timsk
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Hi andyh1877,
Welcome to T2W.
You're already on the one and only site you'll ever need - your search is over! With regard to understanding price charts, start by looking at the Stickies and FAQs linked in the welcome e-mail you received when you first registered. Other than that, this thread (and the pdf linked in the opening post) is as good a place as any to start: If You Can Draw A Straight Line (You Can Become A Successful Trader)
Enjoy!
Tim.
AllDayHolds
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https://www.youtube.com/channel/UC1kKC-imGo7tPA0md0vWiYg Tons of free videos of trades and understanding moves
Investopedia, Forexpeacearmy or baby pip school. Last two embrace all trading theory as well as give a clue on basic and advanced trading strategies. My suggestion would be picking one of this resource and read them far and wide then apply your utilize the knowledge on demo trading.
You can download MT4 for example from Нotforex or FXCM and start training right now.Investopedia, Forexpeacearmy or baby pip school. Last two embrace all trading theory as well as give a clue on basic and advanced trading strategies. My suggestion would be picking one of this resource and read them far and wide then apply your utilize the knowledge on demo trading.
You got it, the babypips school is the best resource to start with.
Investopedia is comprehensive too, but it works better as an encyclopedia where you go to search for terms or concepts you want to become more familiar with.
If you later want to go into autmated system development, I can help. I'm a professional Forex programmer and I'm planning to start an open-source project where everyone can get involved and that can benefit a whole community.
philhackett
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Best Broker
Use FXCM which isn't a Market Maker and will not steal your money. Consider Mirror Trading. FXCM holds free training classes monthly. The Italian Index is profitable to use and works well with Double Bollinger.
A Simple Moving Average Trading System (SMA)
3x13X39 = Profit
I want to address a question commonly asked by those who are computer phobic, techno confused and Internet allergic, "What is a good simple system to follow, to get in and out of markets?".
Most people are comfortable with the herd. Such good folk are most comfortable with a trend following system. I am ill at ease in a pack and downright anxious when everybody and his dog are comfortably saying the same thing. I am, therefore, drawn to oscillators to anticipate the end of popular perception. Oscillators also give an insight into the cyclical nature of markets. Being obsessed with market structure and somewhat compulsive in my quest for efficiency my ways are not 'comfortable' for many. So to get back to basics for those not able or willing to devote the time to market study that I do here is a way to handle your market study and trading decisions.
Remember the numbers 3 x 13 x 39 = Profit
Simple daily moving averages of 3,13 and 39 can keep you in and out of markets fairly efficiently and profitably, (in any time frame actually). I will show you how.
Some basic principles to hang on to are:
· The market moves in long (secular) trends which may last years, e.g. the present equity bull market dates from 1982.
· Intermediate trends lasting many months, even a couple of years or so.
· Short term trends lasting weeks or months.
· Trade intermediate trends in either direction.
· Trade short term trends only in the direction of the intermediate trend.
Proxies:
· 3 Day MA - a proxy for price
· 13 Day MA - a proxy for the short term trend (a moving trend line)
· 39 Day MA - a proxy for the intermediate trend (a moving trend line)
· 40 week, 200 day MA - a proxy for the secular trend (a moving Trend line)
The Basics of MAs
MAs lag market reversals at tops and bottoms, the larger the MA the longer the lag period, the shorter the MA the shorter the lag but the more frequent the whipsaws. MAs work well when markets trend but get frequently whipsawed when they are in a range.
Therefore, trade trends with the MAs but do not trade ranges using MAs. Just stand aside and be patient until a new trend emerges.
The intermediate trend is in the direction of the 39 MA which acts like a moving trend line. If the 39 MA is pointing up then the intermediate trend is up, if down the trend is down. If the 39 MA is horizontal the market is in a range, from which a trend will, sooner or later, emerge.
Simple Trading Rules
1. When the 39 MA is moving up buy when the 3 MA crosses up over the 13 MA. and/or when the 3 MA crosses above the 39 MA.. When the 13 MA crosses above the 39 MA consider adding to your long position. Exit and stand aside when the 3 crosses back below the 13 MA..
2. When the 39 MA is moving down sell short when the 3 MA crosses below the 13 MA. and/or when the 3 MA crosses below the 39 MA.. When the 13 MA crosses below the 39 MA consider adding to your short position. Exit and stand aside when the 3 MA crosses back up over the 13 MA.
3. Only initiate trades in the opposite direction of the intermediate trend when the 3 MA crosses above or below the 39 MA, preferably after the 39 MA has already changed direction.
