Forex Charts.

[rs2183]

Well, this forum has been dead for a bit but i'll try posting this anyway. Have been playing with demo account for a while now, (addicting), and I think I have it down. However, few questions for the pro's.

When reading charts, what time interval do you use for day trading purposes? I seem to be having a problem with contradicting technicals within the diff interval spans.

As far as technical indicators, what do you find the most useful of them?
Currently, I have been using, RSI, MACD, the BBands, and some others. Nothing too advanced. Oh, and also some candlestick reading as well.

For the most part, things go the right way, however it seems this danged thing goes against the technicals sometimes.

Ohh and what chart service do you guys use?

Thanks!

[wolf825]

Hi rs... I look at this forum every day..hoping to find posts...but sometimes I think I am the only one addicted. I even made a few threads for links and stuff to try and get some folks interested...but not many folks around here at into this (or find FOREX as addicting as I do) I guess...

I'm not a pro at Forex--still demo trading and also playing with small amounts of my REAL money now...but I'll tell ya what I do with charts FWIW...

For short term trading--I will watch the 1 hour and the 30 minute...if I wanta quick trade I will drop it down to 15 or 5 minute. If I want a longer trade to see a repeating trend--you cannot beat the 2 and 3 or 4 hour charts to show the mid trends. I read the candle sticks a LOT--look for those doji's and banners to signal a possible reversal.. The candlesticks mean less and less I have found the shorter the chart time frame is--like on 5 minute and 1 minute they mean little...but over 15minutes they can show interesting and usable information. I also take some of the free chart analysis you can find on fxstreet.com and forexcentral.net to see if I can see what some of those folks say...

FWIW, I overlay with just the Bolinger Bands...in my minimal 3 month Forex experience, the RSI and the MACD can be much harder to follow to predict with. Thing I have l noticed a LOT with many of these pairs is if you can find a similar pattern from a couple of hours before, it tends to repeat itself at the very least in direction and in spikes--especially in off trading periods when its not as volitile. I like the candlesticks on 30 minute and 1 hour charts best--easier to draw the lines and see the formations.. But if youcan spot the repeating patterns--those can be good for a dozen or more pips each way.. For example--this past day before the Feds made their announce--the EUR and JPY pairs were simply bouncing from top of the BBand to the bottom, and every couple hours doing full reversals each time they hit.. In my demo accounts I am practicing on these little patterns--and trying my hand at going maximum leverages on those for the most gains with the shortest moves.. If I can find a couple of patterns repeating, I will try to average an entry point and play it and have been successful most times. Not sure how wise it is..but I'm trying out everything in my demo's to make the BIG mistakes there before I put up my real $$.. With my real $$ I am very selective to start--actually waiting for the big moves, and trying to ride it....but thats just until I get more comfortable in trading I guess. I used to set a trade and come back later to check it and see what happened..and while I still do that occasionally in demo, I am trying to not be so "reckless" in leaving a trade open without watching...

The Forex is a LOT more unpredictable then stocks...but it moves more and is exciting in that aspect..and if you can learn the chaos and the right times certain markets move--I think its possible to do reasonably well most of the time.. Its my new drug...

If I can answer any questions or chat more with ya about Forex and stuff I have picked up over the months--well I'm here......alone..... Sorry I'm not as seasoned a pro at Forex to answer your questions more definitively to help ya..maybe SJ or others will materialize to answer for ya. Thanks for the post and good luck to ya...
-w

[wolf825]

Oh yeah...chart service--I am using the ones in my demo accounts mostly..which is OANDA (free demo that doesn't expire) and Forex.com(also my real account is there). I prefer the one from Forex.com for charts over most others I have found. Its from Procharts and its nice in features, but a bit slow sometimes. OANDA's and a few others 'java' charts leave a lot to be desired IMO.. Check the Forex links I posted for some news sites that have some decent chart links...

hope that helps....
-w

[rs2183]

Wolf,

Thanks for the detailed response. I have to get a bit better at the candlestick reading but that link you provided above had a wealth of information. I realized that I pretty much want to play forex for scalping but I also realized that currently I suck at it pretty bad.

