What a sharp contrast to see kind souls in this thread so willing & ready to help other traders, in an industry that is infested with sharks that are ever ready to steal money from unsuspecting traders. I know these benign beings will be abundantly rewarded, both materially & spiritually, in this life & beyond… I look forward to joining the league soon.
Having read some initial posts & write-ups in this thread & watched some videos I’m happy to see that many of my earlier ideas & notions abt fx trdg are being confirmed, while some are sort of challenged.
The very 1st thing to do when we open a chart is to determine whether price is:
1. trending on an impulse leg;
2. pulling back on a corrective leg of a trend; or
3. going sideway / consolidating.
We wld next look left to identify past swing highs, swing lows, congestion areas, which will act as support & resistance levels (some quarters call them supply & demand levels; I call them road blocks.) Other road blocks include fibo retracement & extension levels, major EMAs / SMAs, big round numbers…… Diagonal trend lines are something I wld look at as well.
When trending price (either on impulse or corrective leg) moves to these road blocks it often wld stall / hesitate before deciding to reverse or break through. It’s at these levels that we wld enter trades.
I did not pay much attention to bar (or candle) formations for the following reason: daily bars & 4-hourly bars from different brokers wld start at different time of the day. Most start the day at 5pm EST, some at 6pm EST, others at 7pm EST, 12 mid-night GMT, 12 mid-night EST…… So, a pin bar on some brokers’ charts need not be a pin bar on others’. An outside bar (or engulfing candle) need not be an outside bar on all brokers’ charts…… etc. In a sense, bar formations are thus arbitrary!
I also did not pay much attention to nor like to look at currency pairs other than the majors (USD pairs). My view is that all other pairs are NOT independent on their own right, but are all derived from their values versus USD. The USD pairs are the drivers. All the rest are slaves. How much significance can I attach to the road blocks on the slaves' charts?
It looks like I will need to relook at the last 2 notions above. May I hear the valued views of you folks here please?
God bless!
Having read some initial posts & write-ups in this thread & watched some videos I’m happy to see that many of my earlier ideas & notions abt fx trdg are being confirmed, while some are sort of challenged.
The very 1st thing to do when we open a chart is to determine whether price is:
1. trending on an impulse leg;
2. pulling back on a corrective leg of a trend; or
3. going sideway / consolidating.
We wld next look left to identify past swing highs, swing lows, congestion areas, which will act as support & resistance levels (some quarters call them supply & demand levels; I call them road blocks.) Other road blocks include fibo retracement & extension levels, major EMAs / SMAs, big round numbers…… Diagonal trend lines are something I wld look at as well.
When trending price (either on impulse or corrective leg) moves to these road blocks it often wld stall / hesitate before deciding to reverse or break through. It’s at these levels that we wld enter trades.
I did not pay much attention to bar (or candle) formations for the following reason: daily bars & 4-hourly bars from different brokers wld start at different time of the day. Most start the day at 5pm EST, some at 6pm EST, others at 7pm EST, 12 mid-night GMT, 12 mid-night EST…… So, a pin bar on some brokers’ charts need not be a pin bar on others’. An outside bar (or engulfing candle) need not be an outside bar on all brokers’ charts…… etc. In a sense, bar formations are thus arbitrary!
I also did not pay much attention to nor like to look at currency pairs other than the majors (USD pairs). My view is that all other pairs are NOT independent on their own right, but are all derived from their values versus USD. The USD pairs are the drivers. All the rest are slaves. How much significance can I attach to the road blocks on the slaves' charts?
It looks like I will need to relook at the last 2 notions above. May I hear the valued views of you folks here please?
God bless!