@CrazyTrader hi mate, i think price will make a bearish movement because buyers has lost their power to push up the price.... but sometimes i was confuse, how i can identify a valid reversal candle like doji or hanging??? i usually trade in daily chart, if price goes around S/R area i will go back to look a indecision candle in 4h time frame?? how do you think about that, my strategy is effective or not??
beforehand I am not responsible for any looses that will happen but: in THEORY when price hits support or resistance it means a change of trend, retracement, breakthrough and trend continuation, when trading price action there are many simple strategies available the key to trading those strategies you must consider other factors such as trend, support and resistance, latest financial news sometimes you can use SSD, MACD or RSI to confirm the signal you always have to look for couple of reasons to enter a trade rather then just a hunch/hope and just because the price acted out and hit resistance now also remember that this will not work on short time frames below 1 hour, now one thing you have to know is that whatever strategy you pick to trade you will have loosing trades sometimes sequences of loosing trades, stick to YOUR STARTEGY if you are having a crappy day STOP comeback the next day, also trading is not fun it is very boring and emotionally draining. BTW its not a good idea to ask people on how to trade every trader has their own way of trading that fits them i'd suggest downloading something like market replay software and trading that for a while you can also do a demo account but with market replay you can speed up or slowdown gives you an ability to test your strategy much faster
Axel92 posted: hi @Pharley what time frame you trade?? some people said daily chart is most accurate to predict the price action.. but sometimes i lost the moment to entry the market...how do you think about it?
I use the weekly charts and zoom out. Then I draw major support/resistance (supply/demand) areas.
Then when price gets near those I go to daily charts - I want to see set ups on the daily - pins bars, engulfing etc, but always at these areas.
Entries are taken off the daily or 4 hr charts. Most often on 50% retracements, or retracements back to minor support/resistance areas (taken off 4 hr charts).
As I look across perhaps 10 pairs, there is normally something happening not far away. If I want some more action (and can have some time in front of screen), I take the 4hr charts, draw S/R areas, and trade the 15m or 1 hr chart.
But when I'm in a trade, it's how I go about it that produces huge gains. If I'm entering off major S/R, then I enter multiple times during a run. In effect for a run of say 500 pips, I can gain double, triple or 4 times that amount of pips.
The key thing to this is risk management and how I manage it. Targets are determined by major S/R areas but risk mgt during the trades is absolutely crucial. I keep risk at a minimal level at all times, no matter how many trades I've entered on a run. If my risk is 3%, then even with 5 trades open, my risk is still 3%.
By doing this and using price action (S/R, channels, candlesticks) I can normally get 50% gain on the account during a run.
Now I've taken off my cTrader account from myfxbook, as it kept producing the wrong figures - showing a 99% loss when I'd actually gained 60 pips etc. Otherwise I'd show it - perhaps I'll link it again. I changed brokers 6 weeks ago so decided to start myfxbook and the account is currently up about 210% during the 6 weeks which I'm really pleased with. And that's not taking any more risk than normal.
You really don't need to take big risks to get big gains - you jut need to work out the way to enter multiple times, protect the gains you get, manage the risk and manage the trades. Once you know how to do it, you're always on the lookout for those types of runs. I've a thread on forex factory explaining how to do.
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