When You See This Trading Setup, LOOKOUT! Prices Are About To Reverse… (BIG MOVE PREDICTOR)
Published: 2023-03-03
Status:
Available
|
Analyzed
Published: 2023-03-03
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
A trading strategy requires a pullback after a break above resistance that does not close below the 50 EMA.
"we have prices pushing up and finally breaking and closing above are resistance level are rule number two we have a pullback we want to see at least a couple of candles pulling back and we don't want that pullback to hit or not to hit to close below it can touch it but we don't want it to close below the 50 EMA"
Pending
Entry into a trade is confirmed upon the close of an engulfing candlestick pattern.
"for me it's going to be this engulfing bar so now my entry is met when that bar closes that's when I want to be placing my trade"
Pending
The stop loss for a trade should be placed one ATR (Average True Range) below the previous low.
"for my stop I took a one ATR below this previous low as my stop loss"
Pending
A target of a two-to-one reward to risk ratio is a common target for this trading strategy.
"and for my target as you can see I ended up getting out at about a two to one reward to risk ratio"
Pending
For a bearish trade, the first condition is seeing prices create a new lower low after a prior uptrend.
"the first rule for the strategy in the bearish direction is we want to see prices create a new lower low while previously having been in an uptrend"
Pending
In a bearish scenario, the pullback should not touch or close above the 50 EMA.
"we want to see a pullback that does not touch the 50 EMA which is our blue line on the chart"
Pending
For a bearish trade entry, a bearish engulfing bar is a key pattern to look for.
"we're gonna be looking for a bearish engulfing bar for the examples in this video"
Pending
For bearish trades, the stop loss is set one ATR above the swing high.
"for stops I like to do a one ATR stop above or below the swing High"
Pending
A typical reward-to-risk ratio for these trades is 1.4 to 1.
"I normally stick to about a 1.4 to 1 reward to risk ratio for these types of Trades"
Pending
The key differentiator between winning and losing traders is the ability to effectively manage losses.
"the thing that separates a professional Trader from someone that goes and tries this trading strategy tries any setup five to twenty times right the thing that separates the winning Trader from the losing Trader is that the winning Trader knows how to handle losses"
Pending
The presented trading strategy typically has a win rate between 50% and 60%.
"the exact setup I've shown you throughout this video normally wins between about 50 and 60 accurate for me"
Pending
The advantage in trading is often a very small, incremental edge.
"your Edge is going to be a very minute Edge"
Pending
With 50 wins at a 1.4:1 reward-to-risk ratio and 50 losses, over 100 trades, the result is 20R (20 times the risked amount).
"if we go through a hundred trades let's say I win 50 of them on the low end and I have that 1.4 to 1 reward to risk ratio that means I have 70 as my by winds and I lose the other 50 trades out of 100 that gives me what's called 20R"
Pending
A scenario with 100 trades, 50 wins, 1.4:1 R:R, and 2% risk per trade can result in approximately 40% profit.
"that means out of every 100 trades I'm gonna make around 40 percent"
Pending
The primary obstacle for most traders is not a lack of strategy but rather their own emotions and trading psychology.
"the only problem with most Traders is not that they have not found a profitable strategy it's that their emotions their trading psychology gets in their way"
Pending
Profitable trading requires repeatedly exploiting opportunities, both through wins and losses, over a significant number of trades.
"you have to exploit these trading opportunities over and over wins and losses you have to exploit your opportunity as many times as you can"
Pending
Adhering to a trading strategy consistently necessitates a strong trading mindset and psychology.
"in order to stick to that strategy you need a good trading mindset and good trading psychology"
Pending
The speaker will share their best methods for improving trading psychology.
"the best ways I've found to improve trading psychology"
Pending
Backtesting involves applying strategy rules to historical data (at least 100 trades) to determine its effectiveness.
"back testing is the process of finding the strategy you're going to use for example if you were using this strategy and it's something you wanted to back test you would take the rules that we have set forth through cesd you would look back through a store of data you would test the last 100 times or more that this specific trading strategy happened"
Pending
Observing both winning and losing streaks during backtesting helps manage emotions in live trading.
"what you'll see throughout 100 back tested trades is that this strategy had plenty of periods of time when it lost a few trades and it had plenty of periods of time where it won a few trades and what happens is if you see that through historic data it gives you a better handle on your emotions when you're seeing it happen in live trading"
Pending
Proper demo trading, following a full trading plan with a specific strategy for one to three months, is recommended to improve trading psychology.
"demo trading the proper way with a full trading plan so once you have a trading strategy using CEST I like to go through the demo trading process for one to three months using just that strategy"
Pending
Effective risk management is crucial for maintaining good trading psychology, especially when avoiding risking excessive amounts of capital.
"utilizing good risk management if you're in a position with your life savings there's absolutely no way you're going to have good trading psychology if you're risking too much of your money"
Pending
Risking too much capital in live trading can lead to emotional decision-making.
"if we're risking too much in our real trading is we start to think about it from an emotional perspective"
Pending