New in forex trading

Beginner Questions
83

GU as posted yesterday night where I said its tough call and if you are not sure do not enter.

Well the idea of yesterday is a sell so today is a sell holds true.

GU D TF

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Current look of EU D TF.

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Keep trading simple.

The trick is in watching the price in the candle sticks.

Dont make things too complicated by adding too many indicators etc etc.

Happy Pipping.

84

[B]Need To Know[/B]

  1. Wave Patterns in a real chart.
  • No need to be an Elliot Wave expert. Just watch and learn on how prices move in a real chart. Especially Higher Highs HH and Lower Lows LL. ( helps with TP and SL )
  1. Candle Stick Patterns
  • First 6 basic patterns will do.
  1. Support and Resistance.
  • I am not big on these, but basic knowledge is always an advantage.
  1. Currency Correlation.
  • Read up on what this is. It helps when making a buy or sell call in general. Again no need to get your PHd on the subject matter. Just read up on what kind of an animal this is. I dont trade a single pair but I have my favorites.
  1. Market Bias.
  • Get a general idea what this is.
85

[B]Trading Tools / Parameters.[/B]

  1. Time Frame ( TF )
  • Day TF for market bias
  • Hour 1 TF for entry, SL and TP
  1. Indicators
  • None
  • Candlesticks only
  • [B]Warning. Adding Indicators to this without knowing what you are doing will cause you to loose pips / money. [/B]

3.Trading Hours.

  • All market hours. Monday to Friday. The only thing that matters is valid bias and entry.
  • Preferably UK open ( 3pm GMT + 8 ) to US close ( 5 am GMT + 8 ).

4.Stop Loss ( SL )

  • None / Imaginary [B]*Warning, not recommended for newbies[/B]
  • Practical SL. Previous wave peak. Or previous D TF wave peak if entry is on today’s HH or LL.
  1. Holding Period
  • Rarely more than a few hours. Max one day. Greed occasionally makes me hold longer.

Take Profit ( TP )

  • 40 to a 100 ++ pips per entry. Ability to read waves really helps.
  1. Entry Per Day.
  • Maximum of 2 entries. Ideal is one entry per day as only one valid entry is available per day if you look at it technically.
86

[B]Entry Triggers on D TF [/B]

  1. If yesterday was a buy, then today is a buy.

  2. If yesterday was a sell then today is a sell.

  3. Watch for the 6 basic candle patterns

  • watch for the 6 basic candle patterns that indicate a reversal on D TF. When that occurs, wait for a reversal confirmation candle to complete before taking the trade.
    Example : when there is a hammer or tweezer pattern on your D TF Chart, wait for a confirmation candle in D TF to strengthen your analysis.
  1. Entry is based on H1

  • easiest way to trade when direction is known is to enter when price crosses the opening of D TF candle. Hold for about 40 pips.

  • Look for HH for a sell and LL for a buy on H1 TF. Again candle stick patterns or even support and resistance areas can be used as a guide for entry in the H1 chart.

The beauty of trading with market bias is, even if you made a mistake or entered too early on the H1 chart and it is going against you by 40 or 50 pips, you can still confidently hold the trade as you know where it will end up.

Its as simple as that. Keep it simple.

Happy Pipping.

87

That’s your main problem. Pick a system…ANY system that directs you to buy low and sell high. demo trade that system for AT LEAST 6 months. Then start with a small micro acct. After you are profitable for 6 months trading micros…move up to minis, risking no more than 1% of your account on any trade…compound your profits.

88

Sharebazar I am going to redo this thread and post newer charts in this link

http://forums.babypips.com/newbie-island/39634-pure-price-action-dummies.html#post266971

It is a bit messed up here as I did not intend to share trading methods earlier.

So If you dont see any updates here, just jump over to the other thread.

That is if you are following… :smiley:

Happy Pipping

89

Hi Nikitafx thanks for your support, if you can please post here, Sorry for not reply to the post,I was trying to sort out my financial problem, I tried few things in this time but not working, I will follow it from now on. Thank you once again.

90

Hi Nikitafx no problem if I don’t see any post here I will look into the other post. I feel good to come back to post. I am very much thankful to you that you are helping the new trader.

91

Hi Nikitafx, any new chart updates?

Every man dies. Not every man really lives.

92

Please do check out the price action thread given above.