Very interesting method. I like it.
Hi why do you use just 1 hour charts and day charts because Iām looking at being a trend trader and last week i did great 26/0617 but this week 3/07/17 Iām doing terrible and Iām really working hard to make sure i become consistent and profitable because i would this to be my new career Iāve only been live trading for three weeks but i have been practicing and basically i started with Ā£2000.00 i made Ā£420 and withdrawn that and id something so stupid and didnāt looking at the spread of a currency i know really dumb. And lost a bit chunk Ā£900 i did have a tight stop but it was slippage that killed me. so my account now is Ā£1105 I have a part time job which just covers my bills and Iām 22 so not too old but not young ha-ha plus would you say ignore 30 min and 15min charts ?
Hi can I get the law of chat from u too thanks
Good and interesting post I have had a quick look at some of the replies and I think any one of them can give you a reliable indication of the trend strength.
When you say strength of a trend, do you mean how sharply/aggressively (magnitude) the trend is moving, or how likely the trend will continue in the same direction (duration).
This is my fav topic, some of the responders have certainly hit the nail on the head. I think there is a growing curve from indicators to not. I still use a double billinger bad for a crutch and a CCI for momentum.
But more often than not I am just using the USD index aka DXY as my indicator and just trading what I see.
We are traders not old fashioned investors. Trade what you see and as far out as your spyglass will comfortable allow.
As the saying goes the trend is your friend, Kill you losers and allow your winners some breathing room, when the price action changes so has you trade, kill it asap.
Its not about maybe its about winner take all and that my fellow traders is your edge.
Want a 5B plus example check out Paul Brittons latest podcast with Covel.
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I like the ADX with DMI - you can see where you stand with buyers and seller. The DMI divergence gives a good indication of trend strength. Also helps to identify whether overbought / oversold conditions is a trend reversal or pullback.
ADX/DMI great for trending conditions, but needs an oscillator in ranging conditions.
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By the way, HA candles is also very good trend indicators, but not sure if Fib will work with HA candles.
Yea! Read, Read, Read and read some more. Youāll read until your eyes pop out. I have read book after book, and Al Brooks price chart bar by bar and that is exactly what it is, bar by bar. Itās good for newbies to read and learn, most of it youāll learn here for free, but to get an overview of what profitable traders do, books can help. But I think all this learning and reading is leading to one conclusion, study the charts. After a while your probably gonna figure it out. I myself have noticed this after reading the charts in so many different ways i am seeing patterns, in the charts. You can tell a strong trending market or weak market and volatile market, by looking back several weeks or days, fundamentals, news, indicators, price action, you name it, all good ways to trade, just finding what is your cup of tea is the hard part. Core training is essential, learning the basics then the system will follow. No there is no Holy grail, if there were we would all be rich!
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Hi Marco91, please how can you separate the DMI from the ADX, and how do I set those numbers you mentioned ?
Thanks a lot for this. This piece of advice seems to be recurring everywhere I look. Iād do well to follow and implement this as the foundation for my method of analysis now Iām starting out in this trading game. Thanks again.
Hope you have levelled up your game with sound money management practices?
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So i believe that Price Action is best. But if you use any indicator, it would be the MACD. But you would be looking for Divergence to see when the Big Players are preparing to turn the market around for either to get a better price to buy or sell at (Pullbacks) or end the pullback to go into the trend (Trend continuation). MACD is great for momentum, plus there is so much you can do with it.
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I must say that I agree with your perspectiveā¦ 
Nature itself is cyclical 
Gratitude for the reminder.
These two indicators are my favorite.
The download link is above, if you havenāt downloaded it yet
This is a very good advice for any new trader (under 1 year experience), I suggest adding pivot points (standard) to this pure chart, cause these levels has sentimental value in addition to technical importance.
Also I very highly advise all new traders to follow the news that shape and affect the general environment of the market. This is a good guide to understand the sentiment of the market youāre entering instead of solely relying on technical indicators (USD action against other currencies in the past few months is a good example for this).
This general sentiment is sometimes even more important than daily economic data released on economic calendars - which is another important source you also should pay attention to, to avoid getting surprised by sudden short time price actions.
Make it your 1st priority to understand why is price moving in the direction it does, ahead of entering any trade. Once this became your permanent approach, and you know where youāre going every time you want to start trading, then sure itās good to use technical indicators for a better guidance in the way (like a flashlight) as I do too.
Have profitable trades everyone.
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Niceā¦ any ideas on development of trading strategies which have competitive advantage? Where do we start our research, how to pose the problem and correctly look for solutions?
I think try to find the relevant content step wise for the things which you are looking for or any specific topic. There are a lot of good videos on youtube. For example, start with taking a high level view of all the strategies in the market. When you understand several of them, jot down the strategies which you want to further study.
There is no such thing like relevant questions because your curiosity drives you to success. Developing strategies and indicators to trade can be developed through experience which comes from losses and gain. Hundred percent guarantee cannot be given by any strategy or trader. It is that we have to constantly improve the strategy which we are using.
Knowing relevant content is good but do apply that knowledge in the markets or else it will be of no use. I used to trade with half knowledge through XM but did not gain anything substantial, though I had learned about various time frames and chart reading skills. When I took a step back and moved to social trading platforms like etoro and Fxview I read about other experiences like when they enter the markets, leverage to use, etc.