Total beginner looking for some views on my charts. Just finished the babypips school program…
-Oversold RSI
–BEARISH DIVERGANCE (As shown in Chart)
-Oversold Stochastic Fast (Waiting for a bearish crossover)
-Waiting to go short at around the 85.4 level which I see as a double top pattern waiting to happen from the highs in April.
Please advice me on my analysis and where I can improve my chart set up. Thank you.
Shorted here at 85.625.
Certainly warrants a pullback on the hourly? failed to make new highs on the hourly and the shooting star candle.
[B]Target: 84.20[/B]
Stop: 86.22
(2:1 Reward:Risk)
Heavy support and will meet at the 10MA (looking at daily).
WHAT DO YOU GUYS THINK? my first trade ever.
I suggest use macd and 10 ema and 20 ema see if they crossover for reversal and the second top did broke the high of first top .try that let me know.
Hello Trade Reform,
Things do not always happen the way we want to or expect to, especially in trading.
Patterns do not always materialize or manifest the intended expectations. Use them as a guide, not as something absolute.
You spotted a valid divergence, BUT you must understand the points I’ve raised above…and that indicators are fallible too and therefore you should not rely on them too much.
Any strong trend, as in the case of USDJPY, will crush your analysis of divergences and mess up with your head (“I spotted a good divergence but why did I lose?”)… So the point is, analyze the market first, and understand the limitation of your tools (in this case, divergence)
second point is to minimize the use of indicators, especially indicators which tell you basically the same thing. In your case, I can’t see quite well but I believe you used RSI and Stoch in your above chart, yes? Look at both closely, and you will see they look roughly the same, so you could discard one of them.
More indicators = less/scattered focus
Hi all.
Agree with what Trade Reform said about expectations. There is no indicator that will tell you what will happen next.
Trading is about combining different “tools”, to find a good entry with a high probability trade.
Technical analysis is only a small part, you also need to consider trading psychology of yourself and the charts, and money management, that is when you will start to understand that it doesn’t matter if you are wrong several times, you will still make money when you have a system that gives you setups with odds in your favor.
If you want more help learning how to trade check out our video here:
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And our homepage here: ZenTraders.net | Become a Professional Trader | Course
We really want to help create successful traders, everyone is welcome to join us.
Good luck with your trading!
//Mytpyoursl
Unfortunately due to the extremely poor way that images appear on this forum, I was unable to read your chart.
