My Basic Chart Analysis Method

[phil838]

Originally Posted by yantz

hi phil! i just finished reading your ebook. i must say its very well written and extremely easy to understand. and your mm is very similar to mine, very good for long term investments.

a while back, i was also playing around with price action. what i tried back then was to look for the number of pips moved from recent lowest low or highest high on the h1. eg if the price has gone up 60 pips from recent lowest low, enter long for another 40 pips. basically the idea that i have is that once the price had moved a certain number of pips, it should have already be in a trend and continue that way. i got good results from a few pairs that way but only during certain times of the day. those times are specifically at eastern 2am to 6 am daily. during those times, my sr is virtually nearly 100%. but outside of that time period, i think i scored nearly 0% . i'm poor fundamentally, but maybe if fundamentals are added in, i could've skipped a few of the bad trades.

in the meantime, i'm back-testing your method and it seems very profitable! i just need to check the charts every about 2 hours or so, so that i will not miss any action.

thx
yantz

That's one of the reason I like 4H charts and above. Because we're going for larger ranges of pips you don't have to worry about the fundamentals too much. Only really big fundamentals will move the larger timeframe charts. Small fundamentals that move price 20-50 pips isn't too much of an issue when your SL and profit targets are in the 150+ pip range, but if you were trading 1H charts with 40-60 pip targets then it would be.

I think your 1H strategy would work just fine if you stayed out during low volume times and threw in some fundamental analysis. I personally hate dealing with fundamentals though, but that's just me!

Also, don't underestimate how helpful price alarms can be! They can help keep you from having to check your charts every couple of hours. If you're looking for action around recent high/low areas just set alerts to go off when the price gets around those areas.

[helipip]

Hey Phil, Thanks for sharing, it really helps us newbies out. I'm going to give your method a try. oohh! and don't worry I'm sure I'll be asking for help. LOL