Welcome to Part 2 of my FREE 4-part series on how to easily trade Forex when you have a day job. If you haven’t read the first part, you can find it here.
In this article I am going to reveal the rules we will use to enter a trade. Let’s get to it…
Rule #1 – Identify the S/R areas and mark them off on the chart (I will go through this in detail soon).
Remember, S/R is the CORE of our strategy and trade setup entry. Without some form of S/R then there is absolutely no trade for us.
Why do we use S/R? Because this is what the Big Boys use; the banks, the institutions, and the proprietary trading firms. When they watch S/R to get in on a move that is EXACTLY what we want to be doing as well!
Rule #2 – Only trade with the trend.
It is fairly easy to spot which direction the market is trending – but I will go over this soon so that you are totally confident in doing it yourself.
As I mentioned in the last article, trading with the trend swings the probabilities in our favour, increasing substantially the likelihood of our trade working out.
Rule #3 – Price makes a particular bar formation which “triggers” our entry into a trade.
We use a final “trigger” which tells us exactly when to enter a trade. This trigger is in the form of what we call a ‘Pinbar’.
This Pinbar tells us that the market is being rejected off a particular price area and is heading the other way.
Not only this – but the bar tells us the specific level at which to place our stoploss.
Okay, so those are our simple rules, in the next article I am going to go through these rules step-by-step and show you exactly how to take a low-risk, high-reward trade with just these 3 simple rules.
Continue to Part 3 of How To Beat Forex When You Have A Day Job.
I’m interested in this “pinbar”. I like your comentary.
Thank you!
Thanks.
Yes, the ‘Pin’ (or ‘Pinbar’) is a great trigger for entry. Tells you precisely where to set your stoploss.
Robert
Thank you for what your doing. let’s Get some pips
what is this pinbar you’re talking about? is it an indicator software? please forgive my naivity if my question is ridiculous. eagerly waiting an answer?
Hi Ogbonnya,
No problems on the “naivety”. There is a lot of bad information out there on Forex and it can be difficult just to get to the real information.
The “Pinbar” is a particular price-pattern formed with price bars (or candlesticks). In part 3 I will show you exactly how this pattern fits into the strategy.
There are no indicators or software – just simple charts and solid strategy.
Hope that answers you question.
Robert
I am new at this and very interested. Please keep it up.
Thanks
John