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WHAT IS PRICE ACTION TRADING?

By Your Trading Mentor,

Trading Angel 

WHAT IS ACTION TRADING?

Price Action trading is a form of technical analysis which looks at price rather than indicators. If you are brand new to forex trading then I understand that about three things in that first sentence might have confused you so let’s break it down. If you are worried that it sounds too complicated already, then keep reading, because price action trading is a very powerful form of technical analysis and it’s worth understanding 

FUNDAMENTAL ANALYSIS VS TECHNICAL ANALYSIS 

These are two main types of analysis which forex traders do to help them interpret the financial markets and decide whether they want to buy or sell. 

Fundamental analysis looks at what’s going on in the world and technical analysis looks at what’s going on in the charts. Both are important! Fundamental analysis includes financial news releases and economical data such as interest rates decisions, central bank policy, inflation, unemployment rates etc How a country is doing economically is ultimately what moves the financial markets and determines the value of a currency. However, it’s also really important for forex traders to understand how the visual representation of this information on a chart is displayed and how it can be used to get good entries and exits on their trades. 

TECHNICAL ANALYSIS IS THE ART OF READING THE CHART 

Technical analysis includes price action (which we are doing a deep dive into in a bit) and it also includes technical indicators. Indicators are tools which are often based off lagging data which can be used to plot on the chart or to give us readings in order to help inform future trading decisions. These can help us to gauge aspects such as momentum or volatility, which are important for traders to understand if they are going to be trading a certain currency pair. 

Price Action trading is a form of technical analysis which looks at price rather than indicators. That’s my very first sentence at the top of this blog post again but hopefully it makes more sense this time around. 

Candlesticks are the visual representation of price on the financial markets charts. They show us the journey which the price has been on in a certain time period. And there are many ways you can use candlesticks and the patterns they produce in technical analysis. But just before we get into that, let’s quickly make sure we understand candlesticks first.

There are bullish candlesticks which move the market higher and close higher than they open, You would expect to see more of these in uptrends.

There are bearish candlesticks which move the market lower and close lower than they open. You would expect to see more of these in downtrends. 

Candlesticks are made of the body and the wick and like regular household candles which you would use for burning, the body is the thick part and the wick is the thin part. The body shows you the open and the close and the wick shows you the extremes.

PRICE ACTION LOOKS AT PRICE AND TIME

Forex traders look at these candlesticks and the journey they have been on in a certain time period, to help them make decisions about market sentiment, where the price is likely to go next and also for precise entries and exits. This is price action trading. Ultimately price action is any action which is taken from price.

TYPES OF PRICE ACTION 

CANDLESTICK SHAPES 

There are loads of different ways a single candlestick can give traders an idea of what the market sentiment is likely to be in the future. For example large bodies show certainty whereas small bodies and lots of wick on either side (these are called doji candles) can show uncertainty. Similarly a small body with lots of wick in one direction can show price rejection in that direction. For example, a shooting star candle at the top of an uptrend is a strong bearish indicator. A shooting star candle has a small body with a lot of wick at the top, its showing the price at the top has been rejected. 

CANDLESTICK PATTERNS 

There are loads of candlestick patterns which forex traders use to make buying and selling decisions before a trade. A candlestick pattern can be two candlesticks or more. A popular example of a candlestick pattern is an engulfing candle.You can get either bullish engulfing candles or bearish engulfing candles and these are just two candlesticks next to each other which have closed in opposite directions with the most recent one having a larger body than the first one. This is why it’s called engulfing as the second candle engulfs the first one. This candlestick pattern often signifies a move which is more likely in the direction of the second candlestick as the fact that the body is so much larger shows more certainty in that direction. For example if you had a bullish engulfing candle pattern that would mean you had a small bearish candle followed by a larger bullish candle and this would show that the buyers were more in control than the sellers and buyers might think the market is more likely to move upwards after this pattern. Alternatively a bearish engulfing candle would see a small bullish candle followed by a large bearish candle and buyers might interpret this as a possible move to the downside with the impression that the sellers were more in control than the buyers. 

CHART PATTERNS 

Chart patterns are lots of candlesticks over a long period of time which have formed patterns. Traders look at these patterns for signs that a market might move in a certain direction. An example of a chart pattern is the head and shoulders pattern. This has three peaks at the top of an uptrend with the central peak being higher than the two on either side. When traders see the head and shoulders pattern they take this as a bearish signal and often try looking for sell opportunities at the ‘neckline’. If it’s not obvious, it’s called a head and shoulders pattern because it looks like a head and shoulders – apparently!

SUPPORT AND RESISTANCE LEVELS 

Support and resistance levels on a forex chart are lines which forex traders draw on to try and identify the areas of significance. Often these are highs and lows, where the market has reached and reversed previously. When traders identify support and resistance levels on a chart they can then look for signs that the market is either going to breakthrough that areas in which case they would trade in one direction, or if the market shows signs of reversal at the level then they would trade in the opposite direction. Support is the level which is below the candlesticks as it is ‘supporting’ them and resistance is the level which is above the candlesticks. Also they are interchangeable so what was once support can then become resistance and what was once resistance can become support. Think of support and resistance levels as being the floor and the ceiling of a house with many storeys. The floor is support and the ceiling is resistance. Once you climb the stairs to get to the second level, what was once the ceiling is now the floor. Or what was once resistance is now support. 

SUPPLY AND DEMAND ZONES

Supply and demand zones are slightly more sophisticated forms of support and resistance. These are key zones which traders use to identify ares where lots of buying and selling is taking place. On TradingView the rectangle tool can be used to to plot on these areas and then forex traders look for possible trades if the prices enters and exits these zones according to their strategy. Supply is where traders look for sell positions and demand is where traders look for buy positions.  SMC trading (which stands for Smart Money Concepts) is a very popular form of forex trading which was introduced by the trader who calls himself the “mentor to your mentor” (if you’re wondering he wasn’t my mentor but I do find his work interesting), ICT or Inner Circle Trading. I’m actually strongly considering taking his mentorship course so if you are interested in finding out how that goes make sure you subscirbe to this blog as I will obviously be keeping you updated.

TREND LINES 

Trend lines are diagonal lines which traders draw on their forex charts which can help them make decisions as to whether they want to buy or to sell. If the market is moving down, making lower highs each time it makes a move up, then a trend line can be drawn across the highs of the candlesticks and it would be sloping in a downwards direction. A sudden move up with a long bodied candle breaking and closing above the trend line could signify to a forex trader that they want to start looking for buy positions, if the rest of the price action falls in line with their trading strategy. 

CHANNEL LINES 

Channel lines are similar to trend lines in that they are horizontal lines which are plotted on the chart, however there are two of them and the are parallel to each other. The price will be moving between the channel lines. So traders look for sell opportunities at the top of the channel lines and buy opportunities at the bottom of the channel lines and other traders look for candles to break the channel lines before getting into a trade. 

PULL BACKS 

Pullbacks are a normal part of price action. They are small moves in the opposite direction to the trend. When a market is moving in one direction, let’s say it’s in an uptrend for this example, it’s not just going to move with none stop bullish candles all the way to the top. There are going to be small bearish candlesticks all the way up the trend too. These can be the result of traders who are in long positions closing their trades and taking their profits. When a buy position is closed, it automatically opens a sell position which means that if enough traders are doing this at the same point you might see small dips. But other buyers might see this as a good point to enter into a buy position as they get a better price after a pull back. Looking for a pull back in the market followed by an engulfing candle is one of my favourite entries into a trend trade. This works for sell positions as well as buy positions. 

BREAKOUTS 

Breakouts are big explosive moves out of an area on the chart. Sometimes these can be areas of consolation where the market has been in a range and then a long bodied candle pushes the price out of that range. Or these can be breakouts from support or resistance levels or from channel lines. Traders enjoy trading breakouts as often the price moves fast in the direction of the break.

BREAK AND RE-TEST 

But as trading isn’t straightforward you do sometimes get re-tests when a market breaks out which is why some traders don’t trade the break and often wait for the re-test instead. A re-test means that once the price has broken out of the area it was in, it actually retraces on itself and comes back to the area it broke from before moving in the direction of the break. So, for example ,if there was a resistance level which the price broke out of, this would mean a bullish candle closed above the resistance level. Rather than continuing to move higher, the market might then move back down to the previous resistance level which has now become a support level. Once it has tested this level it then moves back up. Some forex traders prefer to wait for the re-test after a break as it can sometimes offer a better price and also means you don’t have to take on so much risk as your stop loss can be closer to your entry point. When you trade the break itself, it’s always sensible to be aware that a re-test might take place, and if this happens you need to make sure that your stop loss is in a safe place below the level so that you don’t get stopped out and lose money on the re-test. 

FAKE-OUTS 

And if trading wasn’t difficult enough, sometimes the breakouts aren’t even real breakouts! Sometimes they are fake-outs! Which means that the price isn’t actually going to move in the direction of the break. In fact, fake outs can be a good sign of market rejection. So instead of the market moving in the direction of the break, if it’s a fake out they might actually start moving in the opposite direction instead. One trick which I think is pretty handy for distinguishing between a breakout and a fake-out is to use a higher time frame. If you are trading on a small time frame then you will see a lot of ‘breakouts’ when you switch to a higher time frame you will notice that the bodies of the candle are not actually closing above or below the levels but are actually just a wicky candle with wick pocking above or below and the body itself remaining in the area. Remember that wick can show us price rejection in price action. So if you see a lot of wick pocking above a level then this can be a good sign that it is actually a fake-out and not a breakout and this can be seen clearer on a higher time frame. When I trade breakouts I prefer to trade on 1H or above. The 4H time frame is actually my preferred time frame to trade on, however with breakouts I think it can be beneficial to go down to the 1H so that you don’t miss too much of the break and end up getting into the trade too late. Just don’t go any lower than the 1H as you might get too many false entries. 

