How To Trade The REAL Trend

Trend determination –

The Institutions, banks, governments, large players are not trading the 5 min chart or the
15 min chart, 3o min etc etc. Do large players in the market take positions off of one of those time frames? Prob at times they do BUT fast time frames do not change direction of the market. Stay away from from 5 min, 15 min, 30 min or 1 hr charts.

Change in direction is caused by positions taken off of large time frames, weekly, daily, 4hr.

Weekly – look for the last 3, 4, 5 candles to all be in the same direction, each one making new highs for longs or new lows for shorts.

Daily – after you find the weekly chart go down to the daily make sure it “looks” right, most of the time it will trending just like the weekly. On the daily chart you want to make sure that the last 15 – 25 trading days are moving in one constant direction, generally speaking. You want the trend to be smooth, smooth price action. Yes there will prob be a few retracements on this time frame but they will be small in size over all.

4hr – this is where we are hunting for a trade. We are looking/ waiting for pull back and a signal to trigger into the direction of the daily, weekly.

Stops should be placed 3 pips outside of last swing low for longs or last swing high for shorts.

People kind in mind that YOU don’t determine your pip value or stop placement THE MARKET does.

Risk no more then 2.5% of your account value. So if you have 1000$ micro account your risk per trade starting out until it is built up will be 25$.

If your stop is 25 pips away then your pip value generally speaking on us pairs will be around $1 per pip. If you stop is 100 pips away then your pip value will be 25 cents.

READ THE BELOW OVER UNTIL IT SINKS IN …. it took me a long time to wrap my mind, head, thinking around the statement.

——> YOU don’t determine your pip value or stop placement THE MARKET does and the size of your account.

When you are starting out it’s not about making money, that ONLY comes with experience, it’s about getting good at acquiring pips. Once you get good at acquiring pips only then can you start to think about the $$.

Start small ie: micro account – if you can’t trade penny or dime size pips to profitabilty then you certainly won’t be able to trade larger size.