Hi bloodpoodle where I can learn more about market structure? thanks
When i trade spikes I look for levels that I think are acting as support and resistance.
If I see a spike stop... I'm asking myself "is this resistance?"
Then if I see price dropping after the spike stop.. I know the sellers have come..
Then its all about looking for a chance to get in with limited risk.
For support and resistance the lower time frames from that day get more weight then a level set 2 days ago.
The worst time to look for support or resistance is usually just as a market is opening up.. like london open...
Volatility is increasing as Europe comes online.. and levels usually break.
Once the market gets its rhythm in the session much easier to spot areas of support and resistance..
Its always better to start hunting your levels after a spike.. No spikes= much tougher..
sometimes support and resistance are so close its not worth trading, but after a spike there is a large gap between support and resistance for you to try to make some money off off.
I make it simple... resistance is highest point of the spike.. where price came to a dead stop... then I zoom out too see what stopped it.. and use my judgement and experience to tweek the level if needed based on the bigger picture.
Somedays you won't get spikes all day... biggest spike will be 7 pips.. Very hard to make money off that kinda action.
Recently i have learnt that nothing works,Market makers do what their objectives of the day or shift are?
you got to have big account to sustain the bad moves MM make.
study BTMM by Steve Mauro.
what works and what doesn't?
however, daily trading is difficult.
because for me, there are two kinds of displacement, the directed and the random.
we can build a strategy for controlled displacement.
but there is no strategy for moving randomly.
I call it a random move when you don't know the reason for the move.
but it's not impossible to make a profit with a good system.
You can find market analysis and industry updates from trading platforms, it mostly works
This has been one of the best threads I've read, admittedly I've only read BloodPoodle's posts. My trading timeline went from indicator search and seek, to naked trading, then got picked up by a trading mentor (who showed me proof of his success) and showed me his indicator way of trading. I spent two years on this, mixed results, sometimes making huge amounts, and then losing lots with the same set up. I have a tendency to not being able to see price through all the indicators on my screen.
However the simple fact that i saw him making loads gave me proof that trading does work, and the fact that someone was making a serious amount of money by trading was hugely motivational. (I'd got to a stage in the past where I actually thought it was impossible to make money trading)
Finally i went back to naked trading : having the indicator set up beside the naked set up and watching and trading them both. There quickly came a point where I found that I was primarily trading the naked chart.
For me, trading is very much about the maths, i divide my position down into 5, with 2 tradesets. One to make money with, the other one to trade out of if i get caught out by forgetting to check that high impact news is due etc lol. I trade the 1 minute naked chart. And finally, these last few years i'm seeing increasing financial success with this cut throat game.
I live and breath this game :-)
I made a little change and raised the leverage to 1: 500.
since my trading system is within 100pip range, i think this will be good.
I think it will be good.
many people also use the fibonacci approach.
many swear it works.
but does it really work?
my own tested opinion is that the hit rate does not exceed 50/50.
Not sure if my trading style is valid, but its core is just trend identification and following the trend.
I do get the occassional shaken out by the market if it decides to dip or bearish, but I'm still fleshing it out day in day out.
Oh and also using candlesticks and volumes to try and interpret what the market is doing.
I'm open to suggestions, criticisms, anything constructive. If it brings a positive change, I'm all for it.
You understand that because the market is constantly moving and changing it is difficult to say that you can take one strategy and immediately put it on the market so that it gives a large number of signals, etc. As practice shows, most of even well-known strategies need to be adapted to yourself, plus it's useful to change your approach a little bit sometimes, so that you don't dwell on certain points and constantly move forward, because you can repeat the same actions in a circle and not notice that you are making the same mistakes, so I'm in favor of constantly learning and finding something new, so that you are always in the development stage and not standing in one place.
There is a big problem with what you may call "pattern trading" for example, all the chart patterns have been proven many years ago not to work, and of course not if you only trade 1 pattern or multiple patterns you're so predictable, your opponent knows what your next move is.
Trend lines do work, now if it was as simple that you connect 2 points and buy at the next touch everybody would be a billionaire, but 95% of people trading Forex lose for a reason. Trend lines should be used as a discretionary tool, if you combine trend lines with other concepts and test them with very specific criteria you CAN make it work.
That's the problem with having a static approach so to speak, you will not have a career in Forex, if you look for some magical exact pattern that will make you a zillionaire, they do NOT work.
Hi bloodpoodle, I randomly came here and I saw that finally I found another person that thought about trading against fast movement , I started a thread months ago about these fast movements: https://www.forexfactory.com/showthr...7#post12652167 (but without success, even I can't explain that mechanism...so I tried opening a thread)
btw I will be very happy to contribute to the thread
I think that a good set of indicators and levels works best, because with their help you can determine how the price has behaved recently and what trends are visible at least approximately. Plus, I would never forget about news that can fundamentally change any trend and bring absolutely unexpected moments to the market and completely change the course of events. But I am against any specific recommendations, because each of us not only has different characters and so on, but also has a completely different attitude to the market and its analysis, some of us want to see the result here and now, and some of us are ready to wait exactly as long as necessary and never hurry anywhere.
In fact, I would agree that most of the theories and strategies that are superficially described on the Internet can't be called a worker. In order for everything to work out in the best possible way, it is still important to adapt any of these strategies for yourself. How to do this? Actually, everything comes with experience, I would even say that it happens on an intuitive level, when you understand that here you need to change the settings, and here the frequency - this indicator works only with currency pairs, and these - are best suited to use them for trading with stocks. So just try and do not forget about the practice, and as often as possible.
a lot can work, but it should not be complicated.
candle analysis, support levels. macd, rsi, .... nothing works for me.
now I'm just following the trend.
and this simple approach is profitable.
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