basic trend trading for beginners
Page 1 of 16 1234511 ... LastLast
Results 1 to 10 of 156

Thread: basic trend trading for beginners

  1. #1
    Trader tfs2012's Avatar
    Join Date
    Apr 2017
    Posts
    2,037
    Thumbs Up
    Received: 198
    Given: 230

    Lightbulb basic trend trading for beginners

    ok this is a basic trend trading it's not a strategy but it is more like a price behaver so we can understand more about the market
    lats first identify some things

    -L: means low
    -LL: means lower low
    -H: means high
    -LH: means lower high


    I will explain this in a downtrend situation so let's start with the definition of a downtrend

    downtrend: means that the price is making lower highs and lower lows (so simple right?)


    one of the basics of trading is that in a downtrend you sell when the price break the last low, but if the price goes near the last low and didn't break through then there is a possibility of trend changing, in this case, you will wait for the price to break the last lower high as a confirmation(u can use other tools depending on your experience)

    eur/gpy daily time frame 19/09/2018

    Not allowed!

  2. #2
    Trader tfs2012's Avatar
    Join Date
    Apr 2017
    Posts
    2,037
    Thumbs Up
    Received: 198
    Given: 230

    Lightbulb

    Now let's talk about something else, which is when I trade?
    There is a lot of choices we will speak today about two of them
    -You can open a trading position immediately after the level is broken but you must first make sure that what is happening is not a trick from the market and that is why we will have to define the concept of fake breakout
    --a fake breakout happens when the price breaks the level but returns after that to the same direction
    To avoid this, it is better to wait for a Long Line Candle
    it is a long candle that looks like that

    -so the first option is to sell after that candle
    -the second option is to wait for the price to retest the broken level and



    Conclusion
    Between the two options I prefer the second option because when it comes to the quality of opportunity, there are two things that distinguish the second option
    First, depending on your experience, you can put a pending order so you will not miss this opportunity
    Second, the risk is less compared to the first option
    But, the price does not always come back to re-test the level therefore, this option may not always be available
    that's all for now...see you next time

    Not allowed!

  3. #3
    Trader tfs2012's Avatar
    Join Date
    Apr 2017
    Posts
    2,037
    Thumbs Up
    Received: 198
    Given: 230

    Lightbulb

    ok let's go back to the eur / jpy and apply what we've learned so far (remember this is a basic knowledge)
    We said that we should wait for the price to break the last lower high to open a buy position and after that, we said that the price should break the level with a long line candle
    This is what happened, as we see
    Now, according to what I said last time, we have two options, either to open a position directly or wait for the price to return and test the broken level
    we also have another good example on the nzd / jpy






    We will return to these two examples later and see what will happen so keep this in mind
    that all for now ..

    Not allowed!

  4. #4
    Trader
    Join Date
    Aug 2017
    Posts
    8,220
    Thumbs Up
    Received: 55
    Given: 96
    A good thread you have got my friend. That is right, in as much as the trader is willing to make good trades in the market, they need to know how they can make good support and resistance placement. What I know about this is that the market will always have that support and resistance market movement. I don't take the breakout often due to I have learned that price is more likely to reverse most of the times than break out really.

    Not allowed!


  5. #5
    Trader
    Join Date
    May 2018
    Location
    Pakistan
    Posts
    4,748
    Thumbs Up
    Received: 26
    Given: 19
    Thanks dear for sharing a lot of knowledge with us about trend trading. You are giving a good example of euro JPY Trend. After reading this thread I think a lot of traders will do trade with proper money management and follow market Trend. I hope that today market will goes more up.

    Not allowed!

  6. #6
    Trader
    Join Date
    Aug 2013
    Posts
    11,566
    Thumbs Up
    Received: 69
    Given: 48
    the new traders should focus on trading with trend and try to follow the trend with each trade and so they can make money with little risk and so this will decrease the possibility of loses and so the trader will maximize the profits and make little loses, trading with the trend will decrease the loses and mistakes and will increase the return always.

    Not allowed!

  7. #7
    Trader
    Join Date
    Jul 2017
    Posts
    8,577
    Thumbs Up
    Received: 32
    Given: 22
    Good market analysis and a great trading system as well. One major thing that traders are not suppose to be ignorant of is the level of resistance and support levels because as pointed out from this charts, they are the places where most of the buy and the sell are always occurring.Without the support and resistance levels, it is always difficult to know where the market is likely to have a reversal and take on a new direction.I think that beginners can learn a lot from this trading system mastering how trades are taken at the support and resistance levels.

    Not allowed!

  8. #8
    Trader maryrosi's Avatar
    Join Date
    Jul 2017
    Posts
    1,423
    Thumbs Up
    Received: 1
    Given: 1
    most beginner traders, sometimes it is still difficult to determine trends, so trading is just following the other traders, but this tread, I as a beginner trader is very happy, this tread gives an overview of trends, and how to open positions at the time of trend, I very grateful for those who make this tread, so that you will be more understanding in determining the trend.

    Not allowed!

  9. #9
    Trader sniper007's Avatar
    Join Date
    Jun 2017
    Posts
    10,929
    Thumbs Up
    Received: 81
    Given: 146
    This is so much important to know as a trader, basically support and resistance levels are important in the market. You can't do with out it, not matter the trading indicator that you are making use of, you still will be needing to in a nutshell, understand how to place the support and resistance levels, not only on the trend but also on the side ways moving market.

    Not allowed!

  10. #10
    Trader tfs2012's Avatar
    Join Date
    Apr 2017
    Posts
    2,037
    Thumbs Up
    Received: 198
    Given: 230
    welcome everybody
    I appreciate your participation in enriching the thread so In order to make it more useful, I invite everyone to share their views and more important, to put examples of this method of analysis to discuss them together and come out with new and more advanced ideas

    Not allowed!

Page 1 of 16 1234511 ... LastLast

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •