Home Trading Strategies The Best Forex Trading Strategy For Beginners (In 2020)

The Best Forex Trading Strategy For Beginners (In 2020)

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The Best Forex Trading Strategy For Beginners (In 2020)

Hey hey what’s up my friend in today’s training you’ll discover the best forex trading strategy for beginners and here’s the thing right this trading strategy it doesn’t only work for Forex can be applied to stocks the futures market as well so this trading strategy is what I call the block trading strategy to block trading strategy so before I explain to you what this is about right I want to share with you the criteria right that went through my mind before I decided to share the strategy with you number one is that this trading strategy the pattern has to be easy to spot because new traders are a beginners they are not familiarize with the no price action analysis chat patterns and stuff like that so I made sure that this pattern is relatively easy to spot so for new trainers right they are able to in order to catch this number two there must be a sound logic to behind why this trading strategy works in fact for all strategy right there must be a logic behind why it works if not right you you won’t have the conviction to trade it and I’m a tree this pattern right this blop trading strategy it must take time right for it to happen meaning it takes time for the pattern to form if it forms too quickly beginning beginners right they won’t be able to catch it in time they’ll be too slow to react so I make sure that this trading strategy it takes time to form so new traders they can catch it as well so the block trading strategy right the long set time right goes something like this the market is in a range and ideally you want 80 candles or more so don’t have to be too you know anal about this if you get seventy seven candles 75 it’s fine as well but generally I just put here 80 candles or more the more candles the longer the range the better number to the price then approach the highs of resistance and then forms a tight consolidation otherwise known as a build-up right so this is what I’m looking for a tight build-up and the highs of resistance number three I want the 20-period moving average to touch the lows of the build up to signal to me right that the market is about to make a move higher and before I place a buy stop order above the highs with a 380 our trailing stop loss so if you don’t understand you know all this technical term story share with you a ton of charts and examples cherry pick once okay a cherry pick it because it’s much easier to illustrate those example so you understand what this dis means so as a rough idea right let me just sketch you how it looks like so market is in a range over here ideally about 80 candles range then it comes up to the heights of resistance and form a tight consolidation so this one is what we call a build up or what I call a below then you want to let the 20-period moving average which is this line over here touch the lows of the build up this signal Stewart that the market is now getting ready to break up there when that happens you place a buy stop order above this highs just above the heights of resistance and if the market breaks out and you go along with the stop-loss of 380 R as your trailing stop loss so I’ll explain how that works with a few chatting examples but first right in the shot setup is just the opposite market again in a range 80 candles or more you want a price to approach the lows of support and for me tight consolidation then the 20-period moving average it touched the highs of the build up and then when that happens you place a sell stop order below the lows with three ATR trailing stop loss so why does this trading strategy works all right so let me explain to you a few reasons for it the first one here okay let me just draw this again so in the market consolidate at the highs of resistance this is a sign of strength it’s telling you that there are buyers willing to buy at this higher prices okay it’s a sign of strength or number two it’s telling that selling pressure has difficulty pushing the price lower maybe there’s a lack of seller so whatever the case is right this is a bullish factor in your favor number two the volatility cycle is in your favor as well so I’ll explain what this means so here’s the thing right the market right volatility in the market it’s always changing volatility is not static it’s always you know moving from a period of high volatility to low volatility and then back to high volatility again so you can imagine this that when you are entering your trade in this and there’s a built-up environment this is in a low-volatility environment and when the price breaks out and if volatility expands right what does that mean for you that means that your risk to reward on the trade could be pretty done favorable if volatile volatility expand right you can see that your risk to reward is pretty that good over here and this is what I mean by the volatility cycle is in your favor because you’re entering in a period of low volatility and a tutting over here is that there is a logical place for you to set your stop loss you can just set your stop-loss below the lows of this build up over here right just somewhere about here there’s a logical place compared to a trader who trade breakout let’s say a trader who trades breakout there’s no build up it just simply buys this breakout over here where are you going to set your stop loss if you ask me right the logical place the nearest one is below this area of support and it’s pretty damn far away okay so this is why this block trading strategy works and what does block stand for it stands for break up with a build up okay a break up with a build up trading strategy to pop trading strategy so let me share with you a few examples so you know how the one trading strategy works and by the way right if you are enjoying this content so far hit the thumbs up button and if you don’t enjoy it right and subscribe to my youtube channel so first thing first if you recall we