what's the easiest and simplest strategy
to analyze the chart
let's trade this strategy in live market
[Music]
conditions
hi and welcome back to trading strategy
testing channel where we learn and test
your trading strategies and share with
you tips on how to improve your forex
investment
our channel is growing every day thanks
to your support and encouragement
the live market series where we trade
the most popular strategies seems to be
extremely popular within our community
there is always a need to learn more
about the best forex
stocks and commodity trading strategies
which is the purpose of this channel
we enjoy trading we just wanna teach it
with live market actions
today we will share with you a simple
strategy on how to analyze the chart and
enter a live market trade which will
hopefully make us some profit
as usual we will carry out our
fundamental and technical analysis
explain the strategy and implement it in
live market conditions
if this is your first time here consider
subscribing to the channel and give this
a video a thumbs up to help the channel
grow and encourage us to make more
content in future
let's get started today we are going to
trade the usd swiss franc's pair
we will carry out a simple fundamental
analysis if you wish to go through the
entire strategy and to understand our
choice of the usd swiss franc spare
please consider checking out the two
videos we have published recently where
we traded forex based on the gold
fluctuation
the two videos are extremely helpful for
traders who wish to trade the aussie
dollar and the swiss franc's pairs
to sum up gold has been consolidating
following a long stint to the upside
and has started to show signs that a
break to the downside is on the verge
the u.s markets are closed today due to
the labor day but we can notice the
development of various technical setups
that need to be monitored
especially if you are interested in gold
or its highly correlated pairs
based on our analysis the gold is
bearishing further since the release of
the unemployment figures last friday and
will eventually approach the 1900
level soon we have traded the
unemployment report major news last
friday
you can find the video in this channel
before we enter the market
let's check out the performance of the
gold in the last 24 hours
you can clearly see a solid bearish
momentum
we have discussed on various occasions
in the past the strong correlation
between the price of the gold in the
swiss francs
25 percent of switzerland's money is
backed by gold reserves
as well as the safe haven status of the
swiss economy
which is sustained due to the policies
of the swiss national bank
as a result the swiss franc moves along
with gold
on the other hand there's still a
psychological tilt when it comes to gold
whenever the value of the usd decreases
there are many theories behind this
financial relationship
the obvious one is the fact that a
falling dollar increases the value of
the other currencies
this increases the demand for different
commodities including gold
if we combine both facts we can assume
that when gold goes up
usd swiss francs goes down on the other
hand when gold depreciates
usd swiss francs goes up based on the
fundamental
analysis we conducted earlier today as
well as the previous analysis that we
have made last week
we can come to a conclusion that the
price of gold will see a bearish
pressure
as it continues to make lower lows but
it will probably remain above the 1900
critical support
before gearing up for another test of
the 2 000
level we will look for an opportunity to
go short on the usd swiss francs
[Music]
all right let's do our technical
analysis to locate a strong entry point
we have received many requests from the
subscribers in the comments section
asking us to make a tutorial on how to
draw the major key levels
well today we will share with you some
tips on how to locate the strong key
levels
we will use the renko chart which is a
type of financial chart that measures
and plots price changes
it consists of a succession of bricks
that shows the obvious market trends and
increases of the signal-to-noise ratio
compared to typical candlestick charts
we will adjust the settings of
our chart you can proceed accordingly
feel free to leave your questions in the
comment section
so we can produce the content that will
help you make your trading journey
easier and more profitable
let me know if you wish to learn more
about the renko chart and its settings
after setting up the chart we will draw
the major support and resistance levels
the renko chart makes it easy for us to
define the key price zones
once done we will switch back to the
normal candlesticks chart to draw the
remaining support
resistance and trend lines later make
sure to highlight the most recent swing
higher lows
as usual start from the daily time frame
all the way down to the 15 or five
minutes chart which is where we tend to
set our entry and exit
avoid drawing the trend lines which are
not obvious and don't spend too much
time
trying to identify the swing high and
lows if it is not easily seen
it probably means that it's not that
significant this trading method could be
applicable in forex
stocks commodities and indices markets
in some cases you need to pay attention
to gaps which occur when the securities
price makes a significant spike in
either an upward or downward direction
you can notice a significant bearish
momentum prior to our entry zone
which is associated with the closure of
the london session
always avoid entering a trade when the
market is opening or closing
you might be stopped out in a matter of
seconds the market tends to be in a high
volatility condition during this
particular time you can notice that our
trade is taking place after one hour
from the opening of the new york session
which is enough time to see some regular
patterns always remember to highlight
any key level that might strengthen your
stop-loss setup
it's always recommended to have some
major support resistance or key levels
protecting the stop loss
the 200 exponential moving average
