[Music] so let’s get started discussing our tripleheader strategy three easy pieces now I always tell traders and I have been trading for 45 years and I talked to lots of groups and seminars on you know information groupings introductions webinars conferences and what I always stress is that you should never ever follow somebody else’s strategy you need to develop your own trading strategy you could take somebody else’s and modify it but only the person developing it actually knows all the little ins and outs and you need to make it your own so there there are probably as many trading strategies as there are traders but not all trading strategies are equal and I suggest that you find some strategies and then build a trading plan around them there’s a plethora of trading strategies available to you but I also encourage you to create your own when you build and test your own strategy you are the master and you are understand the ins and outs so I always encourage traders to develop their own trading strategy time permitting but like I said you can start with somebody else’s like today we’re gonna learn this triple header strategy but I couldn’t teach it all to you in one day I’ve been trading it with it for years and years and years and it’s always got some little piece of other information but you could start with what I give you and then make it your own now creating a strategy from scratch is very time consuming but the easiest to do this is insured is you want to analyze your charts and look for opportunities these is where you go back and what I do is I go back and say look at that I could have made a lot of money if I would have traded that asset then I say to myself what would have given me or told me that there was a trading opportunity and I’d use a process of elimination say uh if I would have done this this and this I would have seen that opportunity so then I can use that the next time but then I have to test it and make sure it works it’s not just a one-time boni so if you see a strategy worked on a recent movement look for at least 20 or more trading signals check for profitability by adding up the wins and losses and this is one of the main important reasons all the brokers give you dental demo platforms most people think they give you demo platforms and a way to suck you into trade but it really isn’t I’ve been trading like I said forty five years and I spent half of my trading on demos because this is where you test everything this is where you define and refine everything now remember not all trading advice is good figure out where the advices come from how much you trust the source and this is particularly important when using the Internet there is so much garbage out there on the Internet there are lots of amateurs out there who think they know what they’re doing and they come and they do videos they do papers they write stuff up even if you go to training view you see some of these people that are really even from trader so doesn’t they like to have drawn their charts and then they like to make comments and they think of a social media they just talk and talk off their heads but they’ve never gone back and tested anything you know they come up with for Bitcoin 66-58 is a retracement level why they can’t tell me they’ve him they dropped their Fibonacci’s on there well that’s not how a retracement level just comes so don’t just follow blindly so when you develop your own trading strategy you start out with a set of recommendations from analysts or other traders try these out on a demo account and then modify them and see what happens it’s important to create your own formula for success as this will improve your trading skills but you don’t have to reinvent the wheel you can learn from trading analysts and experienced traders they’re still in the market because they are successful study their strategies and learn from them don’t follow them blindly but test out what they are saying and see if it works and there’s not one strategy and this is what too many traders want to do is they want to incorporate everything into one strategy but not all strategies are remedy for all you have to decide what you want your strategy to do do you want it to give you trading signals you know what transaction signals tell you there’s a potential buy or sell opportunity or do you want to give you entry points so online trading is considered by some to be one of the most challenging styles of trading which is why it’s important to jumpstart your journey with proven trading strategies but build your own strategy I always think differently but don’t think complex too many people want to have all of this complex complex strategy but basically a simple strategy is just alerting you to an opportunity to buy or sell it’s a set of filters that when it happens is going to give you an opportunity risk management is ultimately the most important price action is ultimately the most important but trading a symbol but it’s not easy so a sound training practice is to not take this information at face value rather think differently and validate the statements about the product to see if there’s a bonafide trading opportunity and believe me somebody tells you they’re gonna give you a super secret strategy or a super secret scanner or a way to beat the markets that nobody else will do with three steps to make a fortune please just go away from them so with all that said let’s start with the first and most important step in building my tripleheader strategy and that is using support and resistance now whether you call support and resistance or demand and supply or peaks and troughs I don’t think it really matters the important part is that you get better with identifying these levels where price changes direction and reverses where are the bulls coming in where the Bears come in these areas can be can be signified for a trader to be able to start to recognize where there are probability areas for entering a trade at a lower risk now there are many many ways of locating support and resistance my best and my basis for this