TriscoTech Fx/Crypto

TriscoTech Fx/Crypto pinned «Speculation in the Forex Market One important thing to note about the forex market is that while commercial and financial transactions are part of the trading volume, most currency trading is based on speculation. In other words, most of the trading volume…»

UNDERSTANDING THESE THINGS WOULD GIVE YOU GREAT WIN RATE AND ACCURACY WITH YOUR TRADES

Perfect examples of a consolidation and breakouts

🔥HOW TO ENTER TRADES🔥

You simply enter trades when there is a break out. The next question that comes in is how do we know a breakout and when do we enter the trade. What i would be explaining now is a big secrete and you would probably get 100% win rate all the time if properly followed.

A BREAK OUT IS WHEN THERE IS A LONG CANDLE BREAKING THROUGH A TREND LINE, SUPPORT, RESISTANCE OR CHANNEL IN AN OPPOSIT DIRECTION.

For example there is a up trend, a break out is when a long candle breaks through the trend line in a downward direction. Same for an uptrend. for a support, abreak out is when price breaks the support going down and its same for resistance.


THERE ARE TWO WAYS TO ENTER A TRADE WHEN THERE IS A BREAK OUT.


First is entring the trade without a confirmation. This means when you see the breakout, you enter immediately and take 30 to 50 pips short term or 100 pips long term depending on your analysis on where the price is heading.

This is usually risky because sometimes the market is tricky and might pretend break out but end up rising back up which can lead to loss. This is usually called a Fakeout.


Secondly is entring with a confirmation. This is a confirmation that it is truelly a breakout. What is this confirmation??

The confirmation is when you see a candle breaking out, you then wait for price to consolidate. you can then enter when price breaks the consolidation. this is a 101% guaranteed trade.

A CONSOLIDATION IS WHEN PRISE TAKES SOME TIME TO SAVE STRENGTH AFTER A STRONG MOVENMENT BY MOVING IN A RANGING PATTERN, YOU'LL SEE IN THE EXAMPLE BELOW.

#3: Entry trigger
At this point:
You know what to do (identify market structure) and where to enter (area of value).
Now the final part of the equation is to know when to enter.
Personally, I like to enter when the market has shown signals of reversal — thus
confirming my bias.
This can be in the form of reversal price patterns like:

Hammer
Shooting Star
Bullish Engulfing Pattern
Bearish Engulfing pattern

Let me share with you a few examples of The M.A.E Formula in action…
GBP/USD Daily: Identify the market structure
GBP/USD Daily: Wait for the price to reach an area of value
GBP/USD Daily: Enter on a valid entry trigger
Another example…
T-Bond 4-hour: Identify the market structure
T-Bond 4-hour: Wait for the price to approach an area of value
T-Bond 4-hour: Enter on a valid entry trigger
Can you see how everything fits together now?
So, what’s next?
You’ve just learned what price action trading is all about, and how you can use it and to
get a “feel” for the markets.
If you learn it well, it will improve your entries, exits and trade management.
Now… it’s time to put these techniques into practice.😄

#2: Area of value
Now, identifying the market structure alone isn’t enough. Because you also need to know where to enter your trade.
Now you’re wondering:
“There are so many places to enter a trade. Which one should I choose?”
Well, you want to trade from an area of value so you can buy low and sell high.
For example:
Support and Resistance
Respected Moving Average
Trendline
Next…

#1: Market structure
Now, I know it can be daunting to be lookingat a blank chart, Because you don’t know what to do.
Should you buy, sell, or stay out?
That’s why the first thing to do is identify the market structure as it tells you what to do.
So ask yourself:
“Is the market in an uptrend, downtrend, or range?”
(In other words, identify the current stage of the market.)
Once you can identify the market structure, then you’ll know trade along the path of least resistance.
For example:
If the market is in an uptrend, you look to buy only.
If the market is in a downtrend, you look to sell only.
If the market is in a range, you can buy and sell.
Next…

❇️❇️❇️❇️❇️
The M.A.E Trading Formula (A simple Price Action Trading system anyone can learn).

At this point:
You’ve learned the essentials of Price Action Trading (Support & Resistance, Market Structure and Candlestick Patterns).
Now, let’s use this knowledge to find high probability trading setups — consistently and profitably.
Introducing to you, The M.A.E Trading Formula, a proprietary trading technique
developed to help traders get results, fast.

Here’s how it works…
1. Market structure
2. Area of value
3. Entry trigger
I’ll explain…

Speculation in the Forex Market

One important thing to note about the forex market is that while commercial and financial transactions are part of the trading volume, most currency trading is based on speculation.
In other words, most of the trading volume comes from traders that buy and sell based on intraday price movements.

The trading volume brought about by speculators is estimated to be more than 90%

The scale of the forex market means that liquidity – the amount of buying and selling volume happening at any given time – is extremely high.
This makes it very easy for anyone to buy and sell currencies.

From the perspective of a trader, liquidity is very important because it determines how easily price can change over a given time period.

A liquid market environment like forex enables huge trading volumes to happen with very little effect on price, or price action.

While the forex market is relatively very liquid, the market depth could change depending on the currency pair and time of day.

$DOGS and all the TG mini app, Ton related Tokens have gone down drastically 😭