Ok, I see what you’re talking about. I’m not at home right now to check that chart for what I look for, and if it would have made any difference or not, but I will later on.
However, I wouldn’t call it an inaccurate chart because of it being with a different broker and for whatever reason paints it’s daily candles different. Being that forex is not centralized you can expect candles to form differently from each other…they’ll be close, but not exact…and the chances of bars forming that resemble reversals bar is also likely to occur…all of which is why one shouldn’t rely on patterns 100%. If one trades based solely on that, then getting stopped out just means it wasn’t valid that time and you wait for the next one…that’s all. Otheriwse when one sees one, then one pays attention to it…but price should still do something to further convince one that it actually means a reversal…which I know you’re quite aware of since you move down to see what’s happening on the hourly chart first
This is IBFX broker, 15M time frame on EU. the white vertical dotted lines marks zero hours GMT which is the time the broker changes daily candles. You could shift those white lines to any time you want and it doesn’t change what price does. So in other words it can be useful to zoom out on a small time frame to see what price is doing INSIDE the daily candles.
You can even make up your own daily candles by moving the white lines around
well not those because they are built into metatrader but it’s just the principle I was getting at that those divisions are kind of arbitrary. You can un-display them and draw your own lines 24 hours apart and how do you decide which lines are most valid? I think if you want to have the most accurate daily candles it should be from the post NY minimum until the next one. Someone told me once the standard forex day is from 5pm New York time. I don’t know just thinking out loud.
Hello, I’m a forex newbie (see post count) and really want to start to learn using price action. By any chance can all of the topics you mentioned in the 1st page of this thread be found in the babypips school? That’s where I’ve started reading. Could you help a newbie out by linking to the appropriate lessons?
You will need candlestick patterns. That is the most basic. Once you have an idea what these first 6 patterns are about, then you can start looking for trades.
While I strongly recommend you read the entire school material, its not absolutely necessary to have finished it all to try this method.
You will need a grasp of Lower Low, Higher Highs.
Then you will need a demo account to practice.
That is all there is to this system. I try to keep it as simple as possible. Hence no indicators, no smaller TF trading etc etc.
hi nikita
my reading is upside down. when i buy it downs, when i sell it goes up. maybe i should op contrary to my reading sigh
but hold a sec… usually when i cut it, then it reverse. in the beginning you actually said “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” and you also usually dont put SL and have the trade runs for few hours right? i usually lost my heart after 20 pips
oh an one more thing, a draw down of 20 pips is nothing in forex.
You must not overtrade,keep your risks to a minimum.
That way a 50 or 60 pip against you wont be that bad.
Its very important that a newbie keeps a 1 to 3% risk per trade. You can increase it later as you got the system down pat.
Its hard enough holding a trade when its against you. Its worst when you are holding a trade that is going against you and you are taking a 15 or 20% risk on it.
Apologies for not getting back to you sooner. I thought I would have a quiet evening to myself, but a neighbour showed up and then I was too tired to get into it later. I did though have a bit of time before bed to take a quick look, and have a few moments now to comment.
I don’t trade off the daily chart, so I think I’ll just stick to what I said before…if one is going to trade candlesticks patterns off the daily chart only, without any other confirmation, then you get what you get. Even my IBFX chart was the same as the FXCM chart. So I tried to find a failed pattern on the primus chart that the FXCM one didn’t have to prove that 1) it’s not a matter of inaccurate charts, 2) that it just happens in general with any broker and 3) again part of why these patterns are not 100% reliable…but your small sampling didn’t have any so I will leave it at that. Feel free to check that out further if you wish.
But being that you don’t trade that way, why be concerned? When going to the hourly t/f you wouldn’t have found a reason (pattern candle) to enter so that would have filtered it out.
I too use the dailly to get my bias based on candle patterns, and then move down to the hourly to look for a setup candle within the previous days daily range…which is just another pattern candle at possibly the end of a pullback.
