Holy Grail - Best Forex Trading Strategy (and Indicator) that also works for Cryptocurrency & Stocks
Holy grail best forex trading strategy and indicator that also works for cryptocurrency and stocks by Forex Elite .com before we begin a quick note to visit Forex Elite .com for our forex mastery course that course offers some of the best forex trading strategies that are extremely important for you to know also make sure to hit the like button subscribe and comment for more videos now back to our holy grail best forex trading strategy and indicator that also works for cryptocurrency and stocks this video consists of three parts part one best forex trading strategy part two best forex indicator and part three forex secrets starting with part one best forex trading strategy we have a four-step process for you to trade forex professionally on a daily basis what we're looking for are a double reversal pattern at an important level at the right time thereafter we optimize our entry if you're interested to make money fast with forex trading then you need to follow our no-nonsense four-step strategy we're gonna start with the euro us dollar which had some excellent examples for us this week so let's get started with this trading day right here on the euro us step number one the double reversal pattern reversal number one was right here right at the tokyo open reversal number two was this row of greens followed by that row of reds this final red candle completed reversal number two step number two you want to make sure that the double reversal patterns are happening at an important level an important level may include either a daily pivot point or a figure in this example we have a figure level right here right where i'm drawing this line that represents the 1.1 figure level for the euro step number three you want to make sure that the second reversal this one right here is happening at one of the three right times as specified in our forex secrets video those three right times include either the tokyo open the london open or the new york open as you can clearly see this final reversal it closed exactly at the london open so it could not have been more perfect step number four you want to optimize your entry and typically with these trades we would enter right off the close of the final reversal let me go ahead and mark our entry in blue now there is a circumstance such as this one if the reversal candle is too large what happens in a scenario like this is that it doesn't give us our perfect two to one reward to risk ratio trade so what do you do in a circumstance like this you have to wait for a retracement somewhere around here so in other words you have to wait for a nice retracement until it gives you a perfect two to one reward to risk ratio so your entry was somewhere around there now your stop loss is comfortably behind the reversal patterns and what i love about this example it also has a daily pivot point here which makes your stop loss even more safer the more important levels in front of your stop loss the better take profit always a few pips prior to your next target daily pivot so somewhere around there is a perfect setting for your take profit never place your take profit on the daily pivot never anticipate price to actually go through the daily pivot as it did here always place your take profit a few pips prior to the next target daily pivot the most important thing to take away from this trade is if and when you have a large reversal candle you gotta wait for a small retracement getting at a perfect entry to satisfy our minimum two to one reward to risk ratio trade also remember this is a set and forget strategy you set your entry you set your stop loss you set your take profit and you go about your day and had you done that with this example this is about a 90 pip trade that was automatically executed set and forget strategy now let's move on to the next trading day right here and what i love about this example it couldn't illustrate our four-step strategy better and what i want you to guys to really understand is i want you to understand what's happening behind the scenes i don't want you to just technically trade this thing i want you to fully understand what these reversals signify and what these false breakouts such as this in reversal such as that one then what they signify is what market makers it's how they make money fast so if we just follow their strategy which is exactly our four-step strategy we're gonna make money fast just like them now how do they make money fast what they do is they initiate false breakouts at important levels being either daily pivot points such as this one or figures such as that one and what happens when they initiate false breakouts is they get 90 percent of retail traders to place a buy order to the top side like in this example here and then they simply reverse that's how they make their money fast they basically do our four step strategy and then they'll do it again right here false breakout up taking 90 percent of retail traders to place a buy order to the top side and then they reverse again so our four step strategy is the same strategy that market makers use to make money fast so you should too so let's go through our four steps on this one as you can clearly see reversal number one this is false breakout one reversal one false breakout two reversal number two step number two you wanna make sure that the double reversal pattern is happening at an important level an important level may include either a daily pivot point or it may include a figure in our example for this one we have both a daily pivot point this line right here and also a figure which is the 1.09 figure level so both these reversals are happening at two important levels the daily pivot point and the figure level step number three you want to make sure that the second reversal is happening at one of those three right times as you can clearly see this second reversal is right at the london open but take a look this what a good example to show you exactly when these reversals happen look at this tokyo reversal london