#Profitable Bullish Engulfing strategy for beginners

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How to Trade the Bullish Engulfing Pattern: Complete Guide with Strategies

In the world of candlestick trading, price action patterns offer invaluable insights into market sentiment and potential reversals. One of the most powerful and frequently observed reversal patterns is the Bullish Engulfing Pattern. This pattern signals a shift from bearish to bullish sentiment, often preceding a strong upward move. In this blog post, we’ll explore: What the Bullish Engulfing…

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ICFM Reveals Importance of Technical Analysis Like Never Before

In today’s fast-paced financial markets, understanding the importance of technical analysis is not just an advantage—it’s a necessity. Technical analysis allows traders and investors to assess market movements, predict trends, and make well-informed trading decisions using historical price data and chart patterns. At the forefront of this specialized skill training is ICFM INDIA, a premier institution that offers in-depth courses to help aspiring traders decode market signals through expert-guided technical analysis.

This article dives deep into why technical analysis matters, how it works, and how ICFM INDIA uniquely positions itself as the best provider of such education.

Why Technical Analysis is Essential in Trading

Technical analysis is the backbone of informed trading strategies across various financial instruments, including stocks, forex, and commodities. Unlike fundamental analysis, which focuses on the intrinsic value of an asset, technical analysis studies price movements, volume, and chart patterns to identify potential trade opportunities.

The importance of technical analysis lies in its ability to help traders spot market trends early, gauge momentum, and understand support and resistance zones. This predictive power is crucial for timing entry and exit points, reducing risks, and maximizing profits.

Whether you're a day trader, swing trader, or long-term investor, mastering technical analysis can significantly improve your market performance.

ICFM INDIA: Leading the Way in Technical Analysis Education

When it comes to mastering the importance of technical analysis, no institute does it better than ICFM INDIA. As a leading financial market education provider, ICFM INDIA offers a comprehensive technical analysis course that blends theory with hands-on training. The course is designed to equip learners with practical tools, real-time market experience, and professional mentorship.

What sets ICFM INDIA apart is its practical learning environment. Students learn to interpret candlestick patterns, analyze chart trends, utilize indicators like RSI, MACD, Bollinger Bands, and understand key technical setups. Moreover, live trading sessions ensure that students apply what they learn in real market conditions—bridging the gap between theory and practice.

Key Concepts Taught in ICFM INDIA’s Technical Analysis Course

The technical analysis course by ICFM INDIA is structured to cater to both beginners and intermediate-level traders. Some of the essential concepts covered include:

Candlestick charting: Understanding patterns such as Doji, Hammer, Engulfing, and more.

Trend lines and channels: Identifying bullish and bearish markets with precision.

Support and resistance: Recognizing psychological price levels for entry and exit.

Volume analysis: Gauging the strength behind market moves.

Technical indicators: Applying RSI, MACD, Stochastic, and other indicators effectively.

All these components are taught through real-time charts and case studies, ensuring students not only understand the concepts but also gain confidence in using them.

Real-Time Application and Strategy Building

A major reason for the importance of technical analysis is its ability to empower traders with strategies that are adaptable to any market condition. ICFM INDIA focuses heavily on strategy development. Students are taught to combine indicators, set stop losses, manage risk, and design personalized trading setups that align with their trading style.

By encouraging independent analysis, ICFM INDIA transforms students from passive learners into strategic traders who can respond to changing markets with confidence and agility.

Career Opportunities After Completing the Technical Analysis Course

Once you’ve understood the importance of technical analysis and completed the course at ICFM INDIA, a world of career opportunities opens up. You can pursue roles such as:

Technical Analyst in brokerage firms or research houses

Proprietary Trader in financial institutions

Financial Market Trainer or Educator

Independent Trader with freelance income potential

Portfolio Manager who relies on technical signals for entry/exit

These roles are in high demand, especially as the Indian financial markets continue to grow and attract more retail and institutional participants.

Why ICFM INDIA is the Right Choice for Aspiring Traders

While technical analysis courses are offered by many institutions, ICFM INDIA stands out due to its experience-driven approach, affordability, and industry relevance. Here’s why learners trust ICFM INDIA:

Certified and experienced mentors with real market exposure

Live trading sessions using real-time data

Lifetime access to study materials and recordings

Placement assistance for career-oriented individuals

Affordable pricing with premium-quality education

Students are not just taught technical tools—they're mentored to think like professional traders.

ICFM INDIA’s Commitment to Quality and Integrity

Another significant reason ICFM INDIA leads in teaching the importance of technical analysis is its commitment to quality. Unlike many short-term workshops that only scratch the surface, ICFM’s program is structured for complete understanding. Students go through tests, assignments, and charting practice regularly, ensuring they leave with actionable skills.

ICFM INDIA also follows an ethical teaching model—discouraging gambling-like approaches and focusing on building long-term, risk-managed trading mindsets. Their approach ensures that students learn to respect market dynamics rather than treat trading like guesswork.

Who Should Enroll in the Technical Analysis Course?

This course is ideal for:

Beginners looking to start their journey in stock or forex markets

Working professionals wanting to generate side income through informed trading

Students pursuing careers in finance or investment management

Existing traders who want to refine their strategies and reduce losses

Retired professionals seeking structured investment methods

No prior knowledge is required, making it beginner-friendly, while still delivering value to experienced traders.

Conclusion: Empower Your Trading with Technical Analysis Mastery

The importance of technical analysis cannot be overstated. It is the foundation upon which successful trading strategies are built. If you're serious about excelling in financial markets, technical analysis must be part of your toolkit.

And when it comes to learning from the best, ICFM INDIA is the only name you should trust. Their rich experience, practical teaching approach, and industry reputation make them the top destination for mastering technical analysis in India.

Whether you’re trading equities, forex, or derivatives, the skills you gain at ICFM INDIA will guide your decisions with clarity, confidence, and consistency. Don’t just guess—trade with purpose, trade with knowledge, and trade with ICFM INDIA.

Read More blogs : https://www.icfmindia.com/blog/commodity-trading-for-beginners-everything-you-need-to-know-to-start-right

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Mastering Indian Stock Market Trading & Investing: Technical Analysis for Smart Decisions

If you've ever found yourself staring at stock charts, wondering what those zigzag lines really mean or how seasoned traders predict market moves so accurately—it’s time to dive deep into the fascinating world of technical analysis.

Whether you're a beginner aiming to make your first trade or a budding investor who wants to understand market trends better, technical analysis is your gateway to reading the stock market like a pro. It’s not magic. It’s strategy—and with the right mindset, tools, and a bit of practice, anyone can learn it.

In this guide, we’ll explore what technical analysis is, how it's used in Indian stock market trading, and why mastering it can be a game-changer for your financial future.

What is Technical Analysis, Really?

At its core, technical analysis is about analyzing price movements and patterns. Instead of focusing on a company’s balance sheet or profits (which is fundamental analysis), technical analysis zooms in on stock charts, volume trends, support/resistance levels, and indicators like RSI, MACD, and moving averages.

Here’s the idea: history often repeats itself in the markets. Traders believe that past price movements can provide clues about future behavior.

But don’t worry—it’s not about memorizing hundreds of formulas. It’s about recognizing patterns, understanding market psychology, and using tools that are available to everyone.

Why is Technical Analysis Crucial in Indian Stock Market Trading?

India’s stock market, with major exchanges like NSE and BSE, is vibrant, fast-moving, and full of opportunities. With retail participation increasing and more young investors entering the scene, understanding technical analysis is not just a skill—it’s a competitive edge.

Here's why it matters:

📈 Volatility is Opportunity: Indian stocks often experience sharp movements. Technical analysis helps you time entries and exits better.

🔍 Helps Filter the Noise: News, opinions, and rumors? Technical charts let the price action speak for itself.

🕒 Perfect for Short-term & Swing Trading: Want to catch trends that last a few days or weeks? TA is your best friend.

💼 Complements Long-Term Investing: Even if you’re a long-term investor, knowing when to buy a fundamentally strong stock can greatly enhance returns.

Core Principles of Technical Analysis

To make smart decisions, you need a few essentials in your toolkit. Let’s break them down.

1. Price Discounts Everything

This is the first rule of technical analysis. Every known factor—earnings, news, expectations—is already reflected in the price.

2. Trends are Key

Markets move in trends: upward (bullish), downward (bearish), or sideways. Identifying the trend early can give you a head start.

3. History Tends to Repeat Itself

Humans drive the markets. Emotions like fear and greed lead to recurring price patterns.

Must-Know Tools and Indicators for Beginners

Learning technical analysis doesn’t mean staring blankly at complex graphs. Start with these basic tools:

🟢 Moving Averages (MA)

They smoothen price data to help you identify the trend. A simple 50-day and 200-day MA combo can reveal bullish or bearish signals.

🟣 Relative Strength Index (RSI)

A momentum indicator that tells you if a stock is overbought or oversold. It works on a scale of 0-100. Typically, above 70 means overbought; below 30 means oversold.

🔵 MACD (Moving Average Convergence Divergence)

Used to catch trend reversals. It gives crossover signals that many day traders live by.

🟡 Support and Resistance

Support is a level where buyers enter; resistance is where sellers dominate. Price tends to bounce between these zones.

🔴 Candlestick Patterns

Japanese candlesticks offer visual insights into market psychology. Patterns like Doji, Hammer, and Engulfing tell a story of potential reversals.

A Real-World Example: Let’s Analyze a Stock

Let’s say you’re looking at Infosys. You open the daily chart and notice:

The RSI is around 80 ➜ The stock might be overbought.

It’s near a resistance level it couldn’t cross twice before.

A bearish engulfing candle forms.

This is a potential short signal.

On the flip side, if the stock is near its 200-day MA, RSI is around 35, and a hammer pattern appears near support—you might consider buying.

The beauty of technical analysis? These setups repeat over time.

Day Trading vs Swing Trading vs Investing: How Does TA Fit?

✅ Day Trading

Entry and exit in the same day.

Requires strict discipline and quick decision-making.

TA is essential—especially 5-min, 15-min, hourly charts.

✅ Swing Trading

Positions held for days or weeks.

Based on short-to-medium-term trends.

Ideal for working professionals.

✅ Investing

Long-term horizon, but TA helps in timing your entry.

For example: Buying at a support level during a correction can improve returns significantly.

How to Start Learning Technical Analysis the Smart Way?

The internet is full of content, but not all of it is structured or beginner-friendly. If you’re serious about mastering it, choose a comprehensive, beginner-to-advanced course that focuses on the Indian stock market context.

We highly recommend starting with this Indian Stock Market Trading | Investing: Technical Analysis!! course. It’s perfect for beginners, filled with practical charting tips, live examples, and Indian stock-specific case studies.

Not only will it teach you chart reading, but you’ll also learn how to:

Use charting platforms effectively

Apply 20+ indicators in real-world scenarios

Build your trading strategy

Avoid beginner mistakes

Read volume like a pro

Whether you want to trade Bank Nifty, mid-cap stocks, or explore intraday and positional strategies, this course brings clarity and depth in a step-by-step format.

Common Mistakes New Traders Make (and How to Avoid Them)

Many new traders jump in with high hopes and little prep. Here’s how not to fall into the same traps:

❌ Trading Without a Plan: Always have entry, stop-loss, and target.

