Web28/1/ · High probability trading — using Stochastic to identify areas of value A big mistake most traders make is, going short just because the price is overbought, or WebHigh Probability Trading Strategies WebThe signals are high probability because the signal appears whenever the strong breakout from support/resistance levels AND high-probability price action patterns. This indicator WebWe waiit untl our zigzag pointer appears below in the 30M TF. 2. We check the 1Hr Chart to see if there is agreement. 3. We also look at the 4HR TF to make sure they agree. Web1/3/ · Dynamic Trader (High probability trading strategies) Lately i'm reading (studying) the book of Robert C. Miner "High probability trading strategies". I must say ... read more
For every trendline break that follows a trend reversal, I can show you a trendline break fake-out that is followed by a continuation of the prior trend. Moving average crossovers are notorious for false trend reversal signals. In fact, most methods of identifying a price trend are doomed to failure for practical trade strategies with as many false reversal signals as confirmed ones.
This is a bold statement, but I believe it is true. I defy any trading educator to provide evidence that his so- called trend indicator consistently provides an accurate signal of trend position and trend reversal in a timely manner that a trader can take advantage of. How can I make this statement?
What does a trendline, channel lines, moving average, or other indicator represent? Every moving average, channel, or indicator is based on historic price data. It can only represent what has happened or what is the current market position relative to the lookback period. It has little predictive value in and of itself. It will always be a lagging indicator of the trend position, never a leading indicator of what is likely to happen in the future. However, let me make you this promise and this challenge.
Name a trend in- dicator and for any market or any time frame that you are given an example of how it defines the trend, I will show you two examples where it quickly failed.
Every one of these techniques, whether a trendline, volatility channel, moving aver- age crossover, or momentum indicator, can be a useful part of a comprehensive trading plan, but none of them alone will be of much use in and of itself to identify the probable trend direction for a future period.
Over and over again, you will find that price rever- sals do not coincide with the trend indicator reversals. As I mentioned earlier, for every after-the-fact, well-chosen example given, I will quickly find at least two where the trend indicator did not work to identify a trend reversal in a timely manner. However, there is a way to use some of these indicators to identify high probability trade setups.
In this chapter, you will learn how to use just about any momentum indicator as a trend indicator for trade direction in a unique but very logical way that you have probably not been taught before. We are not concerned with identifying the exact price-swing high or low of a trend. Rather, we are concerned with identifying trades in the direction of the trend, including near the early stages of the trend and avoiding the later stages.
The Multiple Time Frame Momentum Strategy that you are about to learn is the most powerful strategy to filter any market for trade direction and trade execution setups.
Not only do I believe the Multiple Time Frame Momentum Strategy is the best use of an indicator for trading strategies, I believe it is the only practical indicator strategy for real-world trading. I use the term capital exposure to describe what many trade educators call risk. Risk is the probability of an event happening. Capital exposure is the amount of money capital that may be lost if a market moves against you.
I have much more to say about capital exposure later in the book. In the world of trading, there are hundreds of momentum indicators also called oscil- lators.
Most of these indicators use the same information, the open-high-low-close of a price bar, and represent about the same thing, the rate-of-change of price. There is nothing mysterious, magical, or unique about this. All price indicators look back over a given period, called the lookback period , crunch the price data, and compare the recent price position with the price position of the lookback period.
Different indicators manip- ulate and display the output differently, but all price-based indicators represent about the same thing: the rate-of-change or how fast the price trend is moving. The indicator reversals represent the change in momentum—the increase or decrease in the rate-of- change of the price trend. That is why you can use almost any price based indicator for the Multiple Time Frame Momentum Strategy you will learn in this chapter. The first and most basic concept is this: Momentum indicators do not represent price trends.
Momentum indicators represent momentum trends. If it did, this book would be about three pages long because all we would have to do is reverse our trade position each time a momentum indicator makes a reversal, and we would compound money faster than rabbits on Viagra can reproduce.
Unfortunately, it is not that easy. Price and momentum do not always trend together. For example, a momentum indicator may make a bearish reversal and decline while the price trend continues to advance. How can it do this? The rate-of-change of the price trend is decreasing even though price continues to advance. The bullish trend is just slowing down, so the momentum indicator is bearish even though the price trend con- tinues to be bullish.
