Can you guide me how we will be able to know what is proper high and proper low so that we can open a sell or buy position accordingly to get some profit. What is the timeframe you look at - is it 30 minutes or one hour candle sticks or what. Please help.
That depends on your trading strategy. What time frame do you trade? If you trade the H1 than on that chart is where you apply your strategy, if you trade M30 than that is where you do it.
The Daily is a good place to start. Especially when you accompany the highs/lows with price action patterns ( e.g pinbars ); can make for some good trading.
So what’s your overall strategy like? ( throw up a chart for discussion )
Cheers
I understand that daily chart is good…but since I am very new here, I don’t want to take any risk and want to get something in intraday trading. In that case, if I follow H1, then do you think the Fib analysis always works? As this is purely based on past trend, that may not repeat in next hours. I have gone through many documents recently, everyone has suggested Fib analysis. But when I am trying to follow it, it is not very profitable for me. Could you please suggest, what tips I can follow as a newbie in trading?
Thanks.
Run a simulation on MT4 platform. Go to 5 minutes chart and find highs and lows. Draw fibo see how it works on retracements. The main thing is to predict in which direction price will go. Fibo gives good entry and exit points.
Actually, if you’re starting out, intra-day trading could kick your a** pretty fast! [ and help you develop bad trading habits quicker ]
D1 ( that is, higher TFs ) can teach you the mindset + technique in a way that you can apply to other methods later on if you want.
If I may, have a look at this price action method, it’s the one I use: 301 Moved Permanently
Cheers!
Pamali,
Glad to see some who know exactly what they are looking for. Tell you what, just because someone says that a tool/indicator works for them, doesn’t necessarily imply that it will work for you. Its all attached on [B]how[/B] they use the particular system. Price Action and Trend Trading is a sure combination especially for new traders.Checkout what the offer on the Babypips school plus here is an article to get you started: How To Trade Price Action Trends In Forex - What You’ve Been Missing | 2ndSkies Forex
I believe that interacting with price action traders on babypips could be beneficial too. Here is a good thread to begin with.
http://forums.babypips.com/newbie-island/45414-understanding-price-action-chris-capre.html
One more thing, depending on the daily or a single timeframe wouldn’t really give you an edge in trading. waiting for setups for a whole day isn’t realistic and you will find yourself making poor trades. These bad habits can be can really curtail your learning progress.
I wish you success in your trading journey!