hi there, i am still very new to forex trading which is only 2 weeks old.. there's still alot of things to learn for me. do you mind to briefly explain the meaning of Fib and EA please? thanks it will be great. appreciate ur kindness
- #9,903
- May 25, 2008 2:21am May 25, 2008 2:21am
- | Commercial User | Joined Apr 2007 | 8,331 Posts
hi there, i am still very new to forex trading which is only 2 weeks old.. there's still alot of things to learn for me. do you mind to briefly explain the meaning of Fib and EA please? thanks it will be great. appreciate ur kindness
There are other ways to use fibs, but retracement trading is probably the simplest, and simplest is often best.
Fibs do not suit everybody; they just strike the right note with me and my only successful trading is done using them. I suppose the important thing is to understand support and resistance and the potential effect the s\r has on prices. I will not be so arrogant as to say that I fully understand s\r, but I am a lot clearer than I was when I started trading.
EA is short for Expert Advisor. This is a piece of software that sits on a chart monitoring prices and waiting for something to happen to trigger an action.
For example, the most basic form of trading is probably waiting for a shorter term moving average (say a 50) to cross a longer term one (say a 200) and then trading in the direction of the cross. A 'cross' trading EA would calculate the moving averages, spot the cross and send the order - freeing the user from the need to constantly check prices. This is only an example. Don't trade like this - it is better than tossing a coin but not much.
My ea was waiting for the eu to hit a resistance level. Once this happened, it sent a pending buy order after calculating the price and stop loss from the fib levels I had entered into it. This saved me from having to constantly monitor the price. Had the price continued to fall, the pending order would not have filled; eventually I would have adjusted the ea inputs to catch the bounce off a lower fib level.
Your computer needs to be turned on and connected to the internet, and your trading platform needs to be running for an ea to work.
Hope this helps
'Fib' is short for Fibonacci. Using fibs helps with idntifying support and resistance levels to use in trading. Read about fib analysis at http://www.pfxglobal.com/fibonacci-a...irst-page.html
There are other ways to use fibs, but retracement trading is probably the simplest, and simplest is often best.
Fibs do not suit everybody; they just strike the right note with me and my only successful trading is done using them. I suppose the important thing is to understand support and resistance and the potential effect the s\r has on prices. I will not be so arrogant as to say that I fully understand s\r, but I am a lot clearer than I was when I started trading.
EA is short for Expert Advisor. This is a piece of software that sits on a chart monitoring prices and waiting for something to happen to trigger an action.
For example, the most basic form of trading is probably waiting for a shorter term moving average (say a 50) to cross a longer term one (say a 200) and then trading in the direction of the cross. A 'cross' trading EA would calculate the moving averages, spot the cross and send the order - freeing the user from the need to constantly check prices. This is only an example. Don't trade like this - it is better than tossing a coin but not much.
My ea was waiting for the eu to hit a resistance level. Once this happened, it sent a pending buy order after calculating the price and stop loss from the fib levels I had entered into it. This saved me from having to constantly monitor the price. Had the price continued to fall, the pending order would not have filled; eventually I would have adjusted the ea inputs to catch the bounce off a lower fib level.
Your computer needs to be turned on and connected to the internet, and your trading platform needs to be running for an ea to work.
Hope this helps
honestly i have been staying in front of the computer from around 8am - 2am for the past 2 weeks and i do feel very sickening as not all the trading went on smoothly but i believe with more knowledge, skill to analyze charts n all the stuff, i should be able to do what u guys are doing also i think the EA would save me alot of time and trouble plus i wont jeopardies my social life. I hope the day for me to contribute the forum will come very soon! till then i will always annoy u guys by asking some silly newbie question.
i am glad to join this forum because all the active members are very friendly and helpful. thank you guys. How nice if we could gather some day for a meal or something but i think most of us are far apart from each other. haha.