The outcome: The price trend and momentum trend run opposite of each other. Let me repeat this basic and very important concept about momentum indicators: Momentum indicators represent momentum trends, not price trends.
Never expect price to reverse when the indicator makes a reversal. Often both price and momentum reverse together, but sometimes they will diverge because the price trend is only slowing down, forcing the indicator to reverse. So let me repeat it one more time: Momentum indicators represent momen- tum trends, not price trends.
Price and momentum may not trend in the same direction. Not every momentum reversal will coincide with a price reversal. We can only make money on price trends, at least until someone comes up with a momentum contract to trade! Even though momentum and price trends often do not move in the same direction, you will soon learn how we can use momentum trends in a simple and practical way as the primary indicator of trade direction and trade execution setups.
You will also learn how, by incorporating dual time frame momentum trends in a comprehensive trading plan that also includes the time, price, and pattern position of a market, you can identify whether the market is at or very near a price trend reversal. For at least the first 10 years I traded, I never used an indicator. I was basically a pure chartist using time, price and pattern position to identify trade setups and targets. My strategy was based on Gann, Elliott, and Fibonacci.
In , I released what I believe was the first futures trading home study course, called the W. Gann Home Study Trading Course , based on Gann, Elliott, and Fibonacci trade strategies. This course is no longer available. I studied a lot about indicators and discovered I could always find an indicator or make a change in a lookback period or other setting for the indicator to confirm whatever price trend bias I had. Around the mids, at the prompting of one of my students, I began to look at how a momentum indicator could help confirm the pattern and price position.
It took a couple of years to work out practical strategies for a momentum indicator to be a part of a real- world trading plan. Then, several years ago, I started working with momentum strategies using multiple time frames and was blown away with how valuable they could be as part of the trading plan, to identify trade direction and trade execution and to confirm a potential price reversal at price or time targets.
Like everything I teach in this book, these strategies can be used for any time frame and any market, from day to position trading. I first teach the concept and application of a momentum strategy using two time frames. Later I give examples of how to use more than two time frames, but two are all you need. You will learn how to integrate this strategy into your trade plan. It is that simple and logical.
If you are a position trader looking for trades that last from several weeks to months, you will use weekly and daily momentum trends. If you are a swing trader looking for trades that last a few days, you will use daily and hourly data. Day traders will probably use minute and minute data or even smaller time frames. We know the momentum trend will not always be in the direction of the price trend. But a good indicator with the right lookback period will usually trend in the direction of price and reverse within a very few bars of the price reversal.
When price and momentum diverge, as in the case of a bullish price trend and bearish momentum trend, the larger time frame bearish momentum will keep us out of trades when the price trend is slowing down. The specific trade strategies you will learn in a later chapter will usually keep you out of a trade when the momentum trend is diverging with the price trend, which, at the least, will limit losses on losing trades.
And remember, you will have losses, so a trade strategy that minimizes losses on losing trades is essential for trading success. Dual Time Frame DTF Momentum Rule 1: Only trade in the direction of the larger time frame momentum trend unless the momentum position is overbought or oversold.
The larger time frame momentum position identifies the trade direction. It does not signal that a trade should be executed; it only signals the direction of a possible trade, long or short. The smaller time frame momentum reversals are the specific signal that must be made before the trade is even considered.
The smaller time frame momentum reversal does not execute the trade, but completes the conditions that must be in place before a trade execution may be considered.
The key to momentum strategies is to use at least two time frames—a larger time frame to identify trade direction, and a smaller time frame for trade execution setups. We only want to take a trade if at least two time frames of momentum are moving in the same direction.
That ups the odds big-time for the trade to be successful. If a trader only considers the momentum position of one time frame, he is at a great disadvantage. Momentum may trend consistently without making any reversals, but dur- ing that momentum trend, price will usually make corrections, sometimes sizable ones, without the momentum making a reversal.
Or the speed of the price trend will ebb and flow without causing a momentum reversal. The trend line is the decision spot. Price can then show 2 different reactions via candlesticks. Hence the candlestick pattern is the trigger:.
Other sweet spots can be identified by using the concepts of impulse and correction. Price is always in either of the two and it depends on the strategy for which one is better for you. For my own trading, I prefer catching the completion of a correction, the middle of an impulse and also the start of the impulse.
