Timing of your trade
Page 1 of 139 123451151101 ... LastLast
Results 1 to 10 of 1517

Thread: Timing of your trade

Hybrid View

Previous Post Previous Post   Next Post Next Post
  1. #1

    Timing of your trade

    Hi traders!

    In this article, I’d like to talk about practical application of time parameter in trading. Jim Dalton (author of “Markets in profile”) once had said: “When we put price, time and volume together, we get value”. Though we don’t have reliable information about volumes in Forex trading, we nevertheless can combine price with time and make important conclusions about real trend in the market.

    The easiest way to apply time parameter is to observe duration of correctional moves in comparision to duration of impulses. As many traders analyse charts (not market profile), they can measure angle between impulse and correction. The more acute this angle is, the less potential market has to sustain it’s directional move.

    acute.jpg

    obtuse.png

    Think about every movement in terms of price and value - if price is not returing to value (say, we have obtuse angle between impulse and correction), we more than likely have price discovery - market is searching for balance. It advertises higher and higher, and this process can continue for a while (several days).

    Contrarily, if we have acute angle - we see that market probably has to advertise lower every time to attract buyers (demand is not aggressive enough to step in at higher prices). More often than not, it is indication of mature trend, ready to transform to trading range if not to reverse or correct.

    And you can not only analyse existing visual structure of the chart, you can anticipate it’s future structure. For example - if you have trend represented in the sequence of ascending days without any correction or even consolidation, you automatically know that angle between impulse and correction will tend to be acute - so, if you will observe very small correction (and obtuse angle), odds are very high that such correctional low will be violated within a current or a next day.

    violation.png

    Do you try to catch bottoms/tops?

    Another important clue for a trader. Many, if not 80-90% of traders do the same thing over and over again. They try to trade a reversal before market is ready to reverse. In other words, it’s much more likely that market will first change it’s direction from descending (for example) to sideways, and only after that it can reverse.

    Recent example is shown below. One of students of my educational group had noticed that GBPUSD was possible ready to go up. But considering that sideways action usually lasts 2-3 times longer than trending action, we could avoid placing a long trade in the spot shown on the screenshot, at least before ascending trend is confirmed.

    sideways.png

    Important note: If trading range is long enough, and lasts about 2-3 weeks, we can be more aggressive in our directional trading - we might not even wair for confimation and place trades inside of a range. In such circumstances timing will help us to anticipate trending move.

  2. #2
    Registered user
    Join Date
    Dec 2013
    Posts
    608
    Trimming is important for me because when you open any position , you must take in consideration the right moment of opening it , missing time will not help you to maximize your benefit and maybe let fear control you , so you become more stressed and forget even how to analyse well the chart in front of you.

  3. #3
    Quote Originally Posted by Le Moi View Post
    Trimming is important for me because when you open any position , you must take in consideration the right moment of opening it , missing time will not help you to maximize your benefit and maybe let fear control you , so you become more stressed and forget even how to analyse well the chart in front of you.
    Can you be more specific? What does it mean - "the right monent"? How do you define that the moment is right?

  4. #4
    Quote Originally Posted by Value trader View Post
    Can you be more specific? What does it mean - "the right monent"? How do you define that the moment is right?
    i think that the thread is meant for explaining when to get the right entry for a trade where we must at the right price and the right trading scenario according to our trading system rules and also the trade must have a good risk o reward ratio for profit maximization

  5. #5
    Quote Originally Posted by kagho View Post
    i think that the thread is meant for explaining when to get the right entry for a trade where we must at the right price and the right trading scenario according to our trading system rules and also the trade must have a good risk o reward ratio for profit maximization
    Yes we need to consider the analysis we do and the confirmations we have, so that we strike the market at the right moments. Actually there is no specifically right or wrong time to trade, so when we can see an opportunity through our analysis and find we can utilize it, thats the best time to trade. We have to wait for the correct time to implement a strategy and this needs patience for sure.

  6. #6
    Quote Originally Posted by Abhishekwala View Post
    Yes we need to consider the analysis we do and the confirmations we have, so that we strike the market at the right moments. Actually there is no specifically right or wrong time to trade, so when we can see an opportunity through our analysis and find we can utilize it, thats the best time to trade. We have to wait for the correct time to implement a strategy and this needs patience for sure.
    Even if it is not really a good moment when we enter the market, it is still fine because we need to wait a bit until market favors our trading plan. Just because market got consolidating, it means we put wrong trades. No we need to wait for couple hours to wait and see what market will do about it. Do not forget to see forex calendar too and check any news release during our waiting time. If there are some news about to come, then analyze again if possible or manage the stop loss amount.

  7. #7
    Quote Originally Posted by Le Moi View Post
    Trimming is important for me because when you open any position , you must take in consideration the right moment of opening it , missing time will not help you to maximize your benefit and maybe let fear control you , so you become more stressed and forget even how to analyse well the chart in front of you.
    Time is very important for all traders because if you are working on the news so then you will need right time for open the trade. and then you can doing better if you will never working on the time so then you can not doing better. in the forex trading and stock you must working on the time and then you can become a good trader...

  8. #8
    Quote Originally Posted by Le Moi View Post
    Trimming is important for me because when you open any position , you must take in consideration the right moment of opening it , missing time will not help you to maximize your benefit and maybe let fear control you , so you become more stressed and forget even how to analyse well the chart in front of you.
    Yes this is right because timing is very important for traders. if you are working on the sessions so then you need exact time for open the trade. and news traders when events are coming then you need exact time for trade.. if you will never working on the right time so then you can loss money therefore time is important.

  9. #9
    Banned
    Join Date
    Apr 2017
    Posts
    3,264
    Quote Originally Posted by Le Moi View Post
    Trimming is important for me because when you open any position , you must take in consideration the right moment of opening it , missing time will not help you to maximize your benefit and maybe let fear control you , so you become more stressed and forget even how to analyse well the chart in front of you.
    timing is so much important in this business because if we are miss time, Its means we miss opportunity. If we enter into a trading position late then its result is only loss. We must need enter into a trade on time and also exit in time. Our enter and exit from a position is must be on time if we really want success in this business. Time is the most important part of this business.

  10. #10
    Trader Sascha's Avatar
    Join Date
    Dec 2013
    Location
    Racoon City
    Posts
    3,618
    Quote Originally Posted by shahzad View Post
    timing is so much important in this business because if we are miss time, Its means we miss opportunity. If we enter into a trading position late then its result is only loss. We must need enter into a trade on time and also exit in time. Our enter and exit from a position is must be on time if we really want success in this business. Time is the most important part of this business.
    there are always time to catch the trading opportunities and that doesn't mean we missed it totally. we just lose better entry yet we can still get some profits if we follow our analysis and hold our trade more until our analysis tell us what to do next as the exit strategy. timing is good, but if we lose only few seconds, we still can participate in market. even if the pips we'll get isn't much but i think we still can be profitable than get nothing.

Page 1 of 139 123451151101 ... LastLast

Posting Permissions

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