Market Update 30/07/2021, 3 Types of Turning Points
Hello Traders, this is Laurence Bowden, advanced Trader here at Master the Markets, and I’ll be running through today’s Market Update for the week ending 30 July 2021
What will I discuss for you today are 2 sections:
First, the Turning points.
In the second half of the webinar, we’ll have a look at the trade we’ve taken this week and the results for both rooms, which are the Live Trading Room and the Elite Room.
So let’s have a look at the Turning points.
As an overview, markets move in waves, that will actually form lows and highs which defines the trends the market is moving in.
So we can a high, a higher low, and a higher high in an uptrend. Now by the nature, it moves it means that turning points will occur at each of these lows and highs.
Now looking at this there are only three p[permutations of bar passing that will possibly occur to form a turning point.
3 Types of Turning Points.
1.PSWB – Potential Swing Bar.
– as the market is moving the trending bars we have a close below the mid-range that we can see at the market. So a close below 50% at the bar, this is PSWB. Actually, this bar will form as red as a seller if the close is close at the open of the bar.
What we can also can is a PSWB if the market is trending at the downside and we get close at the 50% down line that gives a signal that markets might be turning round.
– As the Market moves up and whether we have a PSWB from the daily bar, does not break the high of the previous daily bar but breaks the low. This is the second type of turning point that we can see the market before the swing low is formed.
– This is where the market is been moving up and the bar forms that don’t break the previous day’s high and the previous day’s low. It can also occur into a top to bottom move wherein the day bar doesn’t break the previous day’s high or low and this again can signify a turning point in the market.
There is a chance that from this bottom to top move, the high here we had as the turning point the PSWB following that a Primary Bar before the market can confirm the swing high.
Here’s a scenario here, where the market is moving to the downside and the bar formed didn’t break the previous high or the previous low the fulfill the insider bar before the market turned around.
So that’s the principle three types of turning points which indicate the market can be turning around.
We can see here on the charts that this pattern constantly occurs on the market they don’t usually lead to turning points but they definitely occur before turning points happen.
So we’ve got an insider bar which can signal to us that the market might turn in this case it didn’t appear WB and a primary bar here and then finally appear WB and the primary bar which end up being the turning points.
During these bottom to top moves, the more times that we see these bars occurring there’s a potential turning point but then failure increases the chance that the market will turn around at the next timezone of these patterns form.
So that increases our confidence when trying to trade and catch a turning point in order to catalyze from markets phases.
In the Elite Room, there is just one here for cash in 4.0 100 PIPS which is a small loss of .22%. In the Live Trading Room this week no trades were taken on the lift-off strategies, that is 70% open equity. There was however a trade that we closed out in the cash in TSL primary it was a small loss of 0.16%.
We have five trades that we took one-day exit Elite which close either profit our target and that brings us 1.65%.
The total for the Live Trading Room is 1.49% and the total for Elite Room is 0.22% and the total overall is 1.22% for the week.
Let us have a look at a couple of trades we still have open on the TSL Primary.
We are still running on the Dollar Swiss and on the Dollar-Yen.
As I mentioned earlier aiming to capture profits from the turning points of the markets and all the confirmation bars we’ve entered on the close or the confirmation are the stops loss at the high of the bar and as the trending process continues trading behind those to Friday’s bar to higher Friday’s bar and that given us 104 Pips of profit so far and we’ve secured 76 of those so, this trade will look like a little profit next week as it seems at the moment.
We’ve got one trade also running on the Dollar it’s been lesser than efficient move here at the dollar-yen. That was an entry at the close of the confirmation bar, we stop at the high and we’ve continued to trade this all the way down to reduce any risk of the trade and we’re now sitting at a slight profit with very low risk with our trading stop loss here with the Dollar Yen and looking for that to continue through the week if the PSWB fails the market continues.
The downside if we do, if it turns out as our turning point here then or primary confirms the market here with a very small loss.
So that concludes that Market Update for the week and the trades are still open at the Live Trading room.
As we always say, stay discipline, follow your trading plan and keep trading like a master.