I have done a thesis on Forex market. Although macro news will be impounded into prices in the long run, what's really driving the short term price movement (intraday) is order flow (accumulation/distribution). Indeed, when there is news, they provide good volatility to the market but they don't really explain the short term price movement of currencies.
A Free Strategy that works
- Thread starter PipLord
- Start date
Here's a strategy that will get you profitable. I used to trade these a few years ago with great success, I've now developed my own style based off similar and other price action stuff mainly order flow and tracking big money activity, anyway start off with these two patterns, stick with them, get to know them, own them, so you would spot them anywhere and I guarantee you will make money.
BAT harmonic pattern
ABCD
Here's a short video to give you an idea of the BAT .
if your interested I'll dig out a set of rules
To improve your results only trade during london or US times (most liquid)
If the pattern completes at supp or res this will improve results massively.
Hey guys, what broker are you using at the moment? I am not happy with my broker in Australia. I am thinking of changing to either UK or US one. Does anyone know a reliable broker in terms of withdrawing money, no slippage, and speed in initiating and closing positions?
P.s. I am not too sure with some trading strategies recommended here cos they sound quite subjective (with no evidence of reliability) and some has even recommended stock investment strategy (not forex intraday trading strategy). Intraday Forex winning strategy has to be built on the idea that transactions (volumes) are clustered heavily at the tail. Only that way, you can have a winning forex trading strategy.
P.s. I am not too sure with some trading strategies recommended here cos they sound quite subjective (with no evidence of reliability) and some has even recommended stock investment strategy (not forex intraday trading strategy). Intraday Forex winning strategy has to be built on the idea that transactions (volumes) are clustered heavily at the tail. Only that way, you can have a winning forex trading strategy.
Atom 8, lmax fxcm are all good uk brokers.... don't use fxpro took me 3 months to get a lost withdrawal from them, I don't think they liked me as I was porofitable
Thanks Piptaker!
Another good trader has also recommended me IMAX, so I'll definitely consider them along with others you have recommended!
I have seen your trading strategy from a trader that I know. Very interesting and seems profitable strategy!...in terms of patterns, mine is similar but I use moving average, BB and channels and wait until they all agree.
Anyway, once again thanks, Piptaker!
No worries!... I can't recommend highly enough studying harmonic patterns, they also give an insight to measured moves... Once understood and combined with structure you have a very powerful trading system
Trend trading is generally one popular means of making profit in the forex. Getting the direction of a trend in its early stage of formation could turn out very profitable. That is why I really like harmonic patterns as they play a great role in knowing the direction or continuation of the overall trend. This has greatly helped me to make my moves.
Trend trading is cool. At least imagine you were watching for impulse waves with the Eliot wave analysis, and you could correctly identify a fibonacci retracement level as a support, it is very likely prices are about to spring into an extended uptrend here, but should fundamental data like rate hike occurs, a technical system like that could fail because the news is powerful enough to alter with it. What I am trying to say here is don't totally abandon the news no matter how confident you are of your technical trading system.
Non
No I am not a typical fundamental analyst, I use the H4 timeframe for my technical analysis, with a very sound understanding of the Elliot wave analysis. Fed chair Janet Yellenwill give a speech to the US Congress this week on interest rates. Should she be dovish, I intend to see some support lines on my chart turn resistance as the USD recovers from its recent slump.
I don't know how you can make consistent profit with H4 timeframe.
I mean I haven't found a way to make a consistent profit with H4 timeframe. But if you know how, that's good for you
I don't trade on news much.
The chart carries information about future price movement anyway.
I use moving average to define a trend, bollinger band & channels to determine support/resistance and multiple time frames to predict a trend/pullback.
I don't trade on pullbacks, I only trade in the direction of dominant trends.
H1 timeframe support/resistance can be used as a daily target low and high.
30 min timeframe can be used to determine a pullback/trend
5 min timeframe can be used to initiate trades
1 min timeframe can be used as support/resistance level of 5 min timeframe.
Usually, the first 3 hours of London session determine currency prices and if you miss on trading opportunities during these hours, you don't have to worry too much because in the opening hours of New York session, you will be able to observe the same dominant trend (with bigger price volatility).
I know some people underestimate moving average, especially those who use price action. Seriously, I don't know how they can maintain consistent winning rate without using TA tools.
I mean I haven't found a way to make a consistent profit with H4 timeframe. But if you know how, that's good for you
I don't trade on news much.
The chart carries information about future price movement anyway.
I use moving average to define a trend, bollinger band & channels to determine support/resistance and multiple time frames to predict a trend/pullback.
I don't trade on pullbacks, I only trade in the direction of dominant trends.
H1 timeframe support/resistance can be used as a daily target low and high.
30 min timeframe can be used to determine a pullback/trend
5 min timeframe can be used to initiate trades
1 min timeframe can be used as support/resistance level of 5 min timeframe.
Usually, the first 3 hours of London session determine currency prices and if you miss on trading opportunities during these hours, you don't have to worry too much because in the opening hours of New York session, you will be able to observe the same dominant trend (with bigger price volatility).
I know some people underestimate moving average, especially those who use price action. Seriously, I don't know how they can maintain consistent winning rate without using TA tools.