You will also understand important concepts that can help with naked chart trading. Naked trading is a trading strategy that involves using a naked chart unaided by technical indicators of any sort. To find trades, naked traders focus on how price reacts at essential points on the chart. These points are horizontal or angled lines on the chart that price tends to repeatedly respect.

These lines are not just levels but areas or zones. As a naked trader, you need to identify these key areas on the chart on any timeframe. However, the best setups occur on higher time frames, like the four-hour and daily chart.

The best thing you can do is mark these areas with lines and then wait for the price to hit these lines. Using specific candlestick patterns or signals, you can determine if the areas are holding and if you can enter trades.

You could have taken six profitable buy trades in the image below by waiting for the price to touch a support level and show rejection. We outline four such signals in this section. The last-kiss trade is similar to the more familiar break-and-retest setup. You can apply the same concepts to this trade. However, the initial requirement is a consolidation range. The price must print a horizontal range before the breakout.

A valid range is one with at least two touches at the top and bottom. The breakout must be strong and dramatic when the price finally breaks out either above or below the range. This means that it should move far from the breakout point before a retest.

The moment the price shows an intention to touch the breakout level, you focus your attention. It is a two-candle formation similar to an engulfing pattern or a two-bar reversal. The first candle typically comes close to support or resistance for an engulfing pattern, followed by a giant candle closing in the opposite direction. Meanwhile, for a two-bar reversal, the first candle breaks and closes beyond support or resistance, followed by a more giant candle that closes back within the range, forming a false break in the process.

In the example below, the support level is undeniable. When the price revisits the level from above and forms a big shadow, you have a good idea that the price may reverse upward. Once you see this setup, you can put a buy stop entry at the high of the big shadow candle, set the stop loss at the low of this candle, and target the next apparent resistance as trade exit. The wammie and moolah trades are familiar setups to traders.

You know what these setups are if you are familiar with the double-top and double-bottom formations. Probably the names of the setups are derived from their first letters. Moolah starts with the letter M, which stands for M formation. Meanwhile, wammie begins with the letter W, which stands for W formation.

They are indeed M and W formations if you look at completed moolah and wammie setups. While many traders think that double-bottom and double-top formations occur every time price revisits support or resistance, that is not an accurate description. If a lot of time has passed before price revisits a price level, consider it mere support or resistance.

A legit double-top and double-bottom formation complete in very few candles. It can form in at least five candles. Take note that the moolah and wammie trades are not simply double-top and double-bottom formations. They combine the concept of pattern to form a high-probability setup. The kangaroo tail is more widely known as pin bar or hammer setup. While the location is critical, the signal itself is crucial.

The rejection candle must pierce through the zone and even beyond it in an emphatic fashion. As you can see in the image below, the candle must occur at a superior level and have a long tail.

After the trigger candle closes, you can enter the trade right away, put the stop loss at the tip of the tail, and aim for the next area as a target. Naked chart trading trumps indicator trading at least for two reasons.

First, a naked chart lets you see the true price action. In contrast, indicators seem to hide the real market action due to the number of lines on the chart. Second, trading with a naked chart is not inferior to trading with a battery of indicators. As long as you qualify trades using support or resistance, trend, and candlestick patterns, you can trade profitably with the naked chart.

Your email address will not be published. The more clients they serve the more chances that these brokers are trusted. You should also know the amount of trades these brokers are conducting.

Experienced Forex brokers will increase your chances of earning money from the Forex market. If you have questions or complaints, you should call or email the company and ask questions regarding their trading system. You should never be uncomfortable doing this. Besides, they will be the one who will manage your money. And, it is your right to know about what they are doing with your money. When choosing a Forex broker, you should also consider their trading options.

You should also know that Forex brokers are different from what they can offer you. They differ in platforms, spreads, or leverage. You have to know which of the trading options is very important to you in order to be comfortable when you trade in the Forex market. Most online Forex brokers offer potential clients with a demo account.

This will allow you to try out their trading platform without actually risking money. You should look for a demo platform that works just like the real thing and you should also determine if you are comfortable with the trading platform. Look for the features you want in a trading platform in order for you to know what to expect if you trade with them.

If you are comfortable with a trading platform, you should consider trading with them, and if you are not, scratch them off your list.

This is a great way to test their trading platform and not risk your money. The Forex market is a very risky place to trade and Forex brokers must tell you that there are certain risks involved when trading in the Forex market. Avoid hiring a Forex broker who says that trading in Forex is easy and a very good money making market with very low risks. These are the things you should consider when you look for a Forex broker.

If you find that right broker, you can be sure that you can really earn money. Your email address will not be published. Forex Elliott Wave Strategy — Using the Elliot Wave Oscillator EWO to Predict Forex Moves Best Forex Trading Strategy Based on The ADX Currency Strength Indicator ADX 8 BEST Tips and Tricks for Successful Forex Trading Forex Super Trend Commodity Channel Index Strategy []. The Biggest Forex Risks.

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Companies keep records for a reason. They need data to evaluate performance and streamline operations. Traders could use the same method to assess trading results and fine-tune strategies. Without the help of a trading journal, you might spend years learning the trading process without success. Keeping a trade journal could mean distinguishing between the 90 percent of traders who consistently lose money and the ten percent who regularly make money.

