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  1. #1
    Junior Member

    A Newbie Strategy?? !!!

    I have read the whole school articles, TWICE! i have been paper trading and trading on Communitraders for a while and i found myself following a strategy that i think is a mix of what i have learnt in the school of BOTS. so i would like to confirm and hear your thoughts and your recommendation that might help me improve it as it has been working fine for me till now but i want to make sure it wasn't luck and i have consumed all my luck on demo trading so when it's real i would be pulling my hair out or the rest of it anyway ...

    here it goes: -

    i check the news; usually from BOTS.com (the weekly tips) or the NEWS indicator and i make sure that no big events are occurring during my trades.
    i then set a 4 hours chart to determine the main trend for the past 2-3 days using the following (RSI setting 18, it should be above 50 for an uptrend and vice versa for downtrend - i confirm that by an ADX default setting 14, for me the main line should be above 25 and D1+ or D1- should be apart from each other (one on top of the other) i may also add EMA 10 and 12 AND bollingers bands and check where the price is relative to the middle line of the bollingers.... so i now have confirmed that the main trend is UP (for the sake of the example)...

    i now shift to the 15 mins and wait for a weak spot in the main trend...using bollinger bands, i wait till the price touches the lower line of the bollinger bands and i also add the stoc. indicator (15,3,3) to identify the overbougt/oversold areas and then trade a call.

    reverse all the above for puts...

    i still don't have confident in myself drawing S/R line or Fibbo so haven't applied them yet to my strategy...

    and i haven't forgotten risk management i only risk 5% of my balance...

    What do you think? i am so looking forward to hearing your thoughts..

    thanks

  2. #2
    Master Member Bogdan G's Avatar
    I dont know about others but I like it and I think your winners are not luck so dont worry about it running out
    It has a sound logic behind it because you wait for a retracement to an already confirmed trend. What makes it even better is teh fact that this trend is identified and confirmed on a higher time frame and the entry is taken on the lower one.
    Some might argue that you have too many indicators, but as long as you are comfortable with them and can read the charts despite having so many, it's totally fine (in my opinion of course).
    Cheers.

  3. #3
    Junior Member
    thanks Bogdan G, yeah i have busy charts with indicators that i am thinking about getting another laptop to be able to monitor all these indicators at once . the thing is that i need reassurance from more than one indicator to trust in my trade. i try to avoid the noise as much as i can... if you don't mind, i have a question or actually a confirmation: reading threads i see you talking about fast/slow markets, do you mean ranging and volatile markets? or is this something else?

    also how can i have more confident in my S/R lines and Fibbo? i try to apply them but i always feel like i have made something wrong and i can't relay on them and from my understanding they are important lines on my charts and might be the difference between ITM and OTM...any tips on how to draw them with confident?

    thanks mate

  4. #4
    Legendry Member Michael Hodges's Avatar
    Bogdan hit on my main point and that was there may be too many indicators but, like he says, if you are comfortable then don't worry about it.

    Strategy sounds good so far, keep us posted on your progress.

    Support and resistance are important factors to learn. One thing to remember, especially with Fibs, is that they are not signals. Fibs and Support/resistance lines are places where a signal could happen. They do not determine trend or provide entries. Use them to target areas for signals you get with other indicators. I suggest, since you are on 4H and 15 min charts now, to move out to a chart of daily prices and draw some practice lines, look for tops and bottoms and congestion areas. Then, move back down to your 4H charts and watch how prices are affected by your lines when they approach them.

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  6. #5
    Master Member Bogdan G's Avatar
    Quote Originally Posted by akrambr View Post
    thanks Bogdan G, yeah i have busy charts with indicators that i am thinking about getting another laptop to be able to monitor all these indicators at once . the thing is that i need reassurance from more than one indicator to trust in my trade. i try to avoid the noise as much as i can... if you don't mind, i have a question or actually a confirmation: reading threads i see you talking about fast/slow markets, do you mean ranging and volatile markets? or is this something else?

    also how can i have more confident in my S/R lines and Fibbo? i try to apply them but i always feel like i have made something wrong and i can't relay on them and from my understanding they are important lines on my charts and might be the difference between ITM and OTM...any tips on how to draw them with confident?

    thanks mate
    Well, I consider a fast market one where price moves with big candles (lots of pips in them). Small candles, crawling without clear direction indicate a slow market for me. Usually the Asian session is slow and London/US session is fast, with increased volatility. A market can be ranging but not slow.
    About Fibs and S/R, I thing I wrote 2 articles (one on each) explaining how to use custom tools which automatically plots them. Using auto plotters is not really the best way, but if you have doubts when drawing your own, it's better to get extra confirmation from those tools.

    Both fibs and s/r are subjective because people draw them differently so... just make sure you use significant highs and lows for drawing fibs (always drag from left to right). For S/R levels, well to keep it simple just identify places where pretty strong moves were stopped and reversed. The higher the time frame, the better. But again, to make sure (as sure as we can be) your level is a true one, it has to be obvious. Please take a look at EUR/USD on a Daily chart (zoom it out a bit) and draw a horizontal line at 1.3820 (1.3830) and another at 1.2750. Those are obvious levels. I know 1.3830 was pierced, but price reversed immediately so that level is very much active as resistance.
    Cheers

  7. #6
    Master Member Bogdan G's Avatar
    Quote Originally Posted by Michael Hodges View Post
    .... move out to a chart of daily prices and draw some practice lines, look for tops and bottoms and congestion areas. Then, move back down to your 4H charts and watch how prices are affected by your lines when they approach them.
    Yes, exactly.

  8. #7
    Master Member Bogdan G's Avatar
    Oh and one more thing: S/R are not exact levels all the time, but rather zones. Check out a hourly chart of EUR/USD and tell me where do you see resistance (the most recent and obvious one)

  9. #8
    Junior Member
    Thank you guys. i drew lines on daily and hourly charts, also on 15min chart the levels i have are: 1.2836, 1.3399, 1.3581, 1.3682 and 1.3792

    are these OK? i dont know if i can trust them... thnak you

  10. #9
    Master Member Bogdan G's Avatar
    Nope, they are not (in my opinion of course, but i might be wrong):

    Quote Originally Posted by Bogdan G View Post
    Oh and one more thing: S/R are not exact levels all the time, but rather zones. Check out a hourly chart of EUR/USD and tell me where do you see resistance (the most recent and obvious one)
    On the hourly chart I mentioned you will probably notice that resistance is a zone, not a to-the-pip level (that's why I asked you that question in the first place).
    1.2836 is not support. Real support is at 1.2750. Didnt check the others but those are too exact.

  11. #10
    Junior Member
    Click image for larger version. 

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    Can i count on these as well? or will they be more confusing than useful?

    dailyfx.com and sorry for any inconvenience

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