Trading 2b Reversal Setups

This was a perfect 2b reversal trade that I took whilst using the other trading strategies taught in the www.fx500club.com live online trading school.

The thick blue line is the 200 moving average and is often used as support or resistance for the price so it is also a perfect point to look for the classic 2b reversal pattern. Notice also that the stocastics were below 80 showing a loss of downward momentum and that sellers were losing ground to the buyers.

0.9243 was the previous low and created the trigger bar with the high of 0.9257 which also happened to be the daily pivot point. Once the price had closed above that we were safe to go long with a stop below the low at 0.9230. You nearly always get a pullback to the old low level at 0.9423 so I dropped down to the 5 minute chart in order to get a tighter entry and reduce my stop loss / risk. I went long at 0.9250 my target according to the rules of 2b was the old high 0.9284.

Trading 2b reversals is just one of the many methods of trading forex I like to use. I predominantly trade the strategies taught in the www.fx500club.com but always have an eye out for other high probability methods of entering and exiting my trades.

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Always Remember.

Keep your risk as a percentage of your capital low (1%), equals stress free trading.

Always work out potential losses before potential profits.

We are paid to take risks, if you aren’t in a trade you cannot win a trade!!

Buy off support and sell off resistance.

Bank partial profits early and move your stop loss to break even as soon as you can.

I am learning how to trade these setups and indicators across all time frames with the help of the fantastic team at the www.fx500club.com They have a live forex chat room and share their charts so that you can watch them find potential trades in real time.

They also have a school for learning how to trade longer term charts at www.fxmonkeyschool.com.

The fx500club and fxmonkeyschool, forex trading school don’t just trade charts and indicators alone, they teach us to use correlation of the whole market before entering a trade. It truly is the best place to learn how to trade forex properly, safely and profitably. It’s all about the pips and about protecting your capital.

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