Proper High and Proper Low
Feb 19, 2014 at 12:41
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12 Replies
Feb 19, 2014 at 12:41
Can you guide me how we will be able to know what is proper high and proper low so that we can open a sell or buy position accordingly to get some profit. What is the timeframe you look at - is it 30 minutes or one hour candle sticks or what. Please help.
Member Since Aug 19, 2013
182 posts
Feb 20, 2014 at 08:26
tamali posted:
Can you guide me how we will be able to know what is proper high and proper low so that we can open a sell or buy position accordingly to get some profit. What is the timeframe you look at - is it 30 minutes or one hour candle sticks or what. Please help.
There is no specific time frame that we can tell you to look at which will guarantee you a profit. There are numerous different trading strategies. Some use very small time periods such as the 1 minute chart, while others like to trade on the daily and weekly charts. It depends on what your trading style and strategy is.
Viva La Puerto Rico!
Feb 21, 2014 at 12:22
Since I am new in trading, I mostly go for intraday trading and not interday. So I look for M30 or H1 charts. But as most people recommends Fib analysis is most trustworthy, I do not find it so. May be because I am new but Fib analysis is based purely on past trends, which may not repeat in future timeframes. As a newbie, I just want some tips or suggestions which I can follow to earn some money.
Thanks.
Thanks.
Member Since Nov 21, 2011
1718 posts
Feb 22, 2014 at 00:50
If it was that easy to pick up high and low we all would be profitable traders.
I have been studying market structure price action for the past 3 years to locate high and low on Fx pairs.
This strategy is currently running on demo account (under my profile) Signals can be issued from 1M to Daily. (High Timeframe is more reliable).
For example I got a sell signal on Daily Timeframe today:
EA sold GBPCAD @ 1.8635, Highest price was 1.8669 (Sold 34 pips away from the highest price level)
Current price is 1.8489
Market has printed a Pin bar doji candle. Market could retrace lower 100 to 300 pips from current price.... so EA could have sold the pair at the highest entry point.
I have been studying market structure price action for the past 3 years to locate high and low on Fx pairs.
This strategy is currently running on demo account (under my profile) Signals can be issued from 1M to Daily. (High Timeframe is more reliable).
For example I got a sell signal on Daily Timeframe today:
EA sold GBPCAD @ 1.8635, Highest price was 1.8669 (Sold 34 pips away from the highest price level)
Current price is 1.8489
Market has printed a Pin bar doji candle. Market could retrace lower 100 to 300 pips from current price.... so EA could have sold the pair at the highest entry point.
Member Since Nov 21, 2011
1718 posts
Feb 22, 2014 at 12:11
PS: Fib is an awesome indicator that predicts future retracement. It helps you to find the entry area to enter a trade when Market is supposed to resume major trend.
You must study it again and practice a lot more.
You must study it again and practice a lot more.
Feb 23, 2014 at 02:57
tamali posted:
Since I am new in trading, I mostly go for intraday trading and not interday. So I look for M30 or H1 charts. But as most people recommends Fib analysis is most trustworthy, I do not find it so. May be because I am new but Fib analysis is based purely on past trends, which may not repeat in future timeframes. As a newbie, I just want some tips or suggestions which I can follow to earn some money.
Thanks.
Buy when price is turning up and sell when price is turning down. Keep losses small, by cutting them early and add to winning positions. Don't think too much, follow the trend.
Trade what you see, not what you think.
Member Since Mar 28, 2014
2 posts
Mar 29, 2014 at 08:18
Tamali just stick with it. Youtube offers great videos on high and lows. Remember you will always be a student of the game! I suggest practicing with a practice account and keep notes on loosers especially. Since everyone uses fibs just figure out where you were in the trade compared to everyone else and work backwards.
1. "Never Act on Emotion" 2. The market is a whore who is out to fuck you!!
Member Since Mar 14, 2014
2 posts
Mar 30, 2014 at 19:54
Yes, as the say practice makes perfect. One thing to be successful in this endeavor is good money management and discipline. Losses are avoidable but learn from it to improve your strategy.
Member Since Mar 14, 2014
2 posts
Mar 30, 2014 at 19:54
I should say unavoidable
Member Since Mar 28, 2014
2 posts
Mar 31, 2014 at 05:23
(sugue) no doubt!!
1. "Never Act on Emotion" 2. The market is a whore who is out to fuck you!!
Member Since Apr 07, 2014
11 posts
Apr 18, 2014 at 12:47
We can not avoid losses even if we wish it. But losses spur us to get profit next time twice more:)
Member Since Jun 28, 2011
465 posts
Apr 18, 2014 at 22:02
All that has been written is true, from the technical traders point of view but I can answer that question from a different perspective, from the fundamental side.
The high is the highest that the price has been since 2001 when the new forex spot market began. The low is like wise the lowest price. The trading area is everything in between. Where is the best seat at the football game? Half way between the two extremes.
Countries need to keep their currencies in a reasonable balance with all the other currencies but especially with its neighbors that it trades most with. The span between the AUD and the NZD is half of what the eur / usd is. There are fundamental reasons for that. Knowing that the central banks will change interest rates to make their currencies balanced there are ways to take advantage of that by trading toward the center. Now I am talking about fundamental systems here not technical ones.
Therefore, the statement that 'We can not avoid losses even if we wish it', is no longer true. You can learn while your computer trades a system that humans can't use, (Cyborgs excepted), but you will understand the market from a fundamental perspective which then makes learning technical a whole lot easier.
When tech traders talk about high/low, they are only looking at the regional hills and troughs, if you can see the same thing from a larger perspective, you can have a system that took over 3,000 trades in 15 months without a single loss. When technical traders hear that they tend to scoff, it sounds unbelievable to them. So why learn technical trading if a fundamental system is so strong? You will make more as a technical trader than the safe fundamental systems tend to make. Remember that there is a relationship between risk and reward. Systemic systems are geared to the safer side. (Systemic trading systems are a subdivision of fundamental trading).
So, an answer from a different point of view.
Bob
The high is the highest that the price has been since 2001 when the new forex spot market began. The low is like wise the lowest price. The trading area is everything in between. Where is the best seat at the football game? Half way between the two extremes.
Countries need to keep their currencies in a reasonable balance with all the other currencies but especially with its neighbors that it trades most with. The span between the AUD and the NZD is half of what the eur / usd is. There are fundamental reasons for that. Knowing that the central banks will change interest rates to make their currencies balanced there are ways to take advantage of that by trading toward the center. Now I am talking about fundamental systems here not technical ones.
Therefore, the statement that 'We can not avoid losses even if we wish it', is no longer true. You can learn while your computer trades a system that humans can't use, (Cyborgs excepted), but you will understand the market from a fundamental perspective which then makes learning technical a whole lot easier.
When tech traders talk about high/low, they are only looking at the regional hills and troughs, if you can see the same thing from a larger perspective, you can have a system that took over 3,000 trades in 15 months without a single loss. When technical traders hear that they tend to scoff, it sounds unbelievable to them. So why learn technical trading if a fundamental system is so strong? You will make more as a technical trader than the safe fundamental systems tend to make. Remember that there is a relationship between risk and reward. Systemic systems are geared to the safer side. (Systemic trading systems are a subdivision of fundamental trading).
So, an answer from a different point of view.
Bob
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