It’s time to uncover the trading secrets that made me millions in forex.
This article is the third episode in my free trading course, teaching you my current winning supply and demand trading strategy and making as many of you profitable traders as I possibly can.
One of the most challenging parts of trading is knowing when to exit trades. Today, I will teach you three exit strategies I’ve used for over ten years.
New traders never pick the correct levels, leaving tons of profit. It is why I’m teaching you how to use imbalances, rejections, and significant levels to exit your trades at the right points.
I will show you three real live trade examples that made me over $30,000. Some of them made me over 8% in a single trade.
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Right now, the bearish USD index is influencing my market bias. We had a big push higher for the past year. However, it broke a trend line (shown on the weekly timeframe), and it’s starting to look a little more bearish.
Some headlines I discovered by searching “US Dollar” on YouTube include:
- “US Dollar expected to be in a multi-year bear market.”
- “US dollar will be dead in 5-10 years.”
- “The end of the US dollar.”
Hence, I’m a bit bearish on the USD and use that idea in all my trades.
Here are the trades I placed on my verified live, MyFxbook:
I bought XAUUSD and NASUSD and sold USDCHF, always going against the US dollar here because that was my bias.
I made $11,000 on one trade, $9,000 on another, and over $9,000 on one more. So, let’s get started on my first trade of the week.
Live Trade 1: XAUUSD (Buy)
My first trade of the week was a gold (XAUUSD) trade. Since the USD is the quote currency in this pair, I was bullish here.
Hence, I set my demand zones. There was one lower zone, but the price reacted off an upper one I eventually used for this trade.
In hindsight, I missed the first entry as the price broke a level, entered the zone, and moved away. However, it validated my opinion on this trade and the demand zone.
Eventually, the price pushed out of the demand zone from where I entered the trade here, smashing my two take-profit orders.
Placing both will help me show you multiple ways to exit trades and how I’m using imbalances and different methods in 2023.
I used a recent significant level (swing high) on my first take profit.
It is something I do all the time when I’m exiting trades. If I see the price reach such a level and know my demand zone is valid, like in this example, we will likely get enough momentum to push back up to that price.
I had a 3.5 risk-reward ratio on this, which was still amazing. My stop loss was below the demand zone.
For my second take profit order, I used imbalances. The one for this example was on the H1 time frame.
If you don’t know what an imbalance is, it is an area on a candle that price has not yet filled on either the buy or sell side. It means orders are sitting there, and the market should return to that area to fill them.
As seen in the image above, the second consecutive bearish candle right has not been filled. Thus, the market will likely return to this area.
Some people use this area to exit trades, while others use it to enter trades because of the reaction to these imbalance zones.
In this case, I used an imbalance zone for my exit. I thought we would get higher up into that imbalance, and that’s what happened. The price moved above and filled it before the following market reaction.
Hence, that’s two ways to exit a trade in 2023. I use my imbalance exit and a recent level.
The second trade was a risk-reward ratio of 8:1. It made me over $6,000 on a single position, which is great to show you for this.
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Live Trade 2: USDCHF (Sell)
In this sell example, I set my supply zone as usual.
I was selling because US Dollar is in the base position of the currency pair, which is a bearish US dollar this period. Hence, I wanted to buy the Swiss franc and sell the US dollar.
Ultimately, the trade went how I wanted it to.
We had the price push out of my demand zone with three big red candles (I love three consecutive candles). Then, we broke prior levels.
I was waiting for the price to return to the demand zone and for another reaction. It got there and reacted, pushing down twice.
Like in this example, seeing wicks into the demand zone validates that level. It’s holding up. It means we have sell orders there and can take advantage of it.
The first trade had a risk-reward ratio of 3.14, while the second was 6.32. Excellent exits.
As always, I had my stop loss below my supply and demand. That’s how we’re doing this.
There was an imbalance earlier, but the price didn’t fill it initially. Hence, we can expect the price to come to the area at some point because it is a market inefficiency.
Eventually, it happens; the price comes down to the area and fills that. I hit my first take profit on this trade for a few thousand dollars. I used a rejection wick on the second trade – another way to exit trades.
Scrolling back, you will discover the price didn’t come down in a very long time in this area. Thus, we couldn’t use an imbalance here.
However, we had a recent rejection wick. Hence, I targeted there because the price had moved down there recently.
When starting with trading and supply & demand, you’d want to place a trade at a time. I’m managing two because I’ve been trading for over 15 years, and I want to show you as many exit strategies as possible for 2023.
Live Trade 3: US100 (Buy)
My last live trade example was on NAS 100. I bought it because that was my bias against the US dollar.
We had our first (small) push out of an area that created a demand zone, and I wanted to see reactions subsequently. I got a big wick there, making me feel good about these trades.
Before entering the trade, I wanted some consolidating candles formed earlier to be broken.
Since this article is about my exits, my first for this trade was at an imbalance. We had to fill that area, so I believed it was an excellent take-profit level at a 3.64 risk-reward ratio.
As usual, the stop loss was below the demand zone, where we got an incredible reaction.
My second take profit is another way of exiting trades called the rejection zone. We had an earlier rejection wick there, meaning the price did in the past. Thus, I was confident that the price would reach that level again.
In this case, I left some profit on the table as the price pushed above even further. You don’t want to be incredibly greedy.
You want to see the price go to a recent level, an imbalance zone, or a rejection zone.
If you’re using these three exit strategies, you’re really going to get somewhere with your trading. I promise you that.
Those were all the trades (six), as you could see earlier in Myfxbook. I had a 100% profitability.
Trading isn’t always this easy, but when you’re using the right strategies and have the correct market bias, you’ll have an edge.
As I showed you, I’m bearish on the US dollar, so I’m selling it, buying other currencies against it. It was gold, the stock market, and another currency today.
The trades banked me $9,000, $9,000, and $11,000. Fantastic week.
I hope that you start using these three exit techniques in 2023. They’re working incredibly well for me. Hence, pick up some free signals in my free trading room using them.
Consider joining my VIP trading room. We’re using these techniques and growing accounts.
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Next time, I will show you some higher timeframe, lower risk supply and demand that even a beginner can use. Stay tuned.