The Hanging Man Forex

The Hanging Man Forex

The Hanging Man Forex – The Forex Scalper:


The Hanging Man Forex is a Bearish candlestick pattern at the end of an uptrend.

Mostly appears whenever there is a significant sell-off close to the markets high. However, buyers are capable to lift the pairs price up again so it closes nearby the opening level. Mostly a sell-off as seen as loss of territory for the Bulls. It shows weakness.

The Hanging Man Forex


As I said before, the Hanging man Forex is Bearish when occurs after an important uptrend. I hear you thinking. This patterns can easily occur after a downtrend as well right? The anser is yes indeed. However, when that happens it’s called a Hammer. Recognized by small red bodies (small margin between open and close prices) and long lower shadows (the lowest is significantly lower as the open high and close).

The Hanging man has no or almost no upper shadow and a lower shadow at least twice as long as the body of the candle. The lower half of the candles shadow will give is the pressure of selling. A terrific Price Action trade setup is when the formation is set at a Resistance level.

Step 1 is marking the Hanging man candlestick formation with your rectangle tool. Be sure that you are at your highest level of accuracy here. Draw from the top shadow to the lower shadow and stretch the rectangle a little to the right (so you give the price a little space to play).

In the example below we see a weekly Hanging man.

the Hanging man candlestick

Once emphasized the Hanging man candlestick you move on to the daily time frame. In this example the Hanging man was spotted at the weekly chart. As shown below at the daily chart, we have zoomed in to have a better view at the price action.

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We’ve just waited for the momentum to change, the Resistance stood ground and the trend has reversed.

Want to know more about trading in forex or do you want to join the forex group?

Please contact me so that I can explain you much more about what we have to offer.

Looking for good Forex education? Look at www.theforexscalpers.com
The best Broker? Look at 
IC MARKETS.

https://theforexscalpers.com/2017/11/27/trader-mindset-theforexscalpers-com/
 
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Best Supply and Demand Forex Trading Platform

Best Supply and Demand Forex Trading Platform

What is Supply and Demand Forex ?

What exactly is supply and demand Forex? Supply is actually the amount that is available and demand is the amount that is requested. If you think about Supply and Demand, it is actually very simple.

Just imagine that you sell bananas from your own farm on a local market. And you do not necessarily have to sell all your bananas.
Because you can eat them just as easily as anyone who buys them from you.

Supply and Demand Forex

If bananas reach only 1 dollar per bag, you may be willing to sell 4 or 5 bags. But if the price rises, you decide to make more available. Up to 10 dollars per bag. At that moment you are more than willing to sell every last banana you have. Just because you can easily take all the money you have made and buy something else to eat.

How do you draw Supply and Demand Forex ?

Supply and Demand Trading describes 2
types of zone entry’s that are ‘Sell at Supply Zones’ and ‘Buy at Demand Zones’.
There are 3 rules in trading Supply and Demand forex.

  1. Always look to the left.
  2. Sell at Supply Zone.
  3. Buy at Demand Zone.

Below is an example of Drop Base Drop. Drop Base Drop is a type of supply
zone for a setup for a sell.
The bullish Candle (BASE) that tries to withstand prices on
the base produces good buying and selling areas here.
So price will return at the spot and continue with the DROP price direction.

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I often draw my supply and demand zones on an undecided candle. Often this works well for me and my supply and demand forex zones are fairly accurate.

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Above is an example of Rally Base Rally.
Rally Base Rally is a type of demand
zone for a buy setup.
The bearish Candle (The Base) that tries to withstand prices on
the base produces good buying and selling areas here.
So when price return at the base the price is in balance and continue with the RALLY price direction.

Supply and Demand Forex Trade

Of course there are many more ways to trade with supply and demand. Everything about this in my book.
And maybe I’ll write another blog here another time.
It is too much explanation to give in 1 blog.
Below are a few important points that should not be forgotten:

Important that you must know to trade Supply And Demand
Rally= Buyer exceed Seller
Drop= Seller exceed Buyer
Base= Seller and buyer are equal to each other.

Supply and Demand Forex Online

Want to know more about trading in forex or do you want to join the forex group?

Please contact me so that I can explain you much more about what we have to offer.

Looking for good Forex education? Look at www.theforexscalpers.com
The best Broker? Look at 
IC MARKETS.


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Fake Out Forex – How To Learn To Trade The Forex Markets

Fake Out Forex – How To Learn To Trade The Forex Markets

How to spot Fake outs Forex

A Fakeout (Fake Breakout) is a form of manipulation to trap breakout traders.
If a breakout trader sees that there is a big breakout which breaks through a strong resistance or support, he thinks it will continue to break into the end of the world.
However, the price makes the reverse and then it comes back to the stop loss of the breakout trader.

Fake Out Forex

Fake Out Forex

Back in the days when I just started trading, I always reacted immediately to a breakout.
Then I lost continuously because the breakout turned out to be a fake out. But how do you react to a breakout? The key is to have patience and to wait for the signals. Often there will be a retest before a real break takes place. Do you already see that the price reacts to the Supply or Demand bias as the example below you can almost be sure that it is a fake out.

