What’s up everybody it’s Johan here from
Trading Walk and I want to show you this top-down analysis of GBP/JPY We had some very nice trades here
trading GBP/JPY and I’m going to show you the process on how you can use FX
Master Code doing a top-down analysis to really find the highest probability
trades and trade more accurately and profitably this year so looking at this
chart here what I saw was this kind of consolidation here and we basically have
a low here and this low is not broken and usually what I see especially in the
Forex market is we do this kind of shakeout moves we have one here so you
see that this doji candle right here the low of that candle and the candle here
is the low of this candle is lower than this one but just a tail of it so it’s
just shaking out the stops below this doji here and then immediately reversing
and turning back up so this low here gives me a kind of feeling that we might
come and test this low and this could mean that we break through it and then
retest from below so support becomes resistance or that we just shake out
below the level and then immediately reverse back up again and continue up
because you see here we have this higher high and higher low higher high and
possibly a higher low now so this is the current higher lows so we might see that
kind of move and if we look at the four hour chart so the low I talked about is
over to the left here and we have these more recent lows here you see this can
move right here in this low that we had a low here and then this
low here we came below this level and immediately turned back up you
had a double bottom here so and you see from that we rally and you see this top
here as well the high of the top and this one we just take out the stop
losses above here and then immediately turn back to the most recent level and
that’s why one of the strategies I talk about in my Candlestick Profits book is
one that take advantage of this and really spots this kind of double top
and double bottom formation using specific rules and specific candles so
you need to be aware of double tops and taking out stop losses above recent highs
and below recent lows but let’s get back to FX Master Code and the analysis behind
the recent trades here so basically on the four hour short here we see that we
have this low here and that low becomes resistance so when I looked at this when
we got back above this level I started looking at the buy signals on the lower
timeframes because I knew that the probability was high that we
would come back up again to the most recent high which was this
double top here and then we saw a resistance at the top and then we
retraced and like I talked about in my previous videos if we draw a Fibonacci
here you will see that this is our 50% level right at that 50% level bullish
engulfing candle strong candlestick formation which I was talk about in my
Candlestick Profits book and from that we turn in just two candles we hit the
first profit target and then the second profit target when trading fibonacchi
are like the 100% as the first profit target the 127.2% as the second
profit target and the 161.8% as the third profit target and
depending on the strength of the trend and higher time frame analysis as
we do right here depending on how much confluence I have the more aggressive I
can be and take the longer profit target but if I’m more conservative I will
take the smaller profit target just to give you an idea on how to use a Fibonacci so
we knew we have both the resistance level here and when you we have the Fibonacci
the second profit target so this immediately makes this a strong
resistance level so how do you act on this well we wait for price action to
show us if this is a good level to possibly start thinking of taking short
trades so after we saw the strong price action when we immediately turn back
about this support level and we traded by signals here and we treated by
signals after the Fibonacci 50% touch and up to the second take profits we now
want to wait for price actions that show us that this is a resistance level and
we get that here so when I started to see that this was going to turn I looked
for sell signals and we can see if we zoom down to a H1 chart we can see
that we this is the level I talked about so we come up to that level we get a
bearish engulfing you could have entered this and just place your stop-loss
above this but know that this risk for the possible double top and the shakeout but
we came down from that level made a lower low and then a lower high and now
a lower low again so as soon as I basically saw the lower low and then
you have this kind of micro flag here when I saw the lower low here I knew
that I could take short trades the way down here though just to give you an
idea how long you can look at short signals if we just draw a Fibonacci from
here you see also we touch the 23.6% resistance and if it’s from that level
we basically turn and we hit the second take profit target again so basically
from the 50% to the 100% that’s usually very strong probability for
taking the short rates and then a little bit lower probability between
the 100% and the 127.2% and then of course possible short
signals here would not be as good so after we hit the second take profit
target we can wait for a retrace because we now have the the new
Fibonacci so we can draw a new Fibonacci here and if we draw that one from the
lost swing high to the swing low so basically from the last one here down
here so basically after we had the touch of this I can take profit and we knew
that the possible short signals here would not be as accurate so what we
could do then is just sit on our hands basically and wait for new high
probability setups and when we see the bearish candlestick formation here
right at the 50% when we have a bearish Fibonacci drawn and we come down below
the 50% and as I’ve talked about in the previous example from from the Fibonacci
here so when we come below the 50% between 50% and 100% this is like the the
golden zone or what you want to call it like this is where you will have the
highest probability trading the FX Master Code signals on the lower time
frame and I will show you the signals just in a minute here but when we make
this bearish candlestick formation and we’re below 50% this is the high profit
zone and then you have this it’s also a high profit zone but then when
we come down to the 127.2% level this is where the probability
is not as high anymore so looking now at the 15-minute chart I
want to show you how you use this signal especially when you use Forex and you do
this kind of top-down analysis so like from the low here which we draw a
Fibonacci and we see we had these wins nice sell signals here beautiful like
this FX Master Code works on Forex just as well as it works on Binary Option
and you have this beautiful signals here and as I’ve talked about since this
was the 127.2% level from the last swing that the accuracy would not be as
good down here and as you see here these two lost signals you could probably have
scalped the first one made some profit but the second one would probably have
been a loss if you would have trade them but like I said if you done your
homework and done this kind of analysis you would not have taken these trades
you didn’t know that there was a high probability we would get this kind of
swing here and then you have this buy signal here like it’s it’s a perfect
signal it’s the first signal from the low we made in our analysis so you
couldn’t made a very nice profit from this move and you could have hold it all
the way up to the 50% as well so this would also made a very nice trade as
well and now when you had this price action here at the 50% you see the
strong bearish price move you would ignore this one of course and you would
act on these sell signals and you see just how accurate these are and as we
saw here when we come down to the 127.2% level this is where we don’t want
to take trades anymore just as the previous example this is where we will
wait for the new opportunity so we had the smart money traded here and you can
see we had this buy single here so you can trade this buy signal now and expect
the move up to the 50% and now I would like to see us move up to the 50% and
look at the 50% when we come up to that level do you have bearish price action and if price come back below the 50% level I
want to start trading sell signals down to the first profit target the 100%
and then the second take profit target 127.2% guys I hope this helps if you enjoyed this video please leave a like
and subscribe to my channel and hit the notifications bell so you get updated
when I release new videos and if you want to try FX Master Code
check link in the description and I look forward to hearing about your
results and if you use it like I showed in this video I mean you can see that this
actually works and if you have any questions let me know in the
comments and I’ll get back to you


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