I want to trade on price action in FOREX anyone have any ideas where to start?

I

iza9090

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I've noticed that the traders that survive in FOREX use price action and rarely indicators. I am finding indicators misleading because of constantfalse signals - they work eventually (in hindsight) but its harder to trust when you are trying to enter a trade.

Is there a website/book/system that is out there that looks at price - thanks
 
My advice is to look up and study about:
1: Support and resistance
2: Inside bars/candles
3: Pin bars/candles
4: Fibonacci retracement in the forex market. 55% is a favorite of mine although not a true fib.

All of the above can be studied for free on Trade2Win and other places. Google it and you will have hours of stuff you can read/watch for free. In fact you can get some half-way ok videos on youtube about the above also.
Don't fill your head with all kinds of everything about trading. Just work on the above four. When you start to get good with them you may want to add some cycle analysis also.
If you add more to the list above you WILL overload yourself. Not to mention the fact that you really don't need more to trade well. Also to tell the truth if you are willing to look you don't need to pay a penny for any of the information.

All in my humble opinion.
 
I would suggest you dont start ( i have taken up a new hobby of growing mushrooms )unless you have a large amount of money to lose.
 
The stats show you dont stand a chance.Only trying to save you time , money and heartache.
Ponder on this : with classic investment firms which have recently gone bust who have super computers and super smart brains have no chance - why bother?
 
puregold24carat said:
The stats show you dont stand a chance.Only trying to save you time , money and heartache.
Ponder on this : with classic investment firms which have recently gone bust who have super computers and super smart brains have no chance - why bother?
Click to expand...

The "super smart brains" you talk about with their "super computers" went bust mostly because of bad money management. They were leveraged out the ying yang and as a result when things went bad as quickly as they did were forced into selling at any price to try and meet margin. Allot of them couldn't raise the money they needed and went under.
Just because the big boys fail to keep there head about them and fall at the knees of greed doesn't mean we have to.

If you want to trade, the forex markets are as good a place as any to start. Maybe better.
You can paper trade 'til you get it right and then you can start out with real money. Not the thousands you would need to start with stocks or commodities, but less than $100.00.
That makes the transition to real trading a little bit easier.

The question is...
Is your glass half full or half empty? AND would you be willing to put the time and effort into learning to use trading to fill it up the rest of the way?
 
1. support & resistance
2. candlestick patterns/formations (that signal turning points) as entry criteria.
3. Candlestick patterns/formations can also be used to manage the trade, so you know when the trend is still in existance or when it has reversed etc.

Basically, all this can be found for yourself by studying a candlestick chart.
 
Right... does anyone know where I can get history data for the EUR/USD (about 5 years) so I can work out major support/resistance lines?

I recently got forex tester but the data only goes back to 2006... i use oanda but have not yet got data from them despite my $1000> account.

Puregoldcarat24 thankyou for your input - not trying to be a 'smart ass' but i'ld rather see myself if I the statistics are right :p I think that failing depends on what you are trying to achieve... I am not here to make a million dollars - I just want to have a sound strategy and be the best possible trader I can be (with my psychological blueprint :p)
 
puregold24carat said:
The stats show you dont stand a chance.Only trying to save you time , money and heartache.
Ponder on this : with classic investment firms which have recently gone bust who have super computers and super smart brains have no chance - why bother?
Click to expand...

Iza9090, you will find a lot of people who are very bitter towards people who want to start trading; however, the only reason these people are bitter is because they couldn't succeed at it. Worms always come out of the woodwork to make a quick snide comment, but when you succeed they are no where to be seen! Probably off tending to "their mushrooms", isn't that right puregold24carat? :whistling

There are plenty of people on this forum who make money trading. I trade Forex using purely price action and I make money (most of the time). Everyone has ups and downs. The above posts have given some great advice, I would just say: make a trading plan! Trading plans act as a guide when choosing trades -- I stick to my plan fairly rigidly.

Good luck (Just ask if you get stuck).
 
iza9090 said:
Right... does anyone know where I can get history data for the EUR/USD (about 5 years) so I can work out major support/resistance lines?
Click to expand...

I think learning to read price action would be a more worthwhile activity for the time being.

Are you planning on day trading, or are you going to be holding positions long term?
 
Hi Paddington_Bear .... my positions are mostly 'day trades' (however can go longer if my target has not been reached) - I have been advised to focus on the 4 hour chart since it contains less noice.

By the way thankyou all for helpiong me out you guys have been great and I really appreciate it!
 
I like the 4 hour chart; however, to gain some advanced warning about possible reversals I also use a 1 hour chart and a 15 minute chart.

Sometimes the 4 hour chart can show a strong downtrend; however, the market could be making consistently higher highs and lows (consistently breaking through swing highs) on the one hour and 15 minute chart.

It's always better to have the complete picture. Stops us all jumping of bridges without bungee ropes!
 
Hoggman said:
This is the best info I have seen on the subject.

james16 Chart Thread
Click to expand...


Interesting post ... goodness, I see the thread has been running for more than 3 years; Is James still posting to it? (Only read the beginning and end so far). Near the beginning, he was writing:

James16 said:
if you decide to trade 5min charts on forex i want to warn you to be careful. forex is great on 60 min and daily charts but i have found them difficult to trade on smaller time frames. i am not sure why but it may just be that i am relativly new to forex. jim
Click to expand...

He was also writing about the amount of money that you could (theoretically) make. Well, 3 years later, I guess he is either a very rich man, or a much wiser one, or possibly both.
 
iza9090 said:
Right... does anyone know where I can get history data for the EUR/USD (about 5 years) so I can work out major support/resistance lines?
Click to expand...

Metatrader is decent. It's free, the data goes back ages, and you can also open a demo account. Loads of brokers use Metatrader, so you will also be able to trade using it.

Try Alpari.co.uk and download a demo account.

(Caveat - plenty of other places to get it from - I just don't know them!!! I don't work for Alpari or anything. Besides it's all free anyway so they won't make any money from you.)
 
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