sorry I meant D1 and not 1D.
I love to see the candles as they form without any indicator on my candles but I also understand by experience that candle formation alone is not sufficient information to make trading decisions. Candle formation pointing to current market trend and momentum direction will always make you a consistently profitable trader that everyone desires to be. With this in mind you must understand that news reports of currencies actions and their pricing are done based on the daily chart reading. The implication of this is that any serious trader trading below the daily time frame must have an eye on events happening on the daily chart. and when you trade on a much lower time frame like I do (15 min) you must consider the time frames that are in between the time frame you trade with (at least 2 of such time frames in my opinion) and the daily time frame.
How you do this while still having your bare candle sticks formation in front of you is a decision of what approach is more comfortable with you as a trader for this checks. As for me I have customized them digitally so that i can see them at a glance on my 15 mins time frame per pair that I trade (this is because I monitor 15 currency pairs for trade setups) while still having my candle formation to consider.
I hope this is of any help.
@campione, in order to risk 2% or less on your next trade, you need to focus on the following details of your account.
What is your account balance now? Calculate 2% of that amount.
How many pips do you want to risk on your next trade? Select a trade size so that risking this number of pips equates to the amount you calculated above.
For example:
Suppose you have Ā£10,000 in your account. 2% of that amount is Ā£200. At the current GBP/USD of approximately 1.30, that equates to around $260 you can risk on your next EUR/USD trade.
Suppose on your next trade, you want to risk 130 pips on EUR/USD. On a micro lot (1K Euros, or 0.01 volume) you are risking 10 cents per pip, so 130 pips would be $13. That means you could trade 20K EUR/USD or 0.20 volume.
A) The higher the time frame, the more significant the level. An s/r level on a lower frame may be insignificant on a higher frame but an s/r level on a higher frame is significant on a lower frame. If you identify a s/r level on a 4 hr chart that is also a s/r level on the daily/weekly chart, thats an indication of a strong level
B) If the current swing low/high is the highest/lowest price has been for some time, its a strong level and will show up on higher time frames. If there is a recent swing low/high that is higher/lower than the current swing low/high, the level isnt as strong.
C) Major s/r levels were probably also major s/r levels weeks/months/years ago
How to draw s/r levels:
A) I start on higher time frames, zoom out and begin by placing a horizontal line on the highest high and lowest low that may currently be in play.
B) Next, I move the crosshair up from the low or down from the high untill I find the next horizontal level that appears to be a good āfitā for my next s/r level. I look for horizontal levels with the following criteria: 1) levels where price tends to āgravitateā 2) levels that tend to act as support when price is above and act as resistance when price is below 3) levels that act as a base for a major breakout 4) levels that were approached by a major breakout without being violated by another high/low or a close above/below 5) support levels that become resistance and resistance levels that become support after a breakout thru the level 6) levels that are reached for or touched by long shadows
C) Move to a lower time frame and repeat the process above. I usually start with the weekly or daily then move down to the 4hr. I wont go any lower
D) When finished, open the time frame you execute on and clean up/ fine tune the levels.
Hope this can be of some benefit to you. Also, if you dont mind the suggestionā¦I highly recommend using higher time frames.
Basically there is no fixed reason or fundamental base for technical reversal. For example the value of company shares or interest rates of banks etc. Most of the time it reversed because of the market condition which is decided whether it will go down or rise up to attract their buyers or to buy or sell. Thatās why traders need to understand the market conditions clearly and select a credible broker to analyze the market perfectly.
āā¦ select a credible broker to analyze the market perfectly.ā sorry I didnāt understand how broker can help me and prevent me from loss in such this condition? In my opinion, if you mean broker can send me daily analysis of market, If that stuff is trust-able and valuable, the broker should be millionaire so they donāt need to run a brokerage company.
Sorry for the late reply. Been busy with work so never log in baby pips. For price action, u can google. The other thing is experience. I also donāt know how to fully explain to u. All this is base on the experience. For me is Iām using 10min chart. N see the previous candle. And take action from current candle. U hv to observe than u understand what Iām trying to say.
Sorry I didnāt reply before. I think traders use various kinds of moving averages to look at average price. I donāt much like indicators usually, but emas are useful. I usually use the 20 ema. I was looking at the original picture you placed on June 22nd. It looked like you sold on an inverted hanging man candle. Right after that, there was a hammer candle. It didnāt show the time frame. In looking at your Daily chart pictures you posted on June 3rd, it looks like you were trading against the up trend at a recent support. Now, maybe you were really trading off the 5 minute chart, and you had a valid entry according to your plan. In that case, sometimes, we will all lose trades no matter what our trade plan is. As they say, it is part of the game. Well, I donāt know if I did any better at helping you. I am very big of risk to reward and planning for losses, since we all know they will occur. Sometimes, it has been a known thing that the market made a big move because some guy at a firm pressed the wrong button. I guess he was fired?
Hey buddy, that pattern is known as the āPuking Camelā, you never ever trade the āPuking Camelā. If you do, well, ummm, you know.
Hehehehehe just goofing off, but watch out for the low volume during the summer, the low volume in and of itself can alter what a pattern does, usually you end up with a lack of follow through.
First of all, please stop trading 5 min charts. Like trying to dry off under water. The wind blew, the direction changed, etc. You mentioned having difficulty identifying a trend? Well, a trend is stair-stepping, higher highs/ higher lows or lower highs and lower lows. But you seriously shouldnāt be on the 5 min charts. Itās just noise. You want to get some good advice? Check out Dale Woods on YouTube. Solid trader. New people need a mentor.
I entered on the 4th bearish candle, before 4th candle closes. The small red triangle on the 4th candles wicks shows where I placed the sell market order. That time I placed the order, the candle isnāt closed thus price jumping up and down until candle closes price. Are you sure you are seeing a hammer before my order placed on the 4th bearish candles?