Look at my setup:
Notice, that the day began above the Pivot line (Magenta dotted).
Notice, That the Daily Open line (White dash) was above the Pivot line and the price went quickly above it.
Then, notice how the price retraced after hitting R1 (Red dotted) then the same at R2, and then MR3 proved to be a stronger resistance.
For me, the one which I trade on.
For you, it is your decision, only.
Hopefully he didn't charge you too much .
Stop sending mixed messages [consistent/constant].
All accusation, no-proof either way.
He did not charge me a penny!
And I share it for free with others.
I believe, that everything others pay big bucks for,
I can get for free, and I often do!
Sorry for my spelling mistake!
I am not a native speaker, and I had doubts about this one.
I meant "consistent" as in:
1. steady, even, regular, stable, constant, persistent, dependable, unchanging, true to type, undeviating.
The only proof are your results!
This is actually, why noone can write a profitable EA.
Because, what works on one chart, may not work on another.
My recent discovery, what I am sharing, is really good!
Most of all, I see it clearly!
Will this method be good for automatic trading, I do not know!
Have you ever wondered:
Why 95% Forex traders lose money?
I had this idea this morning that if I can find the answer to this
question, I will automatically answer the question:
Why 5% Forex traders gain money?
And suddenly, everything becomes clear.
Apart from the very few who are just damn lucky,
the winners are those who:
1. Have a strictly defined strategy, a business plan.
2. Are consistent in applying the strategy. And never brake the rules.
3. Apply cost management. In Forex Loss is your cost (SL).
Thus it becomes obvious, that Profit or TP must be larger than Loss.
4. And most importantly, I stress, MOST IMPORTANTLY,
the winners can READ the chart! Not just look at it,
not look at indicators, but actually read the plain chart!
What is the chart to a successful trader?
The chart is nothing less than the price CV, as to speak.
The price CV written in real time, live.
The chart contains all the information about the price action.
Thus, arises the question, why did people create so many indicators?
Indicators show the price history in another way.
They aim at picturing, translating the language of the chart
to another picture language.
Sometimes indicators can be helpful. But most of the times
they are a distraction from the chart itself, because the trader
must concentrate not only on the chart, but on indicators, too.
After a while, one has so many indicators on the chart, that
the chart itself becomes a nuisance, cause one can not see it, anyway!
When you hear many people speaking at one time, all you hear
is just noise. What happens, when each one is speaking a different language?
The mind shuts down, and we make foolish, illogical decisions
which effect in Loss.
All indicators take the data from the chart,
The key to success is understanding the language of the chart.
Bar for bar, candle for candle, bar for bar,
bar for bar, candle for candle, bar for bar...
D1, H1, M5, M1 - S/R
Until we reach our goal! Until we finally see,
understand price action and what it tells us.
What it is writing in this, nonetheless simple,
1. Because they do not have a strictly defined strategy.
2. Because they are not consistent in executing the strategy.
3. Because they do not manage the costs properly.
4. Because they can not read the chart. They do not understand the language.
We lose, because we open a trade, and the chart goes the opposite way.
We close the trade at SL, and the chart returns, again.
We could have not lost, we could have gained, even!
Why is it so?
Because we did not understand the chart!
We could not read the information in the chart.
We were aiming, but we did not see where.
First on demo accounts, until we start opening trades at
the proper moments. The ones we were seeing all the time,
before, but somehow were never able to catch, because
we were, actually, trying to catch while blindfolded.
The trader's mantra:
Until we get the cream...
Can't expect different result when Human and Expert trade the Exact same way. All accusation, no-proof either way.
If you can show me an EA which can trade like a human, MAN, I will make you a billionaire in no time!
The computer understands only two states, O and 1.
These states are translated into certain voltage values.
All other states are undefined.
Thus, the computer cannot define such terms, as "maybe", "close to", "about", etc...
The programmer must define definite situations.
Those situations occur not only at profitable contexts.
They more often occur during unprofitable situations.
No EA can judge that! Only Human can do that!
Additionally, there is a certain flow of action.
If you get in at the wrong moment, you will also miss many other right moments.
On the other hand, no human can work like a machine.
Humans have emotions, machines do not.
