need to know(forex)

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redheart

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hi all, i joined this community 2 days ago, it's excellent.
i've been trading on a demo for a week now using fxcm and marketscope charts.
is it possible to trade using a macd and rsi indicators only?
are there any better indicators for a day trader?
has anyone been trading according to the morning brief signals posted here is it reliable?
i would appreciate it if anyone could advise me
yours in forex
south african
 
Greetings. I trade with use only one indicator MACD. Oscilators give many false signals. Trade only in a direction of the tendency. Analyze and make decisions itself. Without helps and another's signals. There will be more sense. I am sorry for my English.
 
redheart said:
hi all, i joined this community 2 days ago, it's excellent.
i've been trading on a demo for a week now using fxcm and marketscope charts.
is it possible to trade using a macd and rsi indicators only?
are there any better indicators for a day trader?
has anyone been trading according to the morning brief signals posted here is it reliable?
i would appreciate it if anyone could advise me
yours in forex
south african
Click to expand...

The best indicator to use is the Bollinger band, but not with the conventional setting.
Try putting in 40/0.3.
When currency pair trades above band - go long....use bottom of band for stop loss.
Go short when pair trades below band and use top band for stop loss.
Works on most time fraims .....use daily to tell you which trade direction is in play and follow 15 minute each time you get that particular signal.
 
hi redheart,

too many people give indicators such as MACD RSI a bad name, and i can see why they are not for everyone, but i have to say after several years of consistently losing money i have developed a system using MACD and RSI combined with a moving average crossover and i am consistently profitable, i havent worked out exactly what my winning percentage is but it is easily above 70%, i have a good money management system which means my winners are far greater than my losing trades and now trading has taken on a whole new meaning, i loved trading even when i was losing money day in day out and it feels even better when you make money.

Nothing is perfect however, be very wary of periods of low volatility because there are few systems that make money in these conditions, you are better off not going near the market unless you are a market maker. How do you know when you are entering a period of low volatility? There is no reliable answer in my opinion unless you have a crystal ball, nobody knows what will happen next, we just use our experience and indicators to tell us the probability of an event happening, and in some cases evidence that it has started to happen, this just comes with experience.

Using just RSI and MACD you will never pick the tops and bottoms of markets because indicators DO lag, however they are a good place to start analysing the market and if you build a system around them you will catch the bulk of a trend, provided the market is trending of course ;-)
All the best,

Tom
 
Well

Hello, MACD can be fine, however I'd recommend that you try a few more as well, and see what they look like on different time scales, back test a couple that you find good. But as a basis you should look at support and resistance levels, as well as in what direction the trend is currently going, both on different time scales. Also, a sound and disciplined money mgmt (cut losses, allow profits to run, maybe with a trailing stop) is crucial. If you can read the price action and act disciplined, the issue of indicator is very...secondary, mostly a matter of taste.
 
redheart, I don't know why you would want to trade only with MACD and RSI. If you have developed a method/system using only these indicators and are happy with it, then that's ok, but don't force yourself to limit your options, try different things and see which you are happy with.

You say that you've traded a demo account for a week, how long have you been trading for (including paper trading) if it is just this one week, then don't expect results imediately. Trading is not an easy skill to learn, it certainly doesn't happen over night. The rewards are wrth the effort though, I'm only just beggining to get there after a couple of years of trading, and a year before that of reading many many books.
 
trader308 said:
use daily to tell you which trade direction is in play and follow 15 minute each time you get that particular signal.
Click to expand...

So you use the daily trend to only take the short term signals in that direction, is that correctly understood?

All the best...
CJ
 
yes

also lengthen your macd to include the daily as the slow ma.

short ma will depend on which cross you are trading.
 
DoubleSix said:
also lengthen your macd to include the daily as the slow ma.
short ma will depend on which cross you are trading.
Click to expand...

Hi,
you lost me there...care to elaborate.
thanks
 
DoubleSix said:
what do you want to know ?
Click to expand...

Don't quite understand by what you meant in the following

"also lengthen your macd to include the daily as the slow ma.
short ma will depend on which cross you are tradi
 
DoubleSix said:
?

what is it you dont understand ?

macd does not have to be 12;26;9
Click to expand...

lol..thanks, that I had figured....I was hoping for something more specific regards the optimal settings that you'd found from your experience with the different crosses. i.e do you really see a diff in the settings for say cable & Euro?
 
beauty, they say, is in the eye of the beholder.

and much the same with trading.

I dont believe there is an "optimal" setting - sounds like the silver bullet approach.

but I do believe there are differences between the market action of various currencies.

however, currencies paired withe U.S dollar ,although in different phases at any time, work quite well with the same macd.

But that does not hold true for other crosses.

you will need to experiment to see which shorter ma works best with your chosen pairs.
 
PS:
much depends on how often you want to trade.

you could start by using the normal convention of either half or quarter cycles.
so for 5 min chart, 144;288
or 72;288
etc
you need to find your comfort zone.


the signal line is too much a matter of personal preference.
 
and another 50+ today.

I wont keep on about it.

but you need to fit the macd to the security you are trading.

Edit
but dont change it - this is not a curve fitting exercise. !


signing off
 
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