Live Forex Trading: The Ultimate Guide To Learning How To Read A Forex Chart

It doesn't look like it.

Which.

Forex. Okay, check this out. Okay, so let's just get this picture. I don't use these. These patterns. It's called a rising wedge. It's new technology. I don't like to use them. I think it's late. So yesterday we said that the second candle opened below the atma, which was.

This candle here. So you guys entered a short. So you entered a short over there. And then you probably.

Can see is you.

Okay, one second. See my screen?

Yes, perfectly now.

Okay, great. Thanks, James. So over here. So this is called the rising wedge over here, which basically indicates a short is going to happen. Now, I don't use these shorts. Can you see my. My phone, my trader, my metatrader 4? Yes. Okay, cool. So yesterday the second candle opened below the atma, which is my strategy. And then you probably opened a short somewhere around here at this level. And then there was a fractal that formed and you opened a second short over here. Now, as far as I understand as my understanding of the reading of the chart is that we're still south. And here is your rising wedge, which is just form. So let's just draw it out for you.

Right. So you can check it. Right. So here is the down position. Okay. And then we'll just put the wedge in green over there. So there it is over there. So there's your wedge, which if we go back to here, basically, that's what it looks like.

There we go. Okay. Can you see the similarity?

Yes. Okay. So that is indicating, according to these Western people that analyze the charts, they like to use these new formations, pennants and wedges and etc. I don't like to use them. Okay. My. My strategy, I find, works better. Okay, so what I can tell you is that we're on the H1 over there, you can see. And that we've bounced perfectly off the 200 moving average.

There you go. That's a better. So there's the 200 moving average. So that's why we're stuck at the moment. That's why there's no price action. So we're sideways at the moment. We're waiting for.

The banks to do something and then we'll see what happens. Who knows? Maybe we'll go up, maybe we'll go down. But currently, if we look at the H4, we are still south. We know this because the second cat, the candles are still below the atma, and that's the way it is. So we do nothing. We just wait. Now this is Where a lot of people that follow the trade get jittery. Okay. They taste, they seem to close out their trades now and.

Take their profits for me, there's no reason to do that. There's nothing indicating that the price has reversed or that you should be closing out your trades at all. So this is where you need to have your trading rules in place and you need to understand what's going on and how to read a chart. And you need to get your emotions under control, which is probably the hardest thing that you're going to do in Forex is get your emotions under. So.

I don't, I'm not trading these trades as you know, it's not because I don't know how, it's because I don't want to and I don't want to be watching the charts that often. I prefer to use my robot to trade for me and to make passive income. So that's where we are. Anybody got any questions?

Hi Alan, can I just ask a question there?

Yeah.

So your, when it, if it was to bounce off the 200 and start going north yesterday you said if it spikes the second candle at the fractal at, if it spikes north, then you need to add up all your lots and place a hedge. Now if that. Are we working on a one hour can on a one hour chart thing or a four hour. Because it, the, it could be one hell of a long spike north. That's where I'm getting confused.

Am I making sense?

So you're asking me when would be the right time to place a new long trade? Basically, yes. So what are my rules?

The second candle above the atma.

Right. So that's the only time you'll open up along.

But what I was, what I'm worried about, and this is what I can't get clear, is that if that first candle comes up to the atma, a four hour candle, is that correct?

Yes.

The second one now say starts above the atma, but it still, it starts below the ATMA but goes through it. We might be 30, 40, 50, 60, $70 north. That's where I'm getting confused.

Where $70, it's $30 to $1,800.

I'm just saying if it was to spike for some unknown reason, that's why.

That'S why you use good wallet management and you don't use big lot sizes. Because if you use big lot sizes and it does spark north and you get a big candle, you'll be in trouble.

Okay, but if my hedge is, is because I'VE got all these old cell traits to quite a big lot size. That's, you know, I can get everything else. It's just, I'm afraid of, of it running away from me. And I'm waiting for that second atma and.

Yeah, so if you're uncomfortable, James, then just close out all your trades now, all your shorts. Because you're on the 200 moving average. You can close your shorts and you can offset it against your other shorts. Okay. To lower your drawdown, to get back to like a, a position where you're more comfortable. So you've got, you've got sell trades all the way at the bottom here. And you've got these two, these two sell trades over here which are in profit, but they're not in like a massive profit. Probably maybe between 5 and $20. I don't know. What have you got?

I'll tell you right now. I've got it here with me.

