Hi guys i have a query for you, i just want to check from the experts that my logic is sound.
From the screenshot below this is my trading screen for one of my currencies. As per your advice i have settled into nicely trading the hourly chart with some sucess, but two weeks of success with my strategy is not enough.
What i want to know is in the ADX section which i have highlighted in red both the hourly and 4 hourly is indicating ranging.
I trade by trend trading which seems to work for me so normally if i see ranging in either the hourly or 4 hourly i would not trade this currency until it resolves itself and starts going up or down (and i would only trade in the direction of the daily trend).
Is my asumption correct not to trade the hourly chart if the hourly and 4 hourly chart is indicating ranging by ADX ?
Well, if you prefer trend trading and have been successful with it so far, I’d say don’t trade this setup … especially since not only H4 and H1 show ranging, but also M30.
Nice chart, by the way … which trading platform is that?
Trading with only a few indicators is smart; many new traders think the more the better, but permanently having six indicators plotted will just clog up your chart and confuse you.
I prefer looking at chart patterns and price action, and only use indicators like Stochastic or RSI to confirm my findings, before removing them again.
Thanks for the advice Olvier1968. I come from an IT background, so i have got used to in IT following KISS (Keep It Simple Stupid) so i think this strategy is working for me. I did have alot more indicators but i stripped them down and replaced them with others that combined functionality until you see what i have above.
This line up above may change over the next few months while i continue testing it.
I currently also use team-viewer for remote access to check everything and will be setting up the email alert function in MT4 which should help me to avoid missing entries (which are identified by the blue or red blob on the chart above), which must be confired by ADX and CCI (i.e. no ranging and the currency is not in a sideways motion).
Out of interest what currencies are you trading with and what do you think is best for a newbie like me?
For the first few months, it makes sense to stick to a single pair (maybe two pairs), in order to learn its particular behaviour.
Each currency pair has its own ‘character’, and trading too many in the beginning can confuse you and keep you from learning at best possible speed.
My advice would be to start out with EURUSD, since it is the most commonly traded and thus the most liquid pair.
At the moment though, the EUR is doing crazy things, due to the ever-changing economical situation in Europe.
So it’d probably be good to to add GBPUSD or maybe AUDUSD to your ‘watch list’, whichever pair you prefer.
This is only my opinion, of course, although starting out with only one or two pairs has proven to be an effective learning method for many people, to the best of my knowledge.
