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NIAL FULLER
Professional Trader, Author & Coach
Nial Fuller is a professional trader, author& coach who is considered ‘The Authority’ on Price Action Trading. He has taught over 25,000 students via his Price Action Trading Course since 2008. In 2016, Nial won the Million Dollar Trader Competition.
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Forex Trading Strategies By Nial Fuller How To Anticipate Your Next Trade
By Nial Fuller in Forex Trading Strategies By Nial Fuller |63 Comments
There’s an old saying that goes something like “Success happens when opportunity meets preparation”. Hopefully, by the end of today’s lesson, you will understand just how applicable that saying is to trading success and why it’s so important to be an anticipatory trader instead of a reactive one.
If you take a close look at any successful trader or business person in any industry, you will find they did not achieve success by being reactionary and acting without a plan. Every success story, whether in business, trading, professional sports or anything else, always is based in planning, in anticipating what needs to happen now to attain success in the future.
As traders, we are facing a never-ending stream of constantly-changing variables when we look at the market. The only way to effectively trade and make money from those variables is to develop the ability to anticipate high-probability trades before they happen, otherwise you will always be reacting, usually emotionally to the market.
We need to plan, anticipate and then pull the trigger once market conditions meet our anticipated criteria…
Map the market in advance
The first step to anticipating trades rather than reacting emotionally to the market, is learning how to map the market in advance. By “map the market”, I am talking about understanding what the market is doing, where the key levels are, what the trend is, if any, etc. You want to make this into a trading routine that you do at the start of each week.
When you know what a market has been up to and you understand the trend and key levels, when a price action signal forms, you will instantly know if it makes sense in the context it is forming in. Once you get good at this, you will truly be focused in on key levels and value areas you anticipate a trade forming at. Then, when (if) a signal does form at that area, you are ready to go with no hesitation or fear.
So, to put this a little different way; you shouldn’t be waking up every day looking for something totally new in the market, you should already know in advance what the market is doing and where you’re waiting for a signal at. Also, by a ‘signal’, I mean a price action signal or even just a retrace to a key level and a blind entry at that level. If you are anticipating a retrace to a key level and your entry is simply at the level, that is also anticipating a trade and is just fine. Remember, don’t just react to what’s happening today; you should have already been anticipating it well in advance based off your map of the market.
In the example chart below, we can see that we have mapped out the obvious / key horizontal level and identified the dominant / overall trend of this market. Note, as the market swings, you will need to adjust your key levels to reflect those new swing points, this can typically be done on the weekend, before the new week begins…
Identify ‘hot’ areas in the market…
The point of anticipating trades is that you have a plan of action for how you will react if XYZ happens…this is a much more professional way to conduct yourself in the market than simply “running and gunning” with no logic or method behind your trades. Remember, you should trade like a sniper not a machine gunner ;).
The importance of performing weekly and daily market analysis in a structured and methodical manner can be emphasized enough. Doing so will help you to get “in-tune” with the overall market structure and dynamics and learn to anticipate high-probability trading scenarios…this is how you trade like a sniper or trade like a crocodile, pick your metaphor.
When you sit down at your computer to analyze the market, you should already have a good idea of where you are looking for signals and what markets are “hot” right now…you should be anticipating signals in confluent areas and levels in the market based on previous analysis you’ve already done. For example, in the Gold chart used above, we had been watching the key support level at 1300.00 – 1310.00 for many weeks in our commentary because we knew that price had previously bounced very aggressively from that level. So, 1300.00 – 1310.00 was a ‘hot’ or confluent area to watch and to anticipate a trade at…
Conclusion
As we wrap this lesson up, I want to make sure you understand the difference between anticipation and reaction in regards to trading the market.
Anticipation and planning for future events is an ability that is unique to humans, at least to the degree we can plan and anticipate. We have the ability to understand what has happened, what is happening and what might happen as a result of those two things. Other animals simply do not have this advanced cognitive ability.
Reactions are something every living thing has. Any animal or insect can react to their environment. Indeed, almost everything an animal or insect does is an instinct or a reaction they don’t have to think much about.
Now, stop and ask yourself, do you want to trade like a reactionary animal or insect? Or do you want to trade like an intelligent human being?? Well, I am sure that 100% of you answered that you want to trade like a human. However, I am not sure that even 90% of you are trading that way.
Most struggling traders are so busy reacting to the market that they hardly even have time to stop and think about what they’re doing, let alone to map the market, make a plan and anticipate their trades. It might sound a bit harsh, but I prefer honesty over sweet-talk, and I am going to be honest with you now. If you are only reacting to the market with no planning or anticipating, you are basically trading like an animal, certainly not a high-functioning human. Remember this point: Professional traders plan and anticipate their trades; they control themselves rather than allowing the market to control them.