❌ Overusing Indicators: More isn’t better. Stick to 2–3 that suit your style.

❌ Ignoring Risk Management: Never risk more than 1–2% of your capital on a single trade.

❌ Letting Emotions Rule: Fear and greed are your biggest enemies.

Consistency comes from mindset, not just methods.

Building Your Trading System with Technical Analysis

Once you get the basics, build your own trading system—a repeatable strategy that aligns with your risk appetite.

Ask yourself:

What’s my trading style? (Scalping, Intraday, Positional)

What’s my entry signal? (Crossover, pattern, breakout)

What’s my stop-loss logic? (Fixed %, below support)

What are my exit rules? (Trailing stop, fixed reward ratio)

Test your system. Backtest it. Paper trade. And once it works—scale it.

Is Technical Analysis Foolproof?

No system is perfect. Technical analysis gives probabilities, not certainties. But when used correctly, it dramatically tilts the odds in your favor.

It's not about predicting the future. It's about reading the present clearly enough to make informed decisions.

That’s the edge that sets apart successful traders from the rest.

Final Thoughts: Why Now is the Best Time to Learn Technical Analysis

With rising retail participation in India’s stock market and easy access to free and paid charting tools, this is the perfect time to learn technical analysis.

Whether you're doing it to:

Create a side income,

Manage your investments better,

Or someday trade full-time,

Mastering technical analysis opens a whole new dimension in your financial journey.

And the best part? You don’t need a finance degree or fancy tools—just curiosity, a good course, and a willingness to learn.

Start your journey with confidence. Explore the Indian Stock Market Trading | Investing: Technical Analysis!! course today and take your first step toward smarter investing.

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Swing Trading Techniques: How to Capture Big Market Moves

forex trading app is the sweet spot between fast-paced day trading and long-term investing. It’s perfect for traders who want to capture big market moves by holding positions for a few days to several weeks, instead of minutes or years. The strategy is simple in theory: Make profit from market “swings” or fluctuations. This means buying near support (when prices dip) and selling near resistance (when prices peak) as trends shift.

What makes swing trading so appealing? It’s flexible, less stressful than day trading, and more active than just buying and holding stocks.

By combining technical analysis with defined entry and exit rules, swing trading offers an accessible way for swing trading for beginners and intermediate retail traders alike to participate in markets without constant screen time.

Understanding Swing Trading

Swing trading is a strategy that uses technical analysis to spot price patterns, momentum changes, and support/resistance levels that show potential buy and sell points over days or weeks. Typical holding periods range from two days up to several weeks, targeting moves that are too large for scalpers but too short for position trading.

Tools like candlestick patterns, oscillators (like RSI), moving averages, and chart patterns—like breakouts or consolidations—help confirm setups in stocks, forex, commodities, and crypto markets, all of which have the volatility needed for this style.

Example: Let’s say you see ABC Corp. trading at $50, forming a clear support level with a rising 20-day moving average. You buy in at $51 and set a stop-loss at $48. A week later, the stock goes up to $60, hitting a short-term resistance zone. You sell, making a $9 profit per share—about a 17.6% gain in just seven days.

Reversal trading anticipates complete turns in market direction, using indicators like RSI or MACD indicator divergences and candlestick patterns (like hammers or engulfing patterns). Traders get in once they see a reversal signal confirmed (e.g., bullish divergence on RSI plus a strong bullish candle).

Essential Tools and Indicators for Swing Trading

Swing traders use a bunch of forex trading platforms to find high-probability setups and confirm when to enter or exit.

Moving averages help smooth out price data to spot trends and dynamic support/resistance levels. The Simple Moving Average (SMA) calculates the average closing price over a certain time (like 50 or 200 days), while the Exponential Moving Average (EMA) focuses on more recent prices for quicker reactions. Traders often look for crossovers (like the 50-day EMA crossing above the 200-day EMA, also known as the "Golden Cross") to spot trend reversals or confirm breakouts.

Relative Strength Index (RSI)

The RSI indicator measures momentum on a scale from 0 to 100, showing when something is overbought (>70) or oversold (<30). Using RSI with MACD helps confirm reversals because they look at momentum in different ways.

MACD

The Moving Average Convergence Divergence (MACD) shows the difference between two EMAs (usually 12- and 26-period) and signals crossovers to indicate when trends are shifting.

Bollinger Bands

Bollinger Bands consist of a middle SMA and upper/lower bands set two standard deviations away from the SMA.

In January 2025, UAL set up for a reversal at its 50-day EMA and broke out with above-average volume. You could enter at $38 with a stop-loss at $36.50 and take profits in stages, like selling a quarter at +2% and another quarter at +10%, which helped cushion you before earnings. Even though the stock dipped after a good report, this method secured a net gain of about 7.8% by selling into strength and locking in profits before the market got shaky.

In late 2024, GEV bounced back to its 21-day moving average after the GE spin-off, leading to a long entry at $345 with a stop at $338. However, a sell-off in the sector triggered the stop the next day, resulting in a 2% loss. A partial re-entry when strength returned saw selling near $350 before hitting resistance, which helped avoid bigger losses when the overall energy sector took a hit.

Lesson Learned: Always check the strength of related indices and sector trends before re-entering, since broader market weakness can mess up even good setups.

Tips for Successful Swing Trading

Implement the following swing trading best practices to improve consistency and performance.

Develop and Follow a Trading Plan: Define setups, risk rules, and review criteria before entry.

Maintain a Trading Journal: Record setups, emotions, and outcomes to identify strengths/weaknesses.

Use Multiple Time Frames: Use a higher time frame (daily) for trend direction and a lower one (4-hour) for precise entries.

Stay Updated: Monitor economic calendars for events that can trigger volatility.

Avoid Emotional Decisions: Follow your plan; don’t chase losses or overtrade.

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Assessing the Right Time to Invest in Forex: A Comprehensive Guide

Investing in the foreign exchange (Forex) market can be highly rewarding—but only if you know when and how to enter and exit trades. This guide will walk you through the key steps to assess the optimal time to invest, including understanding trading signals, choosing the right charts, mastering entry and exit indicators, and leveraging technology to stay ahead. Whether you’re a beginner or a seasoned trader, these strategies will help you make informed, logical decisions and minimize risk.

1. Why Timing Matters in Forex Trading

The Forex market operates 24 hours a day, five days a week, with trillions of dollars changing hands daily. Given its continuous nature and high volatility, timing your trades can be the difference between healthy profits and significant losses. Entering at the wrong time may expose you to adverse currency swings, while exiting too early can prevent you from maximizing gains.

A well-timed trade allows you to:

Capitalize on momentum during strong trends

Avoid sharp reversals triggered by economic news

Reduce drawdowns and preserve capital

Improve risk-to-reward ratios on every position

By the end of this article, you’ll have a clear roadmap to pinpoint the best moments to invest and secure consistent returns.

2. Understanding Forex Trading Signals

Trading signals are alerts based on predefined criteria that suggest when to buy or sell a currency pair. They distill vast market data into actionable insights, helping traders spot opportunities without parsing every tick on the chart. Signals can be:

Technical: Generated from mathematical calculations on price and volume (e.g., Moving Averages, RSI, MACD).

Fundamental: Driven by economic events, like interest rate decisions or GDP reports.

Sentiment-based: Reflecting trader positioning and market psychology.

The key is to choose signals that align with your trading style—whether that’s scalping, day trading, swing trading, or longer-term position trading.

3. Selecting the Right Chart and Indicators

Before diving into signals, select a charting platform that offers:

Real-time data feeds for all major and minor currency pairs

Customizable timeframes (from 1-minute to monthly)

Built-in technical indicators and the ability to add custom scripts

Common Forex Charts

Line Chart: Simplest view showing closing prices.

Bar Chart: Displays open, high, low, and close (OHLC) for each period.

Candlestick Chart: Similar to bar charts, but with color-coded bodies—excellent for spotting reversal patterns.

Essential Technical Indicators

Moving Averages (MA): Identify trend direction and dynamic support/resistance.

Relative Strength Index (RSI): Measures overbought/oversold conditions.

Moving Average Convergence Divergence (MACD): Captures trend strength and momentum shifts.

Bollinger Bands: Highlight volatility and potential breakout points.

Stochastic Oscillator: Another momentum tool for spotting reversal zones.

Familiarize yourself with how each indicator behaves across different timeframes. Longer MAs smooth out noise but lag more, while shorter MAs react quickly but can generate false signals.

4. Mastering Entry Signals

An effective entry strategy combines multiple indicators to confirm a high-probability setup. Here’s a step-by-step process:

Trend Confirmation:

Use a 50-period and 200-period MA crossover to determine the primary trend (bullish when 50 above 200; bearish when below).

Momentum Filter:

Check RSI or MACD histogram for momentum alignment. For example, in an uptrend, RSI should be above 50.

Pattern Recognition:

Look for chart patterns (e.g., flags, pennants, head and shoulders) that signal continuation or reversal.

Entry Trigger:

A candlestick pattern (e.g., bullish engulfing) or a break above/below a recent swing high/low.

Volume/Volatility Check:

Confirm with volume spikes or Bollinger Band width expansion to ensure the move is supported by sufficient trading activity.

Example Entry Signal Workflow

Step 1: EUR/USD 4-hour chart shows 50 MA above 200 MA (uptrend).

Step 2: RSI sits at 55, indicating bullish momentum.

Step 3: Price consolidates in a bull flag for three candles.

Step 4: A breakout candle closes above the flag’s top—enter long.

Step 5: Volume increases by 20% above the 20-period average, confirming strength.

5. Optimizing Exit Strategies

Your exit plan is just as important as your entry. There are three common types of exits:

Fixed Stops and Profit Targets:

Predefine a stop-loss level (e.g., 30 pips) and a profit target (e.g., 60 pips) before entering. This guarantees a positive risk-to-reward ratio.

Trailing Stops:

Move your stop-loss in your favor as price advances. Many traders use a moving average or ATR-based trailing stop to capture extended moves.

Limit Exits at Key Levels:

Close positions at significant support/resistance zones or Fibonacci retracement lines.

Short-Term (Scalp/Swing) Exits

For quick trades, focus on “turning points”—repeated short-term patterns that can produce fast reversals. Monitor currency pair swings on 5- to 15-minute charts and set tight limit exits (e.g., 10–15 pips) with equally tight stops.

Real-Time Exit Signals

Many platforms offer real-time alerts—for example, if the MACD line crosses below the signal line or if price breaks below a key moving average. These can automate your exit decisions and reduce emotional bias.

6. Combining Multiple Signals for Risk Aversion

Relying on a single indicator is risky; it can generate false positives or lag behind. Instead, create a signal matrix by:

Overlaying trend, momentum, and volatility indicators

Filtering signals across multiple timeframes (e.g., align a 15-minute entry with a 1-hour trend)

Assigning weights to each signal based on reliability and recent performance

By evaluating multiple Forex signals together, you gain a holistic view of the market and can better anticipate fluctuations. This approach helps you stick to a logical mechanism rather than making random decisions under stress.

7. Leveraging Technology and Alerts

Modern Forex trading thrives on technology. With the right tools, you can analyze markets around the clock and never miss a crucial signal.

