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Forex Day Trading Secrets: Profitable Strategies to Profit in Bull & Bear Markets

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Forex Day Trading Secrets: Profitable Strategies to Profit in Bull & Bear Markets

hey hey what’s up my friend so in today’s video I’ll share with you some day trading secrets and techniques right to help you in your day trading endeavor some of the things that I will share with you right is stuff that I learned back in my prop trading days so hopefully right you will you know get some value out of it right and it improves your own day trading results so specifically right here’s what we’ll cover I will talk about the best hours to trade for day traders how to predict market reversals ahead of time how to improve your winning rate using multiple time frame analysis then I’ll talk about how to trade the news right without getting caught on the wrong side of the move and also we know why not all markets are created equal right here’s what you also must know so all this and more right in today’s video but first okay if you’re watching this video right now hit the thumbs up button and subscribe to my youtube channel the link is below hit subscribe this way whenever I publish a new video you’ll never miss a single gain right so do it right now hit the thumbs up button and subscribe to my youtube channel the button is below click subscribe so with that said let’s get started so the first thing that I want to talk about is the best hours to trade right for forex traders so you can see over here this graph it says from oh and are ok you can see that not every hour in the forex market is equal or even though it’s open 24 hours a day not every hour is the same because you can see that this is the asian session right Tokyo and the Sydney session this is the London session and then this is the New York I can see this is the New York session ok so this is the New York London right for the bar start to the end means it shows the start of the session to the end of the session and this one shows the start of New York session to the end of New York session then you can see that this orange graph way over here right shows you the volatility of the forex markets and one thing that stands out right is that the forex markets it is most volatile during the London session from the start right from the start of London all the way to the end of London session you can see that this is where the forex market moves the most and as a day trader you only make a profit when the market is moving so the best time to trade right for forex day traders is during the London session okay this is important and to take things a step further during the London session right not every hour is the same because you can see that the first two hours of London session right let me just point out to yura the first two hours right there is volatility then the market goes into a dull drum right now maybe traders are away from the gas and lunch break blah blah blah and then when New York New York session comes into play right you notice that this three hours these three or four hours is where the market tends to be most volatile volatile right during the the London and New York session overlap so you want to you know uh employ so-called different day trading strategies right during different time of the day or rather you will be aware right of this a phenomenon right during different times of the day and with that sit right for the first two hours right and New York overlap session okay generally okay this is just a rough general guideline he said you want to be trading breakouts and trend continuation trait because this is where the market is the most volatile and there’s a good chance right you could get a follow-through right with them the market continues to move in your favor and for the last I will generally you want to be trading reversals because if you look back in the last hour of London session okay you can see that this bar over here right after this one right the market pretty much goes into a downturn right where you know the London traders they leave the desk volatility of the market right simply just you know just ten all the way to Asian session in him and then the next day okay so if you are trading the last hour of the London session and you want to be aware of this then you know after the London session close the market isn’t really going anywhere so this is where you don’t want to be trading breakouts because you’re probably gonna get stuck you want to be trading trend continuation trades because the market isn’t going to move very much more in your favor so what you want to do if you want to trade it right you can consider trading reversals where the market is unlikely to move any further any move let me take a reversal trade back towards the meat okay so this is something to really be aware of and consider when you’re trading the London session next thing right how do you pretty market reversals so here’s the thing right where the market moves each day each day it contains so-called a certain amount of fuel for a day okay so generally is like like a car okay if there is a let’s say 40 liters of petrol in it right once you move a certain number of distance once the 40 litre of petrol is used up the car isn’t going to move very much further okay so it’s the same for trading the markets right each market generally there is a certain amount of fuel for the day once they hit that certain range of the day it’s unlikely that they will move further of course there are you know those are like so an event where the market can really stretch very far right but generally most of the time right they have certain amount of range that it tends to move within the day and how do you actually determine this range right is you can use the average true range indicator so when the price right it moves 121.

