This Blog is basically created for Forex Traders to share their ideas, to help others and to get help from others.
About me:-
I trade Forex without using Indicators following Price Action. I got the basic from my own wife, then studied some ebooks and sites and practiced few brokers.I will start teaching from 1st Of August 2012 Insha Allah for free.U can add me in FB also. My Facebook ID is KhanFX.My.اُردو یا پشتو کے لیے ایڈمِن سے رابطہ کریں فیس بُک کے ذریعے یا بلاگ میں کمِنٹ کے ذریعے۔
Wednesday, 1 August 2012
HOW TO TRADE WITHOUT USING INDICATOR (1)
In the chart below EUR/USD shows its up move but we have to know where to enter. So lets discuss:
When we open a chart and we see a big move like this , we say oh shit I am late or I missed or we say Wow I got it. But when we enter a BUY position and the prices retraces. This is how when we don’t wait for confirmation. If U see the price here in the chart above is trying to move up but there is something trying to stop it which is called RESISTANCE. Now how can we know that ? Good question. Look at the chart carefully, the pink line is actually Ask Line, I didn’t draw it but from the same level prices was bounced back. Which created a resistance.Look at the previous trend just beside the current trend. This is how e should know when we enter, we should look at the level carefully. For me I will never enter here unless I see a proper breakout . PROPER BREAKOUT? Yes proper breakout , when a level is crossed by a candle we can’t say its broken but when a candle is closed above/below that level and doesn’t retrace that is a proper breakout. It means if a breakout is of a resistance then we should wait for next Bullish candle and if a breakout is of a Support then we should wait for next bearish candle . U can ask question I am online!
As we saw that trend changed just after that last candle. So in this case when ever we enter a trade , we must know that trend direction first in bigger time frame, we must know about the Level where the price is. If you see a very clear area having no resistance or support then you can enter but still I need to tell you that better you wait for any breakout. If U have impatient nature, control it,trade with patience and without emotions. Here in the chat above if there is no entry for BUY then where to SELL out? For this you need to know that whenever price is trying to break one level and fails to break, so it will retrace. In that case you just wait for next candle . For example in the chart above a bullish candle is trying to break a resistance but it failed as we saw in live chart and retraced. So when you see this kind of retracement , you just wait for second bearish candle , if that is also a bearish then enter.Sometimes you will see a candle with long shadow but no body at all that is called Dojji candle which means indecision. Means market be bearish or bullish. For each and every entry follow confirmation . Maybe I sound funny or stupid but this is the truth and it works for me very well alhamdolillah. So for now you just need to know the breakouts of resistances and supports.Its very important. You can install any indicator also which will help you to indicate supports and resistances but sometimes some levels are not drawn by indicators. Still if you feel difficulty then download indicator from my blog. http://khanfx.blogspot.com/2012/07/support-resistance-indicator.html U just follow this for now , next I am going to tell you some secrets which are more profitable and very useful.
Comment please!
This comment has been removed by the author.
ReplyDeleteWhen we open a chart and we see a big move like this , we say oh shit I am late or I missed or we say
ReplyDeleteWow I got it. But when we enter a BUY position and the prices retraces. This is how when we don’t wait for confirmation. If U see the price here in the chart above is trying to move up but there is something trying to stop it which is called RESISTANCE. Now how can we know that ? Good question. Look at the chart carefully, the pink line is actually Ask Line, I didn’t draw it but from the same level prices was bounced back. Which created a resistance.Look at the previous trend just beside the current trend. This is how e should know when we enter, we should look at the level carefully. For me I will never enter here unless
I see a proper breakout . PROPER BREAKOUT? Yes proper breakout , when a level is crossed by a candle we can’t say its broken but when a candle is closed above/below that level and doesn’t retrace that is a proper breakout. It means if a breakout is of a resistance then we should wait for next Bullish candle and if a breakout is of a Support then we should wait for next bearish candle .
U can ask question I am online!
good explanation.plz continue...
ReplyDeleteThanks brother. Any question regarding this chart or any, just ask any time I will reply sooner or later.
ReplyDeleteTomorrow also insha Allah I willtry to explain more about this and then I will explain about Trend Line.
ReplyDeleteAs we saw that trend changed just after that last candle. So in this case when ever we enter a trade , we must know that trend direction first in bigger time frame, we must know about the Level where the price is. If you see a very clear area having no resistance or support then you can enter but still I need to tell you that better you wait for any breakout. If U have impatient nature, control it,trade with patience and without emotions. Here in the chat above if there is no entry for BUY then where to SELL out? For this you need to know that whenever price is trying to break one level and fails to break, so it will retrace. In that case you just wait for next candle . For example in the chart above a bullish candle is trying to break a resistance but it failed as we saw in live chart and retraced. So when you see this kind of retracement , you just wait for second bearish candle , if that is also a bearish then enter.Sometimes you will see a candle with long shadow but no body at all that is called Dojji candle which means indecision. Means market be bearish or bullish. For each and every entry follow confirmation . Maybe I sound funny or stupid but this is the truth and it works for me very well alhamdolillah.
ReplyDeleteSo for now you just need to know the breakouts of resistances and supports.Its very important. You can install any indicator also which will help you to indicate supports and resistances but sometimes some levels are not drawn by indicators. Still if you feel difficulty then download indicator from my blog. http://khanfx.blogspot.com/2012/07/support-resistance-indicator.html
U just follow this for now , next I am going to tell you some secrets which are more profitable and very useful.