Analyzing the results of Forex trades and linking them to the factors that affected the market

If the price falls below the strength of the sellers, it is triggered, and then the cost is inside the Channel. Since there is no balance between buyers and sellers, you cannot know which direction to expect, whether long or short; this concept remains valid throughout the trading day during the European session and even in the first part of the New York session. As we did. We see the opening channel with the opening of the European session within it acting as a neutral price zone between buyers and sellers. When the price breaks up, we will have a long entry signal; when it breaks down, we will have a short entry signal.

Analyzing the results of Forex trades and linking them to the factors that affected the market

The entry signal is triggered after the London opens at 8:00 GMT when the price breaks the Channel up or down. Here is an example of a long entry: we set the opening channel, and shortly after the London open, we had a bullish breakout. After the London session opened, you can see the market being traded. Inside the opening channel, it immediately changed direction and started rising with a strong trend.

Here is a short entry after we drew the opening channel. The market immediately started a strong downtrend during the day. A short trade under the Channel would have allowed us to get a good profit for the day as a stop loss is placed, which is mandatory to be placed on the other side of the opening channel for long entry.

Why does the stop loss go a few pips below the lower opening channel?

The stop loss is placed for a short period when entering a few points above the opening high. Channel stop loss is placed in this way because once you enter the market in a sell trade, for example, and during the session, the price returns and breaks the opening channel to the high remaining in the trade will no longer be reasonable because of the sentiment Big players in the market.

You have moved from selling to buying with a high probability that the day’s trend will change at this point, and it is clear that it no longer makes sense to insist on staying in the market as you can set take-profit levels. Once you have identified the Channel to enter the market after the breakout and place a stop loss, you should Follow up to determine future price levels at which you will take profits.

Who are those who move the Forex markets?

To determine these levels, the best thing you have to do is to measure the opening channel range and expect it from the high price of the Channel penetrating the long target levels and from the low price penetrating the Channel through the short target levels, and you have to do this several times precisely as shown in the picture, adding pivot points that define the first target by projecting Channel and then the second goal by dropping the Channel.

Again and again for the third target of the day.. When setting price targets,, the opening channel is a measure of volatility.. If the Channel is narrow,, you must add multiple price targets.. YouYou will only have to add a few if the Channel is white. if the Channel is white. You can close 50 of your positions once the price reaches the target. The first is allowing the trade to run until the next target is reached.

Money and risk management in Forex

It is up to you to decide which money and risk management you want to use. Now that you know the correct methods for setting take profit levels, it is essential to note that you have to draw them immediately on the chart as soon as the opening channel is formed. You should know that these price levels that you will add to The chart at the beginning of the session, in addition to the levels on which we will place or take profits, will also be the future support and resistance levels. You will notice how these levels work. Institutions will use them during the trading day as natural support and resistance levels support and resistance levels.

In this chart, I have traced the take-profit levels up and down, and it is clear how the price reacts when it approaches these levels. It is unbelievable how accurate these levels are. The price bounces several times, reverses the breakouts, and retests them. These price targets are critical. Knowing the support levels Resistance for the day in advance or at the beginning of the London session will be a massive advantage over the market.

Test your Forex strategy easily

The great thing about this strategy is that it has a precise set of rules by which you can easily test this strategy and you can perform other types of analysis to confirm the breakout. If you are a price action trader, you can analyze swing highs, swing lows, and trade breakouts in the trend. From trend during an uptrend.

“You will experience higher highs during an uptrend because buyers are pushing the price up. Also, the lows will be higher because buyers are purchasing at lower levels during a downtrend. Conversely, during a downtrend, the lows are lower and the highs are also lower because sellers are selling earlier and buyers are not as interested. Therefore, if you spot an uptrend and see an upward breakout of the opening channel, it’s a positive sign.”

Trading the bearish breakout of the opening channel in Forex

It is very likely to trade a downward breakout of the opening channel when the price is making lower lows and higher lower lows are also a strong sell signal so if you prefer confirmation from indicators then moving averages are perfect for this strategy as they are great for determining market direction as wellIf you want to use moving averages as a filter, you can apply a 200 EMA and then look for trades in the direction of the moving average. In this example, there was a long signal above the opening channel, and the price consistently remained well above the moving average during this uptrend.

You’re probably using the Trade View to do your technical analysis, you probably have the free version of the Trade View, so you’re limited to two indicators, in this article, I’m going to show you the 1 Minute Scalping Strategy Take control with just two indicators Welcome back to the Channel Everyone, my name is Ry and this is Moving Average, a show where we discuss everything in day trading to keep you profitable.

Summary

The concept is simple and this works on multiple pairs In this example I will be showing you the German 40 which is an indicator on the 5-minute time frame and this is where you want to do your analysis and your entries will be on the 1-minute time frame and the two indicators you will want to use are Midnight ICT in New York.