Here is an important filter to reduce false Forex signals by more than 70 percent

Pay attention if it is the next candle after the signal candle that pulls the RSI out into the overbought or oversold zone Don’t break the signal candle, you are essentially skipping the signal and want immediate momentum after a signal, look at this example, we had a potential short entry price below 50 ema rsi rose above 80 levels and ADX was above 30.

An important filter to reduce false Forex signals by more than 70 percent

Then we had this candle here, the signal candle that took the RSI out of the overbought area but look at the next candle, it didn’t break the low of the signal candle, so no trading with that filter which is very important to get in when this could have been a close. The red candle is a losing trade but with this filter, you can avoid the loss, and here the filter is in effect to avoid another loss.

We had a price above 50 mA, RSI moved below 20 and ADX was above 30. Valid signal but the trigger never came to the high to signal the green candle took the RSI above 20 and it didn’t break in the next scam, the next candle was bearish so we ignored the setup and avoided the loss and remembered we wanted instant momentum, please be disciplined and do not ignore this filter, it will save you many losing trades, the second signal was valid, same setup RSI below 20 ADX above 30 at a price above 50MA.

Individual risk-reward trading in Forex

Next candle after the signal that took out the top of the candle Successful Single Risk Reward Trading Here are several tips to increase your win rate, never trade when the price breaks the 50 moving average multiple times in a short period, you want a sloping moving average when the price moves above and below the average. Mobile. It usually indicates the second consolidation period for trading from support and resistance levels although we rely on the location of the indicators which is very important that is why most trading systems fail and that is because most of them do not take into account the fundamental price action.

This means that you need to place trades at or near certain price levels. These location points are usually support and resistance, Fibonacci levels of supply and demand, or swing highs and lows. Make trades from these levels and you will see consistent results. Number three, commit to trading signals that are generated during active market hours.

Forex formulation or major indicators

If you are trading forex or major indices, these instruments will be traded more between the time the London trading session begins and when the US session ends after which volume decreases and no large orders are coming into the market to make a big move. And four, pay attention to spreads as a range setting setting. You want tight spreads. The goal is to take advantage of sudden changes in market liquidity to quickly profit without low spreads.

Your profits will reduce The key to a successful ranging strategy is to focus on liquid markets with tight spreads as this reduces trading costs I am currently back to testing these charts mainly for support and resistance I have to say I am having good results, I can see the support and resistance levels quite clearly More clearly on these graphs.

Major chart patterns by point and number

There are many breakout strategies that you can apply for swing trading and day trading but I don’t know if this topic is interesting to you, I know that these charts are considered old and outdated.

So if you want to follow the video on the point in number trading, leave a like and subscribe that way and we’ll know if you like it or not. Want to watch more videos like this one and check out our Academy program if you want to level up your trading until next time.

So zoom in a little closer to you you can see that this gives us our bias throughout the day whether you’re trading the London session or the New York session If we’re below the Tokyo session, we’re bearish If we’re above the Tokyo session, we’re now bullish If you want a very fundamental release The first hour of the session is known as the Dr. IDR range which is an abbreviation that stands for Indicated Range and Implied Identification Range.

Forex trading and price breakouts

To put it simply if it crosses this box it will go up if the price breaks below the box it will go down the reason this is so useful is that over the last 20 years statistically, 80% of the time when price breaks out from the upper or lower end of the Dr. ID R range.

It will continue in this trend so just from this statistic you have an 80% probability of your trade going in your direction now with the fractal madness it prints a small red and green tornado above the candle for a sell position and below the candle for a buy position you can change this for stocks whatever color you want, this is the default.

So if you are trading the London session, you will get a 1 to 1.5 risk reward signal that we are below the Tokyo session, we have broken through the bottom of the London session. Your trade is executed instantly with the New York session broken above but since we are below the Tokyo session.

Knowing the appropriate sessions for Forex trading

We’re not trading because we’re seeing a bearish Tokyo session underneath, we’re seeing a bearish London session we’re not trading a breakout, we’re not trading a breakout in a New York session, we’re a breakout, we’re trading a breakout, this was a concept I’ve been using throughout the entire month of April.

I was able to pass the funded account challenge just using this strategy but since then I promised you a 1-minute scalping strategy and I’m going to show you how this works here’s your Tokyo session we’ve broken above this range so now we’re bullish for the day that The Dr IDR in London is higher than the Tokyo Dr IDR.

We had a breakout to the upside once we had a breakout to the upside, so here is our breakout, then we take the price down to the 1-minute chart looking for our pullback and the next buy signal from the forex indicator range.

Summary

We had our pullback and we had our signal that we entered a long position, we set our stop loss and we set our take profit for a risk of 1 to 1.5 to reward, and as I said before with the statistical probability of the Forex indicator ranges once we get the breakout.