Day Trading Tips in Forex.
Trading tips includes the best markets to trade and how do i set up my chart. The best indicators for best trading there are multiple number of indicators available for day trading but here we are going to discuss few of them and how to easily identify the start and end of a trend...
Let's Get Started ...
If any buddy trading from a long time would usually have a good knowledge about where to trade and how to trade. Only a good experienced person can guide about best markets to trade. The person who have exp of 20-30 years in the same market like Stocks, ETFs, options, forex, spreads. Must be having a good idea about why forex is very good investment opportunity and why people usually try to invest there amount over there. These peoples have that much of rich experience in there field that they usually keep things simple like no stock filtering, no complicated options stuff. I will show you all the details that how these things normally happens.
There are some best markets where usually people trades and earns profit these days....
E-mini S & P (ES).
EUR/USD(6E).
30 Years T-Bonds (ZB).
Crude Oil (CL).
Gold (GC).
I recommend you all to trade in these for future, i mean for long term not for short term because these are extremely liquid it is easy to go lang and short, market requirements are really low. As i show you above this is the most diversified portfolio as you can see i have trading the stock index which is the E-mini S & P, m trading in currencies Euro / Dollar, m trading interest rates or 30 year T-Bonds and m trading in commodities like crude oil and gold, its really simple isn't it.
Lets check my charts now:-
My charts are different as compared with most traders, many traders are loosing money and if you do what most traders do, you probably loose money, too. I believe that my unique chart setup is giving me edge in the markets. There are basically three different ways to display charts.
1. Time Based Chart.
Ex - 10 min chart
2. Volume Based Chart.
Ex - 133 Tick Chart (Trade).
According to my observation approximately 90% of traders either using time based charts or volume based charts. I like to look on charts much differently.
It is my own technique so i call it secret way to display charts, i use volatility based charts:- The secret of Range Bars.
What does this mean?
When using utility based charts you plug a new bar or candle to the market moves a certain amount for Ex- 2 points.
Examples of Range Bares:-
1. Fixed Length - 2 points.
2. New bar comes if the prices break out of this range.
This is a very powerful concept because now you can predict the high, the low and the close of a bar.While using Range Bars you know where the high will be, exactly 2 points away from the low of the Bar, where the low of the bar will be, exactly 2 points away of the height of Bar. You know where the close will be and you know where the next bar will open.
While constructing the Range Bar we have four variables high,low, close and open. You know where these values would be.
Indicators :-
The best indicators are standard indicators, BUT i m using them with a twist. I m using these indicators differently then other traders because i want to see what other traders don't see. While trading i want an edge and " unfair advantage " when i trading against them.
First Indicator in my trading is Bollinger bands. It consist of three components :-
Central Line :- Which is a simple moving Average line.
Two standard deviations :- 1. Above the central line.
2. Below the central line.
This deviation is called as upper and lower part inter pen. In my trading i don't use central line because i want to keep it simple. I use 12 as moving average and 2 for standard deviation.
It is great for identifying trends. for uptrend, use the upper Bollinger Band, for down trend, use the lower Bollinger Band.
Second indicator is MACD (Moving Average Conversion and Diversion):-
In the Below trend:- MACD is below the zero line and below signal Line - red bars.
In the Above trend:- MACD is above the zero and above signal Line = green bars.
You must use multiple indicators, always confirm to avoid false signals.
Third indicator i use is RSI (Relative Strength Index):-
It uses settings of 7 bars indicator. In a strong uptrend we can use RSI >70 = green triangles under the bars. In the down trend RSI < 30 = red triangles on the chart.
Let's Get Started ...
If any buddy trading from a long time would usually have a good knowledge about where to trade and how to trade. Only a good experienced person can guide about best markets to trade. The person who have exp of 20-30 years in the same market like Stocks, ETFs, options, forex, spreads. Must be having a good idea about why forex is very good investment opportunity and why people usually try to invest there amount over there. These peoples have that much of rich experience in there field that they usually keep things simple like no stock filtering, no complicated options stuff. I will show you all the details that how these things normally happens.
There are some best markets where usually people trades and earns profit these days....
E-mini S & P (ES).
EUR/USD(6E).
30 Years T-Bonds (ZB).
Crude Oil (CL).
Gold (GC).
I recommend you all to trade in these for future, i mean for long term not for short term because these are extremely liquid it is easy to go lang and short, market requirements are really low. As i show you above this is the most diversified portfolio as you can see i have trading the stock index which is the E-mini S & P, m trading in currencies Euro / Dollar, m trading interest rates or 30 year T-Bonds and m trading in commodities like crude oil and gold, its really simple isn't it.
Lets check my charts now:-
My charts are different as compared with most traders, many traders are loosing money and if you do what most traders do, you probably loose money, too. I believe that my unique chart setup is giving me edge in the markets. There are basically three different ways to display charts.
1. Time Based Chart.
Ex - 10 min chart
2. Volume Based Chart.
Ex - 133 Tick Chart (Trade).
According to my observation approximately 90% of traders either using time based charts or volume based charts. I like to look on charts much differently.
It is my own technique so i call it secret way to display charts, i use volatility based charts:- The secret of Range Bars.
What does this mean?
When using utility based charts you plug a new bar or candle to the market moves a certain amount for Ex- 2 points.
Examples of Range Bares:-
1. Fixed Length - 2 points.
2. New bar comes if the prices break out of this range.
This is a very powerful concept because now you can predict the high, the low and the close of a bar.While using Range Bars you know where the high will be, exactly 2 points away from the low of the Bar, where the low of the bar will be, exactly 2 points away of the height of Bar. You know where the close will be and you know where the next bar will open.
While constructing the Range Bar we have four variables high,low, close and open. You know where these values would be.
Indicators :-
The best indicators are standard indicators, BUT i m using them with a twist. I m using these indicators differently then other traders because i want to see what other traders don't see. While trading i want an edge and " unfair advantage " when i trading against them.
First Indicator in my trading is Bollinger bands. It consist of three components :-
Central Line :- Which is a simple moving Average line.
Two standard deviations :- 1. Above the central line.
2. Below the central line.
This deviation is called as upper and lower part inter pen. In my trading i don't use central line because i want to keep it simple. I use 12 as moving average and 2 for standard deviation.
It is great for identifying trends. for uptrend, use the upper Bollinger Band, for down trend, use the lower Bollinger Band.
Second indicator is MACD (Moving Average Conversion and Diversion):-
In the Below trend:- MACD is below the zero line and below signal Line - red bars.
In the Above trend:- MACD is above the zero and above signal Line = green bars.
You must use multiple indicators, always confirm to avoid false signals.
Third indicator i use is RSI (Relative Strength Index):-
It uses settings of 7 bars indicator. In a strong uptrend we can use RSI >70 = green triangles under the bars. In the down trend RSI < 30 = red triangles on the chart.
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