How to trade on a monthly TF? | Forex Factory

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How to trade on a monthly TF?

  • #1
  • First Post: Feb 4, 2010 4:26pm Feb 4, 2010 4:26pm
I am looking for ideas/views on how to trade on monthly time frame. I am currently using monthly pivots to trade but just like any other technique they are not perfect.

I am also trying trendline breakouts. Any ideas from fellow traders?
  • #2
  • Feb 4, 2010 4:50pm Feb 4, 2010 4:50pm
You need to have big account and be patient.
Economists have forecast 9 out of the last 5 recessions
  • #3
  • Feb 4, 2010 5:03pm Feb 4, 2010 5:03pm
Quoting kingfisher
I am looking for ideas/views on how to trade on monthly time frame. I am currently using monthly pivots to trade but just like any other technique they are not perfect.

I am also trying trendline breakouts. Any ideas from fellow traders?
Hi kingfisher,
i think use monthly TF as ur guide to exit/enter/trend..use small TF (1 - 4 hrs TF) for entries..good luck..

ps: u dont need big acc..patience yes..
  • #4
  • Feb 4, 2010 5:07pm Feb 4, 2010 5:07pm
Quoting microsuck_36
Hi kingfisher,
i think use monthly TF as ur guide to exit/enter/trend..use small TF (1 - 4 hrs TF) for entries..good luck..

ps: u dont need big acc..patience yes..
If you use proper MM and monthly TF size stops then you'll be 200 by the time you make decent money.
Economists have forecast 9 out of the last 5 recessions
  • #5
  • Feb 4, 2010 5:53pm Feb 4, 2010 5:53pm
Quote
If you use proper MM and monthly TF size stops then you'll be 200 by the time you make decent money.

What i have found that on a monthly TF, there are 2 main trends which takes place- First the price makes up/down trend for 1-2 weeks, then hits resistance/support and start another trend for 1-2 weeks.

I can be more profitable on monthly TF then daily/weekly TF but that trading mindset of taking trades on monthly TF needs to be developed/practiced.

The only way to make money in this crazy volatile market is to capture big movement/large pips with small positions.
  • #6
  • Feb 4, 2010 5:58pm Feb 4, 2010 5:58pm
Quote
Hi kingfisher,
i think use monthly TF as ur guide to exit/enter/trend..use small TF (1 - 4 hrs TF) for entries..good luck..http://cdn.forexfactory.com/images/s...m/thumbsup.gif

ps: u dont need big acc..patience yes..

Hi Mate,

I agree with you...loads and loads of patience is required to trade on monthly TF.

Right now as i am looking at the market, most of the pairs are now flirting with monthly S 1. Only the next 1 day price action will tell if they are ready to move up.

But the point is to trade on a larger frame, i should have the patience not to trade anything during the week and wait for market extremes like the current one.
  • #7
  • Feb 4, 2010 5:59pm Feb 4, 2010 5:59pm
Quoting kingfisher

The only way to make money in this crazy volatile market is to capture big movement/large pips with small positions.
Sorry but that is utter crap, there are plenty of traders making shitloads from capturing small movements with big positions. In fact its the best way to grow your account quickly.
Economists have forecast 9 out of the last 5 recessions
  • #8
  • Feb 4, 2010 6:05pm Feb 4, 2010 6:05pm
Quote
Sorry but that is utter crap, there are plenty of traders making shitloads from capturing small movements with big positions. In fact its the best way to grow your account quickly.

I agree but day trading is immensely tough and thats the reason we have 95% who fail trying to day trade.

As per Larry Willams ( the guy who made millions out of commodity trading) the best way to start trading is position trading.

This is what Larry Williams say: http://www.ireallytrade.com/

1) Learn the basics of how to position trade, where you see a futures market that is ready for a big move so you take a position. No day trading here; you can have a job and still do this spending maybe 30 minutes a day. This is what most people should be doing. It is the easiest money.

2) Swing trading. No day trading yet. Look to get in and out of a trade in 3 to 5 days. But, I caution you, this is not where you begin. You need to know, and have traded, the basics first.

3) Short term trading. OK, you want to day trade? This is the final step --- but I will tell you it is the hardest, the most difficult, and the riskiest way to trade. It is the dream of so many, to day trade, but it is usually a nightmare. I don't think you are ready for day trading until you have been trading for at least a year or more.
  • #9
  • Feb 4, 2010 6:41pm Feb 4, 2010 6:41pm
Quoting kingfisher
I agree but day trading is immensely tough and thats the reason we have 95% who fail trying to day trade.

As per Larry Willams ( the guy who made millions out of commodity trading) the best way to start trading is position trading.

This is what Larry Williams say: http://www.ireallytrade.com/

[b][size=2]1) Learn the basics of how to position trade, where you see a futures market that is ready for a big move so you take a position....
You said the only way to make money was capturing longer moves, what does this have to do with it? Just because Larry Williams says noobs should start on longer TFs?
Economists have forecast 9 out of the last 5 recessions
  • #10
  • Feb 4, 2010 7:03pm Feb 4, 2010 7:03pm
Quote
You said the only way to make money was capturing longer moves, what does this have to do with it? Just because Larry Williams says noobs should start on longer TFs?

Yes for newcomers, trading on higher TF is good way to make pips. One is cutting all the noise and focussing on bigger TF.

From monthly TF, then noobs can start weekly TF and then on daily TF after a year. If one can trade daily TF profitably, definately lot of pips.

But to try to trade daily TF early in their careers, i feel is the very important reason that many end up blowing their account.
  • #11
  • Feb 4, 2010 7:57pm Feb 4, 2010 7:57pm
Higher TF is good for a beginner, but i think you'll find monthly to be very very slow, especially if you're basing your trades on price action. Weekly may be better to provide you with more experience.
  • #12
  • Feb 5, 2010 10:47am Feb 5, 2010 10:47am
Quoting FXTradeX6
Higher TF is good for a beginner, but i think you'll find monthly to be very very slow, especially if you're basing your trades on price action. Weekly may be better to provide you with more experience.
I agree. Monthly is just too slow - it's just one candle per month. Maybe you should try daily - it's one candle per day so you can still keep your day job.
  • #13
  • Feb 5, 2010 12:12pm Feb 5, 2010 12:12pm
Quote
Higher TF is good for a beginner, but i think you'll find monthly to be very very slow, especially if you're basing your trades on price action. Weekly may be better to provide you with more experience.

I agree..monthly is too slow. There are approx 20 daily candles on a monthly TF. Right now i see most pairs are sitting on monthly support 1.
  • #14
  • Feb 5, 2010 12:33pm Feb 5, 2010 12:33pm
To be honest I think monthly timeframe trading should be called "investing" rather than "trading"!

You may also need to be better aware of the fundamentals when trading monthly charts as you really are in for the long haul!

To be fair, I get your point about newbies trading the higher timeframes but I think that dailies will be sufficient to get started... maybe weeklies if you are really struggling with it.

Regards,

Dan
  • #15
  • Feb 7, 2010 12:21pm Feb 7, 2010 12:21pm
Quote
To be honest I think monthly timeframe trading should be called "investing" rather than "trading"!

You may also need to be better aware of the fundamentals when trading monthly charts as you really are in for the long haul!

To be fair, I get your point about newbies trading the higher timeframes but I think that dailies will be sufficient to get started... maybe weeklies if you are really struggling with it.

Regards,

Dan

I agree with you DANUK. I trade on daily time frame- looking at daily candles but with a monthly perspective.

I have found if daily candlestick shows certain patterns on monthly support/resistance or monthly pivot levels, those are strong signals.
  • #16
  • Last Post: Feb 7, 2010 3:51pm Feb 7, 2010 3:51pm
Quoting kingfisher
I agree with you DANUK. I trade on daily time frame- looking at daily candles but with a monthly perspective.

I have found if daily candlestick shows certain patterns on monthly support/resistance or monthly pivot levels, those are strong signals.
Agreed! I particularly like daily patterns off of weekly support/resistance levels... they can be a very good way of spotting big moves in the markets.
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