I came across these very true paragraphs from trader on this site that seem to capture the simple, true essence of a trading system. I have discovered this truth myself and that is why this piece rings so true. Being good at the principles outlined there makes for a great system and with good money management trading is less of a challenge and more like a money machine to be topped into continually. These are the elements that need to be discussed, and mastered. Anything else is a waste of time. This thread I hope should develop into - TREND IDENTIFICATION ON PAIRS, S/R Analysis and possible Entry Consensus, Here is:
Mike Horan. Source: http://www.forexfactory.com/showthre...33#post4618333
DislikedThe one thing you have as a trader is TREND. That is your edge. The next thing is SUPPORT AND RESISTANCE, that is your second edge. Candle sticks are useless they mean NOTHING, candles from different brokers, depending on time frames, look different so the same market gives different signals huh, useless.
But, at the right points, i.e support and resistance levels, you can see how price reacts, HERE candles mean something. So what do I look for, firstly the trend has to be going in the direction I want to trade, secondly I look to trade currencies that move and don't range. The daily trend is indeed your direction finder, it points the way.