Many noobs got scared in this simple trade

Many noobs got scared in this simple trade 300 169 Minimalist Trading – Best Trading Indicators for TradingView

Many noobs got scared in this simple trade

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Introduction

Today we’re looking at another trading setup using our technical indicators, which are considered to be among the best indicators for TradingView. In particular, we’re using just two indicators: the Breakout Pivotal Bars in combination with the Sentiment Index.

If you know how to read forex and you have some forex winning indicators, as we do, then you can easily spot a very simple trade that we see almost daily on our TradingView chart. The trade setup is very basic: we take the last impulse and once the price breaks down we project the same length to the downside in order to identify our target.

Trade setup – 7 May 2020

Many noobs got scared in this simple trade Setup 1

We have a clear short setup on GBPUSD. In particular, we have:

    1. The price breaks down the consolidation that we identified and marked with the blue trend lines
    2. The breakdown candle is red (colored by the Breakout Pivotal Bars)
    3. The bearish Sentiment Index breaks down as well its trend line, on the same candle

These three conditions put together, form a very high probability trade and so we take it.

The target is going to be where the projection to the downside of the first impulse ends, and the stop loss is, instead, a bit into the consolidation so that we are enough protected should the price decide to come back up.

Trade update – 7 May 2020

Many noobs got scared in this simple trade Setup 2

The price moved down significantly, about halfway into our target, and then is retracing within a few candles.

This is the typical situation where novice traders get scared because they see the price moving against them, potentially entering into their stop loss area (like in this case), and so they start to get emotional and take impulsive decisions.

We, instead, stay rational and accept the fact that the price can do whatever it wants, whenever it wants.

Our initial technical analysis is correct, and so we just stick to the evidence and the experience, which tells us that, once similar setups form, there is a very high chance that they ultimately reach their target.

What happens in between, and how long it’s gonna take, is simply something beyond our control and we must accept it without letting emotions take control.

Trade closed – 7 May 2020

Many noobs got scared in this simple trade Setup 3

Well, after that retracement, the price just went down and reached the target.

As we expected, we ended up closing another profitable trade with a 2x profit. It’s not exceptional but using our fx strategy is very achievable and, most importantly, consistent. One thing, however, happened that is worth mentioning, which is that many noobs got scared in this simple trade. Why? Simply because the price was moving against them so, the first thing that you must do if you want to learn how to invest in currency market and you want to become a full time forex trader, is to not get emotional. It sounds simple, but it’s rather hard.