Counter-Trend Scalping Method (CTSM) Basics - TRADE EXECUTION

VISIT: http://WWW.4XEDGE.COM/LEARN to learn our Counter-Trend Scalping Method *****GET 25% FOR THE LIFETIME OF YOUR ACCOUNT, USE COUPON CODE: youtube_25%off Video Transcript: By this point, you should have watched all the Currency Barometer Basics videos, X Scalper Basics videos and the Market Conditions video. This video will explain how to combine everything that you’ve learned and explain how to find a trade. When to open a trade? Pay attention to the Short Term Currency Barometer Histogram throughout the day. As soon as you notice the disturbance on the histogram, you can start preparing for a possible trade. Let’s watch this GBPJPY trade from our time-lapse recording. Here is what you need to do in this particular order: 1. Check a Forex economic calendar for possible news events and follow the “30 minute/60 minute” rule for that particular currency. In addition, check for unscheduled news event. 2. In Short Term Barometer Histogram, determine the two most extended lines going in the opposite directions, If these two make up a currency pair, you have a potential pair for trading, if not, then find another two lines that make up a currency pair. At least one of the line should be over-extended meaning, above 75 or below 25 on the Histogram. 3. Check the 1 minute ATR for the currency pair that you are watching. The 1 minute ATR should be greater than 2, but less than 9 pips. If not, go back to Short Term Barometer Histogram and find another pair of lines. 4. Use X Scalper for final confirmation. Wait for the aqua blue bar of that currency pair to get to the solid green or red zone. If the purple bar of the same currency pair extends to even the light green or light red zone, wait for one of the middle 3 bars to hit the dark green or dark red zone for final confirmation. Open a counter-trend trade in your Metatrader: if in X-Scalper, the aqua blue bar is in the dark green zone open a SELL trade, if it’s in the dark red zone, open a BUY trade. Then set a StopLoss 30 pips from the price the trade was opened. PLEASE NOTE: As soon as you get 6 or more positive pips, you should move the Stop Loss to the Break Even level. This is a safety measure to save you from bad trades. When to close a trade? Whenever a trade is open, you should monitor everything you’ve used to confirm/open the trade. Here are the most likely scenarios how a trade might come to an end: 1. In X Scalper, if the aqua blue bar retraces to the 50 level and starts to extend rapidly in the opposite direction, you should close the trade immediately. This is a sure sign that the retracement action is exhausted. Do not wait for the aqua blue bar to over-extend in the opposite direction. This is how our sample GBPJPY trade ended. 2. If the trade takes more than an hour and the market calms down, meaning the 1 minutes ATR drops below 2 pips, you should close the trade to avoid interference from the incoming news event. PLEASE NOTE: It’s OK to close a trade for a small loss in this scenario. It’s better to lose a few pips in a controlled market, than lose a lot more when the market spikes around news. 3. In case that the price-action suddenly went against you 10 – 15 pips, wait for the market to calm down and close the trade as soon as it reaches the opening price. Again, It’s OK to close a trade for a small loss in this scenario. You will get better at timing your entries with practice. 4. If the price action is about to hit a pivot level and you’ve already made a profit of 10 pips or more, close the trade at the pivot level to lock in profits. This also applied to our GBPJPY sample trade. In case that you have not yet made at least 10 pips of profit, wait for the second market push that will go past the pivot line. In that case, the next pivot level is your most likely target. Now that you know the basic rules of this trading method, you should practice by watching our time-lapse videos in the Practice section. Just write down the price, time and currency pair when you spot a possible trade and compare it with our results later. Also, watch our live trade examples with instructions for every trade in our Improve section. We will post them regularly, so don’t forget to check this section often!