I intend to trade Forex part time on the daily chart (possibly swing trading) I cant enter a trade anytime during the day as I work full time. I am based in UK .A daily candle closes at 22.00 UK time.
If I am to enter a trade on a confirmation candle (be it hammer,etc) and a daily chart, is it OK if I enter a trade between 5 and 22.0 o’clock (as I have time to enter trades after work). if so what pairs? this could be currencies most active during the UK session when the London Market is closed.
or maybe I should enter a trade with the currencies most active during the New York session which is active afternoon the UK time?
Hi, consider opening trades right after the candle closes, i.e. once a day, e.g. you open the platform, check the conditions for taking a position, and set an order or not. The number of pairs is up to you but focus on a smaller number for the start to fine-tune your strategies. Remember that positions are taken on daily charts less frequently (several per year), so do not trade in strength, stick to the plan, include swap costs in the strategy, because longer open positions are associated with costs and the final result may differ significantly from your expectations. Regards Greg
I have no problems trading throughout the evening, using the previous day’s closed candle, except between 5 & 6pm EST.
I wouldn’t open or close any trades until about 1 hour after the NY session has closed. I don’t know about your broker, but most brokers increase spreads significantly during that period. Same with market orders and stop losses, if you have any open make sure they’re far enough away that the increased spread doesn’t pick them off prematurely.
So how do you trade with buy/sell limit order? when trading you’re supposed to wait for a confirmation candle but with a limit order, there is no way to know (market bounces off a support/resistance) as the trade is pre-determined
I’ve honestly never used a limit order, I use market or stop orders. If I’m confident I go right in with a market order. If I think there might be a pullback then I set a stop order a few pips ahead (buy) or behind (sell) price.
Maybe someone else with more experience using buy/sell limit orders will chime in.
It’s actually not that complicated. Your broker needs to know a few basic but important aspects when placing any sort of trade for you to identify the limit order. So these can be the transaction type which is buy or sell, the number of shares, and the security that is being bought or sold. Apart from these, there’s the type of the order that includes whether it’s a limit order, or a market order and lastly the price