i mainly trade the Dow Theory becouse of an german Author Michael Voigt.
Now i came to a new group of guys which also trade a similar way but never make a Trade (haha) becouse the price is not in the fair area.
It works like that
-------------------if the price is on the point of high they short it to the point of control
------------------- for long trades the same … point of low----------point of control
-------------------- if there is a good signal for a trade but the price is in a wrong area they dont make the trade
The last 90% of Trades i could not make so i really think its too hard of a filter
I never heard of this before but they say its very good
If u guys think its a great tool could you plz tell me the name of it for mt4-5
I know what you mean about a lack of trades for your system. I have never used dow theory but have experienced what you are talking about. My mentor 7 years ago was all over the internet with his system and free webinars. I had however exeprienced a lack of entries with that system. He has almost disappeared from the internet today. This may not be a bad thing as it may have a high probablity of winning when you find it.
Also, I feel that the majors haven’t provided much action on the longer term timeframes for many years. I feel this may be due to the currency traders at major banks being caught for illegal communication and trading large amounts in the same direction together.
Also, I see many “mentors” on websites like forexsignals.com come and go. I do not suggest any new person pay them their fees of something like $100 a month. Rather use that money to practice a strategy you think is good.
I believe that shorter term timeframes are what should be traded these days. Due to the lack of direction on longer term timeframes. I say this because after events such as the bank rate change or non-farm payrolls, you may find that many traders are “on the same page” and I find my system to have higher chances of success under these circumstances when I get an entry signals and when I see that others are seeing what I am seeing.
"Dow Theory is help understand how structure of price movement and use for define zone in chart. By the way, there is no tool to identify high or low. We will know an answer after price movement.
Some traders use oscillator tool such as stochastic and cci to defind possible high/low. "
I have to say that’s brave. I don’t have the courage or confidence to do that so I get in with the usual 2% risk to the SL and then add another 2% trade when I’m up 2% and then another.
Sometimes this has gone far beyond expectations but usually the price action peters out and I get out at just about aggregate break-even.
