I’ve been into babypips school and right now currently in highschool. I’ve been reading everyday and came up with some “toolbox” like what the school been teaching us. Here are my few toolbox that I would like to practice since im just a beginner.
Standard Method of Pivot Point - Support and Resistance
Fibonacci Retracement - Support and Resistance
Fib Sticks
Stochastic Indicator and RSI
Will try to combine them with Ichimoku Kinko Hyo
My question would be, what would be your advice for me? Am I into the right direction? Or is my plan too complicated for itself? And if you have something better for me to learn. What would it be?
Also for the pivot point. Is there a way in which I can plot the pivot point some around 3 days ago, 2 days or maybe 5 days ago? Just for some back testing.
Mate, if possible let’s focus on price action (full chart movements) more rather than trading tool; yes you can use technical tools for filtering your entry & exit points, but don’t believe any technical tool that much.
Thanks for this mate, I was wondering on the word you said about price action. What would be the best thing for this, sir? You mean support and resistance?
I completely agree with all the reply’s.
I highly recommend to master the price action first, just price action alone will make you highly profitable trader. If you start with indicators then you may pass important information that price action is showing you.
And by price action I mean is not just reading support and resistance levels, the most important thing in price action in my opinion is will the buyer or sellers make money and trade from the levels where there was strong buying reaction when you want to long, also you must understand how institutions manipulate the markets, I created a short video on price action how I traded today’s EuroUsd market, the video is below and let me know if this is confusing, I want to make sure you understand the right way to read price action and this will make your trading life much easier
Thank you for this. I will definitely watch it. Regarding price action and support and resistance. Is it okay to practice in a lower time frame? 1M-5M-15M just to see how it goes or it is better to start practicing it in the higher time frame which is more relliable than to lower ones?
Higher timeframes work better because there is more traders involved in that specific setup, in 1 minute chart only the traders who trade 1 minute or lower TF will see that setup. What I do is I take the trend and important levels from daily and 1H chart then go to 5 minute and find trade entries there. To practice I recommend 1HR 30M 5M charts.
Though I am not so matured trader, I personally think that it is wise not to rely on only one trading tool. Rather a forex trader will need to use a combination of some reliable trading tools. Thereby a greater emphasize on only pivot points can limit your trading decision process and you may end up with wrong decisions.
Some technical tools work better than others, and some tools will work better for others than yourself. I think what the previous replies stress about the importance of price action is having a non-lagging simplistic indicator of market movement (prices directly from exchanges and dark pools) used in conjunction with different indicators that fit the person’s strategy developed over time. Some indicators can be the tools you mentioned or they can be support/resistance, or economic news, or different charting time frames, or long- and short-term market psychology. I personally use 1m, 1hr, 4hr, daily, and monthly candlesticks. You might use 5m, 15m, 4hr, and weekly bars if you want. Some indicators will look different through the lens of different time frames. Although you can develop a strategy from a toolbox of indicators, consistent profit and proof of concept come from time and mistakes.
Different people take differently to it. It requires a specific set of skills and type of personality that one either already has, or that one needs to develop in order to succeed. Namely you need to be very dedicated, very disciplined, you have have an eye for pattern recognition, you have to be able to follow a trading plan and not deviate from it, in other words you need to be disciplined.
Hey i am new here as well but from the knowledge that i have obtained so far, the news plays a major role in reading the full chart movements. Remember, yes there are patterns you can read but the main movements on the charts are from the news and activities taking place in the respective countries. Hope this makes sense
