This is Felicia and Belle with our first post at Babypips!! We are 2 full time forex traders who aim to share all their knowledge and experience in the world of trading for free!!!
We believe that trading is one of the best ways to financial freedom and we hope to help all of you out there by sharing our trades and how we trade!!
After going through the tough journey of learning how to trade, we want to help as many people as possible to break out of the rat race.
Hello, thanks for sharing !
please can you give me some good advice to trade metals ? I have been trading currencies only … and I dont know much about how to trade metals well !
thanks in advance !
Whether a currency pair is going to go up or down depends really on the trend and what timeframe you are looking at. A pair might be in an uptrend in H4 while downtrend in H1 and vice versa. In order to make pips and $$, you need to understand what time frame trader are you and then trade in the trend of that time frame.
You will need to understand the concepts of fractal and multiple time frame analysis as well.
Here’s how I do my trend analysis. Assuming my reference timeframe is H4 for EURAUD. I will use the week high and low to determine the trend.
Higher high (HL) + Higher low (HL) = Uptrend
Lower low (LL) + Lower High (Lower high) = Downtrend
Here’s the chart for EURAUD. Currently, to me it is in a downtrend in a week by week basis.
if you have been trading currencies successfully, you definitely will be able to use the same method to trade gold or silver profitably. This is because all financial instruments obey the law of demand/supply as well as greed and fear. Therefore, they will behave the same way over and over again as prices movements are caused by humans.
The way I trade metals, fx or indices are pretty similar. The only difference is the instrument I use to trade them. They can be options, spot, CFD etc.
I only trade with the trend because it is your only friend in trading. It is the invisible force that moves your trade to your take profit level and therefore do not betray it.
Here’s my trend analysis on Gold on H4. It is currently on uptrend in H4 but it does not mean I will just buy at any price. I will wait for a harmonic pattern to form on H1 before going long. If there are no patterns, I will skip the trade.
Markets seem to be consolidating and I have spent some time updating some technicals for EURUSD, AUDUSD and NZDUSD.
EURUSD
This pair is in a downtrend in H4. But in H1, we can see it is stuck in a triangle and there is a potential inverted head and shoulders pattern which might signal more upside. I am skipping this pair for now because the story in H4 and H1 does not match.
These 2 pairs are stuck in a wedge formation and I will favour the upside because in H4 we are in an uptrend and I will always do a continuation trade of the preceding trend when there is a consolidation. This is because I am always with the trend! Countertrend traders will always certainly be punished in the long run because they always want to pick tops and bottoms. =p
My only position now is a long NZDUSD. See my previous posts for the set up.
Felicia here…hee back from a trip.
It’s the year end holiday season so not really trading much but I am currently long on Dow Futures on a harmonic pattern.
PM me if you want more details on how I trade harmonics!
