestick sample right. this over right here. what does it look like to you this proper. i’d say it’s near a bullish. engulfing pattern however as per the. definition of bullish engulfing sample. this is not fairly one as a outcome of this. green candle did not cowl the physique proper. of this pink candle however that. isn’t going to stop us and say hey you. know this is not a bullish sign it is. not time to enter because. when you read the candlestick pattern if. you read the value part it’s telling. you that the consumers. they did proper shut higher for the day. and so they did present. you indicators of power proper closing near.
The highest of the day and nearly right. the previous day opening worth so it. closed pretty strongly so this. few causes right the market construction. the world of value and the entry set off. proper. is uh the story is telling you that hey. you can now search for. a buying alternative so what you are capable of do. is you’ll have the ability to enter on the subsequent day. open let’s say on this candle right here the. next day open which is on. this candle right here okay so now what about. cease loss now you know where to enter. which may be very. easy the next day open however cease loss. is something that i’ve not lined and i. want to. speak about in this uh this example right here. because it’s quite easy. so in relation to stoploss right you. wish to set your stoploss. at a degree which invalidates your. trading setup so what i imply by this so. for this specific trading setup that.
You’re trading you are buying and selling. is you understand in the direction of the. pattern uptrend and. buying near an area of support so this. implies that if the price. breaks under the pawn then it means your. socalled speculation right is incorrect. proper as a result of this is the world of. assist that you simply expect. the worth to carry if the worth breaks. under this space of assist and clearly. this socalled concept this speculation. that he had that this trade might hit. move larger. is clearly mistaken and also you need to exit. your commerce so to do this right it is a. quite simple. what you need to do is to set your cease. loss at a stage proper which will. socalled. break assist so when you take a look at this. right clearly you understand wherever from you. know 72. 50 or below right at this stage clearly. clearly if the value breaks down and he. hit this level this space of support.
Is broken and you need to exit your. commerce however so is there a objective means. you realize to set your cease loss as a substitute. of just blindly you know placing it at. some. stage that looks like you understand distant. from help and the answer is after all. sure proper and to do that you should use an. indicator called the common true vary. so over here i’ve proven you this. indicator under but i’ll present you where. to get it simply. go to indicator tab search atr average. to vary. it will come out as this one over right here. the settings i like to make use of is 20 interval. atr using sma so that is just my. desire over here. and as you’ll find a way to see proper now the atr. worth is about 0.32 about 32 pips so. what this tells you is that on this time. body. for new zealand yen on the eight hour. time-frame during the last. 20 candles proper this foreign money pair.
Moves a mean of about 32. pips on common i am not saying every. single cannon but each single candle. but on average over the past 20 candles. or so. this currency pair has moved about 32. pips so what this implies is that you could. really use this value. right and give it some buffer proper to. set your stop loss beneath. help so let’s say for instance the. lows of assist is at this level over. right here. what you can do is take this stage and. minus let’s say this stage is x. right and also you minus this atr worth this. one atr worth. okay so one atr is equal to 32 pips. right and for instance you get the worth of. y. so let’s say y is someplace about right here. this proper could be your stoploss and. it is an objective way to set your. stoploss based on the. volatility of the market since atr. indicator you understand. takes under consideration the volatility of the.
Market so let me walk you through how to. truly set your stoploss so what you. wish to do is to search out out what’s this. low of assist so on this case on the. low of support the worth is on this. candle here and. the value is about from what i’m seeing. over right here it is. 72 and 72.seventy two so that you simply take a glance at this l. value which is the low of the candle and. you can see it is about seven. seven two dot seven two so what i’m. gonna do is take seven two dot seven two. minus thirty two pips sorry seven two. dot seven. two and a minus thirty two pips which is. zero level. three two that is going to provide me a. worth of about seventy two.4. am i right okay so what i will do is i. will set my stop loss at this degree. at 72.4 change this to price so you’ll find a way to. see it better. and your cease loss might be at 72.four. okay in order you’ll have the ability to see over right here i’ll.
Show you the place your entry point entry. point is on the following day open the candle. i will put it in green. so you can see it green okay and there. you might have it right so this is. this candle right here this candle right here the. opening value is where you. look to purchase this fee level here is your. cease loss so now let’s take issues. a step further proper when you have a 10. 000. buying and selling account and also you wish to raise. one p.c threat. on each commerce what number of models of latest. zealand yen can you purchase. aha okay so now what we have to do is to. again revisit the concepts that you have. realized so what you may do is. first and foremost measure the. the uh your entry worth to your. stoploss so your entry price for example. let’s make this extra exact for instance. your entry worth is at this. opening price of this candle which is. about 73.31 okay so.
