Hi,
I am following babypips school lessons and I have just finished Grade 4 of Elementary Level. Now I want to get familiar with candlestick patterns and practice SMA, EMA and Fibonacci Retracement.
Please tell me what is the best time frame to practice those indicators?:19:
hi,
For Candle stick analysis you can refer “Japanese Candlestick Charting Techniques by Steve Nison”.
You can find this PDF on the internet. Instead of depending on Indicators, try to learn price action, trends etc. that will give you clear picture than indicators.
Time frame depend on your mentality. 4H or Daliy time frame good for beginers. You may go for shorter time frames, when u got some charting experience.
Hi rcreddyvanga
I found the site that you mentioned in your post. Thank you.
Yes, I also believe that using too much indicators for forex trading is not a wise idea. But I think one or two indicators should be used because forex trading should not be that much easy to trade without using any indicator.
In my opinion there is no best time frame for you. Different time frames have different opportunities and hazards. Your new, you want to practice you should be in a demo while practicing, so try the 30 minute, 1hour, 4 hour and daily. See within your demo account if you can set up more than one account. I know with MT4 you can, if you can, then set up a practice account for several time frames with same starting and leverage then trade and keep track on how you’re doing. Remember it’s not only important what to do, you also want to learn what not to do. Example what pattern shows a possible break out; on the other hand what pattern ends up being a false breakout.
As far as indicators go, again don’t limit yourself with an arbitrary number 1 or 2, instead use as many as you need to, to help you with your analysis. How you start is not how you’ll probably finish. Example when I started I used: several different indicators that told me the same thing with regard to: Trend, Momentum, Cycle, previous support and resistance. As my learning and experience got greater, the indicators I used got less and less.
The great thing about indicators is in most cases you not only learn about how the indicator works, you learn about whatever the indicator is used to measure. For example, you can’t learn about a trend alert, with out learning what makes up a up or down trend. Fibonacci, you not only learn how it works, but you learn about trends, pullbacks and reversals. It’s the same with most indicators.
Here’s a Fibonacci video that if you watch and apply the principles, you will learn about, trends reversals, pullbacks, stop loss, take profit areas, support and resistance.
Here’s a great video on Moving Averages; same as Fibonacci, you learn a lot more than how moving averages work. YouTube
You can also use these type video’s as a warm up to trading so you get in the right frame of mind.
Hope that helps
Gp
@ gp00053
Sir, Thank you very much for your valuable answer. I read it several times. I will watch the videos. I feel very happy I found this site early with the support of experts like you.
You should practice across all timeframes, with the common theme of looking for similar patterns and set ups in each. For example, the candlestick patterns occur across all timeframes, and even if you’re not going to use them in your trading eventually, you should learn to recognise the various patterns in all timeframes, as they do occur in all. A reversal that is signalled on a five minute chart will have five minute chart consequences, while the same technical reversal on a high level time chart will have similar consequences, which may occur across a longer period of time.
Most important thing is to enjoy the learning at this stage. Good trading to you 
Erron
Instead of waiting for a practice outcome on a live chart, i now scroll back (back to the start of the week, day etc) without being able to see the next candle on the right side of the chart. Then i go candle by candle forward to look for entries based on my strategy that i am testing. I make a call then click candle by candle forward to see if my strategy worked or not on various time frames per pair.
This way i can test most strategies much faster and with less emotion. When i find one that works out several + times in testing then i go micro instead of demo (might as well get familiar with emotions of real trading, even if it is only pence or cents lol) Can do this sort of practicing on any time frames till you find one that suites you (Personally i dont think there is a best TF othetr than the main, the one that shows the current and the entry tf, whatever tf’s they may be from person to person)
Thank you very much for sharing your method with us. Your method is very interesting. I will defiantly try it.
This is definitely a good methodology for back testing, but it doesn’t work so well on MetaTrader. MetaTrader makes it very hard to scroll one candle at a time, so that you usually see a couple of bars ahead. This is what they call the “hard right edge” problem with back testing on some charting packages.
Other charting packages such as Fibonacci Trader have an inbuilt functionality to display only one candle per keystroke, but they are not free of charge. And then of course there is Forex Tester, which is specifically designed for you to test trading strategies, and which displays one bar at a time. Unfortunately, it also comes with a price, as well as having a learning curve before you become proficient in using it.
Erron
Only one way to learn.
Small account ~$500-1000
Live, Forward practice (read: experience building)
Hunt intraday setups
Always Start with the higher time frame analysis. It doesn’t matter if you’re trading 1m charts, you have to know what is happening on the weekly/daily/4h/1h charts.
But if you hunt intraday setups, you’ll be getting at least 2 trades per week, and will accelerate your learning curve.
Ignore me at your own risk.
Thank you very much for your valuable advice. :40:
No problem. Just remember that you’re trading a market, not a timeframe. A timeframe is just one perspective on the entire market.
Looks like really bad advice to me. Stick to demo account until you can follow the charts, the last thing you need is the added pressure of financial risk when you are still learning
Are you planning to put this same post on every thread here?
Trading higher timeframes are always best. Personally I do not go below a 60 minutes timeframe. This means by trading on a 60M timeframe I would do my analysis on a 4hr or daily chart to plot my support and resistance zones. I will then use the 60Min to find my entries.
I personally prefer multiple time frame analysis. I look at the bigger longer-term trend on the daily or weekly chart then I zoom in to the short-term time frame to pick entries and exits.
it depend on your system trading. if you trade long term you can choose 4h, daily, short term you can choose 1h,30m
fibonacci retracement are best when used on higher time frame, 4h or more.
but it’s all depend on your exit strategies… scalp, daily or mid-long term strategy.
as candlestick pattern, use only broker who open at aussie market open.
the candlestick pattern could be tricky, different broker sometimes shown a different pattern result.
but actually the only tool you need is your own trading experience, best indicator is the price itself.
keep it up… keep learning… stay in the market… and may the pips be with you… always :obi-wan: :57:
the general rule of thumb, is that the higher the timeframe the more reliable the candlestick patterns are.
for example, a doji and a hammer on the 1 minute timeframe is much more unreliable when it comes to accurately forcasting future price action than a doji and a hammer on the 1 hour timeframe and above
I use H4 ,M30 and m15 for demo practice. These time frames give us better idea about market movement we can select right entry position with this. In very low time frame we can not know right about market because it changes every minute.