Category Archives for Free Forex Trading Lessons

Determine Profit Targets Like a Pro With Measured Objectives

Forex head and shoulders measured objective

One of the most challenging aspects of trading is setting a realistic and probable profit target. In fact, most traders that I’ve talked to over the years would put taking profits above entry strategies in terms of where they struggle the most. It is true that knowing where to take profits can be harder than finding favorable entries, […]

Continue Reading

How to Use the News to Gauge Market Sentiment

using negative forex news to gauge market strength

As you may well know, I’m not a fan of paying attention to the news. Most of it bores me to tears if I’m honest. Not only that, but paying attention to the news can create a lot of mixed signals, leaving you stuck in a constant state of analysis paralysis. That said, the news […]

Continue Reading

Forex Price Action – Learning to Read the Angles

euraud daily forex chart

The internet is flooded with talk of pin bars, inside bars and engulfing bars. But what about the story behind the price action on your chart? And not just the key levels you have identified. I’m talking about the angle at which price moves within a market. Becoming a successful Forex trader through the use […]

Continue Reading

How to Trade the Bearish Engulfing Pattern

bearish engulfing pattern at swing high

Your success as a Forex trader depends on your ability to identify reversals in the market. The better you become at doing this, the closer you are to experiencing consistent profits. One pattern that can greatly assist you in doing just that is the bearish engulfing pattern. I’ve written before that, as price action traders, our job […]

Continue Reading

Pyramid Trading Strategy (Double Your Profit Potential)

the mechanics behind pyramid trading

The Forex pyramid trading strategy you’re about to learn will greatly increase your chances of making consistent returns as a Forex trader. It can literally double or even triple your profits on a single trade. But as profitable as pyramid trading can be, it can be just as damaging if used improperly. Which is why I […]

Continue Reading

A Unique Way to Use Average Daily Range to Your Advantage

GBPNZD daily forex chart

Average True Range (ATR) and Average Daily Range (ADR) are two of the most common measurements used by traders in the financial markets. You may know them as the ATR and ADR indicators. Wait, this is a lesson about an indicator? On Daily Price Action?… Absolutely not. 😉 This is a lesson about the concept of average range, rather than a […]

Continue Reading

How to Use Forex Gaps to Your Advantage

AUDUSD daily forex chart

The beginning of a new year is the perfect time to talk about Forex gaps. A look across the market shows several year-open gaps – some big, some small. However, these aren’t the only gaps you should be paying attention to. Why are gaps so important, you ask? Simply put, gaps can provide you with extra confluence […]

Continue Reading

Weekly Trading Tip: How to Trade Forex Using a Directional Bias

Forex weekly chart showing descending channel

As price action traders, we tend to overlook the weekly time frame. This is a huge oversight. The weekly time frame can prove to be extremely advantageous when developing a directional bias for a particular market. Have you ever wished there was a way to easily determine a market’s bias? That is, figure out which way a market […]

Continue Reading

Boost Your Profits by 250% With This Forex Entry Strategy

How to boost trading profits with this Forex entry strategy

Using conventional Forex entry strategies to trade price action is no doubt lucrative. But what if I told you that there was a way to double or even triple your profits by simply using a different entry strategy? Interested? I thought so. The Forex entry strategy we’re going to look at today is used with the pin bar […]

Continue Reading

Mean Reversion: A Guide to Market Timing

using the 10 and 20 moving averages as a mean reversion tool

Mean reversion is a mathematical theory that is often used in the financial markets. It represents a market’s tendency to move back to the average price after an extended move. This can be an average price on a trading chart or even the growth rate of a particular economy. Speaking of timing, you may have heard the saying, […]

Continue Reading

How to “Fine Tune” Your Key Levels

AUDUSD bullish pin bar on the one hour chart

You probably know by now that the use of key levels in the market is a large part of what makes a Forex trader successful. But how can you be sure that the placement of a level is as accurate as it can be? Should the level be placed at the highs or lows of each candlestick or […]

Continue Reading

How to Trade Equidistant Channels

GBPNZD ascending equidistant channel on the 4 hour chart

The equidistant channel has become one of my favorite technical patterns to trade. It’s formed by two parallel levels of support and resistance. The equidistant channel can be bullish (ascending) or bearish (descending) depending on the direction of the trending price action. In this lesson, we’ll take a look at both the ascending and descending channels. […]

Continue Reading

A Simple Checklist for Trading Pin Bars

checklist for trading pin bars

Is it oversimplified to say that in order to become a consistently profitable Forex trader you need to only trade the best setups? Probably – I think we can all agree that this is considered common knowledge. But what isn’t so common is what makes a pin bar setup the “best”? Furthermore, how do we identify these […]

Continue Reading

How to Protect Yourself From a False Breakout

illustration of a false breakout

One of the more frustrating experiences when trading Forex is the false breakout. It often comes on the heels of a perfect price action pattern that seems to have everything going for it. You set your pending order, the market breaks out as expected, but before you know it the market has fallen back inside the aforementioned […]

Continue Reading

The Forex Breakout Strategy You Need to Master

forex breakout wedge pattern

There are dozens of breakout strategies available to traders, but the Forex breakout strategy you’re about to learn is my personal favorite. This strategy has been responsible for some of my largest gains over the years. In this lesson, you will learn how to identify the setup, when to enter the market as well as how to […]

Continue Reading