How to cover or trail the position

It is very important aspect of trading and it is must to use "Trailing stop", specially when price rallied right after you open the position and those who don't check my earlier post then take a look at this chart.

Update of the chart of cad/jpy I posted yesterday

As I mentioned in my previous posts that it is necessary to understand the logic and when you have few points that cover you entry and force you to enter the trade then it becomes important that you ride the most part of the trend, specially when trend is as stronger as I have mentioned yesterday.

I have booked half of my profits in that trade and as price has shifted equilibrium then there is good chance that it carry the momentum through out the day but even I would be stopped out, there would no regret as It is planned well before the event has taken place

How to spot Intraday Scalping opportunities.

In this post I would like to cover few points when you scalp for Intraday purpose.

The first thing you need to spot is to see If there is imbalance still presence (First clue always is neutral day after breakout where seller's are passive)

Second thing to see if there is minor development area after breakout (Say if there is aggressive to mark the price again to the up after minor sell-off)

After minor development area, Price again end where it starts (End up as neutral day which will confirm that imbalance is still present in the market)

After you see these clues the next important area is what price does after testing that minor development area, if it show immediate aggressive buying then you can immediately enter the market but if that momentum fades out earlier you should get out quickly. For me the best clue is often the slow tempo, and then suddenly price breaks the equilibrium after the minor rotation area breakout and test and you can get some nice profits as in this case in the above mentioned chart.

Moving Market accumulation Price Action Basics

IN this topic I would like to cover the most important point where we can see strong buyers or strong money participation and "Accumulation of Moving Market" is a good example of this. Not most of the traders are aware of this fact that accumulation process can be done on moving market specially when we strong liquidation after this process and we see some strong "Protection Area" (As shown In the chart) is a good indication of strong money Participation.

Chart of eur/jpy simplifies the post

In the chart I posted above we have seen some strong accumulation which means that there is strong supply in the market and price rises of that low and that In order to move the price we see strong money slowly accumulates the price.

We use to see strong momentum building through the mid of the day and tempo is very low at the extreme which is a strong sign of "Imbalance". We need to see a strong sign of liquidation which comes after the breakout and that heavy selling had some protection area at the as price pause after test the low of those accumulation area and price again went sideways for a day or two and then "Breakout and Test" was good enough to enter and then price rallied strongly to test the highs once again

Momentum trading Best way to approach forex trading

I will update the text later, Busy in some assignments But I will surely update the blog today after the end of U.S trading session

How to trade Momentum

Example Of Momentum Trading

Recent activity spotted in Usd/chf

In this post I would cover How professional trade momentum, Basically it is not necessary that If somethings work for others, should work for you and momentum trading is no different, Because when You try to trade momentum you need understand few Important things and needs to build a check list.

A. Breakouts

B. Rejection After Breakout Should not go too far.

C. First attempt to rise after After breakout

D. Seller's behavior after rejection After First Attempt Failed

Following the above mention points, I would concentrate more on charts which clear the idea how professional traders and they don't need to keep sticking to the screen and wait for the opportunities but rather they eye some levels like rotation center, Momentum after breakouts, Levels protected, Reference points.

Although it is not necessary to cover all these points when you decide to change you trading style and opt for momentum (which for me is the best way to trade as It always tells you when to enter quickly and cover quickly before momentum fades out.)

In the above mentioned chart, there are few levels I have mentioned which are primary breakout and rejection levels and If you want to add few more confirmation life if there is neutral day after breakout and If that level is protected in the first attempt and market rotates around that protection area.

Any question asked will be replied with best of my knowledge.