I’m going to change this to 73.31 and. your stop loss is 72.4. so you’re taking seventy two.31 672.31. minus seventy two.4 that offers me a ninety one pip stop. loss 91 pips. okay so what do we do with this. info so how do i get seventy three.31 once more. the entry worth on this candle over here. the opening value is 73.31. cease loss at 72.4 which is this degree. right here minus one atr. and it offers us 72.four as our cease loss. and we take the entry price. minus your cease loss right and this is. your distance proper. in pips proper for stop loss so in other. words out of your entry worth. right here all the way in which right down to here is 91. pips so now the question is how. many models of latest zealand can we buy. such that we don’t lose more than one. p.c of our current of our account. so time to revisit your place sizing. so let’s go to this. so for instance currency pair is new.
Zealand kind in new zealand yen. account forex let’s keep it you know. as usd for example your account measurement is. ten thousand dollars. risking one % on every trade your. cease loss as mentioned earlier is about. ninety one pips click calculate it tells you. you could buy. 0.121 lot which is about 1.2. mini heaps okay so if you are going to. trade this you understand i hope it is a demo. account right. you ought to buy 0.121. regulation okay which is about 1.2. million lot does it make sense so you. can see that we now have you know. used a quantity of you understand ideas that. you have discovered earlier the market. construction space of value entry set off. then we discover methods to set our stock loss. we discover ways to calculate calculate the. optimal. position size proper such that we don’t. lose multiple percent. of our trading account as proven on this.
Position sizing calculator over right here. okay so how are you feeling do you are feeling. overwhelmed ah. there’s so much to cowl properly don’t be. as a result of. you understand if that is your first time you. know watching this video or you’re new. to foreign currency trading yes it is perfectly. normal to feel overwhelmed. and confused however this is nothing you. know new this is really all the subjects. that we’ve coated in the earlier half. of the video should you’re not sure you can. know just return watch by way of the. movies and to clarify you know on any. ideas. or strategies proper that’s unclear to. you so i will go through another. instance as a end result of that is so important. right understanding the the. place sizing the chance administration as. nicely you know how to research a chart. and you know how to mix all this. collectively and place a commerce.
So that you don’t blow up your buying and selling. account so let’s have a look at another. one utilizing the identical framework. so number one ask ourselves market. construction what is the market construction. of this forex pair so this is. dollar against the japanese yen eight. hour time frame market construction is. down i am just kidding it is up right. larger highs and higher lows larger. highs sorry sorry higher low. larger low larger low market structure. is up after which you’ve greater excessive. greater excessive larger excessive. area of value is the value close to an space. of worth as you’ll be able to see over here. it is at this earlier resistance. resistance which became assist and yes. this is an area of worth. and not simply then right we also have if. you pull out your 50 interval shifting. average right. this 50 interval moving average also. serves as an area of value we examined.
Once twice. three times after which fourth time over. right here so this is what we mean by. when we have like assist and the 50. period transferring common coming together. you understand from two separate area of worth. coming together at a. at an analogous area i call this uh stack. areas as a end result of you’ve multiple factors. coming collectively to work in your favor so. it is a stack area you’ve the aerial. worth of the 50 period moving average. as nicely as earlier resistance which. turned help. the third thing right do you have an. entry trigger so from the looks of. things. if you studied the bullish reversal. candlestick patterns earlier this isn’t. actually any. of the candlestick pattern which you. have learned however again the. memorizing of the candlestick sample. the name isn’t essential what’s. important is that you could see right.
Buyers stepping in right to push. and close higher it breaks and shut. above the 50 interval shifting average. looking at the vary of this candle is. fairly good and large as well and the. value is closed near the highs. so this tells you know the patrons are in. control right and managed to shut. proper close to the highs of this eight hour. timeframe so what we are able to do is once more. uh to me it is a valid trading setup. and you may look to. buy so for instance you purchase on the following. day’s open. opening value of this candle over here. so now what about stop loss so once more. cease loss we wish to set it. at a degree which invalidates our trading. setup so our space of worth. is over here this previous previous. resistance which became. assist okay we want to set our stop. loss right a distance. under assist we do not just wish to set.
