How to set your eyes on buy, sell, or do nothing in forex trading

Hello, it’s Kei from Japan. Today, I will talk about how to set your eyes
on 1 direction when you look at a chart so that you won’t be fooled around by it’s
movement. You know, sometimes the market looks to be
uptrend, or looks to be downtrend, like sometimes the market looks lower high, higher high and
it’s a bull trend, or lower low, higher low and looks it’s a bear trend. But unfortunately, the actual chart is not
that simple, it’s way more complicated with many different types of patterns, and that’s
the reality when you actually look at a chart and trade. So today, I will teach you how to differentiate
whether it’s still a trend or not with just 1 single chart pattern so that you won’t
be fooled by Mr. Market any more. Alright? So if you like this topic already, please
press a good button and make sure to subscribe to my channel for my future forex videos like
this. So, let’s get started right now. For most of the traders, buy or not to buy,
sell or not to sell are the questions after all. And you will keep asking yourself these questions
if you are not clear about the momentum of the market. So today I will teach you how to check the
momentum clearly with 1 single price action. And after you watch this vide today, those
kind of questions will be gone, hopefully. So this is very important, alright? So here we go. Here is the only thing I want you to know
about trend. That is, a trend continues until a reversal
signal appears on the market. A trend continues until a reversal signal
appears. Now, look at these lines. First of all, let me clarify what the trend
is. You may already know this but just make it
clear. A definition of trend is when the price moves
lower high, higher high, this is a typical bullish momentum, and when the price goes
lower low, that’s called the bear trend, right? And remember what I said earlier? I said a trend continues until a reversal
signal appears on the market. So if you look at a chart like this, you can
say that the trend is going as long as it marks lower high, higher high, or higher low,
lower low like these lines. There’s nothing to worry about buying or
selling towards the opposite direction. Now, let me take you one step deeper. I said highs and lows decide uptrend or downtrend,
but do you know there are two kinds of lows and two kinds of highs? Today I want you to remember another concept. That are, push back low, and pull back high. And these are the special lows and special
highs. Look at these charts. And look at a chart on the left now. What push back low means is that it’s the
low that succeeded to break the recent high, the point A, upwards. You know the chart went up to A and pulled
back to B, then it’s pushed back up, right? And it breaks the price level of point A upwards. Now, look at D. This is another low but this one could not
break the high, the point C, upwards,This one actually failed to break it through, you
see? From the point D, the price went upwards,
but it could not break the price level of C, but instead, it marked the point E and
the price dropped downwards. In this kind of situation, this low at D is
not as important as B because it didn’t have enough power to push the resistance line
at C upwards. So again, B and D are both the same lows,
but now you can see they are very different. The B is a special low that it succeeded to
break the price level of A upwards, but the D is just the low that it didn’t break the
price level of C upwards. And it’s the same thing when it’s on a
bear trend. Like I said earlier, there are special highs
and just highs. In this chart, B is the pull back high, whereas
D is just a high. And the point is whether the high could break
the recent lowest downwards or not. If you look at it, B could break the price
level of A downwards, whereas the D could not break the lowest C downwards and it stopped
in a middle of the way, and it marked E afterwards. Now, why I show this to you is because I want
you to be able to feel the power balance on the market. Again, look at the chart on the left. And look at the point A. What this was is
as you can see, the price pulled back at this point so obviously, this is the price level
that’s likely to be sold. And there’s a kind of pressure from above
for the price not to go towards the upside. And that’s why, it marked high here and
the price went downwards, right? Because until the point A, the price kept
moving up, but somehow, it was resisted at this level and the price went downside. So at this level of point A, there’s a big
pressure to sell here, you know, you can feel the sell pressure is hiding in this area. However, the wave towards the upside from
B got succeeded to break through the point A upwards, right? So that means, even if there’s a big pressure
to sell in the area of point A, at the same time, there was a big pressure to buy produced
from point B. So there was like a battle between sell from point A and buy from point B, and
eventually B won the game. So that means B has a big amount of buy pressure
than sell from the point A and you can see the momentum as a result. So with that in your mind, look at D. It could
