Forex Trading Strategies & System – 2nd Chance
In Forex trading, price always gives us a 2nd chance to place our trades before it takes off.
It can be considered as a 2nd chance or you can consider it as a confirmation bar.
In the chart above, Aud Usd.We can see the first highlighted blue box showing a pin bar. As this was not the nicest pin bar of all. We did not take it.Or if just to say – we missed this pin bar for some reasons. Either by choice or we were not at the chart when it happened.
As mentioned, price always gives us a 2nd chance or a confirmation bar – which is the 2nd highlighted blue box showing a pin bar.Telling us a great hint that the train is sounding its horn and is taking off – getting the last few passengers to board the train.
Usually Most of them time, the train will take off after that, heading our direction.In the chart above, besides the pin bar. There are several reasons (confluence factors) which we had entered on the trade.
1) Overall uptrend movement
2) Pin bar at the price pivot area 0.94900
3) Trend line confluence
4) Double confirming pin bar
Remember – the more the confluence. The higher the probability of the trade.
Here’s another example:
Forex trading Pair: Gbp Aud
I need not explain much on this as its clearly shown in the chart.
1) Double pin bar
2) Price pivot area of 1.63500
3) Swing Low
There are plenty of examples in regards to this if you look closely at the charts itself.
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Next Advanced Article: 2nd chance in forex trading (part 2)