Hi! I started to trade for like just 1 year… and I thought I had a problem which I believed will solve all my trading problems: I did not know even when to start a trade. Like few months ago I finally understood how this entering positions must be made but now I face another big problem: I don’t know when to EXIT the trade… From the Web I found that the exit points are predicted using the market type and its volatility. I even read about ATR bands and their usage for finding exit points. I also saw that multiple time frame also effect exit points so if on H4 the market is sideways and ADX is low than on H1 or H30 I can expect a very quick exit from a trending situation, as the prices can retrace any moment.
So the main problem I think it is how to better predict the type of market that I will soon enter or how close I am from market consolidation if I am currently on a trending market. I usually trade on trending markets but on consolidation I stay away from market (another issue as I don’t know for sure when the market is really consolidating or I see just small corrections like at the start of big trends).
So my problem can be resumed as how to generally observe the exit situations and how to be sure in which situation is the market at a given moment…
Ok, now you understand what you need to know, you are talking price action, market patterns, this is what you want to concentrate on, forget the ADX, it isn’t easy to get the grasp of, but this is what you need to stick at.
Why not post a chart and give us your interpretation, I’m sure you’ll get lots of useful responses then.
I tried trading with patterns … but without success… the patterns are hard to spot and not always working… so if there is a flag pattern how can we know when that zig-zag will end? And how can we know that the breakout will be in a direction or another??
To be more specific- what indicators or methods must be used to spot correct exit points ??? As i said I heard about ATR bands but never tested them, another methods… I don’t know…
And what forum or websites should I use for better info??
You’re advising this guy not to use indicators, yet you utilize an indicator yourself to supposedly assist with entries & exits.
If indicators supposedly benefit your trading endeavors, then why shouldn’t they have a similar effect on his?
I don’t use indicators, what you are getting at I assume is the fact that I use the Volume ‘Indicator’, it’s not a technical indicator as such Technical indicators - MQL4 Documentation.
OK semantics pedantics, but what is provides is another piece of information as opposed to a calculation derived from the chart prices.
I’m not going to argue the point, I don’t get possessive about stuff, just call the Volume Indicator and exception if you wish.
Volume is an additional item that usually sits separately underneath your price chart & measures or [B]indicates[/B] the perceived strength of a move over a given period of time on the instrument you’re trading.
[I]The aim or objective of volume is to presumably & hopefully assist & enhance your observation, execution & successful conclusion of a trade.
The aim & objective of an indicator is to presumably & hopefully assist & enhance your observation, execution & successful conclusion of a trade.[/I]
If you click on the Insert tab within the task bar of your Meta Trader chart package the first box that appears is the [B]Indicator[/B] tab. From there it allows you to open up an assortment of [B]indicators[/B] of which Volume is one.
There’s no need to be ashamed or embarrassed about utilizing an indicator to assist with your trading objectives.
