Thanks for the reply. On hindsight, This AUD/USD has been on a nice downward channel for some time and the expectation seem to be heading up (which is counter trend). It would seem to need something major to knock it out of this channel to head further down 1.03.
This is really a tempting pair to trade. One of those which is trending well and makes big moves. Too bad I am unable to ride on any one yet…
Hi! I’m a newbie here and in forex also. And I just can get what does HH and LL waves mean? Maybe, you can show some pics of them:-) It will be much more easy to understand for such a dummie like me)
Thanks in advance
Hi…im new to forex and just self educating myself about the game…would it be beneficial for a newcomer to begin trading ECN first rather than leveraged trading?
Your picture is right regarding the highs and lows. The HH, HL, LL, LH all pretty much help to show you which direction price is going and when the direction changes.
Price action changes by the day sometimes even the hour so it will ruin your sense for the pattern if you take a vacation for two weeks.
It is the same with poker when the professional poker players take breaks they lose all their abilities to profit and it has to be retrained again to get into the ‘sync’
Breaks will help if you are stressed cannot disagree with that though.
Putting up chart? Sure… I’d rather doing that than confuse my self…
So, in related to what? ( i will study more of the answer you’ll give ).
On the chart I (at least trying) relate it to previous wave…
question 2: what was 6 basic candle that you recommend (there are many of them).
The six basic candle sticks are tweezer, hammer, hanging man, doji, inverted hammer, and shooting star. These are the primary reversal candle sticks/patterns that you should familiarize yourself with in order to become consistantly successful with forex.
Thank you… I will study that more often now…
So here’s a trade i took today
I am risking around 0.1% on this trade so no big deal… The reasons are because I see pin bar at the resistance area and Higher Low, also the risk and reward around 4:1.
If you have any comment on my entry just shoot… It will only make me better.
You have the concept right of varying your risk. Do not risk more on trades that are not as clear as they should be.
The entry part is also down pat.
Only reason I wouldnt go in is
a. NFP today. I rather cut trades that I am holding on a loss than gamble with NFP, especially if they are yen and USD pairs.
b. Weekly candle has hit a support area. Expected to retrace even higher once new weekly candle starts… Price might decide to go south from a higher level.
Watch how candles form, than watch how the next one forms. Especially H4, D and Weekly. Most of the time, price retraces higher up into the previous candle before it follows bias. This holds true on all TF, down to Min 5.
c. Its Friday. Fridays and Mondays tend to throw curve balls. Its best not to bet the barn on a trade on these days.
Other than that, if we are to judge your trade on a strict BPC and candle formation entry, its spot on.
We are day trading. Hence our trading is on a day to day basis. We rarely hold for more than 24 hours.
Hence what we are doing, strictly speaking, is trading the waves inside a day candle.
Once that candle is over and our profits have been banked in, we proceed to follow bias and look forward to shorting the same pair again, once it has retraced to a higher point ( BPC ). This is where we will see yesterday being a bull/bear candle and todays candle starts as a contra and climbs back up.
We think that price is reversing and we hit a trade, chasing price. It might give you 20 pips in 4 hours, only to have the entire thing wiped out and you out of pocket by another 80 pips if you do not have a SL in. The day ends and now you have another bear/bull candle in your hands, just as the day before. This repeats itself until price reaches a support or resistance area on a higher TF.
So we compare prices with yesterday. Or the previous 24 hour candle. The previous is our bench mark to find our entry clues for today.
HH, LL, HL, LH and the rest are in relation to what happened yesterday.
It does not always work picture perfect, but it does a brilliant job most of the time.