reversal new york reversal but the rule with our four-step strategy is to make sure that the second reversal is happening at one of these three right times so this one was exactly at the london open could not have been more perfect step number four you want to optimize your entry and we did have an issue with step number four in this one and typically with these trades as i was saying we enter right off the close of that final reversal candle so your entry would be here the issue with this trade was that it just didn't give us a perfect two to one reward to risk ratio so your take profit was going to be somewhere around there always a few pips prior to your next target daily pivot but the issue was with our stop loss whether we set it here let me go ahead and draw this out so whether we set our stop loss here or behind that one or in other words regardless if it was behind both or one it still didn't give us a perfect two to one so we'd actually have to pass on this trade even though the structure was phenomenal so the lesson to take away from this is these are the exact style traits that you want to identify once you see a false breakout like this and a reversal right back into the daily pivot that is a huge signal this is a gigantic signal for you to pay attention to this trade all right look for the second reversal at either the london open or the new york open and if you get an entry that gives you a perfect two to one then you execute the trade however this particular example we never got a retracement like we did here in order for us to satisfy a perfect two to one reward to risk ratio so you'd have to pass on this one and that's what trading is all about you identify the pairs wait for the reversals if it gives you a good entry you take it if it doesn't look to another pair and had you done that this week there were so many good setups this week it was amazing and a small note on this trading day right here as you can see this was one very nice false breakout and reversal one we just didn't get a second reversal so this example right here you would stop looking at this example because it failed step number one there was no double reversal it just had one single reversal so again when you just don't have a double reversal you don't have your step one you go to another pair here are some more examples of our no-nonsense four-step strategy on the us swiss let's get started with this example right here step number one the double reversal pattern reversal number one is this row of reds followed by these greens that green bar completed reversal number one reversal number two is that row of reds followed by these two greens that green right there completed reversal number two step number two you want to make sure that the double reversal pattern is happening at an important level an important level may include a daily pivot point or it may include what we have in our example this line right here right where this blue line is that's the 0.96 figure level for the us swiss step number three you want to make sure that the final reversal this one right here is happening at one of those three right times as referenced in our forex secrets video those three right times are either the tokyo open the london open or the new york open this example happens slightly before the new york open which is perfect step number four you want to optimize your entry now with these trades we usually enter right off the close of the reversal candle that final reversal if it gives us a perfect two to one reward to risk ratio now we needed to wait for a small retracement to satisfy our minimum reward to risk ratio and we got that with this next bar as soon as it pinned this line right here the 0.96 figure level exactly where my mouse is exactly where the blue line is
is your exact entry for this trade which created a perfect 2-1 reward to risk ratio stop losses are always comfortably behind the reversal patterns and again i love this example because not only is the stop loss behind these reversals but it's also behind an important level here let's hypothetically say price was to retrace at this point it would have a figure to go through it would have these lows to retest and it would have now this daily pivot to go through before it touches your stop loss so this was an extremely ideal setting for this stop loss take profit always a few pips prior to your next target daily pivot so somewhere around there was the perfect setting for your take profit now remember this is a set and forget strategy so once you set your entry your stop loss and your take profit you go about your day and this trade would have automatically executed for 80 pips take profit set and forget now let's move on to the next trading day right here reversal number one is in this area right here and this is a very crystal clear reversal number two step number two you want to make sure that the double reversal is happening at an important level an important level may include a figure or it may include what we have in this example right here that line which is known as a daily pivot point step number three you want to make sure that the second reversal this one right here is happening at one of those three right times as referenced in our forex secrets video this particular example this beautiful railroad track was exactly at the london open the structure of this trade the timing of this trade could not have been more perfect step number four you want to optimize your entry and part of optimizing your entry is always making sure wherever you enter and wherever you set your stop loss and take profit that it satisfies our minimum reward to risk ratio of two to one again in this example we needed a small retracement usually we would have entered right there however again with this example we needed a slight retracement which we got right where my mouse is right where that blue line is that would have been your perfect entry to satisfy our minimum two to one reward to risk ratio stop losses always comfortably behind these reversal patterns so somewhere around there would have been a perfect area to place