Will their mind try to convince them that there really is a solid level there to make a trade when the level is not a solid one at all? This is a very risky way of doing it because the price action story is king. To speed up your routine, what you should be doing is monitoring the major levels that you have marked on your daily charts. You do not have to go to every candle close, analyze the candle to see if it has formed a trigger, and if it has, try and find a suitable level.

Chart example below shows price forming a Bearish Engulfing Bar on 30 minute chart using the same daily chart level as daily chart above. NOTE: You do not have to trade smaller time frames and can trade the daily charts only. You can use your MT4 or MT5 charts to send you a price alert to your phone or email and tell you when price has got close to your level or broken it.

Pretty cool huh! Making high probability trades is more than just entering trades. It is your whole mindset and trading preparation. The price action story is king. Once you have found the best story that stacks the odds in your favor, finding the entry becomes confirmation. This lesson has taken some explaining, but it is more than worth it because it can save you a heck of a lot of time in front of the charts.

The best thing you can do is to start implementing this information with your demo account and start looking for high probability trigger signals at the major support and resistance points.

You can get a free correct New York Close demo account HERE. Leave you comments and questions in section below;. Johnathon is a Forex and Futures trader with over ten years trading experience who also acts as a mentor and coach to thousands and has written for some of the biggest finance and trading sites in the world. Before coming across this great article, i used to jump in the market and forcing the market to give me trade opportunities. FOREX SCHOOL ONLINE IS A GREAT SCHOOL Thank you so much JOHNATHON FOX.

I went through your article and I am overwhelmed. Your email address will not be published. Forex Trading for Beginners. Price Action Trading. Forex Charts. Forex Trading Strategies. Money Management.

Best Forex Trading Platforms. Trading Lessons. com helps individual traders learn how to trade the Forex market. WARNING: The content on this site should not be considered investment advice and we are not authorised to provide investment advice.

Nothing on this website is an endorsement or recommendation of a particular trading strategy or investment decision. The information on this website is general in nature so you must consider the information in light of your objectives, financial situation and needs. Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted.

Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence or obtain advice where necessary.

This website is free for you to use but we may receive a commission from the companies we feature on this site. We Introduce people to the world of currency trading. and provide educational content to help them learn how to become profitable traders. we're also a community of traders that support each other on our daily trading journey. com is not a financial advisor.

Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results. Finixio Ltd, Tower 42, 25 Old Broad Street, London EC2N 1HN [email protected]. I sure know I wasn't. What is High Probability Trading? High probability trading refers to the likelihood of whether a trade will win or not. Using Forex Supply and Demand When traders first start out trading, they are often amazed at how price respects the same levels time and again, over and over.

But, it also allows you to make trades on both the higher and smaller time frames. How to Use Your Support and Resistance Levels For the resistance level to hold, the bears the sellers will need to be stronger than what the buyers bulls are. Marking Your Important Levels If you are hunting your trade setups from the daily chart, and then using the daily charts major levels to find your trigger signals, it means you will always be assured of using major support and resistance levels that you know the rest of the market is also keeping a close eye on.

There is also another way that literally, at the end of the week, takes hours extra. Once price breaks one of your levels, you can then reassess and mark a new level. Trading the Daily and Intraday Charts The reason you have marked your levels on a daily chart is so that no matter what time frame you go to, whether it is a 15 minute time frame or staying right on the daily chart, you know that the support or resistance level is a major level.

What they would be far better off doing is using the routine we are discussing above. How to Trade With Speed and Super High Probability The major risk a trader faces when finding trades this way is that now they have found the trigger first. What you are watching for is when price gets close to one of your major levels.

Last Thoughts Making high probability trades is more than just entering trades. Safe trading, Johnathon Leave you comments and questions in section below;. About Johnathon Fox Johnathon is a Forex and Futures trader with over ten years trading experience who also acts as a mentor and coach to thousands and has written for some of the biggest finance and trading sites in the world.

This first chart below is of GBPUSD on the monthly time frame and what is important to note here is the fact that:. So what is the best way to trade these high probability trading setups that happen in the larger time frames?

Now, I said previously that trading setups that happen in the larger timeframes take a lot of time to form…years even. With that, the chances of trade setups forming frequently in any of these 20 plus currency pairs increases, but regardless, its still going to be a long wait. Well, it think you need to separate the high probability trading in larger time frames from your daily or regular trading activity.

So essentially, its like a two separate trading really. So when the time comes and a trading setup in the larger timeframe is forming, how do you actually take the trade then? So when price was heading up to this resistance level I identified on the monthly chart, I then switched to the 4hr time frame for my trade entry and my sell signal was a bearish pin bar shooting star :.

