Long Term Strategy

Hi everybody,

I saw somewhere, but don't remember where, about people who has problems trading the US hours etc. Personally I have a problem and will appreciate any advice. I'm only available from 12am to 2am and 3pm - 6pm EST. I was thinking that it seems that I should have a longer term view for trading as it will not be possible to do the daily thing. Is there anybody that maybe trade the MACD divergence longer term? Any other advice on which time charts to use? I was thinking of using a 1 hour or 3 hour chart for spotting divergence and trade that, or go with the basics of support and resistance? Any advice will be welcome.

Thanks

Icantoo

I don't know how long you've been trading, but working with a longer timeframe will typically be better for your schedule and your account balance. The longer timeframe you use, the more well defined the trends become. It has worked very well for me to stop trading on the 15M and 1H and move to the 4H and daily timeframes. One thing you should look out for with these longer timeframes is upcoming news releases. I ignored these in my early days and was on the wrong side of a interest rate hike without even knowing it. Like you, I have a limited scheudle, being in school, so I tend to trade these longer timeframes. As far as your question about MACD divergence, I don't have very much experience in that, but the one thing I would say is to not limit yourself to one indicator or system, especially if you are relatively new to the game (maybe you aren't). Read as much as you can, study price action, and if you decide to use an indicator, make sure you fully understand what it means and how it is derived.

Hope that helps,
andersenws

Thanks Andersenws,

May I ask which currency pair you are working with and what other indicators you use?

Thanks

I trade the EUR/USD exclusively and have been doing so for about 7-8 months. At the beginning, I was really into all the cool, colorful indicators, however, I have since backed off that and I am more into price action, pin bars, moving averages, and the very common indicators, such as RSI, and a little MACD. I find those are my favorite ways to trade now. While I do not trade the news, you must always be aware of the effects the news has had on price. For example, if I see a pin bar, I always check to make sure it wasn't the result of news that day, because it may not signify a change in trend or whatever, it may just be the events of the day. I hope this makes some sense and I'm not just rambling .

andersenws

And if you want to check out some of the stuff I talked about, James16 talks a lot about price action in his James16 chart thread. It is lengthy but read every bit of it you can. Do a search for pin bars on this forum, I think they are a great tool if used correctly.

Andersenws wants you to look here, in case you haven't been there yet.
Perfect for longer time frame trading, which is where I'm heading
http://www.forexfactory.com/forexfor...ead.php?t=2331
Peter

Thanks for the link Peter, that is the thread I was referring to.


andersenws

I do three types of trade two are longer time frame. Here it requires patients to know "when to get in". Watch a favorite Pair and learn it. What makes it move? What news is important? Then wait for a High/Low that looks at it's Limit. I am on my Annual Trade now USD/PLN I open my position @ 2.9950 set my stop @ 150 pips with no Limit!!! I keep an eye on this "Booger" But, the time seemed good. Zloty is at a High against the Dollar and it just seemed right for the pickings. Now is too late for this trade!!!!!! I can sit on this for 6-12 months. IF, the USD begins to recover in time, not hurry (Patients) I am hoping for 7-9K pips on a two click trade. Click to Open and Click to close. You can do this with any pair and I would suggest a person who has not done this use a pair they familar with. Watch for the Highs now, things like GDP, CAD and EUR against the Dollar. WAIT!!! Get that high that just can not do anything but, go back the other direction. Watch when you can set a gernerous Stop Loss and two clicks. Try with a Demo, you may be very surprised. This not happen often, but, when the time is right, I feel it an easy trade that build an Account up and not down. You can breath easier when you about 200 pips in the money and can move your stop loss into a profit and not worry.
I thought I should add this; This past week I did commit to move my Stop Loss 200 pips into profit. So, I can not lose now, just, I hope I win more. This is not a Greed type Trade, but, well planned and "Patient" dictates I stand "Firm"! If, it works, I just made a good Annual Salary!