Forex Trading Case Study. Forex trading is a way of investing, where currencies are bought and sold against each other depending on how you are the entrepreneur, based on your valuation or signal, believe that the money will go up and decrease in value against one another. When your broker offers you a price for a currency exchange, he offers two Forex trading is not like commodities or shares. It takes place directly between two parties in an over-the counter (OTC) market, and does not occur on exchanges. A global network of banks Case study 8. Mike Concludes His Analysis & Sells Silver After getting strong bearish signals from both the technical and fundamental analyses, Mike decides to go short on silver. He sells the 12/7/ · Forex Trading makes a lot easier for entry and exit level in regards to any significant currencies within a couple of seconds to spread out in all market conditions. The Forex What Is The Trick To Forex Trading? Maintain a low trading volume and hold the currency pairs for a few days. To be on top of your market you must get a detailed understanding of the ... read more
K, having almost no time in his day, he was looking for a side income that could generate him long term wealth, he joined Onyx and finished the course within his spare time. What results did he achieve : Richard has now been trading and understanding the markets by himself and continues to educate and grow online.
How did he do this: He simply put the initial work in of learning the deep root fundamentals that we teach. Who Is He: Lachlan is a member of Onyx, he is from Sydney, Australia and works full time as a structural engineer, he was looking to learn more about trading and increase his educational understanding of trading.
What results did he achieve : He had been trading on and off for about two years with no consistency, no strategy and minimal understanding, Lachlan is now confident and is understanding the markets through deep education both online and practice.
How did he do this: By starting fresh, focusing on learning and educating himself on the fundamental principles of trading. Which is why I wanted to take this time to show you an example of a trade that I recently pyramided. This will allow you to better understand the concepts and methods once we get to the case study below. The following is a crash course on how to pyramid. This will only cover the very basics of the strategy. See the full lesson for more detailed instruction.
As the name implies, pyramiding involves strategically adding to an existing position as a trade begins to move in your favor. Notice in the illustration above how we are adding to the initial buy order as the market retraces to former resistance and begins acting as new support.
The opposite applies to a short position, where we would add on a retest of a broken broken support level as it begins to act as new resistance. Each buy order you see above is for an equal amount. So if you buy 40, units on the initial buy order, you would buy an additional 40, units on buy orders two and three. In order to limit risk you want to move your stop loss up each time the market breaches another key resistance level.
This ensures that the only risk you are exposed to is from the initial entry. But be sure to read the full lesson if anything mentioned above is unclear. The following is an actual trade that I took on AUDJPY. In order for the case study to make sense, we will take a look at each individual level and formation that led to the initial setup.
Once we have outlined the entire setup I will show you how I went about entering at various key levels. The first and most prominent level on AUDJPY at the time was weekly trend line support as shown below. Notice that we have three well-defined touches off of this support level. Take special note of this trend line as it will play an important role later on.
Next up is trend line resistance that is best viewed on the 4 hour time frame. We will stay on this time frame for the remainder of the case study. This level will also become an important factor in the next few charts, so be sure to take note of it. Next is the tipping point that led to the initial setup — a false break of the trend line we just saw on the 4 hour chart. The chart above introduces two new factors. The first being the false break of trend line resistance and the second being the short-term trend line support.
Like most false breaks, the one that occurred above resulted in a swing in the opposite direction. In the case of AUDJPY that meant a move lower over the next few sessions. The chart above illustrates the exact setup and key levels I was viewing at the time it unfolded.
After the bulls failed to hold former trend line resistance new support , the pair formed a bearish pin bar that was respecting the old resistance level. The bears took control shortly after, pushing the market below the next key support level. Upon retesting this level as new resistance the pair formed yet another bearish pin bar. Approximately 24 hours later the market managed a close below the next key level of support.
As we know, old support becomes new resistance. The chart below shows how I went about entering at various stages of the downtrend. Notice how I trailed my stop loss as the trade began moving into profit. This gave me a potential 4. As soon as the next 4 hour candle closed below support I knew I had an opportunity to pyramid.
The second bearish pin bar sell order 2 gave me a great entry point. Because of my initial short position, which was now in profit, my worst case scenario was a 2R profit. This is because my first position would have netted me 3R minus the 1R loss giving me 2R. So as you can see I was already in a risk-free position. Soon after the market moved down and took out the next key level of support. Why risk a blind entry, you ask?
Who Is He: Richard is a member from the U. K, he joined Onyx having zero experience ever trading, he runs a large scale construction company in the U. K, having almost no time in his day, he was looking for a side income that could generate him long term wealth, he joined Onyx and finished the course within his spare time.
What results did he achieve : Richard has now been trading and understanding the markets by himself and continues to educate and grow online. How did he do this: He simply put the initial work in of learning the deep root fundamentals that we teach.
Who Is He: Lachlan is a member of Onyx, he is from Sydney, Australia and works full time as a structural engineer, he was looking to learn more about trading and increase his educational understanding of trading. What results did he achieve : He had been trading on and off for about two years with no consistency, no strategy and minimal understanding, Lachlan is now confident and is understanding the markets through deep education both online and practice.
How did he do this: By starting fresh, focusing on learning and educating himself on the fundamental principles of trading. Who Is He: William is a site engineer in the U. K, he is driven by family and financial freedom, William was looking for a new income stream and something less taxing physically, essentially William was looking for a way to make a smarter and more rewarding income.
What results did he achieve : William was in the markets trading for about three years, he had some results but he mentioned he would always give the profits back to the market, he recently broke a record week for himself. How did he do this: Since William already had some experience, it was time for him to sharpen his tools and put his energy into learning and educating himself further.
Case Studies.
FREE Case Study Reveals: The biggest mistakes traders make when learning to trade. The 3 things successful traders do differently. The simple 4-step system to trade for a living. Get Case study 8. Mike Concludes His Analysis & Sells Silver After getting strong bearish signals from both the technical and fundamental analyses, Mike decides to go short on silver. He sells the Forex Trading Case Study. Forex trading is a way of investing, where currencies are bought and sold against each other depending on how you are the entrepreneur, based on your valuation or signal, believe that the money will go up and decrease in value against one another. When your broker offers you a price for a currency exchange, he offers two 14/4/ · In this video I cover another EURUSD Case study of a trade taken. You will begin to notice a pattern of all the trades taken following very key components (I promise I won't waste your time with trading tricks and strategies that don't really work) I've been trading for more than 20 years full time and I've taught over 10, Forex traders this 12/7/ · Forex Trading makes a lot easier for entry and exit level in regards to any significant currencies within a couple of seconds to spread out in all market conditions. The Forex ... read more
Notice in the illustration above how we are adding to the initial buy order as the market retraces to former resistance and begins acting as new support. Cheers, Justin Reply. Justin Bennett says Hi Sahil, If bullish price action had formed on the retest of former trend line resistance I most likely would have taken a long position. Pyramiding Crash Course The following is a crash course on how to pyramid. I pyramid quite often if given the chance.
Case Studies. Pyramiding Crash Course The following is a crash course on how to pyramid. The following illustration shows a pyramided long position. So if you buy 40, units on the initial buy order, you would buy an additional 40, units on buy orders two and three. The chart below shows how I went about entering at various stages of the downtrend, forex trading case study.