Forex Day Trading

just read the eur pairs... on all H1 charts, the candles broken down the Daily HL's. are these trend change or correction? you tell me

so difficult for me to decide... so no trade until further study, anyone?

Price has broken from a congested area, so what is the most logical thing to look for now ?

Hourly chart.

No surprises it stalled where it did.

eur pairs are mostly in counter-trend moves, so no move for me until the next confirmation of [1] trend change i.e. move from the current low to high and then high to low, or [2] trend correction i.e it would resume the existing trend UP

correct me if i am wrong.
hope i can catch one of them on time



agreed! eur pairs all stalled for the moment!

it seems to me those largest financial institutions are "thinking" alike for price movements. too bad we retailers are not them, thou!

All we need to do is get on for the ride take a piece and jump off at then next stop

EU 5 min short as price reached the highs and showed indecision. Was looking for it to move back closer to the trend line but took this one anyway and was lucky it didnt move higher to stop me out I think.

Well price finally made it back to the trend line that I was waiting for.

Short position after rejection at the trend line, price moved around a bit at that area not really closing above the line though.

+20 pips.

Entered another short EU 5 min off the RN area, got a little lucky here with this one too I think, BE already entered and im going to hold to see how it goes, currently at +30 pips

Well there is some pips gone begging, BE hit. Was worth a try to let in run wiht some support broken to potentially become resistance however this time didnt quite work out.

Hi DW, I just wondering how you determine the current trend when trading the longer term TF and the 5 min eu. Do you use MA's (price above/below) or some other method e.g. higher high and lower lows ?

Cheers
Dan

Hi Dan

This is simply a visual check on the chart, if price is making lower highs and lower lows etc and obvious swing patterngs then we should be trending. A simple trend line helps also at times. I dont believe that you should need a moving average on the chart to "see" a trend, but in saying that if you find that having the moving average on the chart helps you identify them then you should use them. In trading you need to do whatever makes it easier for you.

Same should be said with ranging markets, they should be obvious on the chart when you are looking at them. 5 min charts during asian session you are bound to find the market ranging, simply place your lines on the highs and lows and you should be able to identify the range quite easily.

Key levels broken and holding as support and resistance are also good areas to keep an eye out for.

At times it may help to zoom your chart in a bit to see the bigger picture of what is going on.

Cheers.

Hi guys,

Here is a good example of some horizontal levels at work.

Hey DW,
We have a really similar way of trading the 5 mins. I was just wondering if you had any trigger to take the trade. I have tried a few things but hasnt worked for me. I do understand if you cant share it here.

Hi doggy,

Pretty much certain candle patterns at key levels in the market.

Well thats me done for the week I think, yet again its getting quite late here and I should already be sleeping

Been a choppy week on the charts which is always difficult to trade.

Lets hope next week gives us something a bit better to find some opportunities on.

Have a great weekend guys.

Cheers.

Thanks DW. I didnt take that much trade at all this week because of how the price was reacting. I think 7 or 8. But I still managed to get around 90 pips. Thats enough for me. London is closed. I am done for the week trading.

Looking forward to next week EU looks like it is trying to go up more. We have a bear candle day today till now but the day isnt over yet. If the US stock market rises up it might try to push the prices up. But if the price closes below 3750 I think we see the continuation move downwards. It will be interesting to see how the prices start for Asian session next week.

hi DW

I'm trying to change my style from scalping to longer term.

I hope you can spare some tips to get me started?
I made a beautiful +60 pip yesterday switching from scalping 1 and 5 minute charts to trading the 1 hour chart.
Today I tanked completely as I got caught on the 5 min again (-150 pip or so)

Which 3-4 pairs are good to focus on in the beginning?
Which time-frames do you mostly use?
What time of day are you trading? Strictly LND/US or other?

I noticed you didn't mind taking a chance on the EUR/USD going short as it had passed through a round number. Are you relying more on chart-patterns than "known" areas of resist/support?

How long have you been trading? And are you making a living from it, or do you have another job too?

Sorry for all the "newbie" questions, but I have had a rough couple of trading-weeks and could use a bit of assurance

Have a nice weekend!

Kind regards

Hi Skovjuul,

Ok lets see if i can answer some of these questions for you.

To start with as a beginner I believe if you are looking for some pairs to focus on it may pay to focus on the major pairs first. Now when I refer to the major pairs I mean pairs like EURUSD, GBPUSD, AUDUSD, USDJPY, USDCAD, EURJPY. The major pairs are more likely to provide you with some good movement each day. ( just as likely to move against you also )

The time frames that I usually trade are Daily, 4 hourly of the 12 pairs that I monitor and 5 min charts of EURUSD.

The times of day I usually trade are the Daily candles, the 4 hourly candles that fall in the start of the London session and the start of the NY session. 5 min charts I tend only to trade during the London and NY sessions (the first 2 to 3 hours of each respective session are usually the best times to monitoring the charts for opportunities). Occassinaly I will look at the Asian session if I am able to but prefer not to trade during this session. If you do trade Asian session simply be aware that most of the time during this session the market will be range bound so you need to be looking for that.

Certain candle patterns when they appear is what I like to look for, and definately key horizontal areas. I do prefer to trade away from round number areas but at times I will trade through them if the horizontal area is close to it, I do keep an eye on whats going on longer term also to help strengthen decisions made on lower time frame. Longer term trend lines etc can be key turning points in the market so it pays to keep an eye on the bigger picture.

I have been trading for almost 4 years now, I do still work another job. As I am based in Australia the London and NY sessions are at night time our time so that gives me the opportunity to easily trade after work hours. I check daily candles before heading to work each morning and place orders if needed, and then intraday charts at night our time, so it works out quite well. In saying that my long term aim is to be a full time trader, but my goal before I do that would be to have 3 X years worth of my salary banked away, therefore you are not relying on trading money to live from week to week. If you are relying on trading money to live from week to week and you have a bad week trading it therefore puts more pressure on you to make profit, this pressure then may lead to you "chasing" trades and putting you in the wrong mindset. So until I reach that goal I will continue to work my job along side my trading. Unless of course I am lucky enough to be paid to trade

There is nothing wrong with "newbie" questions, we were all new to trading once upon a time and have asked questions of other traders to help our learning curve. If I can, I am glad to help.

The last week was a hard week to trade as the markets were quite choppy, it is when you need to be especially careful or you will get whipsawed around a lot and take a hit to your capital. There is no problem in staying out of the markets for a day or two or even a week if you think the markets are going to be hard, it better to stay out if your not sure than lose capital.

I would suggest to you that start off trading Daily and 4 hourly charts, and stay with demo trading until you can show to yourself that you are trading with consistency and constantly making profits. Have a trading plan, write it down and follow it with discipline. Above all else ensure that you understand and practice good risk / money management.

The key emotion to be aware of is "GREED". You must not let this rule your trading decisions. After you take profit there will always be another opportunity to enter another trade. Also remember, trading more is not always the key to trading profitably, you dont need to take lots of trades to be a profitable trader. Essentially the more you enter the market the more you are putting yourself at risk.

I hope some of this helps and any other questions feel free to ask.

Cheers.

DW

Hi guys,

Start of another week and some rather large gapping on open.

USDCAD hourly, took this one short, see how it goes.