your stop loss take profit as always a few pips prior to your next target daily pivot so your take profit would be somewhere around there and again this is a set and forget strategy once you set your entry your stop loss your take profit this trade would have automatically executed for 70 pips set and forget and as you can see from this trading day right here this trade failed right around step number one because here is a very crystal clear false break young reversal back into the daily pivot but we didn't have a very clear-cut second reversal so this failed at step number one the proper thing to do with this particular example would be to go find another currency pair where all four steps were clearly present so this trading day stopped at step number one because there was no second reversal there was a very clear reversal number one but no clear reversal number two here are some more examples of our four-step strategy on the us yen for this week and let's get started with this example right here step number one to double reversal pattern reversal number one is that row of reds followed by these greens that green completing reversal number one reversal number two could not have been more perfect this two bar combination this red and this green that's your classic reversal pattern also known as railroad tracks step number two you want to make sure that your double reversal pattern is happening at an important level an important level may include a figure or it may include what we have in this example this line right here which is known as a daily pivot point step number three you want to make sure your second reversal is happening at one of those three special times this second reversal came slightly after the london open which is perfect step number four you want to optimize your entry so the perfect entry would have been right after the close of the second reversal pattern let me go ahead and mark our entry in blue and it will show you our exact entry as soon as that green bar closed right where my mouse is exactly where the blue line is that's your exact entry for this example take profit always a few pips prior to your next target daily pivot so somewhere around there would have been your perfect take profit setting now for this example the lesson is in regards to our stop loss as you can see i've already marked our stop loss with these trades usually we will place our stop loss behind both reversal patterns however for this particular trade to work for it to satisfy our minimum two to one reward to risk ratio trade it was not possible for us to place our stop-loss behind both reversal patterns so the lesson on circumstances such as this is yes you may place the stop loss behind only one reversal pattern if there is enough layers of protection prior to your stop loss as you can see here this example not only had a daily pivot right here it also had this line slightly prior to this stop loss is the 107 figure level only in a circumstance such as this where there is enough important levels prior to your stop loss it's sometimes okay to place your stop loss behind only one reversal pattern usually we place it behind both but it's okay in circumstances such as this where there is a daily pivot and a figure prior to your stop loss it's okay to place your stop loss behind only the last reversal pattern and remember this is a set and forget strategy so once you set your entry set your stop loss you set your take profit this trade was a hundred pips set and forget moving on to this trading day right here and this is a variation of our four-step strategy this is known as a retracement plus our four-step strategy so the retracement is this right here so you can see it created another higher high so once you have an example where you have higher highs you also have higher lows then you can look for a retracement which is this one right here here is the higher high a retracement then our four step strategy so with these examples i want to give you as many variations of our four-step strategy as possible so this example is known as a retracement plus our four-step strategy and the only way you can actually get a retracement is if you have higher highs and higher lows for this example if we're trading up if we were trading down it would require lower highs and lower lows but this example is higher highs higher lows retracement plus our four steps again i want to expose you to as many variations of our four-step strategy as possible to help you become a successful forex trader so let's go through our four steps on this one step number one is the double reversal our reversal was this one so as soon as it retraced it created our first reversal this very strong green bar this is reversal one this row of reds and it completes with this green bar right here that's reversal one this is reversal number to that row of reds and this green bar completed reversal number two step number two you want to make sure your double reversal pattern is happening at an important level this example actually has both important levels this line right here right where the blue line is is the 109 figure level and also this line right here is a daily pivot point so this trade is very ideal it's got both a figure this line right here and a daily pivot point step number three you want to make sure your second reversal this one right here is happening at one of those three right times as referenced in our forex secrets video either the tokyo open london open in europe open as you can clearly see this one is right at the london open which is perfect step number four you want to optimize your entry now this trade usually we would enter right off the close of that second reversal again with this one we needed a small retracement which we got with this candle right here the very next one it came and tapped the 109 figure that's the exact entry we needed to satisfy our minimum reward risk ratio of two to one your take profit as always a few pips prior to the next target daily pivot so somewhere around there and again with this example just like this one we couldn't place our stop