How to locate good risk Reward opportunities in Forex Trading

Hi , I am continuing from where I left last month. The point to target now is how to be patience and look for trades and what type of edge you can have and how you can spot good Risk Reward opportunities.

I'm hereby simplyfying the process of locating a trade. Trade locations can be everywhere but you need to look around and see what are the reasons and logic to take the trade if at all it has to rally in the direction of the trade.

Process of eliminating the Risk or getting high probability trades with Good Risk to Reward

I always look around and see the weekly chart once at the end of week to see if there is some synchronization between trade location and what relationship it has on lower time frames & only then I decide to look around in the coming week, when or if price approach that trade location.

Chart below explain why I dont look around too much for help or not concerned at all what happening out between U.S & China. I just pick my chart & try to cut losses as much as I can & take the trade & set the stop and target.

Chart speaks louder than words or mare assumptions. That trade location is not too far away from Eur/usd trade & If that is right then we will probably see 1.1277 hold the downside risk & rally to atleast 1.1488 is possible but we need to see how it is approached as I'm still expecting an upside rally from 1.1290 area before approach to that trade location.

Rest I'll post an update soon, If an when price start rallying again, but there is no risk to downside in Euro is seen this current week or the weeks to come.

Euro is aproaching crucial Price Action zone 1.1290 Origin of Down move

Last time, I made a post on euro around 1.1248 area which cap the upside and went to as down as 1.1100 ish area & now as price is lot more bullish but still vulenrable around 1.1270 area & I would keep and eye on how price Approach crucial 1.1290 area as it could be turning point for euro if it breach 1.1290 & 1.1330 area.

Euro dollar Price Action Zone Strategy recommending a turning or reversal

Its not difficult to find turning points in euro at the moment. Falling trendline from the top & resistance 1.1270 capping the upside & a bullish move from here will surely get headwinds around the crucial 1.1290-1324 zone. I would still put my stops around 1.1340 to protect from excessive buying and complete stop hunting before we see any move down towards 1.1070 area.

Crude oil target hit . looking for recovery And then see price Action around 57.00 Area

Yesterday, I post the target of Crude oil around 53.20 level ( See My earlier post here> But I never expected the target to be reached in one session but that is what price action is all about.

Aud/cad is facing headwinds around 0.9420 area

As I have stated so many times in my blog that I only trade locations and failures and recent trade of crude oil future was one of the prime example of 1:30 risk reward & now I'm target Aud/cad for the next week. Below I'm posting the weekly, daily & h4 chart to clear off the doubts where we should look for PA to respond.

Price Action is already give me some clues of fake attempts to rise of demand levels below after getting rejecting from Support resistance Flips & it still require the final test of the level 0.9420 for the rally towards the low around 0.9320 which is also the structure low of the recent rally from bottom.

Prime Trading examples includes few things which are syncrhonization of the weekly, daily & h4 chart & all the price Action followed the same old techniques of failed patterns and final stop hunting towards the bullish trend which will end soon and we could see a low of 0.9070 area to be tested once again.

My stops would be around 0.9448 area & my first initial target in Aud/cad would be 0.9330 & then 0.9242

I will update the chart on Monday on most probable price Action next week.

Crude oil plunge after break & targeting 53.50 Area

As, I mentioned previously that I'm bearish on Crude oil futures ( You can check my latest post here ). I'm still targeting the lows of the rally from confluence point of view & target was triggered after weekly supply around 64.00 hold the upside momentum & then we saw technical moves around 57.00 area when I pointed out few stop hunting moves & finally that level was given away by bulls yesterday after Crude oil futures data released & puts pressure on the WTI again.

Take a look that Chart below

In the post below, I've managed to spot out real time trade of usd/cad in which I've spotted a nice rally through supply & then retest of the small demand zone which triggered the entry & you can also take an entry around these levels at intraday highs with stop below yesterday low and see if we can make it count.

How to track best opportunity in Trading with minimal Risk

I have spotted out few very good and easy techniques to trade forex. Below is the chart of Usd/cad in which we see a nice Rally base rally through consolidation zone & flags that hold the price down . RBR through that zone & then one nice bullish strong candles through the top of the h4 supply.

After we witness a strong rally through the supply, yesterday price action moves in between that patriot candle telling us that price will find supply or demand again through the low of candle with no risk & atleast there was 10 time rewards with 8 pips stops & 80 points target around 1.3560 area.

Time to Revive the Forex Education Stop hunting process

As all of you know that Forex is a place where there are enough orders to execute the facilitation & in case if there are not enough orders, price will remain in consolidation mode for days, weeks and even months. Forex price Action moves with orders in the opposite side & when enough orders are collected, then price does moves rapidly against the large orders of Retail Traders or investors. This can is done highly by investment funds, hedge fund managers, banks & by and large market maker brokers.

Just imagine if you are broker of a large scale & you have orders execution report of your traders & when you know 70 percent of traders are long, then you create an environment to hunt stop losses and move the price in the favor of 30 percent of traders, who keep involved in trading and make sure that they have enough profit to execute their next trade.

Forex Order Flow & stop hunting process Explained in Chart below

I took couple of trades in last month with zero to minimal draw down & that can happen to you at large if you keep yourself involved in most of the price action techniques I have explained since years. In first chart, I took an Aussie trade, Candle that left the zone had enough momentum and if you take a look left, then you see a drop base drop with momentum and false retests which tells you that there are traders who are long at false demand and as price hold these areas above demand and there was good reason for us to believe that most of the traders are long there.

IF there are not enough order flow,price will consolidate & create new zone here and there to encourage long trades & this is what we always need to be aware of while executing a trade that we need to remain alert where the stops are placed and that is how we can have edge & always take trades that are offering atleast 1:7 or more risk reward because bit of looses here and there will make up for a trade when it is time to trigger a trade.

Euro dollar Expected price Action in coming week

Euro is all set for bullish rally to test the long term resistance around 1.12570ish area, but are we expecting that rally to stall at this time of risk aversion. I am eyeing the fake test of 1.1270 area with euro fail to reach the 1.1291 area & bears again attack this area for one last time to test the demand level around the recent lows.

No matter what happens with price, I always look at the chart and then decide.

Forex price action are not based on assumptions and rumours, although there are chance of rate cuts in U.S are on the cards with no inflation in U.S and adaptive policy measures taken by Fed, but that can put impact on retail traders to remain bullish on Euro with the break of 1.1300 line & that is why this area is very crucial.

Take a short at 1.1290 line & put the stops around 1.1327 level & see if we can test 1.1100 again, this trade offers 1:7 risk reward with reversing the trade after that price line is breached.

Possible price Action zone in Euro is sighted in the chart below

It is a question of concern for me to where to look for opportunity in the euro but If we have clear breakout of 1270 area, then there is doubt in my mind to whether it would be good to short Euro around the levels I mentioned below.

But price Action techniques told me to stick to the plan and watch for Price Action in the supply zone which was created on weekly with a shooting star mentioned by arrows

I would rather wait for the price action to unfold on h4 timeframe to look out for best area to short again . I already had good profits shorting euro around 1240 levels , So I can afford to risk few extra pips but I would advice to look for update first on the blog before taking any trade. Touch Trade is possible but first approach to Price Action zone is awaited & then we possibly will caught reaction.