5 ATR within the day it’s likely exhausted for the day and unlikely to make you know further move so let me just share this with you so this is the chain right of Eurodollar so you can pull up your average true range indicator at ATR okay just click on this I generally generally go with the 5 period ATR taking into consideration the range over the last five days and you click OK so over here it spits out the value of the range of Eurodollar the average range of Eurodollar over the last 5 days so you can see that the average range right now it’s about 50 about 50 pips let me just let me just zoom in a little bit right about about 50 pips right so what is telling you this is that over the last five days all right Euro against the USD has moved an average of about 50 pips a day ok so this means right let’s see if today the market open right it moves about 50 or 75 pips are you know that probably it has hit so called upper limit of the range M is I may need to move further so here’s how you can you know sort of like no plot your levels on the chat right where the market is so called potentially exhausted so what you’re gonna do is again right find out what’s the daily ATR so for this is 50 pips alright you go down to the lower timeframe you can go to 15 minutes to five-minute or the 1 hour time frame it’s up to you right I use the 15 minutes timeframe here and then you want to find out what is the opening price of the day right so the market opening price will take is the one is that the the new york clothes chance or sort of price opens in a 5 a.

m. singapore time right if you’re in new york right you’ll be 5 p.m. so once but we just go to daily timeframe if the day Kendal’s removing find out what’s the opening price of this candle so the opening price is a zero nine seven two okay so you just go to the fifteen minutes time frame it will be around the 5 a.

m. mark okay which is this this uh disc and over here zero nine seven two okay so I just gonna plot this over here find out where’s the opening price or I just I just do this quickly zero nine seven two okay and use you can see that this this one is pretty much a referencing the 5 a.

m. 5 a.m. Kendall Jesus seven to five to be exact to be exact okay it’s actually referencing this Kendall this candle here right this open so you have seen earlier on the daily timeframe right the ATR is 50 pips so what you gonna do is to take the opening price which is zero nine seven two plus 50 pips right so just get a calculator zero nine seven two plus 50 pips right you have a value of 1 0 to 2 right so we just change this to 1 0 to 2 okay press ok so my can see it’s just just pull this down a little bit right you can see that now this one is on top okay and also you don’t take the zero nine seven to minus 50 pips I so t97 to minus 50 pips and you get the lower end of the range my tutu okay okay so what does this tell you this level over here it tells you that from the opening price of the day when the market has move up 50 pips right this is the level alright then you’re looking at and if the market moves down 50 pips from the opening price at zero nine seven two this will be the level that you’re looking at so in other words right here I means the market has move up one eighty are for the day and over here it means that the market is drop one eighty are for the day so this is an egg an exact science right so this is why you wanna use a range between 1 to 1.

5 a TR so over here I can just add the range again so you just take a nine seven two right now one point zero nine seven two and on one point five eight er which is about 75 pips which is plus 75 you get a value of one zero four seven so just put this one out one zero four seven okay and for the bottom one okay 97 to you – 75 peeps you get a number of about 8 97 ok ok so now I just zoom up just a little bit further I can see that now we have our range on this chat this on this chat right now you can see that where could a market potentially exhaust itself for the day so I’m gonna zoom a little right so you can see that the range now it’s a pretty broad right this is one ATR this is 1.

5 ATR ok so this over here is 180 are below the open and this is 1.5 ATR below the open so you can see we have range now where the market could potentially no exhaust itself for the day and one more thing to add is that no you want to look at market structure support resistance right – really identified this type of high probability reversal areas so what you gonna do is again very simple just look left Zuma look left and see where any key structure them the market is coming into and you can see that over here for euro dollar there’s a key market structure somewhere about here right around the 1.

5 ATR level month okay so somewhere about here okay so this is if you ask me this is a high probability area right for today right for today way if euro dollar hits that area for today right that’s a good chance it could reverse from there because it is 1.

