If you live in Australia or in Asia, it’s alright to trade Forex during the Australian session, but you need to focus on the Asian pairs. This means that you should be trading Forex during the London and New York sessions or if you are trading stocks, you should definitely trade them during the New York session. You need to trade during high volume hours and trade instruments that are volatile enough. We are also going to look for at least a one to two risk to reward ratio. In this lesson, we will focus on the 50-minute chart for day trades and we’ll be looking to get 50 to 60 pips out of every trade. But if you are not comfortable holding your trade for hours at a time, you should not be trading the hourly or the four-hour chart. Psychologically speaking, if you don’t like to get stomped out a lot, you shouldn’t trade the one-minute or the five-minute chart. You might get cut in some noise that is not an extreme level and you will get stomped out more often. The lower you go, the more fake set ups you will experience because on the lower time frames, you will get a lot of market noise. And of course, there’s something very important here. This means that if you’re trading the five-minute chart or the fifty-minute chart for example, you will get a lot more set ups using just extreme levels and price action, than if you were trading the four-hour charts, for example. The lower you go, the more set ups you will get daily. It’s not the same to trade the 50-minute chart at an extreme level of the 50-minute chart than an extreme level on the four-hour or daily chart. This means that the higher time frame you use to analysis price action on and to trade off, the longer you will have to hold your trades. The first thing is the higher you go, the longer you will have to hold your trade. This very simple system works on any time frame, but you need to understand a couple of things before we go forward. Just by using extreme readings on the oscillator and price action, you can start profiting from the financial markets. The easiest way to do this is to plug an oscillator into your charts and trade extreme levels. In this case, we are just going to use one oscillator, the oscillator of your choice and the pure price action to day trade. Sometimes, beginner traders will clog them with a lot of indicators that actually show you the same things. When you’re starting out, you don’t want to clog your charts with lots of indicators. As you may know, my charts have a lot of indicators in them and every single one of those indicators has a purpose on my chart. When we are trying to build our system, you should start focusing on one indicator at a time. In this lesson, we’re going to start with a simple system where we are going to use an oscillator and price action to day trade. Welcome to the eighth module of the advance technical analysis course, where we are going to put everything that we have learned together.
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