1min Chart setting
- Thread starter Andrewtuk
- Start date
Based on what you have asked I can conclude that you are relatively new to trading and you have not discovered the fact that you can be much more profitable without using any of the stated indicators.
you more of a chart pattern guy, carrer?
No, he's more of a troll. Obviously he didn't even attempt to answer your original question.
SMA's and EMA's are fine, the rest pretty much rubbish, I just use a few SMA's to help me judge direction, when it's going say up, jump on it, keep it simple.
I'm currently messing with, 7, 15, 24 sma's, the tricky part is avoiding choppy times!!
Avoiding chop, might take a few years, Although I make $$$'s, I often screw it up and waste money in chop.
I'm currently messing with, 7, 15, 24 sma's, the tricky part is avoiding choppy times!!
Avoiding chop, might take a few years, Although I make $$$'s, I often screw it up and waste money in chop.
I didn't ask a question, though?....
MACD, RSI, stochastic are more like oscillators and tell you speed of recent price, charts alone can't tell you unless you spend much time studying and back testing, but using all three is overkill. The periods of moving averages is nothing but study of price and reaction of a moving average, many people think it is best to go with fast, but I don't like fast as it way too many false signals so stay 18-21 is used by many and you want to used them to show where price to retrace too. Indicators themselves should not be studied till after you have totally memorized price action which may take at least a year cause many variations and one minute charts you have to be that much faster. Since you starting out, go with like three minutes so that give you more time to look over the chart for support/resistance, areas where in past price stopped as far as horizontal area or trendlines.
Indicators are best learned after you have gotten extremely good like in being expert status. Indicators show a quicker way of reading from price, especially if day trading 2-3 markets at same time and checking for reactions around moving averages. Oscillators show speed and lack of speed, and looking for divergences happens when highs of bars break previous highs by small increments, like in ES, break of 1-3 ticks will normally look like divergence on most oscillating indicators whereas 4 ticks might show highest reading, so trading is made up mostly by identify nuances and less so of bigger picture unless you going for large profits, but it you going for much small profits, know what the forest is doing is ok, but scalping you are staying in trades for few minutes. Since you are starting, until you can breath Price Action or structure, you really need to know how to read it first and indicators will be a delayed action, they are great when you know the relations of what the indicator should be doing when price is doing something and when indicator is doing something odd when those who don't use indicators would not have a clue, but that takes much study. It is like a doctor who sees a patient and tries to identify the problem (chart reader) and doctor who took blood samples and using microscope to discover problems (Indicators), so blending both can enhance your abilities, but chart reading takes longer to study and that is where you should chart.
If you trade like ES, you are wanting to trade a more controlled instrument that many use as hedges, so you learn how to trade chop or at very least be able to identify quicker to stop taking trend set ups. But say market tanks very very bad, say ES gets into 400 range one day, it might be in chop for years, and you going to take a bath cause you can't trade, you don't like chop cause you have not made chop a friend. Learning to break down price is only done by numb nuts like me, studying the length of waves, reactions of up waves are different than going down, having a name for each bar, group of bars and their relationships to one and another, you learn what a wave distance should be in trend and chop is often needed for retracement by trend traders, if you study chars enough you will realize that at highs, chop happens less often than at lows, so the chop is actually meaning continuation and leans up market going up, so buying near lows of triple plus areas of previous price give high percentage trades. So chop actually makes you a better trader. And when you just plain as smart as sack of marbles, moving averages are going horizontal and price bars are not trying to get away from moving averages.
The issue with Chop is :-
1. your buying a Low say, quite frequently Low's break and turn to downtrend = Loss.
2. Bad entry in chop, limits your profit hugely as it's only got a 10pip range anyway way ( FX )
3. By the time, you factor out the spread and your comm's, most of the time there isn't a lot of profit left.
4. Then it's chop, trying to trade it with a tight ish SL just gets the SL hit all the time by damn spikes, bigger SL, no.1 happens and bigger loss.
Trying to reduce and give up on chop currently, it's costing me too much in $$$'s and time
Where the $$$'s are being made, is jumping on the moves like in GBPAUD at 14:45 GMT, join the buyers basically. Try to get 50pips say for risking 10 area.
The time you trade is important, stop away from news, creates spikes which hit tight SL's, 14:30gmt till 18:00 is the best Trend zone and where the $$'s is made!