- #9,905
- May 25, 2008 6:28am May 25, 2008 6:28am
- | Commercial User | Joined Apr 2007 | 8,331 Posts
yea it does! thank you so much. I really appreciate it. I will definitely spend some time understand Fibonacci as soon as i finished my last paper on thursday coz i am still in uni u see it would be my last ever paper i hope! hahaha.
honestly i have been staying in front of the computer from around 8am - 2am for the past 2 weeks and i do feel very sickening as not all the trading went on smoothly but i believe with more knowledge, skill to analyze charts n all the stuff, i should be able to do what u guys are doing also i think the EA would save me alot of time and trouble plus i wont jeopardies my social life. I hope the day for me to contribute the forum will come very soon! till then i will always annoy u guys by asking some silly newbie question.
I have made every mistake going: jumping into the market just as it reverses and wondering why; blowing accounts by naively trusting useless trading ea's; trying systems at the rate of 3 a day; littering my charts with indicators. There is more, but no need to waffle on.
I have come to the conclusion that a trader cannot use a trading ea or somebody else's 'system' safely, until that trader can trade manually with success. There are many routes to being successful, but we have to find our own.
Even systems that a trader has used for ages with stunning success can turn to ashes in my hands. I believe this is because I am not in the head of the trader who devised the system; my own prejudices\hopes\fears get in the way. I would be prepared to risk a couple of dollars on a bet that this is true of most inexperienced traders.
Fibs have turned out to be the direction of travel for me. Even after discovering them, I made many mistakes. I used to watch with awe as traders posted things such as, "I took 160 pips from the bounce off the 50", wondering how on earth they knew the price was going to bounce.
The revelation came when I learned what 'the bounce' is. It is a movement off a s\r level to within about 50% of the next.
Here is where I am now. I take the long term trend off the daily chart, pull a fib on the 1h, wait for a retracement to 'bounce' off a s\r, place a pending order and sit back to reap in the profits. Ok, so not every trade is a success, but the good ones are beating the bad ones by a ratio of about 10-1.
I am not telling you to trade as I do, or even suggesting you do so, but the more ideas you come across the quicker you will learn, so here is how I arrived at my open eu trade:
Look at the eu daily picture. I have drawn a rising trendline merely to remind myself when I am looking at the 1h chart. I could have pulled the daily out still further - the trend has been upwards for ever.
Look at the eu 1h picture and you can see where I pulled the fib from a significang low to the recent all-time high. I could have picked any number of lows - just so long as there is plenty of room between the fib lines.
I wanted the 'bounce' off AL at 1.5715. Once the price hit this level, I set the pending buy half way to Buy at 1.5818. The advantage of trading this way is that the market is telling me which way to trade. Had the price continued downwards to 1.5615, I would have adjusted the fill price of the pending to half way between .5615 and .5818. I was prepared to follow the price down for quite a long time if need be.
I do not catch the beginning of big trend movements this way, but then I am not trying to - I would look to trade daily or even weekly charts if I wanted this. I am blissfully happy with 30-90 pips on a good trade.
I hope this offers some modest insight.
- #9,907
- May 25, 2008 8:42am May 25, 2008 8:42am
Same here. This ea is intended for LT trading. Seems to be able to spot the dips in an uptrend pretty well.
R
R
One that I am writing myself. There are probably ea's already that do the same job, but I love writing my own software; it allows me to code functions that work exactly as I require. It will monitor trades by chart, ticket number, magic number and so on, so I can use it to monitor trades from a variety of sources such as ea's and scripts.
...
- #9,908
- May 25, 2008 10:32am May 25, 2008 10:32am
- | Joined Oct 2007 | Status: work in progress | 1,009 Posts
Don't chase the market, Let the market come to you
- #9,909
- May 25, 2008 10:33am May 25, 2008 10:33am
- | Joined Oct 2007 | Status: work in progress | 1,009 Posts
Don't chase the market, Let the market come to you
I have spent huge wedges of time watching charts for nearly two years; it has taken me nearly all of that to start to make sense of everything.
