Page 1 of 2 12 LastLast
Results 1 to 10 of 19
  1. #1
    Active Member Frontline's Avatar

    How to trade indecisive market !!!

    If you look the 1H timeframe charts you see hourly dojis. Sometimes there are several dojis of approximately same size in line - bulls and bears are fighting and can't decide who is the winner. These are very easy End of Hour -trades.

    Scan the hourly charts, and if you find a hourly doji wait for the next hour to see if the battle continues. Open another 5min - or 1 min chart if you please - and watch the price move to reach the high or low of the previous doji - it must not go much higher or lower - and place a buy or sell, expiry end of the hour. If you manage to catch high and low enough points you can make two trades of the doji.

    If the price continues considerably higher or lower then the fight has ended and there will be no doji, but if the price turns and goes back you can place a second trade on the same direction.

    Three or four dojis is very usual, but be careful with the fourth one - it can be the end of fight and the price can break out.

    Practice first with a demo trade, and learn to trade the dojis. You will see it is quite an easy way to trade. Good trading!

  2. #2
    Legendry Member Michael Hodges's Avatar
    sounds pretty risky, your basically assuming a candle will become a doji because the one before it is a doji?

  3. #3
    Active Member Frontline's Avatar
    Quote Originally Posted by Michael Hodges View Post
    sounds pretty risky, your basically assuming a candle will become a doji because the one before it is a doji?
    Of course you have to wait for to see if the battle continues and the next candle is a doji. If you look at the charts in 1H timeframe you can see those 3-4 dojis and how they are of the same size. When you open a lower timeframe chart you can see very tight channel trading. These usually happen in slower market times. AUD pairs have them most frequently.
    Well, nothing is perfect, but you can see it can be very easy way to trade.
    Last edited by Frontline; 02-25-2016 at 12:15 PM.

  4. #4
    Legendry Member Michael Hodges's Avatar
    Sounds like you are using doji's on the one hour time frame to identify short term trading ranges, and then using a lower time frame to enter trades based on the limits of that range. Interesting approach.

  5. #5
    Active Member Frontline's Avatar
    Quote Originally Posted by Michael Hodges View Post
    Sounds like you are using doji's on the one hour time frame to identify short term trading ranges, and then using a lower time frame to enter trades based on the limits of that range. Interesting approach.
    Yes, that's right. And the hourly candles need not be exactly dojis but candles with big wicks. Important is that the hourly candles are approx. same size, where you can look for the high and low of the next hour.

  6. #6
    Legendry Member milos's Avatar
    I have the following questions:
    1.When did you watch the market and charts?
    2.What time is it?

    I know that after 12pm by EST time zone when London is closed there is low market price movements and undecided trend line.

  7. #7
    Active Member Frontline's Avatar
    Quote Originally Posted by milos View Post
    I have the following questions:
    1.When did you watch the market and charts?
    2.What time is it?

    I know that after 12pm by EST time zone when London is closed there is low market price movements and undecided trend line.
    Hi Milos. I usually scan the 1H charts after the European session buzz around 10:00 - 13:00GMT and then in the late US session as you said. With 1H charts you can see if the market slows down and trades in a tight channel. It does not happen every day.

    I'm on the other side of the pond, and the time here now is 9:40gmt (11:40 my time), if you asked that.
    Last edited by Frontline; 02-26-2016 at 08:40 AM.

  8. #8
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by Frontline View Post
    Hi Milos. I usually scan the 1H charts after the European session buzz around 10:00 - 13:00GMT and then in the late US session as you said. With 1H charts you can see if the market slows down and trades in a tight channel. It does not happen every day.

    I'm on the other side of the pond, and the time here now is 9:40gmt (11:40 my time), if you asked that.
    do you only look for long upper and lower shadows to indicate ranging conditions or are there are support/resistance indications that work for you?

  9. #9
    Active Member Frontline's Avatar
    Quote Originally Posted by Michael Hodges View Post
    do you only look for long upper and lower shadows to indicate ranging conditions or are there are support/resistance indications that work for you?
    I only look the high and low of the hourly candle. If the next candle stops to same high and low levels it shows the range where the battle is going on, and the third candle is usually the best trading opportunity. Very often there are four "battle" candles (3-4 hours battle), but you must be careful with the fourth one - it can already break away. But if the fight happens in a mild uptrend of the pair, you may also get a trade if you bought at the bottom of the fourth hour, and vice versa with a downtrend.

    In a steep up/downtrend this is not wise to trade (but experienced traders can do that too).

  10. #10
    Active Member Frontline's Avatar
    Today's 1H chart of EUR/JPY between 13:00-15:00GMT has an example of bulls and bears -warzone.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
3