strategy is what I call eyeballing it’s going back and looking at your charts and finding specific swing lows and swing highs in the past action and I always always place my support and resistance on all charts no matter what strategy I’m music and now I use these in conjunction with candlestick analysis but it’s our step one in our triple header strategy support and resistance areas shows you where to buy or sell they are vital parts every traders toolkit and it’s essential to learn how to place them placing support and resistance areas in is the most important skill you can master in trading and placing them is relatively easy support and resistance areas divide your chart up into buy and sell areas an area that sits above a current price as a seller an area that sits below occurrence price is a buy area so think of support and resistance as the floors above and below your head in an elevator the floor is what is supporting you and the resistance is what’s above your head cuz you have to break through that head now there’s many ways there’s pivot points there’s eyeball and there’s swing highs and swing lows there’s Fibonacci levels there’s all different ways to secure support and resistance for this trading strategy we’re gonna use eyeballing and locating the support and resistance or the areas that are around the price over a time span of a couple months that price has had a problem moving through now the only ones that we’re concerned with are the ones that are around the current price so let me pop up a chart okay now the red line on the chart is a major support area the blue lines above and below our support and resistance areas and the reason there are two of each is I use what’s called for this trading a support and resistance zones because support and resistance are not finite numbers they are areas and here we have to have an area and that area is important so I’ve done these by eyeball I’ve gone back over my price charts and I’ve looked at the year and this is my teaching chart the euro US dollar where prices had a or touched a lot of times in the past and had a problem going above or below it Lee is he here then here then here this support zone held okay again we have it here and we’re only building a zone we’re not making a critical decision we’re only building his own here we can see in the past have all of those closes and open for right on that price level and we can went back farther on the chart you’d see more and more of them and here we see look how critical this price was here here but this price was extended from the past when it was brought forward look at that okay so this gave us our zone above and look it’s the only thing we’re concerned with is right now are the support and resistance in areas above and below the chart the current price now when I drew these on the chart a couple hours ago price was trading here we’ve had these candles developed since then and look at that this candle has moved right in between that support and that zone and that’s me important here we had another one that closed on that zone here we had another candle that closed in that zone and those are going to be important to us as we move forward with our strategy but now that we have our support and resistance and I’m gonna try I’ve got a little short presentation on locating support and resistance and let me share with you because it’s a confusing concept a lot of people but it’s really not that difficult but it is very personalized so let me share this presentation with you and then we’re gonna go on to point part two of our triple header so from helping us to identify potential trade areas one of the other common uses for support and resistance is helping us identify whether a market is ranging or trending if price is making higher highs and higher lows by breaking resistance levels and using them as support the the Marquis said to be trending upwards and if the market is making lower lows and lower highs by breaking support levels and using them as a resistance then it is said to be trending downwards if the market is moving sideways between two levels of support and resistance then the market is said to be ranging as it is not making any significant movement to the upside or the downside some traders have strategies they will only employ if the market is trending or ranging so using this analysis helps them to decide whether to implement a particular trading strategy or not so why does support and resistance work put simply support and resistance areas work because lots and lots of traders are watching them traders identify these areas because you tend to get a lot of trading activity at these levels some traders will be waiting to trade the reversal at the identified area and other traders also like to trade the breakouts whereby price breaks through the support or resistance area and the trader takes the trade in the direction of the brick so if price broke through a support zone the breakout trader would sell the market in anticipation of the price falling further as it has broken through a support area all of this increased trading activity usually results in either a victory for the buyers or the sellers and because more traders are active at these levels the reversal or break out usually happens with some purpose and intent which is what makes trading these opportunities so attractive to traders however it is worth mentioning as with all forms of technical analysis support and resistance is an art not a science there are going to be occasions where the market seems to forget that our support or resistance level is even there it may just blast straight through it without even giving us an indication that any kind of reaction took place there at all or it may brick particular support or resistance area and then reverse having already broken the area we call this effect break and it can trigger breakout traders into a losing trade it can also frustrate reversal traders as the signal for the reversal doesn’t happen in the identified support and resistance area what we as support and resistance