historical and psychological as well as
the pivot point levels
are also important to have a valid
stop-loss entry
if you are not able to ensure such setup
be sure that the market is unable to
offer you a reliable entry at the moment
so it's better to stay out only enter
when you have a solid setup to make sure
that your hard-earned money is properly
invested
we have used a calculator to identify
the right volume and control the risk
allocated to this trade
avoid risking more than three percent of
your investment
you can refer to our previous videos in
this channel for more ideas on how to
properly control your financial risks
when trading forex
stocks are indices trading forex or
other markets is just a short-term
investment business
remember to secure your financial
position at all times
it is important to have the right entry
volume and take profit
in case you have some doubts regarding
your trade the best thing to do is to
avoid entering the market
another risk that seems to be neglected
by many traders is the financial
liquidity risk
some forex currencies tend to be more
liquid than others
the currency pairs with high liquidity
show high levels of supply and demand
trades can be executed very quickly and
it's better to have direct access to the
platform
or at least set an alarm to be able to
trigger the trailing stop feature
when the price gets to your desired
level all right the buy stop order has
just been triggered while waiting
we will answer some questions from the
youtube comment section
kindly give this video a thumbs up and
subscribe to this channel to be notified
every time we post new content
the first question is from esther
regarding the pivot point indicator
pivot points are usually used by traders
in equity and commodity exchanges
they're calculated based on the price
variations during the previous trading
sessions
and they're used to predict support and
resistance levels in the current or
upcoming session
the basis of pivot points is such that
price will often move relative to a
previous limit
there are different styles of trading
the pivot points the most popular ones
are the breakout and the swing strategy
the entry in both cases should be based
on a pending buy or sell stop order
if you miss the entry it's better to
avoid using a limit order
as breakout are pretty common in this
strategy regarding the exit
you can use the different levels the
pivot point indicator adds to the chart
as a support to your trailing stop exit
strategy
we are making a video soon trading the
pivot point in a live market condition
the video will cover more information
about our experience trading this
popular indicator
let's get this video to 1000 like to let
us know whether you're interested to
know more about this popular indicator
the second question is from oscar who
wants to know the difference between the
bid
and ask as well as my favorite time
frame the bid and ask prices are usually
different from one another
bid price being low and ask price being
high
the difference in the bid and ask price
for an exchange market is called a
spread
the bid is used when selling a currency
pair it is associated with how much of
the quoted currency will be obtained
when you buy one unit of the base
currency
on the other hand the ask price is used
when buying a currency pair
it is the amount of quoted currency that
has to be paid in order to obtain one
unit of the base currency
regarding your second part of the
question oscar i don't have a favorite
time frame
i just use the weekly daily and hourly
one to draw the major support and
resistance levels
and leverage the 15 and five minutes
time frames to define the most recent
swing high and lows
and also to enter the market i always
advise my students to use all of them
properly
for example it's not recommended to
enter a trade based on the one hour
chart
even if you're swing trading the answer
might be different if you are a system
trader or you're trading other financial
instruments such as stocks
securities or indices
[Music]
by the way we would like to thank you
for all the positive and sweet messages
and comments you guys are leaving every
day
it means the world to us every thumbs up
subscription and share
encourages us to make more video content
and share as many tips and
recommendations that we have acquired
throughout our years of experience in
trading forex and other financial
instruments
we will continue offering more tutorial
and live market trading sessions
so make sure to hit on the subscribe
button as well as the bell icon to be
notified as soon as we release a new
video
and make sure to join our social media
accounts to be able to interact with us
as well as our fast-growing community
[Music]
we are about to hit the take profit
level you can proceed to close a certain
portion of your position
and let the trade run with a manual or
auto trailing stop loss
i won't do this today as it's the 7th of
september which is the labor day in the
united states
and we just don't have enough reports or
news to support our trading direction
all right we have just hit the take
profit level and made a profit of 10
pips
i checked the chart afterwards and
realised that we could have made a
minimum of 20 pips
if we hold the position longer but small
consistent profits will get you to
double your account in a very short
period of time
always make sure that your risk is under
control and all of your actions are
supported by solid technical and
fundamental facts
we will cover in the coming videos some
tips on how to decide whether you need
to secure your position or not
make sure to subscribe to our channel to
be notified as soon as we release the
video
wait we have got a little surprise for
you guys
as per your request we are going to
start a new youtube series where we grow
a small forex account together
we are not sure of the balance you want
us to start with so we created a poll on
our facebook group to get your opinion
if you are not in the group yet feel
free to join us by clicking on the link
available in the description section
thank you for watching and happy trading
[Music]
you