I’ve tried everything…to find the best way or trading methods for picking tops and bottoms of prices in the beginning.
You can say that I was searching for the holy grail of forex trading.
I spent countless hours studying the wrong things. In the end, it gradually dawned on me that I just needed two things…actually two methods.
And these two trading methods do have the potential to help you to find tops and bottoms of prices or market.
Stop Wasting Your Time Trying To Pick Tops And Bottoms Of Prices…
That’s what you hear or may read in many trading websites on the net but my biggest question is this: do they really know what they are talking about?
Honestly I don’t think trying to pick tops and bottoms is a useless trading endeavor.
As a matter of fact, it is really worth it because the rewards for being right can really increase your forex trading account immensely and can make up for all the trading losses you may have previously.
Method #1: The Market Already Shows You
This is so obvious, its really funny.
As a matter of fact, it happens everyday on your charts and you may not have really cared at all simply because that’s not what you were looking for.
You see, the market has already revealed to you the tops and bottoms of prices.
Support and Resistance levels!
How many times have you observed a support level and price has gone down to it, hit it and bounced back up 200-1000 pips?
Lots of time I believe…
Why didn’t your trade it then?
You see, the market already showed you the bottom…so next time price goes down to that bottom, pay attention and look for a price action trading signal to buy:
Similarly, if market showed you a resistance level, then obviously, that’s your potential top. If price starts turning back up to it, you better take notice and look for price action signal to sell.
Method #2: The Trendline
If you don’t know how to draw a trendline, you better.
Trendlines are definitely one of the very powerful way you can pick tops and bottoms.
To just give you an example, see the chart below:
So How Do You Know If Price Hits A Resistance/Support or Trendline That It Is The Right Time To Buy Or Sell?
Simple. Use Price Action.
Do These Two Methods Work All The Time?
Nothing can give you 100% win rate.
So what’s the greatest advantage of these two methods then?
Risk:Reward…that’s the greatest advantage.
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