Remember, with breakouts that they do often move fast so it happens frequently that you do miss the move. If you are trying to keep across 28 currency pairs every day it’s very likely you will miss a trade or two. The good news is, once the break has happened you can then move to a smaller time frame to start looking for entries on pull backs just like I mentioned above! There are lots of transferable skills like this in trading!! If I’ve missed a breakout on the 1H chart I will often drop to the 15M time frame and then wait for at least a two candle pull back in the opposite direction to the trend followed by an engulfing candle in the direction of the trend. 

So, now you know a lot about price action in forex trading! 

If you want to learn more and see some examples of what I’ve talked about, then I recently made a YouTube video which is up on Trading Angel’s YouTube channel which goes into price action trading for beginners. You can watch that video here. 

Happy Trading! 

Love From, Your Trading Mentor x 

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WHERE TO FIND A GOOD FOREX TRADING COACH

By Your Trading Coach,

Trading Angel 

Obviously I am your forex trading coach in forex-blog-world but as there is only one of me and many traders to help, it would be impossible for me to be everyone’s forex coach one to one, as much as I would love that. Plus picking the right forex coach for you is a very personal choice and there are a few things to consider. So in this post we are going to look at what a forex trading coach is, what makes a good trading coach, where you can find the right trading coach for you, and what your other options are if you decide not to invest in trading coaching. 

ONE OF THE GREATEST LIFE HACKS AVAILABLE 

Firstly, what is a forex trading coach? A coach can be anyone who is closer to where you want to be then you are at the moment. Or they are exactly where you want to be. A trading coach can be someone with just a couple years more experience than you, or someone with many more years experience. Ultimately, getting a coach in any area is really one of the greatest life hacks there is. Having a good coach is excellent leverage getting to the next stage in your career. Some careers are so difficult to climb that it’s almost impossible to do without a coach. And most of the time it’s just easier and quicker to succeed if you do have a coach. 

TRADERS DON’T LIVE LONG ENOUGH TO SPEND THEIR MONEY – APPARENTLY 

Trading isn’t easy which is why it’s one of the careers choices where it is advisable to have a trading coach. When I first started learning how to trade forex I remember that one of the key piece of advice I was given was to get myself a trading coach. And guess what? I’m so stubborn I actually didn’t listen and decided to self teach. Which I do regret a bit. Later on in my forex trading journey I did end up paying for a trading coach and I realise now with hindsight, that the time I saved getting to where I wanted to be was well worth the money I spent.

If you are unfamiliar with my forex trading journey then here is a bit of background:

I first started reading about forex trading in 2015 but I had been interested in it since about 2005. I remember when I was at school and was told I needed to think about what I wanted to do with my life I immediately asked the question ‘well, what job pays the best?’. One of my friends who I considered to be a lot smarter than me, told me that forex traders made A LOT of money. So I said ‘that’s settled, I’ll be a forex trader’ but then she told me that they often died early because of the stress. So I weighted it up as an option and decided it probably wasn’t worth making all that money if I wasn’t going to live long enough to spend it, so I ruled forex trading out for the time being and decided to work in radio instead, because it sounded fun. 

By the time I realised there wasn’t enough money in radio to live comfortably on in the UK, and in particular, in the South East of England in an expensive seaside town called Brighton, most of my twenties had gone by and I was hesitant to start paying lots of money for expensive trading courses or investing in trading mentors if I wasn’t 100% sure it was going to pay off. So I went the half hearted route into forex trading and self taught thinking I was being clever and hedging against the possibility that I might not actually be good enough to make it as a full time trader. 

There are elements of this approach which I stand by today as being clever. I didn’t spend a lot of money on my trading education which was a big plus as I didn’t have a lot of money to spend. I decided I wanted to learn how to trade forex because I needed more money so giving over all the money I didn’t have for something that might not work seemed too big a risk. 

On the flip side, I realise that learning to trade is like most skills in life, the more you practice, the better you get, and if you can learn from someone else who has been there, you can save yourself a lot of time in the process. I do wish I’d invested in a trading coach sooner.

Overall the process of learning to trade forex took a lot longer than I had expected but I also realise that I went the very very long way around things. I didn’t have the money at the time to invest in a trading coach but I wish I had at least started talking to other traders sooner as there really is no quicker way to learn then from someone who has already been there. When I started my trading business, Trading Angel in 2019, I wanted it to be the service which I wish I’d had for myself when I first started trading forex.

WHY DID PAYING FOR A COACH SAVE ME SO MUCH TIME 

When I did eventually decide to fork out for a trading coach of my own, it was because I had done a lot of work to teach myself and master technical analysis but I realised there was bit of a gap in my knowledge when it came to fundamental analysis. I did search all over YouTube to try and find a good channel which could help explain how news affects the forex markets but I struggled to find one which gave a clear answer. Eventually I found a trading coach who had actually worked as an institutional trader for 15 years and was very knowledgeable about macroeconomics and how news releases such as interest rates decision affect the long term direction of the currency pairs. 

Firstly, and very obviously, what saved me time here was that he had 15 years of experience working at institutional level which I didn’t have and lets be honest, I wasn’t prepared to do. So, he was able to sum up those years of experience for me in a few hours and really just tell me the key points which I needed to know. He told me all the big mistakes which he made and how not to make them and little things to focus on which I would never have thought about before. 

15 YEARS EXPERIENCE SUMMED UP IN ONE MINUTE 

I remember well the day when I decided that I wanted to pay him to teach me. We were on a zoom call having a catch up from one trader to another, and we discussed the fact that we had both taken a position on USDJPY. There was a big explosive move up followed by a move down afterward. We took opposite positions on the trade and both made money. He bought the big explosive move up and I traded the reversal. I was a bit jealous he’d caught the big move and I had traded the weaker one. So I asked him how he knew the market was going to explode up. It took him about one minute to explain to me and to show me, and the pattern he showed me is to this day, one of my favourites to trade. So I was sold! I’m a big fan of learning to trade from YouTube or free content where possible but getting that very impactful and concise direction from an expert is really priceless.

If you are just starting your forex journey and you’re hesitant to invest in a forex coach, like I was when I first started trading, then my best suggestion is to watch as many YouTube videos as possible and read as many books as possible. This is the probably the least expensive way to learn from other traders. I release new YouTube videos on trading the financial markets very week, you can subscribe to Trading Angel’s channel here:

https://www.youtube.com/channel/UCIwWrlgN8fHpp4Ktog5UX5A

WHAT MAKES A GOOD TRADING COACH?

A good trading coach is a really personal choice. We all have different learning styles so it’s really important you take your time selecting someone who you feel can teach you in the way that you need to learn. Firstly, you want to make sure you pick someone who is getting results or at the very least has been able to get good results from their coachees, someone who can prove both is ideal. It’s worth taking the time to read reviews and testimonials to see what experience other people have had with their trading coach before you invest in one yourself.

HOW TO FIND A TRADING COACH

Unless you are working in finance you may not come across many trading coaches in your day to day life which means you may need to do a bit of research in order to find one. First things first, Google is a wonderful search engine, you might have heard of it. Type in trading mentor followed by the country you are in and see who comes up on the top page. You may need to read a few profiles and reviews before you find the one which resonates with your learning style and specific needs. Although most coaching for trading is done remotely these days on zoom, the reason why I suggest typing in your country is so that you find someone with no language barriers or run into difficulties with someone in a different time zone. So for example, if I was to look for a forex trading coach I might type into Google “trading coach UK”. 

Another way you can find a trading coach is on social media sites like YouTube, TikTok or Instagram. Just be really careful as a lot of trading coaches these days have scammers copying their profiles daily in order to try and get money out of people by pretending its trading money. So if you do decide to use social media always make sure you find the original profile of the person you are following and not one of the copy cat accounts. My real Instagram account is @trading_angel_caroline but there are countless fakes out there just adding an extra ‘I’ or a dash. Here are the links to all of my social media sites:

Tiktok: https://www.tiktok.com/@trading_angel

YouTube: https://www.youtube.com/@Trading_Angel/videos

My Instagram: https://www.instagram.com/trading_angel_caroline/

Trading Angel Instagram: https://www.instagram.com/trading_angel

Another place you could look for a trading coach is at trading events. These are networking events where traders can meet up. I met my trading coach at an event put on by a forex broker where a few traders where giving presentations on trading. These can be great places to network and often they are completely free. 

IS GETTING A TRADING COACH THE RIGHT CHOICE FOR YOU? 

Often getting a trading coach is not a cheap endeavour but it can be worth it. Just make sure you aren’t throwing money at the furness. If you are not ready to invest the time into practicing what you have learned then it might not be the right time for you to invest in coaching.

Also, if you have a difficult work schedule and you don’t even have regular spaces in it to meet with your trading coach you might be better off opting for an online trading course instead. If you go for a trading course then you have the option of watching the videos as many times as you like and also when you have the time. Make sure you check what the limitations are on the trading course as some will only allow you to log in for three month or a year. I have created a forex trading course for my coachees to be able to re-watch the video classes as many times as they like and there is no time limit at all. 

If you’re interested in this option here are the details:

WHAT’S INCLUDED IN TRADING ANGEL ACADEMY

Trading Angel Academy teaches you through an online video course by your trading coach a step by step guide to trading forex like a Trading Angel. This is a comprehensive programme which not only teaches you the three strategies which I have been using in my day to day trading for the past three years but also offers you a clear structure for your day and how to prioritise and manage your day as a trader.

