STOP USING TIMEFRAMES LOWER THAN 1 hour, increase profits
That's only one of many strategies, Bosoko. If you feel confortable with, good for U. But in this forum you will find many and very profitable for different TF. Depends of your trading style.
Stoch is a very good indy, but if you want some advice, don't use it as a stand-alone indicator. Remember, It's an oscillator. You can place a fast ma in yor chart also (due to the fact you are trading in bigger TF) or other trend indy of your preference. Many and good here. Browse and choose.
Hi,
I would just like to tell all new forex traders who are trying to make money from trading to stop using 1min, 5 min, 15 min or 30 min for trading.
If you want to be successful in forex trading use 4 hr charts with daily charts as confirmation.
Currently I am trading using stochastics 8,3,3 on MT4.
I basically check the DAILY Charts(also check weekly charts for safer trades) to see what direction the stochastics are.
I then zoom to the 4 hr charts and these is what I do
If the 4 hr charts stochastics are not agreeing with the daily, I then wait for the 4hr stochs to reach the overbought or oversold and then once it starts agreeing I would take the trade.
I set my stop loss on the last swing(high/low) and usually I would seek to get a 1 to 10 ratio in winning trades. I usually divide my trade into 2 orders in which one is to capture a smaller R/R ratio and the rest is to capture as much as possible.
THis has worked real good especially in this EURUSD market of the strong downward trend.
But basically most simple strategies like MACD crossover, EMA crossover overbough/oversold. Work like magic on the timeframes 4hr or higher.
Try it. you could comfortably be getting 30% or more returns monthly easier than trying to get that in a day or 1 week.
Samuel N.You are right my friend!
After many years of investing in Forex, I have realized the same as you have. I have probably 4,000 or more indicators and never could make any ea I created work on short timeframe trading with consistency. The big boys play with longer timeframes, and so should we - Excellent wisdom!
Dave
<<<
Different Strokes For Different Folks
You are right my friend!
After many years of investing in Forex, I have realized the same as you have. I have probably 4,000 or more indicators and never could make any ea I created work on short timeframe trading with consistency. The big boys play with longer timeframes, and so should we - Excellent wisdom!
Dave
<<<We all have different trading styles. I like 1 and 5 minute charts, I do well with them. I am glad you do well with higher TF charts. That works for you.
Each to their own. Many different ways to skin this cat. I am gald you found the way you like.
HS
Thats true
I actually didnt write all my strategies, I use MACD and Trendtriggermod on daily then make my decisions on 1 hr using stochs, and MACD fibonacci retracements. I usually would get 2 trades a month but with the fibonacci levels I could set a really good risk to reward ratio of 1 to 4 or even 5(GBPUSD).
But that is true.
Sam
That's only one of many strategies, Bosoko. If you feel confortable with, good for U. But in this forum you will find many and very profitable for different TF. Depends of your trading style. Stoch is a very good indy, but if you want some advice, don't use it as a stand-alone indicator. Remember, It's an oscillator. You can place a fast ma in yor chart also (due to the fact you are trading in bigger TF) or other trend indy of your preference. Many and good here. Browse and choose.
Im happy to see someone agrees, after I realized this and started trading real money and making real money by using strategies on 1, 4 or daily timeframe.
I always tried to search for forex strategies based on 4hr or daily and could only find the MTF stochastics.
In fact I believe if someone was to simply code an EA based on MACD crossover on daily timeframe, they would make money.
I use discretion in my trading, because I use fibonacci levels alot but I wish someone should try that for an experiment.
Samuel.
You are right my friend!
After many years of investing in Forex, I have realized the same as you have. I have probably 4,000 or more indicators and never could make any ea I created work on short timeframe trading with consistency. The big boys play with longer timeframes, and so should we - Excellent wisdom!
Dave
<<<Of course longer timeframes are better to use,coz it is less market noise there!I personally trade 30min and higher now.
How about trading a 15 minute time frame if your indicators on the hour and 4 hour concur with the direction?
Of course longer timeframes are better to use,coz it is less market noise there!I personally trade 30min and higher now.
That could work, but it would be good to zoom out(on 15 min timeframe) so you could see what others using higher timeframes see. The market movers use higher timeframes.
You gain sanity and consistency in your trading once you trade less and make more per trade.
You also will eventually gain the freedom that most are looking for(ie, lots of free time + six figure salary, while building wealth). Whats the use of spending 10 hours looking at charts when you could be glancing at it probably once every hour, or 4 hours.
