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Forex Trading Secrets: How To Buy Low And Sell High (Consistently And Profitably)

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Forex Trading Secrets: How To Buy Low And Sell High (Consistently And Profitably)

hey hey what’s up my friend so in today’s lesson right you learn right how to buy low and sell high I know that this is a saying that your foot often write it you know if you’re to make mark money in the market you need to buy low and sell high but a question is how right so this is not like no going down to a supermarket right where you want to buy some groceries for example if you want to buy some apples naturally you know that you know if apples were selling tree for two dollars you know that that is a pretty reasonable low price to be buying apples and if apples were selling it let’s say tree for twenty dollars you know that that’s a pretty high price intuitively right you have a frame of reference you have an area of value of value in your head right where you know how low apples should be priced now when it comes to trading this frame of reference this is a level or low price to reference against your trading decisions right it’s lost it’s not there unlike buying you know groceries in a supermarket so the question is how do you actually apply this concept in trading how to buy low and sell high so this is what we’ll talk about in today’s video but first if this is the first time you’re watching my video right I would like you to you know hit that thumbs up button right and subscribe to my youtube channel the link is all below right this way whenever I publish a new video you’ll always be updated sounds good do it right now and let’s get started so it’s all saying right how do you buy low and sell high when you’re trading the markets right so what you need is a frame of reference you need to have a technique right where on the charts right you can see that hey you know this is a relatively low price I know it’s a possible time to enter the trade so let me share with you two techniques for today’s training so this is a my charts over here so for example this is euro Canadian right annual if you’re looking at the chance of this right now right it’s a if you’re new to trading especially this can be overwhelming right you know where it’s a low price to buy do I buy it is 1:47 level because it’s the lowest point in the chart not quite right instead what you’re gonna do is to apply simple technical analysis to give you a frame of reference to help you identify area of value and a chance right so you know what it’s low and what is high okay so first how do you identify you know where is you know low prices on the chart the first technique that you can use is what I call play no support and resistance okay so let’s draw you know a few support resistance levels so we know what it’s low and what it’s high so from the looks of this chatter I what I’m seeing here is that this is a possible area of support over here put it up slightly higher okay so this is an area of support over here so you can see that as the price come into this area of support okay this area of support this possibly right is a low price in the market why is this a low price because we look back historically the price has come to this this area of value came in once pounds away came in twice bounds away very strong rally came in four at a time briefly bounce away came in for a fourth time bounce away now it came in back for a fifth time so again we are not dealing with certainty over here we’re dealing with probabilities and there is a probability there is a possibility that the fifth time over here the price could still you know have a bounce we’re not expecting a huge big bounce like this because if you look back again at this price section of this chart each bounce right is subsequently getting weaker and weaker how do I know that again if you look at the chart all right each bounce the first bounce this is a pretty okay this actually the second bounce is very strong then the time it got only this far and then fourth time only got this far so you can see that the bounce right seems to be getting weaker and weaker but a fifth time right we could still get a bounce right we are not gonna expect too much right so again back to where I was saying right this is an area of value on the chart this is where you could possibly look to buy low and sell high right so you’re gonna buy low this is a area on a chat that you want to focus on so now we have no idea right that the area on the chat right they 148 level right about here 140 a level it’s gonna hold we have no idea okay so this is why you don’t see me off then you know just buying blindly in front of support I don’t just simply put a by limb in order and buy when the prices at support stay what I want to have this so-called confirmation by the markets that hey the market is about to reverse higher so what confirmation am I looking for very simple stuff you know like a false breakdown rejection of lower prices or just simply a strong bullish clothes and in this case we’ve got a strong bullish clothes for those of you who study candlestick patterns right we call this a bullish engulfing pattern you can see that this candle over here has engulfed the prior candle and he has closed strongly above right above the previous candle high so this is a sign of string right telling you that hey buyers are stepping in and this area of value and there’s a good chance that the market now could you know hit higher so not a second part to the question is buy low and sell high where is a point where you can sell high over here so now when you want to sell high again the same concept applies right you know so seminar Chuck where is a high price on this chart so again as you’ve noticed right this is a high price this is a high price and this is a high price there’s so many higher prices over here so which level do you so call you know target so now a little bit of common sense over here would tell you they don’t notice that the swinging up higher is getting shorter and shorter right as