The definition of an outside bar is a price bar with lower low and higher high than the previous price bar. This pattern is considered an important market signal, one often seen at both tops and bottoms on multiple timeframes. Outside bars are also named engulfing patterns. Here’s one on the GBP/USD. In the…
Funny that most of us get into trading with the goal of doing less not more. And yet no sooner we fund our account and we’re treating it like a slot machine. By trading more not less. This blog would get tonnes more traffic if I simply catered to the masses wishing to day trade….
A common question I’m asked is: when long and a short signal emerges should I place an order for the short side too? Most of the time these questions are about the Harami Inside Bar pattern. But the question is equally applicable to all shorting patterns occurring in rising markets. My answer to the…
There’s something emotionally comforting about trading pullbacks. After all, it’s human nature to want to buy things up on the cheap. When I first began trading, it was easier for me to buy after declines rather than breakouts to new highs. My first attempts at pullbacks involved indicators. Generic things like placing market orders…
Here’s a quick post on how I use moving averages. In the past, I’ve referenced this method as ‘tagging the average’. Up until now though, I haven’t devoted a full post to it. I like to keep my charting naked. I don’t use price indicators, don’t use support resistance but I do use moving averages….
It’s not just gold that recently broke the $2000 handle. Take a look at Tesla. Elon Musk, that eccentric South African, now worth over $100 billion. The market cap of Tesla is $380 billion-plus. Think about it. Toyota, the largest car manufacturer in the world (and one that actually sells lots of cars) has a…
These are two reasons why I’ve made inside bars my bread and butter. Decreased price volatility means tighter initial stop loss. Decreasing volatility usually ends up as range expansion meaning more profits. Combining the two leads to impressive r multiples over time. If you are as attuned to inside bars as me (it’s not difficult),…
If you can’t handle the pressure of 5-min charts, but think your too impatient for the daily timeframe, then it’s time to consider trading 8-hour charts. They’re not the norm I admit. Many trading platforms don’t even have them, going straight from 4-hour up to daily. That’s a real shame, because in my humble…
This shorting strategy I am going to show you is my favourite. I called it the Ultimate Smash Bar Short – almost the mirror opposite of the long system I discussed here. It can lead to some truly stunning price moves, has high accuracy and resulting R multiples can be large. However, as a guy…
The pin bar strategy is a popular reversal technique used by many retail forex traders. It’s a two-bar pattern that can lead to explosive price action. But, it can also lead to whipsawing prices too. The idea behind the long version of this setup is that price opens within the range of the previous bar…