You can catch 50+ pips a day on any pair using this strategy.
I call this daily liquidation cycle the "Chaos pattern".
The reasoning behind this name is to try to put into perspective the feeling when trading this pattern on a daily basis. The most interesting fact is that wether you know this pattern exists or not, you lie subject to it's psychological manipulation.
My goal here at FOREXIA is to crack the code and help you understand the reasoning behind the chaos.
A student of mine, James, put this into perfect words:
"At last the seemingly haphazard patterns on charts make intelligent sense."
Characteristics of the chaos pattern
In order to understand how we can extract 50+ pips a day from any pair in the Forex market, we first need to understand market structure and reverse price action.
The chaos pattern occurs in a vicious cycle every single day on every single pair.
Similar to a snowflake, the chaos pattern is also a unique fingerprint which the market creates on a daily basis. While the structure stays the same, the overall price action is always unique.
The chaos pattern in Forex keeps repeating because of three main trading sessions that happen at certain parts of the day, just like clockwork.
Before I show you how to make money from this chaos pattern cycle, let's first understand how it all works!
The 3 Main Forex Sessions
The 3 main sessions that I personally keep in mind have very specific characteristics.
#1. Asian Session is the session which sets the scene for the day. The characteristic of Asian session is consolidation. If the consolidation during Asian session is not clear, choose a different pair.
#2. London Session is characterized as the breakout session. Where price breaks out of the Asian session consolidation range.
#3. New York Session is characterized as the reversal session. The reversal of price against the breakout of London session.
The repetition of these 3 main sessions with these characteristics is what makes the entire Forex market possible.
Using the knowledge of the characteristics for each session we can see that the optimal trading sessions are London Session and New York Session open. During these two sessions is when we can expect the most volatility and potential for profits.
How to profit from the chaos
The average daily movement on about every forex pair is approximately 50 pips or more.
With our new understanding of the forex sessions characteristics we can start to formulate our trading strategy which will allow for us to extract at least 50 pips a day from any pair.
Now, 50 pips may not seem like much for some. However, 50 pips is life changing for others. This all depends on the amount of trading capital you have! Thankfully there are prop firms like MyFXFunding.com that allow anyone to trade with 6 or even 7 figures of trading capital! If you are a trader with a small account, I highly recommend you check our MyFXFunding.com, they can change your life drastically if you truly know how to trade!
My entry method for the 50 pip a day strategy is based on M and W reversal patterns.