i have funded 500$ , what amount should i aim for everyday?

[ashwani chadha]

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i am going to make this seem a lot easier than it really is, but it comes from 7 years of staring at charts. After the experience, you tend to spot things on the fly.

I'm using the 200sma on the 5-min (to show it does not matter the tf.), your rsi, and the eur/usd which was the pair that put a scare into you.

The event to the left in the brown oval shows how the sma acted as initial r.

The next one in the oval shows how price action went sideways then broke loose in the same direction it approached it, so it broke the r. What's important is the confluence of events. The rsi stayed above the 50 mark, while price action went sideways. Also, you have been paying attention to chart s&r's. The previous peak would have been an additional indication to go long.

The 3rd to the right was contained as s. Notice the rsi went sideways at the os indication the same time price action hit the sma. That is your indication to go long.

This is something you need to experiment with rather than taking my word for it. These principles need to be proven to yourself through hands on practice. You will have questions through your findings, so that is when you post them.

dear paul thanks for providing above chart ,along with your comment that which is the right entry signal,basically 200 day ema in place of sma and rsi both are part of my mts .i take their help,to get the second view after taking first view from my support or resistance

 

[Piratetrader]

I don't use RSI because it is a personal preference. The same can be said for the Fibos. I don't use them because of personal choice. I will share my knowledge on the indicators, as I have looked at and studied 100's (literally). How you use them will be up to you. This why it is imperative to use your own experimentation on the indicators you choose. Watch price action relative to certain readings. Draw your own conclusions based on the settings of each indicator and the indicator itself.

Keep this in mind. I can share with you my personal knowledge and experience. What will make you an outstanding trader will be your experience. In the beginning stages, you gain experience by experimenting. What may also be helpful is to post charts based on your personal observations. Also take your indicators and settings of choice and try and use them on any market to determine future price action. Just make it a game.
Also, do not be concerned with what market it is. I believe that is a lot of hype. When I make a trading decision, it is based solely on what my charts and the indications say. I mentioned my Weekly Forecast and the fact I do it on 11 markets. I chose those 11 markets, because they are the most popular. My Weekly Forecast would be just as accurate if I used any 11 markets. Remember! It is the chart, candles and the indicators you are looking at.

With regards to the 14*5=70, et al. Yes, 1 5-min on a 14-candle setting covers 70 minutes, but on an hourly would cover 14 hours, on a monthly would cover 14 months. It is simply the quantity of candles it is considering.

As far as the stochastics are concerned (It is my oscillator of choice.), plot them on your chart, observe price action, then make some posts on your observations, and then I'll comment.

THANK YOU

SIR ON 1 HOUR CHART I HAVE SET THE SMA TO 14 , ON 1 HOUR CHART WHAT DO YOU THINK?? BECAUSE 200 SMA WAS JUST TO MUCH FOR ME ON 1 HOUR CHART! IT REQUIRES LOTS OF SL, most of the time i have marked them as question mark! also i am using the bollinger bands which seems to give good indication when the candles cross the top bands its time to see when the candles crossed the down band its time to buy. sma is set to 14, but as you see in bollinger bands there should be 2 bands but why am i getting 3 bands 1 in the middle? sir when i see the RSI and Stoch together at some places they just do not agree together here is a chart! most of the time hence STOCH IS ABOVE 80 INDICATING A SELL BUT RSI DISAGREE'S STILL NOT TOUCHING 70 TO INDICATE SELL

 

[Piratetrader]

 

[4xpipcounter]

Ashwani, I'm glad you got a benefit. I do enjoy looking at the markets throguh the eyes of other indicators.

dear paul thanks for providing above chart ,along with your comment that which is the right entry signal,basically 200 day ema in place of sma and rsi both are part of my mts .i take their help,to get the second view after taking first view from my support or resistance

 

[4xpipcounter]

Oscillators are lagging indicators. They cannot be backtested, all though the points you outlined shows me you have the right idea. The only way to accurately test an oscillator is to test it live. When you see it get close to the OB/OS region, then you should be getting ready to think in terms of a reversal. Watch for the crossover, and then the resulting action.

The 200 SMA is too much for a lot of people. It is just a more solid indication of S or R. With the 14, there are going to be many crossovers and oscillations. But then, that is why you always need a confluence.

