Chart periods and indicators - Forex Forum - Ask-an-Expert

fxacs · #1 23rd-May-2009, 09:57

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

HawaiiDuane · #2 23rd-May-2009, 22:56

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!

#3 15th-June-2010, 08:58

Quote:

Originally Posted by fxacs

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

It is normal to discover that as you learn more about trading it seems to get more difficult and more complicated. But part of that is an illusion. I believe that part of success is in knowing what NOT to focus on and using hardly any indicators. There is a much easier and more profitable way to trade that gives more winning trades and bigger winning trades with smaller losses. But people will spend their lives caught in the illusion. Everyone will tell you a different thing. There are many different books and courses.

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