learning price action using MAs, fibo and horizontal levels

This is a discussion on learning price action using MAs, fibo and horizontal levels within the Trading Journals forums, part of the Reception category; i remember saying i would take a year away from here, lol i think it has been just over 2 ...

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Old Aug 6, 2009, 8:23pm   #1
Joined Jul 2009
learning price action using MAs, fibo and horizontal levels

i remember saying i would take a year away from here, lol i think it has been just over 2 weeks since that, and by jove have i improved.

So i figured i could show you some of the trades i take on a MT4 demo account, as there really are some gurus on PA out there. I stripped my chart of all indicators, except for MAs
i trade daily and H4 charts, i go back to the weekly timeframe back about a year, if there if a downtrend i draw a fibo level, if price action forms around that level i will trade it.



ok here is a trade i took today, the first chart is the weekly timeframe of the USDJPY, and the second is the H4. As you can see the weekly trend is down, then there was a retracement towards a fibo level, so i zoomed in on the H4 chart and i see a nice bar forming which is pretty much a pin bar- however the pin bar rejected the higher price at a major resistance level aswell as at a 38.2 weekly fibo level, creating 'confluence'.
you can't actually see the fibo level because that red resistance line is over it.

Pleasssseee post your thoughts because i'm trying to improve trading PA..lol icould maybe change my name to PAjammy, eh?

edit: by the way the thread title is not for me to teach you guys lol it's about me learning but as always you can learn by reading what the pros have to say
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Old Aug 6, 2009, 8:25pm   #2
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TAjammy started this thread woops here are the charts
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Old Aug 6, 2009, 9:27pm   #3
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TAjammy started this thread interesting, noticed price was heading againt me so i zoomed in on the 5 min chart and noticed price is coming back up to the prior trendline and this would be a great retracement trade -if i was a day trader that is

o, it did retrace!but off the MA, a good reason to have MAs is that price usually reacts to them... comon tank u little bi*** ,
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Old Aug 6, 2009, 9:28pm   #4
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TAjammy started this thread here's that chart
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Old Aug 6, 2009, 10:06pm   #5
 
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Originally Posted by TAjammy View Post
here's that chart
So much to learn still but keep trying. Tell me what is the indicator at the bottom of the chart? I just know you going to say volume.
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Old Aug 6, 2009, 10:23pm   #6
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yes that is indeed volume, the most worrying quote is "i think it has been just over 2 weeks since that, and by jove have i improved"...yes you probably have but that is what learning how to trade is like, i've been learning for somewhere around 8 months and i almost every day have that feeling of learning and realisation...don't get overconfident about this feeling.

The best thing to do is just stick to one way of trading for a few weeks then make a decisions, don't keep switching it is a waste of time, i did that for so long and it doesnt get you anywhere, and keep your mind open.

The thing i am coming to realise it doesn't matter how you trade, it is if you feel comfortable. Keep it up, at your age you can do some serious damage to the markets, i know someone who started trading young and they bought a merc for their first car...it can happen, they were already minted but still, it can happen...
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Old Aug 6, 2009, 10:33pm   #7
 
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Originally Posted by cr6196 View Post
yes that is indeed volume, the most worrying quote is "i think it has been just over 2 weeks since that, and by jove have i improved"...yes you probably have but that is what learning how to trade is like, i've been learning for somewhere around 8 months and i almost every day have that feeling of learning and realisation...don't get overconfident about this feeling.

The best thing to do is just stick to one way of trading for a few weeks then make a decisions, don't keep switching it is a waste of time, i did that for so long and it doesnt get you anywhere, and keep your mind open.

The thing i am coming to realise it doesn't matter how you trade, it is if you feel comfortable. Keep it up, at your age you can do some serious damage to the markets, i know someone who started trading young and they bought a merc for their first car...it can happen, they were already minted but still, it can happen...
There is no volume in forex so that is silly to start with. Your post is good. I would suggest he concentrates on one currency pair and gets to know it inside out. Develop a system as simple as possible and stick to it. Take the silly lines off the chart use eyes and win. That's price action. Action is what is happening - lines are what has happened. Once the difference is understood then a big step forward has been made. Told him all this before - be back to rsi and ma's tomorrow no doubt. Oh well.
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