I have been reading and studying this forex forum for a while. There are numerous indicators to use, it take some time to compare all of them, once the good indicators are found one will wonder about which time frame to use. I have tried several tie me frames, however, the only best time frame that makes sense for me is the daily. Take a look at the chart and see for yourself. The daily has many advantages over short time frames, one only has to monitor the charts at the end of each day, as apposed to short tf's where you get numerous false signals, you have to sit in front of pc whole day without any significant profits, in other words you become addicted to trading, without any significant ideas on how to trade. Take a look at the chart and let me know what you think.
I couldn't agree more ! Daily timeframe gives less false signals and bigger moves, unfortunately it is easy to become stuck to the screen and try smaller timeframes, many people dismiss daily tf as they want more action... but it's about being patient ! Could you post the indicators ?
Thanks for sharing, great post, just gave it 5* please newbies pay attention to this post it will save you many $$ I am now trading mainly daily with a few EA's running intraday to catch smaller movements so I don't have to watch the screen.
that's right daily pattern is more smooth than 4h or 1h ...but it will risk more pips as SL ...depend on your balance amount...
Forex Indicators Collection
Risk is not that great
The risk is not that great compared to reward. By the way the indicators used are as followed: Heiken Ashi T3, LSMA with period 34, Brain Trend2 Signal,WPR fast/slow. Find the indicators attached.
Conserning stop loss, its better to forget using them, however, closing the trade at the right time loosing or winning is vital! The forex has some risk to it and trying to limit it to unnatural value will not get you far.
You are better off to use stop loss and use higher time frame for confirmation of the signal.
I was wrong in the paragraph above on not using stop loss. If you enter a correct trade and use the reasonable stop loss you are protected.
note: will post WPR slow/fast, in my opinion the best indicator, edited by me for better representation visually.
Source code for indicators
Find mql4's attached below.
Mp -- What Timeframe ??
TIMEFRAME usage depends on experience and your own mental set and "inner clock" timing. Of course, let us emphasize the value of "experience !"
(but as an aside, have you ever looked at the weekly charts -- not much noise there at all !)
those who trade the H4 or DAILY can just set it and forget it, BUT THE DRAWDOWNS, INTRADAY, WILL BE MAJOR compared to trading shorter timeframes, although the average pip gain will be larger on the longer timeframes, naturally !
The large drawdowns happen because the market [B]REVERSES its MAJOR TREND twice a 24 hour day, with minor reversals often every hour and a half intraday --- this is what you refer to as "NUMEROUS FALSE SIGNALS", but the EXPERIENCED trader knows where and when these reverses take place of the day and uses these cycles for their entries and exits, so one traders grist is anothers gruel !
SO, for the newb, without the ability to chart trends and understand support and resistance and HOW the banks move the prices and WHY, the DAILY becomes the ONLY timeframe to use with any amount of safety, at least till there is a few years experience behind them ! Doing this, the newbie MUST be aware of those DRAWDOWNS that WILL HAPPEN during the day with no ifs, ands or buts ---- ITS GONNA HAPPEN, period ! So, in this case, PLEASE mind your margin and manage your money well cause if you dont, youre gonna lose the only thing you have to work with -- your money !
The SECOND DANGERin working the DAILY chart is being STOPPED OUT on a large drawdown, which is why I NEVER USE STOPLOSSES ! Here and now, I will state, as a trader with over 36 years experience, NOTHING steals your money faster than a stoploss wrongly applied !
At this point, understand if I take a long term trade, I KNOW the position is good and why would I need anything else BUT a "tp" point --- Im already gonna watch my margin, either by DECREASING my position size to something that wont endanger my margin, OR hedging my trade with another currency which is trending in the other direction, thereby nuetralizing ANY margin movements ! Backing up my thoughts on this are the number of new traders who report that WITHOUT stoplosses, they are making money for the first time ever !
Now my method of trading is to take a "core" position for a day (sometimes a few days) that is based on my knowledge of support and resistance (its a very simple learned art) and then i "scalp', "flip" and work any short trends I find during the day be they up or down. Allow me to completely DISAGREE with your assesment of short term trading --- making 6 pips every few minutes is NOT something to be sneezed at and since trading is all i do, I might disagree with what is a job as opposed to what you state is "an addiction !"
As you get lower down on timeframes, your "risk" becomes lessoned as the drawdowns are smaller, your number of lots can be larger because of the reduced risk and your trades are faster and more profitable, but you DO have to know what you're doing !
So while I agree with your choice of the DAILY chart, I MUST point out that YOU WILL BE WORKING WITH THE LARGEST DRAWDOWNS of all the timeframes (short of a yearly trade, i guess) and YOU HAD BETTER BE PREPARED FOR WHAT WILL BE HAPPENING --- DO NOT IGNORE THE ADVICE YOU ARE GIVEN ON MONEY MANAGEMENT !
enjoy and trade well
Nice to see you here.
Guess things will really get stirred up now!!
I do understand that one might think that the risk minimal on shorter time frames. I see no benefit in trying to complecate things while trading on shorter time frames than daily. On daily chart the signals might be slow, but there are no false signals as on shorter tf's. The system that I suggested seems to be working just fine. Basicaly do not trade against slow WPR, open and close by fast WPR. The yellow line on WPR's represents empty value. If value on fast WPR position can be closed. One more thing, if close is above LSMA sell is not as strong and more likely not worth taking. No stop losses, just close in time...
For the screenshot see the image on the 1st post.
Please note that my above was simply a small lesson for newbs and not meant to show ANY timeframe as being better, heck I trade the weekly, often as not, as well as the one and 5 minute, so Im the last to point out which is better.
Yes, the risk AND DRAWDOWNS are less on the shorter (which translates into you can make your BUYS or SELLS much larger), but please do not ever say there are no false signals on the daily, as its signals are totally dependent on time of day and what market youre trading in ----- ever see a red daily candle turn green 12 hours later, or the other way around ?
the ABSOLUTE best, as far as noise, is the weekly chart, although one will face some REALLY SUPER drawdowns using that timeframe !
Hi dmeliki could you post the wpr fast/slow indicators?
Besides posting the indicators I would like to mention that the purpose of this thread is to make forex trading enjoyable and stress free, also to point out the ideal time frame, and indicators to be used for trading, since there are numerous indicators found here one has a hard time trying to figure out which ones to use. A word about stop losses: personaly I do not find them helpful, however, one must close the trade on time!
Many are overwhelmed and just quit trading, but the ones that realize the power of forex can make unimaginable profits. So lets make it as easy as possible.
The most important thing in trading might be Rigth trading vs Incorrect.
Besides being a successful trader one must be able to control his/her emotions, and not think about forex only, he/she must be productive and enjoy life...
The indicators are attached below.