5 this level is 1.5 ATR from the open and it coincides right with the previous support right that could now against resistance so this is I would say it’s a high probability reversal area for today alright if you’re on a short write this is definitely an area gonna pay attention to and if you want a long right then this would be a area to be looking at right you can see that this one is 180 are from the open and he has a confluence of this area this swing low over here so this area would be a good area to be looking for buying opportunity or if you’re bullish on euro dollar for today and one more thing to add right you can you have seen earlier the slice right I mention it time of the day right if the the market right it’s at the last hour of London session it’s unlikely to move further so you can see that now there are a number of factors coming in right let’s see for example euro dollar comes into this highs okay this is one point five eighty are above the daily open on top of it it can see confluence of this a market structure previous support and resistance and on top of it this is now the last hour the last hour of London session so you can see that when all these factors come together at this really right it’s a very uh I would say high probability area right there you look for shorting opportunity right where there’s a number of factors all coming together right to make this a high probability short trip okay so I hope you can understand right how you know to plan your your attack right areas that you’re on a trip from I as a day trader there are different things that you can look at okay so this is how you actually go about doing it right how to actually know pretty market reversals right using the ATR indicator as well as looking a confluence vectors like support resistance and the time of the day moving on right how do you improve your winning rate all right so as a day trader or whether you’re trading the five minutes timeframe the 15 min or 30 minutes timeframe you want to be aware of where you are on the higher time frame specifically the let’s say the daily timeframe okay so let me just explain to you okay so let’s say on the daily timeframe right the market is in a trend rise making a trending move this is a retracement move a trending move retracement move a trending move so what I mean by is you want to trick in the direction of the trending or retracement move on the daily timeframe so let’s say on the daily timeframe right now the price is making something like this so right now we on the retracement lick on the daily timeframe so on the lower timeframe you wanna be looking too short you wanna be looking too long yes I do agree that on the daily timeframe the general trend is up but you have to remember that you’re a day trader you’re not a higher time frame trader so if the the higher time frame is making a retracement move on the lower time rate is probably in a downtrend and you won’t be looking for shorting opportunities okay if you had a long fair enough you can do that what you want to do is you if you don’t want to treat the retracement move on a daily timeframe wait for a break up and trading that the direction of the trend so let’s see the market now has hit higher the retracement move seems to be ending at this point right you can look for buy opportunities on the lower timeframe so this is what I mean by no you have to understand where you are right in the big picture so let me give you an example so let’s say okay just look at this K okay let me just get rid of this indicator if you look at euro or Z Y or Z oh this is wrong one euro or Z okay put on this you can see that euros on a daily time frame you’ll notice that it’s in an uptrend right if I can just don’t just quickly draw some levels over here right and we can all agree that generally here or Z it’s in an uptrend right series of higher lows right over here right yeah higher high lows and higher highs so it’s in an uptrend but remember I said that you want to be trading right a line right with either the trending or retracement movements of right now on a daily timeframe euro or Z right it’s having its retracement move right now notice that the market right is a hitting lower so you if you go down to the 15 minutes timeframe notice that the market is really in a downtrend as I’ve mentioned earlier so a mistake right now many traders make is that they they get their buyers on a higher time frame but they are trading against the trend does it make sense so for example they will look at the daily time driven it see oh hi your time frame is in an uptrend right so I should be buying so they go down to the lower timeframe the 15 minutes timeframe any look to buy and you wonder why they keep getting stopped up well the reason is simple yes you’re trading with the trend on the higher time frame but you’re trading against the threat on the lower timeframe okay so your priority right now is the time frame you’re trading and the time frame that you’re trading now is in a downtrend and you should be looking for shorting opportunities okay so in this case you can see that you know that a big picture the market is in an uptrend the lower time frame is in a downtrend so there are one thing to to pay attention is that since you know right that you are trading against the higher time frame frame right what you want to do is that you can take shorting opportunities but you want to be more active right in your trade management you wanna be quicker with your exits you don’t hold your trade too long because you know right you are trading against that fret on the higher time frame so you’re gonna be more quick with your take profits and stuff like that okay so you can see that this is an example right between the daily and a 15 minutes time frame let me give you another one right in this case a let’s say the pound Swiss franc case over here you can see that at this point I pounds respraying you can see that this market right it seems right to be hitting lower this retracement move seems to be coming to an end I can’t really tell so what do you do all you’ll do is that okay I know that on the daily timeframe the trend is down so you go down to the 15 