Mobile Trading Apps: Execute buy/sell orders and monitor charts on your smartphone—no physical presence required.

Automated Alert Systems: Configure alerts for when indicators meet your predefined parameters (e.g., RSI crosses below 30).

Expert Advisors (EAs): Deploy algorithmic trading systems that scan for signals and place trades automatically.

These innovations ensure that you’re always ready to act on new opportunities, whether you’re at your desk or on the go.

8. Choosing a Reliable Signal Provider

While self-generated signals are ideal, many traders supplement their strategies with professional signal services. To choose a trustworthy provider:

Check Track Record: Look for audited performance over at least six months with clear equity curves.

Read Reviews and Forums: Engage with communities on Forex forums and social media—peer feedback can be invaluable.

Compare Costs vs. Value: Free signals can be high-volume but low-quality, while paid services often offer curated, lower-frequency alerts.

Trial Periods: Opt for services that provide a trial or money-back guarantee so you can test signals risk-free.

Always cross-reference third-party signals with your own analysis to maintain control over your trades.

9. Continuous Research and Education

Forex markets evolve constantly. To stay ahead:

Read Business Newspapers and Magazines: Stay informed on macroeconomic trends that influence currency values.

Participate in Online Forums and Webinars: Exchange ideas with other traders and learn from expert lectures.

Backtest New Strategies: Use historical data and Forex software to simulate performance before risking real capital.

Maintain a Trading Journal: Record each trade’s setup, outcome, and your emotional state to refine your approach over time.

By committing to lifelong learning, you’ll adapt your system to changing market conditions and improve your win rate.

10. Conclusion: Bringing It All Together

Assessing the right time to invest in Forex isn’t about luck—it’s about systematic analysis, disciplined execution, and continuous improvement.

Understand and select the best trading signals for your style.

Choose the right charts and technical indicators.

Master robust entry and exit strategies.

Combine signals across multiple timeframes for enhanced risk aversion.

Leverage technology to automate alerts and execute trades.

Partner with a reputable signal provider, but always validate their calls.

Commit to ongoing research and education to refine your edge.

By following these steps, you’ll position yourself to make well-timed, high-probability trades that align with your goals and risk tolerance. Remember, consistency beats occasional brilliance—stick to your plan, and let your system guide you to long-term success in the Forex market. For more insights: Mastering Forex Trading Psychology: Traits, Emotions, and Mindset for Success Paperback – Large Print, May 20, 2025 by NABAL KISHORE PANDE (Author)

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Forex Trading Roadmap for Serious Traders – How I Built a Profitable Strategy

In the chaotic world of forex trading, most beginners and even intermediate traders struggle because they lack a clear structure. The truth is, without a reliable Forex Trading Roadmap, it’s nearly impossible to navigate the markets with confidence. In this article, I’ll walk you through the exact steps I used to build a profitable forex trading strategy—one that’s sustainable, smart, and guided by insights from leading industry professionals.

This blueprint is backed by the expertise of Sangram Mohanta, a forex trading expert with over 15 years of experience. It also includes a real-life trading success story and essential security tips every trader should know in 2025. Whether you're just starting or looking to optimize your performance, this roadmap is for serious traders ready to step up.

Why a Forex Trading Roadmap is Crucial in 2025

The forex market is more competitive than ever. With high-frequency trading, artificial intelligence, and global economic volatility, traders can no longer rely on luck or scattered strategies. A well-defined Forex Trading Roadmap provides clarity, consistency, and a long-term vision for success.

It’s not about copying trades or using a fancy indicator—it’s about understanding market behavior, developing discipline, and refining a process that works for you. That’s how professionals trade. And that’s what this guide aims to help you achieve.

Insights from a Forex Trading Veteran: Sangram Mohanta

A major influence in building my strategy was the guidance of Sangram Mohanta, a recognized name in the forex trading space. With over 15 years of hands-on experience, Mohanta has mentored traders across the globe, helping them transform from inconsistent novices into focused professionals.

His philosophy is simple: A trader with a process is far more powerful than one with just predictions. Your goal isn’t to be right every time—it’s to be consistently prepared.

His insights helped shape the foundation of my trading roadmap, particularly around market structure, risk management, and psychological discipline.

My Step-by-Step Forex Trading Roadmap

Here’s how I built and refined my profitable strategy:

1. Mastering Market Basics

Before diving into strategies, I made sure to understand deeply:

Currency pair dynamics

The role of central banks and economic indicators

Risk-to-reward ratios and position sizing

Price action and candlestick behavior

This helped me read the market with greater confidence and accuracy.

2. Choosing the Right Broker Through Top Forex Brokers Review

A solid strategy needs a trustworthy platform. That’s where Top Forex Brokers Review became essential. It helped me compare regulated, secure brokers based on real metrics like execution speed, spreads, platform features, and user feedback.

The top brokers I found through the site include:

FP Markets – Low latency and tight spreads for precision trading

BlackBull Markets – Raw ECN pricing and deep liquidity

IC Markets – Great for algorithmic and scalping strategies

FxPro – Diverse platform options with solid customer support

XM – Excellent for beginners due to its educational tools and low deposit requirements

This step helped avoid shady brokers and ensured fast secure order execution.

3. Developing a Simple but Effective Strategy

I chose a price-action-based system with a trend-following approach. Key elements included:

Indicators Used: 200 EMA, RSI, and price action zones

Trade Setup: Entry confirmation via break and retest or bullish/bearish engulfing candles

Risk Management: 1.5% max per trade with a 1:2 risk-to-reward minimum

Timeframes: 1-hour and 4-hour charts to avoid overtrading

I kept the system simple, focusing on repeatability and discipline rather than complexity.

4. Testing and Journaling Every Trade

I tested my system using demo accounts from brokers listed on Top Forex Brokers Review for three months. Each trade was logged with:

Entry/exit rationale

Market conditions

Emotions experienced

Lessons learned

This routine helped eliminate emotional errors and improve consistency.

Real-Life Trading Success: How One Trader Doubled His Capital

Let me share the story of Amir D., a 29-year-old trader from Malaysia. He had blown two trading accounts before discovering TopForexBrokersReview.com. Through the site, he found FP Markets and began following Sangram Mohanta’s recommended trading discipline.

Amir built a simple trend-following system, used a demo account for six months, and focused on strict risk management. By the end of 2024, he went live with $2,000 and grew it to over $5,000 in just nine months—without overleveraging or emotional trades.

According to Amir: Having a roadmap changed everything. I stopped reacting to noise and started following a system. The clarity gave me control.

Trading Online? Your Security Matters More Than Ever

In 2025, cyber threats are rising. If you're trading real money, your online security must be a top priority. That's why I only trust platforms that take protection seriously—like TopForexBrokersReview.com.

Here’s how the site protects its users:

SSL Encryption: All data is encrypted to prevent breaches

No Data Sharing: Your personal info is never sold to third parties

Secure Payment Gateway Recommendations: Only brokers with verified and secure payment systems are listed

Routine Audits: Website infrastructure and links are regularly monitored for vulnerabilities

These features make the platform a safe place to research brokers and trading strategies. Always make sure your broker and related services meet these standards to avoid scams or identity theft.

Final Thoughts: A Roadmap Isn’t Optional—It’s Essential

Building a profitable forex strategy doesn’t come from guessing or copying others. It comes from developing your system based on proven principles, expert guidance, and real-world practice.

This Forex Trading Roadmap gave me the direction I needed to shift from frustration to confidence. It’s simple, scalable, and sustainable—exactly what serious traders need in today’s market.

With the help of expert insights from Sangram Mohanta, the broker analysis from Top Forex Brokers Review, and consistent discipline, you can create your path to profitable trading in 2025.

FAQs

Q: Is this roadmap suitable for beginners? Yes, it’s designed to simplify trading and help traders of all levels build a clear foundation.

Q: Can I use this strategy part-time? Absolutely. The roadmap focuses on quality setups, not quantity, making it ideal for busy traders.

Q: How do I choose the right broker? Visit Top Forex Brokers Review to find trusted, regulated brokers matched to your trading style.

Q: What if I’ve failed before? That’s exactly why this roadmap exists. It’s structured to eliminate the mistakes most traders make and help you restart smartly.

Q: Is my data safe on Top Forex Brokers Review? Yes. The site uses industry-standard encryption and never sells your data.

Start Your Smarter Trading Journey Today

Don’t trade blind. Use this Forex Trading Roadmap to build a strategy with purpose. Explore expert broker reviews, security features, and more at Top Forex Brokers Review—the trusted source for smarter trading decisions in 2025.

[dhwanishahpatel]

Top Equity Swing Trading Strategies India – A Guide for Smart Traders

Swing trading is becoming increasingly popular among retail traders in India looking for short- to medium-term gains. If you're someone who wants to profit from market trends without committing to long-term investments or the fast pace of day trading, swing trading may be your ideal strategy.

In this guide, we explore the top equity swing trading strategies India has to offer, tailored to suit the unique characteristics of Indian stock markets. Whether you're a beginner or a seasoned trader, you'll find actionable insights to enhance your swing trading journey.

What is Swing Trading?

Swing trading is a trading style that aims to capture short- to medium-term price movements over a period ranging from a few days to several weeks. Unlike intraday trading, swing trading allows traders more time to analyze charts, study trends, and make informed decisions. It's perfect for part-time traders who cannot constantly monitor the markets.

Swing traders usually rely on technical analysis, although some also incorporate fundamental factors when picking stocks.

Why Choose Equity Swing Trading in India?

India’s equity market is vibrant, volatile, and full of opportunities. Here are a few reasons why swing trading is especially suited for Indian markets:

High Liquidity: Stocks listed on NSE and BSE offer excellent liquidity, which is crucial for entering and exiting trades swiftly.

Diverse Sectors: Indian markets allow traders to diversify across sectors like IT, pharma, banking, FMCG, and more.

Active Retail Participation: Increasing participation by retail investors adds momentum to stocks, which swing traders can capitalize on.

To get started with actionable strategies, check out our detailed resource on Equity swing trading strategies India.

Best Equity Swing Trading Strategies India Traders Can Use

Here are the most effective swing trading strategies tailored to Indian market conditions:

1. Moving Average Crossover Strategy

This strategy involves two moving averages—typically the 50-day and 200-day moving averages. When the short-term MA crosses above the long-term MA, it’s a bullish signal (golden cross). Conversely, a cross below is bearish (death cross).

Entry Point: Buy when the 50-DMA crosses above the 200-DMA.

Exit Point: Sell when the trend reverses or hits your profit target.

Indian stocks like Infosys, HDFC Bank, or Tata Motors often exhibit clear crossover patterns, making them ideal candidates.

2. Support and Resistance Bounce

This involves identifying key support and resistance levels on stock charts. Stocks tend to bounce from support levels and retreat from resistance zones.

Entry Point: Buy near support with confirmation (e.g., bullish engulfing pattern).

Exit Point: Near resistance or when price weakens.

For example, if Reliance Industries shows consistent support at ₹2,200, entering near this level can offer a favorable risk-to-reward ratio.

3. Breakout Strategy

When a stock breaks above a well-established resistance or below support with significant volume, it often continues in that direction for a few days to weeks.

