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Post by Segwin on May 29, 2015 6:37:20 GMT -5
Hello All,
I know the trend is your friend and to go with the flow however what constitutes a trend? That is to say what time frames count? Should we look at the day chart or the last month, the day chart for the last week, the 30 minute chart for the last day and so on?
Often time you have a strong trend in place however the last day on a 30 minute chart has a counter trend showing.
Thoughts?
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Post by ddtrader on May 30, 2015 13:45:12 GMT -5
Hello All, I know the trend is your friend and to go with the flow however what constitutes a trend? That is to say what time frames count? Should we look at the day chart or the last month, the day chart for the last week, the 30 minute chart for the last day and so on? Often time you have a strong trend in place however the last day on a 30 minute chart has a counter trend showing. Thoughts? Hey Segwin. There can be no correct answer to your question. That's why there are so many opinions on the market & so many ways to trade. More importantly, those different opinions is what gives us an opportunity to trade. Of course the basics of an up trend are higher highs and higher lows (and visa versa for a down trend), but like you asked - where do you draw the line? what time frame. The answer will always be subjective. But thats ok. Once a trader has developed their own trading system, they need to define the market based on that trading system every time. Then let probabilities do their thing. Meaning, if you always look at the 4H chart, then go by that chart. If this one time you noticed that the daily chart poses resistance, you have two options. You can ignore it and live with the probabilities of your chart or you can respect the larger time frame in this instance - but you must question yourself, why am I concerned regarding the larger time frame now and I wasnt concerned with it before?? The point is to know your system and respect it with the utmost respect every time. If you do that , you should be alright. |
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Post by Segwin on May 31, 2015 11:17:01 GMT -5
Thanks DD for the reply. I figured that there might not be a pat answer for the question but you don't know until you ask.
I've been studying Forex since 2-2015 and have been down a few different paths already. I purchased Bob's book and, so far, it seems like a solid format (or at least as one can get). After I started reading I Googled 70 tick chart and came upon this forum and web site. I like the fact that Allen has made videos of the trades to share with others. I find videos very helpful, and a lot more than text alone, to help in the education.
Thanks again,
Terry
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Post by ddtrader on Jun 1, 2015 0:38:55 GMT -5
Thanks DD for the reply. I figured that there might not be a pat answer for the question but you don't know until you ask. I've been studying Forex since 2-2015 and have been down a few different paths already. I purchased Bob's book and, so far, it seems like a solid format (or at least as one can get). After I started reading I Googled 70 tick chart and came upon this forum and web site. I like the fact that Allen has made videos of the trades to share with others. I find videos very helpful, and a lot more than text alone, to help in the education. Thanks again, Terry Anytime Terry. Let me give you some advice from one newbie to another. This will take a long time to master. Imagine that you just started law school. Would you even consider litigating? Obviously not. You would know that law school takes 3 years and then you start looking for a job and then you get experience etc. I think the same is true for trading. It will probably take that long to become consistently profitable, give or take. I'm sure you heard that some 90% of forex traders lose all their money and give up. I personally believe it's because they start out assuming that it's easy - and it's not. Everyone starts out because of the mega potential to make money. So why give up so quick when the pot of gold is so big at the end of the rainbow? If I were you I wouldn't even think of giving up till 2-2016. Study, rehearse and practice and you'll get better and better. good luck. |
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Post by Segwin on Jun 1, 2015 7:17:59 GMT -5
Thanks again DD.
I have no intention of ever giving up. Forex fits my personality like a glove and I really enjoy studying. I excel at technical challenges given enough time. Although I have a live account at FXCM I haven't touched it yet as I am nowhere near ready. Most of my time is spent learning and practicing on a demo account.
I'm a home inspector by trade and will be 60 this year. Although I love the work my knees can't take crawling around to many more attics. I look to Forex to add to my income with realistic expectations.
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