Hello
I need with when to enter a trade. I understand the uptrend and downtrend. But at what point of the formation of these trends should I enter a trade? I’m frustrated because whenever I enter what I believe to be a good set up, I end up losing money. Please help I’m getting exasperated
Thanx in advance.
Hi
Can you provide an example or explain what you consider to be a good setup and how you execute on the setup?
Its a good rule to always make sure your trade follows the same direction as the main trend, up or down.
In order to join the trend, many traders look for a pull-back - i.e. price moves in the opposite direction for a short distance over a short period of time. You can then open the trade or set an entry order where price is now starting to move once again in the original direction.
I’m always confused when it comes to determining a trend. Please, on what time frame is best to determine a trend?
Have u learn about market structure? Thats some knowledge a trader must have
In summary ,Trending UP market when price make higher high than previous high, vice versa
Example EU 4H is trending down ,Because price make lower low than previos low and recently high lower than previous high
But in D1 we still in uptrend, price still make higher high, and curent low stll higher than previous low
What best timeframe to identify trend?
Thats depend.what kind trader are u,
Im swing ,so i use day candle and 4h candle
Its good to identify trends on two time-frames - the time-frame on which your trades are identified, managed and run, plus a longer time-frame. This means for example you might be a short-term trader who used the 15min chart to find set-ups, trends, candlestick patterns and entry signals. In that case, find the trend on the 15min chart but also on a longer time-frame such as daily. The proposition is that a trade that follows both trends in the same direction will be stronger than a trade that follows only one or the other.
OK, thank you very much.
Entering a trade totally depends upon the trading style you opt. In general, morning candle is quiet good as market opens it has some chances of good trading.
You have to define would you want to trade trend initiation or trend continuation. In the first case you enter after a breakout assumed trading range, in the second - after completion of a pullback. If you inpatient and enter in some random place in the trend you won’t get the best price.
I had difficulty determining this myself at first too. I trade on the 4-hour tf, so I would look at the daily and weekly to determine the overall trend. (Is it making higher high and higher lows and vice versa). Another good way to determine the direction is by using the 50 EMA or 100 EMA or both together just for extra confirmation.
Again, whatever time frame you are trading on try looking up 2 to 3 tf higher to see if you’re reaching a significant support/resistance area.
I think you should practice properly before entering into the real market. You can practice on a demo account to make yourself expert in forex trading.
To do that, you will have to understand your strategy and plan and identify opportunities to know your entry and exit targets.
