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USDJPY sell

Weekly forex outlook: October 16

It is Sunday again, so I’m taking time to analyse the potential setups on forex pairs for the upcoming week in this forex outlook for October 16. Last week, I actually had a couple of losses! I shorted AUDNZD but the market decided to move higher. It’s important to know that trading is not just about winning trades, as too many traders make it appear. Every trade can turn out to be a win or a loss. While I don’t know up front how the trade will end, I do know that over a larger number of trades, I always end up with a net profit so I’m not worried about losses. It’s part of the game 🙂

I’m still staying away from GBP pairs since the flash crash (or however you want to call it) 2 weeks ago. I believe the market is still looking for direction in GBP pairs and will stay out of them for as long as this is the case. There are plenty of other pairs we can turn to anyway! This week, I’m keeping an eye on the following pairs:

 

Follow my published ideas on TradingView.

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Forex price action secrets

Forex price action trading: the untold secrets

I know a lot of traders who try to become profitable using a multitude of indicators (or combination thereof). Hell, it was my strategy for about a full year when I was starting out trading! It didn’t work for me. While indicators are not inherently bad, there’s a good chance that it didn’t work out for you too. If it did, a lot more than the 10% of traders that are said to be profitable in this business would make a killing, but they don’t. Gradually though, I started to change the way I approached trading and immersed myself in price action trading.

 

But… Price action is a whole other beast.

 

Different species. Stands apart from all the other technical analysis tools.

 

And a lot of traders don’t understand how to trade it.

 

It’s understandable though.

 

It’s not an indicator in the traditional sense. You can’t read price action in the unambiguous way you can know if the RSI indicator has crossed the 70 mark. It’s the reason beginning traders flock to indicators you can quantify easily. RSI, MACD, Stochastic, ATR. The list could go on. While these indicators have their use, they’re not something I solely base my trading ideas on. Most of them are lagging and just plain not working as a trading strategy.

 

Believe me, I’ve built trading robots based on about every popular indicator (or combination of indicators) you can find. It’s a trap for beginning traders and every single one of them loses money on it.

 

Indicators money trap
Money trap

 

Instead, learning about price action is the best way to become a profitable trader.

 

And I’m going to tell you the price action secrets that matter. The ones you need to make the best trades. But first, we need some background.

 

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