Looks like an all right forum.
A little bit about me. In the past couple of months I’ve been doing some rather general reading about ‘trading’ (not necessarily just forex related), with the view to eventually have an income stream in addition to my day job. Perhaps a rather ambitious goal, granted; but one which I will attempt to plan well, just as one would presumably plan well for any business venture. One thing that attracts me to forex is its extensive trading hours compared to other markets.
I’m very much still learning at this stage, about how to approach the whole thing logically - that is, to make trades with a positive expected return, all things considered. It’s not possible to monitor all variables - but important ones I plan to, on the technical side that is.
When different variables align that signal a certain likely direction a pair is to take, that’s when I would trade.
I’m currently experimenting with analysing certain
- price action based analyses: candlestick formations, key support/resistance areas (whole numbers, previous rebound/bounce points) and
- commonly used technical indicators (bb bands, moving averages, rsi etc), insofar as many traders will be on the look out for these and basing their trading decisions on them
Putting it all together, my approach would be when different factors co-allign, it makes a trade more likely to succeed. .e.g.: rejection candlestick formation [i] in a double top area [ii], in which a moving average line is also intersecting [iii].
Have a good day!