I am a very newbie, and passed 8th grade in babypips school. I learnt today about pivot trading, which I find very interesting. The only thing you need to establish what is the trend for the day.
Like today GBP/JPY reached S3.
I went through the charts, and used the MACD, and RSI and Parabolic SAR for the charts.
From experience which chart is the best to establish the DAILY trend?
15 minutes, or 30 minutes, or 1 hour?
I mean my prediction from todays analysis that GBP/JPY will go up next week, because RSI shows market oversold…but I might be wrong…
Do you have a technique to establish DAILY TRENDS?
For example trend for Monday, trend for Tuesday etc?
Well I might be naive, but if we would know this with a 90% certanity we would be rich…
Any ideas, or experienced traders to share methods, would be useful.
A tip for you: 90% of the time, price break the high or the low of the previous day. So open a 1H chart and locate the high and the low of the previous day and see where prices are heading today. get it? Do this every day.
The same for the week, but this time open a 4H chart and locate the high and the low of the previuos week and see where prices are heading for the week. Do this every sunday.
The same for the month, but this time open a daily chart and locate the low and the high of the previous month. Do this the first day of the month.
It is very useful, to back up my trends, I thought parabolic SAR on daily chart can give you a brief idea, but thanks, that can be confirmed with your method.
Also experienced the OIL prices effect on the currency market.
I am demo trading and practising, and I trade market opening hours, London market 8.00, GBP is doing a strong uptrend starting sharply at 8.00, but one day it went down with the same power, the reason behind it I guess as were not any particular forex news, that at the same time exactly the OIL prices went up,
so before my big boom trade at 8 am, I always check the oil prices as well.
i also like very much the pivot point trading along with te stochastic and the rsi indicators. when the stochastic is high for long and the price is at a high pivot level, it is indicator of prce reversal. you can learn more about price trending below:
