My first ever Forex strategy - daily 10 SMA, what do you think?

Beginner Questions
21

Hi GP,

I just spent a bit of time reading a website called forexcycle.com. Loads of really interesting analysis in there. Has helped me to look at the bigger picture with some of the pairs I read up on something I wasn’t looking before. If you have any recommendations of useful websites for cycles or any of the 5 in the list, please let me know.

Thanks again.

22

If you are on a meta trader 4 or 5 platform go to “code based” at the bottom of the page and you’ll find an indicator there called “cycle Identifier.” It basically shows where a cycle when the leg up or down.

When I started using indicators. I heard a lot of traders on this site, tell me they trade no indicators that’s the only way to go, indicators are (sheet i), price action on the daily is the only way to make money etc Because you are like I was and you don’t know any better, you might take it as gospel and it may not be. I learned a lesson very early trading forex, " Anybody starts of their statement with Always Do or Never Do, keep your guard up, because there are very few times that you’re are dealing with an always or never; Depends is what you’re generally dealing with.

Then next big lesson for me, is to remember most of what you get will be opinions not facts. There is a difference. Don’t worry about the indicators are telling you. The most important thing to remember is because you started a certain way, that may not and probably not be the way you finish. I started on the daily, 4 and 1 hour, 3 templates, most of the time 2 indicators for each of the 5 parts and traded what I belived they were telling me. I added the tech analysis from investing.com and empire.com, so in addition to what the indicators told me to do, empire and investing had to agree. So if it was long, then empire and investing had to both be in agreement and say Strong Buy.

As I got more experience I stilled worked hard but added in working smart. Today I look at a candle chart with a EMA and volume indicator and I look at the picture. I don’t need any indicators to see trend, momentum, cycle support and resistance in most cases. But if I did and was not certain, I would see what the indicator has to say. The first part of the journey is the “what’s happening” the second part of the journey is the "why it’s happening and how can I get an advantage. Indicators not only helped me tremendously with the “what’s happening,” they dissected it into 5 parts of a trade so down the road when I was looking at the “why” I could draw on that experience.

For the earlier reason explained by my butcher. The journal is key. You mark down what you did, why you did and how you made out. If you do that for six months you will see, you’ll be making the same mistakes a lot less. Again that’s what happened with me. I scan all the pairs quickly 30 minutes after NY open as long as there is no major or med announcements that can effect the pair I’m looking at coming up in the following 20 minutes, I start looking for a trading opportunity.

If you start with a single or couple of majors you start to be able to recognize opportunity very quickly. The other thing because you trade them so much, you begin to take note as to what event will afecct them and how. So don’t worry about what the indicators are telling you before you know it, you won’t need them to tell you anything, but you know which ones to use it you do. Good Luck
Gp

23

Thanks for Welcome me and I’m very exited to start reading and your web baby pip is cool.

  From

Syma1477
24

Thanks for the big nice news

Syma1477

26

Hi Gp,

I live in Thailand and saw your reply when I was on my way out to work this morning and only have the opportunity to be in front of the computer to reply now (it’s now 9pm here). I wanted to reply sooner because you have been kind to provide such good explanations.

I have downloaded the “cycle identifier” indicator, could not find it from code base but Google it and just downloaded and installed on the meta trader 4 I’m using. Interesting indicator and very simple layout, which I like. I will spend the next few days learning more about this indicator because just quickly including this as part of the strategy I’m working on it looks like I will be taking less trades but should increase winning percentage overall. That is if I only trade with the main trend cycle - when the leg has bold green or red colors. Not had much time to analyse but this is my first thought.

I started this whole Forex journey because of babypips.com did not plan to do Forex trading but found it one day and was hooked. Read everything in the website and at first must admit did not understand a lot of it. Babypips says that journals are very important and I started to do it but now after going into trading more and more, I can now see the real value of doing the journal before it was more like “well I will do it because it has been recommended”. I like the explanation about the butcher :slight_smile:

Many thanks