I have 3 mandatory criteria that a chart must display before I’ll consider a trend-following trade, plus up to 9 optional criteria which are then used to prioritise the preferred targets. The mandatories are 20EMA must be above the 50 (for an uptrend), the 50EMA is sloping upwards, and the 50EMA is above the 200. The optionals are equally basic, e.g. number of consecutive weeks with a weekly close above the 50EMA etc. etc. Obviously, each trader would pick their own depending on how many trades they want per month, their risk tolerance for failed entries, etc.
Once I have a target I’ll get in on any price rise after a price fall as long as my order isn’t at a new high: any pattern that fits that bill will do: if its a really high-scoring trend I will just use a single day price fall and set a buy order at its high. entry patterns aren’t key to success.
Hi guys
I’ve started forex about 4months ago but I am still confused I get by analyses wrong and end up placing bad trades. Please could you shed some light into what I should start from and what rules I need to follow and if there are traders we can copy to get the hang of it , how do I access it?
Thankx
I just posted my rules FFS. Apart from deciding on your account capital risk % and whether you want to take a higher frequency of trades with shorter MA’s, its all there. I have no rules for intra-day trading as I don’t believe its for beginners.
4 months is not enough to begin to make good money on forex. But it’s enough to become familiar with the basics. Your question is about basics, trading rules. There’re lots of them. You just need to stop being lazy and read more useful information in the forums.
Interesting concept. Can I ask what is the pip number you use to enter again - is it 100 pips as in the example or is that just for simplicity of explanation? I am thinking to trial this pyramiding in conjunction with another trend entry method. Is the number the same for all pairs or based on an average daily range perhaps? Thanks
100 pips is just for simplicity. My entry to stop distance is always based on TA so its never a round number. So let’s say its 183. I then use 183 as the “step height” to build the position. This is aggressive, as most traders either only add a smaller second position, I go full size for all trades. And most traders would wait for some new entry signal or at least favourable TA before adding a second trade, whereas I just wait for 183 pips from entry.
Of course, the rules for confirming the trend still apply when it comes time to add new trades - if the trade looks suddenly like its going to reverse but hasn’t yet hit my stop-loss (this does happen occasionally) I would get out of all trades on this chart and close the outstanding pyramid order.