Traders often ask me for tips on how to improve their winning percentage in Forex trading. It would be impossible to address all of them in a single short article. There are literally hundreds of tips that I can give you. I'll focus on one filter that I incorporate in every single trading system that I develop. In fact, if you use this tip in your Forex trading, any trading system that you use should experience an improved winning percentage. This tip is so simple that many of you won't believe it, yet it is one of the most powerful filters that I use in my own trading.
I never make a trading decision based on a spiky candle, unless very special conditions are met such as a reversal candle or an inside bar. By spiky candle, I mean that the shadows, or wicks of the candle make up more than 50% of the overall size of the candle. To clarify that, if a candle is 100 pips from the high to the low, I want the real body of the candle to be at least 51 pips. I know this sounds over-simple, but trading isn't rocket science. Each candle is the graphic representation of all buying and selling that took place in that session. When a candle has long shadows (wicks), it indicates that there was a lot of indecision in the market. I'm not interested in making a trading decision when the market is undecided.
Forex Trading Kurse
By a trading decision, I mean buy or sell. Opening or closing a position is, by definition, buying and selling. If one of my trading systems gives me a signal to buy, I look at the candle that just closed. Even if the rest of the system criteria are met, if that candle is spiky, I will walk away from that trade and never look back. Likewise, if I am currently in a trade and I get a signal to close it, if the most recently closed candle is spiky, I will remain in that trade unless the spiky candle meets the criteria of a reversal pattern.
How to Increase Your Winning Forex Trade Percentage - My Top Tip For Increased Probability Trades
