Hello
Well as the topic I need your helps to re-correct my trading plan so could you please helping me?
firstly 6H chart with 10SMA and 20SMA and Ichimoku senkou span to identify main trend with 5SMA (HCL/3) which is used to identify small reversal in main trend(For Example- if we guess the main trend is bearish but one of candle closed above 5SMA then I wait again candles close under 5SMA to enter a trade )
Next 1H chart with Daily Pivot line ,pivot support Resistance and trend lines , 14 period RSI , 21 period double EMA. and Fibonacci lines ( If I identify that main trend is down looking at 6h chart then I look at 1H chart for Candles close under 21 double EMA and !$ RSI fall under 50 line and draw Fibonacci lines)
then check 15min chart candles patterns with pivot lines and Fibonacci lines to enter market and look for exit trade when market reach to Fibonacci Lines
However I trade only Euro based Cross pairs and on the other hand I care Fundamentals like Labor Markets, PMI,ISM,Interest rate,Inflation targets, CPI,PPI.GDP,Retail sales but I don’t have a clear direction how matches these fundamentals to my trading plan
I’d not trade fundamentals initial release, but watch after, some releases can affect the markets for days. I trade without any indicators, so can’t help you with those. My plan is more focused on being consistent, studying the psychology of trading, how my emotions interfere with me before during and after a trade, and journal keeping, but while I journal the trade, I also journal what I’m saying to myself
I can see that you are familiar to the Economic Calendar thus you should focus more on that. Some of these News Releases create new trends regardless of their outcome. Technical analysis is mostly Speculation,putting more emphasis on Fundamental Analysis will give you a perfect entry in the Market. Forex is entirely driven by News Releases and majority of the biggest moves come from that.
Hello Hashitha, my suggestion is for you to make a plan that is based on learning how price behaves, rather than mechanical stuff. To be honest, if there was a purely technical way to trade and make guarunteed profits then everyone would do it, and it would stop working. Rather, learn how price reacts from key support and resistance levels, about price behavior, about candlestick and pattern analysis. All of these things will start moving you in the right direction.
Whilst @krugman25 doesn’t really say very much here which appears to be helpful, I think what he does say is profound ! Probably all that really Needs to be said !
So much so that I quote it as a repetition.
There are all sorts of indicators, many of which work SOME of the time and I do like to have indicators on my chart, but a couple of fairly simple ones. Strictly however they are not neccessary.
Every time you take a trade, you need to know exactly why you are doing it, in detail and have thought it through.
My advice to all newbies, is to get a demo account going and just trade it. Don’t use it as a real account of say $10,000. choose the amount of money you are going to fund your first real account with and just identify the amount of money you are going to be content winning or losing on each trade. So if $5 loss is about as high as you would be content with in real life, Use that for your position sizing.
Then just trade it using all the knowledge you have and watch THIS happen time and time again !
When that stops happening regularly and sometimes you can get it working in the Right direction, then you can consider the possibility of putting real money in the market.
In conclusion then, TIME in front of a screen, with money (real or pretend) in the market is the real educator. Skimp on that - at your peril !
I suggest you to include trading bias in your trade. How to have a trading bias? I personally set my trading bias based on previous candle, mainly daily and weekly candle. For example, last Friday daily candle close bullish, so on Monday our bias will be bullish.Then we will look for good location for entry. Monday and Tuesday follow previous daily close,Wednesday/Thursday previous week close…More to discuss on that.