It smack below support as a result of. like for instance that is directly over. here because the value will simply come. down spike rate after which continue greater. so. if you set your stop loss slightly below it. this could occur to you proper. pretty often and it sucks so for this reason. i recommend proper. discovering the low of support proper and. then just minusing off one atr for it so. on this case one atr it tells you it is. about 34 pips. so what’s left so that you just can do right now. is to seek out out what is the low of assist. the low of help is once more right let me. have a look at this candle as the low. it’s about one zero eight let’s make it. one zero 9. as proven over here right is the low the. low help is about one. zero 9 so i will take one zero. 9 minus thirty 4 pips again. utilizing my trusty calculator one zero 9. minus 34 pip.
It gives me 108.66 so this tells me it. would possibly stop extra so it ought to be at. 108.66 i will change this to rain. i am going to also change the. coordinates. to 108.66. okay this is my stoploss degree. nice so now i need to take issues. a step further right you know the way to set. your stoploss you know your entry is at. this. this worth over right here okay let me just. change this to green about here. entry value is like this candle open. which is about. 109.88 okay let me just change this to. 109.88 so another factor to. to talk about is your target so so far. up to now we’ve talked about. the buying and selling setup right market construction. area of value entry set off to know when. exactly to enter a commerce. i shared with you how to set a proper. stoploss so you do not get stopped out. too early and the ultimate element that i. want to add as properly is to.
Where to take earnings proper if the. market strikes in your favor so coming. from let’s say a swing buying and selling. perspective. and keep in mind there are many ways to. take profits i will share with you. one methodology which. is what we name swing trading which is. in essence right just capturing one. swing out there so that is like. one swing proper from this retracement. then we pull up one swing. this is one swing this is uh one other. swing so. principally one transfer in the market i’m. going to share with you how to do that. so to seize one swing in the market we. normally want to set our goal revenue. at earlier than proper earlier swing highs are. low out there so you realize what’s. swing right this is our swing point. swing high. swing high swing low swing low so when you. are lengthy proper you need to exit proper. before. the closest swing high as a outcome of that is.
Where potential selling pressure could. come in. you realize and you know push the worth. decrease so that you’re gonna set your target. earlier than it. so when it comes to goal i would say a. reasonable target might be at this. worth point over here earlier than this. bear in mind this over right here. is an space on your chart not a line so. don’t set your. target proper simply you understand one bit under. this heist as a outcome of keep in mind it is an space. the worth may not get to that top proper. before it starts to reverse it might. simply you know. come close into that area does not hit. the highs does not hit these highs over. here and then begins to break down so if. you are too like you understand greedy if you. take revenue you set it at these highs. over here. and even over here you know you make. troublesome for the market you know. to provide you a revenue so be reasonable.
With your targets. so my advice is to set it earlier than. the swing high so let’s say we set it. someplace. about here proper this i’d say it is. cheap and let’s change this to blue. shade. okay so for instance our target is at let’s. put it at a number that is straightforward to. perceive. 107 dot for instance seven three seven two. okay. okay so now if you look at this proper. now you’ll find a way to see that. the place is your entry value which is that this. green line over right here. the place is your stop loss this red line. over right here where is your. goal which is this blue line over here. so now again let’s revisit you understand. position sizing since that’s so. necessary proper that’s what. keeps your account intact let’s discover out. right. the size of our stop loss so basically. from entry price to your cease loss right. what is this. distance over here so again simply take.
The entry worth minus. the stop loss so what you can do is you. can pause this video and do the math. with me and see whether you get the. answer right. so i’m going to take 109.88. minus 108.66. all right so principally i am considering this. green number minus this fee quantity it. offers me about. 122 pips. okay that’s the distance of my stoploss. so in essence from right here to here is 122. pips. so now let’s use this number and find. out how many. models of dollar in opposition to the japanese yen. can we buy such that you understand. we uh we will you understand still adhere to. our danger administration. so to try this simply go to search for dollar. yen this is the currency pair. you’re buying and selling okay for instance your. account forex is funded in us dollar. as properly. account dimension for instance now you’re a. baller right hundred thousand models your. commerce i imply your account size is.
