Hey there,

Hope you’re well.

Let’s take a recap of what we have accomplished thus far…

First… we took a look at the candle formations, commonly known as “Japanese Candles”… and how we can identify the market sentiment to supply us with the overall feeling of the currency pair as to which direction it will proceed towards; up or down.

Second… we also took a look at the Heiken Ashi Candle formations… we know now that the traditional Japanese Candles only show current movement and the market sentiment per candle or group of candles.

As much as an ideal solution, to many will become confused or make a mistake, overtime and misjudge the analysis.

I refer this to as “Candle Blindness“.

With such candle formations, we have to take them with a pinch of salt; for example:

We need to be aware of the overall situation of the trend and if it’s been overbought or oversold to create the divergence or convergences that arise from time to time
to give us the entries we’ve been so patient for.

PAUSE: Here’s a video to show you what I mean, it’s about 10 minutes long…

CONTINUED…

If we ignore this notion that Candle Formations are not 100% perfect, your trades will not be perfect either.

I try to teach my students the art of patience, or in other words, wait for your pay check…

Consider each trade as a pay check, but one that is guaranteed… not a trade where one clocks in at 9am and clocks out at 5pm…

What I mean by this is, 9-5 is not something that one would apply all their hard energy on…

Example…

If your Boss asked you to work during a 9-5 and do any trade you “felt” was a right trade to enter in on, and your commission was to be $100, regardless of how
much you made your Boss…

Would you prefer that type of pay?

Just so you know, if you’re not already aware, $100 per day, for 5 days a week is a LOT of money for many people who reside in the USA…

For some I can predict that this would be also considered as “guaranteed” income, it’s written in stone… your Boss has just signed you a Check, that’s waiting for you as you clock out on Friday, for $100 a day…

NICE…

HOWEVER, what if you were to be put into a position where you were asked to check your PC every chance you get… live your normal day life, do the things you wanted to do, but you had to at least devote 2 hours a day to making your Boss’s company money…

And they’ll pay you 30% of what you make…

(that’s kinda what we’re doing)

OK, so now I would be thinking, two hours a day, minimum.

And the Boss says “I’ll pay you 30% per positive trade and nothing on any losses… your total per trade will fluctuate based on your performance… We’ll start you out at 30%, should you have more than 2 losses in any consecutive week, your commission will drop by 7.5%…”

What would you choose?

$500 per week, or $5,000 per week with possibility of variable income?

Your answer should be to take on the chance to earn based on what you make, and not $100 a day regardless, as appealing as it sounds…

Take my word for it… making $500 a week is nothing to write home about…

Making $1,000.00 a day, well, that’s another matter entirely, wouldn’t you agree.

This is where one tunes in on their patience to wait for that guaranteed income that would pay more than $500 a week.

Before we can reach this tidy sum of $1,000 a day, we need to understand that some days you may not even have a trade opportunity to go after… some days you will, and on that note, some days will return you $1,000 or more…

Some trading weeks will net you $5,000 even up to $20,000.00 per week.

Imagine getting 30% of that each week…

$1,500 to $6,000 per week sure does sound a lot better than $500 per week wouldn’t you agree?

So, baby steps first…

Study the candle formations…

Then study the Heiken Ashi Custom Indicator…

In case you’re not familiar with Candle formations here’s a video I’ve done for you that took a while to put together…

This information is also freely available online to study from… I hope the video helps aid the learning process faster in the hopes you’ll get started as soon as you are able.

click below to view the video…

Candle formations: Hammers, bearish engulfing patterns, rising stars, Video

Once again, thank you for continuing to read the blog and I trust these videos thus far are helping…

IF you’re already familiar with forex, some of these videos may be a little boring…

However, if you continue to remain a reader / subscriber, more advance techniques will be shown…

I hope this is ok, I would prefer to take everyone up at one page at a time until we are all on the same page…

Wishing you all the very best,

And happy, profitable trading

Loz

Looking for the ONLY Indicator to Produce 100% Wins
http://UltimateGoldenCross.com

Need a Forex Mentor?
http://forexsignalmentor.com/

Tagged as: bearish divergence, day trading, imacd, indicators, technical analysis