Sentences with phrase «probability trading scenarios»
Doing so will help you to get «in - tune» with the overall market structure and dynamics and learn to anticipate high - probability trading scenarios... this is how you trade like a sniper or trade like a crocodile, pick your metaphor.
http://www.learntotradethemarket.com/ Not exact matches
Historically, this suggests an extended period of range bound trading as the highest probability long - term scenario in my view.
It happens often enough to be something that you need to understand and know how to make proper use of, because these scenarios can often yield very high - probability / high reward to risk trades.
By watching for trading signals near the support and resistance boundaries of the trading range, traders have a high - probability entry scenario with obvious risk and reward placement.
Back to our example... you have found a great looking pin bar strategy on the daily chart, now you must find the safest place to put your stop loss so that the probability of it getting hit is as low as possible, you want to give the trade as much room as possible to work out while still maximizing your risk to reward scenario.
This provides us with a very high - probability entry scenario and a very simple trading strategy.
Key levels occur in a variety of market scenarios, and we can combine these key market levels with simple price action strategies to obtain a high - probability trading strategy.
A little exercise to help you take profits more effectively is to ask yourself when you are up a solid profit on a trade: «What do I honestly think is the highest - probability scenario based on the current price action and market structure?»
Trading is about finding a high - probability entry scenario in a sea of low - probability ones, sadly, most traders end up taking a lot of low - probability trades and very few high - probability ones.