hi all, i just started a demo acc and learning about forex and technical analysis, and i have a few questions to ask. 1) For graphs, what time interval do you use? for short term, would you use 1min graph or 5 min graph?? 2) for MACD, do you use default settings or custom? 3) any other indicators you use? Thanks
I use a 610 tick chart and modified bollingerbands. I do occasionally look at a 5min for some analysis
Your first step before you even look at indicators is to understand price action, support and resistance, ranges and trends. Start by just having a simple candlestick chart with no indicators. Novice traders are so keen to find the "holy grail" indicator that they often don't learn about these very important basics first. Indicators are after-all simply different interpretations of price.
So true. You need to understand the trends and nature of each asset. It takes a firm understanding of each type of chart (lines, candles). The time intervals you will want to use should actually be various intervals at different times during your info gathering phase initially before settling on a currency pair. You need to evaluate past performance, and the way the asset behaves in breakouts, and that means you may need to peek at a daily or hourly chart at first to see what the potential for the asset is. If you are not aware of the 50% retactment (aka retracement) rule, you should get familiar with it. You should also learn about the snake channels, and 1,2,3 top formations. These strategies will help you predict the future breakout points of an asset.
Just remember that when you are looking at indicators that thousands of other are looking at the same ones as you. This means that others will be doing exactly the same as you in the market and the price will always adjust accordingly. Look at the candles on various charts from 5 minutes all the way to a week and look at how you think the market is behaving. Make your decisions based on that alone.
You can set the interval to in 5 minutes and check the pattern that the market is following. You need to keep studying the way the market is going for weeks and understand it.
I base my buying or selling direction based on a longer term chart, eg D1 or lower. That is because longer term charts are more reliable as it is based on more data points compared to shorter terms charts. Then I time my entry point based on shorter charts, down to M5 or so. When the short term trend lines up with the long term trend, then I open the trade.
I normally use the same but I would advise you to first monitor and take notes of what happens before going for the live account for some while. It looks simple rather it's sometimes very complicated due to market fluctuations.
So much ways to trade. I use the 4 hour chart to plot the trend and only take trades in that direction. I only take trades after the retracements and not during the moves in the trend. I also set a grid indicator highlighting all of the psychological lines that most traders would plot their orders on. Usually the (.500) and the (.000) lines. After that is set up i drop it to the 15 minute chart and look for entries there.
