Studying the market using this technical strategic overlay makes more sense to me than anything else I've looked at.
This is for very short term trading. So it's a lot of fun. Very fast moving.
The basic chart is simple.
Candles, Bollinger Bands, and the 400 sma
First thing is to identify the trend on the day.
Up, down, flat in a channel?
Then find entrances on the lower time frames that go with the trend.
Can fine tune that to at least the 5 min candles.
Always use a stop and be ready to take a small loss. It has two advantages. Prevents having to take a much larger loss after waiting and waiting for the trade to turn round. And all that time spent in waiting could have been used to several other trades. I am only taking one trade at a time. It is too fast moving to try to monitor more than one at a time.
Finding the most appropriate sma on the appropriate time frame using a cross of price on that as trailing stop.
News and data... and market openings and closings means heightened activity and the possibility of a trend starting but there is too much volatity right when the news is there. Evidently there are pending orders just above and just below and they get taken out casing spikes in both direction. So have to wait a few minutes until the trend can be identified. To keep a close watch for when they are scheduled.
Watching MACD. It is rolling over? Are there divergences? Checking the different time frames.
No real money used yet. So no fear of getting it wrong. But by entering the market using the demo it keeps my attention and I become more and more familiar with how the market moves.
I will make money. I am sure of it. But for now let me study this seriously.
This is for very short term trading. So it's a lot of fun. Very fast moving.
The basic chart is simple.
Candles, Bollinger Bands, and the 400 sma
First thing is to identify the trend on the day.
Up, down, flat in a channel?
Then find entrances on the lower time frames that go with the trend.
Can fine tune that to at least the 5 min candles.
Always use a stop and be ready to take a small loss. It has two advantages. Prevents having to take a much larger loss after waiting and waiting for the trade to turn round. And all that time spent in waiting could have been used to several other trades. I am only taking one trade at a time. It is too fast moving to try to monitor more than one at a time.
Finding the most appropriate sma on the appropriate time frame using a cross of price on that as trailing stop.
News and data... and market openings and closings means heightened activity and the possibility of a trend starting but there is too much volatity right when the news is there. Evidently there are pending orders just above and just below and they get taken out casing spikes in both direction. So have to wait a few minutes until the trend can be identified. To keep a close watch for when they are scheduled.
Watching MACD. It is rolling over? Are there divergences? Checking the different time frames.
No real money used yet. So no fear of getting it wrong. But by entering the market using the demo it keeps my attention and I become more and more familiar with how the market moves.
I will make money. I am sure of it. But for now let me study this seriously.