I'm still a novice and practicing on a dummy account. I've been studying numerous videos and writings. The one thing I have found little info on is trading 1M VS. 5M VS. 15M VS. 30M, VS. 1H etc. Which is preferable? How do they work together? Should indicators be set differently for different times (bollinger, MACD) Any links available for more info on these? thx!

Hi Frans,

Glad to hear from you.

Below are some links to some free videos which may help answer some of these questions:

Day Trading Lesson 6: Multi Time Frame Analysis

An Introduction to Day Trading

An Introduction to Swing Trading

An Introduction to Position Trading

Hope that helps.

Best Regards,
Dave

__________________
My Free Courses: Forex Course - Stock Course - Futures Course - Basics of Trading - Subprime Crisis - Prorealtime Charts

Disclaimer: Trading is risky and can result in substantial financial loss. As always my posts are simply one traders opinion and should not be taken as trading advice. I am not a financial adviser so everyone please do their own analysis and take responsibility for their own trades.

thank you. can anyone recommend settings on a 1M trade for the MACD, RSI, and Stochastic indicators?

Hi Frans,

I personally use the default settings for those indicators regardless of what timeframe I am looking at. If others do things differently please feel free to post.

Best Regards,
Dave

__________________
My Free Courses: Forex Course - Stock Course - Futures Course - Basics of Trading - Subprime Crisis - Prorealtime Charts

Disclaimer: Trading is risky and can result in substantial financial loss. As always my posts are simply one traders opinion and should not be taken as trading advice. I am not a financial adviser so everyone please do their own analysis and take responsibility for their own trades.

Hi Frans

I am new to trading Forex. When I do scrape trades, I use the following-

I look at a 200 EMA to get the overall trend.

I then use a 21 and 55 EMA. If the 200 EMA is sloped down, I look for the 21 being under the 55 EMA. If the 200 EMA is sloped up, I look for the 21 being above 55. (I used to use a 20 and 50 EMA, but 21 and 55 came recommended because it is based on Fibonacci numbers.)

I then use a 5 EMA and an 8 SMA. If the 200 EMA is sloped down, and the 21 is under the 55, I enter short when the 5 EMA crosses under the 8 SMA.
If the 200 EMA is sloped up, and the 21 is over the 55, I enter long when the 5 EMA crosses above the 8 SMA.

I use Bollinger bands (default settings), RSI (default settings), MACD (Default settings) for confirmation.

I also use a sped up slow Stochastics with the settings (8, 3, 5). I got the stochastic settings the same place I got the 21-55 EMA settings. The sped up slow stochastics is faster than the default slow stochastics, but not as fast as the fast stochastics (sort of inbetween). That setting seems to work pretty good.

Cheers
Tek

Tek what brokerage do you use and what spreads do you get on the pairs you trade with this strat.
Will you post a pics of some trades you took?

another in the long list of questions i will surely bombard this site with:

I live in the south west (mountain time) and I know that the majority of market activity takes place during the London business hours (middle of the night here). Are there profits to be made during my off hours or in the long run should i consider investing in a larger coffee pot? Also, for a beginner like myself, are the later business day hours more sporadic or stable as far as trends/indicators as compared to rush hour.

Hey Frans,

The most active time in the FX market is between 8am and 10am eastern because this is when both London and the US Markets are open as well as when much of the major US Fundamental Data is released.

Although with the recent volatility in the markets there has been increased action in the afternoon sessions, during normal market conditions you are correct that it is generally calmer during this time so some new traders prefer to stick to those hours at first.

Hope that helps.

Best Regards,
Dave

__________________
My Free Courses: Forex Course - Stock Course - Futures Course - Basics of Trading - Subprime Crisis - Prorealtime Charts

Disclaimer: Trading is risky and can result in substantial financial loss. As always my posts are simply one traders opinion and should not be taken as trading advice. I am not a financial adviser so everyone please do their own analysis and take responsibility for their own trades.

Thank you!

I've been experimenting with multiple MAs set at 3, 5, 13, 21, and 80. How much trust should I place in when the lines cross (or even cross multiple lines showing a possible reversal) when sometimes these lines act as barriers for resistance. Has anyone else tried this with success. What pitfalls lie ahead.

*excuse my freshman lingo!

Hi Osiris

"Tek what brokerage do you use and what spreads do you get on the pairs you trade with this strat.
Will you post a pics of some trades you took?"

For forex, I have a micro account at FXCM. It is very low funded while I learn.
I am still very new to forex (about 3 weeks now). I am finding the technical aspects pretty similar to stocks, but I still have a lot to learn about the fundamentals. Therefore I am trading strictly using indicators and support/resistance.

Most of my trades have been short scrape trades of less than 5 min. I have tried many different types though. In fact, I am over trading the heck out of the account. I place many 1 micro contract short term trades in different scenarios to test different things, because the risk is only about 40 cents each.

I have found the small trades to be not very successful. Most of them are profitable; in fact, I had like 12 in a row that were profitable. However, I found trading this way meant that the losing trades lost way more than the winning trades won. Overall, the few losing trades added up to more than the many winning trades. My risk/reward ratio sucked.

I have now begun doing much longer trades. Some for a few hours, some overnight. I moved my stops out much more to avoid being stopped out due to 'noise'.

Here is a chart of a GBP/USD trade I did today. It was 4 contracts. I entered and exited 3 contracts at a slightly different time/rate than the other 1. The chart reflects the 3 contracts. Total profit was 134 pips. My best forex trade so far.
Entered short on the 3 contracts at 1.47628. Bought to close at 1.47246.

I just previewed my post, and it is hard to see what I wrote on the chart. However the right and left markings are where I entered and exited, and the upper markings are where I placed my stop.

Cheers
Tek

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