The price structure of Forex currencies during risk trading

Forex price structure and risk trading And that’s if we’re selling, why don’t we continue to analyze the selling from top to bottom, the structure of the market at the entry points, what does that mean, let me explain that to you, if we’re interested in selling this market here we know that this is what it looks like from day to day four, Now here is the same market structure let’s say hypothetically in the 30 minutes just to show you guys simply the same market that we’re currently using.

The price structure of Forex currencies during risk trading

You can see that at minute 30 it’s going to look completely different, let me bring this over here and bring it back to where the market is so we know that we’re in the same market that we’ve drawn in this section here now we’re just back in this area, so let’s take a look at it on the 30 time frame Minutes, so if we go to the 30-minute time frame, you can see how we’re going to organize this last section here,

You can see how it’s forming from there’s a lot of structure points that are creating a bunch of higher lows and higher highs the whole way through, and this is happening much faster than the 4-hour time frame and then the daily time frame and so on, so if you notice So right here these markets on the 30-minute time frame look very different than they want to be right now, what do I mean by that it’s very confusing.

The basics of determining the Forex market price structure

It’s about to make a lot of sense now, so I’m pretty much dragging this over to our section 4 which is going to be right here, so what I’ve done here is I brought this enlarged section of the entry area for the GBPUSD on the 30-minute From 4h an hour.

So this is the four-hour time frame, and this is what the 30-minute time frame looks like, so obviously I only focused on this section here because if I were to go back that far, all of this would look pretty rubbish. We have a lot of different structure points and it doesn’t matter what we’re about to do now.

So if this is what the four-hour time frame looks like and we understand that this time frame is bearish, we’ll put it here it looks very visual and this is what the 30-minute time frame looks like, and what this 30-minute time frame is doing now.

Calculating the risk and reward ratio of Forex trades

Are we actively bullish or are we trending nicely bearish again maybe for a starting trader, this time frame may be bearish but they’re wrong, this time frame is bullish, this market has been creating lower lows, lower lows, lower lows, lower Lower lows, lower lows, lower lows and now we’ve turned to the upside making this 30-minute time frame bullish so now that this time frame is 30 minutes.

The time frame is well up doesn’t mean this is the right time to get into this trade because we are looking to sell and we can only sell when we have a bear market if we have a lower time frame which is the time frame we are on. Entering this goes against our overall trend analysis, it simply makes no sense to enter the trade.

The lower time frames haven’t changed the structure yet which makes it pointless to enter the trade so this here would be a perfect example of a loss a trader or position would take that I would personally avoid so to make this straightforward to the point where it simply comes to To this if this will be.

How much a novice Forex trader risk per trade?

Let’s say our 4-time frame and this is what the market would look like on a 4-hour frame, and if I were to break it down from 4 hours to 30 minutes, this is what it would look like on a 30-minute frame, and let me make it a very clear version of what it would look like by following Same path, this simply goes from the 4-hour time frame to the 30-minute time frame, and they are the same.

And it’s just 4 hours and then this will be 30 minutes and we’re analyzing this market and we’re looking to do this trade to the upside, this is where we’ll wait for this pullback here and then buy, and this will be the key for the patient trader who’s waiting for this area to arrive and then get into Center now.

This is where top-down analysis is crucial because this pullback here will give you the perfect confirmation that you should wait why because this time frame is now bearish up to this area here and you can’t get into this market as long as it lasts This market is in a downtrend.

A profitable strategy for the Forex market price structure

You can only enter into this market once it turns with the aggregate time frames from above, if the 4-hour time frame then the daily time frame is bullish, you want to make sure that the 30-minute time frame is also bullish with the aggregate time frames on the pullback.

The trend has become bearish and then we have to wait for it to simply turn to the upside so that we can then continue to take that trade to the upside, the key is when you will enter the trade on the lower time frames you want.

Summary

Make sure it allows for alignment with the overall top-down analysis direction This alone can boost your win rate by 25 to 30% so make sure you hit the subscribe button so obviously this looks pretty simple on a line chart, but we don’t trade line charts, we trade candles I show you what it looks like in the Candlestick, so I’ll pretty much stick to that for a quick second.