Hi all,
Anybody can point me to the right direction on how to estimate when a downtrend or uptrend is coming?
Mostly i am trading in M30 chart, quite many of the times i catch the wrong trend or sometime the price does not move too much and it has no trend at all.
So, it made me either lose money or have very little profit or no profit at all.
Are there any symptoms when a big trend is coming soon?
Thanks in advance.
You might wanna review the School lesson on leading and lagging indicators for price trends: School of Pipsology Oscillators and Momentum Indicators
Another suggestion is to backtest the indicators you are using to figure out which ones work best or if any parameters need to be adjusted to catch trends better.
On a 30m chart there is a lot of noise which could lead you to wrong entry points. When you want to trade on small charts you always have to see the big picture. I recommend to watch the weekly charts which way the trend is going. If the trend is going up on the weekly chart then only look to buy signals on your 30m chart.
Cheers
u can never be 100% sure when it will gona drop or rise always be on a lookout for any news for the item that u are trading biggest mistake that new traders make is that they dont watch news and they trade 50 currency focus on max 5 currency’s @ first practice 2 currency’s and when u get an idea how that one works try others but never trade with more then 5 currency’s u just cant keep up with everything thats happening.
Review the babypips material on indicators, or you can head over to FF to do the same, but babypips gets my vote, given the details…
Thanks for the replies everybody. : )
How can i backtest an indicator in MT4?
I had try to backtest an EA before, with strategy tester in MT4 trading platform. But i cant find out how to test an indicator.
So let say in 30m chart, i saw an uptrend which just started, so i want to long it. When i go look at the weekly chart, it show that the price is in downtrend (all solid bar) but the last bar of that downtrend is going up (hollow bar), so what should i do in this condition?
Masonlee,
This might help, earlier this week Raghee Horner AKA Queen Cleopiptra posted a video on her Babypip’s Chartology Blog.
link to The Queen’s Outlook on the Aussie
On the video Raghee explains how she scans and prioritizes pairs looking for a directional bias. She also explains why it’s important to look for and trade pairs with a strong directional bias.
And even when trading the shorter time frames, 5m, 15m, 30m, 1h, etc, studying the directional bias of the daily time frame can be very helpful.
I’d suggest you also take a look at Raghee August’s video titled “Watchlists, Directional Bias, and Time Frame Selection Guidelines”
link to Watchlists, Directional Bias, and Time Frame Selection Guidelines | Forex Blog: Chartology
hope this helps :44:
Like you say, 30m chart is up and weekly charts is down which means you have both opposite signals and you can not enter this trade.
When it would be a downtrend at the 30m chart and down at the weekly chart you can enter when a sell signal appears.
I hope this will help you out!
Don’t bother trying to pick tops & bottoms, just get in on a pullback of an established trend - ditch the 30min chart and trade off the weekly and daily - don’t be intimidated by them, signals have much more clout, rewards are much better and it helps to stem overtrading if that’s a problem. I switched to the weekly / daily a few months ago and it turned my trading around 180
Thanks for the video. Very professional presentation. I have learned something from it.
So usually how long you stay on a trade?