Hundred thousand dollars. and for instance you might be nonetheless the identical you. know prudent dealer you still danger one. percent on that trade well carried out. stop losses 122 pips as we’ve. mentioned earlier things about one two. two if i am not mistaken here it is. then you definitely’re simply gonna click calculate. and it tells you that you could purchase now. zero level eight 9 nine commonplace lot. that is equal to about eight level. nine i would say 9 mini tons right. you just rounded up it’s about 9 mini. lots or 0.9 normal lot so. in other phrases okay if you have a. hundred thousand dollars account and. you are risking one p.c. of that account for example one % is. a thousand dollars of your account. and also you’re trading this forex pair. dollar towards the japanese yen. your stoploss is 122 pips okay. what number of models of this currency are you capable to.
Buy and according to that. uh danger danger administration or somewhat. position sizing calculator you noticed. earlier it is about zero.9. standard lot or 9 mini lots it is. really 0.899. i just rounded up to make my life easier. in order that’s how you you realize combine all. these different uh. elements collectively this concept. strategies prefer to make sense right out. of. your foreign foreign money trading career. so let’s now take things one step even. further okay so that is actually. stuff we’ve covered earlier i am just. revising it so we’re going to take. issues a step additional as a outcome of. one factor that you simply won’t discover if. you have a glance at this hey rayner. that is my entry value that is my. stoploss. and that is my goal it appears that my. stoploss over here. okay let’s name it sl stoploss is type. of smaller. than my profit target proper if i just. pull it out let’s name it tb.
Target profit my stoploss is wider than. my goal profit then if you. are considering alongside those strains you are. absolutely correct you can really use. a device. like this over here okay just use the. long position one that will help you access. right your danger to reward ratio so just. pull this tool out proper simply click this. one. choose lengthy and if you’re going to click on. let’s say click on this green line this. thing will come out. so the way in which we will do it’s that. we’re going to modify this factor proper. such that this stage here is at our stop. loss. okay and this one over right here is at our. goal. the blue line and this over here. is smack at our entry level which is. nice and you’ll see something very. interesting what it is telling you how. you actually made use of this software. is that’s you could see you’re. risking 122.2 pips proper which is your.
Stoploss. 122 pips and this over right here eighty four.7. is your goal revenue what you may have. targeted which is about 84 pips. so in different phrases should you look from a. danger to reward standpoint. you may be risking one dollar to. probably make again. 69 cents as proven over right here sixty nine cents. how do i know sixty nine you’ll have the ability to see over right here. danger to reward ratio zero.69 you are risking. one dollar. to make 69 cents so it’s not exactly. very favorable and most merchants will say. uh that is not really a commerce i need to. take and i can perfectly perceive that. so what are you able to do. to make this danger to reward in your. trade more attractive. so now there are a few things that you just. can do primary you presumably can of course. shift your target. up larger okay to to a degree the place you. know okay. you’re risking a greenback and make a. dollar 37 cents again in return but. you realize to place your goal over here.
It’s a little bit of a i won’t say it’s a. stretch proper since it is a trending. market however what has to happen is that. the market right has to break above this. highs to get to your goal so that’s. like type of like. a little bit more work proper for the. market to go through to reach your. target and i’ll say that is a lower. probability. proper because the market has to break. through above this swing high however once more. proper within the context of this. worth action that we are seeing i. would not say that it’s impossible. as a result of we’re in any case in an uptrend. but if it’s a range market proper i might. say clearly a very bad. determination so for example we do not touch the. target proper let’s maintain the target the. same. for instance round this stage over here. okay that is our target. proper so what else can we do to make the. risk to reward.
More favorable what we are able to do is again. we can shift our stop loss we can make. it tighter proper shift it up higher. however again we don’t need to mess with our. stoploss as a result of our stop-loss is at a. stage. where it reaches right it will. invalidate our trading setup you do not. need to exit the trade. whereas the setup continues to be there it. would not quite make sense proper you need. to be buying and support and help is. not damaged but you already exit your. commerce. that’s that’s not very you know uh clever. so the final thing that you could nonetheless do. is to. modify right your entry point so you. know your entry level right now is about. 109.88 which is that this green line over. right here that is your entry level. what you are able to do is to use a buy limit. order. see this is among the orders that we. have talked about earlier to make use of a buy. depart so as.
To enter at a extra favorable price so. what if we. shift right our entry worth to somewhere. about right here at for instance. 109.5 okay so let me just. simply just double click this let’s say. our entry value nows at 109.5. our take revenue stage the worth we keep. it unchanged. our stoploss stage will maintain it. unchanged as nicely and we click. okay so now if you look. at your risk to reward proper now you can. see now you’re risking a greenback. to potentially make 1.45 cents. as shown over right here one dollar and forty five. cents now your danger to reward right. let me just put it one over right here your. threat reward right has been now. improved by using a purchase restrict order of. course every little thing has its pros and cons. so let me share with you the downside to. using this method. should you go with a buy restrict order your. order might not get crammed and you realize.
