Nick's Forex Blog
Hey guys,
I was away Friday so I didn’t get a chance to post this until now but did anybody catch the two great MC trades I posted about in the analysis on Thursday? I caught the GBP/JPY 1hr trade as it formed a scouting party. It was an awesome trade!
I missed the USD/JPY set-up as I was looking out for a scouting party and it didn’t form.
How did you do on these trades? Leave a comment and let me know.
Hey Guys,
MC set-up on U/J I am not 100% sure if I will trade this one as it is getting a little late for trading over here. If I do trade this I will be looking for a scouting party set-up which you can read about in the previous post.
Here is a G/Y 1hr set-up usually these are reliable but I thought I would throw it up anyway.
Enjoy trading guys.
Over the past few months my trading has been evolving. I have started looking away from simple S+R line trading and looking more at candles. Don’t get me wrong S+R lines still make up a big part of my trading but they have taken a back seat to candle patterns.
This is because I have been delving into price action analysis. This is the analysis of the movement of price as it is happening. The major benefits of price action analysis are:
The main forms of price action analysis I am using are reversal trading and master candles (MCs).
I am already doing a few videos on reversal trading. I released the first last Friday and will release another tomorrow. So I thought I would do a few posts on master candle trading. I will also start doing MC analysis for some of the main pairs daily.
First let’s take a look at how I trade MCs. I will not go over the basics in this post as they are already covered in the master candle e-Book. Instead here I will discuss a more advanced technique. I have tested it extensively and it works amazingly well at filtering out some of the bad master candle trades.
This was contributed by forum users Samarkand, djcash, and Wombles.
Master candles tend to give a lot of false breaks especially on volatile JPY pairs such as g/j and e/j.
One thing you should look out for is Scouting Parties these are candles that break through the MC line, reverse, and close. Check out the example below.
Scouting Parties can cost you some serious pips. For this reason some traders do not enter on the first MC break. They wait for a Scouting Party to form and then place a limit order with a 5-10 pip buffer just beyond the bounds of the Scouting Party candle. This way they only enter the trade after the Scouting Party candle is broken.
As you see in the picture above. When the price broke the scouting party high it pushed through and it ended up being a +50 pip trade.
I will be doing a few more posts soon discussing some more awesome master candle techniques. As I said I will also be posting some master candle set-ups daily. So keep an eye out on the blog for master candle analysis.
Hey Guys,
If you like trading Master Candles you should check out the new Potential Master Candle Set-ups forum thread. In it I will be posting the latest master candle set-ups every morning (or at least as often as I can).
You can post set-ups too!
I think it will be a great way to share possible trade set-ups and make some pips.
Also join us in the free chatroom daily where we take Master Candle and other trade live each day. Join us and make some pips!
Hi Guys,
You may be thinking something like “Nick is giving away an indicators??? Since when does Nick use indicators?” well this is not really an indicator. It is just a cool little tool for MT4 and GFT that plots Master Candles for you. I have no other name for it so I just call it a Master Candle Indicator.
I certainly didn’t invent Master Candles, they have been around for a long time but I do love trading them. If you have no clue what Master Candles are you should have a read of the free Master Candles e-Book.
I came across this cool little indicator that basically detects Master Candle formations on your chart and throws up lines for you. It even rings an alarm when a new Master Candle is detected. I did not code this indicator and I am not sure who did exactly but it is very useful if you trade master candles. So here it is!
UPDATE: Styrker43 linked us to a GFT Dealbook version of this indicator. Pippery Slipples was nice enough to zip the GFT version and add a text file with instructions on installing it. So say thanks to both of them and enjoy!
If you like this post leave a comment please.
Hey Guys,
I am going to give stragglers a chance to enter so I will announce the 10 winners for a free copy at about 6pm-7pm US EST tonight.
Since I will be selling this I want to make sure everybody is happy with it. So I am releasing a fully detailed list in which I break down what will be in this course. The idea is to let me know if you’re happy with this or if you want more added. So here goes.
This new course will be HUGE and it will introduce several elements of my trading that are new. I have finally decided that I should introduce trend lines. Specifically trend line bounces and how they can be used in conjunction with candle patterns to makes heaps of pips. Also chart patterns and how to use them to make pips. This course will be big. I am going to try my best to pack it all into 8 hours of video. Let’s take a look at the structure of the course and you can tell me if you’re happy with it.
To be honest, this section will be very short and will go over what most of you have already learned in the free e-Books. However, it has to be included as I want this course to go from the very basics to the advanced stuff. Even if you know the basics you should go over this section. I have already recorded this section and it is roughly 1 hour long. Below are the headings for this section. I will not bother explaining them as they’re pretty self explanatory.
1. What Candlestick Analysis Is
2. Uses of Candlestick Analysis
3. Why it Works
4. How to View The Markets (Bulls vs Bears)
5. Transitions of Power
1. Spotting Indecision Candles and Grouping Patterns
This is where it gets interesting. Here I describe exactly what an indecision candle is and the best types of indecision candles and grouping patterns. You may have read this stuff before but in the course I plan to take this to another level.
2. Advanced Candle Reading
How do you know when a reversal is a reversal? This is the first step to having a full understanding of candle patterns.
3. Higher highs/lower lows.
This term is thrown around a lot and it seems very basic. Well it isn’t! Here I explain in a lot of detail how to benefit from spotting higher highs or lower lows. A lot of the times understanding this turns a 50 pip trade into a 100 pip trade for me. Or turns a trade in which I could have lost 70 pips into a break even trade.