Trading Angel Academy is £950, this is what you will receive with this offer:

  • You will be given lifetime access, as long as the course is up and the platform is running you can log in and access the content. There is no time limit or time restrictions 
  • 3 strategies with printable rules and checklists, if any additional strategies are added to Trading Angel Academy over time you will get automatic free access 
  • Step by Step video guides on how to trade like a Trading Angel for you to re-watch as many times as you like 
  • Stages Of A Trading Angel Trade – a clear 7step structured guideline of the stages you need to be going through for each trade, this guideline was created by your trading mentor specifically for this programme 
  • Downloadable or printable Stages Of A Trade guideline so you can keep this at your trading desk to refer back when needed
  • Clear guidance on how to structure your day if you want to trade like your trading mentor 
  • Guidance on how to transition to either a part time or full time trader 
  • Separate videos for each trading tool or indicator used making it easy to rewatch the sections you need the most 
  • Monthly updated Economical Calendar Cheat Sheet 
  • Priority to attend Live Trading Sessions – in these you can watch your trading mentor looking for and placing the set ups you have learned in the video tutorials. This is a great bonus to allow you to see exactly what the process of looking for and placing trades should look like and an excellent opportunity to ask your trading mentor any questions 
  • Discount on 1-2-1 trading sessions with your trading coach 
  • Free automatic access to any updates and improvements made on this course by your trading mentor 

You can sign up to Trading Angel Academy here:

https://tradingangel.mykajabi.com/offers/EqUQQy4K

Happy Trading! 

Love From, Your Trading Coach x 

Trading Angel has mentored and coached over 100 traders and understands that most people who decide to start trading the financial markets often do so from a place of frustration where they are currently at. Often they feel over worked and tired in their current job and are looking for a way to spend more time with their family, go traveling, or work on a passion project. Understanding that your time is valuable to you, Trading Angel’s mentorship programme was created with the mission of saving traders as much time as possible on their journey learning how to trade forex and the other financial markets. All the best sports people have coaches and all the best entrepreneurs had mentors including Elon Musk who had several mentors, Steve Jobs mentored Mark Zuckerberg, Warren Buffet mentored Bill Gates and Dumbledore was Harry Potter’s mentor!

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WHERE TO FIND A GOOD FOREX TRADING MENTOR 

By Your Trading Mentor,

Trading Angel 

Obviously I am your forex trading mentor in forex-blog-world but as there is only one of me and many traders to help, it would be impossible for me to be everyones forex mentor one to one, as much as I would love that. Plus picking the right forex mentor for you is a very personal choice and there are a few things to consider. So in this post we are going to look at what a forex trading mentor is, what makes a good trading mentor, where you can find the right trading mentor for you, and what your other options are if you decide not to invest in trading mentorship. 

ONE OF THE GREATEST LIFE HACKS AVAILABLE 

Firstly, what is a forex trading mentor? A mentor is anyone who is closer to where you want to be then you are at the moment. Or they are exactly where you want to be. A trading mentor can be someone with just a couple years more experience than you, or someone with many more years experience. Ultimately, getting a mentor in any area is really one of the greatest life hacks there is. Having a good mentor is excellent leverage getting to the next stage in your career. Some careers are so difficult to climb that it’s almost impossible to do without a mentor. And most of the time it’s just easier and quicker to succeed if you do have a mentor. 

TRADERS DON’T LIVE LONG ENOUGH TO SPEND THEIR MONEY – APPARENTLY 

Trading isn’t easy which is why it’s one of the careers choices where it is advisable to have a trading mentor. When I first started learning how to trade forex I remember that one of the key piece of advice I was given was to get myself a trading mentor. And guess what? I’m so stubborn I actually didn’t listen and decided to self teach. Which I do regret a bit. Later on in my forex trading journey I did end up paying for a trading mentor and I realise now with hindsight, that the time I saved getting to where I wanted to be was well worth the money I spent.

If you are unfamiliar with my forex trading journey then here is a bit of background:

I first started reading about forex trading in 2015 but I had been interested in it since about 2005. I remember when I was at school and was told I needed to think about what I wanted to do with my life I immediately asked the question ‘well, what job pays the best?’. One of my friends who I considered to be a lot smarter than me, told me that forex traders made A LOT of money. So I said ‘that’s settled, I’ll be a forex trader’ but then she told me that they often died early because of the stress. So I weighted it up as an option and decided it probably wasn’t worth making all that money if I wasn’t going to live long enough to spend it, so I ruled forex trading out for the time being and decided to work in radio instead, because it sounded fun. 

By the time I realised there wasn’t enough money in radio to live comfortably on in the UK, and in particular, in the South East of England in an expensive seaside town called Brighton, most of my twenties had gone by and I was hesitant to start paying lots of money for expensive trading courses or investing in trading mentors if I wasn’t 100% sure it was going to pay off. So I went the half hearted route into forex trading and self taught thinking I was being clever and hedging against the possibility that I might not actually be good enough to make it as a full time trader. 

There are elements of this approach which I stand by today as being clever. I didn’t spend a lot of money on my trading education which was a big plus as I didn’t have a lot of money to spend. I decided I wanted to learn how to trade forex because I needed more money so giving over all the money I didn’t have for something that might not work seemed too big a risk. 

On the flip side, I realise that learning to trade is like most skills in life, the more you practice, the better you get, and if you can learn from someone else who has been there, you can save yourself a lot of time in the process. I do wish I’d invested in a trading mentor sooner.

Overall the process of learning to trade forex took a lot longer than I had expected but I also realise that I went the very very long way around things. I didn’t have the money at the time to invest in a trading mentor but I wish I had at least started talking to other traders sooner as there really is no quicker way to learn then from someone who has already been there. When I started my trading business, Trading Angel in 2019, I wanted it to be the service which I wish I’d had for myself when I first started trading forex.

WHY DID PAYING FOR A MENTOR SAVE ME SO MUCH TIME 

When I did eventually decide to fork out for a trading mentor of my own, it was because I had done a lot of work to teach myself and master technical analysis but I realised there was bit of a gap in my knowledge when it came to fundamental analysis. I did search all over YouTube to try and find a good channel which could help explain how news affects the forex markets but I struggled to find one which gave a clear answer. Eventually I found a trading mentor who had actually worked as an institutional trader for 15 years and was very knowledgable about macroeconomics and how news releases such as interest rates decision affect the long term direction of the currency pairs. 

Firstly, and very obviously, what saved me time here was that he had 15 years of experience working at institutional level which I didn’t have and lets be honest, I wasn’t prepared to do. So, he was able to sum up those years of experience for me in a few hours and really just tell me the key points which I needed to know. He told me all the big mistakes which he made and how not to make them and little things to focus on which I would never have thought about before. 

15 YEARS EXPERIENCE SUMMED UP IN ONE MINUTE 

I remember well the day when I decided that I wanted to pay him to teach me. We were on a zoom call having a catch up from one trader to another, and we discussed the fact that we had both taken a position on USDJPY. There was a big explosive move up followed by a move down afterward. We took opposite positions on the trade and both made money. He bought the big explosive move up and I traded the reversal. I was a bit jealous he’d caught the big move and I had traded the weaker one. So I asked him how he knew the market was going to explode up. It took him about one minute to explain to me and to show me, and the pattern he showed me is to this day, one of my favourites to trade. So I was sold! I’m a big fan of learning to trade from YouTube or free content where possible but getting that very impactful and concise direction from an expert is really priceless.

If you are just starting your forex journey and you’re hesitant to invest in a forex mentor, like I was when I first started trading, then my best suggestion is to watch as many YouTube videos as possible and read as many books as possible. This is the probably the least expensive way to learn from other traders. I release new YouTube videos on trading the financial markets very week, you can subscribe to Trading Angel’s channel here:

https://www.youtube.com/channel/UCIwWrlgN8fHpp4Ktog5UX5A

WHAT MAKES A GOOD TRADING MENTOR?

A good trading mentor is a really personal choice. We all have different learning styles so it’s really important you take your time selecting someone who you feel can teach you in the way that you need to learn. Firstly, you want to make sure you pick someone who is getting results or at the very least has been able to get good results from their mentees, someone who can prove both is ideal. It’s worth taking the time to read reviews and testimonials to see what experience other people have had with their trading mentor before you invest in one yourself.

HOW TO FIND A TRADING MENTOR 

Unless you are working in finance you may not come across many trading mentors in your day to day life which means you may need to do a bit of research in order to find one. First things first, Google is a wonderful search engine, you might have heard of it. Type in trading mentor followed by the country you are in and see who comes up on the top page. You may need to read a few profiles and reviews before you find the one which resonates with your learning style and specific needs. Although most mentoring for trading is done remotely these days on zoom, the reason why I suggest typing in your country is so that you find someone with no language barriers or run into difficulties with someone in a different time zone. So for example, if I was to look for a forex trading mentor I might type into Google “trading mentor UK”. 

Another way you can find a trading mentor is on social media sites like YouTube, TikTok or Instagram. Just be really careful as a lot of trading mentors these days have scammers copying their profiles daily in order to try and get money out of people by pretending its trading money. So if you do decide to use social media always make sure you find the original profile of the person you are following and not one of the copy cat accounts. My real instagram account is @trading_angel_caroline but there are countless fakes out there just adding an extra ‘I’ or a dash. Here are the links to all of my social media sites:

Tiktok: https://www.tiktok.com/@trading_angel

YouTube: https://www.youtube.com/@Trading_Angel/videos

My Instagram: https://www.instagram.com/trading_angel_caroline/

Trading Angel Instagram: https://www.instagram.com/trading_angel

Another place you could look for a trading mentor is at trading events. These are networking events where traders can meet up. I met my trading mentor at an event put on by a forex broker where a few traders where giving presentations on trading. These can be great places to network and often they are completely free. 