If the market continues greater. you’ll have you understand missed the trade. however in this case right uh after all it’s. a cherry choose chart you’d have you. know gotten crammed. and entered you know at a more favorable. price as you can see. this market did deep down decrease and. providing you with a greater entry worth and now. it is beginning to kind of you know hit. larger. so that is another technique that you. can use in your individual trading if. at as of right now right when you’re. looking at your entry stops and goal. the danger to reward. doesn’t quite make sense you’ll have the ability to. think about using a buy restrict order to get. in. at a greater worth but a quantity of things that. i would caution you is to not modify. your original stoploss as a result of that is. at a degree right that is plan right to. set right the place if the worth reaches it. it will invalidate your trading setup.
And you wish to get out of it don’t make. it too tight as a end result of generally. a slight spike proper would possibly get you. stopped out of your commerce in case your. stoploss is merely too tight. as for target this there’s some. discretion over here since as you have. seen right that is a trending market. it isn’t. farfetched to say that hey maybe i can. move my target up slightly higher. someplace about right here. since it is a trending market the price. tends to interrupt above the earlier excessive. that’s truthful enough for that i’d say. it’s a fair call. but one thing to to notice that if if. right if the market right now is in the. range market. all proper and you buy for instance. somewhere over right here and your danger to. reward. isn’t very good don’t set your goal. above the highs of this. resistance as a outcome of you are expecting the. price to interrupt above that resistance.
To offer you this target that you have got. over here just so your threat to reward. is sensible and this is really. a really dangerous idea if you are going to shift. your goal to even above resistance however. for this context that we’re talking. about here in this uptrend i would say. that could probably be a completely you understand honest. name okay so are you still with me. proper i hope so and if you need to smash. the thumbs up button but when your mind. your soul is wandering elsewhere then. hit the subscribe button. okay so now let’s take a look at another. example this is aussie in opposition to the swiss. franc. as you can see over right here and this is the. eight hour time frame as nicely. so you understand you must be a pro already. by now when you even know what i am going. to say very first thing first. market construction what is this market. structure. from the seems of issues this market is.
In an uptrend larger excessive. and higher low greater high larger excessive. greater high greater high. and better low higher low higher low. greater low. so what about space of value so clearly. this one right here you can see that this. market is at this space of. help entry set off do we’ve any. valid entry trigger to enter a commerce. while we have this good. bullish engulfing sample okay so this. this candle. has reversed and closed above the. previous day. closing or quite the highs of the. earlier day closing now close to the highs. of this. day so that is bullish great so what we. can do is that we’ve a you realize number. of things working in our favor. uh market construction is up trading from. an area of worth and. a valid entry set off to go long let’s. see we overlay for 50 ma. okay not too unhealthy as nicely we even have. the 50 interval moving common you understand in.
Our favor tested once. twice and now right here for third time again. so now. the place can we enter a trade the following day. open so now subsequent day wanting pretty good. as nicely we enter on the subsequent stage. open okay so what about stop loss i pull. out the atr indicator. you’ll find a way to see the cease loss all proper the. atr value is about 0.003 which is about. 30. pips so again although to method to read this. stoploss indicator is similar. as you’re studying a pip proper you realize a. fourth decimal place similar idea over. right here. so now let’s find out what is the low of. this assist right so we will set a. correct stop loss level. so the low over here is about zero.6818. so 0.6818. minus 30. that offers us about zero.6788. okay so our stoploss shall be at 0.6788. modifications to fee 6788. great entry value pretty straightforward. we enter on this uh. opening worth of this candle which is.
About right here. i’ll change this to green so we will mark. as the entry value that we enter. so now i’m not going to undergo the. position sizing as a result of you should be a. pro by now already as for target it’s. going to be fairly straightforward your. goal. may set it just before this swing high. so let’s say someplace about right here. okay i’ll change this to blue okay and. that’s a potential. stage right the place you should use to set. your target revenue so as. of right now when you simply eyeball you’ll have the ability to. see that your threat to reward you’re. probably risking a dollar to make like. eighty cents or so. and as you know you can use a purchase limit. order to enhance your risk to reward on. the commerce. and you realize to handle your danger you possibly can. use a place sizing calculator. to know how many units of foreign money you. can purchase right such that.