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How do you recognize Fake Out Forex

The Fake out must have some resistance / support wicks.
It will always FakeOut to the base supply and demand above the resistance wicks or under the support wicks.

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Wait for the Signals to recognize a possible Fake Out

There are many more signals to which you can recognize a possible fake out. I can not go into this blog too deeply in this subject, but it is important that you learn to read the market.
You have to be able to feel the market and recognize changes in behavior, for example.
That is why it is always smart to start with 2 or 3 pairs that you can optimally analyze.
Get to know the pair and get to know their movements.

Fake Out Forex

Even I stupidly enough step into a fake out still sometimes .. But do you know why? Patience!!!!! trading requires a lot of patience.
Only then can you get the most mistakes out of your trading style and you will get more take profits than stop-losses!

Well come on and start learning to read the market just like a very good book.
Get to now it inside and out.

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Want to know more about trading in forex or do you want to join the forex group?

Please contact me so that I can explain you much more about what we have to offer.

Looking for good Forex education? Look at www.theforexscalpers.com
The best Broker? Look at 
 IC MARKETS.

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How to use Trendlines in Forex Market

How to use Trendlines in Forex Market


Trendlines
trending market is one in which price is moving in one direction.
Ofcourse, price may go against the trend every now and then. But when you looking at the longer time frames it would show that those were just retracements.

You can often recognize trends at higher highs and higher lows at an uptrend and Lower Highs and Lower Lows in a downtrend.

Below I have a example of an uptrend.
This is the pair of EUR / USD and the time frame is the daily.

Trendlines

Trendlines

I always start by looking at the line chart.
This is because I can easily recognize such patterns in this way and also because I like it a bit better to draw my lines.

You can see the Highs and the higherlows on the image above.


Trendlines


Mostly, in an uptrend you will see a obvious pattern of HH and HL from the market’s swing points. And in a downtrend you will see a obvious pattern of LH and LL from the market’s swing points.
We can see an uptrend was in place in the chart above. As you can see from the clear pattern of higher highs and higher lows.

If a market is trending lower, I want to pay close attention to the recent swing highs. And in an uptrend we will focus on the recent swing lows. We do this because it not only shows us the overall trend. But it also shows us via the price action if the trend is still intact or not.


Trendlines

For instance, if you have a series of Higher Highs and Higher Lows as in an uptrend. When you see price break down past the previous swing low, it’s a strong indication that the uptrend might be ending. Conversely, in a downtrend we see Lower Highs and Lower Lows, and when price breaks above the previous lower high. It’s a strong indication that the downtrend might be ending.

Trendlines


Trendlines


Finding the market trend is tricky, especially for beginning traders, and most traders will find this to be a sticking point in their trading development. It’s OK to understand various entry triggers and setups, but if you’re trading against the dominant market bias, your probabilities of making money decrease dramatically. There is always a bias, and as beginner traders especially, you would be well served to stick with it.

Want to know more about trading in forex or do you want to join the forex group?

Please contact me so that I can explain you much more about what we have to offer.

Looking for good Forex education? Look at www.theforexscalpers.com
The best Broker? Look at  IC MARKETS.

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Support and Resistance – The Forex Scalper

Support and Resistance – The Forex Scalper

Support and resistance levels are points in the market where the price has a high probability of reversing. Knowing where these levels form and the reason why they form. Can help you in predicting when the price is likely to reverse and start moving in the opposite direction.

Support and Resistance Levels

I always start drawing my support and resistance levels on the linechart.
Because I think that I have more overview where the levels are exactly.
Below you can see an example of a line chart and how I determine my support and resistance levels on this line chart.

Support and Resistance

Linechart Support And Resistance Levels

The Support and resistance levels get their name from what they’re expected to cause the market to do upon being reached. Support levels are supposed to support the market and stop it from moving lower. Whilst resistance levels are supposed to stop the market from moving higher. Thus causing it to resist higher prices. Because support and resistance levels cause the market to do different things. It means they always form either above or below the current market price.

  • Support levels always form BELOW the current market price. And are points where the market has a higher probability of reversing back to the upside.
  • Resistance Levels always form ABOVE the current market price and have a good chance of causing a reversal to the downside.

Now look at the example below.
Now that I have changed the Linechart in the candlestickchart you see it all a bit better.

Support and Resistance levels

We know for sure that these levels are actually support and resistance levels. Because they all caused multiple reversals to take place. And we know that they are specifically resistance levels due to the way they are all found above the current market price.

Support and Resistance Forex

Support and Resistance Levels

In combination with reading the candlesticks, understanding what a fake out is and how you can recognize it. If you understand what a retest is, and ofcourse good risk managment you can be successful with this strategy.
I have outlined the above chart for you.
Especially in the way I view the market and act on it.
Take advantage of it and keep practicing to read the market perfectly.
Just like you will do with a good book.

Looking for good Forex education? Look at www.theforexscalpers.com
The best Broker? Look at  IC MARKETS.

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