I’m gonna say this from experience, new trader look a small time frames because the prices move fast, and they want to make money fast. for that reason the larger time frames does not look appealing to them.
thanks for ponting that out TakeMoney.
Jado
I think they (new traders) like the smaller timeframes because it is believed that you don’t need as large of a stoploss to ride out the drawdowns regardless of how fast price moves.
Whatever speed price is moving at for a particular pair at the time, it moves at the same speed on all it’s timeframes…I know from experience that I’ve waited on a trade watching price on a 5min t/f tick around for hours in a 20 pip range…hardly fast money…lol.
Ok heres a trade that I just recently took. GBP/USD daily chart. See no system or indicators. Just plain and simple trendlines, support resistance, and fibs.
Yes, the overall trend is down but I see it reversing. this is due to the fact that its not making lower lows and its making higher highs than previous. Head and shoulders formation for those who know what im talking about.
As you can see in the chart, the trendline, support and resistance. I went long on the last dip where the candle went down to the FIB .618, support line and the previous trendline.
I bank 200+ pips on this trade. The trade was open for a few days. I closed it because of the NFP report. It will probably go up around the support line at 1.4884 or even pass it.
I post my trades on my blog at forexpicks.wordpress.com. I just recently started posted them. I’m currently in 2 trades now.
following a trend ain’t easy, it sound like your trend have no beginning, no resistance/support and no end. So where exactly you start to follow the trend and where to end it? it cannot be all the time up and all the time down. So it is not as simple as you say :(. Significant correction at support and resistance level is also important in order to avoid getting caught and wasting time at unnecessary open position (because you think its all going all along the trend) during support and resistance level.
The most important part when following a trend is not necessarily the trend will breakout all along and you can setup position based on trend direction…support and resistance can take sometimes And correction can be significant.
Sorry for the confusion but I put a better explaination on my blog.
The uptrend started on 3/11 on the chart that I posted. Once it broke throught the previous down trend line, I waited for a retracement. So when the price came back down to the previous down trend line, support line, and fib retracement; that was where I enter to go long. I actually waited for a candle formation then I went long.
The trend line, support and resistance lines you see on my chart goes back further then what I posted. I just zoomed in so you can see it better.
If you can’t spot a down or up trend, then I don’t believe you should be trading. Just look at any chart and start drawing lines. You will begin to see the price action off the lines.
What, in your opinion, makes a s/r line relevant. There are so many direction changes on any chart that I could fill it with lines, so how does one qualify as worth watching while others are not. I have heard people say that they only have a few lines on a chart. How do you determine which ones to draw in.
Hahaha…of course I’m enjoying it. Someone is an unhappy person. I’ve been doing it for years and make well over 6 figures each year.
Yes, I have a lot of losing trades…but overall I’m positive. That’s all that matters.
I’m not telling everyone to do what I do. I’m just posting to show people how I trade. Trendlines, support lines, resistance lines, and fibs are all that I use. I’m pretty sure that there are many other trading methods that work. I’m just showing mine. And No, the way I trade is not the holy grail.
Believe what you want to believe. I do just fine. No one is forcing you on this thread buddy. Do I owe you some money or something? Hahaha
Jaguar…to me, the more bounce of a line is the more relevant. I don’t just trade off the lines itself. I wait for convergence of trendlines, s/r lines, and fib levels. I also use stoch just as a filter.
The main thing for me is candle formation after it hits those lines. Morning stars, evening stars, double top, double bottom, etc. Google it and you can see the formation setup.
I wasn’t successful at all trying S/R, TLs, Fibos, etc even though I read most of BRV’s thread on FF. BUT I didn’t incorporate candle formations either so perhaps if I utilize those I might have more success. I do like watching Stochs, RSIs, etc do their thing but of course they lag. I am following this thread with great interest, thank you. d
Yeah the candle formation should help eliminate alot of false triggers. I use the stochs as a filter just to see when its in the overbought or oversold area.
If any of you guys were following my trades I posted on my blog, there was a big retracement this morning. Taking away about 150 pips on each trade. But like I said in my blog, I’m still in the trade. Looks like its turning around now. But if you are the faint of heart, you should get out at a breakeven. If you drop down to the 1hr chart, you can see that it came to the s/r line. I see a morning/evening star forming that is why I’m still in the trade.
See, I told you this is not the holy grail. You just have to know what to do when things like this happen.
Great to see another trendline / fib / S/R / CF trader - there’s a few about on here now! Absolutely is the best way to trade, no indicators required. Keep up the postings!!
Thanks shandy. Yeah I believe trend trading is the most effective to me.
As for the trades, I jumped into the GBP/USD too soon. I should have waited but oh wells. I’m still sticking with it. It should be turning back soon.
The other 2 trades are looking good. I’m keeping them open. Ride it until it turns.
I also scalp in the morning as well. I basically do the same thing but on a small timeframe. (ie 5min and 15min)
Made some good money this morning. The market was trending real well this morning.
All 3 trades are in positive territory now. We’re up about 100 pips on each trade. Still riding them because it still looks real good.
I would go long on EUR/JPY or GBP/JPY too but I already have many lots open so I won’t jump on these trades. I might wait for a little drop and jump in. Cuz I really like the way it looks.
…how long you been into forex anyway?