I try to avoid trading the end of the impulse, the start of the correction, and the middle of the correction. Our top favorite day trading setups include setups that have been the most profitable for us like:. The basic premise behind the breakout setup is to enter right when the price breaks a key level.
Now, a key level can be anything from simple support or resistance level, a big round number, a moving average, previous swing high or swing low, etc. A recurring intraday setup you can use every single day in the forex market is the London range breakout setup. You can learn more about this setup here: How to Trade the London Breakout Strategy with One Trick.
Usually, at the start of the London and New York session, the forex market will start with strong impulsive waves. But, since nothing moves in a straight line, the price will often pull back giving us another opportunity to enter the market.
Your entry with this setup is going to be once the pullback starts to fade away and the chart prints the first red candle for bullish pullbacks or green candle for bearish pullback. Catching these types of scalping setups only work if you already have established a directional bias. If you want to learn more about how to establish a directional bias check our guide here: OHL Strategy for Day Trading. Pivot Points is a great indicator to gauge dynamic support and resistance levels.
One of the easiest trade setups using pivot points is to buy at support and sell at resistance. When the price interacts with these pivot points it can sometimes produce a decent amount of momentum for a nice quick profit. If you want to learn the basics of pivot points and how not to use them, check our guide here: How to Trade with Pivot Points the Right Way. A trade setup represents the total number of trading conditions that need to be satisfied before you consider entering a trade. The average income of a day trader depends on the account balance and position size per trade.
The best option trading strategies is the long Call and long Put strategies. The long call strategy profits if the stock price is above the strike price at expiration. At the same time, the long put strategy profits when the stock price is below the strike price before the expiration.
Finding a good trade setup comes down to your ability to correctly read the price action. A rule-based trading process is the best way to look after a trade setup. The best setup for trading is the one that works best for you. Something that might work for one trader might not work for another trader. I use the concepts of decision spots, triggers, confluence, and wide-open space to judge the best and highest probability setups.
We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more. Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow.
In binary trading there are high level of risk which you must be willing to accept in order to be able to invest and trade to make winnings,today I thank God that I am an expert in binary trading who has taught others the strategies on binary and forex trade in order to win trade and am still willing to teach with prooves whosoever is interested to know how I made it big in binary and forex trading. you can contact me via Jerckg gmail. This step-by-step guide will show you an easy way to trade with the MACD indicator.
Get the free guide by entering your email now! Please log in again. The login page will open in a new tab. After logging in you can close it and return to this page. High Probability Trade Setups: 4 Methods by TradingStrategyGuides Last updated Nov 1, All Strategies , Forex Basics , Forex Strategies , Trading Psychology , Trading Survival Skills 7 comments.
See below: Table of Contents hide. WkYxnTGh says:. September 25, at pm. Jerck says:. August 30, at pm. XbictIRh says:. November 30, at am. dew says:.
Pairs: Majors. Timeframes 30min or higher. Zig Zag. Non lag Zig zag. Zig Zag Pointer. Stochastics setting 14,3,3. Daiy Average Range. Explanation Of the indicators.
The zig zag indicator is used to ascertain tops and bottoms, highs and lows and possible reversal turning points. It is also used to identify wave patterns and trends. Most people do not use it because of its lagging nature. However it is a very useful tool when optimized with several settings to filter out the false highs and lows.
We will be using this indicator to ascertain tops and bottoms in a very unique and different way. Non lag Zgzag. The non lag ziigzag is simply a form of the normal zigzag with dfferent setting to filter. out false highs and lows.
Zig zag Pointer. The pointer is used to corroborate the nonlag zigzag and confirm entry points. Used to measure the overbought and oversold. We also use it to confirm the highs and. lows identified by our zigzags. Daily Average Range. This visual indicator smply helps us to see the averange range we can expect the pair to move for the day so that we can know where to place our stops and targets. We use this to mark support and resistance from our charts. We only place trades if price is around support and resistance.
Ok heres what we do. We are waiting for all the indicators to align themselves in the 4. Time frames. For Long.