IS GETTING A TRADING MENTOR THE RIGHT CHOICE FOR YOU? 

Often getting a trading mentor is not a cheap endeavour but it can be worth it. Just make sure you aren’t throwing money at the furness. If you are not ready to invest the time into practicing what you have learned then it might not be the right time for you to invest in coaching.

Also, if you have a difficult work schedule and you don’t even have regular spaces in it to meet with your trading mentor you might be better off opting for an online trading course instead. If you go for a trading course then you have the option of watching the videos as many times as you like and also when you have the time. Make sure you check what the limitations are on the trading course as some will only allow you to log in for three month or a year. I have created a forex trading course for my mentees to be able to rewatch the video classes as many times as they like and there is no time limit at all. 

If you’re interested in this option here are the details:

WHAT’S INCLUDED IN TRADING ANGEL ACADEMY

Trading Angel Academy teaches you through an online video course by your trading mentor a step by step guide to trading forex like a Trading Angel. This is a comprehensive programme which not only teaches you the three strategies which I have been using in my day to day trading for the past three years but also offers you a clear structure for your day and how to prioritise and manage your day as a trader.

Trading Angel Academy is £950, this is what you will receive with this offer:

  • You will be given lifetime access, as long as the course is up and the platform is running you can log in and access the content. There is no time limit or time restrictions 
  • 3 strategies with printable rules and checklists, if any additional strategies are added to Trading Angel Academy over time you will get automatic free access 
  • Step by Step video guides on how to trade like a Trading Angel for you to re-watch as many times as you like 
  • Stages Of A Trading Angel Trade – a clear 7step structured guideline of the stages you need to be going through for each trade, this guideline was created by your trading mentor specifically for this programme 
  • Downloadable or printable Stages Of A Trade guideline so you can keep this at your trading desk to refer back when needed
  • Clear guidance on how to structure your day if you want to trade like your trading mentor 
  • Guidance on how to transition to either a part time or full time trader 
  • Separate videos for each trading tool or indicator used making it easy to rewatch the sections you need the most 
  • Monthly updated Economical Calendar Cheat Sheet 
  • Priority to attend Live Trading Sessions – in these you can watch your trading mentor looking for and placing the set ups you have learned in the video tutorials. This is a great bonus to allow you to see exactly what the process of looking for and placing trades should look like and an excellent opportunity to ask your trading mentor any questions 
  • Discount on 1-2-1 trading sessions with your trading mentor 
  • Free automatic access to any updates and improvements made on this course by your trading mentor 

You can sign up to Trading Angel Academy here:

https://tradingangel.mykajabi.com/offers/EqUQQy4K

Happy Trading! 

Love From, Your Trading Mentor x 

Trading Angel has mentored and coached over 100 traders and understands that most people who decide to start trading the financial markets often do so from a place of frustration where they are currently at. Often they feel over worked and tired in their current job and are looking for a way to spend more time with their family, go traveling, or work on a passion project. Understanding that your time is valuable to you, Trading Angel’s mentorship programme was created with the mission of saving traders as much time as possible on their journey learning how to trade forex and the other financial markets. All the best sports people have coaches and all the best entrepreneurs had mentors including Elon Musk who had several mentors, Steve Jobs mentored Mark Zuckerberg, Warren Buffet mentored Bill Gates and Dumbledore was Harry Potter’s mentor!

Read More

WHY I CREATED A FOREX TRADING COURSE 

By Your Trading Coach

Trading Angel 

THE QUESTION EVERYONE ASKED

I’ve been working as a forex trading coach now for a few years and one of the questions my coachees ask frequently is if we can record the sessions for them to re-watch or if I could make videos specifically for them to re-watch in their own time. And this makes a lot of sense to me as a valuable way of learning because I am very much the sort of person who needs to re-watch something several times to know it well. If I watch a movie I won’t get any of the detail the first time I watch it. I couldn’t tell you what colour top anyone was wearing or probably even their name. I’ll likely miss any subtle sub plots or anything happening in the background which isn’t obvious. At the end of the film I could tell you if I liked it or not, who played the lead character, the glaringly obvious main plot… and that’s about it. Ask me what’s in the background or what anyone was wearing in any given episode of Friends, all of which I’ve watched to death, and I could probably write an essay, or a blog post. But after only one viewing of anything I certainly wouldn’t feel comfortable taking an exam or betting my life savings on being able to recall any detail. Luckily no one is asking me to. But growing up with my sister who is freakishly good at remembering all detail in virtually most situations, gave me the impression that I had some kind of difficulty with learning. However, now I’ve worked with over 100 traders as a trading mentor I actually realise my style of learning and recalling information is very normal. Repetition is the key! 

I’M A BIG FAN OF EFFICIENCY 

So I decided that as everyone asked very nicely, and I wanted to give them the best possible opportunity to learn, that I would create a sort of online portal for Trading Angel mentees where I was able to upload the videos for them to watch as often as needed and it would also allow me to be able to add any new classes further down the line and for everyone to automatically benefit from this. Plus I include a lot of downloadables for my students such as checklists, rules to keep at your trading desk, economical calendar cheat sheets for the month etc etc and this would mean I just had to upload it once rather then send to 100 different people – and I love this because I get high off efficiency! 

I decided to keep the portal just for those I’ve already worked with one to one at first, mainly because it was fair, as these were the people who had paid and who had nicely asked for it to be made in the first place. But also, it just seemed sensible to trial it out with those who already know, like and trust me before I open it up to public scrutiny! 

TRADING ANGEL ACADEMY IS NOW LIVE

Your online trading coaching portal is ready to use!

This link will take you to the landing page:

https://tradingangel.mykajabi.com/offers/EqUQQy4K

WHAT’S INCLUDED IN TRADING ANGEL ACADEMY

Trading Angel Academy teaches you through an online video course by your trading coach a step by step guide to trading forex like a Trading Angel. This is a comprehensive programme which not only teaches you the three trading strategies which I have been using in my day to day trading for the past three years but also offers you a clear structure for your day and how to prioritise and manage your day as a forex trader.

Trading Angel Academy is £950, what you will receive with this offer:

  • You will be given lifetime access, as long as the course is up and the platform is running you can log in and access the content. There is no time limit or time restrictions.
  • 3 strategies with printable rules and checklists, if any additional strategies are added to Trading Angel Academy over time you will get automatic free access 
  • Step by Step video guides on how to trade like a Trading Angel for you to re-watch as many times as you like 
  • Stages Of A Trading Angel Trade – a clear 7step structured guideline of the stages you need to be going through for each trade, this guideline was created by your trading mentor specifically for this programme 
  • Downloadable or printable Stages Of A Trade guideline so you can keep this at your trading desk to refer back when needed
  • Clear guidance on how to structure your day if you want to trade like your trading mentor 
  • Guidance on how to transition to either a part time or full time trader 
  • Separate videos for each trading tool or indicator used making it easy to rewatch the sections you need the most 
  • Monthly updated Economical Calendar Cheat Sheet 
  • Priority to attend Live Trading Sessions – in these you can watch your trading mentor looking for and placing the set ups you have learned in the video tutorials. This is a great bonus to allow you to see exactly what the process of looking for and placing trades should look like and an excellent opportunity to ask your trading mentor any questions 
  • Discount and priority on 1-2-1 trading sessions with your trading mentor 
  • Free automatic access to any updates and improvements made on this course by your trading mentor 

One piece of feedback I have received from those who are enrolled is that there is some assumed knowledge such as basic trader lingo and how candlesticks move etc so if you are a complete beginner and have never traded before in your life, give this YouTube video on Trading Angel’s YouTube channel a watch first to fill you in on all the basics and then you can decided if you’d like to go ahead and pay for the rest of the course

Happy Trading!

Love from, Your Trading Coach x 

Read More

WHY I CREATED A FOREX TRADING COURSE 

By Your Trading Mentor 

Trading Angel 

THE QUESTION EVERYONE ASKED

I’ve been working as a forex trading mentor now for a few years and one of the questions my students ask frequently is if we can record the sessions for them to rewatch or if I could make videos specifically for them to re-watch in their own time. And this makes a lot of sense to me as a valuable way of learning because I am very much the sort of person who needs to re-watch something several times to know it well. If I watch a movie I won’t get any of the detail the first time I watch it. I couldn’t tell you what colour top anyone was wearing or probably even their name. I’ll likely miss any subtle sub plots or anything happening in the background which isn’t obvious. At the end of the film I could tell you if I liked it or not, who played the lead character, the glaringly obvious main plot… and that’s about it. Ask me what’s in the background or what anyone was wearing in any given episode of Friends, all of which I’ve watched to death, and I could probably write an essay, or a blog post. But after only one viewing of anything I certainly wouldn’t feel comfortable taking an exam or betting my life savings on being able to recall any detail. Luckily no one is asking me to. But growing up with my sister who is freakishly good at remembering all detail in virtually most situations, gave me the impression that I had some kind of difficulty with learning. However, now I’ve worked with over 100 traders as a trading mentor I actually realise my style of learning and recalling information is very normal. Repetition is the key! 

I’M A BIG FAN OF EFFICIENCY 

So I decided that as everyone asked very nicely, and I wanted to give them the best possible opportunity to learn, that I would create a sort of online portal for Trading Angel mentees where I was able to upload the videos for them to watch as often as needed and it would also allow me to be able to add any new classes further down the line and for everyone to automatically benefit from this. Plus I include a lot of downloadables for my students such as checklists, rules to keep at your trading desk, economical calendar cheat sheets for the month etc etc and this would mean I just had to upload it once rather then send to 100 different people – and I love this because I get high off efficiency! 