Well, practice makes perfect and this is pretty addicting. Currently I am reading up on Fibonncci. I have heard that it is pretty useful. It's very hard for me to spot a reversal, but once a break is in progress, money can be made easier.

Will keep playing.

Thanks for your help.

[rs2183]

I just played Eur/Usd, based my decision on the following 1 hour chart. *Got out at +120. *These indicators are working well for me, however still trying to utilize trend lines. *The Parabolic indicted a downtrend, as well as RSI, CCI, and MACD. *

Sorry for chart size, I made some lines using paint and circled the parabolic. *Got in at 1.2935 out at 1.2925. Had an opp to get out at 1.2919 but got greedy 8).

[rs2183]

I have been playing with the moving averages as well, Seems as if the 10 Day Moving Average passes the 30, 50 day moving averages going upwards, an uptrend begins.. further when the 10 Day Moving Average passes the 30, 50 day MA going downwards, a downtrend begins. Holds true for a majority of the time.

This holds true for the 1 hour + great charts, anything less and it gets tougher to decipher.

Trend lines are bit more difficult for me.

In reference to moving averages, do you guys use them, or weighted moving averages mayb?

[rs2183]

ok I may just be talking to myself, but I think i'm getting better at this 8)

[wolf825]

I know how ya feel... But you're not talking to yourself here. The Non farm payroll report sent quite a run on Friday that was hard to keep up with....hope you got in on it.. I caught the last part of the dip Friday morning on EUR/USD for about 60 pips.. NICE $$$.. I am thinking a small bounce is ahead tho for early this week but I doubt it will retrace a ton.. Lots of economic reports for the UK coming out this week---could mean some volitile and strong moves for the Euro & Yen back against the dollar...or could mean we are seeing the beginning of a new trend too..

-w

[mister_doodi]

Wolf my friend, you just sold me on Forex, Doodi hates not being able to trade during the weekend and holidays. The chart system looks great by the way. One would only need MACD an ADX to be sucessful but the other indicators are good too.

[wolf825]

Welcome to Forex my friend..glad you are here and have decided to play. I hope Doodi enjoys it and is successful, and perhaps we can get a good forum rolling here for discussions and predictions and technical readings we can share. I will be glad to try and answer any questions you have--as I'm sure Nanogod. rs, StockjockE and others will too. Many many folks play forex including rpm and Honeybee (where are ya my honeybee?)...and perhaps its my deoderant but its hard as heck to get a good long informative discussion going here on many subjects...dog knows I have tried..

I firmly believe if we can get a good active forum going like they have going in the Options forum--we can all do VERY well and kick some butt and make some $$$$... Thos guys in Options are making a LOT of $$$...and I think we could do the same. I have gotten out of a lot of my pennies in favor of Forex.. a LOT more excitement..but dang the risk management and swings can kill ya sometimes... ;D *

On a side note--MACD is helpful--however I have noted that Forex chart reading can differ a lot from average Stock chart reading because of the volitility and the continuing change--I have found RSI and Bolinger Bands on a 1 hour and 30 and 15 minute chart can be very helpful in catching a trend or shift in direction too.. Candlestick readings are extremely helpful too. Just my two cents worth...I know you are a MUCH better chart and technicals guy then I am. *I like Forex a LOT because of the fast and 24 hour trading (damn insomnia ) and especially for the heavy technical research and chart reading you need to be able to do and put together FAST...it has helped me a lot improve my chart reading..and the patterns and repeat trends you can clearly see happening and follow a lot better then you can with some average stocks that take days or weeks to move... Just remember--Forex is the most risky thing--moreso then penniies or anything...cause as quickly as it can change you can get wiped out if you are not careful sometimes. I had one lesson learned where I jumped in prior to some usual monthly news--and the news was to everyones surprise and shock the opposite all estimates--and I (and most of the world probably) tanked myself good several hundred PIPs in a matter of SECONDS when the news came out and the price FELL instantly...its THAT volitile..which makes the rush just as much fun...

We all should just start a thread and go "My name is ----..and I'm addicted to Forex...". *Welcome to the club my friend...:-*

-w * *