are looking for a range a minimum of 80 candles 80 bars so use this tool over here just plot it from the start of the range all the way and you can see that right now it has about 83 bars over here okay oops it’s gone I’m just do that again it’s about 80 okay if you see the red color box that’s about 83 bars right now okay so that kind of meet our criteria so where is the highest of resistance so again use your tool horizontal line I can draw this area of resistance over here and the price what is it supposed to do after that the price to approach resistance and then to form a bill up so once it formed a bill up what’s next we’re looking for the 20 ma to touch the lose of the build-up so we just pull out our 20 ma and you can see that over here right the 20 ma has touched the lows of this build up and it seems to be you know supporting this higher prices if you just zoom in or you can see that right now the price you know seems to be supporting right like kind of supporting this higher prices so great so now our criteria is met the four thing to do is to place a buy stop order above this house over here the highest of resistance and finally we have a 380 our trailing stop loss and you can use this indicator called the chandelier stop over here let me just remove the 20 ma which is you see this at this purple and blue line over here this purple this blue line so how this works is that this is actually a variation right of the ATR indicator so let me explain so this one the settings for this chandelier stop right after you place a buy stop order you enter the trade how do you manage the trade waste and stop-loss this is where this blue line comes into place right this is where our trailing stop loss is so when the price closes below this blue line we exit the tree so the settings for this indicator is a 120 to 3 here used 123 it’s fine as well so 80 up here is just simply the you know look-back period I mean the how many time period right then you want to use to calculate the ATR value wait is it the last 20 days the last 22 days it’s up to you the important one is over here is the multiplier I share with you a tree ATR because this would allow you to capture medium term trend if you want to capture a longer-term trend it can just increase the ATR multi-player to like 4 or 5 whatever you know you wish so how does this blue line move that very simple right let’s say now this is the highest price over here okay and if you pull out the ATR indicator which stands for every True Range it measures the historical volatility of the market so let’s say the ATR value right now is X so what this indicator does is that we have a multiplier of 3 so X multiplied by 3 gives you 3 X all right so let’s see the current price now is let’s call it either Y okay so Y minus 3 X which is the 3 ATR it gives you that easy so zet over here is this blue line over here this is simply right from this price you – three ATR gives you this blue line over here so you can imagine it as Y as the price as a market price goes up your blue line your chandelier stop right will increase as well okay and this is what happens as the market goes up higher your blue line goes up as well and you only exit the trade when the price closes below the chandelier stop which is which happen over here at this candle it closes below this blue line and you exit the trade and yes this is a winning trade and yes I cherry pick this and that’s because it’s much easier to illustrate a concept right when it’s a winning trade compared to a losing trade but don’t worry right I’ll share with you loser as well to kind of you know manage your expectations so this is how the what trading strategy works moving on one more example New Zealand yen okay let me walk you through step by step again step by step with no step missed ooh okay so again this one over here first thing first we are looking to identify a rich at least 80 candles so okay we just use this to you pull up from the start of this range to the end of it you can see that right now it’s about 77 bar o’rena it’s not yet 80 bars man can we think this set up there’s only 77 bar come on don’t be a no right if he’s 1 2 bar difference 5 bar difference just go with it the concept is what matters not the exact but the exact you know setup or whatsoever right a come set this one matter so right now we have about 77 78 bars that’s fine as well okay next thing identify the highs of resistance and I see it somewhere about here you can see that this market is in range and there’s the highs of resistance that thing to build up okay over here there is the build up over here so now on Frank side it’s gonna be damn easy to look for Billa but in real time this is where things get tricky so let me just you know bring you back in real time and imagine this at this point in time this over here you might think that a potential build up is forming already and you might be interest rate to simply buy the break out of this highs I remember we you only want to enter the trip when the market is getting ready to break up and how do we know when the market is getting really so that’s where the 20ma comes into play when the 20ma touch the lows of the price all right for that to happen right the market has to consolidate for a period of time that means the build-a-bride has to last for a while so right now if you pull out the twin GME you can see that the lows of this pullback the lows of this build up is quite a distance away from the 20 ma so this tells you that no that time it’s not yet ready you want a 20 ma to touch the lows of the build up so if you go forward in time aha over here now the 20 ma has touched the lows of the build up now we can conclude that this market is getting ready to make a breakout and that’s where we place our buy stop order above this highs and then 380 our trailing stop loss okay in this case right market breakout higher after a while you can see it forms a bit of a wall then finally broke out over here so yes the market did chop the 20 ma for a while but it doesn’t really matter the main thing that we are looking for is for the build