KOJO FOREX
This YouTube script discusses the importance of knowing when to buy and sell in trading, especially in terms of technical analysis and candlestick patterns. The script also provides an example using USD Swiss Franc to explain entry points and market structure.
When to Buy and When to Sell: The Ultimate Guide
Introduction
What is up guys? In this video, I’m going to show you exactly when to buy and then when to sell. My name is Kaju Forest, aka GBP Emperor, AK Emperor of Blues. So without wasting my time, let’s get right into the video. If you’ve been following my videos for a long time, you know that I’ve been teaching so many strategy videos, even when we talk about price action, right? The sniper entry video where I teach you how to catch the highs, how to catch the lows, trendline strategy, double bottom, double top, Fibonacci, and chart patterns. But one thing that has really been lacking in most of my videos is exactly where to teach the trader when to buy and then when to sell. When I look out on YouTube as well, I’ve seen so many videos trying to explain when to buy and when to sell, but none of them actually does justice to the way that I’m going to be doing it for you guys. So here’s a little secret to the market that I’m going to really open to you. When you open your eyes, take your time, and briefly watch through the sequence of which I’m going to be explaining things to you, it’s going to change the whole game for you. So if you really do pay attention, grab a notepad and a pen, and enjoy these important points as I go ahead.
Understanding the Market
It’s pretty easy for any trader to learn technical analysis, how to draw trendlines, identify chart patterns, and more. However, the most difficult point in the market is when a trader has to decide when to exactly buy and when to exactly sell. It can be a daunting process. Most traders learn how to draw the technicals, but the moment they get onto the market itself, they get all over the place because they don’t know exactly when to jump in or exactly when to sell. Even with the ones that do try, they often take huge losses or end up in maximum drawdown lasting for several hours or days before the trade even materializes. But in this video, I’m going to show you a new dimension of an entry point that will change the game for you. If you follow these systematic rules religiously, you’re on the right path to success.
Using Candlestick Patterns for Technical Analysis
If you know me, you know that I particularly use candlestick patterns as part of my technical analysis. Candlestick analysis is crucial for understanding price action. If you’re a price action trader and you don’t really understand candlesticks, then you’re probably not trading price action. Price action is all about understanding the movements of price, and candles represent price action. So, to truly understand price action, you need to understand candlestick patterns. In this video, I’m going to break down real scenarios of when to buy and when to sell based on candlestick analysis.
Example: USD Swiss Franc
Let’s look at an example. Currently, I’m looking at USD Swiss Franc, and we can clearly see that throughout the whole of last week, this pair was selling off. If you look at my charts, you can see the vertical lines indicating the market movement for the past two weeks. Starting from the red line, the market started trading down. As a swing trader, I catch entries from the very top or very bottom of a new swing point. So, if I were in this trade, I would have caught the move within this range and expected the market to come all the way down. Consequently, for the whole of last week, I wouldn’t have participated in buying USD Swiss Franc.
Understanding Market Structure
To determine the entry point, we need to analyze the market structure. I mark the highs and lows in the market using horizontal rail lines. When the market makes a series of higher highs and higher lows before a trend change, I look for two possibilities. Either the market will make a lower high and a lower low, or it will create a double top or equal highs region before changing direction. In the case of USD Swiss Franc, the previous high would be our marker for entry. We observe that the market started making lower lows. Now, someone might ask why I’m not catching the initial drop. The reason is that at a turning point, the market will either make an equal high and come all the way down or make a lower high and continue down to a lower low. Based on this analysis, I wouldn’t be interested in catching the initial drop, expecting a potential return to the previous high before coming down again. This kind of understanding sets us apart from other traders.
Conclusion
In this video, we’ve discussed the importance of knowing when to buy and when to sell in the market. Technical analysis is essential, but understanding entry and exit points is crucial for success. By analyzing candlestick patterns and market structure, you can determine the right time to enter a trade. Remember to follow the systematic rules and practice patience in the market. These insights will change the game for you. So go ahead, grab your notepad and pen, and start implementing these strategies. Good luck and happy trading!
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