Related Papers. Download Free PDF View PDF. Trend Trading for a Living This page intentionally left blank Trend Trading for a Living Learn the Skills and Gain the Confidence to Trade for a Living.

Candlesticks Fibonacci and Chart Pattern Trading Tools. The 10 Essentials of Forex Trading -free-ebook-download. Technical Analysis. finance knowledge. The Art of Japanese Candlestick Charting. The information contained in this guide is for informational purposes only. I am not a financial advisor. Any legal or financial advice I give is my opinion based on my own experience.

You should always seek the advice of a professional before acting on something I have published or recommended. Please understand that there are some links contained in this guide that I may benefit from financially. No part of this publication shall be reproduced, transmitted or sold in whole or in part, or any form, without the prior written consent of the author. Users of this guide are advised to do their own due diligence when it comes to making business decisions and all information, products, and services that have been provided should be independently verified by your own qualified professionals.

By reading this guide, you agree that myself and my company is not responsible for the success or failure of your business decisions relating to any information presented in this guide.

I created this guide because I feel that every trader should learn how to read price action of the markets. By learning how to read price action, you can better time your entries, reduce your risk, and improve your trading performance.

Tradingwithrayner and this guide are my way of giving back for all the fortunate things that have happened to me. This guide lays the foundation to price action trading. To all my subscribers, followers and friends out there, old and new, thank you for the gift of support. Rayner Teo 5 www. Imagine: I want to sell 1 million shares of "Apple. In total, their buying pressure is 1, shares. Now, compare this with the selling pressure of 1 million shares from me.

Where do you think price is headed? In this case, there is one seller which is me against 10 buyers, but the price is still heading lower. The takeaway is this Role reversal 3.

Resistance - An area on the chart with potential selling pressure to push the price lower. Here are a few examples: 8 www. Role reversal Simply put If the price breaks below support, previous support becomes resistance.

If the price breaks above resistance, previous resistance becomes support. Here's what I mean But wait, that's not all… 10 www. Dynamic support occurs in an uptrend, and dynamic resistance in a downtrend. This is what I mean The answer is no. I use it because it fits my trading style. Ultimately you need to find something that suits you. Indicators are simply trading tools. There's an ebb and flow to it.

Wait, what's that? Impulse move - "Longer leg" on the chart, which points towards the direction of the trend. Candlestick size is usually larger, signaling momentum behind the move. Corrective move - "Shorter" leg on the chart, which is against the current trend. Candlestick size is usually smaller because of traders taking profits, without strong pressure. You can trade pullback on a corrective move, and breakout on the impulse move. Depending on your trading style, both approaches let you get on board with the trend.

Now, let's move onto to the next section It moves from a period of trend to range, and range to trend. This is the stage where traders who do not cut their losses become long term investors.

So, you've learned what the 4 stages of the market are, and the key characteristics to look out for. Now, let's move onto the next section Question: What is the trend of the market? Answer: What is your time frame? You're wondering: What does this mean? This means there are trends on different time frames.

You can have a downtrend on a 5 minute chart and an uptrend on a daily chart. Here's an example let's learn how to define a trend objectively. If ma is pointing higher, and the price is above it, then the medium term trend is up. If ma is pointing higher, and the price is above it, then the long term trend is up. Now, let's learn how to identify a range market A textbook example looks something like this: Now, before the light bulb in your head goes off with "buy low and sell high," I want you to see the reality of trading range markets.

Selling at resistance would get you stopped out as the price breaks above the resistance only to trade back into the range. Looking to "buy low sell high" would put you on the sidelines, as the markets go into a tighter consolidation.

Here's what I mean: 25 www. Now, let's move onto something interesting Example 1: a - Impulse move heading higher. This looks normal in an uptrend. This is something unusual. A possible complex pullback setting up. d - Corrective move that tested the previous low.

e - Impulse move going higher, which should lead to resumption of trend. f - False breakout. Corrective move has large bodied candles, and is getting steeper. This doesn't look good. g - A weak attempt by the bulls to regain control. Overall: Uptrend is getting weak. Support comes in around , which is a strong line of defense for the bulls. I will look to go long or stay on the sidelines.

