Higher timeframe price patterns are typically easier to trade because you have the force of the higher timeframe fueling a move on the lower timeframe.
Higher Timeframe Price Patterns – EURJPY
In this video, Gail Mercer, founder of TradersHelpDesk, shows you the higher timeframe (240-minute chart) of the EURJPY, which is forming a price pattern to the downside. Gail goes down to a 15-minute chart, waits for the retracement and utilizes an OTM binary option (using Nadex Binary Options) to enter a short position. Although Gail has a profit target set at $10, with 2 minutes remaining in the trade, she deletes the order because price was most likely to expire in her favor.
The risk per contract was $38 and the profit was $62 per contract.
In other words, the worst case scenario was a loss of $38 per contract. The best case scenario was a profit of $62 per contract.
The risk to reward on this trade was $1 risk for $1.63 in reward. Price patterns are also one of the focus concepts in the online training in the TradersHelpDesk video collection that is included with all packages. TradersHelpDesk currently offers two packages — Create Your Own and Silver Package. Both the Create Your Own Package and Silver Package are on special this week and include the indicators, documentation, and online video training. Plus, if you are new, I even connect and install the indicators for you!