Category Archives for Free Forex Trading Lessons

Are You Sabotaging Your Forex Support and Resistance Strategy?

Make no mistake about it, inside of every profitable Forex trader is a strategy for drawing support and resistance levels. While many traders, including myself, have done it so many times that we often overlook exactly how we do it, there is always a method to our madness. For me, it’s all about using swing highs and lows […]

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How to Tell if a Trade Idea is a Sprint or a Marathon

As expected, my post last week about how I made 54 times my risk on a single trade idea sparked a lot of interest including several questions. The number one question I received about that trade was how I knew to pyramid rather than settle for a simple 4R profit. To clarify, I knew my strategy going […]

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How I Made 54 Times My Risk on a Single Forex Trade Idea

All four entries on NZDJPY

Ever since I wrote about the Forex pyramid strategy, I have received a lot of interest in it from both members and non-members alike. This is especially true for members as they are more “in the know” about my trading activities than non-members. When I wrote that lesson, the idea of adding to a winning […]

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Using Forex Market Correlations as a Leading Indicator

NZDJPY head and shoulders pattern on the weekly chart

True or false, all technical indicators are lagging? The answer – mostly true. It all depends on how you define the term, “technical indicator”. If you are thinking of indicators such as moving averages, MACD or RSI, then yes, these are all lagging indicators as they are based on past price action. But what if I told […]

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To Retest or Not to Retest – That is the Forex Trader’s Question

Chart showing Forex breakouts versus retests

One of the most common questions I receive is, should I wait for the retest of a broken level or enter immediately following the breakout? In other words, if a currency pair breaks out from a head and shoulders pattern, should you wait for a retest of the neckline as new resistance or simply enter once the day closes […]

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The Best Time to Move Your Stop Loss to Breakeven

GBPUSD strategic stop loss placement

The short answer is, never – there is never a good time to move your stop loss to breakeven. Better yet, it is never logical nor strategic to move your stop loss to breakeven. Of course, I realize that “never” doesn’t make for a very informative lesson. Therefore I have decided to expand on that idea with […]

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Defining Key Levels: Fine-Tuning vs Form-Fitting

GBPAUD no breakout at key resistance level

A common misconception in the world of Forex is that you are not supposed to move your support and resistance levels once you have them set. In other words, changing these levels as the market moves. The reason this is perceived to be a bad thing is due to something we traders call “form-fitting” (or at least […]

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How to Confirm Key Levels Using Swing Highs and Lows

EURGBP key support and resistance levels on the daily chart

Your ability to properly define support and resistance levels on your charts is directly correlated to the odds of you becoming a successful Forex trader. For those of you who have followed me for some time, this statement should sound familiar. But even if this is “old news” to you, it doesn’t make it any less important. In […]

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Ignoring the Weekly Time Frame Can Cost You

GBPUSD bullish engulfing bar on the weekly chart

How often do you look at the weekly time frame? At least once before every trade or every once in a while? Most Forex traders I speak with don’t use the weekly time frame nearly as much as they should. This is especially true for the traders who recently made the transition from the lower time frames […]

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Waiting for a Retest Will Make You a Better Forex Trader

Characteristics of a retest in the Forex market

If you have been a reader of this site for more than a day or two, you have undoubtedly seen me write, “wait for a retest” in the commentary. If you haven’t seen this yet, take a look at any of the recent setups and you are sure to find it there. What may not […]

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Trading Rising & Falling Wedge Patterns for Huge Profit

Forex rising wedge pattern characteristics

Of all the reversal patterns we can use in the Forex market, the rising and falling wedge patterns are two of my favorite. They can offer massive profits along with precise entries for the trader who uses patience to their advantage. One of the great things about this type of wedge pattern is that it typically carves […]

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How to Trade Forex “Blind” Using Average Daily Range

How to trade Forex blind

Here’s a trick question for you – every trade setup we take here at Daily Price Action must include some form of confirming price action such as a pin bar or engulfing bar, correct? Mostly correct. There are times where I will trade without the need for any confirming price action. I’m not referring to a […]

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How to Trade the Inside Bar Pin Bar Combination

Characteristics of the inside bar pin bar combo

For those who are familiar with how I like to trade, you know that I’m a big fan of the inside bar as well as the pin bar. Both of these strategies are extremely reliable and profitable when used correctly. But what happens when you get an inside bar that is immediately followed by a pin bar? Should it […]

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How to Trade the Bullish Engulfing Pattern

Bullish engulfing bar in the Forex market

The bullish engulfing pattern is one of my favorite reversal patterns in the Forex market. I have previously written about how to trade the bearish engulfing pattern, and as you might expect there are many similarities between the two. As similar as they may be, I believe each deserves its own spotlight given the significance of […]

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The 5 Characteristics of a Profitable Inside Bar Setup

bullish inside bar in forex

One of the most common questions I receive via email is, “what makes an inside bar worth trading?”. So rather than continuing to answer these questions one at a time, I figured why not address the topic in a lesson? Truth is, a favorable inside bar setup doesn’t come around often. Of the price action strategies […]

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