We waiit untl our zigzag pointer appears below in the 30M TF. We check the 1Hr Chart to see if there is agreement. We also look at the 4HR TF to make sure they agree. The stoch must be in the oversold area in all TFs. We also look at the daily to see the nature of the trade. For High Probabiility Trades.
set our stop loss 30pips. Our TP 70 PIPS and SL 50 pips in both. For Extreme High Probabilty Trades. All four TFs 30M, 1HR, 4HR and Daily Agree. If they do we go for pips and SL 85 pips. For Low Probability Trades Trades Wi th Higher Risk. Two TFs agree 30M, 1HR. If they do we go for 30 pips profiit. SL 20Pips. For Shorts. All Opposite Long rules. I like the trades with Extreme High Probability Set Ups and High Probabilty.
When they. I stake my money big time. Share your opinion, can help everyone to understand the forex strategy. Write a comment. Home Page Tools Binary Options Trading Strategies Binary Options Strategies II Binary Options Strategies III Scalping Forex Strategies Scalping Forex Strategies II Scalping Forex Strategies III Scalping System IV Scalping Forex Strategies V Trend following Forex Strategies Trend Following Forex Strategies II Volatility Forex Strategies Bollinger Bands Forex Strategies Breakout Forex Strategies Patterns Forex Strategies Pivot Forex Strategies Forex Strategies Based on Indicators Forex strategies based on Indicators 2 Support and Resistance Forex Strategies Candlestick Forex Strategies Renko chart Forex strategies Metatrader Indicator MT4 Metatrader Indicator MT5 Metatrader Trading System MT5 Metatrader Trading System MT4 Metatrader Trading System II THV 3 Awesome , Accelerator and HMA Dynamic Channel, Contrarian Strategy.
txt Site map. Forex Trading System. Pairs: Majors Timeframes 30min or higher. Indicators Zig Zag Non lag Zig zag Zig Zag Pointer Stochastics setting 14,3,3 Daiy Average Range FiboPivot. Explanation Of the indicators Zig Zag The zig zag indicator is used to ascertain tops and bottoms, highs and lows and possible reversal turning points.
The non lag ziigzag is simply a form of the normal zigzag with dfferent setting to filter out false highs and lows Zig zag Pointer The pointer is used to corroborate the nonlag zigzag and confirm entry points Stochastics Used to measure the overbought and oversold. FibPivot We use this to mark support and resistance from our charts. Rules Ok heres what we do. We are waiting for all the indicators to align themselves in the 4 Time frames.
We also look at the 4HR TF to make sure they agree 4. The stoch must be in the oversold area in all TFs 5. We also look at the daily to see the nature of the trade 6. Our TP 70 PIPS and SL 50 pips in both For Extreme High Probabilty Trades All four TFs 30M, 1HR, 4HR and Daily Agree If they do we go for pips and SL 85 pips For Low Probability Trades Trades Wi th Higher Risk Two TFs agree 30M, 1HR. SL 20Pips For Shorts All Opposite Long rules Remarks I like the trades with Extreme High Probability Set Ups and High Probabilty.
WebHigh Probability Trading Strategies Web1/3/ · Dynamic Trader (High probability trading strategies) Lately i'm reading (studying) the book of Robert C. Miner "High probability trading strategies". I must say WebWe waiit untl our zigzag pointer appears below in the 30M TF. 2. We check the 1Hr Chart to see if there is agreement. 3. We also look at the 4HR TF to make sure they agree. Web28/1/ · High probability trading — using Stochastic to identify areas of value A big mistake most traders make is, going short just because the price is overbought, or WebThe signals are high probability because the signal appears whenever the strong breakout from support/resistance levels AND high-probability price action patterns. This indicator ... read more
Just sign up for it using the link above and you can download the pdf. A Forex strategy helps identify setups with a long-term edge because it allows traders to analyze the charts with a fixed process and rules. Have you traded it consistently for at least trades? It is helpful. This is fantastic. A momentum reversal is when the momentum indicator reverses from bullish to bearish or from bearish to bullish. If the price is above it, have a long bias and vice versa.Any advice. Warrior Trading Review March 16, Later in this chapter you will learn how to choose the best settings for any indicator for any market and time frame. Do you have a trading journal to record the stats? If you had taken every set-up you would be in right at the start of the trend even high probability trading strategies forex you would have your share losses getting there! Contents hide.