The Ultimate Technical Analysis Strategy (I Have Used This FOREVER...)

"we actually just got mentioned in yahoo finance for having an extremely detailed complete beginner course for anyone who is interested in the forex market and in forex trading in general you can check out that article in the description and you can go to ttc forex course or fx course the link will be on the screen dot com to find that free beginner course"

"we have a very simple one condition we only have one condition that is that price must be inside of what i refer to as an otz or optimal trading zone"

"otzs or optimal trading zones are just areas in the market where price has been supported or resistance whichever one it is in this case support has been support in the past and this zone also must have been used by price multiple times looking left as support or resistance as long as it's a recent level that's been used as supportive and resistance and it's been used as supported resistance multiple times in the past i now have a valid o t z"

"here we can see that we have a double bottom which means we have one bottom a neckline and a second bottom the most aggressive way to enter this type of pattern is at the second bottom the way i do that is waiting for confirmation in this case that confirmation would be this green candle"

"and the third and most conservative way to enter this would be waiting on a pullback to the neckline so we get our double bottom we then get a break of the neckline we then get a pull back and either having a limit order at that pullback to the neckline or waiting on some type of confirmation like green candles after we hit the neckline after this pullback hitting the neckline of this specific double bottom pattern here on the euro dollar this would be the most conservative way to enter this market"

"for this i like stops to be either below the lowest low of the double bottom which is right in this area or below the actual zone it depends on again how aggressive of a trader you are"

"you may want to look for a two to one reward to risk ratio so you would have already hit targets you may want to look back at previous support or previous resistance for targets you may want to shoot for some extreme targets like a four or a five to one reward to risk ratio"

"and in this case no matter which one you chose the price of the euro dollar did come up and in fact hit your target personally i had a 1.4 to 1 reward risk ratio on this trade and ended up hitting targets quite easily for my initial targets on this trade"

"let's take a look at a bearish example of this on the pound swiss now okay so here we are on the daily chart of the pound swiss and the reason i'm using a daily chart is because i am a swing trader i trade on four and one hour charts i look for my major levels or my otz's on the daily chart if you are a day trader you would just drop down the time frame that you look at your otcs or you look for these major levels this works on all different time frames"

"for super aggressive traders you would be looking at the double top and then a red candle for your entry"

"for those of you who are more conservative you would be waiting for the break of the neckline of the double top for those of you who are super conservative you'd be waiting for that then a pull back to that neckline for a possible entry here on this double top"

"stops and targets could be set either in a very aggressive way right above the double top or in a very conservative way as in being above the zone itself"

"you now have what you need to go to the next step which is back testing and optimizing this rules-based strategy"

"we actually just got mentioned in yahoo finance for having an extremely detailed complete beginner course for anyone who is interested in the forex market and in forex trading in general you can check out that article in the description and you can go to ttc forex course or fx course the link will be on the screen dot com to find that free beginner course it'll walk you all the way through what you need to have a solid foundation for forex trading success"