traders have to do is have other mechanisms within our trading strategy to refine which opportunities we take a support and resistance levels or than just identifying them and waiting for price to reach them if trading was that easy we would all be millionaires so how should you use it for me support resistance is a key part of my trading strategy but I do not use it in isolation I have other analytical techniques that I use and wait for to give me confluence before trading if I were to trade solar using support and resistance I wouldn’t be profitable and it’s as simple as that I personally think support resistance works best when you use it as one of a few layers of technical analysis that make up your trading strategy for example you could use it as the foundation of a strategy and build on it with a few different types of dynamic support and resistance like moving averages and Fibonacci levels or you can use it to build on a strategy where the foundation comes from something like Elliot wave theory and look for a particular candle pattern when both streams of analysis line up like with any successful trading strategy you need to have more than one analytical method if you have a few and all the analysis lines up for a particular trade then this gives the trade confluence has a number of factors telling you there is a good chance this trade will be a profitable one so we’re going to talk about our confluence by adding two more factors to our support and resistance now in general there are three key rules you need to keep in mind when placing support and resistance the areas of the body of the candle the body is more important than the wick the more reason to bounce the more important prioritize recent bounces over older bounces you need at least two connecting bounces to place a supporter resistance while most new traders learn a little bit of it now we’re gonna go to part two and this is adding candlestick analysis but don’t freak out we’re not done by candlestick patterns here it’s gonna be very easy most new traders learn a little bit about candlestick analysis but most of what they learn is completely useless because what they’re learning is candlestick pattern recognition and the standard approach is candlestick analysis and pattern recognition which fails to work in real time trading especially our type of trading now you can’t skip straight to advanced candlestick announced without knowing some basics if you don’t know the basics that’s fine I got you covered when forex traders first start out they usually learn about candlesticks but what they learn like I said is useless they normal normally see a list of candle patterns like these and they’re told to memorize them and when you see this happen you do this you act like a zombie you do this you do that you do that but this is not candlestick analysis it’s pattern recognition and for our price action trader it is totally useless actually it’s worse than useless thinking about candles just as patterns is counterproductive it makes you a worse traitor it leads you to make massive mistakes why giving a pattern a set definition leads to tunnel vision when you see a specific pattern you assume that something will happen but that’s really not how candlesticks work all candlesticks need to be assessed based on candlesticks around them and many other factors so normally people say that a spinning top means a reversal is imminent which can be true however they say the pattern can also mean a continuation is imminent it can mean that the price is temporary stalling it can mean a lot of different things so thinking of a candle as a simple pattern is a wrong way to do things we use candlesticks to tell us the story of price so now every candlestick on your chart is telling you a story when you combine those candles together you get the story of price the foundation of my trading strategy is reading and understanding the story of price reading understanding the story of prices vital in forex who was in control now the question has three possible answers the buyers the sellers are neither being able to accurately answer this question is vital if you are about to enter a short trade you need to ask yourself who’s controlling the market is it the buyers or the Bulls or the Bears so let’s break down the story of price and this is important because this is going to become our second part of our tripleheader strategy so if you look at the three highlighted candles it’s easy to conclude the de sellers are in control over the market the candles all close lower than they open they all created new lows beyond the previous candles low and they all have some upper body wicks in comparison with the body candle the upper the small upper wicks indicate that the buyers were unable to push the price much higher in other words we have three red or three bearish candles even though we have some little surge up here creating a new high they couldn’t maintain it and they actually closed lower and each candlestick at at some point the pull the bearers actually pushed it down a little bit lower okay commonplaces not complicated whether it’s three candles two candles seven candles eleven camps to make stairs but what does the highlighted candle next to those red candles tell us this is the candle that becomes important to us but what does this high lighted candle tell us it has a short upper wick at a small body and a long lower wick now this is called an indecision candle there are many shapes and size of her indecision candles but the ultimate crux is that they have a very small body telling us that neither the bull or the Bears are in control of that session now as part two of our strategy we also need this indecision candle to have a long lower wick there’s at some point the Bulls were able to add the Bears we’re able to push the market down but weren’t able to hold it because they weren’t sure what they want to do and we need it to close in the opposite color of the previous candles now this is only important when using our triple header strategy because we want to eliminate