Forex Trading Strategies 6

Currency Trading Strategy Number 30:
Although I have said that there are only four clues that you have to
look at for price direction – "bar reading," MACD divergence, pivot
points, and trendlines – there is actually a fifth. It's called "price."
Price is the number one indicator in the sky. It will tell you where it
wants to go. Let it point the way. It's like playing cards. Wait for it to
reveal its "hand." You just have to be patient and wait. It's called
"following the leader."

Currency Trading Strategy Number 31:
I was asked recently about multiple lots – in other words, buying or
selling more than one lot at a time. You can either "load up the boat"
at your entry point, or you can go at it one at a time – adding
additional lot(s), as price moves through each successive pivot point,
as it "reaches" for the end of its range. If you are confident that you
are "with the trend," and are using good money management
techniques, then there is nothing wrong with taking more position(s)
along the way. Or, you can do both – load up to begin with, and
buy/sell more, as price progresses through pivot points in its tear to
the finish line. Don't bail too soon. Remember, currencies trend well
(especially the major trend), and price knows where it wants to go.
Let it take you there. Use the "five" indicators – "reading bars,"
MACD divergence, pivot points, "price," and trendlines – to make
your trading decisions.

Currency Trading Strategy Number 32:
Be careful about taking trades in between pivot points. This is NO
MAN'S LAND, and dangerous territory. Better trades are made in and
around pivot points.

Currency Trading Strategy Number 33:
Make sure to take the time to draw pivot points on your 15 min
chart, which should be your main focus. This is like the radar screen
in the cockpit of an airplane. It is difficult to trade (fly) without points
of reference to look at. You don't need to draw them all. They
probably won't all fit anyway. At least have those that are close to
price action plotted on the chart. You can also plot lines on the 1 hr
and 5 min, but you shouldn't be spending much time there, so it may
be a waste of time. But, can't hurt. You should also draw trendlines.
Where price breaks a trend at a juncture with a pivot point, this is
very powerful evidence that price is going the other way. Plot your
MACD divergences. The more you see on the screen, the better your
trades will be. Draw a line down the screen (on the chart of course)
delineating start of session, and where you got your OHLC from to
calculate the pivot points for the current session. I think you get the
"point," pardon the _expression.

Currency Trading Strategy Number 34:
Just to re-hash and beat an old drum, the 5 min chart is like the trim
tab on a sailboat, for you sailors out there. It is small and
insignificant, seemingly, but very powerful as it assists in "steadying"
the course. Same too with trading, looking at the 5 min every once
in a while will give you some insight into what is happening
"underneath" the current 15 min bar that is forming. This is
important, especially at the end of a run, where price might be trying
to do an "end run" or "sneak attack" in the opposite direction to what
you're thinking, while you're not watching, of course. But, like I say,
don't dwell in "5 min land" as ex-stock traders are wont to do. They
are scalpers by nature, but will very quickly get scalped by the forex,
as one of my new customers has recently found out the hard way.
He now puts a trade on (with stop in place for sure), and goes to the
airport to pick up company, or goes outside to clean the swimming
pool – only to come back, and see how much money he has made by
not obsessing over every little movement. I'm not saying don't pay
attention, but what I am saying is too close is too close. Once you
catch the trend, and enter a trade because you saw something in
"reading bars," MACD divergence, pivot points, trendlines, or price
action, let price steer the course, and "wait patiently" for the next
event that will cause you to take action. Of course, that action will be
taken again because you saw something in "reading bars," MACD
divergence, pivot points, trendlines, or price action. If you don't see
anything significant, then DON'T DO ANYTHING. Sit on your hands.
Don't press enter whatever you do! Oh, and before I leave this point,
with a market maker I recommend, you don't have to leave the 15
minute chart to "peek" at the 5 min chart to see what's going on at
that lower level, because they show the tick-by-tick action right on
the 15 min chart, as the next 15 min bar is waiting to form.