I am relatively new to the trading and working on developing EA, and also learning to slowly trade
this Friday I was trading on GBP/USD and at the end of trade session the following occurred
For myself, working on developing an EA wouldn’t be something I’d try to do when relatively new to trading; I’d want a [I]lot[/I] of experience, before trying that (if I tried it at all).
Personally, I don’t trade from indicators. The only indicator shown on the two charts you’ve posted which I trust much is the MACD (though I wouldn’t use exactly those settings, myself).
If you look at taking potential trade entries just from the MACD lines, when the MACD line is either above its midline [U]and[/U] above its signal line (long), or is below its midline [U]and[/U] below its signal line (short), I can see six possible trade entry signals on the two charts you’ve posted, five of which could actually have been profitable trades with sensible trade-management, but the sixth probably not. I’m saying this only with the benefit of hindsight, of course; it’s very anecdotal and in itself it doesn’t prove anything at all, but I do think that’s a potentially valuable use of an MACD.
Not by using additional indicators - that’s for sure.
It’s easy to attribute predictive powers to indicators, because it’s such an attractive and appealing proposition and so much more approachable than studying the price movements in and of themselves. For this reason (among others), there’s an easy “trap” for inexperienced traders to fall into, which revolves around the whole concept of assuming that if an indicator or combination of indicators is “giving false signals”, one can/should try to improve that situation by attempting to filter out some of the false signals by adding [I]additional[/I] indicators. But this “technique” (if it can be called a technique) increases the degrees of freedom of the method, making it more backfitted and therefore typically less predictive (“too much specificity/ not enough generality”, in statistical terms).
I’m not quite sure I understand your question (sorry :8: ) but all price movements are caused by imbalances between buying pressure and selling pressure. Trades being executed have the potential to move prices, depending on the availability of counterparty volume at their specified prices.
I was mainly pointing out the last 15 mins or so, if you see in the M1 chart every min the price was up and down and up and down it was so fast so i thought is there Scalping algorithms that can cause the market price to change?
or this is just a random pressure between buying and selling that occurred during the closing as you mentioned?
Could you be more precise what are you talking about? because its hard to understand from what you have posted since I can’t figure out which trading platform you use…
hi
sorry for not making it clear
i was refering this section of the chart, i was looking at it live and withing seconds the price just jumped up and down
and i thought no way i can have the speed to trade in these conditions.
so i assumed it was lots of EAs at work