Im not tryna ramble, but if a new trader could realize this it could quickly cut their time to profitability.
Samuel N.
How about trading a 15 minute time frame if your indicators on the hour and 4 hour concur with the direction?
I like higher time frames as well, but I'd be careful with some of your assumptions.
I started watching currencies around 2003-4, when the pairs were strongly trending (like now). I saw similar trading ideas then in forums, ebooks, etc.. People were convinced they'd work forever, talking about 30% per month, 40 pips a day, etc.
Things changed in early 2005. Ranges shrank, and indicator-based trend-following stopped working. This is true for higher time frames as well, as I tested many strategies in that period. Markets finally moved back to trend mode as the credit crunch started 2 years later. The EURUSD started a major uptrend and is now in a downtrend. But don't expect to last forever. At some point, pairs will level out at supposed "fair value" levels, and it may take months or years for big trends to start again.
Just a warning...
Hi,
I would just like to tell all new forex traders who are trying to make money from trading to stop using 1min, 5 min, 15 min or 30 min for trading.
If you want to be successful in forex trading use 4 hr charts with daily charts as confirmation.
Currently I am trading using stochastics 8,3,3 on MT4.
I basically check the DAILY Charts(also check weekly charts for safer trades) to see what direction the stochastics are.
I then zoom to the 4 hr charts and these is what I do
If the 4 hr charts stochastics are not agreeing with the daily, I then wait for the 4hr stochs to reach the overbought or oversold and then once it starts agreeing I would take the trade.
I set my stop loss on the last swing(high/low) and usually I would seek to get a 1 to 10 ratio in winning trades. I usually divide my trade into 2 orders in which one is to capture a smaller R/R ratio and the rest is to capture as much as possible.
THis has worked real good especially in this EURUSD market of the strong downward trend.
But basically most simple strategies like MACD crossover, EMA crossover overbough/oversold. Work like magic on the timeframes 4hr or higher.
Try it. you could comfortably be getting 30% or more returns monthly easier than trying to get that in a day or 1 week.
Samuel N.Hey
30% a month is easy to make in a month.
I don't aim to get 40 pips a day. Rather I would hold a trade for 1 or more days if need be. and my profits are based on my risk to reward rather than pips.
This is because i use fibonacci levels(retracements, extensions) in every of my trade which is about 2 or 3 per month.
I also think that market dynamicsin forex and commodities has changed since 2003-04 in terms of volatility with new big players (hedge funds) coming into play and having lots of money to play with.
Thats why you see such heavy speculative movements in oil.
Theres just a lot of money flowing around, thanks to the cheap dollar.
also sincerely think if someone can't make at least 10% a month trading forex with less than 1 million capital should quit.
Samuel N.
I like higher time frames as well, but I'd be careful with some of your assumptions.
I started watching currencies around 2003-4, when the pairs were strongly trending (like now). I saw similar trading ideas then in forums, ebooks, etc.. People were convinced they'd work forever, talking about 30% per month, 40 pips a day, etc.
Things changed in early 2005. Ranges shrank, and indicator-based trend-following stopped working. This is true for higher time frames as well, as I tested many strategies in that period. Markets finally moved back to trend mode as the credit crunch started 2 years later. The EURUSD started a major uptrend and is now in a downtrend. But don't expect to last forever. At some point, pairs will level out at supposed "fair value" levels, and it may take months or years for big trends to start again.
Just a warning...
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Hi,
I would just like to tell all new forex traders who are trying to make money from trading to stop using 1min, 5 min, 15 min or 30 min for trading.
If you want to be successful in forex trading use 4 hr charts with daily charts as confirmation.
Currently I am trading using stochastics 8,3,3 on MT4.
I basically check the DAILY Charts(also check weekly charts for safer trades) to see what direction the stochastics are.
I then zoom to the 4 hr charts and these is what I do
If the 4 hr charts stochastics are not agreeing with the daily, I then wait for the 4hr stochs to reach the overbought or oversold and then once it starts agreeing I would take the trade.
I set my stop loss on the last swing(high/low) and usually I would seek to get a 1 to 10 ratio in winning trades. I usually divide my trade into 2 orders in which one is to capture a smaller R/R ratio and the rest is to capture as much as possible.
THis has worked real good especially in this EURUSD market of the strong downward trend.
But basically most simple strategies like MACD crossover, EMA crossover overbough/oversold. Work like magic on the timeframes 4hr or higher.
Try it. you could comfortably be getting 30% or more returns monthly easier than trying to get that in a day or 1 week.
Samuel N.