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Chapter 23, Part II. Buy or Sell? Page 5

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 23, 2013.

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Commander in Pips: See? It’s not so difficult. The major thing here is to understand why we need 2 or better 3 time frames to trade, since each time frame has its own purpose in our overall strategy. Let’s appoint that purpose in major rules, but before that I want to show you a small nuance that you’ve missed when making that trade. It could allow you to enter with more safety. Pay attention to hourly chart #9 – this is your entry in terms of the 60-min chart. See, your enter a bit for luck, since the trend holds bearish when you’ve entered the trade. Yes, you have reasons to enter – support of trend line, initial pullback and Stochastic on the 4-hour time frame, but the hourly trend has not supported that. So, you probably had some hesitation about will trend line hold or not, or, maybe, will the market show some fake out and touch your stop or not.


    Chart #9 | Your Enter at EUR/USD 60-min
    [​IMG]

    To prevent that, I want to show you another way to enter, that I use. Pay attention to chart #10:


    Chart #10 | Preferable way to enter at EUR/USD 60-min
    [​IMG]


    See – it’s safer to enter from nearest 0.382 Fib support when trend confirms your long trade. This eliminates any suspicions and indecision about fake outs or breakouts of trend line.

    Pipruit: Thank you Sir for that valuable add-on. I will remember that.​

    Commander in Pips: But all the other stuff you did very well. Nice work. Now let’s shift to rules…



    P.S. This lesson was written by Sive Morten, who has been working for a large European Bank since April of 2000, and is currently a supervisor of the bank's risk assessment department. Sive's knowledge of forex market and banking industry is vast and quite complete. If you have any specific questions about forex, banking industry, or any other financial instruments, please post them on the next page and Sive should answer soon.



    Note: FPA ranks are earned in the battles against scam, not in the classroom.
     
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