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 Forex version XVII, Foreign Exchange Market Discussion

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Homosapien
post Oct 14 2015, 11:07 PM

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From: Ampang


QUOTE(carrer @ Oct 14 2015, 10:58 PM)
Firstly, price is the most leading and probably the best indicator in forex (in futures we have orderflow as the leading indicator). Therefore I don't use any other indicators.

Some traders trade price actions, some support and resistance, some patterns, etc.
It's not wrong to use an indicator(s) however you have to make sure that you have a statistical edge. The only way to test if it has a statistical edge is to backtest your indicator (manually or automated). If it has a positive expectancy after about 500 trades then you are good to go.

But again, indicators are prone to curve-fitting. It may work now, this year, this month, but probably not the next.

Regarding books, I don't think anyone would want to reveal their edges publicly. Take a look at The Turtles System, it might not be working anymore but worth a read.
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Thanks a lot Carrer for your guide and advice.
Really appreciate your precious time and efforts.


Homosapien
post Oct 15 2015, 12:18 AM

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QUOTE(carrer @ Oct 14 2015, 11:14 PM)
Welcome.

One more thing to add. There are 2 types of edges.

1. Temporary = based on certain market behaviour for a period of time or certain pairs.
2. Permanent = based on the overall nature of the market.

I remember there was one thread in Forexfactory showing a temporary edge. It's something like if the price has traveled a certain pips from the open, enter the trade. You can try using this if you don't have an edge. But I am not sure how long it will last. It works on most pairs.
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Thanks a lot again, Carrer.
Homosapien
post Oct 15 2015, 08:54 PM

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QUOTE(Alex9182 @ Oct 15 2015, 06:24 PM)
Found this Free beginner lesson :-

http://www.learntotradethemarket.com/forex-university

Teach Price Action trading
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thank you Alex.
Homosapien
post Oct 20 2015, 06:03 PM

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QUOTE(13aby @ Oct 20 2015, 09:30 AM)
EG long anyone? cool2.gif
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i long EUR/GBP at 0.7332.
What target should I exit?
Homosapien
post Oct 20 2015, 06:09 PM

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i long EUR/USD at 1.1328, any target to exit?

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