Hi Guys,
Ive been using babypips since i started looking into forex (March/April 2018) and still using this now. I currently trade on the 1hour chart but im finding it difficult to find a trading strategy what works. I have made quite a few gains (Small) but more losses. Can anyone recommend anything? I use 3 Moving averages (7,20,65), RSI and MACD. Im on a demo account but im not too sure where im going wrong?
Has anyone got any tips?
Are you a day trader or swing trader? And are you just looking at the 1HR chart when doing your analysis?
8 look at the 4hr 1hour and 1day or 15min 30mins and 1hr
I’m a swing trader as I don’t like leaving my trades open for a long time. However I work also so I look at the 1hour, 4hour, 1day while at work.
When I’m not working, I’m more time looking at the 15,30min & 1 hour chart.
Is this where I could be going wrong?
Newb here too, haven’t been on demo all that long, but I’m speaking from my personal experience. I’m like you, can’t watch charts all day. I watch all major pairs normally during NY open to close (throughout the day). I think because we can’t sit and watch the charts all day, we need to trade at the higher time frames, as they’re slower and give us time to react and make adjustments. I usually stick with the daily. I’ll prep after the NY close in the evening, starting with weekly and daily charts to get an overall idea of trend. I’ll set some support and resistance lines and trendlines on the daily, also applying several MAs (20, 50, 100, 200). I check online research of any fundamental happenings of the pair, so I look at several econ calendars, and then read daily or weekly analysis of the pair from one of several brokers or analysis sites that write the stuff. I mainly look for price nearing or having come off a S&R line, anticipating a bounce.
After that, I start looking at the lower time frames, 4hr and 1 hr, to see where I could come in. I don’t really go any lower than that.
Once I think I have an idea of where price could move, I set my entry (normally, it will occur in the future at some predetermined price). I set my stop, and get an idea of 1 or 2 profit targets, set one, and then I’m done. I check the trade the following day, throughout the day. Sometimes I close it, sometimes I let the trades run. Sometimes, if the market goes in the complete opposite of my trade, I close it and open up the reverse of my earlier trade, again checking maybe the 4hr and 1 hr charts now, since obviously something wasn’t working from my daily review. I’ll also try my luck at day trading if I see some large candles. 9 times out of 10, you get a retracement, unless of course you have crazy news like Brexit hitting the airwaves.
I think the 15min and 30min charts have too much noise to get a real sense of what’s going on, especially for us new folks. Unless you have a really good grasp of price action, as a newbie, I’d take a step back and trade off the daily.
I’m still working on my exits. I think they’re much harder to figure out than entries. Play with your position sizing, stop loss and risk to reward. Throw in maybe another indicator or two, but stop there. Too much too soon will just overwhelm and discourage you.
Price action is also something that has a big following, so read up on that. I think there are many fans of it on the site.
Uhmm! Swing traders do the opposite.
Do you have a strategy based on those indicators? Then trash it cause so far it ain’t working, you should only trade based on an indicator when you spot a divergence #eventhatdoesn’tworkallthetime.
Just as stated above, Learn price action, you want to look at a naked chart and have a fair knowledge of what is going on. You can surely use an indicator to further confirm this.
There are some system here on BP that you can try anyway and work from there. Remember to only use what suits your personality, if you have a day job and have only a few hours to look at charts, you should be trading the D1 majorly.
Cheers!
Max
that’s the key right there, if you know price action well, along with other technical factors then you can easily make 10+ pips a day,which will help your life drastically
also, not too long ago I started focusing more on the 1min chart. I don’t place my trades on the 1min, I typically enter on the 5min - 15min, but use the 1min to spot your entries! I’m serious. This has improved my trading tremendously. I’m still in my testing stage, but just try it out and see how it works for you
Maybe take a look at some of these…
Thanks for the info
I will defo work on price action and move to The daily charts and see how I get on. Much thanks for the feedback