However, I do take it one timeframe lower to the 5min and look for the same thing…to find another occurance of a pattern candle within that hourly range which hopefully is at the top (HH)/bottom(LL) of a pullback, to enter on. Wave, within wave, within wave…lol. That allows me to use a very relatively small stop …Nomask on ForexFactory (who I modeled after) uses the weekly, 4hr & 5min and sets his stop at 10-15pips most times, except he does go for 1000 pip trades which makes up for any frequent stopouts due to entering too soon
YES i’m on demo
but then since i am in demo i trade whenever i see whatever i want to see. just to see if my analysis is right or not. but i never have more than 2 positions. ok so i will only trade if i see a winning trade and try to hold that position for better or worse.
i will study your technique again and again until i really understand it. in the meantime do you have a source or some keyword that i can google in this subject?
as for the risk calculation etc i’m not there yet. now i just want to learn about this price action
Ok you just drop me a line here if you having problems with anything.
Well I dont know what you want to google. If you are planning to google on Price Action then just go for it.
There is tonnes of stuff out there. That in itself is a problem.
301 Moved Permanently This is another good price action thread. He is on an advanced level where he takes into count S& R levels also.
Its worth going through.
Keep it simple villain…then build from there step by step. Dont make the mistake of pilling too much on your plate and making your learning process much more harder.
Good Morning to you. Was damn lazy to filter your reply quote by quote so Im just going to shoot point form yeah?
Regarding the chart patterns, I would like it to be as close the herd as possible. Im happy with what I am trading with now.
Regarding filtering it to the smaller Tf i.e. H1 TF, you are right. You dont always get a nice set up and you can always cut risk by not taking the trade. With that being said, itchy fingers and the need to have atleast 3 or 4 trades a week makes this difficult
I am still doing ok with the occasional mistakes being forgiven by bias.
You have just picked my curiosity by mentioning 5Min TF. You are right on the wave in a wave in a wave. But I had not bothered to analyse my trades on that TF.
Nomask of Forex Factory you say?? Would you be kind enough to post a link ?
SL at 15 pips for a 1000 pip trade??.. It has to be checked out.
Finally as I mentioned somewhere on this thread earlier, I would like to thank Bobmaninc in helping me refine my H1 entries.
I am learning to perfect the smaller TF entry still. Am making a few mistakes here and there. Hope to have it sorted soon.
Oanda’s pretty nice. You can demo account on their web app or use MT4. Its pretty nice since you can customize your unit sizing. I think its pretty nice. Spreads do move around but its easy to keep track.
Full disclosure I am not getting paid by Oanda or endorsing it for personal gain
ermmm…i dont know what they call this type of trading other then the fact that it is some sort of a price action…
I dont hold for more than 24 hours, accept on rare occasions or when the pullback has just happened and there will be a solid move in one direction.
Well most brokers would be able to provide you with a demo MT4. Its all the same.
But you would be better of sticking with one of the better known ones such as FX Primus or Oanda. Make sure they provide you with a five candle weekly chart.
Hello Nikita, I just stumbled over this thread. Looks nice. Kiss is also what I prefer. 2 of my strats work without any indis. Seems you have the right mind for trading.
I checked a lot of systems and my experience is, it is way better to leave a profitable system as simple as it is. I have as I said two of those systems and tried it with indis in backtest. No matter what indi, rsi, force, sar, ma’s etc. etc. just decreased the performance and didn’t do any good thing for a better and lower dd. And I guess I know what I am doing, so all of those tests had a specific reason. I do not say indis are worthless. That just depends on the system. I just say that a “no indi system” is better without indis at all and it is better to leave it like that.
Hello Buckscoder, welcome to my corner of Babypips.
Indicators are for advanced traders, newbies should concentrate on things like pull back, price reversal, and price bounces.
For those who have been following this system, they would have made a killing in the week that just passed…
Especially the last leg where it was pushed up further by news.
I hope to keep updating on trades here but I find the whole process of uploading charts such a pain. Then you have to write your post and then edit it a couple of times to make sure the message is exactly what you want it to be.
Anyway happy pipping to all.
For the person who kept telling me about EU being a short because of a spreading debt crisis, I told you to look at your charts and not CNBC SquawkBox or CNN Power Lunch. Your money is probably in my account and Buckscoders account. Thank You.
Your charts will have the drop built in as it represents the real market movements. If you follow that, you will catch the drop when it eventually happens. If it happens that is.