minutes timeframe just zoom on a little bit right any notice that this market okay this is actually an area of previous support right previous support now become resistance so now if you wanna let’s say shot this market right you know over here this area is a good favorable trade location you’re gonna be trading from because here now you know that you’re trading online with the higher time frame trend which is towards the downside so if you look it was shot setups over here you am more inclined to be willing to hold this trade longer because now you’re actually trading in a direction of the longer-term trend so can you see you know how you you can actually know get your bias to know whether you’re where they should be buying or selling right based on what the higher time frame market structure is okay and let me just take you back to the Euro or z1 so for the Euro or z1 let me ask you when will you be looking to buy in this market condition let’s say for example now the daily timeframe right it’s in an uptrend but when you actually look to buy on the lower timeframe so what you can do is use a technique what I call the trend line break so you go down to the 15 minutes timeframe connect a trend line right between two obvious points alright so in this case let’s say between these highs and I see these signs over here connect this level okay so at this point let’s see on the lower timeframe right until the price can break above this trendline making a series of higher highs and higher lows only then right will I look for buy opportunities and this time round if I buy I’ll be willing to hold the trade longer because I’m now trading in the direction of the higher time frame trend does it make sense okay so the key thing to know right when you are a day trader you wanna ask yourself right m-mine is the higher time frame now in the trending move or a retracement move if it’s in a trending move you want to be trading in the direction of the trending move and possibly you know holding your trade longer you’re trading with the trip but if the higher time frame is in a retracement move right you want to be trading in the direction of the retracement at the same time you don’t be too greedy with your take profit level because you know that you’re actually trading against the higher time frame trend so you’re gonna be more quick right with taking profits does it make sense okay I hope I hope this uh this helps right this is this is important right using multiple time frames right to to improve your winning rate and your entries okay so this is how you do it right moving on right how would you treat the news okay so one thing about trading news is that you have to understand the market behavior because market behaves differently to different type of news that’s coming up for example non-farm payroll right based on my observation generally what happens is that NFP before it comes alright the market let’s say you would tend to let’s say go into a downturn it goes quiet right before NFP and when and if P is out right you just make a spike up down and it goes back quite once again something I can despite numbers and then go up right if I in vice versa but generally this is what I notice on an FP right before the news come up right market goes quiet when the news is out increase the spike up and down right triggering stops up and down and then it goes back to where you was you know before the the news release okay so this is a what I notice on n FP n I don’t know what news you want to trigger you have to understand the market behavior right for that particular news release whether you’re trading stocks Forex whatsoever so for an FP right usually what you want to do is that if you want to ignore the first move that comes out right so for example NFB news is release right market spikes up higher you don’t want to buy your ignore that first move okay what you want to do is do two can write to wait at market structure so when the first spike comes out right there’s a good chance it could reverse back in the opposite direction and this way you want to be waiting right campaign right no lie you should pick on those right we call it camping right waiting a market structure right and then to trade the reversal and market structure okay so let me just explain to you what I mean writing a charge of lease is much easier to interpret so NFP recently we have one is on the occurs a second right Friday about Italy okay so I go to the you can see over here I could kill him just just delete the levels so you can see over here this Kendall here is the is this the one 10:30 let me find this up this one here sorry it’s early right this is the Kendall sorry this is the Kendall right where NFP is released right so as mentioned earlier you want to ignore the first move so the first move right out of NFP right market hit down lower and then you hit down lower at this point right in on the first move second thing is to wait in market structure so you can see that price came into this market structure over here let me just draw it out okay price came into this market structure over here right previous resistance resistance now I can support okay this is the first move right ignore it price now came into market structure then you want to trick the reversal of it right you can see it over here the next candle you have someone of a higher close a bullish close showing you price rejection that makes Kendall right indecision right and when the price break above this high side it rarely is up higher in the opposite direction okay so this is kind of the phenomenon that I usually see in the NFP right prior to the news release right prior to the news release market goes quiet news is out it spikes up spikes down goes back up and then goes back quiet once again and in this case it’s a variation of it right market came down lower and then it spiked up and then right now it’s pretty much in doldrums you know I can see over here right down room again and then here it’s a it’s a new a new a new day already okay so this is a the nfpa phenomenon that i noticed so if you want to trade news right get my point skin you have to understand the market behavior and finally right