The 3rd line on the BB is the mean. There will always be a gravitational pull to the mean. If you plot a 1 (You have a 2 right now.) you will notice that at least 68% of all the data is contained between the 1's and the mean. The outward lines you have on the BB is a standard deviation of sigma 2 from the mean. That is showing an extreme reading from the mean.
I think you have your settings on 20,2. Try 28,2 and 28,3. All traders use their indicators differently. I like the setting of 28 on the BB, because the average cycle length for any market is circa 28, so the 28,s would be a truer measure of an extreme reading within that cycle. 5% of all data hits the 2 and 2% hits the 3, but that number will be a little higher because we are dealing with dynamic data. Most SD measurements are done with static data.

Oscillators, as well as all other indicators are not supposed to agree all the time. This is why you need a confluence. Also, in experimenting (This is only be a personal opinion.), it is okay to use all the oscillators you want, but eventually you may want to settle on just one, because they do, essentially, the same thing.
I would start with 5,5,5 on the stochastics, then experiment to find what is right for you. I would also set the OB/OS lines to 85 and 15, not the default at 80 and 20. There are more truer signals at 85 and 15.

RSI does not have to hit 70 to indicate sell. When it gets there, let it become an alert, then look at your other indicators to form a confluence.

THANK YOU

SIR ON 1 HOUR CHART I HAVE SET THE SMA TO 14 , ON 1 HOUR CHART WHAT DO YOU THINK?? BECAUSE 200 SMA WAS JUST TO MUCH FOR ME ON 1 HOUR CHART! IT REQUIRES LOTS OF SL, most of the time i have marked them as question mark! also i am using the bollinger bands which seems to give good indication when the candles cross the top bands its time to see when the candles crossed the down band its time to buy. sma is set to 14, but as you see in bollinger bands there should be 2 bands but why am i getting 3 bands 1 in the middle? sir when i see the RSI and Stoch together at some places they just do not agree together here is a chart! most of the time hence STOCH IS ABOVE 80 INDICATING A SELL BUT RSI DISAGREE'S STILL NOT TOUCHING 70 TO INDICATE SELL

 

[Piratetrader]

Oscillators are lagging indicators. They cannot be backtested, all though the points you outlined shows me you have the right idea. The only way to accurately test an oscillator is to test it live. When you see it get close to the OB/OS region, then you should be getting ready to think in terms of a reversal. Watch for the crossover, and then the resulting action.

The 200 SMA is too much for a lot of people. It is just a more solid indication of S or R. With the 14, there are going to be many crossovers and oscillations. But then, that is why you always need a confluence.

The 3rd line on the BB is the mean. There will always be a gravitational pull to the mean. If you plot a 1 (You have a 2 right now.) you will notice that at least 68% of all the data is contained between the 1's and the mean. The outward lines you have on the BB is a standard deviation of sigma 2 from the mean. That is showing an extreme reading from the mean.
I think you have your settings on 20,2. Try 28,2 and 28,3. All traders use their indicators differently. I like the setting of 28 on the BB, because the average cycle length for any market is circa 28, so the 28,s would be a truer measure of an extreme reading within that cycle. 5% of all data hits the 2 and 2% hits the 3, but that number will be a little higher because we are dealing with dynamic data. Most SD measurements are done with static data.

Oscillators, as well as all other indicators are not supposed to agree all the time. This is why you need a confluence. Also, in experimenting (This is only be a personal opinion.), it is okay to use all the oscillators you want, but eventually you may want to settle on just one, because they do, essentially, the same thing.
I would start with 5,5,5 on the stochastics, then experiment to find what is right for you. I would also set the OB/OS lines to 85 and 15, not the default at 80 and 20. There are more truer signals at 85 and 15.

RSI does not have to hit 70 to indicate sell. When it gets there, let it become an alert, then look at your other indicators to form a confluence.

thank you i have set the bb to 28 and stoch to 5,5,5, and (85-15) and yes it does help more for accurate indication with rsi i am starting to love T.A but after your each clarification i come up with another doubt !!Sir first for the BB, there are three red line and as you said the third line is mean!! but what i have learnt about bollinger bands is that there are supposed to be 2 lines above line and bottom line. if the candles brakes above the red line it indicates A SELL and if candles brakes below the second line it indicates A BUY. now how will i use the third line (mean) as an indicator? please explain sir because like if the candles break below the middle bollinger band it has to be a buy now i see in the charts that after breaking below the middle bollinger band it should go up indicating buy but it goes more down and breaks below the third line!!