loss behind both reversal patterns and again there is here's the lesson again which is if you have two important levels prior to your stop loss it's okay to place your stop loss after that final reversal so again this is a set and forget strategy once you set your entry you set your stop loss you set your take profit this trade would have automatically executed for about 60 pips set and forget moving on to the final trading day of the week right here step number one the double reversal pattern here's reversal number one with this row of reds going down that row of greens going up that green completed reversal number one reversal number two is this red followed by these two greens that green right there completed reversal number two step number two you want to make sure that your double reversal pattern is happening at an important level an important level may include a figure or it may include a daily pivot point this example has both a figure the 110 figure level and it also has a daily pivot point step number three you want to make sure that the second reversal this one right here is happening at one of those three right times this one came slightly after the london open which is perfect step number four you want to optimize your entry again this one needed a slight retracement to make our two to one reward to risk ratio work so your entry was right here typically we would enter right off the close of the second reversal we needed a small retracement which we got right there right where my mouse is right where the blue line is is exactly where your entry is stop loss comfortably behind these reversal patterns so this one it was okay to place your stop loss behind both take profit always a few pips prior to the next target daily pivot so your take profit was around there this is about 150 pip take profit actually it's a little bit more but regardless you want your trade to make sure it's a minimum of two to one this is actually slightly higher than a two to one but what happened here your trade actually didn't automatically execute these are send forget strategies so once you set your entry your stop loss you take profit you go about your day as you can see it didn't actually hit our 160 165 pip take profit so in this case the rule is with these trades when it's 4 to 5 pm london time which is about this area here if it has not automatically hit your take profit then you manually close the trade out 4 to 5 pm london time and had you done that here this is still about 140 pips take profit so even though it didn't hit your 160 ish set and forget take profit you manually could have closed this one out for 140 pips take profit not bad for this week moving on to part two best forex indicator right so the first thing that you want to do is visit tradingview .com as you can see i'm already on the homepage of tradingview .com once you're here there's two ways to launch your chart you can either click launch chart or you can search the exact currency pair the one to always start with is the euro us dollar you will pull the euro us dollar by typing in eur usd exactly how i just did and click on euro us dollar so as you can see it pulls this up what you need though is the full featured chart go ahead and click on full feature chart and as you can see the chart looks a little bit busy let me show you how to make this a little bit more easy on the eyes let's go ahead and minimize this whole panel right here if you you see this button right here in the top right corner go ahead and click that it will hide that right panel and a very important thing there's this indicator right here and you don't need any indicator other than the pivot points indicator the way you go about removing this indicator there's two ways the indicators will be listed right here click this x to delete it or just simply put your mouse over the indicator right click and click remove and that will remove it now the screen looks a little bit more pleasant you can also click this button to zoom out but i actually need to show you guys how to set up the indicator our pivot points indicator so let's go ahead and do that right now you set the pivot points indicator by first accessing the this plus indicators button go ahead and click it and since we need the pivot points indicator type in pivot and it will pull up a couple indicators here you need this one pivot point standard right as you can see it pulled it up behind this thing so go ahead and close out of this now what you need to do is actually configure the pivot so go here click on this button which is the settings button now let's configure the settings so for the type of pivot you want to set it as classic for the pivot's time frame you want to make sure it's set to daily for the number of pivots back this is entirely up to you i usually just set it at a hundred what this means is it will show you the hundred previous days with pivot points so if you set it to one for example it will only show you one previous day with pivot points if you set it to 100 it will show you the hundred previous days with a hundred examples of the pivot points on those hundred days so go ahead and click ok now as you can see here it displays an error message you cannot see this pivot time frame at this resolution let's go ahead and fix this error message and the reason is showing that is because the chart is set to a daily time frame so click this button right here and to change the time frame this is a day trade intraday slash day trading time frame so the one we recommend is the 30 minutes don't go below 15 minutes so 15 minutes minimum 30 minutes recommended one hour charts are also very good so let's go ahead and click on 30 minutes our recommended chart time frame and as you can see we have our daily pivot points ready to go and what you want to do at this point if you haven't already done so is create a free trading view account and save this layout so you don't have to repeat all the steps that we just did alright so make sure to save the layout create a free account in order to do so and that way you'll always have these when you log in