all types of possibilities what we want to end up with is a pure trade that we filter that all the other misinformation all the other possible scenarios so what’s an indecision camp an indecision candle occurs when neither the buyers or the sellers can gain and maintain control of price they are common but have used the right way they can be very powerful here we have just the opposite and we start to see part two of our trading strategy again we use three candles in our creative but it could be five candles at least seven candles okay but what we have our bullish candles mounting up a bullish trend the minimum has to be is three okay because we’re not really looking at a trend we’re not looking for a long-term trend we’re not saying the price of an asset was trending up and now it’s going to trend down we’re all looking for a trading opportunity because what we’re looking for is a bullish push and then an indecision candle opposite color in this case so it would have longer upper wick short lower wick but where does it get created it only makes a difference to us in this strategy if it is within our support and resistance zone if it developed here no importance to us if it was here no importance us it’s only important to us here let’s go look at my live chart see it was only important to us here it was only important to us here it didn’t occur okay so it wasn’t important to us here if it here it developed in our support and resistance zone so we had foolish foolish foolish but what it is we didn’t get the opposite color so therefore it didn’t have any value to us here one two three four green candles indecision candle in the support the resistance zone and we got a trading opportunity so this is where there might be something like the opportunity here I don’t know what it was there could have been some type of an opportunity here and it presented itself but it wasn’t part of our tripleheader strategy all kinds of other things could have told us this is a bounce off of resistance okay it’s a reversal there’s lots of things but our tripleheader strategy filters out a lot of things it’s gonna filter out a lot of potential trades not a strategy isn’t gonna give you every good trade in a scenario it’s gonna tell you this trade is available to you now and it’s a good trade it’s got a very high probability rate yeah that’s why you have to have multiple strategies but we’re not finished yet because we haven’t been able to make a trading decision we’re getting close but we haven’t made a trading decision so when price hits resistance and we get an indecision candle okay we start to make an understanding so let’s try to break down into a story so you understand why it indicates indecision a larger upper wick shows the buyers tried to continue the bullish trend but failed sellers took control of price and pushed it down but we had a small bearish body the small bearish body shows the sellers went out unable to close lower then the open this is significant because in the three candles before the price consistently closed higher than the open this shows us the buyers were losing their power the small lower wick the small lower wick tells us and now this gets flipped over and reversed if price is moving down instead of up the small lower wick tells us the sellers we’re not able to gain much control either so this is what we have so altogether this indecision candle formed right after strong bullish candles suggest that the power has shifted from a decidedly bullish market to an undecided market now remember just because the market is undecided doesn’t mean that the next candle and the Bulls can’t jump in there and just push it straight up and if you would have sold you would add a losing trade so first of all we’ve got to have the push up we have to have the indecision candle opposite color in the support zone or the resistance up but there’s one more thing we need to look at the indecision candles for me on top of a resistance area if you remember in the previous you know previously we talked about about resistance and being a sell area so the image above shows us three bullish candles price stalls and we get indecision for me on top of that area this tells us that the sell area is working when price pushed into that area sell orders triggered and buyers could no longer continue upward that is the story of price in this chart and the story gives us a nice little price action trade setup price action allows us to take many different types of trades reversals continuations rage swing breakouts and scalps to name a few but we want to look at the preceding trend the indecision candle and then the reversal trend so we first looked at the preceding trend and like I said this is not a trend line it’s not a long-term trend it’s just that short-term current trend then we look for indecision candle a reversal setup will have one of three indecision candles indecision candles need to form on or near the area support and resistance if the indecision candle does not form on or near the area of support and resistance is not valid like you see here an indecision candle is a in a bullish proceeding trend indicates that buyers are possibly losing control however an indecision candle does not indicate that price will reverse with any degree of certainty an indecision candle indicates only one thing indecision so as you see here in his downtrend we had several indecision candles come available but they didn’t develop within the support or resistance area so we cannot enter just yet we need confirmation now on top of it okay because now we’ve got two things we’ve got our support and resistance zones we have our indecision candle forming and within the support and resistance on the reversal trend is the third and most important part of the reversal setup this is where we make our profit after a preceding trend stalls and support and indecision forms you often see a reversal trend so the image in the background shows you how that same trend we’re looking at forms into that bearish indecision okay and forms into that reversal in this