Entry Point: Enter on breakout with high volume confirmation.

Exit Point: Use trailing stop-loss or exit when the price momentum weakens.

This strategy is particularly effective in earnings seasons when stock volatility surges.

4. Relative Strength Index (RSI) Reversal

RSI helps identify overbought and oversold conditions. An RSI below 30 often indicates an oversold stock, while above 70 indicates overbought conditions.

Entry Point: Buy when RSI moves above 30 after hitting oversold.

Exit Point: Sell when RSI nears 70 or shows reversal.

Many Indian mid-cap and small-cap stocks offer profitable swing trades using RSI reversal setups.

5. Volume Spike Strategy

An unexpected spike in trading volume often precedes a significant price move. Pairing volume spikes with price action and candlestick confirmation can be a powerful swing trading signal.

Entry Point: Buy when a volume spike accompanies a bullish breakout.

Exit Point: Exit when volume dries up or price loses strength.

Volume analysis works well for stocks like Adani Enterprises, IRCTC, and Zomato, where retail trader participation is high.

Risk Management in Swing Trading

Even the best strategies fail without solid risk management. Here are essential tips:

Use Stop-Loss Orders: Always define your maximum acceptable loss before entering a trade.

Limit Exposure: Avoid putting all your capital in a single trade.

Position Sizing: Adjust your lot size based on account size and risk tolerance.

Stay Updated: Indian markets are influenced by domestic and global news, earnings reports, and policy changes.

Tools and Platforms for Swing Trading in India

To execute your swing trading strategies effectively, you need the right tools:

Charting Software: TradingView, Zerodha Kite, and Upstox Pro offer excellent charting tools.

Brokerage Platforms: Choose discount brokers like Zerodha, Upstox, or Angel One for lower transaction costs.

News Feed: Use tools like Moneycontrol, Bloomberg Quint, or Economic Times Markets for real-time updates.

Common Mistakes to Avoid in Swing Trading

Overtrading: Trading too frequently can erode profits due to fees and emotional exhaustion.

Ignoring News Events: Swing trades can be disrupted by news like interest rate hikes, policy changes, or global cues.

Lack of Strategy: Jumping into trades without a tested system is a fast track to losses.

Chasing Trades: Don’t buy just because a stock is moving up rapidly. Always wait for pullbacks or setups.

Final Thoughts

India’s equity markets are full of opportunities for swing traders who are patient, strategic, and disciplined. By mastering proven Equity swing trading strategies India, traders can position themselves for consistent profits without the stress of intraday volatility.

Swing trading blends the benefits of technical analysis with a manageable timeframe—making it ideal for working professionals, part-time traders, and those who prefer quality over quantity in their trades.

Ready to Get Started?

At Finversify, we provide expert-curated trading guides, platform comparisons, and tools to help you become a better trader. Whether you're new to swing trading or looking to sharpen your edge, our resources are built with Indian traders in mind.

Visit Finversify today and take your trading to the next level with our latest insights on Equity swing trading strategies India!

[o2help]

Olymp Trade Strategy For Beginners 2025: Price Action

Introduction to Price Action Trading

Price action trading is a powerful strategy that focuses on analyzing historical price movements without relying on indicators. Instead, traders observe price patterns, candlestick formations, and key support and resistance levels to make informed trading decisions. This guide will help beginners apply price action strategies on Olymp Trade in 2025 effectively.

Key Concepts of Price Action Trading

Support and Resistance Levels

Support: A price level where demand is strong enough to prevent further decline.

Resistance: A price level where selling pressure is strong enough to prevent further rise.

Identify these levels using historical price movements and previous highs/lows.

Candlestick Patterns

Doji: Indicates market indecision.

Pin Bar (Hammer & Shooting Star): Suggests potential reversal.

Engulfing Pattern: Strong signal of trend continuation or reversal.

Trend Analysis

Uptrend: Higher highs and higher lows.

Downtrend: Lower highs and lower lows.

Sideways Trend: Price moves within a horizontal range.

Step-by-Step Price Action Trading Strategy on Olymp Trade

Step 1: Identify Market Structure

Look for trends using higher highs and higher lows (uptrend) or lower highs and lower lows (downtrend).

Draw support and resistance levels using historical price points.

Step 2: Wait for a Price Action Signal

Observe candlestick patterns near support or resistance levels.

Example: A bullish pin bar at support suggests a buy opportunity.

Example: A bearish engulfing at resistance suggests a sell opportunity.

Step 3: Confirm with Volume

Although price action trading doesn’t rely on indicators, checking volume can confirm breakout strength.

High volume during a breakout indicates strong momentum.

Step 4: Execute the Trade

Buy Trade: Enter when price bounces off support with a bullish candlestick confirmation.

Sell Trade: Enter when price rejects resistance with a bearish candlestick confirmation.

Use a stop-loss below support (for buy) or above resistance (for sell).

Step 5: Set Take-Profit and Stop-Loss

Take-Profit: Place it near the next key resistance or support level.

Stop-Loss: Keep it slightly beyond recent highs/lows to protect against market reversals.

Risk-to-reward ratio: Aim for 1:2 or higher for better profitability.

Step 6: Manage Your Trade

Use trailing stop-loss to lock in profits if the trade moves in your favor.

Avoid overtrading — stick to quality setups based on price action.

Best Timeframes for Beginners

5-Minute Chart: Suitable for quick trades (scalping) but requires fast decision-making.

15-Minute Chart: Good for short-term traders seeking stable setups.

1-Hour Chart: Ideal for beginners to catch strong trends with minimal noise.

Common Mistakes to Avoid

Trading Without a Clear Plan

Always define entry, stop-loss, and take-profit before trading.

Overtrading

Stick to 2–3 quality setups per session instead of jumping into random trades.

Ignoring Market Conditions

Avoid trading during high-impact news events as they cause unpredictable price swings.

Conclusion

Price action trading is a reliable strategy for beginners on Olymp Trade in 2025. By mastering support and resistance, candlestick patterns, and trend analysis, traders can make consistent profits without relying on indicators. Focus on discipline, risk management, and continuous learning to improve your success rate in trading.

[incomerunner65]

Investors Who Profited from Bullish Engulfing Patterns(Real-Life Success

Stories)

[stockmarketanalysis]

The 13 Best Technical Analysis Books Every Trader Must Read

Technical analysis is the backbone of successful trading. Whether you're a beginner or an experienced trader, mastering technical indicators, chart patterns, and price action is crucial. The right books can help you understand market movements, trend reversals, and profitable trading strategies.

In this guide, we've handpicked 13 of the best technical analysis books that every stock market trader should read. We also include real-world Indian stock market examples and statistics to make learning more practical.

How to Choose the Best Technical Analysis Book for Your Trading Style

Before diving into the list, let's understand what makes a technical analysis book worth reading. Here are some key factors to consider:

✅ Skill Level – Are you a beginner, intermediate, or advanced trader? ✅ Focus Area – Do you want to learn chart patterns, indicators, price action, or risk management? ✅ Market Applicability – Are you trading in stocks, forex, or crypto? ✅ Practical vs. Theoretical – Do you prefer books with case studies, strategies, and examples?

Now, let’s explore the best books on technical analysis, categorized based on trader experience levels.

Best Technical Analysis Books for Beginners

1. Technical Analysis of the Financial Markets – John Murphy

📘 Why Read It?

Covers all essential chart patterns, moving averages, RSI, and Bollinger Bands.

Explains market trends in simple terms.

Recommended for beginners and intermediate traders.

📈 Indian Stock Market Example:

The RSI indicator helped traders spot oversold zones in Nifty 50 during the 2020 crash, leading to a quick reversal.

2. Japanese Candlestick Charting Techniques – Steve Nison

📘 Why Read It?

The ultimate guide to candlestick patterns like Doji, Hammer, and Engulfing Patterns.

Helps traders predict reversals early.

📈 Indian Stock Market Example:

In August 2021, a Bullish Engulfing pattern in Reliance Industries (RIL) signaled an uptrend, giving traders a profitable entry.

3. Technical Analysis Explained – Martin Pring

📘 Why Read It?

Covers Dow Theory, momentum indicators, and cycles.

Explains why markets move and how to forecast trends.

📈 Stat Alert:

According to NSE India, traders using momentum indicators (like MACD and RSI) increased their win rate by 15% over pure fundamental traders.

Best Advanced Technical Analysis Books for Experienced Traders

4. The Encyclopedia of Chart Patterns – Thomas Bulkowski

📘 Why Read It?

A comprehensive study of chart patterns and their success rates.

Based on backtested market data.

📈 Strike.Money Insight:

The Head & Shoulders pattern was seen in HDFC Bank (2023) before a significant price drop, proving its reliability.

5. Elliott Wave Principle – Robert Prechter & A.J. Frost

📘 Why Read It?

Explains Elliott Wave Theory to predict long-term trends.

Used by professional traders for trend forecasting.

📈 Indian Market Example:

In 2017, Nifty 50 followed a classic Elliott Wave pattern, leading to a record-high rally.

6. The New Trading for a Living – Dr. Alexander Elder

📘 Why Read It?

Blends technical analysis with trading psychology.

Helps traders overcome emotional biases.

📈 Psychology Statistic:

90% of retail traders lose money due to psychological mistakes (fear, greed, overtrading).

Best Trading Psychology Books for Technical Analysts

7. Trading in the Zone – Mark Douglas

📘 Why Read It?

Teaches traders how to stay disciplined and avoid emotional decisions.

Essential for consistent profitability.

📈 Case Study:

Many traders panic-sold during the COVID-19 crash (March 2020), but disciplined traders made huge profits by sticking to strategy.

8. The Disciplined Trader – Mark Douglas

📘 Why Read It?

Focuses on risk management and psychological discipline.

Helps traders develop a winning mindset.

📈 Risk Management Insight:

Hedge funds limit risk per trade to 2% of capital—a rule retail traders should also follow.

9. Market Wizards – Jack Schwager

📘 Why Read It?

Interviews with top traders like Paul Tudor Jones and Ed Seykota.

Insights into different trading strategies and risk control.

📈 Key Learning:

Most successful traders have a defined trading plan and strict stop-loss rules.

Best Books on Price Action & Chart Patterns

10. Naked Forex – Walter Peters & Alex Nekritin

📘 Why Read It?

Teaches price action trading without indicators.

Great for forex and crypto traders.

📈 Market Example:

Bank Nifty often forms pin bars at major support levels, leading to high-probability reversals.

11. The Art and Science of Technical Analysis – Adam Grimes

📘 Why Read It?

A scientific approach to trading strategies based on statistics.

Covers trends, volume analysis, and breakout trading.

📈 Research Insight:

A study by CFA Institute found that breakout trading strategies outperform range-bound strategies in trending markets.

Best Risk Management & Strategy Books for Technical Traders

12. Risk Management in Trading – Davis Edwards

📘 Why Read It?

Teaches risk-reward ratios, stop-loss placement, and position sizing.

Essential for traders who want to protect their capital.

📈 Strike.Money Insight:

Using a 1:3 risk-reward ratio, traders in the Nifty 50 options market increased profitability by 30%.

13. How to Make Money in Stocks – William J. O’Neil

📘 Why Read It?