I mentioned earlier so if you want you know loop to sell high naturally you don’t be gunning for this absolute lies because the probability of the price reaching at highs is quite slim okay so to be more conservative you and other self this simple question and what area on the channel at what level and on the chart might there be opposing pressure coming in right that will go against my tree so for example now that I’m long right at what level and the chat my sellers coming well you know that you know sellers my coming out swing high my coming at resistance they might come in you know a previous support term resistance so if you look at this chat right these are possible levels where sellers might come in and if you ask me right if you’re more conservative right this would be a key level to be paying attention to at this or swing low over here because if you think about this right this is actually a minor support right and you know that support can become resistant so if you want to sell at a level that there’s a good chance of you know taking profits or I would say this is a good level to be selling okay so this is how you can she’s technically call you know sell high at this it is possible level so you have a good chance of you know exiting your tricks for just one swing in the market so in this case the market that did come into this our this previous support and resistance right probably this could be a winning trade for Europe and then the market reverse down and then finally hit up higher again over here so again as I said right there are multiple levels where you can sell high and it’s really up to your own trading goals right and your own trade management to decide which level do you want to sell high but conservatively speaking right the first level there obstruction with it’ll comes into here I’m gonna stop you I’m not gonna let the price move any further that first level that’s swing high right it’s the first level that you want to be paying attention to because there are numerous options you can do you can look to you know take partial profits or you can look to exit your full position that’s perfectly you know doable as well okay so this is how you actually buy low and sell high so let me walk you through another example it is for Euro Canadian dollar gets the Norwegian krone Oh so if you look at this game look at this chart where is an area of value on the chat so again you can just want to just draw your support resistance I have a lesson on this I’ll put the link somewhere below on how to draw support resistance okay now see though this is a possible level that you might want to be trading off and even this one over here okay you can see that a market let’s focus on this recent one it broke out tested once then you hit higher breaking on the previous high retest that twice break up again for breaking on the previous sign test at the time slight Rayleigh test at full time then breakout retrace hit the highs and retest the previous swing high over here and finally coming back and test down for adding a fifth time over here so now you know that historically this market has you know bounds of this 8:44 level number of times three four times right and the question is is it going to hole for the fifth time will it break or will it hope again I have no idea I would rather let the price the market give me clues right to whether it wants to reverse higher or is just going to collapse and drop like a rock so in this case again I just look at price action look at candlestick patterns to see you know how the buyers and sellers are interacting so if you just look here over here you can see that this is a very again what we call a bullish engulfing pattern you see the price try to break down low over here but you know the sellers just couldn’t break below the pot and he makes Kendall bias to control and close right back above the previous candle height right very strong bullish candle just look at a ridge so this tells you that hey you know now the buyers they are in control so you can go along on mix candles open and just briefly talk about stop-loss right where do you want to put your stop-loss so for me right usually I set my stop loss right a buffer a distance below this this swing low I don’t just put it smack below the low reason being is that often right the market can just retest the previous low and then reverse higher if you look at it right this portion over here it retest this prior lows then you hit higher came down lower retest at this lows and this lows over here on this portion here then you hit higher and now it comes back down lower you retest at this lows taking on the stops below or at this area and then now it seems to be hitting higher once again so this is why I want to give my stop-loss right some buffer just below the loss usually I just use one ATR so to quickly run you through it or I just pull out the ATR indicator okay I usually use the 20-period ATR but is it really not gonna make much of a difference and I use the SMA okay so the value of here right now it’s about 75 pips so what I do is I identify the low of this swing low I minus seventy five pips because I know that one eighty are over here it shows that it’s about seventy five pips also right I mean zero point zero seven four five right so I identify this low over here and minus by zero point zero seven four five okay and that is my stop-loss so now the next question is I have really identified an area where it’s low right this is a level enable my chart where ever defined that he you know based on the past price action based on the historical data or this chart this seems to be a relatively low level to be trading so I wanna be buying here next question is where is a high price on the chart or rather at what level and what area might sell us be coming in to push the price down lower so if I look at this chart right one thing stands out to me is that this area over here this area of resistance is where sellers might be lurking right so that is to me is a high price because there’s a good chance that the market could reverse from there so there’s a frame of