i want to talk about is you know why not all markets at the same right yes you can trade forex market you can trade stock markets but markets behave differently and it’s very easy to proof right so some markets they have more of a trending characteristics this means when the market whenever it breaks out of a new highs it tends to continue in the direction and southern markets they have a mean reverting characteristics this means when the market breaks out of the highs it doesn’t continue higher it tends to reverse okay so a very simple test that you can do right this is a technique that I’ve learned from aundrea um woke up trading champion is this it’s a big test that you can run write what you want to do is to buy the breakout of previous day high right one lot just by one lot on the previous day high you hold that one lock position right there long position until the price hit in the previous day look and then when that happens right you exit that long tree and you go shot okay and you hold that short trade right until the price breaks above the previous day high and then you go long so your rinse repeat this process all over again so now if you do this so-called test write this back test right and you’ll notice a particular market with an equity curve right that is sloping up high over time what does it tell you well it tells you that net market right let’s say this is on a daily timeframe debt market right it’s a trending market on the TV time frame because whenever the price breaks above the high there’s a good chance it will continue higher that’s why the equity curve right it’s sloping higher over time on the other hand right if you see a negative equity curve right offer market nets heading down lower over time what does it tell you well it’s telling that net market is probably a mean reverting market whenever the price breaks out of the high it doesn’t have a tendency to coop higher and say it tends to reverse right that’s why you lose money right when you reverse all right because what we are doing is that we are buying when the price breaks above the previous day high and hold it until you know here’s the previous day low okay so if it breaks out of the high and reverse it means that we are losing and that’s why your equity curve is sloping down low over time and this tells you that the market is a mean reverting market and an example I can share with you is this right if you look at this right Aussie Canadian applying this particular back test Aussie Canadian you can see that this market right since uh since I would say I think 20 2008 okay till 2018 right this market has a downward sloping equity curve this tells you that this is a mean reverting market Aussie Canadian right a particular test that we did right on this an Aussie Canadian of the Canadian is a mean reverting market that’s why this equity curve is sloping down lower over time on the other hand you have pound yet is the opposite right it’s actually sloping up high over time this tells you the opponent is a trending market okay so this is just a very simple test that you can do it to find out the characteristic of the market is a trending market or is it a mean reverting market and why is this important right well if you know a market behavior if you know it tends to trend right what you can do is you can you know hold your traits longer right when you’re day trading because it tends to trend further in your favor if you know it it’s a it’s a trending market but if you know that the market tends to mean River and then this means that you could possibly want to take profits right Eddie you know the day highs previously higher previous day low because that’s where it tends to reverse and on top of it right you can also look for reversal trading opportunities are at a previously high low right for me reverting markets and this is only possible right if you understand the market right the behavior of the markets you are trading where is it trending or mean reverting okay so this is a very simple test you can do it right and you know find it out yourself so let’s do a quick recap right to what we have covered to there I we’ve covered a lot I know right so number one focus on training the most volatile period of the day right so for forex traders is usually the London session for stock traders is usually the first hour and last hour of the day the matura if the market moves right 121.

5 ATR of the day chances are it’s exhausted and you can use confluence I know support resistance and time of the day right to help you know time your entries as well for day trading number three understand the big picture on the higher time frame and then trade in the direction of it number four if you want to trade news right understand the behavior to how price behaves all right before during and after news release right and then you know you can take advantage of you know the behavior of the market and number five right know the behavior of the markets your trading whether is it a trending market or whether it’s a mean reverting market right from then on you can use the appropriate trading strategies to create these so call a behavior of the markets right then you find that you realize right like for example if a pound yen is a trending market you wanna apply a more of our trending strategy or breakout strategy an Aussie Canadian it’s a mean reverting market you can you know look to wrote rate reversals okay so this is this is a important right knowing the behavior of the markets then your trading and finally one last thing right if you want to learn more about my trading strategy my approach go down to my website trading with Rainer calm over here write and download this guide the ultimate guide to price action trading we will talk more about support resistance candlestick patterns entries strategies and much more okay so just go down to my website click bits click this orange button right and I’ll send it to your email for free so with that said right I have come towards the end of this video right if you’ve enjoyed it hit the thumbs up button subscribe to my youtube channel and I will talk to you soon you

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