How do u use technicals?
Aer u looking for a pattern or some type of setup?
Anything in particular u care to share?
Aer u looking for a pattern or some type of setup?
Anything in particular u care to share?
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LouDogg's Spot Forex Trading Journal
- Thread starter LouDogg
- Start date
Well first I set my chart for candlesticks.
I initial look at the four hour chart chart first.
I set up the following indicators:
Bollinger bands (normal setting)
RSI (20)
MACD (6,13,9)
Parabolic SAR (.02,.002 and .05,.002)
Exponential MA 10
The ideal set up is when both SAR's change at the same time. That usually seems to indicate a very strong move. That doesn't happen too often though.
Something else that seems to work well is the following:
Say the SAR is indicating a down trend
You find the first down Bar that is entirely within the bollinger bands and under the 10 EMA.
Then you see if the RSI is under 50 (preferable under 45)
That point should be pretty close to the bottom and a big reversal should be eventually underway.
Now, let me stress HIGHLY, that these are hardly perfect. There have been plenty of times that they have underperforming or just not hit at all.
They seem to work though more often than not.
The reason why I think is that the rules are so specific that it keeps me out of the market most of the time.
Also, TA seems to work better on longer time frames.
Anyway, I hope this answered some of your questions.
I initial look at the four hour chart chart first.
I set up the following indicators:
Bollinger bands (normal setting)
RSI (20)
MACD (6,13,9)
Parabolic SAR (.02,.002 and .05,.002)
Exponential MA 10
The ideal set up is when both SAR's change at the same time. That usually seems to indicate a very strong move. That doesn't happen too often though.
Something else that seems to work well is the following:
Say the SAR is indicating a down trend
You find the first down Bar that is entirely within the bollinger bands and under the 10 EMA.
Then you see if the RSI is under 50 (preferable under 45)
That point should be pretty close to the bottom and a big reversal should be eventually underway.
Now, let me stress HIGHLY, that these are hardly perfect. There have been plenty of times that they have underperforming or just not hit at all.
They seem to work though more often than not.
The reason why I think is that the rules are so specific that it keeps me out of the market most of the time.
Also, TA seems to work better on longer time frames.
Anyway, I hope this answered some of your questions.
There are also certain patterns that seem to occur when using Bollinger Bands.
1. The bollinger Bounce. This is obvious, the price is range bound and is bouncing from the top of the Bands to the bottom. Usually happens in slow times.
2. Breakout. What you will see is a bar break outside the bands. Usually, this signals a break out to a higher or lower price. It looks like if the bars are just riding on top of the bands. This can be very dangerous (or profitable)
3. pennant. This occurs after a breakout. The price become Range bound but the Bollinger bands have yet to react to it. Usually implies a reversal of some sort)
I find the bands useful to help clarify my view of the market not to actual trade with.
1. The bollinger Bounce. This is obvious, the price is range bound and is bouncing from the top of the Bands to the bottom. Usually happens in slow times.
2. Breakout. What you will see is a bar break outside the bands. Usually, this signals a break out to a higher or lower price. It looks like if the bars are just riding on top of the bands. This can be very dangerous (or profitable)
3. pennant. This occurs after a breakout. The price become Range bound but the Bollinger bands have yet to react to it. Usually implies a reversal of some sort)
I find the bands useful to help clarify my view of the market not to actual trade with.
Quote from LouDogg:
but it looks to me that we are just about ready for a move up. As I type, the price has risen to 1.2035. So it may be worth it to stay in for a little bit longer. We'll see though
Hi again,
I hope your right. I am also long now. But I think it's a bad idea adding to loosers. 4 out of 5 times it may work OK, men what will do you the 5th time, when the price don't come back?
I do agree that adding to losers is in general for losers. I try to avoid it. In this case though, I thought it was'nt so much a problem that my judgement on direction was wrong but that I got in too early. I am trying to move away from the shorter term trades into more of a swing trading style. I think my method though still needs some work.