You danger like for example one percent of. your account so that’s something that. we now have carried out through. beforehand as nicely so one thing to point. out is that uh for this explicit. example i need to show you. how a dropping trade looks like in this. case the market you understand did went in our. favor. somewhat bit you presumably can see that it goes up. right here. midway by way of to our goal over here. earlier than it starts to. reverse after which stop us out for a loss. of this commerce so this trade clearly is a. shedding trade it hits our cease loss. and solely after that right you probably can see. this trade proceed. to rally and break out greater so this. will happen proper in your buying and selling career. i. assure you i guarantee you a affirm. plus chop right irrespective of. how good a buying and selling setup seems like no. matter how correct stoploss how good of. a stoploss that you’ve got got set now under.
The. the price construction below support the. market proper sometimes will simply you. know play methods on you you will still. hit your stoploss all right and to make. you are feeling. the anguish the pain only to reverse. again and you understand go. a lot in your favor right and and to. you realize. make you’re feeling like a loser so that will. occur be prepared for it and this. instance is basically. clearly one that it and the way do i know. that it’s as a end result of this can be a. it is a trait i took right and it. happened to me. okay so transferring on right let’s have a. look at a number of. buying and selling examples and this time round it. will be somewhat bit totally different it’ll. be traits that i will. not want to commerce and once more we’ll use. the identical formula we are going to use the same. uh ideas that we’ve talked about. earlier we have a look on the market. construction. area of worth and the entry set off so.
First one. aussie against the japanese yen so if. you look at this chart. on this time frame the daily timeframe. you possibly can see that the market construction is. up great so what’s going to we can we search for. shopping for alternatives second factor where. is the world of value so on this chart. and on this timeframe i see that the. space of worth is across the 82. worth level somewhere here so proper now. the worth is kind of like within the center. of. i’d say nowhere so it is not close to any. space of worth i will give it a cross. entry trigger is there any legitimate entry. trigger at this time limit. nicely since it’s not even at an space of. worth i would not. really care if it’s there’s an entry. trigger or not as a end result of i’m not buying and selling. from an area of value and right now the. price the market is still open it isn’t. closed but so again. uh entry set off is just about i will say.
No as properly since. this market is currently still uh shifting. and not closed yet. in order you can see this is clearly a. commerce that i do not need to commerce yes. market structure is up it’s in an. uptrend but. it isn’t from an space of value and there. is not any legitimate entry set off for me. to pull a commerce second one dollar. towards the norwegian. chrono so same similar thing let’s have a. have a look at this. market structure you can see that this. one right here is in the downtrend. collection of decrease highs and lower lows. downtrend. space of worth is there’s it near any. area of worth so once more space worth i. would say somewhere across the eight.70. worth level someplace right here. worth is over here at this time limit. so i’ll say no. entry trigger sensible if it’s not at an. space of worth then actually usually i. do not even trouble trying at the entry. trigger but for the sake of for instance.
This training we take a look at the entry. trigger we see there was a shooting. start on the previous. day right so there’s an entry set off. however because. once more it’s not from an area of worth i. would select to skip this trade. altogether so hopefully by now you can. understand. how market structure space of value and. the entry trigger offer you a good idea. to hey you know whether or not ought to i be. taking a commerce. or not okay so at this point i am positive. you understand you have realized. a fun proper you covered forex trading. fundamentals risk management some easy. numbers to run through and the final. section was really more of a. price motion trading right studying. about market structure space of value. support resistance candlestick patterns. and stuff like that and should you’re. having fun with the training or when you’ve. enjoyed it up to now smash the thumbs up.
Button if not then hit the subscribe. and yeah so for those of you who needs. to study extra about value part. buying and selling so basically the stuff that we. have just lined right the chart. analysis. the help resistance the candlestick. patterns and whatnot if you wish to dive. deeper into it then i’ve really got. this e-book over here that. will meet your wants it is called price. motion buying and selling secrets and techniques you may get it on. this hyperlink over here i am going to put this hyperlink. under. and what’s worth motion trading secret. so this is actually a bodily colour. trading guide proper. that will be shipped out to you and in. this book proper you may learn. extra about value motion trading you’ll. learn to you realize draw help. resistance the means to inform when help. resistance will break we dive deep into. candlestick patterns chart evaluation.
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