4. Extending Good Trades and Closing Bad Trades Early.
Here I talk about how to use what you have learned so far to improve your overall trading.
One of the most commonly spouted lines in Forex is “let your good trades run and close your bad trades early…….” Everybody says it but nobody explains how. Well I do.
I explain in detail how to recognize a good trade and STAY IN THE MARKET. And how to recognize a bad trade and run for the hills. This is the first major step towards becoming a very profitable trader.
1. Trading Reversal Trades
The basic reversal trade forms randomly on a chart. If traded right it can be a consistent winner. I explain how to spot reversals and more importantly CONFIRM reversals. This is explained in extreme detail with plenty of examples on real charts.
2. Trading Ugly Reversals
Not all reversals are beautiful. I explain how to spot reversals most traders miss and how to successfully trade them.
1. Placing GOOD trend lines and S+R Lines
Ok, placing trend lines and S+R lines is not exactly mind blowing. However, it leads to the mind blowing stuff.
2. Trading Trend Line Bounces
This is where it gets really interesting. Here I combine everything you learned about candles and I explain how to use them to trade trend line bounces. This will be mind blowing.
3. Trading S+R Bounces
This is even more astounding. How to trade S+R line bounces is explained. This is some very advanced stuff I have never discussed before. It pretty much involves using everything together.
Advanced price action analysis + Candle patterns + Support and Resistance = PIPS!
4. Spotting Great Chart Patterns
Again it is not mind blowing but it leads directly to the mind blowing stuff.
5. Putting It All Together
This is what it is all about. Using all those forms of analysis together. Here you will learn how to trade bounces, continuations and breaks. This is what price action analysis is all about and this is the most important section.
I plan to shoot several hours of live trade videos over the coming 2 months. I want to have at least 20 live trades for you to see. In the end, I want to have roughly 8 hours or so of live trade videos. However, I cannot do this in the 2 month deadline for the course release. I plan to have at least 2-4 hours of live trade videos by then. I will add more as time progresses.
Master Candles
As a bit of an extra I will discuss master candles in detail.
Hey Guys,
I was just wondering if anybody was interested in a new video course on advanced price action candle stick analysis?
It seems to be a popular subject so I am considering putting together a 4-5 hour long course explaining it in extreme detail. Of course this like the other Forex4Noobs courses would be sold. It is 4-5 hours of video and it would take me 1-2 months of full time work to complete it. So obviously, even though I try to keep everything free, for something like that I would have to charge. In the course would discuss things like:
Basics
Intermediate
Advanced
This course would not to be a method in itself. It will be a way to fully learn and understand how the market works and how to best make pips from it. It would be stuff that can be applied to any method.
To be honest I am not sure if this interests anyone if it does I will do the video course. Let me know if you want a video course like this by commenting below.
Hope you caught the 155.70 scalp line trade on GBP/JPY that I blogged about at the start of the week. However, there were two more trades this week that together made a minimum of 100 pips.
If you have read the free e-Book then you should know how to trade reversals. I traded this one live, in the chat room. It was a great little trade and it made me 50 pips. Let’s dissect it for all you newbies who haven’t done much NickB reversal trading. I won’t explain the basics as you can find them in the free eBook:
As you can see, we had a very strong bullish move that broke our scalp line and made us 50 pips. As soon as the rallying bullish candle closed, we had a reversal candle close and bounce off the high of a previous candle. The next candle was a reversal candle too. This looked like a very strong possible reversal for a few reasons:
1. The reversal candle did not make a new high past the previous candle. It is always good when the reversal candles does not move higher than the previous candle (or lower if it’s a bullish reversal).
2. The second reversal candle closed with a bearish body and again did not move higher than the previous candle.
The lower highs suggested to me that the bulls were losing power. The bearish body of the second reversal candle came close to confirming that loss of power.
The next step was to pick a line to trigger the trade. This was easy as I picked the low of the first reversal candle. I always look for a minor (sometimes a very minor) S+R line as a trigger. This just confirms in my mind that it is a real reversal. The fact that the bears manage to break this minor lines tells me that they really have taken control. This trade was quite easy and it was over in 20 min.
Entry was 158.25 and, because it was triggered in the slow moving Asian session, I made my target 50 pips. I always lower my targets in the Asian session. Reversal trades taken in the London session I target up to 100 pips.
This one was really easy and, even though I did not blog, it you should have got this one. The 159.20 line was a yearly, high scalp line just like the 155.70 line we had earlier in the week. The 159.20 line was stronger though, as it had two bounces. Check it out:
The break of this line created a very nice bullish rally. I missed this trade since I was asleep, but I would have targeted 50 pips on this one. Just a simple line break. I have shown how to trade these in the free eBook a dozen times.
You may have noticed this was also a master candle break on the 1hr and 4hr charts. If you don’t know about master candles read about them in my free Master Candle eBook.
This was a very easy trade, yearly high + scalp line + master candle. If you didn’t see this line YOU NEED PRACTICE!
If you caught this trade leave a comment on the blog!
Hello Guys,
To get the free e-Book simply click the link below:
Hey guys,
It seems like there is a lot of confusion over master candles. People seem to be using them as some sort of standalone method and jumping in blindly on line breaks. Like i said master candles are just an addition to the NickB method and they should be used together with scalp lines, candle patterns and price action otherwise they will not work effectively.
Anyway to clarify I have written a free 15 page e-Book that explains in detail the role of master candles in my trading. It is being edited and should be out sometime in the next 1-3 days.