No shorting at this point. If this happens, I'll look to short or remain on the sidelines. Example 2: a - Impulse move heading lower with a huge spike down possibly due to news event. Price continues trading towards the low.

b - Corrective pullback with small bodied candles. This looks normal in a downtrend 30 www. Where did the sellers go? d - Strong corrective move going higher with large bodied candles. The trend is possibly over and could transition into a range market. e - Sellers came in and tried to push the price lower. If it breaks below the previous low, the trend could resume. But it couldn't. f - Bulls taking control once more in an attempt to move towards the resistance area.

Overall: Bulls and bears are in equilibrium at the moment as both bullish and bearish candles are of similar size. I'll look to short or stay on the side. No longs at this point. If price breaks above the resistance area at 0. Example 3: a - Impulse move heading higher which broke and closed above resistance. Candle bodies are large, showing strong bullish momentum. Expect the trend to continue. Candle bodies are large, showing strong bearish momentum. It doesn't look good here.

Last line of defense comes in at the The unexpected news that there will be no cuts in the interest rates can therefore be expected to increase the value of the New Zealand dollar. There are certain news releases in the forex market that are referred to as high-impact news. As the name suggests, these news releases tend to have the highest impact on the forex markets , and so traders are well-advised to take notice of them when released.

The most important news releases will be the ones that relate to central bank meetings. To do this, they have several tools at their disposal. One of these tools is the ability to control interest rates. Traders, therefore, keep a watchful eye on central bank meetings to determine whether there will be any change in interest rates in the future.

Forex traders are notorious for rigorously analyzing the monthly statements issued by central banks and have been known to send markets into a spin if the slightest hint of interest rates is cut. Unemployment data is released in several different ways depending on the jurisdiction that you are in. In the United States, the highest impact release is inarguably the US Non-Farm Payrolls. These reports detail the change in the number of employed people over the previous month with the exclusion of those employed in the farming industry.

The US Bureau of Labor Statistics releases it on the first Friday of the month. It is relevant to forex traders because the US Federal Reserve takes this data into account each month when determining its interest rate policy.

If there is high unemployment, the Federal Reserve will likely cut interest rates to stimulate employment in the economy. This would mean that the value of the US dollar would fall, and so traders would enter short positions to benefit from this. The Consumer Price Index CPI is a measure of inflation. It details the changes in prices of various goods and services in the economy. If the prices of goods and services are rising, it is an indication that there is likely to be inflation.

At the time of writing, there has been a lot of discussion around the price of lumber in the United States, with many commentators believing that the increase in the price of lumber is a forewarning for the coming inflation.

Again, there is a direct relationship between CPI data and interest rates as the Federal Reserve monitors these releases and takes the information into account when determining interest rates. This is a comprehensive piece of data, and so it is difficult for central banks to make direct policy changes based purely on this information. However, it remains a primary gauge of overall economic strength and therefore can not be ignored.

If interest rates go up, so does the value of the currency. All roads appear to lead back to interest rates. Whilst these are the four main sources of high-impact news in the forex markets, the chaotic nature of the world around us means that there is always a chance that a black swan event may occur and cause markets to either fly up or crash down.

The U. President may decide to have an impromptu press conference and make nonchalant references to a trillion-dollar stimulus package that sends the U. S dollar soaring. Or, a pandemic could start. Forex traders must always keep a watchful eye on current events as there is always a chance a new development could impact the currency they trade.

Due to the number of relevant countries releasing data regularly, it can be difficult for traders to keep track of what is happening and when.

To help traders manage the release of high-impact news, several different calendars have been developed to keep track of important data or news releases. Below you will find the links to three of the most reputable calendars available online. As with the economic calendars above, there are many sources where you can find live news relevant to their trading. Below you will find the links to three reputable sites where you can find live news related to the forex markets.

Trading the news comes with several advantages for traders. This is because traders are aware of exactly when they will be trading and can almost guarantee that there will be a price movement when they do trade. As a result, the most common trading strategy in forex is for the trader to identify a currency in a period of consolidation or uncertainty before releasing a high-impact news item.

If there is a breakout because of the news release, traders can trade this movement in value of the currency. This can be done on intraday time frames such as the 1 hour time frame and below. To use this strategy effectively, there are several things a trader must do. Firstly, a trader needs to select relevant news to trade from. Not all news is suitable for forex trading.