Explains the CAN SLIM trading strategy for stock selection.

Best for traders looking for growth stocks.

📈 Indian Market Example:

DMart and Bajaj Finance followed the CAN SLIM model, delivering multi-bagger returns over the years.

Final Thoughts – Which Technical Analysis Book Should You Read First?

If you're a beginner, start with: 📘 Technical Analysis of the Financial Markets – John Murphy 📘 Japanese Candlestick Charting Techniques – Steve Nison

For advanced traders, read: 📘 Elliott Wave Principle – Robert Prechter 📘 The Encyclopedia of Chart Patterns – Thomas Bulkowski

To master trading psychology, read: 📘 Trading in the Zone – Mark Douglas

💡 Pro Tip: Use Strike.Money for real-time chart analysis with indicators, trendlines, and automated pattern recognition.

Which of these books have you read? Drop a comment below! 🚀

[sappi-786]

Mastering Swing Trading: A Beginner's Guide to Profiting in the Stock Market

Swing trading could be the ideal option for you if you want to dabble in the world of trading without the pressure of continual supervision or the quick speed of day trading. A compromise between the long-term commitment of position trading and the short-term intensity of day trading is provided by swing trading. We'll go over the basics of swing trading and how to get started on the path to being a profitable swing trader in this in-depth guide.

To be comming great trader join now

Understanding Swing Trading

Swing trading: What is it?

The goal of swing trading is to profit from short- to medium-term fluctuations in the financial markets. Swing traders retain their holdings for several days to weeks, riding the "swings" or fluctuations in price trends, in contrast to day traders, who close their positions within the same trading day.

The Basics of Swing Trading

Fundamentally, swing trading uses technical analysis to spot patterns and trends in stock price movements. Swing traders search for chances to initiate positions at significant levels of support or resistance and to exit them when the market suggests that a reversal may be imminent.

Getting Started with Swing Trading

Setting Up Your Trading Account

You will need to open a brokerage account with a trustworthy online broker before you can begin swing trading. Select a broker who provides access to the markets you want to trade, competitive commissions, and an easy-to-use trading platform.

Developing Your Trading Plan

Swing trading success requires a well-thought-out trading strategy. Specify your favorite trading strategy, risk tolerance, and trading goals. Establish your entry and exit criteria and the kinds of stocks or other financial instruments you plan to trade.

Essential Tools for Swing Trading

Technical Analysis Indicators

Gaining an understanding of technical analysis is necessary to become a successful swing trader. Learn how to use popular indicators like as moving averages, relative strength index (RSI), and Bollinger Bands to identify potential entry and exit points.

Candlestick Patterns

Candlestick patterns offer important information about the mood and movement of the market. To enhance your trading judgments, become familiar with typical candlestick patterns including hammer, bearish, and bullish engulfing.

Executing Your Swing Trades

Identifying Swing Trading Opportunities

Look through the markets for stocks that are trading within a specific range or that show strong patterns. Seek for companies that are highly volatile and liquid, as these are more suited for swing trading methods.

To be comming great trader join now

Timing Your Entries and Exits

When it comes to timing your swing trading entrances and exits, patience is essential. Prior to making a trade, watch for confirmation signals such as breakthroughs above resistance or rebounds off support. In a same vein, set up a predetermined exit strategy to stop losses or lock in winnings.

Managing Risk in Swing Trading

Setting Stop-Loss Orders

When swing trading, capital protection is crucial. In order to reduce possible losses and protect capital, use stop-loss orders at strategic points. As the transaction develops, modify your stop-loss orders to lock in winnings or reduce losses.

Position Sizing

In swing trading, position sizing is critical to risk management. Determine the right amount position to take based on your account size, your tolerance for risk, and the stock's volatility. Refrain from taking on more than a minor portion of your capital in a single trade.

Refining Your Swing Trading Strategy

Keeping a Trading Journal

You may evaluate your transactions objectively and pinpoint areas for improvement by keeping a trading record. Note specifics like the sites of entry and exit, the reasoning behind the deal, and any feelings experienced throughout it. Over time, make use of this information to improve your approach.

Continuous Learning and Adaptation

Since the financial markets are always changing, it's critical to keep up to date and modify your trading strategy as necessary. Keep abreast of market developments, economic statistics, and shifts in mood. Always look for fresh educational materials to improve your swing trading abilities.

Conclusion

A flexible and receptive system for bringing in cash in the financial exchange is swing exchanging. You may with certainty brave the market's highs and lows by turning into a specialist in specialized examination, formulating a triumphant exchanging methodology, and proficiently overseeing risk. Review to keep up with discipline, persistence, and a steady condition of preparation to conform to moving economic situations.

To begin swing exchanging, it's prescribed to have somewhere around $2,000 to $5,000 in your exchanging account. Be that as it may, how much capital you really want relies upon your exchanging style, risk resistance, and the financier necessities.Indeed, swing exchanging is reasonable for people with everyday positions as it doesn't need consistent observing of the business sectors. You can put exchanges previously or after work and deal with your situations during your available energy.

The term of a swing exchange can shift contingent upon economic situations and your exchanging technique. Some swing exchanges might last a couple of days, while others might stretch out to half a month. It's fundamental to have a predefined leave methodology set up to secure in benefits or cut misfortunes.

While swing exchanging requires a few information on specialized examination and chance administration, reasonable for novices will learn and rehearse. Begin with little position sizes and bit by bit fabricate your certainty as you gain insight.

Feelings, for example, dread and ravenousness can impact exchanging choices and lead to unreasonable way of behaving. Practice care and discipline, and adhere to your exchanging plan. Recall that misfortunes are essential for the exchanging system, and spotlight on ceaseless improvement as opposed to harping on previous 

To be comming great trader join now

[secretindicator]

forex scalping strategy for beginners

1. Introduction to Forex Scalping

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Forex scalping is a fast-paced trading strategy where traders aim to profit from small price changes in the market. A scalper typically enters and exits trades within minutes—or even seconds—to capture small pip gains repeatedly throughout the trading session.

For beginners, scalping might seem intense, but with proper discipline, understanding, and tools, it can become a profitable trading method.

2. Advantages and Disadvantages

Advantages

Quick Profits: Since trades last minutes, you can quickly realize gains (or losses).

Low Exposure to Risk: Short time in the market means reduced exposure to unpredictable market news.

Frequent Opportunities: There are many setups during high liquidity periods.

Compounding Effect: Many small wins can accumulate into significant profits.

Disadvantages

High Stress: Constant monitoring and quick decision-making can be stressful.

Requires Focus and Time: Scalping is time-intensive and requires full attention.

Higher Transaction Costs: Frequent trading can lead to higher spreads and commissions.

Risk of Overtrading: Temptation to take too many trades in a short period can lead to losses.

3. Understanding the Forex Market Basics

Before jumping into scalping, you need to understand the fundamentals of the Forex market:

Currency Pairs: Forex is traded in pairs (e.g., EUR/USD, GBP/JPY). Scalpers usually trade major pairs due to tight spreads and high liquidity.

Pips and Spreads: A pip is the smallest price movement in a currency pair. The spread is the difference between the buy (ask) and sell (bid) prices.

Leverage: Many brokers offer leverage, which magnifies both profits and losses. Beginners should use this cautiously.

4. Choosing the Right Trading Platform and Broker

Scalping requires a reliable and fast broker. Here's what to look for:

Broker Requirements

Low Spread and Commission: Since scalping focuses on small price moves, tight spreads are essential.

No Restrictions on Scalping: Ensure the broker allows scalping strategies.

Fast Order Execution: Slippage can ruin scalping trades; you need instant order execution.

Regulated Broker: Choose a broker regulated by a recognized authority (FCA, ASIC, NFA, etc.)

Platform Features

Real-Time Charts: You need charts that update instantly.

Customizable Indicators: Useful for implementing your strategy.

One-Click Trading: For fast execution.

MT4 or MT5 Platforms: These are the most popular among scalpers.

5. Essential Tools and Indicators for Scalping

1. Moving Averages (MA)

Purpose: Identifies trend direction.

Common Types: Simple Moving Average (SMA), Exponential Moving Average (EMA).

Scalping Use: Short MAs (e.g., 5 EMA and 20 EMA) to identify entry/exit points.

2. Bollinger Bands

Purpose: Measures volatility and overbought/oversold conditions.

Scalping Use: Price bouncing off the outer bands signals entry points.

3. Stochastic Oscillator

Purpose: Shows momentum and overbought/oversold zones.

Scalping Use: Buy in oversold areas; sell in overbought zones.

4. Relative Strength Index (RSI)

Purpose: Measures the strength of price movements.

Scalping Use: 5-period RSI for quick signals.

5. Price Action and Candlestick Patterns

Purpose: Provides insight into market sentiment.

Scalping Use: Pin bars, engulfing candles, and dojis at support/resistance.

6. Step-by-Step Scalping Strategy

Trading Pair Selection

Focus on major pairs like EUR/USD, GBP/USD, USD/JPY due to high liquidity and low spreads.

Timeframes

Use 1-minute (M1) and 5-minute (M5) charts for scalping.

Analyze trends using a higher timeframe (M15 or M30).

Step-by-Step Strategy: 5 EMA + 20 EMA + Stochastic RSI

Indicators Setup:

5-period EMA (fast line)

20-period EMA (slow line)

Stochastic RSI (14, 3, 3)

Entry Rules:

Buy Setup:

5 EMA crosses above 20 EMA (bullish crossover).

Stochastic RSI below 20 and starting to curve upward.

Price pulls back slightly toward EMAs (not far from crossover).

Candlestick pattern confirming reversal (e.g., bullish engulfing).

Sell Setup:

5 EMA crosses below 20 EMA (bearish crossover).

Stochastic RSI above 80 and starting to curve downward.

Price pulls back to EMAs.

Candlestick pattern confirming bearish move (e.g., bearish pin bar).

Exit Rules:

Take Profit: 5–10 pips (based on volatility and spread).

Stop Loss: 3–5 pips below/above entry candle or recent support/resistance.

Risk-Reward Ratio: Aim for at least 1:1; ideally 2:1.

Best Times to Trade:

London Open (8:00 AM GMT)

New York Open (1:00 PM GMT)

Avoid low liquidity times (late Asian session or before major news events).

7. Risk Management in Scalping

Scalping requires a strict risk management plan because the frequency of trades can amplify losses.

1. Position Sizing

Never risk more than 1% of your account per trade.

Use a position size calculator based on stop-loss distance.

2. Limit Daily Losses

Set a daily stop-loss limit, such as 3% of your account balance. Walk away after hitting it.

3. Avoid Overtrading

Limit your trades per day (e.g., max 5–10 quality setups).

Quality > Quantity.

4. Use a Journal

Record every trade: entry, exit, reason, result, emotion.

Helps you analyze patterns and improve over time.

8. Psychology of a Scalper

1. Emotional Control

Stay calm under pressure. Avoid revenge trading.

Accept losses as part of the game.

2. Patience and Discipline

Wait for your setup. Don’t force trades.

Stick to your strategy. Don’t chase the market.

3. Confidence Through Practice

Use a demo account to refine your strategy.

Backtest with historical data.

4. Speed and Focus

Be decisive, but not impulsive.

