O'Reilly logo

The FX Bootcamp Guide to Strategic and Tactical Forex Trading by Wayne McDonell

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

YOUR MIND’S EYE

I often talk about “painting a picture with your mind’s eye.” I want you to create a mental picture of what your charts will look like in the next 8, 13, 21 or so candles. You should be able to envision what your trade will look like before you get there.
Does this mean you need a magic crystal ball? Not at all! I just want you to think about your trade before you pull the trigger. By planning your trades in advance, and not reacting to the market, you can anticipate market action.
For example, if price is falling, but the speed of the market is still rising, do you need to short? Perhaps not; it may be prudent to wait for price to shift its momentum upward again and go long when momentum and market are aligned.
You would create this scenario in your mind. If you are looking for reasons to go long, but price is falling, where will price be likely to rise again? Back at the 21 EMA because there is still a good angle and separation between the 21/55 to the upside? Let it fall to that point and see what it does when price gets to the 21.
What will a “bounce on the 21” look like? A clear touch and two or three green candles? How about a 5/8 cross to the upside? How about a new higher high, a bullish engulfing candle or reversal pattern?
It could be any or all of these things. What is important is that you think about it first. Wait for it to happen, and if you see evidence of what you are looking for, it’s your personal alarm to pull the trigger.
You’ve anticipated ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required