Humans have feelings, machines do not.
Humans have huntches, machines have only data.
Humans get tired and must rest. Machines can work much, much longer.
There, just, is no possible way Machine and Human to trade the exact same way!
But, the Human can learn, can reach conclusions,
and we can also programme our minds!
Make use of these Human factors.
Maybe, some day, Human will create a machine
in the resemblance of Himself?
As for the moment, I doubt I will live to that day,
so I must make sense of what I have now.
How would you write a programme like this:
When price crosses somewhere around this level,
and retraces to somewhere about here,
and bounces of somewhere close to there,
provided that some time ago the price reacted in a similar way,
and provided the news is good,
and it does not rain in California,
The Human can do that.
Can the computer?
I am not sure if this is clear to everyone.
I, somehow, get the impression it is not.
The Support and Resistance levels are not definite levels.
They are not levels the price must obey!
Nor are any other levels shown by any other indicator!
The price has no restrictions, it is a wild animal!
It is the global market which tames this animal.
We, the retailers, have no say.
The S/R lines have no say.
They are, only, information for the trader, that:
1. Based on the defined D1 trend,
2. Considering the defined long term S/R's on D1,
3. Based on the defined H1 trend,
4. Considering the long term S/R's from D1,
5. Considering the previous day S/R,
We can expect, that the price will be trending in this or that direction.
You, the Trader must decide if You are going Long or Short.
6. Based on hourly S/R's projected from H1 onto M5, hour for hour,
we can expect, that the price will be trending in this or that direction
You, the trader must decide what you are looking for.
The price can either bounce off a potential Support, or pierce through it.
The price can either bounce off a potential Resistance or pierce through it.
And so on, and so forth.
You must only learn to read the chart, then.
You must know what the price is doing,
Bar for bar, candle for candle, bar for bar...
When You read a good situation,
7. You optimise on M1,
And You open the trade.
Ultimately, it is You, the Trader who makes the final decision!
Ultimately, it is You, the Trader, who must be sure, of what He or She is doing!
Ultimately, it is You who is Your own Holy Grail.
No Human or Machine Expert, or any Indicator can ever be The Holy Grail.
It is always You, and You must know for sure, what You are doing!
Then, and only then, will You be on Your way to success!
Most of the times You will win.
Sometimes, the price will do something, you had not been ready for.
Then you simply SL.
And continue consistently.
When cost management is correct, You will be winning!
So, to continue more precisely:
If the big D1 trend is Bulls, and the price is not near any potential S/R, just continue Bulls.
If it is near some important S/R, watch what the price is trending to do.
Is it bouncing back off R? Then the R is strong and we can expect a turn.
Is it piercing through R and bouncing off it from the other side?
Then this R becomes the S. The Bulls continue.
Then project the very same rule to H1.
Then to M5.
Look at your bars or candles, look closely what they are doing in each situation!
Notice every detail of the bar or candle.
Notice their relation to the previous bars/candles (not the next ones, only the previous ones!).
This takes time and practise, unless you are like me and you are willing to spend
14 hours per day studying the charts, bar for bar, candle for candle.
And you must be willing to spend the time.
There is no sense in taking to Forex, if you do not have the time!
@Dadas: Hi Dadas, if I didn't spend so much darn time writing code, I would trade tick charts using resistance/support as guidelines and price action for signals. I find that all three charts - tick, candlestick, and line, each have their own usefulness. Tick charts seem to be the most used market perspective by myself. Here, I'll share a good source to explain signal setups. http://www.learntotradethemarket.com/price-action-trading-forex
@Dadas: Hi Dadas, if I didn't spend so much darn time writing code, I would trade tick charts using resistance/support as guidelines and price action for signals. I find that all three charts - tick, candlestick, and line, each have their own usefulness. Tick charts seem to be the most used market perspective by myself. Here, I'll share a good source to explain signal setups. https://www.mql5.com/go?link=http://www.learntotradethemarket.com/price-action-trading-forex
Thanks, I'll have a look.
You can make money on writing codes as well as trading Forex.
But, you know, just as Cost Management is important,
Time Management is just as important.
Build your strategy.
Point by point, on "paper"!
Inculde code writing in your strategy.
Include Time Management!