Forex Trading System – No. 3 The KILLER
Forex Trading System – NO. 3
This single forex trading strategy once understood will be your added arsenal in your forex trading system.
NO 3.
What is it?
In the chart above: Forex Trading Pair (EUR CHF) Weekly Time FrameYou see price touches the pivot zone @ 1.2405 (orange line). That is an all time low pivot zone. When price came down and touches the pivot zone the first time (marked by blue box 1.) It gets rejected and bounced back up. (Forex trading system)It tried to test the pivot zone once again on the 2nd time (marked by blue box 2.) and got rejected immediately. And so it retraces back up for a little while to come down back again to test the pivot zone for the 3rd time.
Forex Trading System – No. 3 The KILLER
Now, most people may think that since price had tested the area for 2 times before and got rejected by it. The pivot zone has to be a strong level of support and high chance that the 3rd time of it touching will get rejected too. That's when most got stopped out and made a loss; had they entered a buy order expecting a bounce up.
Forex Trading System – No. 3 The KILLER
Price moves in patterns and respects these patterns most of the time.
And the No. 3 is one of it's pattern.
No. 3 means that = the 3rd time will usually make a break through of an important support/resistance zone. You can run a back-test to see what I'm talking about. Most of the time, price breaks through an important support/resistance zone at it's 3rd try.Be it a pivot zone or even a trend line. If you understand this simple fact, you could end up with more positive trades and lesser negative trades. For example in this scenario: We could play a breakout trade with a pending sell order slightly below the pivot zone. This is to catch the possible breakout of a consolidation trend into a downwards trend. And this knowledge will prevent you from placing a buy order in hope of the trade bouncing back up at it's 3rd try.
Forex Trading System – No. 3 The KILLER
As simple as it may seem, it is true.
Forex trading need not be difficult. It is all about understand how the market moves and how to play along with it.
Learning price action is a major key in forex and in combination of a good proper forex trading system. It is a matter of time before you find success accompanied with discipline and perseverance.
Check out our AFM winning Price Action Forex Trading Course where i teach you the exact FULL Forex Trading System that i personally use to be consistently profitable.
See you on the other side my friend,
Asia Forex Mentor
Ezekiel Chew
Asia #1 Forex Mentor
www.lifeofatrader.com
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