up to be nice and tight the tighter it is the better and when the market breaks out again we summon right knee generally a stop we are using 380 R which is this one here this blue line and this blue line will move as a price moves higher right it’s a moving in tandem so as the market goes up higher this blue line goes higher and you only exit the trade when the price breaks and close below it so if you look at this at this point the market has touched the blue line but it did not close below it so you’ll still stay in a tree until it closes below it which is at this point over here okay so you can see that really breaks it close below it right the whole thing would kind of distort and you know that it’s time to exit your tree okay so this is New Zealand yet another example euro dollar okay so if you just look back in time back in time so again what’s the first thing we are looking for range market at least 80 candles and again right now I don’t have to draw that out you know which tool to use then identify the highs of resistance then okay if you look at this example this is a little bit different because you notice that the boot up is actually formed outside of resistance right so the earlier examples the build up perform before resistance before I broke up but right now it seems to hit resistance first breakout of resistance and then it forms a build up and let’s finance well this this is fine as well so again next thing we are looking for is for the 20ma to touch the lows of the build up at this point you can see there the 20ma has not touched the lows of the build up right you see over here loads of the build up somewhere here 20 ma has not touch it so it’s not ready to break up yet so we let it touch the lows of the build up over here it did touch okay we’re here and finally you can place a buy stop order above this ice and then use 3/8 here as our trailing stop loss to write the train so what’s the outcome for this trade winner loser well to be honest it doesn’t matter the concept is what matter the process is what matter so no results for this one move on next one dollar is against the Turkish lira so again same concept my friend so again where is the range okay I see the range over here this is the highs of resistance next thing we are looking for is the build up right in the range ideally you want to finish 80 candles then you want to let the price approach the highs of resistance which is this one over here then you want to let the 20 ma touch the lows of the build up so let’s see if that happens so let me just zoom in and we slowly analyze so at this point 20 ma has not touched the lows of the build up and so you know we we don’t enter yet so at this one over here I can see that over here this can no it’s pretty close already so this is kind of like a little bit of a subjective call whether you want to consider consider it as a touch right it’s pretty close already so whether you consider it a touch or not I’ll leave it to you okay and then if you can consider this a touch I know what you can do is just simply place a buy stop order above this highs or above this highs couple of options here and if it does trigger you then use a 380 our trailing stop loss so in this case you can see that this trade is possibly a losing trade market breaks out then reverse back possibly you know stopping your for a loss on this trade over here again as I mentioned right this is an trading strategy that will win all the time there will be winners there will be losers so be prepared for it okay one more example before we move on Bitcoin I really want to hammer home this is Chuck bettin to you this concept so again Bitcoin where is the range so again identify arrange with at least 80 candles okay this is the highest of resistance you want a price to approach resistance and form a build up so we let the 20ma be our guide to let us know that the market is about to break out you can see that over here 20ma has touched the lows of the build up in vacant you can see this more for a higher lows into resistance otherwise known as an ascending triangle okay then now the 20ma has touched the lows of the built up you can place a buy stop order above this highs over here above this size and if the market breaks out 380 are as your trailing stop loss so in this case market breaks out 380 our trailing stop loss is this blue line over here okay and you hold this straight until the price breaks and close below it does it make sense okay so I share with you quite a number of examples hopefully now this you know pattern it’s kind of you know burned into your brain so moving on tweaks and modifications so this black trading strategy is not custom stone it doesn’t mean that you have to follow the exact rules that I’ve shared with you no that’s not how it works right and I don’t want your trading strategy to just simply replicate exactly right what I fish I want you to think on your own so a couple of things that you can consider a modify number one adjust the trailing stop loss so depending on the type of trend that you wanna capture you’re gonna capture a longer-term trend you can use for ATR of 5/8 here as your trailing stop loss but bear in mind that the wider your trailing stop loss right your position size on a tree will be reduced accordingly if you still want do we know maintain your say one percent risk on each tree number two you can go with an early exit so this technique allows you to reduce the size of your losses so let me explain how this works so if you recall previously the dollar against the Turkish lira the market actually did a false breakup so you can see that over here let’s say you had a buy stop order or let’s say above this rice market breaks down and next handle it reverts back against you at this point it might not have hit your trailing stop loss yet but you could you know exit this trade earlier and earlier exit to reduce the size of your losses so let’s say your stop-loss is over here right instead of letting hit your full one-hour stop-loss you can exit ahead of time so you reduce the size of your stop-loss maybe it’s only a 0.

