What Should one be doing when observing the Markets

Harry Sanborne

Newbie
7 0
Hello guys.

I'm after some general and specific help in what I should be doing when watching the markets.
Until recently i was just staring at charts blindly, not knowing what to do and what I should be making a note of.
I contacted a member of this site and he gave me some advice. He said that at most prop firms they get the grads to concentrate on the Indices/Equities rather than Forex as it's easier to 'cut your teeth' on.

So I have chosen to look at these Indices:
S&P 500
Dax
FTSE

The advise I have been given is to make a note of what each market does in and around major levels of Support & Resistance.

Also been told to drop down from the hourly time-frame to the thirty minute and fifteen minute time-frame, because I am only watching three markets and I won't see a lot of patterns, setups and potential trades on the hourly.

In terms of what to look out for, I've been told to look for breakouts with a rounded re-test, bear & bull flags, double tops and bottoms, that sort of thing.

Does anyone have anything else to add to what I should be noting down when observing a market such as key times in the Europe and US sessions, morning trends or afternoon trends, correlations with other markets, carryover from the Asian session to the European session and from European session to the US Session.

Is there any specific tips like pre-lunch time rallies or significant turning points in the day whether in Europe or US session?

Periods of market rest, consolidation.

If you have any comments, or know of resources, websites on market observation/analysis and what you did or found helpful, please share with me and anyone else who may read this.

Thanks,
Harry.
 
Last edited:

shadowninja

Legendary member
5,524 643
Too much for a newbie.
1) Learn to identify the long term (read: daily charts only) trend on all sorts of things.
2) Try to figure out why it's turned in the past eg it was zigzagging downwards for months then it turned up a bit, then continued downwards.
3) Watch just one instrument whether it's FTSE, Gold, Sheep's ****. Watch how it breaks through support or resistance before obeying it or the opposite. Learn the characteristics. Avoid volatile markets. Noobs love it; they think "Ooh, I could have made 500 pips on that move". Yeah, right, you'd be trading the wrong direction and have kept moving your stop back.

I'll bet £20 you ignore all that, and head to the 1 minute charts in a day or two, then post another thread saying you lost £1000 trying to scalp GBP/JPY.
 

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