What is the T.L.S methods of trading some one may be asking. Well without taking too much of your time.
The T.L.S simply means TRENDS, LINES AND SIGNALS and today we will look at these 3 strategies one after the other. Hope you are set? Now lets go ahead and do this.
What are trends
This is quite a very important point you must note as a trader. DO NOT EVER TRADE AGAINST THE MARKET TREND!
Its very important I still repeat that: Don't trade against the trend! Why am I saying that? This is because the trend is your friend and not your enemy.
When you spot a good trend whether it is up, down or sideways (there is a way to trade sideways trend), all you have to do is just follow it that way. don't fight it!
This is good especially if you are new trader that is just learning about the forex market. I think my advice to you is always follow the trend and ride along. This is what even professionals do. Until you see a very high probability Pin bar (Bullish or Bearish depending on the trend) occurring in the trend; which actually tells you that a reversal is near. For more on this please go here what is a pin bar price action.
In the process of learning to trade with the trend, learn to wait for pull backs or retrace on either supports and resistance depending on the direction and then, place your order. But I also think you should place pending orders not market execution. Place your orders at strategic support or resistance and just allowing the market to come to you and then pick you up in the journey. Now Isn't that cool?
Levels are valid
In my opinion, I see levels as areas where market prices often make
or leave an impression and retracements. Take a look at that diagram above ( And pls this diagram is not enough... do more researches for yourself, Okay?). At important levels like resistance and supports (Resistance and support zones) we can place and exit trades. I hope I can do more article on how to trade on supports and resistance in another article. Lets keep our fingers crossed. I sure will. But please before then, I want you to do enough more researches on support and resistance... as this is an article and not elaborate strategy.
Trading with signals
In my articles on this blog I have always emphasized that traders focus more on the Daily chart time frames and not a lower time frame like 5 or 15 mins time frames.
This is because in the daily time frame chart, you can get real good signals like the Pin Bar price action setup in a clearer view. This is unlike the lower time frames that carries so much fake noise in them.
Except you are a professional, you really cannot know how to spot a good price action signal from or in a lower time frame. So I suggest if you are a new trader, always focus on the daily or 4 hours time frame and develop for yourself how to spot good trade signals for yourself.
Your ability to find good signals from your charts using price action is a skill you have to learn to develop for yourself as a trader or else you will always depend on others for their opinion on the market before placing orders. And this should not be so!
Don't always depend on signals
I know of some guys in Nigeria that sells funny signals without even giving you an overview of the whole picture of the market they are giving you a signal about. I see them write a lot of things they call signal.
For example, you will read signals like... BUY USDCAD @ 1.2715. Stop loss @ 1.2705 and Take Profit @ 1.2765.
I think that is very funny because you cannot be really certain about the market behaviour at any day. So a new trader can be tricked into buying the above signal without even doing his own technical analysis properly. He thinks the signals were from professionals and buys into it but lost at the end.
The only way to become a great trader is learning to do all technical analysis by yourself. It is also important that you do more of your researches on price action.
Thank you for your time and please do leave me your comments and questions also.
See You soon.
I am wealth Peters
CEO and Head Coach, Pips Akademy
Saying: Be a great trader!
The T.L.S simply means TRENDS, LINES AND SIGNALS and today we will look at these 3 strategies one after the other. Hope you are set? Now lets go ahead and do this.
What are trends
This is quite a very important point you must note as a trader. DO NOT EVER TRADE AGAINST THE MARKET TREND!
When you spot a good trend whether it is up, down or sideways (there is a way to trade sideways trend), all you have to do is just follow it that way. don't fight it!
This is good especially if you are new trader that is just learning about the forex market. I think my advice to you is always follow the trend and ride along. This is what even professionals do. Until you see a very high probability Pin bar (Bullish or Bearish depending on the trend) occurring in the trend; which actually tells you that a reversal is near. For more on this please go here what is a pin bar price action.In the process of learning to trade with the trend, learn to wait for pull backs or retrace on either supports and resistance depending on the direction and then, place your order. But I also think you should place pending orders not market execution. Place your orders at strategic support or resistance and just allowing the market to come to you and then pick you up in the journey. Now Isn't that cool?
Levels are valid
In my opinion, I see levels as areas where market prices often make
or leave an impression and retracements. Take a look at that diagram above ( And pls this diagram is not enough... do more researches for yourself, Okay?). At important levels like resistance and supports (Resistance and support zones) we can place and exit trades. I hope I can do more article on how to trade on supports and resistance in another article. Lets keep our fingers crossed. I sure will. But please before then, I want you to do enough more researches on support and resistance... as this is an article and not elaborate strategy.
Trading with signals
In my articles on this blog I have always emphasized that traders focus more on the Daily chart time frames and not a lower time frame like 5 or 15 mins time frames.
This is because in the daily time frame chart, you can get real good signals like the Pin Bar price action setup in a clearer view. This is unlike the lower time frames that carries so much fake noise in them.Except you are a professional, you really cannot know how to spot a good price action signal from or in a lower time frame. So I suggest if you are a new trader, always focus on the daily or 4 hours time frame and develop for yourself how to spot good trade signals for yourself.
Your ability to find good signals from your charts using price action is a skill you have to learn to develop for yourself as a trader or else you will always depend on others for their opinion on the market before placing orders. And this should not be so!
Don't always depend on signals
I know of some guys in Nigeria that sells funny signals without even giving you an overview of the whole picture of the market they are giving you a signal about. I see them write a lot of things they call signal.
For example, you will read signals like... BUY USDCAD @ 1.2715. Stop loss @ 1.2705 and Take Profit @ 1.2765.
I think that is very funny because you cannot be really certain about the market behaviour at any day. So a new trader can be tricked into buying the above signal without even doing his own technical analysis properly. He thinks the signals were from professionals and buys into it but lost at the end.
The only way to become a great trader is learning to do all technical analysis by yourself. It is also important that you do more of your researches on price action.
Thank you for your time and please do leave me your comments and questions also.
See You soon.
I am wealth Peters
CEO and Head Coach, Pips Akademy
Saying: Be a great trader!
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