The market will not ALWAYS do what you want it to or what you anticipate it might do. It won’t always move into the high-probability / confluent zones that you highlight on your charts…but sometimes it will, and when it does you need to be ready and confident, and that is the point of today’s lesson. To make sure you’re totally prepared to anticipate your trades rather than reacting to the market like a scared gazelle being stalked by a lion, check out my trading course and members’ area for more help.
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About Nial Fuller
Nial Fuller is a Professional Trader, Investor & Author who is considered ‘The Authority’ on Price Action Trading. His blog is read by over 200,000+ followers and he has taught 25,000+ students since 2008. In 2016, Nial won the Million Dollar Trader Competition.Checkout Nial's Professional Trading Course here.
63 Comments Leave a Comment
Leave a Comment
melaloyvery use full and explained briefly.
Reply
- Eric
This is real, and I love it.
Reply
- Благодарность
very informative article Mr. Nial! I think the trade magazine, thanks for your articles will help to go with the place with the market
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- Ahsan Ali
very right sir
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- Merriam
Hi, Sir
you really know your story in trading, I love every moment where I engage with everything that is on the website, I have learnt a lot even though I am not yet a member surely I am going to take the course
Thank you
Reply
- sbu
Good niel
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- olaniyi
Thanks great education about the market mapping.
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- lilele moeketsi
I do understand lesson behind anticipation and reaction in the market so im to change attitude. Thanks sir Nial
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- Humphrey
Thank you, Nial.
This is very insightful. I am new to your page, and I believe I surely will improve my trading following you.
Keep up with the great work…..
See AlsoEquities - Psychology - Day Trading & Scalping - The Most Common Market Trap And How To Avoid It.Trading con Ondas de Wolf - Metodología general para operar con este patrón de preciosTrading con Ondas de Wolf - Metodología general para operar con este patrón de preciosForex Pip Accumulator Trading System –Reply
- Roman
Thx
Reply
- Roman
Dear Nial
Thx so much for your efforts. I’m at very beginning of this subject and sure that i have to learn to anticipate.
Thx again and keep reading you
Take care
Roman KolosReply
- alex
wow that so true ad helps so much,thank you
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- Thulani
Very informative indeed, I can`t wait to take your Course.
Reply
- Thabang
Im glad to have followed you from the beninning, now I know what I’m looking for when analysis the market. Your “TLS” method combined with “Set and Forget” method really improved the way I trade. I still have a lot to learn from you my mentor and thanks for your kindness. Salute
Reply
- Ivane Zurabishvili
Hi Nial, all your articles i read with great pleasure, many thanks.
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- Euphemia Nwachukwu
Thanks Nial for this great information , I now see the importance of maping out level in anticipation, and not reacting to what the market is doing.and equally I now know that patient must be applied. Please keep up the goodwork.
Remain Blessed.
Reply
- M Felly
Wow!
Thank you so much Nial. I always wonder what I have done to deserve bumping into such a guru as you.
Keep up the good work!
Reply
- Sthembiso
I prefer to be an anticipatory trader not a reactive one.
Reply
- Atul Kapatkar
Planning makes man perfect.
Brilliant.Reply
- Larry nielsen
Well said
Reply
- Nigel Harvey
Your articles motivate me to persevere.
Reply
- Helen
Thanks you!
Reply
- Agripa
thanks coach for your articles they motivates,i am a new member ,they is no great course like yours , been struggling with trading but since i am studying the course i see a big difference in my trades through price action setups,GOD bless you more.
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- Idris Ahmad
Nial,thanks this should be my first remark to you,because your articles are always on time.practicalising your article made me got a lot,especially the precious metals,as the trend move downward.At first I couldn’t believe my eyes on what I got,yea indeed,trading like a sniper by taken the crocodile approach is more profitable than anything else,after observing the key support and resistance level,respectively as you have said.In fact ,Nial you are an undisputable guru in the Forex world,thank you very much,looking forward for your precious articles.
Reply
- 'Dare Ajayi
Nial. Yours is GREAT! It’s FOREX TRADING LIFE CHANGING. I like it.
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- Keith D.
Thanks Niall for a great post. Having now stuck with my (your) strategy, cut the markets I look at to the same ten and no others & restricted my trades to a max of 3 in any week, if they shout out (none if they don’t) I’ve reversed losses to profit at last. Small beginnings but a positive move in the right direction after 3 years of undisciplined struggle in the forex markets. Really appreciate your continued support to all of us out here!
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- M Felly
Impressive Keith. I see myself now as you in those last three years. But there’s hope now that I’m part of this amazing platform. Keep it up, discipline is key
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- Roy Peters
Great story Keith. We all wish to be like you one day!
Reply
- Emmanuel
Hmmmm sometimes your articles just confirm my observations. Good, keep i up
Reply
- Tshepo
You’ve raised some important facts , I’ve learned a lot from this article .Thanks Nial
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- Mauricio Raspa
Learn point&figure and get control over your charts . It has in built moneymanagement as well. The method that dont let The emotions take over. If you follow it of course.