Guess what? Several losing traders do not maintain a journal. Many struggling traders move from one system to another in search of the perfect strategy. Understanding your state of mind at certain points of a trade entry is very helpful in figuring out your ability as a trader. Doing this will allow you to pinpoint areas for improvement and gradually fine-tune your strategy.

This article will show what you should keep in your trade journal and generate metrics. This way, you can unleash the trader in you that was kept in shackles for so long.

The amount of data you decide to record depends on your trading method and liking. While some traders may want to simplify things by tracking a little data, other traders may choose to maintain more.

Below are some of the trade information you can put in your trade journal. This is the price at which you want your trade to close at a loss to stop wreaking havoc on your account. This is the trigger for trade entry.

Examples include a candlestick pattern, price pattern, divergence, breakout, etc. Another trick that is very helpful in your trade assessment is keeping chart screenshots before and after the trade entry. This will allow you to see the trade context long after the trade is closed. This way, you can quickly figure out what went well or wrong with the trade.

Adding notes to the chart is another way to improve your grasp of the chart setup. The previous section outlines the data you must collect while trading. However, these data do not have value if you do not understand their implications to your trading. Below are essential metrics that can help evaluate your trading results.

Count the number of trades taken using a strategy in a matter of one week, one month, or one year. You can compare this number with that of a similar strategy.

This way, you can evaluate if you have taken too many or too few trades in a given system. It is one measure of the effectiveness of your strategy. However, if you use stop trailing, the win rate has no value. While the trailing stop allows you to win more trades, you could have many winning trades with minimal profits. The win rate becomes essential when you pair it with a strategy that uses a fixed reward-risk ratio per trade. The image below shows the relationship between win rate and reward-risk ratio.

It refers to the ratio of the amount targeted and the amount risked. While this trade metric is vital, knowing the average reward-risk ratio over a series of trades is more critical to your profitability.

This metric allows you to understand your propensity to keep trades open. Are you holding your trades in less than one day, more than one day, more than one week, or more than one month? That information can help you improve your strategy. drawdown is the amount in your deposit currency representing the change between the highest account balance reached and the lowest account balance that follows after some losses.

It helps you quickly understand if your trading method works or not. A profit factor greater than one means that your system is profitable.

If less than one, you are losing money. Keeping a trade journal is a tiresome task. However, it is undoubtedly beneficial to your success. A trade journal allows you to look at your trades the same way business owners look at their financial and other operations. What turns off most traders when it comes to maintaining a trade journal is the demanding nature of this task. It requires you to dedicate time and thoughts whenever you update your journal.

This is to make sure you put the correct data in. Documenting a short trade that runs only for an hour may take you 15 minutes at minimum. It does not even end there. After the deal is closed, you will have to revisit the journal and update data. Keeping a record of your trading allows you to examine your results, remediate weaknesses, and emphasize strengths. The result is an optimized strategy, increased performance, and optimum profits.

You will appreciate the importance of this diary in your trading campaigns as you begin tracking your trades. If you are not using a trade journal yet, now may be a great time to start. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. Home How to Invest Forex Tracking: How Long Does It Take?

How to Invest How to Invest in Forex. No comments. What trading data should you track? Date This is the date when you take the trade. Market This is the traded currency pair. Order type This is the type of order you executed.

Open price This is the price you bought or sold a pair. Stop loss price This is the price at which you want your trade to close at a loss to stop wreaking havoc on your account. Take profit price This is the price at which you want your trade to close in profit.

Risk-reward ratio You get this value by quoting the number of pips targeted and the pips risked. Trade trigger This is the trigger for trade entry. Status This is the status of the trade, i. Result This is the result of the trade, i. Excel journaling template Which trading metrics are crucial?

Total number of trades Count the number of trades taken using a strategy in a matter of one week, one month, or one year. Win rate It is one measure of the effectiveness of your strategy. Average reward-risk ratio It refers to the ratio of the amount targeted and the amount risked. Win rate versus reward-risk ratio Average holding period This metric allows you to understand your propensity to keep trades open. Maximum drawdown Max. Profit factor It helps you quickly understand if your trading method works or not.

To get the profit factor, follow the steps below and refer to the image that follows: Add the number of profits for all the winners. Add the number of losses for all the losers. Divide the first value by the second value above, and you will get the profit factor. Profit factor formula How long does it take to update your trade journal?

Final thoughts Keeping a record of your trading allows you to examine your results, remediate weaknesses, and emphasize strengths. Investing Investments trading strategy. Share 0. Tweet 0. Pin it 0. Author G. Leave a Reply Cancel reply Your email address will not be published. Related Posts. Read More 4 minute read. How to Invest How to Invest in Stocks. If you think you are too young to begin investing in stocks, think again. In this era of…. How to Invest How to Invest in Bonds. Bond and stock are stapled assets among serious investors.

While the stock market offers massive returns, bonds guarantee…. How to Invest How to Invest in Crypto. The crypto exchange is a platform where retail traders can buy, sell, exchange, or trade Bitcoin and altcoins….

And, it is your right to know about what they are doing with your money. If you are interested in trading, make sure you understand Forex risks. Powerful platforms to suit all trading styles and needs on any device. This is the price at which you want your trade to close at a loss to stop wreaking havoc on your account. NATION FX AFFILIATE PROGRAM. The best thing you can do is mark these areas with lines and then wait for the price to hit these lines. Alternatively, you can use a target twice the risked amount or pips.

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