It’s not easy finding your dream job, let alone a job at all in today’s economy. However, there are many different ways to go about earning your income, trading the forex for example. If you’re a responsible person and find yourself with, or have access to, investment capital, there’s forex mentors that can help you with your forex training.
First off what needs to be considered is that no matter what forex training strategy you decide to use there are three patterns to provide predictable market direction so that you’re investments will always be good ones. Because of the way the forex is set up, the system you decide to use should be extremely versatile. All trades carry a risk, and they all involve a 1 to 1 risk reward ratio, but many have a 1 to 2 risk reward ratio. In terms of the risk with the forex, there is a stop strategy used that makes you much less vulnerable to potential loss.
One of the key components in any forex training strategy is having a good grasp of the concept of support and resistance. One of the major elements for being able to trade profitably is being able to look in the past at previous support and resistance price points in the market. The typical method is to use a horizontal line to look at previous Swing Highs or Swing Lows anywhere from yesterday to several years in the past.
A Swing High is defined as a 5 candle pattern with 1 candle higher and 2 candles lower on each side of the highest candle (wicks are included in the high calculation). This is the true definition of Resistance.
A Swing Low is just the opposite. It would be: A 5 candle pattern with 1 Candle lower with 2 candles higher on each side of the lowest candle (wicks are included in the low calculation). This is true Support.
These Swing High/Lows show us Probable Stall points; Possible Reversal points; but they will Always be at some Fibonacci level.
The information we are given is not so much that it is telling us to trade to previous Swing Highs/Low or even from them, but that we can use the other 3 parts of trading to help us pick a proper direction to trade in.
When you have price action moves with the Trend, with Oscillator agreement, at a Fibonacci Level, and close to a previous Swing High/Low, then you have enough information to make a high probability trade. It’s imperative that you get the proper forex training in order for you to be a consistent trader.
The author of this article has been teaching students for the past 4 years how to trade the Forex using his proven forex trading system.