I decided to keep the portal just for those I’ve already worked with one to one at first, mainly because it was fair, as these were the people who had paid and who had nicely asked for it to be made in the first place. But also, it just seemed sensible to trial it out with those who already know, like and trust me before I open it up to public scrutiny! 

TODAY IS LAUNCH DAY 

And four month later having had the green light of approval from those who have been using it, Trading Angel Academy is now available publicly! Today is the first day of launch week and anyone who is quick enough to sign up this week will be gifted a massive 70% discount meaning lifetime access will only be £285 instead of £950. Just enrol before 7th March 2023 to make the most of this one time offer. 

This link will take you to the landing page:

https://tradingangel.mykajabi.com/offers/EqUQQy4K

WHAT’S INCLUDED IN TRADING ANGEL ACADEMY

Trading Angel Academy teaches you through an online video course by your trading mentor a step by step guide to trading forex like a Trading Angel. This is a comprehensive programme which not only teaches you the three trading strategies which I have been using in my day to day trading for the past three years but also offers you a clear structure for your day and how to prioritise and manage your day as a forex trader.

Trading Angel Academy is £950, what you will receive with this offer:

  • You will be given lifetime access, as long as the course is up and the platform is running you can log in and access the content. There is no time limit or time restrictions.
  • 3 strategies with printable rules and checklists, if any additional strategies are added to Trading Angel Academy over time you will get automatic free access 
  • Step by Step video guides on how to trade like a Trading Angel for you to re-watch as many times as you like 
  • Stages Of A Trading Angel Trade – a clear 7step structured guideline of the stages you need to be going through for each trade, this guideline was created by your trading mentor specifically for this programme 
  • Downloadable or printable Stages Of A Trade guideline so you can keep this at your trading desk to refer back when needed
  • Clear guidance on how to structure your day if you want to trade like your trading mentor 
  • Guidance on how to transition to either a part time or full time trader 
  • Separate videos for each trading tool or indicator used making it easy to rewatch the sections you need the most 
  • Monthly updated Economical Calendar Cheat Sheet 
  • Priority to attend Live Trading Sessions – in these you can watch your trading mentor looking for and placing the set ups you have learned in the video tutorials. This is a great bonus to allow you to see exactly what the process of looking for and placing trades should look like and an excellent opportunity to ask your trading mentor any questions 
  • Discount and priority on 1-2-1 trading sessions with your trading mentor 
  • Free automatic access to any updates and improvements made on this course by your trading mentor 

One piece of feedback I have received from those who are enrolled is that there is some assumed knowledge such as basic trader lingo and how candlesticks move etc so if you are a complete beginner and have never traded before in your life, give this YouTube video on Trading Angel’s YouTube channel a watch first to fill you in on all the basics and then you can decided if you’d like to go ahead and pay for the rest of the course

Happy Trading!

Love from, Your Trading Mentor x 

Read More

WHAT ARE THE DIFFERENT TYPES OF FOREX TRADERS 

  • And Which One Is Right For You 

By Your Trading Coach,

Trading Angel 

FOUR MAIN TYPES OF TRADER 

There are four main types of forex trader and while these can be broken down into personalty traits which assume each person is more suited to be one type of trader then another, most traders when they first start out don’t actually have a big say in what type of trader they are going to be, and often that’s due to time limitations and account size. In this blog post I’m going to describe each of the four main types of trader and go into who is best suited to each as well as to say which type and why I feel is best suited to beginner traders. 

The four main types of forex trader are:

SCALP TRADER 

DAY TRADER 

SWING TRADER 

POSITION TRADER 

SCALP TRADER 

Scalp trading is the quickest form of forex trading. Traders are just looking for small fluctuation in the market to grab some quick pips. Sometimes it will just be a matter of minutes which they hold their trades open for, other times it will be as quick as seconds. This type of trading often appeals to new traders, but if you are a beginner trader I would actually advise you not to start scalping for a bit. It might sound like it’s easier as it’s over very quick, but often it is actually more difficult than the other forms of trading. It is a very aggressive form of trading which takes enormous focus and requires traders to be incredibly decisive and have impeccable risk management. It’s like day trading but on steroids. And day trading is famously not easy. One aspect of scalp trading which I can understand is very appealing to newer traders is that it is possible to do on a smaller account, as the stop loss will often be a lot tighter than when you are trading on a higher time frame. Scalp traders often trade on small time frames such as the 5M or even the 1M. 

My best piece of advice for scalp traders is to still pay attention to the higher time frames and make sure you only actually scalp in the direction of the long term trend. It might be tempting to just buy and sell every time you see a position with your strategy, but if you can establish the long term direction and where there is significant momentum on the 4H or 1D chart then you might miss a few opportunities but you will avoid big losses. If you think about time frames like the ocean, the 5M time frame are ripples, the 4H time frame are waves and the 1D time frame are tides. You don’t want to be trying to catch a ripple in the opposite direction to the tide otherwise you’ll likely drown. Dr Alexander Elder goes into this analogy in a lot of detail in his book Trading For A Living which I highly recommend and you can check out on Amazon here https://amzn.to/3SlMXJ6

DAY TRADER 

Day traders open and close their trades within a day without holding any positions over night. Often they will be trading on the 4H time frame or even down to 15M for precise entries. Day traders will need to use bigger stop losses for their trades than scalp traders as they need to account for the increased volatility which comes with holding trades for longer periods of time over the day and taking positions on higher time frames. However day traders also benefit from not having to pay the extra costs of slippage or overnight fees. While this style of trading isn’t as quick as scalping, it still require a high level of accuracy, focus and risk management. 

My best piece of advice for days traders would be to pay close attention to what happens at certain times of day. There are many daily fluctuations throughout the 24 hour period and you’ll need to become really familiar with those which are taking place while you are trading. For example, there is often high volatility during London open (which is 8AM UK time) and often markets can move with nice momentum up until around 13:30 when the US starts to wake up and loads of economical data gets released. This can often cause reversals in the market, so if you are in high profit for the start of the London session you might want to consider closing your trade and taking your profits before any news is realised in the US. New York open is an hour after the news releases, at 14:30 UK time and this can cause yet another direction change or a big move in the same direction as the news depending on the results. 16:00 is when London starts to close which can often mean traders are closing their positions and taking their profits which can cause yet another direction change. So timing is very important when you are a day trader, and not only will you want to plan your entries around factors such as market opens or the 4H candle closing but you’ll also want to be ready to close a trade early and take profits if it’s approaching a time when the markets often reverse and you are in good profit. 

SWING TRADER 

Swing traders will hold their trades over night and sometimes for several days or even weeks. They are really looking to catch the market ‘swings’ by buying at the bottom of a trend and selling at the top. Swing trading takes a lot of patience and careful analysis. It also requires the trader to have very steady nerves as they need to ride out fluctuations and sometimes relatively large pull backs. Swing traders will often trade on the 1D or the 1W charts and will need to have larger stop losses to account for the fluctuations which might happen on these higher time frames. 

My best advice for swing traders is so get really good at understanding fundamental analysis as well as technicals as this plays a big part in determining which way the market swings. 

POSITION TRADER

Positions trading is the longer form of trading. Position traders will hold their positions for weeks and sometimes months or even a year +. They are really looking for the bigger picture of where the market is moving in the long term and are not interested in the small fluctuations in price. While position trading might sound very peaceful it often require very large trading accounts which are able to ride out any fluctuations. 

Similar to swing trading my best advice for position traders is to be really hot on macroeconomics and fundamental analysis as this is what’s really moving the financial markets in the long term. Understand interest rates decisions and how this can affect the long term direction of a currency is very beneficial. If you’d like to learn more about this in detail it is part of the trading course at Trading Angel Academy which you can check out here 

https://caroline-rundell.mykajabi.com/offers/EqUQQy4K

WHAT TYPE OF TRADER AM I AND WHICH DO I THINK IS BEST FOR BEGINNER TRADERS

When I first started trading forex I wanted to be a swing trader as I was told it was the least stressful. When I was swing trading I was checking the charts once a day in the evening on the 1D chart which worked very well for me while I was working a 9-5 job. For this reason it’s great for new traders who have a very intense job which means they can’t actually look at the charts during the day. The problem I had was that I started trading on a very small forex account of just a couple hundred pounds. It’s very difficult if not impossible to be a swing trader on a small account, although my strategy worked very well on paper I was finding that my account size wasn’t large enough to hold the trades open for long enough because I could only open about 5 positions at once. I also felt like the stop losses which I needed to use based on volatility were too big for my small account. So I tried day trading instead. I found the transition challenging as I had to completely change my stagey and rather then focusing on long trends I was having to look for momentum and breakouts and then time these very carefully based on session open times. If I wasn’t paying attention I would leave a trade open for too long and have it suddenly reverse on me having previously been in profit. My little trick which I used to get around this is to set alarm clocks first thing in the morning when I wake up which remind me to check the charts and review my trades regularly throughout the day. As a day trader I trade on the 4H chart which I found worked well still even when I was still working another job. I only had to look for trade entries once every 4 hours when the 4H candle closed and as this was at the same time every day it was pretty easy to manage and to fit into my routine. 

I think for this reason day trading is very manageable for newer traders as the 4H chart allows them to still work their other job. 

If someone comes to me looking for a trading mentor and asks what type of trader they should be I will ask them two questions. 

How flexible are you during the day? 

How much money are you able to start trading with? 

Flexibility during the day is very important. If you are a nurse working in the NHS, for example, who is not allowed to look at their phone during the day, you would find it impossible to be a scalp trader or even a day trader but you might be able to manage swing trading by checking the 1D chart once a day when the markets close in the evening – similar to what I did when I first started trading forex. If you do work during the day but have a bit more flexibility and can easily check the charts every 4 hours to get a reading when the 4H candle closes, then being a day trader might work for you. But I would also check if it was a problem to have alarms going off every couple of hours to remind you to review your trades at different sessions open and close. In some jobs this would be ok and in others it would be completely unacceptable.

