Hi, I�m not a complete newbie, I�m just returning to trading after taking. Does anyone out there trade from the chart patterns. I�ve tried indicators and the like in the past, but you have to be at your screen. I have had more success just trading what I have learnt from chart patterns.
Chart patterns is a very valid method…
You need , actually, only a couple good setups, be they indicator based or price action based…
Know those one or two well and you will succeed…
Trying to know everything can be self defeating
Best of luck…!!
The thing is, if you can identify a chart pattern, and a trend. What do you need an indicator for? It just tells you what you can see. Not knocking them, but I personally find it very hard to trade with them. I have never seen anything on an indicator that is not show by price action and I bet there is people who could probably draw a price chart by just looking at the indictors.
My plan over the next few weeks is to not trade if I don�t recognise a chart pattern and to only use entry orders for the exits from the patterns, no market orders. The only drawback is, chart patterns are more significant on long term charts so I may need more margin to trade. Anyone have any tips on how to get around this? How significant / reliable are patterns on a one hour chart?
the longer the chart… the more powerful the pattern…
Many people like to use a daily chart… less time at the screen and much larger moves…
There are many people posting on this board with daily patterns… you can glean info from their posts.
Thanks Blaiserboy I will have a look around.
your favorite setup will work on any time frame… so u have to decide how you wish to manage your time…
Sometimes I want fast action… so I use a one minute chart
Other times I want time to make decisions… so I use an hour chart
The most important thing that I can pass on to you is the idea that mastering one setup and self discipline is the key to trading…
‘Master your setup, master your self’
I use a multi time frame indicator based system… seems to work for me… requires a lot of focus tho…
Each to his own
dave