I noticed that trend lines are not always smooth and neither are the S/R. After finishing babypips. I had questions like which time slot do I trade in? Three ducks answered that. Then came, with one candle in my favor, I how many pips did i make and what part is the spread to the broker? Kind of have answered that.
I keep reading the FX brokers like to run the stops. So in a trend line, they will drop/elevate before continuing the trend. No book addresses this on how to address this and whether this is the reason so many traders drop out in the beginning.
For my own sake I am reading Steve Nison’s books on candlesticks as well as Wayne Corbitt’s book. I am learning to use Bollinger bands and Stochastic full alongside tick volume, and it looks good to me. My problem is creating the S/R and the trend line. I am able to but I always see a jump out of it before it continues on its merry path/trend line.
Are these fades from the banks? What else do I have to watch out that I could learn now rather than after defining myself as a seasoned trader?
Market is same in its behaviour for everyone ,One should do what market wants this time not what he wants from market. People who do work with patience and discipline they can make their future with fores trading. Market need deep analysis , planning and management ability for trading.
I was in your position when i learn to trade. i ever in a position don’t know which theory is right and which strategy is right.
For now i can give you some advise that i do believe can make progress in learning forex.
First you need to learn all basic things in trading online, especially analysis.
analysis include: Elliot wave theory, Fibonaci, trend line, pattern, support resistance.
than you can proceed with the strategy.
Many person thinks that indicator is more important than the candlestick chart. but actualy is the other way around.
if you read how indicator was made, most of it is the average of candle movement. such as (stoch,RSI,moving average, etc). so indicator is helping you improve your chart analysis. you should read the chart first than check with the indicator.
Banks actually following the winning side, whether they set the market or they follow the market.
Learn basic of pattern and elliot wave. and you will found some more question in the process and ask again in this forum. hopefully i will be available to help you or the other member will help you again.
This is true for futures, but it isn’t so at all for spot forex trading, because most traders are using counterparty market-makers as a “broker”, and therefore they’re all trading in slightly [I]different[/I] markets. The prices at which they buy and sell are [I][U]not[/U][/I] constant, fixed prices in an objective market which is the same for everyone.
Indeed, that’s precisely [I]why[/I] there are these constant discussions in trading forums and elsewhere about prices and trade-execution varying so much between different brokers.
I advise some caution, with those (to put it mildly): the “examples” in his books are among the most classic examples of selection-bias and confirmation-bias ever seen in trading literature, in that all the “evidence” in them is truly cherry-picked, often with counter-examples (sometimes even counter-examples incidentally apparent in the very charts selected and displayed in the books!) conveniently being completely ignored. Decidedly [U][I]not[/I][/U] a very good advertisement for the editorial services of his publisher.
This is just from my experience. Some market makers may engage in some “tricks”, but you can use some measures to defend yourself:
Use a well-regulated broker / MM (preferably in a developed country like the UK or Australia etc). Scrutinise their website and look for poor spelling, broken links, etc.
trade longer-term so your stop losses are wider. IF a market maker does gun for stops, it’ll be for small pips only. But if your SL is a hundred pips away, it’s not much of an issue.
stay away from exotic pairs like USDTRY or EURSEK. You’re just asking for trouble. Stick to the majors, and if trading longer-term (4H+), you can probably trade the minor cross-pairs as well (EURCHF, GBPAUD etc).
only deposit enough money with your broker to provide margin (don’t deposit your life savings). If the broker goes bust (as Alpari did last year when the SNB removed the EURCHF floor), you won’t lose everything.
I haven’t had much trouble with my broker over the last 2-3 years that I’ve been with them. Using a popular, well-regulated broker / market maker should be okay. Again, that’s just been my experience. The only serious “trick” that I routinely see are widened spreads during major news events or during the daily changeover. But since I trade the daily time frame, my stop losses are usually very wide, and I tend to exit my trades before a major news event.
Regarding stop hunting from brokers - its a myth (at least from 2014). there is so high competition on retail forex market no one broker will expose themselves in such dumb way. Main SL hunter is market, so if hit take it as just yet another losing trade out of dozens next losing trades.
Regarding drawing trend lines - it is useless. Price change is powered by a big traders (investors), so focus on them. Try to learn what they focus on when making decision to open a trade is it some fundamental factor, or something else. Like change in the interest rate. Always remember they won’t enter buy at highs and sell at lows. Always follow that principle and you won’t lose too quickly and maybe enter a winning side some time.