With the rise of people working from home it’s actually becoming easier for more of us to realistically be day traders.

It can be a bit stressful and intense trying to juggle both day trading and your normal 9-5 simultaneously so if you are someone who finds its difficult to focus on more than one thing at a time but you do work from home and would like to try fitting trading into your daily routine, it could be an option to try scalp trading the London open. For about half an hour to an hour each morning at 8AM UK time there is a lot of volatility on the UK100 or the FTSE as the London stock market opens. It can present a good scalp trading opportunity which could potentially give you the opportunity to trade for an hour in the morning before working on your 9-5. I recently started testing out a scalp trading strategy for this period in the morning, and one thing I will say is that there aren’t good opportunities every day so definitely don’t force trades if you don’t see good set ups. Its also really important to do lots of back testing and live testing first before you start live trading as these markets move FAST!! If you are interested in this as an option, I recently made a YouTube video which is up on Trading Angel’s YouTube channel which highlights the 5 things I wish I knew when I first started trading the London Open, you can watch that video by clicking this link 

Happy Trading! 

Love From, Your Trading Coach x 

Read More

WHAT ARE THE DIFFERENT TYPES OF FOREX TRADERS 

  • And Which One Is Right For You 

By Your Trading Mentor,

Trading Angel 

FOUR MAIN TYPES OF TRADER 

There are four main types of forex trader and while these can be broken down into personalty traits which assume each person is more suited to be one type of trader then another, most traders when they first start out don’t actually have a big say in what type of trader they are going to be, and often that’s due to time limitations and account size. In this blog post I’m going to describe each of the four main types of trader and go into who is best suited to each as well as to say which type and why I feel is best suited to beginner traders. 

The four main types of forex trader are:

SCALP TRADER 

DAY TRADER 

SWING TRADER 

POSITION TRADER 

SCALP TRADER 

Scalp trading is the quickest form of forex trading. Traders are just looking for small fluctuation in the market to grab some quick pips. Sometimes it will just be a matter of minutes which they hold their trades open for, other times it will be as quick as seconds. This type of trading often appeals to new traders, but if you are a beginner trader I would actually advise you not to start scalping for a bit. It might sound like it’s easier as it’s over very quick, but often it is actually more difficult than the other forms of trading. It is a very aggressive form of trading which takes enormous focus and requires traders to be incredibly decisive and have impeccable risk management. It’s like day trading but on steroids. And day trading is famously not easy. One aspect of scalp trading which I can understand is very appealing to newer traders is that it is possible to do on a smaller account, as the stop loss will often be a lot tighter than when you are trading on a higher time frame. Scalp traders often trade on small time frames such as the 5M or even the 1M. 

My best piece of advice for scalp traders is to still pay attention to the higher time frames and make sure you only actually scalp in the direction of the long term trend. It might be tempting to just buy and sell every time you see a position with your strategy, but if you can establish the long term direction and where there is significant momentum on the 4H or 1D chart then you might miss a few opportunities but you will avoid big losses. If you think about time frames like the ocean, the 5M time frame are ripples, the 4H time frame are waves and the 1D time frame are tides. You don’t want to be trying to catch a ripple in the opposite direction to the tide otherwise you’ll likely drown. Dr Alexander Elder goes into this analogy in a lot of detail in his book Trading For A Living which I highly recommend and you can check out on Amazon here https://amzn.to/3SlMXJ6

DAY TRADER 

Day traders open and close their trades within a day without holding any positions over night. Often they will be trading on the 4H time frame or even down to 15M for precise entries. Day traders will need to use bigger stop losses for their trades than scalp traders as they need to account for the increased volatility which comes with holding trades for longer periods of time over the day and taking positions on higher time frames. However day traders also benefit from not having to pay the extra costs of slippage or overnight fees. While this style of trading isn’t as quick as scalping, it still require a high level of accuracy, focus and risk management. 

My best piece of advice for days traders would be to pay close attention to what happens at certain times of day. There are many daily fluctuations throughout the 24 hour period and you’ll need to become really familiar with those which are taking place while you are trading. For example, there is often high volatility during London open (which is 8AM UK time) and often markets can move with nice momentum up until around 13:30 when the US starts to wake up and loads of economical data gets released. This can often cause reversals in the market, so if you are in high profit for the start of the London session you might want to consider closing your trade and taking your profits before any news is realised in the US. New York open is an hour after the news releases, at 14:30 UK time and this can cause yet another direction change or a big move in the same direction as the news depending on the results. 16:00 is when London starts to close which can often mean traders are closing their positions and taking their profits which can cause yet another direction change. So timing is very important when you are a day trader, and not only will you want to plan your entries around factors such as market opens or the 4H candle closing but you’ll also want to be ready to close a trade early and take profits if it’s approaching a time when the markets often reverse and you are in good profit. 

SWING TRADER 

Swing traders will hold their trades over night and sometimes for several days or even weeks. They are really looking to catch the market ‘swings’ by buying at the bottom of a trend and selling at the top. Swing trading takes a lot of patience and careful analysis. It also requires the trader to have very steady nerves as they need to ride out fluctuations and sometimes relatively large pull backs. Swing traders will often trade on the 1D or the 1W charts and will need to have larger stop losses to account for the fluctuations which might happen on these higher time frames. 

My best advice for swing traders is so get really good at understanding fundamental analysis as well as technicals as this plays a big part in determining which way the market swings. 

POSITION TRADER

Positions trading is the longer form of trading. Position traders will hold their positions for weeks and sometimes months or even a year +. They are really looking for the bigger picture of where the market is moving in the long term and are not interested in the small fluctuations in price. While position trading might sound very peaceful it often require very large trading accounts which are able to ride out any fluctuations. 

Similar to swing trading my best advice for position traders is to be really hot on macroeconomics and fundamental analysis as this is what’s really moving the financial markets in the long term. Understand interest rates decisions and how this can affect the long term direction of a currency is very beneficial. If you’d like to learn more about this in detail it is part of the trading course at Trading Angel Academy which you can check out here 

https://caroline-rundell.mykajabi.com/offers/EqUQQy4K

WHAT TYPE OF TRADER AM I AND WHICH DO I THINK IS BEST FOR BEGINNER TRADERS

When I first started trading forex I wanted to be a swing trader as I was told it was the least stressful. When I was swing trading I was checking the charts once a day in the evening on the 1D chart which worked very well for me while I was working a 9-5 job. For this reason it’s great for new traders who have a very intense job which means they can’t actually look at the charts during the day. The problem I had was that I started trading on a very small forex account of just a couple hundred pounds. It’s very difficult if not impossible to be a swing trader on a small account, although my strategy worked very well on paper I was finding that my account size wasn’t large enough to hold the trades open for long enough because I could only open about 5 positions at once. I also felt like the stop losses which I needed to use based on volatility were too big for my small account. So I tried day trading instead. I found the transition challenging as I had to completely change my stagey and rather then focusing on long trends I was having to look for momentum and breakouts and then time these very carefully based on session open times. If I wasn’t paying attention I would leave a trade open for too long and have it suddenly reverse on me having previously been in profit. My little trick which I used to get around this is to set alarm clocks first thing in the morning when I wake up which remind me to check the charts and review my trades regularly throughout the day. As a day trader I trade on the 4H chart which I found worked well still even when I was still working another job. I only had to look for trade entries once every 4 hours when the 4H candle closed and as this was at the same time every day it was pretty easy to manage and to fit into my routine. 

I think for this reason day trading is very manageable for newer traders as the 4H chart allows them to still work their other job. 

If someone comes to me looking for a trading mentor and asks what type of trader they should be I will ask them two questions. 

How flexible are you during the day? 

How much money are you able to start trading with? 

Flexibility during the day is very important. If you are a nurse working in the NHS, for example, who is not allowed to look at their phone during the day, you would find it impossible to be a scalp trader or even a day trader but you might be able to manage swing trading by checking the 1D chart once a day when the markets close in the evening – similar to what I did when I first started trading forex. If you do work during the day but have a bit more flexibility and can easily check the charts every 4 hours to get a reading when the 4H candle closes, then being a day trader might work for you. But I would also check if it was a problem to have alarms going off every couple of hours to remind you to review your trades at different sessions open and close. In some jobs this would be ok and in others it would be completely unacceptable.

With the rise of people working from home it’s actually becoming easier for more of us to realistically be day traders.

It can be a bit stressful and intense trying to juggle both day trading and your normal 9-5 simultaneously so if you are someone who finds its difficult to focus on more than one thing at a time but you do work from home and would like to try fitting trading into your daily routine, it could be an option to try scalp trading the London open. For about half an hour to an hour each morning at 8AM UK time there is a lot of volatility on the UK100 or the FTSE as the London stock market opens. It can present a good scalp trading opportunity which could potentially give you the opportunity to trade for an hour in the morning before working on your 9-5. I recently started testing out a scalp trading strategy for this period in the morning, and one thing I will say is that there aren’t good opportunities every day so definitely don’t force trades if you don’t see good set ups. Its also really important to do lots of back testing and live testing first before you start live trading as these markets move FAST!! If you are interested in this as an option, I recently made a YouTube video which is up on Trading Angel’s YouTube channel which highlights the 5 things I wish I knew when I first started trading the London Open, you can watch that video by clicking this link 

Happy Trading! 

Love From, Your Trading Mentor x 

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HOW MUCH MONEY DO YOU NEED TO START TRADING FOREX?

