moonchild
VIP Contributor
A probability trade is a trade that has a high tendency of winning, in the span of your trading life, you will take a lot of trades and most of these trades are low probabilty, that is why you lose, but if you learn how to take high probability trades, you will be able to make more with less trades.
The first step to spotting high probability trades is to identify the trend whether it is an uptrend or downtrend. this can be done only by looking at the price charts and analyzing the movement of the currency pair over a period of time, you should check different timeframes from monthly to the timeframe you trade with and in this case you should use technical indicators such as moving averages, MACD, and RSI to identify potential trading opportunities. these indicators can help you to spot trends, momentum which is one of the core reasons for a trade to be high probability trade.
Look for support and resistance levels which are basically areas on the chart where the price has previously bounced or reversed. these levels can be used to identify potential trading opportunities and at last use price action to determine the next move, this include candlestick patterns and indicator crossing.
The first step to spotting high probability trades is to identify the trend whether it is an uptrend or downtrend. this can be done only by looking at the price charts and analyzing the movement of the currency pair over a period of time, you should check different timeframes from monthly to the timeframe you trade with and in this case you should use technical indicators such as moving averages, MACD, and RSI to identify potential trading opportunities. these indicators can help you to spot trends, momentum which is one of the core reasons for a trade to be high probability trade.
Look for support and resistance levels which are basically areas on the chart where the price has previously bounced or reversed. these levels can be used to identify potential trading opportunities and at last use price action to determine the next move, this include candlestick patterns and indicator crossing.
