This is the daily chart. It is showing that when the day started, there was a break under the tenken and kijun. When you get a break on the other side of both, this is added R (in this case). When you develop a knack for your favorite MA's (That's if you continue using them.), you will then notice the added support and resistance once price has broken through both of them. The nice thing about the kijun and tenken, is that when they are broken, the total scope of the median was broken, and that is in regard to its formula as discussed before.
The stochastics oscillator also came into play with my trading decision. It was not OB by any stretch of the imagination. The thing it showed at the beginning of the day the value line crossed the signal line and was on a divergent path from it. This told me the bears weer heavily favored and consider how closely the candle was to the kijun it also showed a low risk trade, even though a wide stop was still needed.
If you trade forex, then you especially need to be aware of the time of day you are trading. There are certain times of the day that are more voluminous than others. Volume is the octane that pushes price action. The times of high volume IST is 11:30 am to 10:30pm. I'm mentioning that because once you are in the trade, you would probably want to use the hourly or greater to trail your stop. If you are a daytrader, then starting at circa 10:30pm IST, you want to scope down to the 15-min to trail the trade. During this time the sheer volume is going to take out the 15-min charts, even 3 candles back.
One more thing, and this is my personal experience talking. You Tube is a good source to see training videos, but take them with a grain of salt. You check it out and you will see those videos have a web site attached to it. The idea is to get you to visit the web site, and then they have something to sell you-- online training program or seminar, e-books, etc. Their videos are designed to make their sales pitch look plausible. Everything they talk about looks good on a video.
Am I going anywhere with this? You better believe I am.
There are exceptions, but for the most part, if someone really knows how to trade, there is no need to be moonlighting, namely selling stuff on the side. There is to much money for the pro to make in trading to be concerned with selling e-books and training material. Here's an example. I talked about this GBP/CHF trade. It was tough! I won't tell you how many lots I had on the trade, but one lot made 450 USD, and all I had to do was press the sell button, then add some data concerning the stop and TP. If an e-book cost 50 USD, that would be 9 e-books I'd have to sell in order to equal what I got on a tough trade. Your question should be, "Why are you selling e-books if you are making that much money?" Seminars are worse. You get all the people to come in at 450 USD at a crack, but then you have all the devoted time and preparation for that. That time could have been spent sitting in front of the computer making money the same way you're charging others.
The best information and most valuable is the free information without the ulterior motive. There are many good threads in this forum that will abet that interest.
Now let me smoke a pet peeve of mine, and if you are not convinced, then get back to me, and I'll elaborate further. Hopefully the sheer common sense will prove the point.
A set amount of pips on a stop does not work, and that includes setting a stop "5 pips on the other side of the kijun". That set amount could very well be within the zone that price is moving in. Stops need to be more systematic in order to be effective. They need to be placed on the other side of key supports and resistances. If it is a straight dollar amount or x amount of pips, you're looking for trouble....period. The guys that show that stuff on a chart on You Tube are good at finding whatever charts they can that will support their view.
Here's a classic example: There are great salesman (I call them that because they do not know how to trade.) that show, and eventually sell their MA crossover systems. Every single time you go to You Tube or their web sites, the crossover con artists are showing the perfect trend, where the candles crossed the MA's, and all the money you could have made.
So, here's your monkey wrench. After you view their garbage, pop open your own charts, plot their system on your chart, but view i on a sideways market, then ask yourself how many trades you would have taken base on the methodology espoused and how many times you would have been stopped out.
Now, I'll put the shoe on the other foot. I'm used to it, because I tell people this all the time. Do not believe anything I say (Doesn't mean you have to call me a liar.). Take everything I say, observe it on your charts, and then post all your doubts. Make me prove what I say. Afterward, you go through the learning process, then rather just believing someone, you develop a heart conviction about what you do. That, my friend, is powerful stuff.
I've given you a lot of stuff to consider. I look forward to talking more.
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