I hope this offers some modest insight.
speaking of putting all the indicator in the charts to make sense to me... em.. seriously it doesnt work for me at all i just dont understand yet. so far were all base on intuition and information from this forum haha. honestly i feel kinda stupid when i am looking at the chart haha.
i actually kinda like the idea/way of u trading. i think it will work for me i should try it out this week perhaps u can give me some advice if u dont mind
i will say thanks for ur help 1st haha.. i am starting to realise the timeframe difference for the charts but i still dont understand what's the difference btw 1hr, 2 hrs, 4hrs and so on. also, what does line DZ, AL, 50"/50( are they the same) indicate? i wouldnt be too greedy on taking up loads of profits. as long as per trade is a profit it's fine to me of coz i wouldnt mind to rack up like few hundred pips if possible. not any traders would mind i believe. haha.
thanks for sparing ur time to reply my msg
- #9,917
- May 25, 2008 3:29pm May 25, 2008 3:29pm
- | Commercial User | Joined Apr 2007 | 8,331 Posts
i am starting to realise the timeframe difference for the charts but i still dont understand what's the difference btw 1hr, 2 hrs, 4hrs and so on. also, what does line DZ, AL, 50"/50( are they the same) indicate? i wouldnt be too greedy on taking up loads of profits. as long as per trade is a profit it's fine to me of coz i wouldnt mind to rack up like few hundred pips if possible. not any traders would mind i believe. haha.
thanks for sparing ur time to reply my msg
In the market, there are trends within trends. Load a chart on a pair that has been going longer then eu to get the idea - say usdchm. Look at each of the different timeframes one after the other and you will see a different picture.
Monthly, a pair might be rising, yet look at the daily and it might be falling, or rising on the hourly. All combinations are possible.
Gurus I have read recommend looking three time frames out from the chart I want to trade and trade in the direction of the longer timeframe. So, if I want quick in-and-out trades on the 5 minute chart, I should trade in the direction of the 60 minute tf.
This means that I should be looking at the weekly chart to ascertain the overall trend for my hourly chart trades. This seems like overkill to me, so I am happy to look at the daily. This is working ok so far.
The MT4 fib extension tool is customisable. My fib comes from info in Islanders thread at http://www.forexfactory.com/showthread.php?t=69499, a thread I must revisit, re-read and catch up on. I don't know if I am using ifibs in the way Isy intended, indeed I doubt it, but I am sure Isy would approve of any successful use.
The 'meat' of ifibs is the DZ-50-DZ zone - not sure but I think DZ stands for 'Decision Zone' and the most profitable trades are made in the direction of the trend after a bounce off one of these levels. They are not magical, so just think about using the MT4 fib tool to highlight s\r points and trade off them if you are interested in this sort of trading.
You can play with all this, and any other 'system' using the attached trading simulator I picked up during my travels around these forums. Instructions are in the zip file. The only thing you can't do using the simulator, is zoom out to longer timeframes; this is a huge disadvantage, but even with this the ea will help make your trading more accurate.
- #9,918
- May 25, 2008 3:30pm May 25, 2008 3:30pm
- | Commercial User | Joined Apr 2007 | 8,331 Posts
Also meant to say, ah_nen. Good luck with the rest of the finals.
Also meant to say, ah_nen. Good luck with the rest of the finals.
haha. i'm very happy to receive ur reply each everytime! coz it makes me understand more each time. i shall look at it the thread whenever i have the time. i am actually quite sleepy right now ZzZZz.. i have had enough of uni after freaking 4 years. haha.. cant wait for after exams holiday trips! by the way, what's ur opinion on the pair right now? i'm currently long @ 5776 i was actually scalping but unfortunately it went the other too bad. i will have to wait until it goes up again. any suggestion on scalping? i kinda like to do it, it's quite fun haha. also very risky.
another thing is, what program do u use to analyze the chart? i am currently using natwest( Cmc market maker platform).
