Hi. First of all, thank you for reading my thread. I’ve been studying the Forex market for the past year. Started with EAs and various automation software and realized that they fail or will fail in the end. For the past week or so I started studying hard the PA (in babypips school) and candle sticks trading (book) and I can really say [I]it’s beautiful[/I]! It’s so liberating to free yourself from lagging indicators and messy busy charts. Now I rely on one single indicator: me.
I will be posting charts showing my analysis and I want you to criticize it - especially how I plot[B] my trend lines, SR and Fibo levels[/B]. Maybe some of the terms I use are incorrect or even my thought process - please point that out as well.
I only use a couple indicators: Semaphore - but its sole purpose is to make easier to spot the swing lows and highs candles. You might also see a green or a red dotted line on the charts - these represent trigger points to either buy or sell, according to how I plot them on the chart (part of an EA - however I control the EA, it doesn’t tell me what to do). The last candle shows a time - that’s the time left until the candle closes.
So let’s look at my first pic: AUDCAD pair. After a little bit of ranging, price fell sharply then an uptrend started to form. Like the majority of uptrends, there should be some occasional pullback and those areas should be monitored closely as they could bring the most pips. I use the Fib retracement tool whenever I see a pullback.
In this case, the Fib levels didn’t tell me much: level 61 was tested by the 2nd newer candle - I can’t say that is a support level as I need at least 2 attempts at testing it. I also know that a retracement at level 61 or higher labels the uptrend as weak, which means it could collapse anytime. However, some good news to sort of strengthen level 61: it intersects with the purple uptrend channel line I plotted. I am tempted to buy now. What are your thoughts? Is my judgement right?
Thanks.
Eddie