4. This 3:13 MA crossover will keep you trading in the trend with only a small lag and on the sidelines during corrections. The lag only becomes more substantial at reversals of the intermediate trend (a 3:39 crossover), a small price to pay at these uncertain times of trend transition.
Aids to Interpretation
· When the 3:13 crossovers occur at some distance from the 39 MA then you are 'likely' dealing with a short term correction (even though it can be substantial) to the 39 MA..
· If the 3:13 & 39 MAs are close and converging before crossing over you are 'likely' dealing with an intermediate (or significant) correction of the trend or reversal.
· 'Likely' means probable not 'you can bet the farm on it' surety. There is no sure thing just as there is absolutely no free lunch.
Use FXCM which isn't a Market Maker and will not steal your money. Consider Mirror Trading. FXCM holds free training classes monthly. The Italian Index is profitable to use and works well with Double Bollinger.
A Simple Moving Average Trading System (SMA)
3x13X39 = Profit
I want to address a question commonly asked by those who are computer phobic, techno confused and Internet allergic, "What is a good simple system to follow, to get in and out of markets?".
Most people are comfortable with the herd. Such good folk are most comfortable with a trend following system. I am ill at ease in a pack and downright anxious when everybody and his dog are comfortably saying the same thing. I am, therefore, drawn to oscillators to anticipate the end of popular perception. Oscillators also give an insight into the cyclical nature of markets. Being obsessed with market structure and somewhat compulsive in my quest for efficiency my ways are not 'comfortable' for many. So to get back to basics for those not able or willing to devote the time to market study that I do here is a way to handle your market study and trading decisions.
Remember the numbers 3 x 13 x 39 = Profit
Simple daily moving averages of 3,13 and 39 can keep you in and out of markets fairly efficiently and profitably, (in any time frame actually). I will show you how.
Some basic principles to hang on to are:
· The market moves in long (secular) trends which may last years, e.g. the present equity bull market dates from 1982.
· Intermediate trends lasting many months, even a couple of years or so.
· Short term trends lasting weeks or months.
· Trade intermediate trends in either direction.
· Trade short term trends only in the direction of the intermediate trend.
Proxies:
· 3 Day MA - a proxy for price
· 13 Day MA - a proxy for the short term trend (a moving trend line)
· 39 Day MA - a proxy for the intermediate trend (a moving trend line)
· 40 week, 200 day MA - a proxy for the secular trend (a moving Trend line)
The Basics of MAs
MAs lag market reversals at tops and bottoms, the larger the MA the longer the lag period, the shorter the MA the shorter the lag but the more frequent the whipsaws. MAs work well when markets trend but get frequently whipsawed when they are in a range.
Therefore, trade trends with the MAs but do not trade ranges using MAs. Just stand aside and be patient until a new trend emerges.
The intermediate trend is in the direction of the 39 MA which acts like a moving trend line. If the 39 MA is pointing up then the intermediate trend is up, if down the trend is down. If the 39 MA is horizontal the market is in a range, from which a trend will, sooner or later, emerge.
Simple Trading Rules
1. When the 39 MA is moving up buy when the 3 MA crosses up over the 13 MA. and/or when the 3 MA crosses above the 39 MA.. When the 13 MA crosses above the 39 MA consider adding to your long position. Exit and stand aside when the 3 crosses back below the 13 MA..
2. When the 39 MA is moving down sell short when the 3 MA crosses below the 13 MA. and/or when the 3 MA crosses below the 39 MA.. When the 13 MA crosses below the 39 MA consider adding to your short position. Exit and stand aside when the 3 MA crosses back up over the 13 MA.
3. Only initiate trades in the opposite direction of the intermediate trend when the 3 MA crosses above or below the 39 MA, preferably after the 39 MA has already changed direction.
4. This 3:13 MA crossover will keep you trading in the trend with only a small lag and on the sidelines during corrections. The lag only becomes more substantial at reversals of the intermediate trend (a 3:39 crossover), a small price to pay at these uncertain times of trend transition.
Aids to Interpretation
· When the 3:13 crossovers occur at some distance from the 39 MA then you are 'likely' dealing with a short term correction (even though it can be substantial) to the 39 MA..
· If the 3:13 & 39 MAs are close and converging before crossing over you are 'likely' dealing with an intermediate (or significant) correction of the trend or reversal.
· 'Likely' means probable not 'you can bet the farm on it' surety. There is no sure thing just as there is absolutely no free lunch.
malaspina
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Learn how to read market price action and volume, this is the best way to be in sync with price movement.
