Forex trading

#tradingtips

#tradingtips

#tradingtips

#tradingtips

#tradingtips

In business:

You need capital.

You have expenses to cover.

You don't expect to succeed from day one.

You need some time before you make a profit.

Trading is a business—so treat it as one.

[Why you always get stop hunted and how to avoid it]

Imagine…

You manage a hedge fund and want to buy 1 million shares of ABC stock. You know support is at $100 and ABC is currently trading at $110.

Now if you were to buy ABC stock right now, you’ll likely push the price higher and get filled at an average price of $115 — that’s $5 higher than the current price.

So what do you do?

Since you know $100 is an area of support, chances are, there will be a cluster of stop loss underneath it (from traders who are long ABC stock).

So, if you could push the price lower to trigger these stops, there would be a flood of sell orders hitting the market (as buyers will exit their losing positions).

With the amount of selling pressure coming in, you could buy your 1 million shares of ABC stock from these traders which gives you a better average price.

In other words, if an institution wants to long the markets with minimal slippage, they tend to place a sell order to trigger nearby stop losses. This allows them to buy from traders cutting their losses, which offers them a more favourable entry price.

Go look at your charts and you’ll often see the market taking out the lows of support, only to trade higher subsequently.

Now you’re probably wondering:

“So how do I avoid it?”

Simple.

Set your stop loss a distance away from support to give it some buffer so your stop loss doesn’t get eaten too easily.

Here’s how…
- Identify the lows of support
- Find the current Average True Range (ATR) value and subtract 1 ATR from the lows of support

The idea is to define the current market’s volatility and then subtract it from the lows of support.

This way, you are giving your stop loss a buffer that’s based on the volatility of the markets (and not just some random number).

Pro Tip:
If you want a tighter stop loss, you can reduce your ATR multiple, like having 0.5 ATR instead of 1.

Never trust anything. Always verify everything.

Especially in trading.

[Support could become resistance, why?]

There are two reasons for this…

Reason #1: Losing traders hoping to get out at breakeven

Support is an area where potential buying pressure could step in and push the price higher.

However, support doesn’t always hold.

When it breaks, those traders who are long will be sitting in the red. The smart traders will cut their losses and move on. But, stubborn traders will hold onto to their losses and hope the price will reverse back to their entry price — so they can get out at breakeven.

So if you think about it, this group of stubborn traders will create selling pressure at their entry price as they exit their positions, and if there’s enough of such traders, support will become resistance.

But that’s not all because…

Reason #2: Textbook setup

Traders familiar with classical technical analysis will look to sell at the previous area of support as that’s what most textbooks teach.

And if you get enough traders “following” the textbook setup, it puts selling pressure on the previous area of support which could now become resistance.

"Bullish Reversal" patterns made simple! 📉📈

1️⃣ Double Bottom: It looks like a 'W' and shows that sellers are losing strength.

2️⃣ Triple Bottom: Three dips in price? Buyers might be ready to take control.

3️⃣ Falling Wedge: Prices are getting squeezed? A strong upward move could be coming.

4️⃣ Inverted Head & Shoulders: A big dip in the middle with smaller ones on each side? Buyers might be preparing for action.

Watch your charts and learn these patterns—they tell the story of the market! 🟢

#tradingtips

#tradingtips

#tradingtips

#tradingtips

#tradingtips

#tradingtips

Protect your capital like your life depends on it.

Because it does.

Risk what you can afford to lose, not your dreams.

Trade small. Grow big.

#tradingtips

🎄

🎄

#tradingtips

#tradingtips

#tradingtips

🙋🏻‍♂️Say Goodbye To Loss

VIP channel 💎
FREE For Our All Members
    Join Fast👇🏻❤️

https://t.me/+WETopPSBxFRhMjFk

https://t.me/+WETopPSBxFRhMjFk

Join☝🏻🛑

.

#tradingtips

#tradingtips

https://t.me/+WETopPSBxFRhMjFk

The owner of a forex broker tells how everything works on the inside.

Subscribe to Forex behind the scenes

Or on other social media:

YouTube

Instagram

X (Twitter)

Facebook

Threads

#tradingtips

#tradingtips

#tradingtips

#tradingtips

#tradingtips

#tradingtips

#tradingtips

#tradingtips

.

#

📈 Only systematic trading on Forex will lead you to profits! 💸The Gold Pro, Ice Cube Scalper, and US30 robots will help you start earning on Forex successfully today!
🔥 Performance: EA Gold Pro +989%, EA Cube Scalper and Universe +501%, EA US30 +20% 💸 

💯 I create original advisors based on strategies that I personally use in my trading! These strategies are suitable for trading on personal accounts as well as on PROP accounts!

📢I have a Telegram Channel where I share important analytics. For example, on November 3, I predicted Trump’s victory, the growth of Bitcoin and the fall of EURUSD after Trump’s victory.
Subscribe to the channel and learn more about my trading and the robots I use.

👉 Join now Algo trading Channel