Avoid distractions during trading hours.

9. Common Mistakes to Avoid

1. Trading Without a Plan

Scalping without rules is gambling. Always follow a tested strategy.

2. Using High Leverage

High leverage can wipe out your account in minutes.

Use conservative leverage (e.g., 1:10 or 1:20 for beginners).

3. Ignoring News Events

Unexpected news can spike volatility.

Always check the economic calendar.

4. Trading Low-Liquidity Pairs

Wider spreads = harder to make profits.

Stick to majors with tight spreads.

5. Holding Trades Too Long

Scalping = quick in, quick out.

Don’t turn scalps into swing trades if price moves against you.

10. Conclusion

Forex scalping can be a rewarding strategy for traders who are disciplined, focused, and patient. For beginners, it offers an exciting way to learn about market movements and build trading experience quickly. However, it demands a solid understanding of the market, risk management, and the right psychological mindset.

Key Takeaways:

Start with a demo account to master your strategy.

Choose a reliable broker with low spreads and fast execution.

Use technical indicators like EMA, Stochastic RSI, and candlestick patterns.

Practice strict risk management and never trade based on emotion.

Constantly review and improve your strategy using a trade journal.

Bonus Tip: Simple Scalping Checklist

Before entering a trade, ask yourself:

Is the market in a trend or range?

Are EMAs giving a clear crossover signal?

Is the stochastic in an overbought/oversold zone?

Is there a confirming price action signal?

Are you within the high-volume trading hours?

Have you set your stop-loss and take-profit?

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[myfst-blog1]

Forex Trading Strategies For Beginners Free PDF Download

I know that it can be incredibly time-consuming, frustrating and just annoying researching Forex trading strategies and different trading styles.

The huge problem is that it is often hard to know if you should use a strategy, if that strategy suits you and your lifestyle, and if it is worth your precious time learning and trading with it.

These are all pretty important to know before you begin devoting your time to learning, trading and mastering them.

In today’s lesson I go through four Forex trading strategies you can learn and use in your trading now.

Download Forex Trading Strategies PDF

A quick note before you go through them; I highly recommend you find one strategy that you like, suits you best and your lifestyle and personality. Master the heck out of that one strategy first and become profitable with it.

It is far faster to learn, master and become profitable with one strategy, than trying to learn a whole bunch at the same time. You can always add more and more strategies when you are profitable, but profits are the key.

This is an in-depth guide, so I have added a table of contents for ease of use below;

Forex Trading Strategies Table of Contents

Forex Trading Strategies For Beginners Free PDF Download

Swing Trading

Why You Should Swing Trade

Why You Shouldn’t Swing Trade

False Breakout Trading Strategy

Why You Should Use False Breakout Trading

Why You Shouldn’t Use False Breakout Trading

Scalping

Why You Should be a Scalper

Why You Shouldn’t be a Scalper

Longer Term Position Trading

Why You Should be a Position Trader

Why You Shouldn’t be a Position Trader

What Forex Trading Strategies Should You Use?

How Much Time do You Have?

What Personality Style do You Have?

What Are You Trying to Achieve?

Lastly

Swing Trading

Swing trading is looking to profit from the next swing the markets make.

As a swing trader you will often be using the higher time frames such as the 4 hour and daily charts and looking to capture large market swings and moves.

As a swing trader you don’t just have to use higher time frames, but you are not breakout trading, false breakout trading or scalping. You are looking to profit from larger swings.

When breakout trading you are looking for really fast price movement and to profit from explosive breaks of important support and resistance levels. If you miss crucial moments, it will often mean you miss the trading opportunity you were waiting for.

Swing trading is not as stressful and you will often have the levels you want to find and then enter your trades at pre-marked so you know when price moves into a level to look for a trade setup.

Because price is not breaking out and making explosive breakout moves, and is often moving over longer periods, you have more time to make your trading decisions and is a less stressful way to trade.

I have attached an example swing trade on the chart below. If price is in an uptrend you would look to identify where the next swing low is going to occur and where you would like to hunt for long trades.

If price moved into this level you would be watching for bullish price action trigger signals to get long and for price to make its next swing higher for you to make profits.

See chart example of this below;

Why You Should Swing Trade

– You have to study full-time or have a job, but still want to trade

– You want to trade higher time frames like 4hr, daily and weekly charts

– You don’t want to use the smaller paced time frames

– You are happy to make less trades that are higher in quality

Why You Shouldn't Swing Trade

– It does not involve entering fast-paced intraday breakout trades hunting for quick wins

– Whether on the smaller or higher time frames it can take time to play out

– You are not moving in and out of your trades quickly

Swing trading can suit a wide variety of traders who are looking to make quality trades and enter into the next swing in the market.

If however, you are looking for a strategy that is fast paced, you are in and out of your trades quickly and you can make many trades in a short period, you may want to use another strategy.

I have an in-depth guide you can use to learn more about swing trading at; Swing Trading Price Action Quick Guide

False Breakout Trading Strategy

A false break can be a very high probability trading setup when you have mastered it and play it at the best areas.

The false break occurs when price looks to breakout of a support or resistance level, but then quickly snaps back in the other direction, false breaking a large portion of the market out.

When the first breakout begins price is looking to breakout and through a support or resistance. In this example we will say price is looking to breakout and through a resistance level.

When price begins to breakout higher a large portion of the market begin to look for the resistance to break and will enter long trades, often setting their stop loss just on the other side of the resistance.

When price begins to move back lower, the market participants who were long and looking for the resistance to break begin to get stopped out of their long trades. As price gains momentum back lower more and more stops are eaten and price completes the false break.

The false break trading strategy opens a lot of potential high probability trading opportunities for you because it can be used on many different markets, many time frames and can be used at the major support and resistance levels.

I have attached an example Bearish Engulfing Bar = BEEB false break of a major level below;

Why You Should Use False Breakout Trading

– Can be traded on many time frames

– Can be used in many markets and pairs

– Can be traded with many triggers as the major entry

– Often entering when the majority of the market has been stopped out entering in the wrong direction

Why You Shouldn’t Use False Breakout Trading

– Can be stopped out quickly if you get it wrong

– Moves can be explosive and quickly lead to a loss

Once you have mastered false break trading it can be incredibly high probability. You will be looking to enter the market when the majority have been false broken in the wrong direction and you can often enter into explosive moves.

You can also use this strategy on many markets and time frames with many triggers for entry.

You can read an introduction guide to using the false break at; False Break Forex Trading Quick Guide

Scalping

As a scalper you are looking to get in and out of your trades quickly and profit from smaller moves in the price action.

Whilst you are looking to make far smaller pip targets, you are looking to do it in far shorter amounts of time than other strategies.

As a scalper you are capitalizing on the bigger markets volatility and quick price movements to make your profits.

A swing trader is looking to enter trades on the 4 hour or daily charts and then hold those trades for hours or days. When scalping you are generally holding your trades for minutes at a time, depending on how small the time frame.

Some traders love scalping as it offers them more potential trading opportunities, they do not have to hold for extended periods and they can close their trades and finish for the session.

Below I have included an example 5 minute chart showing price testing a key level and then forming a huge false break pin bar reversal to get short.

You can learn how to scalp the market with price action and two simple strategies at; Price Action Scalping: Quick Guide

Why You Should be a Scalper

– Fast-paced movements firing off more trading opportunities

– In and out of the markets quickly with little trade hold time

Why You Shouldn’t be a Scalper

– A lot less time to make good trading decisions

– Often leads to more trader errors

– Things can blow out and go wrong very quickly

– Trade costs such as spreads will affect bottom line more heavily

Scalping is not for everyone and is not for the faint of heart.

Whilst most traders start out on the smaller time frames and looking for as many trades as they can humanly find, this does NOT mean it suits them or that it is what they should be doing.

If you are going to scalp trade you need to have every part of your trading style locked down and be ready for all market circumstances that will come your way.

Longer Term Position Trading

Position trading is a trading style where you are looking to hold trades over much longer periods and take a ‘position’ in the market.

This style of trading is normally carried out on the daily, weekly and monthly charts.

As a position trader, you will often be trying to use the overall larger trend to gain the best positions and capture long running trades.

The key to position trading is knowing how to cut your losses relatively soon, whilst maximizing the times you make large running winners. This will often involve pyramiding into your winning positions adding further positions as price moves in your favor.

The best markets for position traders are the clearly trending markets where price is making a clear move in one direction. The weekly chart example I have added below shows an obvious trend higher that is perfect for a position trader.

This is the type of market that is making regular higher highs and higher lows. This gives the position trader a chance to not only add to their position, but use the swing points as areas to move their stop as a trail to lock in profits as the market moves.

Why You Should be a Position Trader

– Requires far less time because not always watching charts

– Less stress because not always watching the markets and the short-term moves don’t affect your outcome as much

Why You Shouldn’t be a Position Trader

– Long trade hold times

– Large stop sizes to hold trades

– Using portion of account for days and weeks on end whilst other opportunities are happening

– Far less trading opportunities

If you don’t have the time to monitor the markets as frequently and are happy to let your trades ride for longer periods of time, then position trading may be for you.

If however; you don’t want to wait long periods for your trades to play out, use huge stops or make smaller amounts of trades, then I would suggest another strategy.

What Forex Trading Strategies Should You Use?

Each trading strategy and style comes with its pros and cons. Some strategies you simply will not be able to use either because they don't suit your time frame and lifestyle or because they are not suited to your personality.

To see what Forex trading strategies suit you best, answer these three questions;

How Much Time do You Have?

This is probably the most crucial question you need to consider.

You need to think about how much time you have to first learn the strategy and then implement it.

If you only have a few minutes each day to monitor the markets, then scalping is not going to be suitable for you at all as you simply will not have the time to make the trades. You could look at position trading or swing trading.

You also need to think about how much time you are willing or able to invest in learning your chosen strategy.

What Personality Style do You Have?

Different personalities are suited to different trading strategies.

You may be a trader who wants to be in the markets, making trades and who is happy to stare at your screen for hours on end.

Or, you may want to use trading to make money, but not spend all of your time watching screens and monitoring every pip movement.

Every trader is different and this is something you need to take into account when you choose your strategy. Don't choose a strategy that will have you watching every pip movement if you are far more suited to making a trade, setting your stop and profit orders and then coming back later.

What Are You Trying to Achieve?

Are you trying to create a lifestyle with more free time, possibly more time with your family and choosing what you do and when?

Or, are you trying to make as much money as possible and are happy to spend all of your time in the markets day in and day out?

Most traders come to trading for money and lifestyle. When choosing your strategy, think about what you are trying to set up and achieve with your trading.

Lastly

Yes, there is a lot to learn, and there are a lot of other Forex trading strategies such as breakout trading, price flip trading and trend or momentum trading, but you only need to start with one strategy.

Find the one strategy that suits you the best, practice the heck out of it on your demo and then become profitable with it.

Once you have become profitable with your first strategy you can add more and more. After becoming profitable and successful learning the first strategy, adding the second, third and fourth becomes a lot quicker as you are using the same base methods.

