Hello Friends, hope you all are doing great and enjoying trading.Here I am going to present before you my new article hope you will like it.

Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected. - George Soros

I believe markets are always uncertain and so technical charts are the first one to give us information about upcoming uncertainty. So, I rely mostly on chart first. As I am a trader, I always do experiments, to find new methods to make trading profitable, and this time I have come across a method which can give us a more than 80% profitable trades. As I agree with following quote, so I prefer to find a best method of trading in which I will have faith.

The goal of a successful trader is to make the best trades. Money is secondary.”– Alexander Elder

I mostly focus on various technical indicators, because information keeps coming everyday and fact is that, before we get news, we get changes in prices of currency, so always price action is the first tool which gives us idea that there is something happening around the world. I have already described price action in my last article this time I will write about next indicators which I am going to use in this trading setup. We always try to get idea about near term trend of instrument, support and resistance as well as recent tops and bottom of the instrument. Below I am going to describe MinMax indicator which gives idea about all these things.

MinMax Indicator:
This indicator has been developed to get idea about the recent high and low prices of any instrument we want to trade. How we can use it, I will describe below. Lets check it out on chart.

Above is the hourly chart of GBP/USD. I have kept MinMax timeframe for 24 means 24 hours data it will use to show us recent high and low. This will give us price changing view of one day whole. As you can observe sometimes Min and Max values are constant and sometimes growing or falling. When Min and Max values are constant it shows instrument is in sideways trend. And when MinMax are rising or falling means currency is trending and it is in uptrend or in downtrend. And we know, most of the time before changing the existing trend instrument touches its latest high's or low's. Above chart shows that example so basically we have to use this principle with ADX indicator and with price action breakout and breakdown.

Below I have shown on chart with ADX indicator.

ADX : Average Directional Indicator, It is the indicator which gives us idea about strength in up-going trend. ADX rising means there is strength in trend and it is highly probable that it may continue for some hours.

It’s critical for the crocodile to understand its prey and to know where to look for it and remain calm and patient until it arrives. As traders, we have to know what our trading edge looks like and where to look for it and then control ourselves enough to not over-trade before it arrives. - Nial Fuller

Now I will describe how to combine break out breakdown, ADX and MinMax indicator to enter into trade. Let us check out on chart first.

As I have described most of the times recent low's or high's are revisited in any instrument above I have shown double bottom. Next we have to check ADX it is rising, then MinMax is constant so we can enter into trade. Entry point will be when candle closes above Min value and in green means candle close is more that open.

1. Notice double bottom;
2. Check MinMax constant;
3. Check ADX rising.
4. First candle is in green.

Stop Loss: Exit as soon as if candle closes below Minvalue line.

Target: Continue as long as Max and Min value keeps rising and exit when they settles to constant.

The elements of good trading are: (1) cutting losses, (2) cutting losses, and (3) cutting losses. If you can follow these three rules, you may have a chance. – Ed Seykota

SELL TRADE: Lets see it on chart first.

Entry Point:
1. Notice Double Top;
2. Max Value constant or falling;
3. ADX rising;
4. Candle is in red.

Stop Loss : Exit as soon as if candle closes above Max Value and Max starts rising.

When I became a winner, I said, ‘I figured it out, but if I’m wrong, I’m getting the hell out, because I want to save my money and go on to the next trade. – Marty Schwartz

Target: Continue into trade as long as Min and Max are falling and exit when they sets to constant.

In this method you will get less trades but mostly profitable trades.

Lastly I want say about my personal feeling that when we go wrong take a pause because losses hurt us and we gets emotional and we try to recover losses as early as possible and in the cycle we make another mistake and another loss. Cycle can continue and can ruin us emotionally. So I just stop trading for a while get relax and start again by examining what went wrong. This helps to avoid another mistake.

When I get hurt in the market, I get the hell out. It doesn’t matter at all where the market is trading. I just get out, because I believe that once you’re hurt in the market, your decisions are going to be far less objective than they are when you’re doing well… If you stick around when the market is severely against you, sooner or later they are going to carry you out.” – Randy McKay

I agree with above author that objectivity should be our priority. Trader's life is most difficult one as we are in continuous challenging profession. What helped in last trade doesn't guarantee same will work in next trade and trade will be profitable. So in this dynamic world of trading we need to become dynamic, be relaxed and be happy takes us to be winning.

Hope you have enjoyed reading.
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