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A Newbie needs help over here

Discussion in 'Beginners Bootcamp' started by onwukarisa, Mar 21, 2008.

  1. onwukarisa

    onwukarisa Private, 1st Class

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    Hi all ,

    Please i am a newbie to forex and will like to ask this question? Why do i see different information on when i use different time frames(i mean what i see in a 15mins chart is different from what i see in a 60mins/30mins chart) .

    Can one please advise me as the different info leads me into doing something i dont understand each time. am still doing demo. i loose and gain at times but want to actually understand why the gains/losses at times?

    Please Help
     
  2. Pharaoh

    Pharaoh Colonel

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    Assuming you are using bar or candlestick charts, a competed 60 minute candle/bar will be the sum of the 2 30 minute or 4 15 minute or 12 5 minute) bars/candles that correlate to that hour.

    Shorter time frames react more quickly. Longer timeframes show movement with less short-term "noise".
     
  3. Mugwump

    Mugwump Recruit

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    Styles

    What style you like to trade will determine which timeframe candlestick you use. If you use one indicator for a 15 min chart, it may 'tell' you something completely different from the same indicator on a 4 hour chart. Weird, but pick your poison. :)
     
  4. onwukarisa

    onwukarisa Private, 1st Class

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    style

    i dont understand what u mean by style
     
  5. Pharaoh

    Pharaoh Colonel

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    Style would mean method of trading. There are scalpers - they try to capture very small moves in very short time frames. There are position traders - they can hold trades for extended periods. Day traders tend to fall between these two.

    Also, there are news traders - try to catch the spike when news is released or else try to catch the retrace after the spike is over. Technical traders tend to ignore or avoid news events and focus on what the indicators on their charts tell them.

    There are successful and unsuccessful traders in each style of trading. First, find a trading style and method that suits you. Then work on becoming successful at it.
     
  6. onwukarisa

    onwukarisa Private, 1st Class

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    price and indicators

    thanks pharaoh for ur answers,please what happens when price is moving in opposite direction with your indicators. what do i do?
     
  7. Pharaoh

    Pharaoh Colonel

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    If price always moved in the direction predicted by my indicators, I would be very rich now.

    You need to find a set of indicators that gives you more than a 50% chance of being right (otherwise, why use indicators?). Combine this with looking for potential moves greater than the stoploss you plan to use, and then you have a system with the potential to make more money than it loses (ALL systems and trading styles will have losses).
     

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