In this video, I continue documenting my journey toward building a solid Forex trading plan. Over the past few weeks, I have been going through one of the most challenging phases in my learning process—searching for a trading plan that actually works for me. Now, I can say that I have reached an important milestone in that journey.
I have built what I call my trading environment, which includes my trading philosophy, objectives, methodology, and finally the trading plan itself. However, this structure is not fixed. It continues to evolve as I refine my understanding and test different approaches within my Forex trading analysis.
One of the most impactful discoveries during this phase was learning about Market Structure in Forex Trading. I was drawn to it because of its logic and mechanics. It gave me a clearer way to read price movement. However, despite its strengths, I was not satisfied with the results I was getting, particularly the win-loss ratio. Even with a high risk-to-reward ratio, the number of losses made it difficult to stay consistent.
At that point, I started experimenting with different tools to filter my trades. I tried indicators like RSI and stochastic, and even revisited classical concepts such as support and resistance. But none of these approaches gave me the consistency I was looking for. That’s when I realized the issue might not be with market structure itself, but with how I was applying it.
So I went back to basics. I removed all indicators and focused only on understanding and applying Market Structure in Forex Trading correctly. I revisited the educational material I was following and began observing the charts more carefully.
Now, my process starts from the higher time frames. I begin with the weekly chart, identifying the trading range and key points of interest. From there, I use Fibonacci retracement to define premium and discount zones. The idea is simple: sell in premium and buy in discount. This aligns with the core principle of buying low and selling high.
To manage my trades, I use a fixed risk-to-reward ratio of 1:3. I rely on the 0.786 Fibonacci level as a key area to observe price reaction. Instead of focusing too much on identifying the exact type of point of interest, I focus on how price behaves around this level.
Risk management plays a major role in my decision-making. I limit my risk per trade to around 0.5%, and I am very strict about not exceeding this range. This often means that many opportunities on higher time frames are not suitable for me due to the large stop-loss distances.
As I move from the weekly to the daily and 4-hour charts, I follow the same process. However, I recently simplified my analysis by asking two key questions:
Is there a clear reaction at a point of interest?
Or is price moving toward a point of interest?
These questions help me stay focused and avoid overanalyzing the charts. Sometimes, I feel like I spend too much time observing without taking action, so this approach helps me become more efficient.
This is still a work in progress, and I am documenting it as part of my journey on how to become a successful Forex trader. Everything I share is based on what I am learning and testing. It is not something I invented, but rather my way of understanding and applying these concepts in real time.
Hopefully by the next video we will have trading examples to showcase the mechanism, if not we will make the video a currency pair outlook reading. Analyzing, the EUR/USD using the market structure elements
The Investor
I have built what I call my trading environment, which includes my trading philosophy, objectives, methodology, and finally the trading plan itself. However, this structure is not fixed. It continues to evolve as I refine my understanding and test different approaches within my Forex trading analysis.
One of the most impactful discoveries during this phase was learning about Market Structure in Forex Trading. I was drawn to it because of its logic and mechanics. It gave me a clearer way to read price movement. However, despite its strengths, I was not satisfied with the results I was getting, particularly the win-loss ratio. Even with a high risk-to-reward ratio, the number of losses made it difficult to stay consistent.
At that point, I started experimenting with different tools to filter my trades. I tried indicators like RSI and stochastic, and even revisited classical concepts such as support and resistance. But none of these approaches gave me the consistency I was looking for. That’s when I realized the issue might not be with market structure itself, but with how I was applying it.
So I went back to basics. I removed all indicators and focused only on understanding and applying Market Structure in Forex Trading correctly. I revisited the educational material I was following and began observing the charts more carefully.
Now, my process starts from the higher time frames. I begin with the weekly chart, identifying the trading range and key points of interest. From there, I use Fibonacci retracement to define premium and discount zones. The idea is simple: sell in premium and buy in discount. This aligns with the core principle of buying low and selling high.
To manage my trades, I use a fixed risk-to-reward ratio of 1:3. I rely on the 0.786 Fibonacci level as a key area to observe price reaction. Instead of focusing too much on identifying the exact type of point of interest, I focus on how price behaves around this level.
Risk management plays a major role in my decision-making. I limit my risk per trade to around 0.5%, and I am very strict about not exceeding this range. This often means that many opportunities on higher time frames are not suitable for me due to the large stop-loss distances.
As I move from the weekly to the daily and 4-hour charts, I follow the same process. However, I recently simplified my analysis by asking two key questions:
Is there a clear reaction at a point of interest?
Or is price moving toward a point of interest?
These questions help me stay focused and avoid overanalyzing the charts. Sometimes, I feel like I spend too much time observing without taking action, so this approach helps me become more efficient.
This is still a work in progress, and I am documenting it as part of my journey on how to become a successful Forex trader. Everything I share is based on what I am learning and testing. It is not something I invented, but rather my way of understanding and applying these concepts in real time.
Hopefully by the next video we will have trading examples to showcase the mechanism, if not we will make the video a currency pair outlook reading. Analyzing, the EUR/USD using the market structure elements
The Investor
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Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
Publications connexes
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.