it'll be ready to go now i want to show you what you do as far as your daily routine with trading view so remember how i typed in eur usd to pull up the euro now every single day you want to check these pairs so let me show you at least the major 7 so you can get familiarized with what to type to at least check the major 7. so the first one that you want to check is the euro us which is the one on the screen the next one you want to type g b p usd and that stands for the british pound us dollar you'll go ahead and click on that when you're ready to look at the chart i'm just going to quickly go through all the other ones you may want to write down these initials these names to save this for later because this is exactly what you're going to do on a daily basis first you'll type the previous one eur usd then you'll type gbp usd for the british pound the next one type usd chf chf let's repeat that again so that will pull up the us dollar swiss franc the next one you should type is usd cad which is the us canadian the next one on the list should be usd jpy and that's the us dollar japanese yen you would click this to actually pull the chart up another one on the majors list is aud usd and that pulls up the australian dollar us and the last one last but not least is new zealand usd nzd usd type that and it will pull this up all right so that's their daily routine that you're going to be going through first you'll type eur usd to pull up the euro then the gbp usd to pull up the pound and so on and so forth so let's actually go to the pound because i keep on typing pb it's great british pound usd let's go ahead and pull up the british pound and i just want to kind of familiarize you with the strategy the totd the trades of the day series strategy because a lot there was a lot of setups on the pound so let me kind of familiarize your you guys with that so last week we had a trade here is one of them this was reversal one reversal to reversal three take profit here was another i'm just going to show you the structures of the trade now these may not have been perfect two to one reward to risk ratio trades so i just want to show you the structures what we're looking for double reversal patterns at an important level at the right times so here's another one as far as the structure reversal one reversal two take profit let's kind of just go through the pound right here real quickly show you some examples of these trades here here is reversal one reversal two take profit here is a potential reversal one reversal to take profit reversal one reversal two take profit reversal one reversal to take profit so that's basically our strategy it's a double reversal strategy at an important level at the right times let's go ahead and let me see if i can here's another one reversal one reversal two didn't quite hit our take profit here but a good example nevertheless reversal one reversal two take profit right so lots of examples here's a perfect one reversal one reversal two take profit moving on to part three forex secrets the forex secrets that we'll be covering in this video include reversals that occur at specific times the most important pattern that you need to know important levels and how to predict the daily market direction starting with secret number one reversals that occur at specific times for every trading session that you see on this table here the big move of the day usually starts with some type of reversal the reversal is the start for the big move of the day and it's extremely important for you to identify the reversals of the day so you can get in on the action let's review this chart piece by piece so you can have a much better understanding of the major reversals of the day the london open starts at 8 am london time monday through friday the reversals usually occur around 7 am to 10 30 am london time monday through friday these are the exact times you should be looking for reversals during the london open now another important piece of information check for any forex news because chances are the reversals will happen immediately after or around the news releases definitely take a look at the news for the london open because it might pinpoint the exact times of the reversals now another excellent time to look for reversals is the new york open which is 8 am new york time monday through friday more specifically the reversals usually occur around 8 30 am new york time monday through friday sometimes it's right on the dot at 8 30 am new york time definitely keep your eye on that time for reversals and a third and final session that you should be looking for reversals is the tokyo open now their tokyo open overlaps with the sydney session the tokyo open is 9 a.m tokyo time 11 am sydney time monday through friday the reversals usually occur around 9 30 am tokyo time which is 11 30 am sydney time sometimes the reversals are right on the dot at these times again make sure to be scanning your charts at these very specific times to identify these big reversals of the day moving on to secret number two the most important pattern that you need to know is known as the double reversal pattern the double reversal pattern can be either a double top reversal or a double bottom reversal as illustrated here let's start with the double top reversal the number one represents the first reversal or top the number two represents the second reversal or top once you see the second reversal that is your signal to sell down also the second reversal usually occurs during the specific times as we discussed earlier moving on to the double bottom reversal pattern it's basically the same concept as the double top reversal except flipped with a double bottom pattern the number one represents the first reversal or bottom the number two represents the second reversal also referred to as the second bottom once you see the second reversal for a double bottom pattern that is your signal to buy up again the second reversal usually occurs during the specific times as we mentioned earlier to bring it all together you need to reference the specific times in secret one and try