case we saw a transition of power from the Bulls to the Bears where do we enter the trade though you know what a reversal trade looks like you know that you need to enter after indecision and before the reversal trend because you can’t enter too late because there’s only going a short distance so entering trays does not need to be difficult remember my goal here is to keep it simple getting it in at the right time so we need the preceding trend the indecision candle and then the reversal trend you need to enter the reversal trade after part two the indecision candle but before part three the reversal trend completely takes off obviously if you enter after the reversal trend takes up it’s too late but sometimes our reversal is only one or two candles it could be 20 or 30 pips you also need to make sure you do not enter too early as you could be entering a false setup so here you would have got nailed to the wall so failed trades happen there’s nothing you can do about them except making sure you place your stop-loss significantly close so that you don’t lose too much but getting it at the right time lowers the percentage of failed trades many people wait for a candle closing it in but I have tested this thoroughly and waiting for closes get you in too late so once you get the reversal candle okay you need to enter the next trade when that next candle breaks out of that support or resistance zone this means you miss out on a lot of potential profit if you waited too late which is obviously not good the key to reversal trading or trade any trading is the matter of timing so how do you do that so I have tested this countless times and I have found three awesome strategies entering on the new high or low entering on the retracement entry or entering on the distance when the inn in candle forms in the area of support and resistance II my thumb is what I see that indecision can’t have formed within that area supported resist and when it’s the opposite color I will set my entry point for when the next candle breaks the low of that previous candle I’ll set my stop-loss right at the tip of the high of that indecision candle so when this third candle forms the minute it touches that level I bye all right in this case I sell now you will get messed up sometimes but very rarely we said our entry a few pips below the low of the indecision candle and our stop-loss a few pips above the highest point of that candle in trading highs and lows are very important if a new low is created from resistance it indicates sellers of taking control of price which means we can get we want a short okay so here is the exact opposite method now in order to calculate your risk reward ratio you have to be able to set limit orders or eggs and points targets are also very easy you need to make sure your target comes before a major barrier like the next area support or resistance the minimum risk to reward ratio I use is one to one and a half this means that my target has to be one and a half times the size you should be using a minimum of one to two but what’s critically important is this is where you would set your entry this is where you set your stop-loss we’ve already gone through that okay now our target point which said here it would be one and a half times or in your case like I said two times this if two times this puts you in two or above and not an area of resistance or support you can’t make that trade because most likely that trade will get stuck here or bounce off of here so if your target and your risk for reward ratio falls below or above a major support of resistance area you need a say uh-oh that trades not for me so what you have here is this is where we’d have to set our entry this is where we put our stop loss when we calculate our risk reward ratio this is where our target would be but we have this problem in between so therefore we can’t make that trade so I always start out with my trend line then my support and resistance levels then I look at price action and finally you have one last confirmation tool and that final confirmation before you push that entry point that entry by order is volume volume should be pushing upward when you get that entry point when you have the indecision candle and price breaks below the support or above the resistance level and it’s coming down towards where you set your entry level you should see a change in volume it doesn’t need to be mementos okay let’s see here see here here like I said this could’ve give me a potential trade we had that increase in money but it did not make the support and resistance area but here this would have given you your final support because you saw the push and a shift in the volume that would said okay let’s make this trade so you don’t want to make it over complicated you’ve got your support and resistance you have your indecision candle you have your set your entry point your exit point your target point you get volume and then you enter your trade hey sure you may want to use MACD and RSI stochastics so all these complicated things but what are they gonna end up telling you anyway make a trade so why make it very very complicated but test test test you need up different methods for doing different things because if you’re only waited for this tripleheader strategy you might get one trade in a while because but when it does offer you the trading opportunity it’s a very highly successful trading opportunity and on that note I’m gonna wrap this up now if you notice on your screen I’ve put together some handouts for you okay these are free there’s nothing you have to register for sign up just click the download button I give me the day trading hand al-qaida I’ve given the introduction to technical analysis great resource book from investing.com I gave you the momentum day trading strategy and I gave you a trend following strategy all different strategies you can use and you know and put in to your daily trading so thank you very much for joining us have a great holiday season have a great trading year in 2020 and we’ll talk to you again real soon bye now