I hope this in-depth lesson helps you find a strategy to find success with

[bobjlower]

8 Candlestick Trading Strategies for Forex

When it comes to trading price actions, finding opportunities in the market by looking for candlestick patterns is one of the best ways to go about it. Candlesticks represent price and they show all data points at one glance. Candlestick trading strategies involve determining the timing of market entry based on high probability patterns and managing the trade according to some predetermined rules that conform to your money management policy.

Since Japanese rice traders developed the Candlestick by incorporating open, high, low and closing prices, traders have identified a number of patterns that offer high probability trading opportunities. Candlestick patterns come in different sizes and shapes. There are single period candlestick patterns like the pin bars, but also, you can find patterns that involve more than two bars, like the Three White Soldiers.

However, not all patterns offer the best win rate in Forex. We have identified eight major candlestick patterns that actually work in Forex. Let’s take a look at how you can benefit from identifying these patterns and develop trading strategies around them.

  The 8 Candlestick Trading Strategies

#1: Pin Bar Reversals Patterns

Pin bars are the most effective ways to trade candlesticks as these formations tend to create high probability price action trading setups. A pin bar forms when the price goes up or down during a single time period, but the closing price remains within the previous bar.

Figure 1: Pin Bar Trading Strategy

In Figure 1, we have identified two pin bars, a bullish one and a bearish one. The way you trade pin bars is you wait for the asset’s price to break above or below the high or low, respectively. At that point, you enter the market.

Pinbar setups are triggered once the price of the next candlestick breaks above the body of the pinbar. Once your order is triggered, you can look for next support and resistance levels to find your primary profit target. If you are a short-term trader, you can simply target a reward to risk ratio of 3:1 or any other ratio that suits you.

However, when you find pin bars forming at the extreme high or low of a sustained trend, it would signal a complete reversal of the prevailing trend. Hence, trailing your open position based on ATR or X-bar stop losses could be a good strategy as it would maximize your profit in the long-run.

  #2: Bullish and Bearish Engulfing Patterns

Just like pin bars, bullish and bearish engulfing candlestick patterns also signal a reversal of the prevailing trend. In the western trading industry, these patterns are better known as Bullish Outside Bars (BUOB) and Bearish Outside Bars (BEOB). If you see a bar has higher highs and higher lows compared to the previous bar, it is an outside bar. If the closing price is lower than the opening price, then it is a BEOB and if the closing price is higher than the opening price, you guessed it right, it is a BUOB.

Figure 2: Bearish Outside Bar Triggered Downtrend

In figure 2, we can see a large bearish candlestick has engulfed the previous, smaller, bullish candlestick. By definition, it is a Bearish Outside Bar (BEOB). If you have placed a sell stop order few pips below the low of the BEOB candlestick and targeted the next pivot zone, it would have turned out to be a winning trade with a decent reward to risk ratio.

While it is best to look for Engulfing candlestick patterns at the top or bottom of a trend for reversal signals, you can also trade these during a more range-bound market. Engulfing candlesticks often breaks above or below a range and you can catch some nice breakout trades with these patterns.

Since Engulfing candles are usually longer than pin bars, the size of your stop loss needs to be rather high. One way to mitigate this problem is by drawing Fibonacci retracements based on the high and low of the engulfing bar itself and setting a stop loss at a certain Fibonacci level.

  #3: Inside Bars For Reversals and Continuations

Most candlestick trading strategies are either suited for trend reversal or trend continuation. However, inside bars are those rare gems that can signal both, depending on where in the chart they form. An inside bar is like the opposite of an engulfing bar. Its high and low are shorter than the previous bar and it sits inside the previous bar’s high and low.

However, keep in mind that trading these means you need to wait for the asset’s price to break above or below the high or low of the previous (longer) bar’s high and low, respectively.

Figure 3: Inside bars Can Signal Both Reversal and Trend Continuation

In figure 3, we can see that after the large bullish bar, two smaller bars formed within the high and low of the previous large bar. Inside bars like these can range from a single bar to several and it really does not matter if these inside bars are bullish or bearish. As long as these smaller bars do not cross the high or low of the larger bar, this would be considered as a valid inside bar pattern.

Once you see price breaking above the high of the larger bar, which is often called a Mother bar, it would signal a start of a momentum trade. In figure 3, the break above the high of the mother bar triggered a bullish trend.

However, if you find these inside bar patterns during a strong trend, it can also signal trend continuation. In either case, you should set your stop loss above or below the mother bar. If your money management strategy requires a smaller stop loss, aggressively setting the stop loss above or below the range of inside bars can also be a good strategy. However, it is rather risky and if you are a beginner trader, sticking to set stop loss around the mother bar would be preferable.

  #4: Doji Bars Signal Indecision

A Doji is formed when the opening and closing prices are almost the same. Well, the official definition is that both the opening and closing price has to be the same. However, the difference can be a pip or two, but no more, and you can still consider it as a Doji.

There are several variants of Doji based on which way the price moved first then reversed. For example, if the high and low are situated at equal distance from the open and closing prices, it is called a Star Doji. If the price goes up and down but returns to close at the opening price, it will be considered as Gravestone and Dragonfly Doji, respectively. These two patterns look like the letter T and an inverse letter T and considered bullish and bearish signals.

When you see a Doji formation, it screams indecision in the market. But you should also consider the location of the Doji bar. If a Doji forms during a strong trend, it can signal trend continuation if the price breaks above the Doji.

Figure 4: Doji Signals Indecision, but You Should Focus on Which Way It Breaks

In figure 4, a Doji formed during an uptrend and signaled temporary equilibrium in the market. However, as soon as the asset’s price broke above the high of the Doji, the uptrend continued.

If you have placed a buy stop order a few pips above the high of the Doji Sar bar, you could have increased your long exposure or entered the market for the first time. Regardless, since Doji bars are rather small in size, you can always get away with setting a tight stop loss and maximize your reward to risk ratios.

  #5: Three Bar Reversal Patterns

Three bars are the easiest candlestick patterns to identify. There are two types of three bars, the Three White Soldiers that signal a bullish reversal and Three Black Crows that signals a bearish reversal.

As the name suggests, when three subsequent bullish and bearish bars form at the top or bottom of a sustained trend, these signals a reversal.

Figure 5: Three White Crows Triggered a Bearish Trend

In figure 5, we can see three rather decent looking bearish bars formed at the top of an uptrend. Keep in mind that the first bearish bar’s high was not the highest peak in the trend and that is fine. As long as the three bearish bars form near the top of a bullish trend, it should be considered as a Three Black Crows pattern.

As you can see, once the asset’s price broke below the low of the lowest bearish bar, the downturn continued. Sometimes, after the low is broken, the price may retrace a bit but that is fine. You should set your stop loss above the high of the highest Crow.

The same principle can be applied to Three White Soldiers, which is a bullish signal pattern.

  #6: Hanging Man Signals Bearish Reversal

A hanging man pattern forms when there is a large bearish movement, but the price ends up closing near the opening price, leaving a long shadow that is usually twice the size of the body of the Candle. Hanging man looks a bullish pin bar but usually forms at the top of an uptrend, often with a gap. But it is fine if there is no gap.

Keep in mind that Hanging Man patterns should be always considered as a bearish signal and you should not place a bullish order if the price breaks on the upside. Nonetheless, there is a similar-looking pattern that forms at the bottom of downtrend, which is called a Hammer and that signals bullishness in the market.

Figure 6: Hanging Man Triggers Bearish Trade

In figure 6, we can see a hanging man candlestick pattern forming and as soon as the low of the bar is broken, it triggers a bearish trend that lasted for several bars. Here, you should set a stop loss just above the high of the Hanging Man pattern.

  #7: Rising and Falling Three Methods

The Three methods of candlestick trading strategy is a bit tricky. Tricky in a sense that the rising three method pattern has three smaller bearish candlesticks after forming a large bullish candlestick. By contrast, the falling three method pattern incorporates three smaller bullish candlesticks after a large bearish candlestick is formed.

For the rising three method pattern to form, a large bullish bar has to appear, followed by three smaller bearish candlesticks that remain above the low of the first large bullish candlestick. Then, a fifth bullish candlestick must form that breaks above the high of the first bullish candlestick and closes above it. Pretty complicated when you read it, but let’s take a look at an example chart and it should be pretty clear.

Figure 7: Rising Three Method Trend Continuation Signal

In figure 7, we can see a large bullish candlestick and three smaller bearish ones. The fifth bullish candlestick engulfed the three bearish candlesticks and closed above the high of the first candlestick, completing the rising three method pattern.

The best way to trade these patterns would be to wait for the close of the fifth candlestick, then enter with a market order. Aggressive traders may set a stop loss below the low of the third bearish bar and more conservative traders may choose to put a large stop loss below the low of the first bullish candlestick.

For falling three method patterns, you can trade similarly on the opposite side.

#8: Harami Cross As Reversal Signal

The Harami Cross pattern consists of a bullish or bearish candlestick at the top or bottom of its trend, followed by a Doji that remains within the range of the previous candlestick. If a bullish candlestick form, then you see a Doji that sits inside high and low like an inside bar, you can expect a bearish retracement soon.

Figure 8: Harami Cross Signals Bearishness

In figure 8, we can see a Harami cross, forming at the top of a bullish trend. However, you should wait for the asset’s price to break below the low of the bullish candlestick and the best way to do so would be placing a Sell Stop order a few pips below the low.

  The Bottom Line

Candlestick pattern-based strategies are easy to trade as most of the time you just need to wait for the pattern to form and place a buy or sell stop entry order above or below the candlesticks. This way, you enter the market right when the trade confirmation happens.

While entering the market with the candlestick strategies we discussed would be easy, to successfully implement these strategies would require prudent money management as well as how and when you decide to exit.

      The post 8 Candlestick Trading Strategies for Forex appeared first on Tradeciety Online Trading.

8 Candlestick Trading Strategies for Forex published first on your-t1-blog-url

[teiraymondmccoy78]

2018 Bitcoin summary – How CFD traders can make money during the downtrend

2018 Bitcoin summary – How CFD traders can make money during the downtrend

A look at how bitcoin performed in 2018

While the leading currency lost over 80% of its value since the “peak Bitcoin” in December 2017, many day traders made fortune during the downtrend placing the right orders at the right time. Let’s go through some examples, so you can decide whether it was within your reach.

2018 was a dramatic year for cryptocurrency HODLers. They spent most of 2017 with head in the clouds checking every morning how much the value of their crypto wallet has gained overnight, and probably buying more and more.

The bonanza was at its full speed in late November – early December and then… the crazy rollercoaster happened. Bitcoin nearly reached $20,000 on December 17. In the next 5 days, it dropped almost by half. Then in the first days of January, it climbed back to $17,000, only to plummet to $6,400 in the next month.

The bullish traders were fighting the downtrend throughout the first three quarters. Then in September, the volatility decreased. The BTCUSD entered a sideways drift that lasted until November 14. Bitcoin broke the $6,000 and then $5,500 support levels. In the time of writing this article, it’s testing the support levels from September 2017.

Cryptocurrency enthusiast wanted a trend reversal that never happened. The price of Bitcoin is going down, and 2018 was 100% of the time bear market.