to identify either a double top reversal or a double bottom reversal pattern remember you're looking for the second reversal at a specific time these patterns happen on a daily basis usually around the specific times as we discussed this is the most important pattern that you need to know if you learn this and you do it well you will be a phenomenal forex trader and we're going to help you master this every step of the way now another important piece of information notice in the red and green rectangles the words important level you need to make sure that these patterns are happening at important levels which is exactly the topic of our next secret moving on to secret number three important levels equally as important as it is to identify the reversal patterns it's just as important to make sure that the reversals are happening around important levels the three important levels that you need to know are pivot points figures and support and resistance zones starting with pivot points first of all pivot points is an indicator that is typically included with many charting platforms make sure to add this indicator to your charts the daily pivot points are the ones you need to use on a daily basis to capitalize on the big trades of the day pivot points are truly one of the forex secrets for success it's the only predictive indicator it's the only one that tells you exactly where price is going to go on a daily basis the secret is pivot points you absolutely need to have them on your charts we can't emphasize this enough now a little bit more information on pivot points you look for double top reversal patterns at p r1 r2 r3 and r4 you look for double bottom reversal patterns also at p and s1 s2 s3 and s4 make sure to add the daily pivot points indicator to your charts and look for double top reversals and double bottom reversals especially at the p level which is known as the central pivot point many times the reversals that occur for example at the london open happen exactly at p the central pivot point so be sure to have your eye on daily pivot points moving on to figures figures are equally as important as pivots figures are price levels that end with 0-0 every figure is exactly 100 pips away from the next figure the table that you see here in the middle are some examples of figures if you're not familiar with figures you need to open your charts and locate these figures and familiarize yourself with them once your eye is on these figures you will soon realize that all major price movements travel from figure to figure this is definitely a huge secret that you need to know look for double top and double bottom reversal patterns at figures these are 100 pip moves that you can capitalize on if price reverses at a figure then guess where price is going it's going exactly to the next figure this is how major forex players move currencies figure to figure that's 100 pips for you if you can identify a reversal at a figure and trade it to the next figure moving on to support and resistance zones every day there are major reversals at pivot points and figures however if for some reason you can't identify reversal at either a pivot or figure then use any major support and resistance zone to look for double bottom and double top reversal patterns support zones are historic levels where price has not been able to break through to the downside price hits a major level of support and goes up resistance zones are historic levels where price wasn't able to break to the top side price hits a major level of resistance and goes down these zones are everywhere so if you can't identify a reversal at a pivot or figure then look for reversals at major support and resistance zones moving on to secret number four how to predict the daily market direction this is where everything you have learned up to this point comes together the only way you can truly predict the daily market direction is when price proves to you that it can't break a level once you see that price can't break a level and it keeps on forming reversal patterns that means the market direction is headed the other way the first example is how you predict the daily market direction to be up you identify a double bottom reversal pattern at an important level an important level may include a pivot figure or any major support and resistance zone and the second reversal in the green circle usually occurs around the specific times as we discussed for either the london open the new york open or the tokyo open if you spot this double bottom reversal pattern at an important level at one of the important times then the market direction for that particular session will most likely be up so what you would do is buy up after the second reversal pattern closes in the green circle area now the second example is how you predict the daily market direction to be down you identify a double top reversal pattern at an important level again an important level may include a pivot figure or any major support and resistance zone sometimes it has all three the more confluences the merrier and the second reversal in the red circle usually occurs around the specific times as we discussed for either the london open the new york open or the tokyo open if you spot this double top reversal pattern at an important level at one of the important times then the market direction for that particular session will most likely be down so what you would do is sell down after the second reversal pattern closes in the red circle area this is how you predict a daily market direction with the highest probability possible this is quality forex trading this is the information that you need to be successful as a forex trader well that concludes our holy grail best forex trading strategy and indicator that also works for cryptocurrency and stocks make sure to hit the like button subscribe and comment for more videos also be sure to visit our website Forex Elite .com for our forex mastery course that course offers some of the best forex trading strategies that are extremely important for you to know check it out Forex Elite .com
2021-07-12 16:28