not break the price level of C, right? And not only it didn’t reach to the point
C, it’s resisted even lower price level at E and now it’s going backwards. And when you compare the buy pressure between
B and D, it’s obvious that B is much stronger than D. So when you look at a chart, make
sure to check which one, you know, which low is the push back low, and which low is not
the push back low. And it’s exactly the same on down trend,
you just go opposite way. And if you know the difference, then you won’t
be fooled by the price actions right in front of your eyes because your eyes only look at
1 direction, nothing else. Now, let me teach you how to apply this on
a chart practically. Imagine if there’s a chart like this. The price went all the way up, and here it’s
been resisted, and at this point, the price pushed back and broke the previous high upwards,
right? I said this just earlier. And when the market moves like this, that
means it’s the bull trend no matter what. So never think of selling in this kind of
situation. But instead, you only think of buying, you
know, you only think of where to buy, and not thinking about selling it whatsoever. And in this way, you can eliminate your 2nd
thought, and you can always set your eyes towards 1 direction. So instead of thinking whether to buy or sell,
if you see a chart like this, you start to think “I know I will buy in this market
situation but where would I buy?” And you eyes are fixed on buying. But those who does not know whether it’s
buy or sell, they first need to decide whether to buy or sell as they look at a market, and
then they need to decide where to buy or where to sell. But in this way, you need come up to some
decisions through a lot more complicated processes, and your performance will get low. But once you set your eyes on 1 direction,
then the next question will be where to place the order, you know, you only focus on where
to place it as you look at a chart, and you wait for the right timing. Why this works is because it can increase
your probability of winning. If you can imagine, let’s say A looks for
1 answer out of 4 choices, and B looks for 1 answer out of 2 choices, of course the person
B has better winning rate than A because simply, the winning chance is twice greater than A.
And this is a kind of thinking pattern you need to have when looking at a chart. You may have lots of thoughts and ideas from
many different resources, like indicators, timeframes, or some signals that you look at. And if you are still struggling with those
information, my recommendation is, try to set your eyes on 1 direction by using the
price action technique I just introduced, like if you see it’s continuous lower high,
higher high, with push back lows, and if you see the market is bullish in Daily timeframe
let’s say, in that case, no matter what other indicators show it’s dead cross and
providing sell signals, just keep looking for the reason to buy, you know. For example, you can wait for the indicators
to gold cross again, or if that’s not the case, you can just go look at a lower timeframe,
like H1 or any smaller timeframe charts and try to find a price actions, like W bottom,
Triple bottom, or gold cross signals or over sold signals on the indicators, you know. Then, you can place buy accordingly because
if you think about the market as fractal, a trend starts from the lower timeframe charts
and it eventually affects the bigger timeframes, like when 5min chart becomes bullish, then
15 becomes bullish next, then later 30min becomes bullish, the H1, H4, Daily and so
on. And this is actually how I see the charts
with multiple timeframe analysis. I always look at Daily or even weekly or monthly
timeframe charts, and I set my eyes whether the market is in up, down, or in a range consolidation. Then, I look at the lower timeframe charts
to get the right entry timing according to the major trend. So, just remember how it’s important to
set your eyes towards 1 direction so that you won’t get confused by other views, and
when you are not sure whether it’s buy or sell, my advise is, you better not to trade
on that pair and wait until the time comes again because, you know, the market is moving
everyday, so always better to trade with pairs that are easier to identify for you. And remember that there are two kinds of lows
and two kinds of highs, and always look for a special high or special low that break the
previous high or low up or downwards, and as long as you see the price extends towards
that direction, it’s a sign of continuous trend, but when you see the price does not
renew the previous high or previous low, then that means it can be a signal of trend reverse
so you better stop trading and wait to see how the next price action plays out. Alright, that’s it for today’s video. On the next one, I will be talking about Bollinger
Bands and how I use it to make profit out of the market. So if you thought todays video helped for
your views on the market, please press a good button, and make sure to subscribe and hit
a bell so that get notifications for my future forex educational videos and live analysis. Alright, Stay Gold! Cheers, Matane,

Leave a Reply