There are some forex trading strategies here that can be used successfully in trading the high probability forex trading setups in the larger timeframes:. Just think outside the box and a little bit…Use a little bit of imagination when trying and deciding what is the best way to use these forex trading strategies to trade these setups.

Means the world to me if you do so that I can be more motivated to write more useful forex trading tips for you. Many Thanks. Well, let see, shall we? But before you go any further, you need to understand what high probability trading is. High Probability Trading Setups-How and Where Do They Form? What are my reasons then?

They can be seen clearly by every trader. Examples of High Probability Trading Setups On Support And Resistance Levels On Larger Time frames I will show you a few examples of how prices react to support and resistance levels on larger time frames so you will understand what I talking about and I may just turn you into a believer. This first chart below is of GBPUSD on the monthly time frame and what is important to note here is the fact that: there were obvious support and resistance levels and when price hit those those level, it reacted as anticipated.

When most traders first start trading they are not looking to make high probability trades and they are not looking to create an edge over the market. I was looking for how I could make winning trades and a lot of them. However; after enough losses and enough lessons from the market, it soon becomes clear that unless the trades I was placing had a higher probability of winning than losing, I would continue to get flogged. Wikipedia does not do a great job of explaining in simple terms what high probability is.

The basic definition is; something that occurs with a higher probability than something else. This player has a high probability chance of getting their next first serve into play. Probabilities are just that; probable. They are not definite or guaranteed and this is why traders must use money management and risk control, ie; never bet the farm on any one trade.

Making high probability trades is crucial for a successful trader because no matter how great the trader is, they will have losing trades. This is a fact. The market will move in unexpected ways and losses will happen.

Traders can create an edge over the market and they can do this by making trades that have high probabilities. The best way to do this is by stacking the odds in your favor with each trade you play. When traders first start out trading, they are often amazed at how price respects the same levels time and again, over and over. Price may not have touched a level for 20 years, but it will still often find support or resistance at the same level that it had in the past.

Why is it that support and resistance works so well? And, why is it that so many traders around the world, from all the major banks to the biggest professional traders, all use support and resistance?

Support and resistance works because of supply and demand and order flow. Just the same as supply and demand affects the price in the real world from everything such as gas to the price of an apple, support and resistance also works the same way. Below is an image showing how the market is made up of two teams, the buyers, who are known as the bulls, and the sellers, who are known as the bears. This is the same in real life. Support and resistance is used from the biggest of the biggest guys in the world, such as the bank's, the trading organizations and brokers, right down to the smallest retail traders, and everyone in between.

It is literally used by almost everyone and that is what makes it so POWERFUL. For the resistance level to hold, the bears the sellers will need to be stronger than what the buyers bulls are. If we think of the market as I have just explained it, and we think of the many different participants, each time a support or resistance level comes into play, there is a fresh wave of orders trading the support or resistance level.

For example, if there is a really obvious resistance level, then a lot of people are going to look to enter short bearish trades, looking for the resistance level to hold. If you are hunting your trade setups from the daily chart, and then using the daily charts major levels to find your trigger signals, it means you will always be assured of using major support and resistance levels that you know the rest of the market is also keeping a close eye on.

If however, you start going down to the intraday charts, such as the 4 hour, 1 hour, or even lower, and then finding support and resistance, you run the huge risk of making trades from really weak and insignificant levels. Below, I go through the exact routine of how you want to be doing this, so that you can both have the highest probability setups, and also, cut it down to the smallest amount of time possible going through your charts. What you want to make sure though, is that when you are picking your levels on the daily chart, you are only picking levels that you actually want to make trades at.

You can market profit targets and stop loss levels if and when you find a trade. The key to doing that is in the way you go about marking up your key support and resistance levels, and after that, how you go about hunting your trades during the week. There is a really good way that can speed up the amount of time it takes you to go through your charts and to hunt for trades. The fast, logical, and efficient way is based around marking support and resistance levels on the daily charts and having a clear, set routine.

The routine to find the best setups and cut out hours of wasted time starts Sunday night or anytime over the weekend you have time, as long as it is before the market opens. You go through all your charts and mark up your major daily support and resistance levels, remembering that you are ONLY marking the major and obvious levels that you would like to hunt for trades at, should price move into it.

Once you have your support and resistance levels plotted, it is then just a matter of during the week, following the market, and adjusting them as price moves. As we will discuss in just a moment, you can look for trades on smaller time frames a lot quicker and without going through a ton of charts wasting your time using the preparation work you have already put in.

