promixer wrote: Wed Sep 27, 2023 5:21 am
Great, thank you for the answer. Can I ask you what is your confirmation or let us say master trend to take a trade on M30? Do you only look where RSI is on H1? Or do you look at H4 RSI? Or what is your main determination of the master trend to take a trade on M30?
Thank you for your answer in advance.
No, I do not use RSI. It's a lagging indicator and too slow for the market I trade.
As smart traders, we should aim to use leading indicators, smarter tools and techniques which give us an edge.
All markets generally respect Pivot points and certain Moving averages.
I have found the following tools very indispensable in my years of trading:
1) Day's Open
2) Previous Day's High
3) Previous Day's Low
4) Previous Day's Close
5) Day's Pivot
6) 20 EMA High
7) 20 EMA Low
The Market gets attracted to them like magnets.
You need to have an indicator, EA or BOT which automatically plots these lines on your chart.
You can get them free on many Trading forums or get a coder to code them for you.
Generally speaking, you watch how the market reacts to these lines as PRICE approaches them.
Is Price going to BREAK or BOUNCE off these levels?
Most of my entries tend to be around the 20 EMA.
For many years, I used customized price bars such as Heikin Ashi, Easy candles etc...which tend to summarize what price is doing.
But I ended up losing lots of money because they all seem to hide PRICE ACTION and react very late to market changes.
Now, I only use NATURAL PRICE BARS: Blue = BUY, Red = SELL
Hence, if you need to catch early market moves, you've got to use NATURAL price bars.
In an uptrend you've got to take a contrarian view of the market when the bar is red. Wait until price retraces to any of the levels stated above.
As soon as the price bar turns BLUE in an uptrend and starts going UP, just get in.
Same as in a Downtrend. Wait until the price bar turns RED around one of those levels...and starts going down.
For each position, make sure you always set a STOP LOSS and TAKE PROFIT.
Hope this helps!!