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#1
23rd-May-2009, 09:57
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Chart periods and indicators
Hello all,
I started reading about forex trading a while ago. At the beginning I was very enthuziastic and everything seemed to be easy  I made some good trades on several demo accounts ... beginner's luck of course.I decided to go for a real account soon so I started reading some technical stuff, but as far as I go into the reading it's harder and harder. I think I will base my trade decision on technical analysis rather than fundamental, but still not easy What chart period are you using and what indicators? For the last 2 weeks I tried to identify patterns (candlestick patterns) and enforce them with some indicators like RSI and MACD on 1, 5 and 15 min charts. I can say that trading in 1 and 5 min charts it's .... too hard to do it. So what can you advice me? What charts should I use and what indicators are best ? I want to trade like a pro not like a beginner
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#2
23rd-May-2009, 22:56
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Re: Chart periods and indicators
First, my sense is that many Pros do use fundamentals; so don't cut yourself short in that respect. At the very minimum 1) Learn the basics of the standing news reports for the currencies you trade, 2) Observe how the market reacts to news.
Second, technical analysis. I use only charts, no indicators. For me charts are clear and transparent whereas indicators are murky and opaque. I am also against curve-fitting which all indicators must do to some extent with 'parameters' and 'default settings' and such. What happens when the music changes (as it often does) and those parameters no longer work? If you do develop an indicator battery, keep it balanced. Don't use all 'trending' or all 'trading market indicators. And, IMHO, Keep It Simple. Be sure you really know what an indicator is measuring. Does it really show you something you cannot see directly off the chart? Third, for chart interpretation I use methods developed by my mentor many years ago. The primary one is the Goodman Swing Count System. There is an article on it in the GoForex articles repository. Finally, the markets can only go up or down. Sideways can't hurt you unless you are impatient or trade options. The trend is your best friend. Identify the major trend and look for reactions to it for a place to enter. I am sure others will have more encouraging things to say about indicators for you!
__________________
Getting Started in Currency Trading http://www.goforex.net/forex-trading...gettingstarted
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#3
15th-June-2010, 08:58
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Re: Chart periods and indicators
Quote:
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#4
28th-December-2010, 16:11
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Re: Chart periods and indicators
Yeah it is pretty normal to get bogged down in the detail. I think like everything else in this world everyone rushes it. Take your time.
Indicators are only different ways of displaying price. Some maybe more visually easy to trade than price and thus are worth using. But as you go along you will find that because they reflect price most inidcators show very similar information. Personally I would trade using a mechanical price based system before using indicators. But again this takes time to design, test, retest, forward test and more importantly decent trading capital. Unless you are trading using the information candlesticks give you don't put them on your chart. They will only distract you. Use simple bar charts if you want to see highs and lows or a line chart. Got loads of indicators to suggest but would take to long to post or a link would be spamming but a bit of time on google will help you find what you are looking for and show you that you may actually not need it.
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