 

[4xpipcounter]

That's a loaded question, and most of the answers come with observation. In short, watch for price action on its approach, and then once again, look for a confluence of events ("Confluence"---I will hammer that term in your head.), and then those are the indications whether price action will go through the mean to the other side, or it will act as S or R. Another thing is that considering 68% of all data stays within the 1's, another way to use BB's in lieu of the mean is to plot on 28,1, and then trade the channel within those points, or trade the breakaway from the 1. Again, even there, after you have developed a methodology that contains your favorite indicators, watch for a confluence of indications. If a confluence is not identifiable, then let the trade go by and look for something else. About the only indicator I know of that can be used as a standalone is the ichimoku, and I don't use the ichimoku as a standalone, even though it carries a lot of weight in my trading decisions.

I will also remind you a lot that answers come from personal observation, and not through backtesting, but through live price action.

thank you i have set the bb to 28 and stoch to 5,5,5, and (85-15) and yes it does help more for accurate indication with rsi i am starting to love T.A but after your each clarification i come up with another doubt !!Sir first for the BB, there are three red line and as you said the third line is mean!! but what i have learnt about bollinger bands is that there are supposed to be 2 lines above line and bottom line. if the candles brakes above the red line it indicates A SELL and if candles brakes below the second line it indicates A BUY. now how will i use the third line (mean) as an indicator? please explain sir because like if the candles break below the middle bollinger band it has to be a buy now i see in the charts that after breaking below the middle bollinger band it should go up indicating buy but it goes more down and breaks below the third line!!

 

[Piratetrader]

That's a loaded question, and most of the answers come with observation. In short, watch for price action on its approach, and then once again, look for a confluence of events ("Confluence"---I will hammer that term in your head.), and then those are the indications whether price action will go through the mean to the other side, or it will act as S or R. Another thing is that considering 68% of all data stays within the 1's, another way to use BB's in lieu of the mean is to plot on 28,1, and then trade the channel within those points, or trade the breakaway from the 1. Again, even there, after you have developed a methodology that contains your favorite indicators, watch for a confluence of indications. If a confluence is not identifiable, then let the trade go by and look for something else. About the only indicator I know of that can be used as a standalone is the ichimoku, and I don't use the ichimoku as a standalone, even though it carries a lot of weight in my trading decisions.

I will also remind you a lot that answers come from personal observation, and not through backtesting, but through live price action.

THANKS!, SIR I SOLD EUR/USD AT 1.4300 I WAS CURRENTLY TESTING BB, RSI AND STOCH WHOLE YESTERDAY AND I FIGURED OUT IT WAS WORKING GOOD. I TRIED THE ichimoku TODAY AND I PLAN NEVER TO USE IT AGAIN AS IT HIGHLY WENT OVER MY BRAIN, I WILL TEST PARABOLIC SAR AND MAC TODAY TODAY! SIR DID I PLACE A GOOD ENTRY TO SELL EURO AT 1.43?

 

[sayantan2u9]

@saiftauheed,@all others also

i am an absolute new to trading.i have been reading posts and gather information.also playing demo account.

i found information by they were very scatterd

i want to trade forex

i am facing some difficulties reguarding some issues

1.how to find a broker (i.e. which broker is good in india)
2.whether we can trade EUR/USD, USD/CAD, etc etc pairs
other than INR/USD INR/EUR pair legally in india.
3.what is a good capital to start with

can u please tell me what procedure u have followed step by step..?

thank you.

good to see u doing well..

i hope it wont cause too much trouble for u.thank you in advance again.

 

[4xpipcounter]

It is no problem for me, but I just don't want to divert the op's thread.

I'm from the USA. I know of traders from India who trade forex, but others say it is illegal in India, so I can't respond to that portion of your query.

With regards to capital, there are now many companies where you can trade microlots. It used to be $10,000 was a good stable amount to start with, because of only standard lots being available. Now, with microlots, you can start with $100 and still be within the same margin compatibility.

BTW, keep doing your homework and stay at it. It will take time, but once you fully develop a method of trading, you can even grow $100 into a nice little stash over time.

@saiftauheed,@all others also

i am an absolute new to trading.i have been reading posts and gather information.also playing demo account.

i found information by they were very scatterd

i want to trade forex

i am facing some difficulties reguarding some issues

1.how to find a broker (i.e. which broker is good in india)
2.whether we can trade EUR/USD, USD/CAD, etc etc pairs
other than INR/USD INR/EUR pair legally in india.
3.what is a good capital to start with

can u please tell me what procedure u have followed step by step..?

thank you.

good to see u doing well..

i hope it wont cause too much trouble for u.thank you in advance again.