How to do market research

[sergiosv]

Hello guys...
I'm just wondering how the best of you carrying their research...
what your techniques...what you're looking for on the chart?...what time frame you use?...anyone reading the news or is better going against the forecast?!...
For now...I'm relying on the alligator moving average. ..the pivot and fibonacci
Thanks everyone ;-)

 

[billyjean]

Hello guys...
I'm just wondering how the best of you carrying their research...
what your techniques...what you're looking for on the chart?...what time frame you use?...anyone reading the news or is better going against the forecast?!...
For now...I'm relying on the alligator moving average. ..the pivot and fibonacci
Thanks everyone ;-)

for starter you may want pick your primary pair, for example EURUSD. had any information upon it, you can begin with their Average daily range, average session range ( asia,london, us session ). as matter of time frame is more lead into exit strategies, which means longer timeframe would result longer exit plan/range, so does with lower one, suit yourself and pick any timeframe, my suggestion had minimum 2 TF use, and always check the daily one.
news ? you not want to mess with it at your first try, i guaranteed you will end uop in confusion try to catch up what most economists said, pick this issue later on after you had a better foundation with your major pair, it will also narrow which news you need to hear instead of reading any news article you found .
alligotor, pivot, fibonacci, are powerfull tool, honestly any indicator are powerfull tool if the trader are good at using those tool, it will need times to practice. for now you may want consider, the price are the only indicator you need, as powerfull tool rely on your own experience 1st, trader;s experience are best trading tool ever!

 

[sergiosv]

Thank you so much! ...;-)

 

[tomorton]

news ? you not want to mess with it at your first try, i guaranteed you will end uop in confusion

Absolutely right. If you're just starting out in trading, don't base your trades on news and especially don't enter a position before the news is released. If you want to trade on news rather than fundamentals or technicals, wait for the market to react to the news and go with their direction, e.g. BP released its annual report on 29/07/14: price fell 2.5% on that day but then went sideways for 5 days - this was plenty of time for the people who wanted to buy BP to step in and do so, but they decided not to: if you had shorted BP at any time in that period, no need to hurry this one, using the closing price of 28/07 as a stop, you could have made 20% profit by Christmas. In this case, the market showed you which way to go and all you had to do was follow.

 

[sergiosv]

To be honest I do prefer chart analysis. ... I found news really confusing and not reliable compared ro charts ;-)

 

[tomorton]

Then you will see there were other good reasons on the chart to short BP - days before the results came out, though many traders would wait for ther results, just to make sure there were no surprises that could have made price start to rocket.

 

[gerryg]

Absolutely right. If you're just starting out in trading, don't base your trades on news and especially don't enter a position before the news is released. If you want to trade on news rather than fundamentals or technicals, wait for the market to react to the news and go with their direction, e.g. BP released its annual report on 29/07/14: price fell 2.5% on that day but then went sideways for 5 days - this was plenty of time for the people who wanted to buy BP to step in and do so, but they decided not to: if you had shorted BP at any time in that period, no need to hurry this one, using the closing price of 28/07 as a stop, you could have made 20% profit by Christmas. In this case, the market showed you which way to go and all you had to do was follow.

Hope you know what is slippage and how vivid it's influence on prices after news releases. On the contrary, I don't recommend traders to enter after news release because most probably you order will be executed with slippage on in case of tight limitation - requote. As I dedicate my trading particularly on grabbing news-evoked pips I managed to learn market behavior in those time quite thoroughly. I never use Stop or Limit orders at HF in news times