How To Trade
“How To Trade” is the most sought-after skill that both new and inexperienced traders desire on a daily basis in the Forex or Volatility Index trading world.
Basically, it is good to learn how to run a business before one start such business.
Learning how to trade is very important for you to remain in this business. Controlling your emotions when trading is also another topic of discussion for another.
However, there are many ways you can trade and make profit on a daily basis. One of these trading ways is to combine Support and Resistance with Candlestick patterns and Fibonacci Strategy.
Technically, the aim of this method of trading is to make profits while trading price retracement from support or resistance areas/zones with the use of Fibonacci tool.
You can use this method to trade Forex, NASDAQ 100, XAUUSD and Volatility Index assets on any time frame.
However, 30 minutes and higher time frames will be ideal for Forex assets, NASDAQ 100 and XAUUSD.
15 minutes and higher time frames will be ideal for Volatility Index assets.
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How It Works
(Try this on a demo account first!)
- Identify a trend on the chart. (You should not use this method in a ranging or consolidating market).
- Map out the swing high and swing low on the trend. Highlight the Support and Resistance area.
- Look out for a candlestick reversal pattern at the end of the trend (such as Doji, Engulfing bars, Harami, Pin bars etc). If there is no reversal pattern, wait till one shows up.
4. Draw your Fibonacci levels to highlight the trade entry (preferably at the mid point of 23.6% and 38.2% Fibo level) and take profit levels (Tp1 38.2%, Tp2 50%, Tp3 61.8%).
5. Place your stop loss a little pips below the zero percent Fibonacci level.
See the video on Youtube to learn more details on this method.
6. Enjoy your profit(s).
Note: There is no perfect strategy on how to trade currencies or Volatility Index in this world. So, there will be times when you will make some loss.
Especially, times when you don’t wait for candlestick reversal patterns to show up at the end of the trend before drawing your Fibonacci levels.
Finally, Let your winnings be more than your losses. This way, you will stay longer in the business.
(Broker: Alpari … https://alpari.com/en/?partner_id=1244646)
(Broker: Exness … https://www.exness.com/a/t0q1u0q1)