Forex Trade Entries & Exits

[ForexWolf]

A member suggested a Trade Entry and Exit thread..so we can give this a try. Post your trade ideas and info if you desire...

If finding entries and exits on a pair is often a difficult thing for you--don't worry cause it is often a common issue to figure out. Post your questions and comments and problems and perhaps I or other members can help you with some tips and tricks to narrow down the entry and exit points...

In the near future, and if there is interest, I plan on posting detailed info in a thread about making Trade Plans. If you are not trading with a trade plan--you are just tossing a coin..and honestly as a trader you can do a lot better than that...

Trade Plans can improve your trading immensely...and can give you a better more concise methodology to your trading and understanding of the markets and indicators... They can eliminate emotions and frustrations and give you targets and help you from being stopped out prematurely in a trade.. They can add much needed validations and confirmations to help you confirm your idea on a move is improving in odds for occuring, or protect you from making a trade that would go against you by keeping you from entering. Trade plans are the best and I don't make a trade without one...

FXW

[daiello]

Alright, my strategy thus far (only been trading on my demo for about a week) and i start out looking at the daily chart. Draw my trend lines and look for a safe position. Top of the trend line starting to decline, i short, bottom of the trend line starting to ascend i buy.

I then zoom in to the hourly charts and make some support and resistance lines and buy at support.

Lastly i look at the 15/30 minute chart to get a better look at whats going on and make sure that im happy with my trade.

That is my entrance, my exits haven't worked so far, but i sell near the top of the trend line, or at the bottom i buy back depending on which trade i do.

[ForexWolf]

Originally Posted by daiello

Alright, my strategy thus far (only been trading on my demo for about a week) and i start out looking at the daily chart. Draw my trend lines and look for a safe position. Top of the trend line starting to decline, i short, bottom of the trend line starting to ascend i buy.

I then zoom in to the hourly charts and make some support and resistance lines and buy at support.

Lastly i look at the 15/30 minute chart to get a better look at whats going on and make sure that im happy with my trade.

That is my entrance, my exits haven't worked so far, but i sell near the top of the trend line, or at the bottom i buy back depending on which trade i do.

Looking at a Daily is a great way to get a direction or find a trend and a chart that looks tradable....but its also a key place to notice the strong support and resistance areas too. On the daily--try checking out the history's--what a pair did in the past when it was at certain levels and indicator points...

Moving into the 1 or 4 Hour chart after you have established a chart or trend to trade is a good place to look for your entry and exit points--based on Support and Resistance is good to start...the shorter term charts are good to find the ups and downs on when to buy or sell...

Do you use any indicators? MACD, CCI, Fibonacci's, Stochastics, RSI, EMA's, pivots etc--there are tons of indicators and all can do well--you may wish to pick one or two (only one or two) and learn them up...

-w

[daiello]

I have yet to add any indicators.

Maybe i will add some moving averages and MACD. RSI.

So you are saying looking for support/resistance on daily charts as well as the overall trend.

Then zoom into hourly/half hourly to look for a entrance.

Also i was told to use Heiken Ashi? What are your thoughts on this.

Going to Restart my demo, down to 300$ haha.

[daiello]

Okay...

GBP USD

One day chart i made the trend lines, and the support resistance lines that stuck out.

Switched to the 3 hour chart where i did more in depth support resistance lines, saw it near support so i bought some.

Zoomed into the 5 minute chart to see the general direction and close support resistance.

I am going to try and make more trades with only a few pips.

I put a take profit at about 7 pips, right under my resistance.

I did a stop loss right under my support line, which is about 10 pips.

While posting this it hit my take profit, 14$. Will wait and see if it hit the 5 minute support. May short it if it hits and falls back.

[ForexWolf]

Originally Posted by daiello

I have yet to add any indicators.

Maybe i will add some moving averages and MACD. RSI.

So you are saying looking for support/resistance on daily charts as well as the overall trend.

Then zoom into hourly/half hourly to look for a entrance.

Also i was told to use Heiken Ashi? What are your thoughts on this.

Going to Restart my demo, down to 300$ haha.

