Dear Mr. Richard Krivo,

My names are Fredrick Adewale Da-Costa. I was living in the United Kingdom and I am now back home in Nigeria. I want to pay for the FX POWER COURSE (19.99USD), but having problems making the payment online. I have bank accounts with UK Banks in which I want to use to make the payments using my Mastercard.

Please, do assist on how to go about this.

I look forward to be your student soon.

Kind Regards,

Fredrick Adewale Da-costa MCIM

Please email instructor@fxpowercourse.com and let us know what issues you were having and we can try to get you set up.

__________________
Enroll in our online FX Power Course today and get personalized instruction from our team of expert traders 24 hours a day. We have taught over 25,000 students and in just eight lessons, we will teach you the fundamentals of Forex trading. Click here to get more information

Student’s Question:

The distance between low point #1 & #2 is about 3 weeks and between #1 & #3 is about 4 months. I'm not sure when exactly to enter. Do you wait until the second bottom is formed and then enter as it rises?



Power Course Instructor’s Response:

Essentially yes...

Wait until the support level is tested for the second time and then take a long position with a stop just below the lowest level at which the pair traded in the pattern.

Take a look at the chart below for a visual explanation.

This particular chart offers, potentially, two double bottom patterns...one of a smaller scale and one of a larger scale...the smaller within the larger. Again, refer to the chart below for a visual.

A textbook double bottom will form the capital letter "W" with its price action. Note the two "W" formations on the chart below...green representing the smaller double bottom pattern while brown represents the larger.

Attached Thumbnails

 

__________________
Enroll in our online FX Power Course today and get personalized instruction from our team of expert traders 24 hours a day. We have taught over 25,000 students and in just eight lessons, we will teach you the fundamentals of Forex trading. Click here to get more information.

Student’s question:

I have been through the Range Trading Webinar and found it quite helpful for trading the range itself. I am still not completely clear, however, on how to trade a pair when it breaks out of the range. Any thoughts would be appreciated…thanks in advance.


Power Course Instructor’s Response:

Good question…

Take a look at the chart below for a visual on this and take note of the “zones of support and resistance”. As long as the pair trades within those zones (meaning that a candle does not close outside those zones) a breakout from the range has not occurred.

If a candle closes above the zone of resistance, roughly above the green “buy” on the chart, a long position would be taken with a stop below the zone of resistance (as shown) within the range.

On the chart posted, however, the breakout occurred to the downside when the first candle closed below the zone of support. In this instance, the short position would be taken at the open of the next candle after the first candle that closes below the zone of support. The stop would be above the zone of support (as shown) and inside the range.

Attached Thumbnails

 

__________________
Enroll in our online FX Power Course today and get personalized instruction from our team of expert traders 24 hours a day. We have taught over 25,000 students and in just eight lessons, we will teach you the fundamentals of Forex trading. Click here to get more information.

Student’s Question:

When I hear about strategies for placing a stop, I have come across something called the “Two Day Low Stop”. Would you provide some insight on that?

Thanks


Power Course Instructor’s Response:

Sure…

Take a look at the chart below for a visual. In this example a long position was taken. On this Daily chart, the trader would count back two candles from the currently open candle and place the stop several pips below the lowest point to which that candle traded. As you can see from this example, when the current open candle closes, the trader will move one candle to the right and adjust the stop up accordingly. This process can continue until a profit target (limit) is hit or until price action retraces to the level of the advancing stop.

As you can see, the method functions best in a trending market.

Attached Thumbnails

 

__________________
Enroll in our online FX Power Course today and get personalized instruction from our team of expert traders 24 hours a day. We have taught over 25,000 students and in just eight lessons, we will teach you the fundamentals of Forex trading. Click here to get more information.

Student’s Question:

In the Range Trading Webinar, a multiple lot strategy is mentioned where one lot can be closed to lock in profit while the other lot can be left open for the potential of a greater gain. Could you show how that would work with a chart?

Appreciate it.



Power Course Instructor’s Response:

Good question…

Take a look at the chart below…

In a range we want to buy at support. So at the green support zone, we would buy two (multiple) lots and set our stop at the level of the yellow line…below the lowest wick that penetrated support.

Then, at approximately half way through the range, we would close out (sell) one of the lots, thereby locking in that amount of profit and move the stop to breakeven on the remaining lot.