Reply
- Yousri
One of the most important lessons for new and struggling traders to learn
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- yasrib
Thanks Nial. I think anticipation and discipline is 90% of success in trading.
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- Ray Imomon
Thank you. This article will help a lot. It another eye opener to forex trading.
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- Gary Bell
Your persistent focus on the mental side of the trading equation is commendable – it is THE (95%) key to successful trading. There are many strategies that work, but ALL will ultimately fail and wipe out your account if patience, anticipation, and discipline are not the cornerstone.
Love reading your articles. All the best.Reply
- M Felly
Very true
Reply
- Nick Warwick
Niall, when you point these things out, it’s like you’re stating the obvious — except one doesn’t tend to get them oneself until you point it out! A nice stabilising lesson.
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- Romeo Par
Hi Nial, I meant to ask you, what do you do while waiting for high probability set up, I am new in trading business and I do what I learned from you, hunting like a crocodile but those PIN BARS rarely appears, I must admit those signals are very effective but sometimes I get very impatient and get in a trade using other candles formation which are not as reliable as PIN BARS
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- Olatunde Adigun
Quite right. I have followed and practiced what you impart for so long I know it is the only way to be profitable in trading.
Reply
- olatunde
This is really the truth of the business. On GBPAUD, I had marked a strong support but did not place a pending order. Had I done that, I would have made at least 150 pips with absolute ease out of over 200 pips price rallying up. And there are many more like this.
Thank you so much for this timely reminder.
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- Karen M Lydon
Thanks Nial, great lesson.
There’s a line from the movie The Untouchables where they’re waiting for the mob to come over the hill and ambush the Feds. Sean Connery cautions them,
You can’t want it to happen, you can’t wait for it to happen, You just have to be ready when it does happen .” That’s what I get in this lessonReply
- Bill Sur
superb article
Reply
- Rogerio Amado
Good point, Nial.
One question. When we anticipate the trade, and the conditions are favorable, do we wait for a confirmation signal, at least the next candle to trigger the trade?
If yes, what time frame do you recommend we use for the analysis and the trigger? e.g. Do the weekly analysis using Daily Charts, the daily analysis using H4 Charts, and the trade itself observing H1 or shorter Charts?
Thanks for the post,
RogerioReply
- Ola
It has always been a logical handling of complex issues regarding forex trading which I have known long time as your core value and aim.
More greece to your elbow Nial!Reply
- WL Taba
Love this post, it’s a great motivator.
Reply
- Walter
Thanks Nial. Very helpful
Reply
- John Meester
Nial, Thank you for your great course.
-John
Reply
- James George
Your comments are always appreciated and helpful.
Thanks!Reply
- Adam
Thank you for yet another fantastic article on trader psychology and planning. I hope people will listen and follow. It’s great advice that I wish I had known when I was starting out, especially the idea to redraw levels and trend lines at the end of the week. This will definitely help with anticipating where the market can move. Notice that all charts used by Nial are Daily charts.
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- Nick
Thanks Nial, Great article on anticipating trades – just what I needed. Cheers Nick
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- GIANFILIPPO DI CLEMENTE
Thanks You, this article is very important!!!!!
Reply
- john
Nial,
Thank you for the article.
Very enlightening. looking forward to the next one.
Regards.
JohnReply
- KRISTOFA OKENTA
This sums up the whole article.
“If you take a close look at any successful trader or business person in any industry, you will find they did not achieve success by being reactionary and acting without a plan. Every success story, whether in business, trading, always is based in planning, in anticipating what needs to happen now to attain success in the future.”
Thanks NialReply
- Max
Would it be in order to place pending orders at those expected reaction points?
Reply
- Salim Jabagi
A very interesting and useful lesson. Thanks a lot.
Reply
- Nhlanhla
Wow this lesson has been an eye opener for me, much clearer (Plan and Anticipate). Thank you very much Mr Fuller, keep up the good work.
Reply
- sez elabor
Very interesting piece Nial as usual. Thanks
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- freight
great article Sir. you are helping us very much. keep on teaching us and motivating us, one day we will be good traders
Reply
- Mangut K. Mafwalal
Good and nice article. You are a good mentor.
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- Thabo
Hi Nial
I agree with you about the importance of understanding your price movement before placing a trade. Trend analysis very important more especially understanding your “tentative / confirmation point” during your analysis because u you will be able to identify / anticipate market retracing level and release your trigger.
I committed lot of mistakes due my failure to conduct trend analysis before placing my trades.
You are indeed a blessing Nial
Reply
- eric
Hmmm…. this is really building me into something else. Thank you Nial
Reply
- Dan
Jesse said,” the money is made in the waiting”
You also stress this, until one learns to wait they will never achieve success in trading.
But this is just one of the things needed
Your articles are truly well written.
Thanks for putting and keeping us on track NialReply
- Karen
thank you Nial, this was very informative, I really appreciate your straight talk…
Reply
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