Currency forex strategy trading wednesday
When was the last time you entered a trade and it immediately moved against you even though you felt confident the market was going to move in your favor? When was the last time you traded a breakout and got stopped out?
I have made most of my money as a trader by using contrarian trading approaches like false-breaks and my proprietary fakey trading strategy. Joking, I know you are probably thinking that right now, so here you go….
In other words, the market does not close outside of the level being tested; rather it leaves behind a false-break of it. These false-breaks are huge pieces of evidence for impending market direction, and we need to learn to use them to our advantage instead of becoming their victim. Typically, we see these scenarios unfold as a trending market becomes extended and all the amateurs jump in right before the counter-trend retrace, or at key support and resistance levels or at consolidation breakout scenarios.
However, this is the deception; trading off feeling and emotion is exactly why most traders lose money in the markets. However, the truth of the matter is that markets ebb and flow and they never move in a straight line for very long. A bull or bar trap is typically a 1 to 4 bar pattern that is defined by a false-break of a key market level.
These false-breaks occur after large directional moves and as a market approaches a key level. A bull trap forms after a move higher, the amateurs who were on the sidelines watching a recent strong move unfold cannot take the temptation anymore, and they jump in just above or at a key resistance level since they feel confident the market now has the momentum to break above it.
False breaks of consolidation or trading ranges are very common. The best way to avoid this trap is to simply wait until there is a clear close outside of the trading range on the daily chart, and then you can begin to look for price action trading signals in the direction of the breakout. The Fakey setup is one of my all-time favorite price action setups and learning to trade it will do a lot for helping you to understand market dynamics.
Essentially, the Fakey is a price action pattern that requires there to be a false-break of an inside bar setup. So, once you have an inside bar setup, you can watch for a false-break of the inside bar and the mother bar. Now, I am not going to get into all the different versions of the fakey trading strategy today or the different ways to trade it, but you can learn everything about my proprietary forex fakey trading strategy in my professional Forex trading course.
As price action traderswe can use the price action of a market to anticipate false-breaks and look for them at key levels as they will often set off significant changes in price direction or even a change in trend from these key levels.
Ask yourself how prices reacted during each daily session…where did they close? The close is the most important level of the day, and often if a market fails to close beyond a key market level, it can signal a significant false-break. A failure of the market to close beyond a key market level can lead to a large retracement or a change of trend. Thus, the close of a price bar is the most important level to watch, and the daily chart close is what I consider to be the most important.
The chart below shows the price breaking upwards to new highs and then crashing back down. To those who follow me regularly you will note that this was actually a classic fakey setup, and is clear evidence that this price action strategy has worked for decades. If I had to leave you with one crucial piece of advice for your Forex trading career, it would be to drop everything right now and start studying false-breaks and contrarian trading approaches. I teach my students a plethora of different price patterns to look out for when trading false-breaks and fakey setups.
If you were to learn only one single trading strategy to apply in your Forex trading, false-breaks would be on top of the list.
And I might actually get there, thanks to you, Nial.
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What a gift you have given! I am slowly but surely coming to realise that absolutely everything you say about trading is just so damn right! You ride on tiny hints from these bars, successfully. Nail I thank God for using you to touch my life, remain bless as you are blessing us. You are the best of the best.
I have a question for you sir.
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What is the difference between failed pin bar strategy and false break trading strategy in ptice action. A friend introduced your website to me and since then I found this very interesting and educative.
I say thank you for sharing this with us.
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May God continue to bless you. But PIGS will runescape how to make money for non members be PIGS, and will consistently be slaughtered. Thanks money earnt in for your insights. It will be make me better on trading. I have been trading for 2 years in Japan.
I could improve my trade recently because of your lectures. I agree with Tom above who said it would be really helpful if you showed possible trade entry points with this and your other strategy examples. This article like other articles has covered basic market movements and concepts.
May God bless you and your family. Dear Nial, Great articles. Awesome insight, unparalled patience, much dedication. I got your course, great material, indeed. Worth every penny spent.
False break is the most interesting and the best phenomena I learnt from Nial for trading. Thank you a lot. What is worth more than the money making from trading for NIal must be the praise of his followers. He is one person who deserves it.
Forex b92 a fool proof strategy for whom is disciplined. Hard thing is to learn to be able to pull the trigger against the crowd.
In deed, this is wonderful lesson, I must stick to ur lessons. God bless u for ur generosity. I am not new but did not understand the Charts. Thanks for helping me and peoples like me. On many of these False breaks they show exhaustion candles or what we call pin pars signaling the end of both and up trend and a down trend. The longer the wick the wick OR tail the better either way. The importance of drawing support and richest stock broker lines is so important.
The he who gives he shall receive. Keep up the generous work Niall!!! Hi Traders What a laid back article yet simple but profound. If you think that you can blend up your own ideas with PA strategies then perish the thought of success in FX market. Bottom line, follow PA strategy thoroughly and fully without blending it with your ideas of what may work and fraud stock brokers examples your success skyrocket.
Thanks a lot for how chinese sellers make money ebay such a good information with examples. Keep it mossberg 930 spx parts list sir. NIAL sir wanted a typing job from home for your service.
May GOD bless you. Only some people in the world have good intentions on others welfare. A friend posted this and gave me the link. I call currency forex strategy trading wednesday friend and he sure got it from a friend.
Are you a friend of my friend? Thanks to Nail, friend. When you start approaching the market from that angle the picture suddenly becomes a lot clearer. Thanks Dear Nial Very Useful point which i am sure many traders got trapped in that many times. Thanks Dear Nial Very Useful point witch i am sure many traders got trapped in that many times. All hail the god of Forex Trading. I am addicted to your lessons Nial. Fakey setup is one of my best and i learnt it from you. Respect to the Alcapone of Forex trading.
If I am to choose one setup for forex trading then it would be fakey. Fakey works best when it is traded in the direction of the daily trend. Master, This is indeed, is from a Master and this article is mpa group malaysia forex sleeping and waking up and sleeping with again so that it becomes ones second nature.
Know the feeling all too often of opening a trade and then it goes against me. Makes a lot of sense. Time to put your theory into practice. Wow I just had a revelation!! Thanks Nial, this has really built my confidence in my trading strategy! Thank you Nial for this artical. Just when I was beginning to lose my PATIENCE, along comes another reminder from you about jumping the gun. Thank you for keeping me informed and on my toes. NIAL YOU ARE THE BEST….
I love to read your articals, its amazing and full of knowledge, the way you explain it outstandingwaiting for opening account and enter in member area. Keep up good work Nial. Another great article, likely best one yet. Everyone should be reading and writing you comments. Your articles always add knowledge to the already huge knowledge base.
Hope I can make one of your seminars. Your email address will not be published. Notify me of follow-up comments by email. Notify me of new posts by email. Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information.
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Futures, options, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in forex, futures, and options and be willing to accept them in order to trade in these markets.
Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice.
We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results. Here is a visual example of a false-break of a key market level: Types of False Breaks 1.
Classic Bull and Bear traps at key market levels A bull or bar trap is typically a 1 to 4 bar pattern that is defined by a false-break of a key market level. False-break of consolidation False breaks of consolidation or trading ranges are very common. False-breaks can create long-term trend changes As price action traderswe can use the price action of a market to anticipate false-breaks and look for them at key levels as they will often set off significant changes in price direction or even a change in trend from these key levels.
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