What is your trading setup?

Trading Discussion
1

What is your setup, or what do you base your trades off, in terms of market sentiment, technical analysis or fundamental analysis.

I’m a beginniner and my plan was to try out/
a) identifying strong/weak currencies
b) use a stochastic indicator
c) and a MACD to trade off trends after pairing these currencies

and then using fibonacci retracement levels to place entry/exit points.

I want to be more structured with how I enter a trade.
I was thinking about looking into the news/reports more (but I have little time and I think focusing on technical analysis would be better. But it is something I hope to explore in the future)

What do you think? What do you do? Anything similar or different?

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2

In case of lack of time, technical analysis would perform better, so you are on the right path. According to market efficiency theory, the price already includes all information, so it is enough to use technicla analysis. Of course, fundamental analysis could also give you several interesting trading ideas, but it requires a lot of time and efforts.

Besides the indicators, it is also important to pay attention to the trendlines. As for me, it is the best thing in technical analysis. In fact, all price patterns are just combination of several trendlines.

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I trade long-term only, using daily charts, though I refer to weeklies to establish trend strengths relative to each other. I trade with-trend only.

Two approaches I found really useful were -

  1. list the features that make the trend which is most suitable for my style and score the different charts accordingly: its not enough to see price is rising, its not enough to simply jump on the trend with the highest % price rise in the last week

  2. don’t ignore the wider market perspective. Before going into a trade, check what the other pairs on the same base currency are doing: for a quick and easy check I look at the 50EMA slope: right now you’ll see that all 7 major AUD-based charts have downward 50EMA slopes, while all 7 major JPY-based charts have upward 50EMA slopes. This means I would need a decisive reason to go (or stay) long AUD or short JPY.

A feature I have found unhelpful is trying to develop increasingly sophisticated and reliable entry patterns.

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4

As a short-term swing trader, I use reaction levels/zones on the W1 time frame, get a price action setup (e.g. engulfing or pinbar) on the D1, and enter on the H1 time frame. The alignment of the 21 SMA on both the W1 and D1 time frames gives me directional confidence.

Trade safe and prosper.

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I use 15M, 1HR & 1D charts. (1H is where I plot my trade ideas and the other 2 time frames are just there to more confirm the direction of the trade)

I do read the news as well though - making sure we don’t have any major market news that could blindside me. I use tech analysis with my fundamental it goes hand in hand for me.

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Yes these is what a trader look like.
I work this way me myself. But I just come out of who I were before now. Like the say" Not a cake work". I have seen experience of many form and I know what I mean of that.
My stly is like a pro.

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5 minute chart with a 20 EMA, no indicators. Trading purely on price action.

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9

Perhaps at this time you will research and complete a written trading plan so that you can define a structure that you will follow.

This will save you thousands of hours of flip flopping between approaches.

10

Remember: There will always be more trading opportunities.
If it does not meet this criteria, let a trading opportunity pass.

Supply and Demand Zones
Large engulfing candles larger than the last 7 to 10.
Only on the Daily time frame and up.

Support, Resistance, and Fib Zones
Look for trades only at these zones.
Only exception is the trending doji.
During trend pause, it should extend it’s shadow long against trend.
The longer the better.
During only small consolidation, six short candles max.
Trend-line, Support, or Resistance Breakout and Retest.
Very important to only trade after retest.

Observe Market Patterns
Double and Triple Patterns, with last portion smallest.
Triangles and Wedges: Watch for 5 bounces and Breakout Retest.
Channels: If larger, trade Trend Breakouts.
Otherwise, trade channel zones and breakout retest.
(Confirm with Candle Patterns)

Trade Candle Patterns at Zones Only
Doji, Dragonfly, Harami, Hangman, Hammer, and Tombstone:
The longer the shadow the stronger the signal.
Tweezers: The closer they match, the better the signal.
Engulfing and Piercing: Engulfing being the strongest.
Morning and Evening Star: Require strong doji, or Harami.
Big Belt: When the market gaps, and is filled with one long candle.
Flags and Pennants: Must be candle to candle formation.
Signal continuation.
Can also trade breakout and retest, to be safe.

Always follow with the higher level trend

Also watch:
Closing Above or Below Moving Average
RSI, Stochastic, or MACD
Divergence

There’s my trading plan. Hope it helps.

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any chart (not 1M) with a 50 M<A and a 21 HMA

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12

Structure your lookup for confirmation and down for precision, just like a microscope however you are slicing time, while a good entry is important you can have better than a 70% hit the trending candle and still have a very bad entry, It is more about the entry position and what you do managing the trade after you hit enter.

Do you enter on the close of the candle or too impatient?
If the price action is trending do you wait for a brief pause or consolidation before entering the continuation?
Do you know enough about candles to decern a continuation pattern from a reversal?

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13

Go with Volume, Supply & Demands as indicators are lagging. Use Bar Chart to see demand or supply & may use a few MAs crossover. All other theme not ideal. If you can catch, smart money, go with it. That’s it. KISS.:smile:

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14

love your description, it’s very similar to how I trade pretty much minus a few of your indicators. Right now, I only use a couple of MA lines. I used to use RSI, but now I don’t really see a need to

15

Hi there morning for focus on technical analysis than fundamentas though fundamentals do have an impact on the market as well .

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16

Mostly just naked price action with a 200 HMA just for horizon

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IGNORE NEWS REPORTS!

Although if you are trading currency pairs, you may want to sit out during ECB, FED, BoE, statements on what they are going to do with their currencies.

For the small time retail trader…TA only.

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I trade only technical on daily and weekly TF

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For Me I Will Locate A Pair That Is About To Hit Support Or Resistance, Trend Line, Channel Or 200EMA After Marking Those Zones Out I Will Then Check Out For Fundamental Report And Base My Bias On It, Eg… If The News Report Come Out Positive I Will Go Long Base On The Price Action & Vice versa I Also Make Use Of Stoch & ATR

20

I am forced to ask if 20EMA is not also an indicator?