Not a bad year for CFD Traders

In the long run Bitcoin and cryptocurrencies have a bright future. The blockchain technology is developing and being adopted in new fields with success. Bitcoin as a long-term investment proved to be a horrible choice for the people who hunted for buy low occasions in 2018. On the other hand – who knows, maybe we have reached the bottom already. We’ll learn in the next days, weeks or months.

While the cryptocurrency market capitalization fell from almost $831bn in January 2018 to $104bn in mid-December, crypto CFD traders have nothing to complain as a well-trained eye can see strong technical analysis patterns that navigated the traders through the uncharted waters.

For skilled traders, the first half of 2018 was a great period as Bitcoin Volatility Index stayed above 7% in January and February, then fell to average levels. The third quarter was a lazy time for Bitcoin day traders as the volatility fell below 2%. Things came back to life in November and by December it was way above 5% again.

Some profitable CFD trades were made across the world. Let’s take a look if the 2018 trading opportunities were within a reach an intermediate individual trader and check if a beginner trader could have made some money.

We’ll retrospectively use just the basic indicators: Japanese Candlestick Reversal Patterns and Fibonacci Retracement Tool, and see if it was doable. We’ll take a look at the BTCUSD chart – the most important cryptocurrency – in a different scale – from macro 1-week view to the most detailed 1-minute. Let’s go!

Perfect bearish engulfment

We’ll take a look at a broad picture with weekly candles and see if the big trend reversal was preceded by any sign. It turns out it all started with a strong bearish engulfing pattern.

The green candle representing 12/10/2017 week is fully engulfed by a huge red candle in the next week. Furthermore, the pattern is confirmed by the next red candle. Taking into consideration just this strong sign a novice trader (you usually start with learning this kind of stuff, when you just learn how to read Japanese candlesticks).

What extraordinary skills were necessary? What can we learn from it? This only worked if you took a multiweek trading strategy. This is a long-term attitude that requires a lot of self-control and discipline, but this shows that in the case of market turmoil it pays to stay calm.

Capitalizing on opportunities with Fibonacci Retracement Tool

Technical analysis tools are very useful in cryptocurrency markets since there are little intrinsic value indicators that would be useful in determining the price. Let’s see if Fibonacci Retracement was useful during the crash.

Fibonacci Retracement Tool works neutral. The call whether it’s just a retracement or a reversal is a different thing. Trying to get into the minds of 2018 Bitcoin traders we connect connect the swing low from November 12 with swing high on December 17. Let’s imagine I’m doing it planning my trading strategy after the New Year’s Eve party on January 1, 2018. Here are the Fibonacci levels projected on a one day chart for the first half of 2018.

The basic support level wasn’t broken until November 24. At the beginning of the year when the local bottom was reached on February 6, both the first and the second resistance levels proved to be useful when taking short positions for traders that included year-long downtrend in their trading strategies.

Now let’s take a look at BTCUSD retracements at a 1H chart in mid-December.

You can see that what seemed to be just a rally in a continuing downtrend proved to be a reversal, which was difficult to predict but proved to be quite obvious once the huge green candle breaking through three resistance levels in one hour occurred.

At this point, even a beginner trader could readjust the Fibonacci Tool, and start placing buying orders. With each confirmation of an uptrend, you could add to the long long position using local pullbacks to get the best price.

What’s next?

If you are a beginner trader, you should go on practicing the basic trading strategies and excel in opening and closing positions at the right time. Nobody knows what will happen with Bitcoin and other cryptos in the next months, and that’s your strength, too. Unlike with stock or forex, you have the same knowledge as the biggest players.

Here’s an interesting opinion. Mark Dow is a former IMF economist, who became a worldwide famous trader as he hit the jackpot opening a big short position on Bitcoin a year ago, exactly at the point of historic “peak crypto”. Since then BTCUSD declined by over 80 percent, and Mark Dow decided to close the trade.

Just as the euphoria surrounding Bitcoin was peaking last December, Mark Dow decided to short the leading digital currency. Almost a year to the day, and after a more than 80 percent decline from its record high price, Dow has closed out the trade.

“I’m done. I don’t want to try to ride this thing to zero,” “I don’t want to try to squeeze more out of the lemon. I don’t want to think about it. It seemed like the right time.” Dow said in a phone interview with Bloomberg.

“People buy into these assets because they believe the narrative, and you look at the asset prices to see if the narrative is weakening or changing,” Dow said. “It’s not easy — you could be wrong, but that’s the sign you look for. But it doesn’t mean you’ll get it right.”

As you can see, it’s much easier to master the basic technical analysis tools than to read the macro trends. While there are many useful tutorials concerning the first, there is as much false advice about the latter.

Pick up a handy CFD trading tool and learn step by step how to recognize trends and execute effective trading strategies. SimpleFX WebTrader is a great app for a start since it offers you a fully functional demo account for practice, and live accounts in any currency with no minimum deposits, so you can gradually increase your investments as your skills develop.

Good luck trading in 2019! Hopefully, it will bring as many trading opportunities as 2018.

This article was submitted by SimpleFX.

Original Source http://bit.ly/2V2AXOx

[vanessawestwcrtr5]

2018 Bitcoin summary – How CFD traders can make money during the downtrend

2018 Bitcoin summary – How CFD traders can make money during the downtrend

A look at how bitcoin performed in 2018

While the leading currency lost over 80% of its value since the “peak Bitcoin” in December 2017, many day traders made fortune during the downtrend placing the right orders at the right time. Let’s go through some examples, so you can decide whether it was within your reach.

2018 was a dramatic year for cryptocurrency HODLers. They spent most of 2017 with head in the clouds checking every morning how much the value of their crypto wallet has gained overnight, and probably buying more and more.

The bonanza was at its full speed in late November – early December and then… the crazy rollercoaster happened. Bitcoin nearly reached $20,000 on December 17. In the next 5 days, it dropped almost by half. Then in the first days of January, it climbed back to $17,000, only to plummet to $6,400 in the next month.

The bullish traders were fighting the downtrend throughout the first three quarters. Then in September, the volatility decreased. The BTCUSD entered a sideways drift that lasted until November 14. Bitcoin broke the $6,000 and then $5,500 support levels. In the time of writing this article, it’s testing the support levels from September 2017.

Cryptocurrency enthusiast wanted a trend reversal that never happened. The price of Bitcoin is going down, and 2018 was 100% of the time bear market.

Not a bad year for CFD Traders

In the long run Bitcoin and cryptocurrencies have a bright future. The blockchain technology is developing and being adopted in new fields with success. Bitcoin as a long-term investment proved to be a horrible choice for the people who hunted for buy low occasions in 2018. On the other hand – who knows, maybe we have reached the bottom already. We’ll learn in the next days, weeks or months.

While the cryptocurrency market capitalization fell from almost $831bn in January 2018 to $104bn in mid-December, crypto CFD traders have nothing to complain as a well-trained eye can see strong technical analysis patterns that navigated the traders through the uncharted waters.

For skilled traders, the first half of 2018 was a great period as Bitcoin Volatility Index stayed above 7% in January and February, then fell to average levels. The third quarter was a lazy time for Bitcoin day traders as the volatility fell below 2%. Things came back to life in November and by December it was way above 5% again.

Some profitable CFD trades were made across the world. Let’s take a look if the 2018 trading opportunities were within a reach an intermediate individual trader and check if a beginner trader could have made some money.

We’ll retrospectively use just the basic indicators: Japanese Candlestick Reversal Patterns and Fibonacci Retracement Tool, and see if it was doable. We’ll take a look at the BTCUSD chart – the most important cryptocurrency – in a different scale – from macro 1-week view to the most detailed 1-minute. Let’s go!

Perfect bearish engulfment

We’ll take a look at a broad picture with weekly candles and see if the big trend reversal was preceded by any sign. It turns out it all started with a strong bearish engulfing pattern.

The green candle representing 12/10/2017 week is fully engulfed by a huge red candle in the next week. Furthermore, the pattern is confirmed by the next red candle. Taking into consideration just this strong sign a novice trader (you usually start with learning this kind of stuff, when you just learn how to read Japanese candlesticks).

What extraordinary skills were necessary? What can we learn from it? This only worked if you took a multiweek trading strategy. This is a long-term attitude that requires a lot of self-control and discipline, but this shows that in the case of market turmoil it pays to stay calm.

Capitalizing on opportunities with Fibonacci Retracement Tool

Technical analysis tools are very useful in cryptocurrency markets since there are little intrinsic value indicators that would be useful in determining the price. Let’s see if Fibonacci Retracement was useful during the crash.

Fibonacci Retracement Tool works neutral. The call whether it’s just a retracement or a reversal is a different thing. Trying to get into the minds of 2018 Bitcoin traders we connect connect the swing low from November 12 with swing high on December 17. Let’s imagine I’m doing it planning my trading strategy after the New Year’s Eve party on January 1, 2018. Here are the Fibonacci levels projected on a one day chart for the first half of 2018.

The basic support level wasn’t broken until November 24. At the beginning of the year when the local bottom was reached on February 6, both the first and the second resistance levels proved to be useful when taking short positions for traders that included year-long downtrend in their trading strategies.

Now let’s take a look at BTCUSD retracements at a 1H chart in mid-December.

You can see that what seemed to be just a rally in a continuing downtrend proved to be a reversal, which was difficult to predict but proved to be quite obvious once the huge green candle breaking through three resistance levels in one hour occurred.

At this point, even a beginner trader could readjust the Fibonacci Tool, and start placing buying orders. With each confirmation of an uptrend, you could add to the long long position using local pullbacks to get the best price.

What’s next?

If you are a beginner trader, you should go on practicing the basic trading strategies and excel in opening and closing positions at the right time. Nobody knows what will happen with Bitcoin and other cryptos in the next months, and that’s your strength, too. Unlike with stock or forex, you have the same knowledge as the biggest players.

Here’s an interesting opinion. Mark Dow is a former IMF economist, who became a worldwide famous trader as he hit the jackpot opening a big short position on Bitcoin a year ago, exactly at the point of historic “peak crypto”. Since then BTCUSD declined by over 80 percent, and Mark Dow decided to close the trade.

Just as the euphoria surrounding Bitcoin was peaking last December, Mark Dow decided to short the leading digital currency. Almost a year to the day, and after a more than 80 percent decline from its record high price, Dow has closed out the trade.

“I’m done. I don’t want to try to ride this thing to zero,” “I don’t want to try to squeeze more out of the lemon. I don’t want to think about it. It seemed like the right time.” Dow said in a phone interview with Bloomberg.

“People buy into these assets because they believe the narrative, and you look at the asset prices to see if the narrative is weakening or changing,” Dow said. “It’s not easy — you could be wrong, but that’s the sign you look for. But it doesn’t mean you’ll get it right.”

As you can see, it’s much easier to master the basic technical analysis tools than to read the macro trends. While there are many useful tutorials concerning the first, there is as much false advice about the latter.

Pick up a handy CFD trading tool and learn step by step how to recognize trends and execute effective trading strategies. SimpleFX WebTrader is a great app for a start since it offers you a fully functional demo account for practice, and live accounts in any currency with no minimum deposits, so you can gradually increase your investments as your skills develop.

Good luck trading in 2019! Hopefully, it will bring as many trading opportunities as 2018.

This article was submitted by SimpleFX.

Original Source http://bit.ly/2V2AXOx