Trade what you see and not what you hear or hope.
Trading is a profession and if you want to become a professional then start building up your knowledge.
How you do this is entirely in your hands but based on 30 years experience,
this is how I suggest you start.
Learn about divergence. Divergence is when the price goes one way and the oscillator indicator goes the other way. There is normal, negative and positive divergence. By itself divergence is of very limited use but it is 100% necessary to learn it as it forms the first signal for a safe trade.
Second, learn about supports and resistances. These can be called pivots when they are historical. There are several changes in direction of a small timeframe chart in one day so there are several new and current S&R levels created. These are very important during the day's trading.
Thirdly there are trendlines. Trendlines should IGNORE spikes.
FINALLY you should put these 3 aspects together. The order NEVER CHANGES, it is always divergence first, support/resistance second and set trap trendlines third – and then enter. The stop loss is always the support or resistance first created.
What is the MOST IMPORTANT item is the EXIT.
If you choose to reversal trade then this can be an opposite signal.
If you trend trade then the exit will be how you assess the end of the trend. Remember there are mini trends and major trends so you set your chart indicators to what you want to trade.
If you swing trade then you can exit on a pre-set amount or another method like Fibonacci.
Whatever your choice, start with a plan based on sound technical knowledge.
Trade what you see and not what you hear or hope.
Good luck all.
Regards,
George
Trading is a profession and if you want to become a professional then start building up your knowledge.
How you do this is entirely in your hands but based on 30 years experience,
this is how I suggest you start.
Learn about divergence. Divergence is when the price goes one way and the oscillator indicator goes the other way. There is normal, negative and positive divergence. By itself divergence is of very limited use but it is 100% necessary to learn it as it forms the first signal for a safe trade.
Second, learn about supports and resistances. These can be called pivots when they are historical. There are several changes in direction of a small timeframe chart in one day so there are several new and current S&R levels created. These are very important during the day's trading.
Thirdly there are trendlines. Trendlines should IGNORE spikes.
FINALLY you should put these 3 aspects together. The order NEVER CHANGES, it is always divergence first, support/resistance second and set trap trendlines third – and then enter. The stop loss is always the support or resistance first created.
What is the MOST IMPORTANT item is the EXIT.
If you choose to reversal trade then this can be an opposite signal.
If you trend trade then the exit will be how you assess the end of the trend. Remember there are mini trends and major trends so you set your chart indicators to what you want to trade.
If you swing trade then you can exit on a pre-set amount or another method like Fibonacci.
Whatever your choice, start with a plan based on sound technical knowledge.
Trade what you see and not what you hear or hope.
Good luck all.
Regards,
George