please let me know where the consolidation point is!? im extremely lost… I dont have to much trouble drawing fibs and figuring out the retracements
Before getting into how to read a price chart, I’d like to ask a question about your trading plan please:
First, I’m assuming this is a demo account - please confirm that?
Secondly, haven’t used MT4 in years, but, is that 2.50 representative of 2.5 Mini lots?
Please define “consolidation point” and why you’re interested in it.
Thanks!
Jake
yee 2.5 mini lots i believe… it starts with 10k just practising… but umm I been reading this book called “All about Forex Trading” by John Jagerson and S Wade Hansen and they say that the consolidation point/zone is a constrained area defined by a set support and resistance levels in which the trend is undefined or channeling. so usually its the zone after the old trend and before the new trend :S soooo ya that what the book says…
edit: after reading again it seems its for price patterns ie continuation patterns and reversal patterns :20:
So, what would consolidation look like on a price chart if you think about the term logically?
Would it be represented by large candles, with both sides of the market (buyers and sellers) agreeing on a single direction?
Or, the opposite? Small candles, wicks on each side of the body, bull/bear candles intermixed, sideways behavior?
Why does price move?
when a trend ends i suppose but it also happens before a new trend begins… thats what the book says
So, have you been able to apply this logic to analyze a price chart?
well simply put no… Im still practicing on a demo and I’m still trying to formulate my strategy…
currently im trying to swing trade with fibs and B.bands and using the price signals from it.
edit: I have tried identifying the consulidation zone later but I just want some other peoples opinions ya know
April 28th 2100hrs, to April 29th 0830hrs ?
I’m honestly asking, newbie here also.
I dont know if this is relevant or not but I read book by Stan Weistein titled “secret to profiting in Bull and Bear markets” this gave me an excelent insight to trends …stage1=consolidation …sideways …stage2= uptrend …rising stage3 = exhaust sideways before stage4= falling , applying these stages with a simple ma (I use40) shows when to trade …its then just a matter of finding your pin bar or break out INTHE DIRECTION of the trend ,mind you its not always that cllear cut or simple but it does make you aware of where you are in the cyle IMO cheers Q