Okay. I've got, I've got a sell trade with $43.

Right.

And then. So obviously that I'm going to offset against.

Okay, what's your other trade?

Sorry, say again?

You only opened one trade.

I opened one trade because I was hanging around the 50%.

Okay, cool. So if you open the second trade, you'd be in $60 profit.

So this is where, this is where you need to start trusting the strategy. When that second candle opens below the atma and then the fractal, okay, that fractal, it's science, it's not the. The fractal was created by Dr. Bill Williams. He's a scientist, okay. And he studied this and he's done, he's done all these.

Back testings on, on that strategy. That's what in MetaTrader 4, if it wasn't, if it was just a general dude that we met on the Internet etc and like on YouTube and I said, yeah, no, this guy's strategy is good, then I wouldn't really trust it. But the fact that it's in MetaTrader 4, I would take note of it.

Okay? And then there's one other question.

So what you could have done, James, what you could have done is you could have opened up a 0.01.

Ah, you see? Okay. Okay. So if you like nervous and you're not trusting the strategy, open up a 0.01.

Yes.

And then start getting like some confidence. You're not trading. You're not trading because you're not confident. That's the only reason you're not trading. Okay. It's like yeah. Do I trust the strategy? Can I trust it? Sure. I know Ellen's got it right, like 90 of his calls, but I'm still like nervous. I get it. I totally get it. So then open. Is it like opening a 0.01? It's like sense, dude. Okay. It's. For me it's a waste of time.

Like I'll give you a bit of.

Maybe, maybe a 0.03 or a 0.05 just to like put some meat on the bone like $5 like at the end of the trade.

Yeah.

Okay. So like we're on it. We're on a caspia. We're on the 200 moving average of H1. Now I don't like to trade these wedges and these rising wedges and falling wedges. I just, I find them late. I find that the call is late. But I've been watching it and I've been checking and like usually when you see these wedges, some of them are accurate. So I don't know if it's going to, if it's going to go north or south. North or south. Nobody does. What I can tell you is that there's another fractal here. If we pierce here, if we go down here to about 1750, 54, I'd place another trade. Because you know where we're going South.

That's where we're going.

Yeah, we're going to the 200 moving average. We're going down here.

That's where we're going. Yeah. On a four hour so. Or we might get stuck. We might get stuck like.

And support somewhere.

Yeah, we might get stuck here. Okay, but that's a massive trade. Yes. Okay, so 1737, let's.

Draw a line and let's see what that is.

Yeah. 1737. So it's from there to there, the top left hand corner, that's 514 pips.

Okay, that'll clear you. That'll clear you. Even if you take it. Even if you take it to. Even if you take it to there, it's 234pips, which is my average. Okay. Okay. I'm saying to you that with my strategy, you're gonna make between.

200 and 400 pips. If you open two trades, it's 400 pips. If you open one trade, it's about 2, 220 to 200 to 250 pips. Okay. And I've. And I'm doing it all the time on my group and you've seen it. So just go slowly, get Some confidence. Use small lot sizes. Could use good wallet management. Don't try and get rich on one trade. Especially if you've got it right. Especially if you make one trade and it's positive and you like got your confidence up and then you go, you go boss and you like do some stupid. And then you, you up your account. Yeah. It's not necessary.

I've got you now because I was working on the 31st trade and 32nd trade. I didn't think of just going the second trade a little bit smaller. Let's see what happens.

Yeah, you should have done that. You should have. But this is where you learn. This is where you learn. This is where the mentorship comes in play. Yes.

100. Thank you, Alan.

No problem.

And then also, I can't stress how fantastic hedging is.

I mean, dude, it's, it's life changing.

Yeah. And guys that try and fight it, they must study it more because it is flipping awesome. It just freezes your account. You don't lose anything. You can go to bed and you can sleep.

Exactly.

Yeah.

So even, even if, even if you're trading during the day. But. Okay. And this thing sparks. Okay. I would place a, a bus stop right at the top here. 18, 18, 12, 1815.

Next question.

Yeah, 1815 above the fractal. But you don't know, you don't know what's going to happen on. Let me just zoom in. Yeah, you don't know what's going to happen over here. I mean, let's say, let's say, well, there won't be a fractal. Yeah. It can't happen. Okay. It only happens within the last five candles. So 1, 2, 3, 4, 5. So they may, you may get a fractal here. North. Okay. So if, let's say the second candle opens here, you can place. You can. You, you can do a buy stop here. If not, it'll be 18, 15 of which it's not going to go. I don't think it's a, it's a heavy resistance point there. 18, 18, 11. We already got, got stopped out so many times in this, in this little range over here. The structure here, that's. I don't. If it does, it does. Nobody can predict. That's why you use your buy stops and your cell stops. It's game changing.

