Coventry Traders’ Playbook: Forex Trading And Mining Tips For Easy Profits


Coventry Traders’ Playbook: Forex Trading And Mining Tips For Easy Profits – You can use many order blocking strategies to try to target significant areas to enter the market and manage your trades.

Order block trading is analyzing where large order blocks form in the market and using this information to buy or sell.

Coventry Traders’ Playbook: Forex Trading And Mining Tips For Easy Profits

Coventry Traders' Playbook: Forex Trading And Mining Tips For Easy Profits

Knowing where these big players place their order blocks can help you identify the best areas to enter new trades or exit existing ones.

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Although there is no central exchange for currency markets, the major banks and institutions significantly influence where prices move.

Where these whales in the markets place their order blocks can have a significant effect on what prices do.

If you know and understand where these order blocks build up, you can use it to your advantage when trading.

The key to order block trading is to recognize these critical levels in the market. When prices move into an order block area, we often see large price movements and a spike in liquidity. This can lead to very profitable trades.

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Since central banks and large institutions play a large role in price movements, it is important to understand where they place order blocks.

There are several reasons why these whales place orders as they do, but it is often to enter or exit huge positions without spooking the market.

If a bank is trying to enter the market at the best possible price, they will use order blocks instead of a large order.

Coventry Traders' Playbook: Forex Trading And Mining Tips For Easy Profits

If they make this trade in a large order, they risk not having enough liquidity to put it all in. They also run the risk of raising the price when they start coming in and not getting the best price.

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Instead, they will enter multiple positions called order blocks. They will place these order blocks at strategic points where they can be fulfilled and will get the best possible price.

Another example is how a large institution would break its order. If they are trying to enter a market with a $500 million trade, but only $100 million is being sold, they are faced with two things…

The first is that they will be included in the first 100 million. However, there will still be $400 million left that has not been entered. This can lead to the price rising and price levels deteriorating.

Identifying the activities of significant market participants is a central part of the smart money approach to trading.

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Order blocks and smart money trading can be used hand in hand with your other technical analysis and price action trading.

You can also use other useful indicators that can help you refine trade entries and where to place your take profit and stop loss.

The example below shows how a trailing stop occurs, and you can use this information to make reversal trades with high probability.

Coventry Traders' Playbook: Forex Trading And Mining Tips For Easy Profits

The first part of this trailing stop is the clear resistance level that is in place. Every time the price has tested this resistance, the big players have stepped in and pushed the price back lower.

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The key to this setup is that a large number of stop losses would sit above this resistance. Many traders who have sold when price hits resistance would place stops just above.

When the price re-enters the resistance, it breaks through. This would activate many of these stop-loss orders and close many trades.

This is a false move, and stop. As soon as the price has jumped over this level and hit many stops, it quickly reverses.

Once you start figuring out where these big order blocks are placed and when to stop chasing, you can use that to your advantage.

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This important information can help you get on the right side of the market, and instead of having your stops hit, you can trade in the direction of the smart money.

Pip Hunter I hunt pips every day in the charts with price action technical analysis and indicators. My goal is to gain as many pips as possible and help you understand how to use indicators and price action together successfully in your own trading. Scalpers try to take advantage of small market movements and take advantage of a ticker tape that never stands still. For years, this quick-fingered day trading crowd has relied on Level 2 bid/ask screens to locate buy and sell signals, read supply and demand imbalances away from the NationalBestBid and Offer (NBBO) – the bid/ask price that the average person sees. They would buy when technical conditions pushed the bid price lower than normal and sell when technical conditions pushed the bid price higher than normal, booking a profit or loss minutes later as soon as balanced conditions returned to the spread.

Today, however, that method works less reliably in our electronic markets for three reasons. First, the order book was permanently emptied after the 2010 flash crash as deep standing orders were targeted for destruction on the chaotic day, forcing fund managers to keep them out of the market or execute them in secondary venues.

Coventry Traders' Playbook: Forex Trading And Mining Tips For Easy Profits

Second, high-frequency trading (HFT) now dominates intraday transactions, generating highly fluctuating data that undermines the interpretation of market depth. Finally, the majority of trades now occur off-exchange in dark pools that do not report in real time.

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Scalpers can meet the challenge of this era with three technical indicators tailored for short-term opportunities. The signals used by these real-time tools are similar to those used for long-term market strategies, but instead they are applied to two-minute charts. They work best when strongly trending or strongly ranged action controls the intraday band; they do not work so well during periods of conflict or confusion. You know those conditions are in place when you get whipped into losses at a higher rate than is usually found on your typical win-loss curve.

Place a 5-8-13 Simple Moving Average (SMA) combination on the two-minute chart to identify strong trends that can be bought or sold short on reversals, as well as to be alerted to impending trend changes that are inevitable in a typical market day. This scalp trading strategy is easy to master. The 5-8-13 band will be targeted, pointing higher or lower, during strong trends that keep prices glued to the 5- or 8-bar SMA.

Penetrations into the 13-bar SMA signal waning momentum favoring a range or reversal. The band flattens out during these range swings, and price may cross the band frequently. The scalper then looks for realignment, with bands flipping higher or lower and spreading out, showing more space between each line. This small pattern triggers the buy or sell card signal.

How does the scalper know when to take profits or cut losses? 5-3-3 Stochastics and a 13-bar, 3-standard deviation (SD) Bollinger Bandused in combination with band signals on two-minute charts work well in actively traded markets, such as index funds, Dow components, and for other widely held issues such as Apple Inc. ( AAPL).

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The best band trades are set up when the Stochastics turn higher from the oversold level or lower from the overbought level. Likewise, an immediate exit is required when the indicator crosses and rolls towards your position after a profitable push.

You can time that exit more precisely by watching the band’s interaction with price. Take profit in band penetrations as they predict the trend will slow down or reverse; Scalping strategies cannot afford to stick around through retracements

Of some sort. Also, take a timely exit if a price bump doesn’t reach the band but Stochastics rolls over, telling you to exit.

Coventry Traders' Playbook: Forex Trading And Mining Tips For Easy Profits

Once you are comfortable with the workflow and interaction between technical elements, feel free to adjust the standard deviation higher to 4SD or lower to 2SD to account for daily changes in volatility. Even better, overlay the additional bands over your current chart so you get a wider range of signals.

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Finally, draw up a 15-minute chart without indicators to keep track of underlying conditions that may affect your intraday performance. Add three lines: one for the initial pressure and two for the high and low of the trading range that was set up in the first 45 to 90 minutes of the session. Watch for price action at these levels as they will also set up two-minute buy or sell signals on a larger scale.

In fact, you will find that your biggest gains during the trading day come when the scalp lines up with the support and resistance levels on the 15-minute, 60-minute or daily charts.

Scalping is a short-term trading strategy that seeks to take advantage of small price movements in stocks throughout the day. Scalpers can be high-frequency traders who enter and exit multiple trades within minutes or even seconds, seeking to take advantage of volatile market inefficiencies, liquidity imbalances, and volatility. The goal of scalping is to accumulate a series of small wins that can add up to a significant profit over time.

While anyone can try scalping, it is a trading strategy that requires a specific skill set, discipline and experience. Successful scalpers will use specialized trading tools and often use algorithms to identify and automate trades. As such, it is not recommended for beginners, as the fast-paced nature of scalping can lead to significant losses for those who lack the necessary knowledge and emotional control. In addition, scalping requires constant attention

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