reference I’m using right to look for potential target profits so that is the area that I want to sell and then this area of a resistance so in this case the market it did hit higher right and you had just you have to swallow this retracement before you know it finally hits your so-called target profit at this highs over here we will talk about trade management later on right by just one we know walk you through the concept of you know buying low and selling high so let’s have a look at one more New Zealand yen on the aspect of support resistance before we move on to the second technique so support resistance again for this New Zealand yen if you just look on this chat okay I want you to do this with me right look at this chat right now and ask yourself where is an area of value on this chart where on this chart right where has it shown right that buyers has have repeatedly stepped in right to push the price higher just take five seconds and identify this right pause this video whatsoever I want you to do it right now five four three two one all right so if you have done it right what I’m seeing over here is that big that there’s a key level over here right there they are multiple right but I’ll say the key one is this one actually over here okay that’s actually another one over here somewhere about here okay but nonetheless I want to focus on this one over here so let me just remove this for now so why is this a key level because again if you just look at the chance right ask yourself right every time the price bounce around the 7230 level what happens right so he came in once had a bounce twice had a bounce came in trice had a pretty weak bounce and in a very strong one and it came in for a fifth time over here at this 7230 area so now at this point you have actually a very strong price rejection over here you just look at this candle this is a very strong price rejection but I I I’m sure I sell that I’m not gonna treat this because the range of the candle is very large and my stop-loss is gonna be pretty done ridiculous so usually I I won’t treat such strong price rejection however the subsequent candle might offer me a tighter stop-loss Orion it’s a opportunity that I could still get on so if you look at an ex candle which is this over here now this is something that is more reasonable this this mr.

Kendall I think is another bullish engulfing pattern so again you could go along on this are so you’re sorry about it oh okay this can over here right now this tells you that right now the buyers they are in control so you can look to get along on the next Kendall Open which is this candle now where do you set your stop loss again you don’t have to set your stop loss right and this referee with referring to this swing low over here because it’s gonna be pretty extreme what I can do is that is to refer from this low instead because if you think about this this is the area of support the area of support is over here it’s not over here this is just a swing low so the area of support is over here so if you want to set your stop-loss right you can actually refer this area of support or just this swing low again set it 180 are below it right and it could be your stop-loss the next question is where is the price level on the chat right we’re selling pressure could come in in other words where is a potentially high price on your chart so again if you look at this right there are a few levels that you’ll you’ll probably identify one is over here and one is possibly over here right where this again previous support right they could act as resistance and it’s another minor one over here as well another a swing low over here so again depending on how aggressive or how conservative you are right you could look to you know consider taking profits at this level or even this level right for this one is the most aggressive of all because it is the furthest away in the most unlikely that price could reach I mean nothing that you will never reach but the probabilities is slim right so you have to be honest with yourself and also self what are you trying to get out of this trade are you could try to capture a larger swing or you’re gonna be perfectly happy with just taking small chunks out of the market so it is a possible high prices on your chart right that you might want to consider taking profits so in this case the market right it did hit this level and you possibly even this level over here okay and yeah we didn’t hit this one over here as I said earlier this is pretty far probability probability is quite slim right so but I hope this gives you a good idea to you know how to actually buy low and sell high and this entire concept can be just reverse right on how to actually sell high and buy make your trip or cover your shot right at a lower price so this is a for the support and resistance technique the second technique that I want to talk about it is this one over here so let me just share with you so if you look at this okay so dollars think this is a daily timeframe okay as you can see right over here dollar against this thing so you can see that not always right the the market right the market structure is always you know bounds of support resistance nicely because sometimes the market could be in a trim a pretty strong trend and now the question is where is the area of value on the chart where is a low price point in this strong uptrend okay so this is where we use different techniques so for example if you look at this chart over here dollar against this thing you can see that the key area of support right the technique that you’ve just learned earlier is not too applicable because if you ask me the key area of support might be let me just see I would possibly just draw this area and maybe this one here I’m just doing this so quickly okay and all this I won’t really consider this area of support is more of a swing low on the chart so now the question is okay the area of support is now pretty done far away how do I identify what’s low in this in this uptrend so what you’re gonna do is utilize a technique of moving average so since I from the looks of this I