Summary of the Module
- Begin by identifying the appropriate support and resistance lines on a larger time
frame. Don’t forget to look at the daily time frame so you can see how the market is
moving. You can mark your lines by going to the h4 from the daily time frame. You
should use a line chart for this so that you can get a good overview. (I recommend
drawing these lines on the h4 or h1 charts.) - You return to the candlestick charts and double-check that your lines are correct; adjust them if necessary.
- Next, we’ll draw the support and resistance zones, which we prefer to do on an indecisive candle or a clear wick.
- Now that we’ve mapped everything out, we’ll see where we can find a possible entry.
(Either a Buy or a Sell Setup.)
- Now, all we have to do is wait until the price reaches the point where we believe an
entry is possible.
- After a clear rejection in the zone or a breakout/retest in the zone, we take an entry.
Wait patiently for the right opportunity. Otherwise, things could still go wrong, which
would be a pity!
- Set a reasonable stop loss once you’ve made a good entry. We’ve also talked about it
in previous lessons, so you should be fine.
- Stick to your strategy. If you want 10 pips, take them and exit the market; you’ve
already taken your piece of the pie. Grab your 20 and get out if 20 is what you want.
Things can quickly go wrong if you become too greedy. So, for each trade, make a
detailed plan!!!!
- Before you make an entry, remember to check the news. This can be seen, for
example, on www.forexfactory.com.
Is it still not working? After that, evaluate your trade. What went wrong, and where did it
go wrong? Frequently, you can see exactly where you went wrong. Remember that
even the best traders make mistakes and that we are all human. However, make sure to
eliminate as many errors as possible! So keep a record of every trade, good or bad, so
that you can improve over time.
Good luck, you’ll be able to do it!