It's when you see it work and then people will understand.

Yeah. When you start seeing your trading starting to work for you. I told you that this is going to be a journey that you can, you're Going to love this. Okay. I think I've stuck to my. I think I've done everything that I said I was going to do for you.

No.

And yeah, I stuck my bicep at A. At 1,783.48.

There's no reason to do that.

Well, it's just when I went to bed last night. 1783.48.

Yeah. And if it activated, you would have been. Yeah. Okay. Because it could. It may have sparked up and then gone down north and then you've got to. Then you're stuck in a north hedge and like, there was no reason for you to do that. There is nothing on the chart indicating a 18. A 1783 bar stop. Like nothing. Yeah. So this is where, this is where you've got to get your money rules. And the only reason you would do that is because you were afraid of your drawdown, which means that possibly on your first trade over here, that when the second trade opened below the atma. Possibly the lot size is too big for you. So don't use 30% of your sell trades. Use 20%. I'm saying to you what I use. Yes.

No. Yeah, you know. Yeah, you know.

Okay, so if 30% is too much, then use 20%. Use 10%. Get used to it. Yeah. Understand it.

I think that's the key.

So a lot of guys are like, a lot of guys are like, they don't understand my tr. My strategy 100% and then they don't trust it. So if you don't understand it, then you have brain freeze and you actually can't, you can't trade it. You can't, you can't trust it. And then you get nervous and you make, you make decisions based on emotion. We. I don't do that. I'm making, I'm making decisions based on the way I read the chart. I've got money rules.

Yeah.

Okay.

Okay, cool. Anybody else, Anybody got anything to ask?

Okay, cool. So we'll just wait for the price action to happen. Hopefully this falling wedge, or rising wedge rather, will actually pan out and we'll get another south move for another 250 pips. Stay tuned. It's going to be exciting. See you on my next call. We're going to do it on, on Google.

Just another quick one, Alan.

Google Meet.

Okay, where the price action is right now.

Yeah.

And, and it does start breaking through the, the wedge you don't like. Where would you place another hedge?

I wouldn't place ahead. I'd place another sell trade below the Below, below the fractal there is a fractal. So Bill Williams says that on your next fractal, place to trade. The problem with Forex, you can do it on shares and Ind and, and CFDs, but Forex, you know, when you place like three, four, five trades, start getting, if you're gonna place it, definitely place it a lot lower than what you're placing your trades at. So place it at 10% or whatever, or 5%. Don't place a massive trade because if it does spike, you're gonna have to place a hedge.

And Alan, a couple of times you've mentioned a fractal is forming. How do you know a fractal is forming?

Go watch the video.

Sorry.

Go watch Paul Williams video.

Yeah, I tried to.

I know also, I also also tried to. Took me about. I watched it 10 times.

Because it's so, it's so fast and he's like, he sort of like mumbles and it's very difficult to understand what the fractal is. But it only forms on, on the fifth finger. So it's, it's, it's two down and three up or three up and two down. That's how it forms.

But you see there, you've got more than five candles.

It's formed that fractals formed.

But I'm looking left now.

I know this fractal. Yeah, that fractal is formed. It's not going to disappear.

Okay, now previous ones, there's more than five candles between them.

Yes. So it's the, the fractal formed when this candle closed.

Okay.

Okay.

The third candle.

Yeah. So once the fractal disappears when the candle goes below this, the, the low of this price of this candle. When the candle, when the, the, the, the, the second and the third candles, any one of them go below the fractal, the fractal disappears.

Okay, I'll go back and watch him again.

I know it's, it's a, it's such a difficult video. And then I tried to watch other people's videos and they don't know what the, they're talking about.

No, negative.

They, they got it totally wrong.

All right, all right, thank you so much.

Cool Laka. Anybody else got any questions?

Okay, Lekka. So that's the end of the call. When something else happens, I'll have another zoom call, another Google Meet. So stay tuned and subscribe to my channel. And it's coming out on, on YouTube now, so subscribe. Please place a comment in the, in the video. Ask questions, tell me what you like best about the strategy, and I'll see you in my next video. Take care.