In this free live training session open to the public, I go through a whole range of topics that will help you make the most out of 2019.
Preparing for the year ahead is vital to your success and profitability. I go through my trading game plan for 2019, which takes a look at what trends, pairs, and volatility you can expect to see.
Going in with a plan of attack is going to amplify the three best trading setups that I highlighted in this webinar. I have put those thoughts in this article so you can refer back to this page whenever you need it.
Bookmark this page so you can find it easily in the future!
Trading Game Plan
This is different from your trading plan.
A trading game plan is made up of three parts that will help you get the most out of the Forex market.
- Assess the expected market conditions
- Plan on how to trade in those conditions
- Execute on your plan
Simple yet effective. Let’s take a quick look at all three, as they will help you in using the three trade setups to their fullest potential.
Expected Market Conditions in 2019
We have seen big lows in 2018, with pairs reaching lows that have not been hit for years.
Due to this, you can expect to see more trends in 2019. But what does this actually mean in regards to ALL pairs.
Well, it means we will see ranges.
Specifically, we will see ranges on cross pairs. I go over the explanation in detail in the webinar, which you can go straight to here.
You can see this reflected in the charts during 2018, and the opportunity speaks for itself. Expect to see more of these major pairs trending and cross-pairs ranging!
Plan for Trading these Market Conditions
Now we know what we can expect to see from the market, we should use setups that take advantage of these conditions.
Expect trends, so focus on trend following setups.
You can expect ranges, particularly on cross-pairs, so use setups that complement range trading.
Volatility in 2019 will also likely be lower. This means you will take on less risk through counter-trend trading. Safe counter-trend trading is another opportunity you should jump on!
However, because of the lower volatility, you can expect price to be slower at hitting your targets. So when trading in 2019, let your trades develop and shy away from exiting too early.
Lastly, part of our plan for trading in these market conditions is being aware of the political spectrum. This allows for no surprises, or at least a reduction in their impact.
U.S. re-election, Brexit, U.S. government shutdown – big events like these may increase volatility temporarily so you must keep these in your mind when trading.
Applying the Plan
So, we have a strong idea of what 2019 is going to throw at us. Now we need to look at how we will actually enact this plan.
What setups are going to be the best for the different types of market movement we will see?
Continuation trades are going to be your bread and butter for the major trends you see in 2019.
This includes pairs such as AUDUSD, EURUSD, GBPUSD. These setups are going to be the best on the Daily charts, but are also valid down to the 4 hour chart.
Continuations will only be valid on pairs that are trending strongly, and only when you are taking trades that are in the direction of the trend.
You should look to extend your target with continuations which is why most traders prefer continuations. As you are trading with the trend, there is a higher chance of extending your target.
You can look to move your stop loss to break even once price has hit the 2RR level. The most optimal entry will be on pullbacks so look to spot those forming!
Range bounces are valid on all pairs, but you will most likely see these appearing on the cross-pairs.
These are great to trade as they can be consistent and safe. Trading on the 4 hour chart up to the daily, you’ll likely find ranges of varying sizes that appear on multiple time frames throughout the year.
When you are looking to find ranges, there is a simple rule I apply to make it easier.
Look for two bounces on both ends of the range as confirmation that the range is active. You don’t want to jump in too early on a range that falls apart before it has even begun!
It’s important to note that ranges can have multiple boundaries. Sometimes you will see bounces from within the range, so don’t be put off by that.
Lastly, it is vital that you do not set targets beyond the limits of the range. This is the golden rule with setting your targets on ranges.
Counter Trend Reversals
Finally, our last best trading setup in 2019, the counter trend reversal. This is a long-time favourite of mine that should see some good action in 2019.
Due to the lower volatility expectancy of 2019, these will be safer to trade and will be a powerful weapon in your trading arsenal.
Valid through the 4 hour to the daily, you should look to trade these only on pairs that have a strong daily trend.
Once you have found these, you should look for signs of price stalling after these strong moves. Often you will find this at strong SR areas so it is important to keep your SR up-to-date.
As you are going against the trend, you want to keep your targets tight. This will be a strong test of your greed as a trader, so you may want to try demo trading these first.
Alongside a tight target, you will want to give your stop-loss some breathing room. Tight stop losses will result in some frustrating lost trades, from my own experience.
So there you have it – my three best trading setups for trading Forex in 2019.
It should be a great year to trade Forex and I am confident that with the right setups and analysis, you should see a profitable trading year ahead!