Learn how to day trade on the 1-minute chart without looking at other time frames. This video shows how to plan ahead, when not to trade and how to use market tendencies to better plan entries, stop losses and targets.
In the video below I discuss a few entry techniques. These are covered in my Forex Strategies Guide eBook.
In the video, I mention that I “only trade the EURUSD”…I mean “day trade.” I will also day trade the GBPUSD if the EURUSD isn’t moving much.
I swing trade loads of different pairs. If you are more interested in swing trading, I have compiled a free video course: Forex Swing Trading in 20 Minutes. You will also find loads of swing trading information in the guide mentioned above.
In regards to the ZigZag indicator (here is the download)…it will not provide trade signals. Rather it simply gives you “context”. It lets you know how far the price is typically running before it sees a sizable pullback. It also lets you know how far the price is pulling back, as well as how many bars all these moves take.
No two price moves are going to be exactly alike, but it gives you a frame of reference. I consider both the actual pip numbers and percentage retracements. If the price moves up 6 pips and pulls back 3. That is a 50% retracement.
If you start to notice tendencies like 60% retracements on a certain day, you can use that information, even if the price starts moving 20 or 30 pips at a time (expect a 12 to 18 pip pullback, approximately).
Plan ahead. Look at the tendencies/trend/velocity/magnitude, know which way you are going (long or short), and what your trade triggers are…before the price even gets near your trade trigger. Also, know how far the price will typically run once you are in a trade, and be prepared for how long it could take for the price to reach that target. Some moves happen very quickly, while others take a long time to materialize. If it takes a while for the price to reach your target, it is very likely the market will try to scare you out of your trade. Be aware of these tendencies and stick to your plan.
Check out my Forex Strategies Guide for Day and Swing Traders eBook.
Over 300 pages of Forex basics and 20+ Forex strategies for profiting in the 24-hours-a-day Forex market. This isn’t just an eBook, it’s a course to build your skill step by step.
Cory Mitchell, CMT