by Johan Kriek (firstname.lastname@example.org)
Below follows a three-step Probability Study on the EUR/USD
1) Identify the Major trend – Daily chart
2) Identify the Current trend – 4 hour chart
3) Identify the 60minute trend - 1 hour chart
* the 60 minute trend will depict the direction of highest probability. This will be your context for today’s trading
Identify the Major
Identify the Current
Identify the 60 minute trend
Now you can see the the 60 minute trend is bullish. Therefore the direction of highest probability is bullish for today and it will remain this way until the 60minute trend support line is violated and confirmed.
I will continue by adding my fishing stochastic to the 1 hour chart to see if I have a trading condition or not. I will then execute my own personal trading entry system in the direction of highest probability and ONLY when my stochastic is pointing in the direction of highest probability as well.
I am presenting yet another FREE lesson on the Probability Study technique on Friday the 13th of November. You can book yourself a seat here: http://www.fxinstructor.com/eng/courses/probability.php
If you are patient enough to wait for a trading condition to develop within the direction of highest probability, you place yourself in such a great position to minimize your drawdown. If you can keep your drawdown as low as possible, you can expose more for the same amount of risk and make more money the sensible way
See you on Friday and I will tell you more
Enjoy your day