5 our loss or 0.6 our loss okay however the downside to this technique is that you can imagine if the market let’s say if it does let’s say it does reverse back up higher right you would have exited the trip prematurely okay so that’s the downside to it so my suggestion is that if you want to use this early exit technique okay so let’s say over here you have exited this trade at this point okay what you need to do is to be prepared that this market could be just a shakeout right just to you know shake out the weak holders so be prepared to re-enter the trait so if the market does break back above this swinging high you reenter back the trade and you know have your trailing stop loss right set again so this is kind of like insurance right just in case that you know if the trend becomes a full-blown trade at least you can hop on board the trade once again so for me personally I just do this a maximum of one time right I don’t like you know keep doing this this early exit too many times just one time right is a it’s enough for me if there’s a early exit one time I’ll try to get back into the trend into the trade right one more time if the market doesn’t break spec above this swing high and the final technique they wanna share with you is what I call the pre breakout so imagine this okay if you look at this shot market forms they built up over here wouldn’t it be great right I mean the basic strategy that I share with you all is that if the price breaks above this highs you enter the trade but would it be great that if you could enter the trade before the breakout occurs entering the break up before the breakout is it possible yes actually and only share this technique with you called the pre breakout so this is the daily timeframe so to execute this technique right you need to use a multiple time frame so let’s go down to the four hour time frame okay so this one here is the daily time frame okay over here and on the four time frame he looks something like this and I just zoom on your chart so you can see kind of canola Apple to Apple right this is the daily time frame price structure and then on the forward time frame this is the one over here so what you’re looking for is a false break setup on the lower time frame the false break setup at a loss of in other words you’re looking for rejection of lower prices at support which is over here so if I just zoom in a bit you can see where this price rejection occurred so over here you can see that this is the area of support we have this price rejection where the price hate is down lower into support and then close bullish lis back into the range over here so this is what I call a false brick setup and you can enter over here on the next candle open stop-loss 180 are below this low say and say somewhere about here and if you look at it from the grand scheme of things right you’re actually buying right near the lows of this build up over here so you’re entering the breakout before the breakout and if they’re let’s see in this case the market did break out your risk the reward on this tree is like Allah really it’s gonna be really really favorable for you so this is an advanced technique I am it right but spend some time to understand this concept how it works and it will pay dividends in the long run okay so that’s a few tweaks and modifications that I have for you and pros and cons of this trading strategy first thing right you have low risk and pretty high reward because if it becomes a full-blown trend right you know you can actually write the trend in your your risk to reward is favorable one two three or even more the downside to this trading strategy right for the block trading strategy is that your opportunities are few let’s say you only trader forex markets on a daily timeframe you won’t have many trading opportunities in a year so this is why it’s important right if you wanna trade this it’s best right to diversify look into stock markets the futures market so you have more trading opportunities and again the concept is the same right whatever I just share with you right the four-step technique right identifying the range price approach the highs of resistance 20ma catch up with the lowest of the build up and then you know placing your order and trailing stop loss order so recap right today you’ve learned about the block trading strategy right I mentioned with with you right a few tweaks you can adjust your trailing stop loss to mean if you want to write a longer or shorter term trend you can use the early bailout technique to reduce the size of your losses and finally we talked about the pre break-up technique right entering your treat right before the breakout occurs and then we talked about the pros and cons of this as well so if you really enjoyed this trading strategy and you want to learn more stuff like this right my suggestion is to go down to my site trading with Rana come over here and you scroll down to the bottom this is guide over here called the ultimate kite – price action trading I’ll share with your reversal trading strategy that you can trade how to better time your entries and exits right price action stuff and much more so click this orange button I’ll send it to your email for free and with that said right if you’ve enjoyed today’s training smash the thumbs up button subscribe to my youtube channel and I will talk to you soon you

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