HIGH WIN RATE Forex Scalping Trend Following Strategy (Price Action Trading For Beginners) | Summary and Q&A

TL;DR

Traders can capitalize on contrarian traders who bet against the main trend to find profitable trading opportunities.

Key Insights

• 📈 Counter-trend traders can be capitalized on to find profitable trading opportunities.
• 🤢 Strong bullish/bearish bars followed by weak bars indicate counter-trend trading.
• 🤩 Key support and resistance levels play a crucial role in price action trading setups.
• ⚾ Each trade and setup is unique and should be evaluated based on market context.
• 🙈 Blind entries should be avoided, and trades should be taken at key chart levels.
• ❓ Additional confirmation, such as moving averages or trading indicators, can enhance the quality of the setup.
• 🥡 Market bias and recent price action should be considered when taking trades.

Transcript

In every market trend, there are contrarian traders. In a bull market, these traders try to push the market down. In a bear market, they buy to support the market. But, as you probably know, these counter-trend traders are wrong most of the time. Luckily for use, we can capitalize on them to find great trading opportunities. In today’s video I will... Read More

Questions & Answers

Q: How do counter-trend traders affect market trends?

Counter-trend traders help sustain market trends by shorting in a bull trend, causing a temporary retracement before quickly covering their positions, pushing prices higher.

Q: What are the characteristics of a strong bullish/bearish bar?

A strong bullish bar opens in the lower half and closes in the upper half, while a strong bearish bar opens in the upper half and closes in the lower half.

Q: How can traders identify profitable setups?

In a bull trend, look for a strong bearish bar followed by a weak bar, indicating counter-trend traders. In a bear trend, find a strong bullish bar followed by a weak bar, signaling failed bullish momentum.

Q: When should traders enter a trade using this pattern?

In a long setup, place a buy stop order above the high of the weak setup bar. In a short setup, place a sell stop order below the low of the weak bar. Confirm the setup with a third consecutive bar.

Summary & Key Takeaways

• Contrarian traders, who go against the trend, play a role in sustaining market trends.

• In a bull trend, bearish bars indicate counter-trend traders, while bullish bars represent them in a bear trend.

• By identifying strong bars that fail immediately, traders can take advantage of the anxious counter-trend traders.