I learned to understand price charts by observing the stock market trends and turns and predict if they have imbalance of supply and demand. Investopedia, ChartPattern, StockTrader and The Simple Dollar have detailed information on how to get clues whether a share price will go up or down.
timsk
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You've both got it very wrong for lots of reasons. Top of the list is that the OP hasn't made any mention of forex, so, to point him in that direction without having considered other markets is doing him a great disservice. In fact, he makes reference to share prices which indicates that he's not interested in trading forex. Secondly, BabyPips is heavily biased towards all things forex and actively wants people to trade that market, without informing them of its many downsides. Thirdly, as I made clear in my previous post, to gain a broad understanding about trading in general, the OP has everything he needs right here on T2W and has no need to look beyond the virtual walls of this forum. Kindly refrain from directing members away from T2W unless other sites offer something we don't.
Tim.
philhackett
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I have used my SMA 3x13x39 system for many years trading the Italian 40 index with FXCM.
A Simple Moving Average Trading System
3x13X39 = Profit
I want to address a question commonly asked by those who are computer phobic, techno confused and Internet allergic, "What is a good simple system to follow, to get in and out of markets?".
Most people are comfortable with the herd. Such good folk are most comfortable with a trend following system. I am ill at ease in a pack and downright anxious when everybody and his dog are comfortably saying the same thing. I am, therefore, drawn to oscillators to anticipate the end of popular perception. Oscillators also give an insight into the cyclical nature of markets. Being obsessed with market structure and somewhat compulsive in my quest for efficiency my ways are not 'comfortable' for many. So to get back to basics for those not able or willing to devote the time to market study that I do here is a way to handle your market study and trading decisions.
Remember the numbers 3 x 13 x 39 = Profit
Simple daily moving averages of 3,13 and 39 can keep you in and out of markets fairly efficiently and profitably, (in any time frame actually). I will show you how.
Some basic principles to hang on to are:
· The market moves in long (secular) trends which may last years, e.g. the present equity bull market dates from 1982.
· Intermediate trends lasting many months, even a couple of years or so.
· Short term trends lasting weeks or months.
· Trade intermediate trends in either direction.
· Trade short term trends only in the direction of the intermediate trend.
Proxies:
· 3 Day MA - a proxy for price
· 13 Day MA - a proxy for the short term trend (a moving trend line)
· 39 Day MA - a proxy for the intermediate trend (a moving trend line)
· 40 week, 200 day MA - a proxy for the secular trend (a moving Trend line)
The Basics of MAs
MAs lag market reversals at tops and bottoms, the larger the MA the longer the lag period, the shorter the MA the shorter the lag but the more frequent the whipsaws. MAs work well when markets trend but get frequently whipsawed when they are in a range.
Therefore, trade trends with the MAs but do not trade ranges using MAs. Just stand aside and be patient until a new trend emerges.
The intermediate trend is in the direction of the 39 MA which acts like a moving trend line. If the 39 MA is pointing up then the intermediate trend is up, if down the trend is down. If the 39 MA is horizontal the market is in a range, from which a trend will, sooner or later, emerge.
Simple Trading Rules
1. When the 39 MA is moving up buy when the 3 MA crosses up over the 13 MA. and/or when the 3 MA crosses above the 39 MA.. When the 13 MA crosses above the 39 MA consider adding to your long position. Exit and stand aside when the 3 crosses back below the 13 MA..
2. When the 39 MA is moving down sell short when the 3 MA crosses below the 13 MA. and/or when the 3 MA crosses below the 39 MA.. When the 13 MA crosses below the 39 MA consider adding to your short position. Exit and stand aside when the 3 MA crosses back up over the 13 MA.
3. Only initiate trades in the opposite direction of the intermediate trend when the 3 MA crosses above or below the 39 MA, preferably after the 39 MA has already changed direction.
4. This 3:13 MA crossover will keep you trading in the trend with only a small lag and on the sidelines during corrections. The lag only becomes more substantial at reversals of the intermediate trend (a 3:39 crossover), a small price to pay at these uncertain times of trend transition.
Aids to Interpretation
· When the 3:13 crossovers occur at some distance from the 39 MA then you are 'likely' dealing with a short term correction (even though it can be substantial) to the 39 MA..
· If the 3:13 & 39 MAs are close and converging before crossing over you are 'likely' dealing with an intermediate (or significant) correction of the trend or reversal.
· 'Likely' means probable not 'you can bet the farm on it' surety. There is no sure thing just as there is absolutely no free lunch.