By Your Trading Coach

Trading Angel 

MY ANSWER MIGHT SURPRISE YOU 

One of the questions which I get asked the most as a trading coach is ‘How much money do I need to start trading forex?’ Sensible question. If you don’t have enough to start trading properly then you shouldn’t bother at all right? Not necessarily! I started trading forex on a £200 account. Did I turn that into a million pounds? No, obviously I didn’t. Did I turn that into any substantial profit? Again, no. But I did learn how to trade without losing a load of money in the process which was pretty valuable. And you can use those skills to later apply for funding which I’ll go on to explain later. 

TRADING FOREX IS LIKE DRIVING A CAR 

I have several analogies where I compare learning to trade the financial markets to learning to drive a car. Let me share one of them with you. Would you suggest a brand new driver in their first year of passing their test drive a Lamborghini? Probably not. No matter how good a driver you are in your first year, there will undoubtably be a few unexpected bumps and bruises along the way, and anyone who’s been driving for long enough knows that. Your first car usually ends up with a few scratches and dents, no mater how careful you were or how you passed your test on your first go. Think of your first car as your first trading account, don’t spend too much on it because it’s probably not going to last too long anyway! Obviously most people go on to drive more or less ok without causing too much daily damage after a few years, this is why your insurance tends to go down. Most traders give up before they get to this point as they don’t need to run a trading account every day to get to work so they don’t get forced to get better through daily practice. I can do a whole other blog post on how the key to success is consistent practice but that’s for another day when I’ll compare learning to trade to training as an athlete. 

Most traders don’t make millions in their first year trading. Most don’t even break even. The first year should be seen as a year when you are learning. Like with any job, you have to learn what you are doing first before you can expect to be good or to make money from it. There’s an unrealistic expectation (which I partly blame fake gurus on Instagram for) that everyone who learns how to trade should be making silly money straight away. 

LETS TALK NUMBERS

How much can you reasonably expect to make as a forex trader once you are good at it? Let’s assume you’ve put in at least a year of practice and you are a wizard at both technical and fundamental analysis, maybe you could make around 1-10% a month in profit of your total capital if you are very good BUT don’t expect that it’s going to be 10% every month. Not all months present good opportunities and you might not be at your best every month. Let’s stay humble and keep to the bottom end of that and say you make 1% profit a month (that’s 12% a year which is better then most savings accounts but not as good as Warren Buffett who reportedly makes around 20% a year trading) If you are trading a £200 account, like I was, that’s about £2 in profit at the end of a month of work. So let’s go to the other end and say you have a £100,000 trading account, that 1% then becomes £1,000 a month. A little disappointing right? Obviously 10% is £10,000 a month which is more exciting but we’ve already established we can’t bank on that happening every month plus we also need a spare £100,000 sitting around doing nothing. The solution? Well there are these wonderful things called prop firms. 

FLIP A SMALL FOREX ACCOUNT 

So if you’re not familiar with the concept of a prop firm its a company which will allow you to trade their money for them in exchange for a percentage of the profits. There is usually a fee to sign up and a test which needs to be passed to prove that you are a responsible trader. But to me, this is very clearly the solution for those who can trade but who don’t have the capital to make their trading profits actually mean anything significant.

Trading Angel recommends the prop firm FTUK for forex traders in the UK. What I like about about them is that you can actually go straight to being funded without having to go through the challenge part. There is a small fee for this so you will need to pay £150 as your sign up fee rather than £119. Profit splits to begin are 50/50 however as you scale up you can actually progress to an 80/2- split in your favour.

If you’d like to sign up to FTUK you can use this link

Home

So to conclude, How much money do you need to start trading forex? None at all, technically. You can self teach and learn on a demo account and when you’re good enough, then apply to a prop firm. Do I think this is realistic? Not really. I think that live trading with real money is definitely helpful to practicing your strategy first before applying to a prop firm. And you will defiantly need a clear strategy or set of rules in place to practice with. So either you can compile this yourself or you can pay a trading mentor or sign up to a trading course. Trading Angel teaches four strategies as part of the basic package so this includes a trend trading strategy, a reversal strategy, a momentum strategy and a breakout strategy. For details of how to be added to the waitlist for trading coaching by Trading Angel you can visit the website here: 

Home

Happy Trading! 

Love from your Trading Coach x 

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HOW MUCH MONEY DO YOU NEED TO START TRADING FOREX?

By Your Trading Mentor 

Trading Angel 

MY ANSWER MIGHT SURPRISE YOU 

One of the questions which I get asked the most as a trading mentor is ‘How much money do I need to start trading forex?’ Sensible question. If you don’t have enough to start trading properly then you shouldn’t bother at all right? Not necessarily! I started trading forex on a £200 account. Did I turn that into a million pounds? No, obviously I didn’t. Did I turn that into any substantial profit? Again, no. But I did learn how to trade without losing a load of money in the process which was pretty valuable. And you can use those skills to later apply for funding which I’ll go on to explain later. 

TRADING FOREX IS LIKE DRIVING A CAR 

I have several analogies where I compare learning to trade the financial markets to learning to drive a car. Let me share one of them with you. Would you suggest a brand new driver in their first year of passing their test drive a Lamborghini? Probably not. No matter how good a driver you are in your first year, there will undoubtably be a few unexpected bumps and bruises along the way, and anyone who’s been driving for long enough knows that. Your first car usually ends up with a few scratches and dents, no mater how careful you were or how you passed your test on your first go. Think of your first car as your first trading account, don’t spend too much on it because it’s probably not going to last too long anyway! Obviously most people go on to drive more or less ok without causing too much daily damage after a few years, this is why your insurance tends to go down. Most traders give up before they get to this point as they don’t need to run a trading account every day to get to work so they don’t get forced to get better through daily practice. I can do a whole other blog post on how the key to success is consistent practice but that’s for another day when I’ll compare learning to trade to training as an athlete. 

Most traders don’t make millions in their first year trading. Most don’t even break even. The first year should be seen as a year when you are learning. Like with any job, you have to learn what you are doing first before you can expect to be good or to make money from it. There’s an unrealistic expectation (which I partly blame fake gurus on Instagram for) that everyone who learns how to trade should be making silly money straight away. 

LETS TALK NUMBERS

How much can you reasonably expect to make as a forex trader once you are good at it? Let’s assume you’ve put in at least a year of practice and you are a wizard at both technical and fundamental analysis, maybe you could make around 1-10% a month in profit of your total capital if you are very good BUT don’t expect that it’s going to be 10% every month. Not all months present good opportunities and you might not be at your best every month. Let’s stay humble and keep to the bottom end of that and say you make 1% profit a month (that’s 12% a year which is better then most savings accounts but not as good as Warren Buffett who reportedly makes around 20% a year trading) If you are trading a £200 account, like I was, that’s about £2 in profit at the end of a month of work. So let’s go to the other end and say you have a £100,000 trading account, that 1% then becomes £1,000 a month. A little disappointing right? Obviously 10% is £10,000 a month which is more exciting but we’ve already established we can’t bank on that happening every month plus we also need a spare £100,000 sitting around doing nothing. The solution? Well there are these wonderful things called prop firms. 

FLIP A SMALL FOREX ACCOUNT 

So if you’re not familiar with the concept of a prop firm its a company which will allow you to trade their money for them in exchange for a percentage of the profits. There is usually a fee to sign up and a test which needs to be passed to prove that you are a responsible trader. But to me, this is very clearly the solution for those who can trade but who don’t have the capital to make their trading profits actually mean anything significant.

Trading Angel recommends the prop firm FTUK for forex traders in the UK. What I like about about them is that you can actually go straight to being funded without having to go through the challenge part. There is a small fee for this so you will need to pay £150 as your sign up fee rather than £119. Profit splits to begin are 50/50 however as you scale up you can actually progress to an 80/2- split in your favour.

If you’d like to sign up to FTUK you can use this link

Home

So to conclude, How much money do you need to start trading forex? None at all, technically. You can self teach and learn on a demo account and when you’re good enough, then apply to a prop firm. Do I think this is realistic? Not really. I think that live trading with real money is definitely helpful to practicing your strategy first before applying to a prop firm. And you will defiantly need a clear strategy or set of rules in place to practice with. So either you can compile this yourself or you can pay a trading mentor or sign up to a trading course. Trading Angel teaches four strategies as part of the basic package so this includes a trend trading strategy, a reversal strategy, a momentum strategy and a breakout strategy. For details of how to be added to the waitlist for mentorship by Trading Angel you can visit the website here: 

Home

Happy Trading! 

Love from your Trading Mentor x 

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A LITTLE BIT OF SCIENCE WHICH CAN BE APPLIED TO TRADING FOREX 

By Your Trading Coach,

Trading Angel 

IS FOREX TRADING AN ART OR A SCIENCE? 

Forex traders will argue to their death about whether forex trading is an art or a science. Those who create trading algorithms are on the side which say science, clearly believing that set rules applied every time will eventually produce positive results at least 51% of the time. Or there are those which advocate for the risk to reward ratio to be so ridiculously in your favour as the only way to truly succeed as a forex trader. Insisting that as there are only two option, to buy or to sell, you could, in theory, flip a coin, and as long as your risk to reward ratio is say 1:5 you are bound to end with more money than you started, eventually, as its just a game of numbers. 

