Trading is easy but people make it hard. If you want to succeed as a trader over the long-run you need a clear entry method with easy-to-apply set of rules. In this article, I am going to share with you a powerful trading toolkit condensed into seven secret tricks how I pick my entries trading the forex market.
1. Be patient - wait for the pullback
Draw the most obvious key levels on D1 timeframe.
After a trend wait for the pullback (see the picture below).
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1. Be patient - wait for the pullback
Draw the most obvious key levels on D1 timeframe.
After a trend wait for the pullback (see the picture below).
2. Wait for a Price Action (PA) signal
I ideally wait for a pinbar reversal, railroad tracks or fakey pin bar combo. In this case, we got a pinbar reversal. If you want to learn more about price action signal then read this article.
3. Determine your stop loss level (SL)
There are many methods of stop loss placements. I prefer setting SL above the PA signal high + 5-10pips. (see the chart below)
4. Determine your exit level (TP)
I want to get out of the trade at the nearest key level so my exit level will be above this key support level.
5. Calculate your pending order limit level (Entry)
The best way to find the entry price is to use the altered Fibonacci tool.
I drag the Fibo start & end points while the Fibo-stop-loss overlap the predefined stop loss level @1.08411 and the Fibo-2x profit overlap the predefined exit level @1.06756. After these steps the Fibo tool will show you the Entry price @1.07859
6. Calculate your position size based on your trading plan
Entry - Stop Loss = 55pips
$ amount of risk = $100 (put here your risk amount in $)
Position size calculation: $100/55pips/10 = 0.18lot
7. Set your pending order (with SL & TP) - Set and forget
Pending sell limit order has been reached next day.
TP level has been reached after 3 days.
Reward/Risk = ½
PROFIT = $200
