Risk to reward ratio and win rate. No need to win all the time

risk-to-reward-ratio

Most new traders think that trading is about winning trades, but that is not the case. Win rate means relatively little in trading. There is something much more important that determines whether you’re a profitable trader in the long run. You can be profitable even if you only win 50% of your trades.  That means you can …

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My reversal strategy. Profit when price changes direction

reversal-strategy

Time to get real! Everything you have learned about price action, trends, candlesticks and support and resistance will now come together in an actual trading strategy. So far I’ve shown you the three basic components of price action trading: Candlesticks Trends Support and resistance How do we bring these elements together in a trading strategy and more importantly; what …

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Indecision candles. Spotting indecisiveness in the market

Indecision candles

If you’ve been reading my previous posts, you should now know a lot more about price action and candlesticks. I briefly introduced you to the indecision candles, which announce indecisiveness in the market. In this post I’ll elaborate on these indecision candles and how they can help you as a trader looking for setups. What is indecision? Indecision literally …

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Candles are price. Nothing more and nothing less

candles are price

If you followed the previous articles, I hope that you now realize that candlesticks are not just colored bars or patterns with exotic names such as Inverted Hammer or Shooting Star. Candles are price. A super detailed representation of what price has recently done and what price is doing at the moment. Nothing more and nothing less. So …

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