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Need an account? Click here to sign up. Download Free PDF. The Ultimate Guide To Price Action Trading. Rory Rs. Abstract 0. Continue Reading Download Free PDF. Related Papers. Download Free PDF View PDF. Trend Trading for a Living This page intentionally left blank Trend Trading for a Living Learn the Skills and Gain the Confidence to Trade for a Living. Candlesticks Fibonacci and Chart Pattern Trading Tools. The 10 Essentials of Forex Trading -free-ebook-download. Technical Analysis.

finance knowledge. The Art of Japanese Candlestick Charting. The information contained in this guide is for informational purposes only. I am not a financial advisor. Any legal or financial advice I give is my opinion based on my own experience. You should always seek the advice of a professional before acting on something I have published or recommended.

Please understand that there are some links contained in this guide that I may benefit from financially. No part of this publication shall be reproduced, transmitted or sold in whole or in part, or any form, without the prior written consent of the author. Users of this guide are advised to do their own due diligence when it comes to making business decisions and all information, products, and services that have been provided should be independently verified by your own qualified professionals.

By reading this guide, you agree that myself and my company is not responsible for the success or failure of your business decisions relating to any information presented in this guide. I created this guide because I feel that every trader should learn how to read price action of the markets.

By learning how to read price action, you can better time your entries, reduce your risk, and improve your trading performance. Tradingwithrayner and this guide are my way of giving back for all the fortunate things that have happened to me. This guide lays the foundation to price action trading.

To all my subscribers, followers and friends out there, old and new, thank you for the gift of support. Rayner Teo 5 www. Imagine: I want to sell 1 million shares of "Apple. In total, their buying pressure is 1, shares. Now, compare this with the selling pressure of 1 million shares from me.

Where do you think price is headed? In this case, there is one seller which is me against 10 buyers, but the price is still heading lower. The takeaway is this Role reversal 3.

Resistance - An area on the chart with potential selling pressure to push the price lower. Here are a few examples: 8 www. Role reversal Simply put If the price breaks below support, previous support becomes resistance. If the price breaks above resistance, previous resistance becomes support.

Here's what I mean But wait, that's not all… 10 www. Dynamic support occurs in an uptrend, and dynamic resistance in a downtrend. This is what I mean The answer is no. I use it because it fits my trading style. Ultimately you need to find something that suits you. Indicators are simply trading tools. There's an ebb and flow to it. Wait, what's that? Impulse move - "Longer leg" on the chart, which points towards the direction of the trend.

Candlestick size is usually larger, signaling momentum behind the move. Corrective move - "Shorter" leg on the chart, which is against the current trend. Candlestick size is usually smaller because of traders taking profits, without strong pressure. You can trade pullback on a corrective move, and breakout on the impulse move.

Depending on your trading style, both approaches let you get on board with the trend. Now, let's move onto to the next section It moves from a period of trend to range, and range to trend. This is the stage where traders who do not cut their losses become long term investors. So, you've learned what the 4 stages of the market are, and the key characteristics to look out for. Now, let's move onto the next section Question: What is the trend of the market?

Answer: What is your time frame? You're wondering: What does this mean? This means there are trends on different time frames. You can have a downtrend on a 5 minute chart and an uptrend on a daily chart. Here's an example let's learn how to define a trend objectively.

If ma is pointing higher, and the price is above it, then the medium term trend is up. If ma is pointing higher, and the price is above it, then the long term trend is up. Now, let's learn how to identify a range market A textbook example looks something like this: Now, before the light bulb in your head goes off with "buy low and sell high," I want you to see the reality of trading range markets.

Selling at resistance would get you stopped out as the price breaks above the resistance only to trade back into the range. Looking to "buy low sell high" would put you on the sidelines, as the markets go into a tighter consolidation.

Here's what I mean: 25 www. Now, let's move onto something interesting Example 1: a - Impulse move heading higher. This looks normal in an uptrend. This is something unusual. A possible complex pullback setting up. d - Corrective move that tested the previous low. e - Impulse move going higher, which should lead to resumption of trend. f - False breakout. Corrective move has large bodied candles, and is getting steeper.

When it comes to trading from the Daily timeframe, yes, that is something that can be. Being able to accurately answer this question is vital. This strategy works by opening a large number of trades with the aim of making a small profit on each trade. Trading between price zones is about identifying support and resistance points. Discover the highest and lowest bounces in the previous year and place an area at each one of them.

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