We would then let the remaining second lot trade up to resistance (the top of the range) and close it out at that level or just before. That would be the ideal scenario. However, if the trade does not make to the top of the range and simply retraces all the way back down to support, we would be stopped out with a breakeven stop…in other words, no loss/no gain. But we would still have the profit from closing out the first position at the halfway point.

This strategy allows a trader to lock in at least a moderate level of profit (assuming of course that the trade has moved in their favor to a certain degree) even if the trade does not make it all the way to the desired target level or limit.

Attached Thumbnails

 

__________________
Enroll in our online FX Power Course today and get personalized instruction from our team of expert traders 24 hours a day. We have taught over 25,000 students and in just eight lessons, we will teach you the fundamentals of Forex trading. Click here to get more information.

Hi Powercourse Instructor,
I read your prev. comments on WBottom/Top formation. I would like to know how many candlesticks should be between both legs to qualify them.

thanks

Siva

The interpretation of candlestick charts has often been referred to as being more of an art than a science. As such, there is not a hard and fast number of candlesticks that need to occur between the two legs. More is bettter than less and two candles right next to each other would not qualify.

The process/pattern that needs to occur for a valid pattern is price action needs to touch support for a bottom or resistance for a top, trade away from that level for a time and then come back and test that level again and respect it. Ideally, a longer period of time between the two levels would lend more validity than a shorter period of time. The precise length of time or number of candles is debatable.

Take a look at the example Daily chart below...

Note how the double top pattern forms a capital letter "M". In a double bottom pattern we would be able to see a capital letter "W".

Also, a textbook double top pattern will take place at a new high on the chart while a textbook double bottom will take place a new low.


Hope that helps....

Attached Thumbnails

 

__________________
Enroll in our online FX Power Course today and get personalized instruction from our team of expert traders 24 hours a day. We have taught over 25,000 students and in just eight lessons, we will teach you the fundamentals of Forex trading. Click here to get more information.

thanks a lot Richard.

Siva

My pleasure...

__________________
Enroll in our online FX Power Course today and get personalized instruction from our team of expert traders 24 hours a day. We have taught over 25,000 students and in just eight lessons, we will teach you the fundamentals of Forex trading. Click here to get more information.

Richard,
You mention on your range charts webinar, how to get a 4 hour chart on screen by typing H4 in the 'time' drop down menu of charts. It just does not seem to work for me. Am I doing something wrong:
I go to 'charts' on the toolbar at the top of the page on my FXCM Trading Station bearing in mind I only have a practice account. The drop down menu appears. I go to 'open chart' and the time menu drops down. I put my cursor over the time menu and type H4 however, the screen does not respond and I get a dull pinging sound when I type the keys??
Any thoughts would be grateful as you obviously reccommend using this chart alot.
Regards,
John

Sorry that you are having that experience, John.

It sounds as though you are doing the right thing. The only thing I would mention would be to make certain to left click in the dropdown menu box prior to typing in h4 or h2. Other than that, what you are doing sounds fine.

Take a look at the chart below...

Attached Thumbnails

 

__________________
Enroll in our online FX Power Course today and get personalized instruction from our team of expert traders 24 hours a day. We have taught over 25,000 students and in just eight lessons, we will teach you the fundamentals of Forex trading. Click here to get more information.

So simple.
Left Click. Why did I not Left Click before I typed???
Thank you for solving days of frustration.

John

You are welcome...

__________________
Enroll in our online FX Power Course today and get personalized instruction from our team of expert traders 24 hours a day. We have taught over 25,000 students and in just eight lessons, we will teach you the fundamentals of Forex trading. Click here to get more information.

Student’s Question:

I am still on not clear on how old support becomes new resistance…or vice versa. Help!


Power Course Instructor’s Response:

Take a look at the chart below. The green line is a trendline showing support which has been in place for quite some time. However, at the place on the chart where you see the black arrow pointing down, price action breaks through and several candles close below what was the old support line. That line is support no longer since price has broken through it and no longer respects that line as support.

Now, after numerous candles have closed below old support, price action comes back up to test the former support line which now represents new resistance. Price action will test the new resistance line to see if it holds.

The opposite would be true if we were in a downtrend and we had a resistance line above price action which kept being tested from below. It would represent resistance and when it was broken through by price action, it would then be new support.

Attached Thumbnails

 

__________________
Enroll in our online FX Power Course today and get personalized instruction from our team of expert traders 24 hours a day. We have taught over 25,000 students and in just eight lessons, we will teach you the fundamentals of Forex trading. Click here to get more information.