Forex Trading GBPUSD London Pre Market MT3 HiLO Trading relies on combinations of technical factors , timing and confluence on higher time frames and trading time frames

It also requires that your stop to trade entry versus objective has a risk reward worth going for- 1 to 3 is a minimum I would ever consider – 1 to 15 ( current average daily ATR) is my intraday position trade, 1 to 35 is my overnight ultimate targets that can be picked out using entry and range objectives using a weekly chart and waiting until I am at an extreme.. which is very easy to see if you learn to draw trend lines and plot moving averages, or just get an understanding of what range means.

Pick the top… that is a little crude to me – fools try to pick the top of bottom– I predict the high or low price correctly using an approach and technique gained from a ridiculous amount of years/hours staring at charts and researching how to do it.

Pure trend traders generally will have an issue with it when I say you can accurately predict and trade the top and bottom of the market – within a session  that is what we need to do. Some of those trend traders are eminent scientists with IQs the size of the lottery – but trading is not a science – it is an art and a science…which is why barrow boys selling vegetables, from  Petty coat lane in  London were hired as traders in the City of London and many became amazingly wealthy using fast common sense, where as the top brains and economists and maths gurus were useless at  trading and preferred to make notes with pencils instead of drink with their pals at lunch.  So contrary to some of the famous professors – whom I have the greatest respect for, you can and  I do pick the tops and bottoms – and never by guess work.. Don’t get confused with an out of control trader stepping in front of the market hoping they got it at its Zenith – that really is stupid, yet so many of you do it, I used to years ago too… !   

Trend trading is a wonderful way to trade in which predicting the top or bottom of the market is not an element– it is the opposite you buy highs and sell lows so you never know your risk reward as you really have to let the trade run and reverse, getting in is always a late confirmation and getting out too – so your trade profit is always less than the MFE, always without fail… unless you are tinkering with the system of course. Then you will find out as many eminent strategist have correctly published that is not a good idea.   HI LO trading is all about choosing the correct level to trade at and not being silly to step in front of a spike and expect it to bounce – there are ways of getting in at a level which are safe and very productive- I will try to relay these…

Warning HILO trading is a quick way to go bust if you are in a rush and over trade.  This is real  sniper territory and have a very small amount of trades per day to get it right but a huge risk reward to go with it. I have developed a way increasing the winning ratio while not affecting the MFE and Risk Reward.. To learn to be a good HILO trader you must begin by studying and back testing, drilling the systems rules and with chart time you can program your sub conscious to do the correct thing without consciously thinking – just like changing gear when you drive.. This is a very skilled and advanced way to trade so if you are a get rich quick wannabe I suggest you try one of those common Emini scalping crossovers to keep you amused.  This is for the more ambitious serious traders who would like to learn how to trade for real– this is not for people who just want to follow software signals and pretend they are a trader ! J

I will talk through a trade this morning which Is the typical pattern we are looking for.

60 Min HTF Chart

Trade Setup

New High

7.00AM Bar

Weekly level 5749

Failure to reach penetrate 1750

reach Previous week  Low

Previous Week Fibonacci 0%

Short Term trend down

30 Min

Trade Setup Sell (MT3)

New High

7.00AM BAR

Weekly Level  (slight violation and bounce) 1.5748

Fib Level 38% Previous Day

Could not close above Pivots PP - PP Bounce

Mid Round Figure 1.5750 near bounce

Pullback and Continuation With ALL FXMAX Trends

FXMAX Triple MA Rejection

(Failed to hit FXMAX black dotted Mid)

10 Min

Trade Setup new High

07:00AM BAR

Daily, Weekly Level bounce

Monthly above

Trend Crossover FXMAX Max and Long

Woodies Slight Divergence

987 tick

Trade Setup New high

6.50 AM

Pullback to trend channel resistance

setup with down trend

MT Trend Slope Analysis Divergence

Shows stalling momentum at edge of resistance

Tiny Candles - bubble Doji

Renko

Trade Setup Sell

6.50

Trade Entry 

Candle Close Below Setup Low

Lower High

Lower low

Sell Ask 5738

Stop Above high 5753

The Renko was used, yes indeed – it got us in early – before the 7AM bar – yes that is the art to it. It a fine trigger – but we need a sound case to use it or we will be firing off at new highs and lows without any intelligence…

By going over each chart, speaking, writing, marking what you see you will really learn to trade subconsciously with a correct habits of – system rules, risk and money management – when you have mastered that you can increase position size at some point – get good at that and you may trade a large enough account to trade full time without breaking into a sweat…

I plan to write a guide on how to do all of this for those who are new to trading. To place all I look at into 1 indicator will make a very fat piece of code, so if you want to wait a little while the Silver bullet will address that issue by combining and filtering signals from many charts and timeframes and indicators to do the above and yes – provide one signal and bleep!  That is the goal – but I feel I am going to miss driving manually…time will tell.