This 2b reversal trade was a beauty, I was trawling the 60 minute charts for any setups using what for me is proving to be the simplest method, that is checking the cci 21 and cci 84. When the 21 is below zero and the cci 84 above it clearly indicates a retracement against the 4 hour upwards trend.
I then noticed a formation that I used to trade with mixed success the “2b reversal” google it for more info. I am having more success using it now because I have learned so much more about trading using trendlines, support and resistance and moving averages from being in the live online trading school, the www.fx500club.com. I now just use the 2b reversal formation to confirm tight trade entries.
I have included the charts for both the 60 minute and 15 minute timeframes below.
15 minute chart below
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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