know that this is pretty much a strong trend I would use a 20-period moving average right so a 20-period moving average is just this red line over here it picks into the historical past prices over the last 20 candles and you know I summarized it as a line on your chart right if you if you wanna learn more in just Google a little more about moving average how it’s calculated but a key thing that I want to share here is that moving every track in a strong trend or even a healthy trend it can serve as an area of value on a chart it can help you tell you know what’s a low price to be buying so when you look at this this chart over here you can see that price bounce of the 20 ma once twice came back for at time fourth time fee if any one six time so usually right for me personally I like to treat this concept right one of two ways number one after it has a breakout okay we have this breakout over here on the first retest I which is this one over here of the twin eme this is a possible trading opportunity to call long and prior to it if you look at it I guess tested once sorry having a you know very each each of these days and it has that twice over here so this is sort of like that time is testing it right and it’s so what has been confirmed right that the market the price is respecting this 20ma so this again is a possible opportunity for you to call long and it’s a pretty low price level after all it has to test that ones over here in this area tested twice and now it’s testing back this area this twin me4 at at type so how can you you know look to buy again simple reversal candlestick patterns in this case you’ve got a mantra was the exact candlestick term right it’s not a I think it’s called a piercing pattern right so you can see that the sellers came in pushed a price lower breaking below the tweeny AMI and the next candle the buyers stepped in right push the price up higher back above the twin eme closing near the heights and the range of the candle is pretty large as well so this again writes a possible entry trigger for you to cool long you can buy on mix candles open stop once again I like to use it a 180 are below the swing low and now the next question is where is a high price to sell alright so again I like to ask myself where my opposing selling pressure comes in and what is very clear-cut is that at this swing high is where potential selling pressure might come in right so in this case are you pretty much a hit your your target profit right if that’s what you wanna do to capture a swing to sell high and this in this case I would probably be a winning tree okay so you can see that numerous example right when it came back down to retest is a 20 ma here as well and here as well so one thing to note is that there is nothing magical about the 20-period moving average i use the 20-period moving average because one look on this chart right it’s a healthy trend I noticed that the pool backs are pretty shallow and the twenty Amir is a better frame of reference if the Poobah is slightly deeper I usually classify that as a healthy trend and a more appropriate moving average is usually the 50 period moving average so there’s a little bit of a discussion that you have over here right to decide which moving wish to use okay so but nonetheless the key thing that I want to share is that when the market is trending when you’re and if I area of value when you under identify what is low right moving average can be helpful so let me just walk you through one more example right uh so get brain crude oil you can see over here let me just if you look at this right again this this chart is similar to the dollar thing you can see that the the trend is relatively strong and again if you just were to you know use support resistance you’ve drawn your chart right chances are right the price might not come to your support resistance level so what you can do is you can use a moving average right in this case the tween EMA and notice that over here again it tested once right a second time I might not consider this a second time because I usually prefer the price to take out the high over here take out this high which is this portion here to come picking on the price and then retest a second time and then I call this a second test so this to me is the first test the second test in fact let me just you know go back a little bit I would say this in fact is actually the first test over here the price broke up of this highs second test then over here it did not take out the previous high so this is still the second test came up and test for that time over here so it is portion you can see right again we have a very strong reversal pattern up higher again I will set my stop loss along with just one eighty are below the lows if you do it right you can see that this candle wouldn’t have you know stopped you off the trade right because your stop-loss is a distance a buffer below this swing low and again the question is you know where is a high price point to sell you can consider you know selling and this our previous swing high so now at this point right we have covered two things right two different techniques to you know identify you know what is low and what is a high price in the markets right namely using support resistance and moving average so not only talk a little bit about trade management how do you actually manage your trades because if you seen the earlier examples right if you’ve seen the earlier examples like dollar against Norwegian krone oh okay you see that over here okay our target is said this our this this area over here this resistance but before it reached towards this resistance the market headed higher and it’s deep pretty deep retracement down lower so if you do not manage your trip properly you might get stopped up for a loss okay so down the key question is how do you actually you know manage your trade so there are a couple of ways to do it let me share with you the most simplest approach the first the most simplest approach is where you trill your stop-loss right using the previous candle look so since your long right so let’s say your long over