I am a new trader , have studied the School of Pipsology, and have made my own system.
The first part of course identifies the long term trend (I will trade using Daily , 1 hr , 15 min charts) , so on the daily I am looking to identify overall trend.
I thought this would be a simple part but I guess not… I have a system where I draw trend lines, and use 20, 50 EMA crossover and 100 SMA to identify the trend. If they are all in the same direction I move on to the 1 hour chart and look to place a trade there.
My problem is, one of the three of trend line, EMA crossover and 100 SMA is always pointing in the opposite direction, particularly EMA crossovers. Are these just fakeouts, can I ignore? If I do ignore, I am not following my system. If I don’t ignore, I can never place a trade.
Can someone please clarify the direction of the trend (up, down or ranging) on the daily, and perhaps if you are so kind give a short explanation why? I have three examples I am struggling with:
On the charts you post
USDCHF is waving down(lower lows/lower highs), so my bias would be short.
GBPUSD is consolidating its close to support so my bias would be long.
USDJPY is also creating down waves, short bias.
Yes Moving Average are the best tool for determining trend. But as all tools in Forex you need to undestood what they means.
MA are resume of the price bar during a certain period of time. So if you use MA from the greater time Frame you are using resume of resume !
My advice is to use MA on MN1, time frame One Minute. Use a fast like 15 and a low like 2000. Statically, 15 will always cross 2000, and for a certain move.
I’ll sometimes use the 9 EMA to help me identify price direction. Trend is a bit subjective however, as what could be an uptrend on a 15 min chart, could be someone’s downtrend on a daily chart.
Your eyes are the best tool to help you identify trend. Indicators are all just tools to interpret past data. So rather than let an indicator determine trend, watch how price reacts around a particular indicator.
I am new and have been starting to place OCO orders to catch breakout trends. At 8 am I place a pair of orders with a Buy Stop Order Entry just higher than the highest point of the London last two hours of consolidation and a Sell Stop Order entry just a few pips lower than the low of the session. I set my Take Profit and Stop losses at that same value of the hi/low difference in the London consolidation.
The problem is that I when the first of the orders to reach an entry point enters into the trade it cancels the second order right away (as soon as the trade enters into the market). But I want it to cancel order 2 when it reaches my Take Profit level of Order 1 of the OCO pair in order to avoid losing from a reversal.
My question is: Should the OCO orders (both the Buy and the Sell) both be Stop orders, or should they both be Limit orders, or should they be one stop order and one limit order to make it work out like that? Thanks!
I am using the Metatrader 4 platform, but I needed to know if I should place my two OCO (One cancels the other) orders as Buy and Sell Stops or Buy and Sell limits, or one of each. Thanks!
