What is 8EMA?
8 Exponential Moving Average
The heat map shows many FX currency pairs, and many others also. My Japan link was just one example.
BTW, there will come a time when scalping on the shorter TFs will take its toil on your emotional control. Keeping glued to the screen is a recipe for eventual failure, and why most newbies eventually move to the higher TFs.
That’s not to say that scalping traders don’t succeed, because some do very well. I follow one pro trader who scalps indices live, and while he is consistently successful, he needs to take long holiday breaks away to preserve his wellbeing.
Cheers.
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When you’re starting out in TA, its worth checking the charts for just one pattern and in just one time-frame. Keep your thinking clear. Know what you’re going to look for before you start searching for it.
If you find a potential bullish pattern on, for example, a EUR-based pair, take a look at the other EUR-based pair charts - don’t expect to find the same pattern but make sure they are at least mostly bullish in the same time-frame.
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In the beginning, it will be both tough and challenging. However, if you put in the time and effort, you will eventually become an expert at interpreting charts.
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I completely agree with you on this, as a newbie I do face challenges in reading out the chart patterns but I have been trying to learn and interpret the charts and I believe that with time I would be able to do it smoothly.
Yes, when I first started trading, I felt lost because I had no idea what I was doing, but as time passed, I learned more about it and was able to comprehend it.
It might help some newcomers to TA to recognise that patterns start looking like something else and then gradually develop into a defined form. Patterns do not just suddenly appear on the chart.
In fact most patterns are born as a trend. So all bearish reversal patterns start as an uptrend. So do all bullish continuation patterns. If there isn’t a consistent and easily recognisable trend during the development stage, the pattern is likely to show as a weak form on the chart and to be difficult to recognise. This also means its likely to under-perform what the text-books say price should do on coming out of the pattern.
Its good to “story-board” what an uptrend does or might do when it reaches a price and then starts to pull back. This might help in identifying the key price action which will help identify the pattern that’s forming.
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Thank you for this
Yeah. Of course, I study and follow chart patterns, but in my more philosophical moments sometimes I wonder whether either they contain a universal truth that alludes most people or they are a huge fallicy that has everyone fooled 51% of the time. I wonder if those 10% of succesful traders are predetermined by chance, but we are all looking for a pattern…
I think most of us have felt the same way when we are learning from scratch. It will take time for you to comprehend and understand the technical terms. Chart reading can be hard for a beginner. But one day you will be able to read the charts with ease as if you are reading a book. I am sure you will get there soon. So, just keep trying.
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Yes, it happened with me as well. And chart patterns are a great tool for predetermining price action.
I experienced this when I first started, but over time, I began to understand what it all meant.
During the initial times I had this feeling of being lost since everything seemed so complex to figure but reading some trading books really helped me to enlighten my knowledge in reading charts. Initially I began to study candlesticks patterns and now I am confident about the chart pattern analyses.
HI! Buddy, Can you recommend any books that would help me in grasping chart patterns better?
Hey, you I’d recommend Getting Started in Chart Patterns by Thomas Bulkowski. Its quite informative!
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Being a trader requires extensive market knowledge. It takes research and analytical skills to monitor broad economic factors and chart patterns. So, if you get lost looking at the patterns, it is recommended that you read some trading books which will enhance your knowledge.
Focus on one pattern that is reasonably common. See Thomas Bulkowski’s thepatternsite.com. Avoid the patterns with gaps - all his charts are D1 and not usually forex so a pattern dependent on gapping will not be good for forex or any intra-day work.
There are 28 significant forex pairs to scan for a pattern. Don’t look for any other patterns.
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Put me on this table, sometimes I get confused and lost. The market really is wide and requires efforts to master.
Bars on time frames D1 and under are so random that it almost seems like it’s done on purpose.
I’ve tested so many different variables on the daily charts going back a full year: Buying the opposite direction every day, buying after an up day, buying after a down day (and vice-versa), buying 2 days in a row then shorting 2 days in a row. Results are never positive.
But, once you get into weekly charts things start to make more sense (to me anyways).
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