Not just swing trading. In fact all TA, chart patterns, indicators, chart types, candlestick patterns - all of it - was developed using D1 charts. That’s why all these things seem to daytraders to work less well in daytrading - they’re right, its true - they do work less well in daytrading.
Be aware also that almost all original TA work and research was done to build the foundations of trading using stock market price charts, so a major disadvantage to many TA techniques when then applied in forex there is no overnight closed session, these are a different family of D1 charts.
So, most people suggest focusing on one single stock/pair to trade, and I guess following that advice seems reasonable as the benefits are that I’ll get to be really familiar with the price development after a long-enough time trading it.
The issue I have with it, however, is that there will not always be tradable setups if I am limited to just one stock/pair, which would be especially true if I decide to focus solely on trading one time frame.
After listening to an interview with a successful trader, which said he is solely trading NASDAQ, I decided to take a look at it and saw a tradable pattern on the chart.
I’d buy around the 56.10 area (uptrend support zone?) and let the profits run till I have found a reasonable take-profit area.
How much does it matter that NASDAQ is on a downtrend on a longer time-frame, if i want to buy for the short-term? Does that make the trade more risky?
I am trying to wrap my head around some indicators. So far, i have been interested in using MacD, RSI, and WVAP - based on recommendations by a trader that goes by the name of StockMarketWolf on YouTube.
According to him, if the Dmac crosses above/below the candles, it’s either a sell or buy signal. The RSI indicates whether a stock is overbought or oversold - depending on how far it reaches either the ceiling or the bottom.
WVAP, if it’s below the candles, it’s a bullish signal, if we are above, its a bearish signal - don’t ask me why!
Funny noob mistake: i just placed a limit order buying for a higher price than it was in actuality, which cost me about 2% of my account. Glad i am demo-trading.