TRY CONVINCING ME IT’S ALL SCIENCE 

While I hear these arguments and accept that they make sense on paper I can’t help leaning a little more on the side of forex trading being an art. There are a lot of things to consider before any trade is placed in order to consider it to be high probability enough to put money on the line. Some of the considerations which I rank highly I’ll admit fall under science. For example, timing. I think timing is incredibly important in forex trading and I’m constantly baffled as to why more trading mentors don’t actually talk about this more. Session opening and closing times for example. Month end, when there is often a big sell off as countries attempt to balance their books. Seasonal fluctuation where the markets often fall into ranges as there isn’t enough liquidity in them, for example that period between Christmas and New Years or the summer holidays in August. While it’s better for a human to apply common sense to all these areas it is technically possible to programme these into a computer. But what about the human emotions which move the market, fear, greed or uncertainty? Can these be programmed into a computer? If you’re holding strong on your argument of forex trading being a science I imagine you could fight this point too, although I might be a little sceptical and think you’re just arguing now because you like arguing. How about fundamental analysis? Interpreting economical data and how this is perceived by those trading the financial markets? I think once we move further into this territory you’re going to completely lose me if you think forex trading is ONLY science and there’s no art to it whatsoever. 

SURELY NFP VOLATILITY CANT BE SCIENCE 

While it’s essential for forex traders to be chart literate and to be hot on their technical analysis and their understanding of price action, it’s just as important to understand fundamental analysis, the real driving force behind any long term move made on the charts. Or short term volatility. Take NFP for example. For those who are new to forex trading, NFP stands for Non Farm Payroll. It is huge economical data which is released each month on the first Friday of every month at 13:30 UK time and gives information on the US jobs which aren’t relating to farm work. NFP is famous for causing huge volatility in the financial markets, especially USD pairs or those which are pegged to the US economy.  Lots of traders actually chose not to trade NFP while others find it to be the most exciting day of the month. I’ve known new traders who have sat at their charts before the news is about to be released and have tried to analyse the candlestick patterns leading up to the news release in order to chose a direction. This is ridiculous. The giant move which happens the second the numbers are released is based on fundamental analysis and traders attempting to interpret whether the news was better then expected, as expected or worse than expected and all the different nuances in-between. Any price action leading up to this point is irrelevant. Now tell me there’s no art to trading. How on earth can you ask a computer to make sense of what humans are feeling when these numbers come out. If you know a computer which can do this, then you are wasting your time reading this blog.

BELIEVING TRADING IS MORE SCIENCE IS MORE CONVENIENT 

Now I understand why forex traders desperately want trading to be more of a science than an art. If it’s science, it can be learned, It can be memorised, it might take time to learn but if it’s an exact science, surely anyone can put in enough time and get it right. If it’s a science you can tell a computer when to trade for you and you can become rich with minimal effort. If it’s an art, then there are thousands of nuances, it takes practice and yet you can still get it wrong. If it’s an art than all of those who were terrible at art or sport at school suddenly feel helpless and like there’s no hope. If it’s an art, then it sounds like one big frustration which would take too much time to master and you just don’t have the time, because you’re tired and stressed at your day job and the whole reason you wanted to be a trader in the first place was to free up your time and make you rich so you could enjoy life. Learning an art goes against the reason you want to be a trader. It’s much more convenient to believe that trading is a science.

The good news is, I believe it’s an art and a science. Sure, there are parts of trading which you need to consider human emotion for and a human will do a better job than a computer (probably), but there are times when actually removing human emotion and working with the facts can be hugely beneficial. 

LETS TALK ABOUT MOMENTUM 

There is one huge part of forex trading which I believe is science, and I absolutely love it. It is momentum. The dictionary defines momentum as being “The quantity of motion of a moving body, measured as a product of its mass and velocity”. Ok, so in layman’s terms that basically means if something is moving with force in a certain direction it’s got momentum and is likely to continue moving in that direction for a bit, as that takes less effort than slowing down and turning around. 

MOMENTUM IS YOUR FRIEND 

Let’s use a car analogy! I love a car analogy for trading! So imagine a car is going really fast along the motorway, it’s got momentum. Now imagine that car missed its exit and actually needs to reverse as quickly as possible and go the other way. It doesn’t start moving with momentum in the opposite direction the second the driver has that thought. It has to first of all find a safe place to slow down and come off the motorway, and the faster it is going and the more momentum it has, the longer it might take for it to slow down, then it has to come off the motorway, turn around and build up momentum in the opposite direction. Now let’s apply this to the financial markets. If a market is in a trend it has momentum. The market is much more likely to keep going in the direction it’s got momentum in, even if for a little bit, as slowing down and turning around takes a lot more energy and is more time consuming than you may imagine. The conclusion; the trend is your friend, and momentum is also your friend. 

So now you know how powerful momentum can be in trading, what are the different tools you can use to measure momentum? My personal favourite is Heikin Ashi but other popular momentum indicators include MACD and RSI. 

HEIKIN ASHI 

Heikin Ashi looks similar to normal candlesticks but they use a slightly different formula which smooths to the appearance of the trend. There are different ways which Heikin Ashi can be used in your trading but today we are going to focus on momentum. So when using Heikin Ashi to gauge momentum you want to consider that the Heikin Ashi candles are made of three main types. 

There are :

Bullish momentum candles – these are green and have a flat base and wick at only the top 

Bearish momentum candles – these are red and have a flat top and wick at only the base 

Indecision candles – these can be any colour, either red or green, and have wick at both the base and the top 

I have two key rules for using Heikin Ashi candles to measure momentum:

Firstly, it works significantly better on higher time frames than smaller ones, so please only consider what I’m saying to be relevant for 4H and above. If you go any lower than 4H there are far too many false entries and exits. 

Secondly, never take any decision either to get into or out of a trade based on an indecision candle. These are often just pull backs rather than reversals. While we do get indecision candles before a genuine reversal, we also get loads of them during a trend with strong momentum, and if you were to come into and out of a trade every time you saw one your day would be utter chaos. One of my favourite strategies uses Heikin Ashi and momentum, so if you’d like more details on how to sign up to Trading Angel Academy and learn this trading strategy plus 2 others, either visit the website at www.tradingangel.co.uk or sign up to the Academy here: https://caroline-rundell.mykajabi.com/offers/EqUQQy4K

MACD 

The Moving Average Convergence Divergence indicator is a popular tool for gauging momentum and for helping traders decide whether to get into or out of trades. It looks a little confusing when you first see it because it appears to have a few elements to it so lets break these down:

First of all, default settings on MACD are the most popular to use so feel free to keep them as you find them on TradingView which is 12, 26, 9. 

The main components of the MACD are:

MACD line – the blue line on TradingView default settings

Signal line – the red line on TradingView default settings – this is a 9 period EMA 

Histogram – this shows us momentum and is a visual representation of the MACD and the 9 period EMA

Zero line – where the histogram crosses from green to red or from bullish momentum to bearish momentum. 

While it may look complicated its in essence very straightforward. The Moving Average Convergence Divergence calculates the difference between a markets 26 period exponential moving average and the 12 period exponential moving average or EMA. And the histogram is the key to gauging momentum. When the histogram is very big it shows us there is strong momentum and when it is small it shows us that momentum is weak. The colours on the histogram can also help give us clues as to when momentum is slowing down in one direction and perhaps speeding up in the other.

Dark red – bearish momentum 

Light red – bullish 

Dark green – bullish momentum 

Light green – bearish 

RSI 

Relative Strength Index is another popular trading indicator which can helps traders gauge momentum. It is an oscillator which measures the speed and change of pace movements. The relative strength index oscillates on a scale of 0 to 100 and is generally considered to be ‘overbought’ when it is over 70 on the scale and ‘oversold’ when it is under 30. This means that traders will start to look for reversals from the upside to the downside, in other words, sell positions, when the RSI moves over 70. Similarly traders will start to look for reversals from the downside to the upside, or buy positions, when the RSI starts to go under 30. 

The tricky thing with the RSI is that in backtesting it looks like this woks perfectly, however if you have every tried to trade it this way you will know that it isn’t that simple at all. As we have already established when a market has strong momentum in a certain direction it tends to keep moving for a bit rather than suddenly hitting the breaks and turning back around. Which means, traders who just use the RSI ‘oversold’ and ‘overbought’ as their exact entry trigger, are often disappointed by getting into the trade far too early. What’s even more disappointing about this is that often the market does eventually reverse, but by this point they have already taken an enormous loss by entering at the very first sign rather then waiting for the exact confirmation (if you want to know more about the stages of a trade and the 7 steps Trading Angel teaches every trader to look for in a trade then this is taught in great detail at Trading Angel Academy:

https://tradingangel.mykajabi.com/offers/EqUQQy4K

HOW DOES RSI DIVERGENCE SHOW A POSSIBLE REVERSAL? 

So the way traders use the RSI to show that momentum is slowing down before a possible reversal is to look for divergence. Divergence is when the price moves in the opposite direction to the RSI, once the RSI has gone into extreme conditions, so either above 70 or below 30. So for example, if the RSI is above 70 and starts to move down whilst the price is continuing to move up on the chart (the opposite direction to the RSI) this shows us that there is divergence and a slow down in momentum which could possibly lead to a reversal in the near future. On the other hand if the market is trending down and the RSI is below 30 but starts to move back up while the price on the chart continues to move down then this shows bearish divergence. RSI default settings on TradingView are 14 however I like to adjust mine slightly to 10. 

I couldn’t recommend TradingView any more as the place to do your charting and technical analysis. It’s what I’ve been using since the first day I started trading and as a trading mentor it’s what I encourage all of my mentees to use. TradingView is free if you don’t mind the pop ups, I like to use the Pro version as it’s still relatively inexpensive at around £11 a month and there are a few cool features which make it very useful, such as being able to save multiple indicators on your strategy templates and being able to create smart watchlists with multiple bookmarks. If you’re not sure if you’re ready to commit to the Pro version just yet but would like to try it then you can try it for free for a month by clicking this link, just make sure to cancel before the month ends if you don’t want to be charged https://www.tradingview.com/?offer_id=10&aff_id=25988

Happy Trading! 

Love From, Your Trading Coach x 

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