How to Scan Through Your Charts Quickly

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#435: How to Scan Through Your Charts Quickly

In this video:

00:26 – Today’s Topics

01:00 – How to quickly scan through your charts

01:55 – A candle pattern off a Bollinger band

03:03 – A Continuation trade

04:31 – When to scan your charts

05:14 – Who would you suggest as a broker?

05:55 – Register for our Black Friday Sale (it’s 1 week early on Friday 19th November)

07:07 – Don’t forget to share this video and podcast

I'm going to share with you some tricks and secrets of how to scan through your charts really quickly, to save yourself time on the change of a candle. Let's talk about that and more, right now.

Hey, forex traders, it's Andrew Mitchem here. I'm the owner of the Forex Trading Coach.

Today’s Topics

And I'm going to explain to you how you can look through your charts really quickly and to identify potential new trade setups. More about that shortly.

At the end of the video I'm also going to explain about our upcoming Black Friday sale, which we've got in a few weeks time. So if you've been looking at joining us, that could be a great opportunity for you to save a fortune on joining us with the crazy low prices that we'll be offering for Black Friday. More about that shortly though. So back to the trading.

How to quickly scan through your charts

So a question that a lot of people have is they say, "How can you scan through charts really quickly and identify high probability trade setups?"

So a question like that came through from Mark this week and I said, look, I'd cover that on a video and podcast for him. And for me, it's quite simple, the market can either move up, down or sideways. It cannot really do anything else. And with my strategy, it's also relatively simple. So we're either looking for reversal trades or continuation trades. And that's it really. It really is as simple as that. There's two different ways of trading. And to help me identify what part of the chart the price is in right now, and whether it's likely to be a reversal or a continuation trade, I use Bollinger Bands. Standard Bollinger Bands have an upper band, a middle band and a lower band.

A candle pattern off a Bollinger band

And if I see a candle pattern and setup that I'm looking for, that's coming off either the upper band or the lower band, then for me, that's a reversal signal.

And what I mean by that is let's say the price is near the upper Bollinger Band and you've had a good, strong up trend, and then you see the reversal signal. So like a bearish outside bar or engulfing candle, and it looks like the price is then going to drop. If it comes off that upper Bollinger Band area, after a prior trend, then quite likely the price is going to reverse. The opposite of that being if you've had a good, strong down trend and then you see a good strong bullish candle off the bottom Bollinger Band, that's a likely reversal. Now, not every time you get that, it's going to be a trade setup. We're looking for other things like prior exhaustion bounces a round numbers, pivot points, trendline breaks, all the other things that we look for. But just in terms of identifying what part of the chart you're in right now, a Bollinger Band can be an extremely powerful and useful, easy to see tool. So, really scanning through charts instantly, that will help you.

A Continuation trade

If, for example, you see a pullback from the upper band to the middle band, and then a bullish signal, that is a continuation trade. Likewise, if you see a pullback from the bottom Bollinger Band back towards the middle Bollinger Band, and then the bearish candle, that is a likely continuation back down again. So reversals and continuations are great ways of trading the market. It means you only need to look on the close of a candle.