The reason you have marked your levels on a daily chart is so that no matter what time frame you go to, whether it is a 15 minute time frame or staying right on the daily chart, you know that the support or resistance level is a major level.

As already discussed at length, the major levels are where the major supply and demand points are, and that is where the bulls and bears have the biggest battles for control. This next part of the routine is super important to your week and super important to either how long you spend looking at your charts and how much time you have for other things you want to spend time on.

A lot of traders get this part wrong and in turn, it costs them because they sit in front of their computer for far too long! A lot of traders wait for every 8 hour candle close, every 4 hour candle close, and every 1 hour candle close.

A trader doing it like this may have anywhere from pairs and markets in which they are watching for setups, so each time a candle closes, they have to go through every single pair and look for a potential setup.

You could imagine how long this takes if they are going through 60 pairs individually and potentially 10 times or more per day which a lot of traders do. The simple reason for this is; even if the trader does find a trade trigger, they still need to then look for a compelling support or resistance level to back up the trigger signal.

They may have found the trigger first, but there is no key level. The major risk a trader faces when finding trades this way is that now they have found the trigger first. Will their mind try to convince them that there really is a solid level there to make a trade when the level is not a solid one at all?

This is a very risky way of doing it because the price action story is king. To speed up your routine, what you should be doing is monitoring the major levels that you have marked on your daily charts. You do not have to go to every candle close, analyze the candle to see if it has formed a trigger, and if it has, try and find a suitable level.

Chart example below shows price forming a Bearish Engulfing Bar on 30 minute chart using the same daily chart level as daily chart above. NOTE: You do not have to trade smaller time frames and can trade the daily charts only. You can use your MT4 or MT5 charts to send you a price alert to your phone or email and tell you when price has got close to your level or broken it. Pretty cool huh! Making high probability trades is more than just entering trades.

It is your whole mindset and trading preparation. The price action story is king. Once you have found the best story that stacks the odds in your favor, finding the entry becomes confirmation.

This lesson has taken some explaining, but it is more than worth it because it can save you a heck of a lot of time in front of the charts. The best thing you can do is to start implementing this information with your demo account and start looking for high probability trigger signals at the major support and resistance points.

You can get a free correct New York Close demo account HERE. Leave you comments and questions in section below;. Johnathon is a Forex and Futures trader with over ten years trading experience who also acts as a mentor and coach to thousands and has written for some of the biggest finance and trading sites in the world.

Before coming across this great article, i used to jump in the market and forcing the market to give me trade opportunities. FOREX SCHOOL ONLINE IS A GREAT SCHOOL Thank you so much JOHNATHON FOX. I went through your article and I am overwhelmed. Your email address will not be published. Forex Trading for Beginners. Price Action Trading. Forex Charts. Forex Trading Strategies.

Money Management. Best Forex Trading Platforms. Trading Lessons. com helps individual traders learn how to trade the Forex market.

WARNING: The content on this site should not be considered investment advice and we are not authorised to provide investment advice. Nothing on this website is an endorsement or recommendation of a particular trading strategy or investment decision.

The information on this website is general in nature so you must consider the information in light of your objectives, financial situation and needs. Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted.

Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence or obtain advice where necessary.

This website is free for you to use but we may receive a commission from the companies we feature on this site. We Introduce people to the world of currency trading. and provide educational content to help them learn how to become profitable traders.

we're also a community of traders that support each other on our daily trading journey. com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

Finixio Ltd, Tower 42, 25 Old Broad Street, London EC2N 1HN [email protected]. I sure know I wasn't. What is High Probability Trading? High probability trading refers to the likelihood of whether a trade will win or not. Using Forex Supply and Demand When traders first start out trading, they are often amazed at how price respects the same levels time and again, over and over. But, it also allows you to make trades on both the higher and smaller time frames.

How to Use Your Support and Resistance Levels For the resistance level to hold, the bears the sellers will need to be stronger than what the buyers bulls are. Marking Your Important Levels If you are hunting your trade setups from the daily chart, and then using the daily charts major levels to find your trigger signals, it means you will always be assured of using major support and resistance levels that you know the rest of the market is also keeping a close eye on.

Price may not have touched a level for 20 years, but it will still often find support or resistance at the same level that it had in the past. The price action story is king. A lot of traders wait for every 8 hour candle close, every 4 hour candle close, and every 1 hour candle close. If you are hunting your trade setups from the daily chart, and then using the daily charts major levels to find your trigger signals, it means you will always be assured of using major support and resistance levels that you know the rest of the market is also keeping a close eye on. I went through your article and I am overwhelmed. So what percentage success are we talking about here?

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