Hello everyone, I’m studying/learnig trading for quite a while now.
I decided that because of my time etc, I prefer the 4h and daily chart but the only think I can’t decide is what strategy to follow.
I don’t use indicators, maybe MACD for divergence. But I like naked trading, dunno if i can only trade using support and resistance.
I’m watching some videos now about market geometry, patterns, waves, pitchfork. I quite like it and i’m thinking again to start testing things with that but I dunno a lot and how to apply the things I’m learning.
It feels like everything is not working for me.
Your lucky you haven’t yet started trading with real money - the never ending options for trading methods can drive you crazy.
If you like naked trading then start there because if you are not 100% ok with the way you trade you will second guess and change approaches - neither of which will give you consistency.
It almost seems to me you are learning too much!
Forget this idea that you need to understand everything about technical analysis - you don’t and neither should you.
When you accept that losing money is a part of the game (not intellectually - but subconsciously) then you will stop trying or learning all these styles - and will settle on one approach.
If you think things are bad now wait till you start with real money - after your first couple of losses you’ll be saying your approach doesn’t work and will be looking for ‘better systems’.
Currently your likely having unrealistic expectations of finding something that wins 75-80% of the time.
There are ways of attaining such results but it’s likely this that is causing the indecisiveness in choosing one method.
So lets say I really like support and resistance levels, I like price action at this levels. I sohould stick to this no matter what and keep improving that right ?
That is a good start. Mark out the obvious S/R levels on the pairs you are following (4H or daily, I like 4H for this), determine the trend (you can do this visually or with the help of a MA), and you’re all set. I would also recommend using pending orders rather than market orders. Let price come to you.
Thats the type of chart I like to see and study!
At that point I wait for a indecision candle and wait for the other candle to go up or down that candle and enter the market. using Finnobacci levels to see where the price might go.
I think I should stick to that type of trading!
Any more info about this type of trading ?
Depends on your strategy. It’s smart to wait for either a clear rejection of that resistance level or a break through it in the form of a daily candle, or multiple candles at a lower time frame. You can see bulls and bears have been battling because price has consolidated for a few days. Rejection could mean further downside, which would be with the current trend. A break up through could mean a change in trend direction, possibly up to the next resistance level.
Or, if you draw a trend line connecting the lower highs (chart below) price could even turn around right there. You have to be prepared for anything.
Fib levels can also show you where price might stop and retrace before continuing. I don’t use them very much but many do successfully. Again, don’t clutter your charts it just gets confusing.
There will be ups and downs so don’t get too discouraged when there’s some volatility. Make a decision and stick to it. As long as you have your SL in a place where your trade becomes void if it’s hit then you will only lose what you expected to lose.
Patterns are good to know, I have a lot of fun with them. I use them mainly to trade break-outs. Here’s a good example of a break-out trade using a long-term triangle pattern:
Hey check out one of my posts, I can’t give links in here but just click on my name and find the post. I trade just like you on the daily chart using only the bollinger bands, market structure, and price action. Feel free to shoot me a message if you have any questions
You should stick to that way of trading where you are comfortable with it. It is completely okay to not understand everything about the technical aspect of it. Try to follow your strategy and stick to it. You will have to be prepared at all levels. Good luck.