here okay so what you do is that if the price breaks in close below the previous candle low you exit the trade so in this case you would probably exit your trade over here because this candle it breaks in close below the previous candle low which is this candle over here so yeah you you did not get to your your target profit over here but that’s the trade management that we are using this to you know protecting our open profit so I should the market do any you know sudden reversal so that’s the first technique the second technique to share with you is to look at the market structure okay and then drill your stop-loss accordingly so one ways that you know that this is your final target profit you know that this is a high price right anywhere you want to be selling so what you can do is you can observe the higher highs and higher lows in the market right and then you know trail your stop-loss accordingly so in this case the market makes this high you retrace this up higher and when it to cut this out this this high over here okay you can actually you can actually reference this swing low now to set your stop loss so now if the market were to come down lower you know breaking below this breaking and closing below this swing low you’ll exit your trade so this is how you sort of you know trailing your stop-loss right as the market moves in your favor till it reaches your so called target profit and finally does another retracement down lower it breaks above this highs okay this highs and now you can reference this new swing low this new swing low is your trailing stop loss so if the market were to suddenly break and close below this level then you exit the trade so in this case if you were to use your if you had to use the market structure approach right chances are you would stay in the longer right and you know to do we stand the ebb and flow of the markets but the downside to it is that sometimes right the market could just do a sudden reversal like goes up and comes all the way back down and you get stopped up for a loss whereas you’ve used the trailing stop loss using the previous candle high-low that might get you up with a smaller loss so there’s pros and cons to both approach so let me just walk you through another another and another example before we conclude today’s today’s session so you Rock an idiom we spoke about that earlier so again over here this one would okay let’s see this one if we were to use a trailing stop loss the previous candle high-low currently see right I think this one the close is very near the low so chances are just still hold onto it and exit only when the candle closes below the prior candle low which is probably this one over here but by then right it would have really hit our target profit which is at this our previous support and resistance okay okay so that’s it I think let’s let’s see one more example New Zealand yen all right so New Zealand yen we have a okay this one again you can see that in this case the previous candle close pretty much a cut over here and again by then we might not have existed here this level but we probably would cut out this at this swing high if that is our target profit okay and as for the the market structure trailing stop loss you can see that the market goes up comes down so when it breaks above this high now we can reference this as our stop a level to drill out stop-loss right then it goes up comes down lower it does not break below this level so we are still in the trade goes up high above the swing high now we can drill our stop loss using this swing low right and drill it till it hits our final target profit so depending where is your your target profit that you want to exit your tree that you can you know continue use the market structure technique to trail your stop-loss till you hit your target profit or it hits your trailing stop loss so these are the two techniques to share with you right the previous candle hi-low and the end the market structure trailing stop loss so just a quick recap to today’s lesson right so how do you actually buy low and sell high in trading okay I’ll share with you two techniques you can use support resistance and moving average but these are not the only two because you can use stuff like you know a trend line channels etc those work as well then we talked about trade management how do you actually manage your trade because most of the time right I’ll be honest the market doesn’t just go in your favour and just boom right hit target profit no a lot of times right you’ve got to swallow the retracement the pullback that comes along with it and that’s the tricky part because how are you gonna manage the trade are you gonna go with a set and forget approach where you just enter TP SL and just close both eyes and let the market decide what to do what to do or are you going to go with them more active trade management approach maybe you can use a market structure to trail your stop-loss or maybe you can use the previous candle you know high or low to Trillium stop-loss all right so these are different trip management techniques that you must consider as well so so you can see that trading is really more than just buying low and selling high there’s no trade management involve as well okay so that’s pretty much it right for today’s lesson if you want to learn more okay I’ve got something interesting for you right you can go down to my website over here trading with Rainer calm the links it’s on top okay so just scroll down a little bit right Eric and I got a couple of trading guides for you if you’ve enjoyed today’s lesson then all the more you enjoy this ultimate guide to price action trading because we dive deep right into reading the price section of the markets you know a market structure increase exits and much more so go here click this orange button right and I’ll send you this guide for free sounds good right now with that said I have come towards the end if you enjoyed this video hit the thumbs up button subscribe to my youtube channel the link is below and I will talk to you soon you

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