old school - 1
LOL, I don't know whether to cry or laugh thinking about it now.
And the simple reason is,.... because I have tried so many, and it's with trying these diff setups that one eventually gets to grip with how the market works, or I should rather say how you can work the market.
At the end of the day, all setups work to some degree the same. It depends on you as a person how you manage your time and money into the equation.
Don't be afraid to try new things, you'll never know what might surprise you. You can give the same ten people a simple 10 step plan to make a chocolate cake, and at the end of he day you'll have 10 chocolate cakes, yummy, all tasting different. And that is exactly the same with Forex. I look at a RSI and see a line slowly zig zgging from left to right while it travels from the top of the chart to the bottom. Others will see momentum falling and rising. We all see the same thing, but it is the way that you interpret it. So that it was I said in the 2nd paragraph, it depends how you can work the market.
I downloaded screenhunter from screenhunter dot com last year to take photos of my charts. It a free tool. The reason for that was to show friends different setups and get advise. In hindsight I'm glad because looking back, my trading style has changed drastically. You'll just need to look at the dates at the bottom of the pictures to see when it was taken and how things progressed. I urge you to do the same. Once a month take one or two snap shots and save them, who knows you might be starting your own hedge fund or investment company one day and these photos will be priceless then.
One more thing as a foot note, and I have witnesses, everytime I changed my trading style or system I would tell them all that's it, I'm happy with what I have now and I'm not gonna change. Till I learn a bit more then want something more etc etc etc etc etc etc etc, well you get the idea. By the way, all the indicators on the pics are available on this forum.
So sit back and enjoy the ride, it might just get a bit bumpy along the way.
Looking at this picture I want to kick myself in the teeth. Why do you ask. In the very first window there, I amalready using MTf stochastics, and then it just did not seem to important to me.
The second window I had a macd indicator, then overlayed another one over it with diff settings, to try and 'create' a higher tf macd.
Then just juice indicator followed by ADX.
On the main chart itself, I would draw fibs from every, well what I thought then was important, high and low swing. I would also try and draw trading channels. I also used Barry Stander's supposrt and res indicator.
Ok, so new year, new charts. First thing I did was change my background colour, lol, and this took my like 2 days to decide on a colour.
I still had the setup of indicators as in the previous cad chart, but as an extra measure I added in the bottom window 2 different moving averages, to take a trade on the crossing, whilst the white line told me whether the trend was up or down.
Also where point a on the main chart is you'll notice a white line, this was a breakout indicator, can't recall the name, but it just gave the high and low of certain 4hr periods that I wanted. I decided not to use barry standers supp and res indicator.
It's real funny all this, it's like walking down memory lane as I remeber specific things, they just jump out at me.
Ok, so the next day after the previous posted chart I decided again I needed a change. It was because I made a bad trade. So I dumped the xtra macd, and replaced the moving averages in lower window with a RSI, oh and the chart went back to white.
February rolls on
Yip, new month means new changes, I thought I'd try the route and folow what the big boys do, using the weekly pivot indicator, with the rsi and bollinger bands in the bottom window, oh and the chart bakground changed.
Another brainy idea I tried was going the Murray math route in March, wher you use the levels -2/8 drawn from the daily and the 4hr chart onto the 15min chart. That did not go so well so...
Back to multi time frame stochs again. Notice in the first window the green and black wavy line, that was houlry macd in there.
I went on holiday in May, and as most of us, could not stop thinking of Forex. We got stuck in a traffic jam, and a started thinking what if half the cars knew there was going to be a traffic jam, would they have taken another route? And then I got tothinking what if I knew on different timeframes what there levels of supp and res were. (Back to Barry stander but had forgotten about him by now). So honestly for a whole week I had my screen look like this. One curreny, 2 time frames, 2 charts. all with there own indicators on.
Scary to think this was not that long ago. I for one can say that I did not trade candles, meaning that I do not look at a reversal or candle patters etc to enter trades. Yes that is wrong I tell you now.
But in June I was tradiing not seeing candles, I would look at the diff macds at the bottom and see what they were telling me, and then have hourly ma's on a 15min chart then trade the crossing of the 15min ma's.
I say this with a smile but it's little wonder you wanted to kick yourself in the teeth. You can barely see the price on that chart what with all the lines!!
Big tip! - Distill your system down to 2 indicators at most (as triggers) with another indicator (your choice) for trend recognition. Trend recognition is as easy as a 50SMA or just drawing ONE trend line.
Whether you decide to use a Step moving average, Standard deviation channel or other it doesnt matter but JUST USE ONE!! Life and trade decision making will become so much simpler.
No need to get caught up with Fib and pivots 'magic' because all those extra's will only conflict with simplicity.
All the best.
guys, let's let Spirit to finish chapter, and all the Q&A or comments - after? (2 not interrupt, more coming up)