Yes using the daily chart to find support and resistance areas can give you a bigger picture of key points and where the pair may be heading--and this can be very helpful for mid and longer term trading...as well as using it to identify pairs that are trending or rangebound. This helps to narrow down which pairs you can take advantage of..but there is much more to Forex than simply picking a chart or finding a trend--you have to know how to take advantage of the opportunities that present itself--or be able to smartly say--this pair is NOT gonna be easy or does not look good right now but it may be good later-or I'm staying out of the trade. A smart trader knows when to trade and when NOT to trade. Once you find a pair with a good set up that works for you or the method/system you are using--and you learn the influences of that pair and check your news, you can then shift down to the 1hr or 4 hr chart and begin to narrow down your trade areas and ranges.. If you are intraday trading in the short term--scalping 5 or 10 pips in target and flipping direction back and forth, or doing trades that are gonna be open a couple hours or less...then you don't always need to look at the daily charts.. Point is--depending on the type of trading you want to do, is how you pick the charts to look at. For example--an intraday scalper or trader would use the 1hr to find a pair, and probably the 15 or 5 min charts only for their trade plans...and I've seen some traders use only the 15min and 5 min and nothing more. You have to figure out what kind of trading you are gonna learn (and stick with) and you have to figure out the times you have available for trading. Forex trading where you just flip on the PC and pull up a chart and expect to be trading in 5 minutes--well that is a forumla to lose...as you develop no learned knowledge or history of a specific time frame/market session, or pair or chart time to derive good reliable and repeatable trades from... Forex success comes from repeatable methodology--you can do a hundred trades--but if you cannot repeat successes regularly you will lose more $$ in the long run than you gain.

Couple of more things... First off--adding indicators is always helpful...indicators are tools and if you know how to use a certain tool you can do a lot with it. But you have to add indicators that "work" for you. Not every indicator makes sense to everyone...so this will take some research and testing on your part. Plus each of them have their pro's and cons--some are more reactive and some are more predictive in how folks read them--and you have to figure out which ones "sing" to you and tell you the info you need to know. You don't wanna use an indicator because another indicator tells you what you don't wanna see--you have to read the markets for what they say, not what you want them to say and that can be a tricky endeavor in the beginning to find that balance--cause we are always eager to be wanting to trade. Also you don't wanna use an indicator cause you hear its a hot indicator and its what everyone uses--yes there are some that are very commonly used..and some not so commonly used..but like any tool you need to learn how they work and how to use them and use what works for you. Many folks swear by pivots--others swear by fibonacci's...and others do well channel surfing bolinger bands.. Use what works for you..and you find this thru backtesting, trial aand error..

I am guessing you have no specific method, rules etc to your trading--if so you have a lot of work to do and a lot of bases to cover...but it can be time well spent.. You need to develop trade rules for yourself and figure out what trades you wanna make--and find a regular time frame or market that you can learn and trade in regularly. Then you need to find a pair or two you like and want to trade--and make sure that pair moves or reacts during the time frame you have set for your trading, and then you need to develop and test and BACKTEST your methods and derive system rules for when they apply and when they don't work so you can recognize opportunities--and avoid train wrecks...and then develop trade plans for your trading. If you are longer or mid term trading where you have trades open a few days for them to execute--the time frames and markets are not much of a priority...but the rest still applies...

FXW

[daiello]

Very incitement.

I am trying to learn and keep rules for myself, but its a little difficult now, as i have been playing momentum plays, so basically all i did was watch L2s.

I have a basic knowledge of T/A, i have greencats cd and will have to watch that again soon.

Thanks for your help thus far.

[ForexWolf]

Originally Posted by daiello

Very incitement.

I am trying to learn and keep rules for myself, but its a little difficult now, as i have been playing momentum plays, so basically all i did was watch L2s.

I have a basic knowledge of T/A, i have greencats cd and will have to watch that again soon.

Thanks for your help thus far.

Glad to help...I am here to help.

I know it can seem like a huge monumental challenge..but once you get into it then it becomes much easier. You just have to keep at it. Greencats CD is excellent for chart TA--and many divergence plays work well in Forex too..but also know that TA is only part of Forex influences..and that there is many ways to trade and play the Forex. When strong news or econ report data has potential to effect a pair, then even the best chart TA can go right out the window when the news gets released... I've been at Forex for about 6 years now--and my first year was a most dismally frustrating time..but it progressively got better and after all this time its finally awesome for me...and I'm glad to give back and help out folks figure out things and get into it... So anything I can do to help clear things up or guide folks--they just have to ask...


FXW

[daiello]

Last night i lost about 30$ so i started up tonight wanting to make that back, But not with big plays, little plays, with a few pips to get that back to even.

Made 3$ long EUR USD

So far up 12$ short EUR USD

[greencat]

Possible short postion comong up on the USD/JPY. 1 Hour/30 minute charts.

I have not entred yet.