Quote:
Originally Posted by tom64
I just finished 1st power course lesson offered by fxcm. And now I understand what you are saying. The course explained trend lines, fib, RSI, and Bollinger bands I learned a lot of great stuff. Your link was good but I decided that bollinger bands are the best because they involve statistics. It makes the entire trade feel more analytical by involving statistics. Do have any more suggestions that involve more analytical tools like bollinger bands.
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Price bars are where the action is...... and their relationship to the prior bar... ie, the open of this bar compared to the close of the prior bar, who was in control on this bar...bull or bear..... higher highs, higher lows. that indicates an uptrend... and lower high, lower low indicates a downtrend....
All of the indicators and tools are dependent on highs and lows.... from the individual bars..
Analysis has to be focused on the bars themselves......, my recommendation would be a thorough knowledge of Candlesticks. I am not so sure re Bollinger Bands as I have not studied them except to see compression periods with a view to expansions or breakouts.
Experience is going to be your best instructor, draw lines on charts, make theories and test them, make pics of charts, label them, keep for future reference....
My favorite indicators are stochastics and Macd, I have found some success with those.
I use a couple moving averages to show me trend and momentum (stochs do that also).
Again.. marking up charts is very much worth the time and effort...
My suggestion to you is to learn one setup for entry, master that one setup...... and use it exclusively until you can do it almost without seeing the chart (lol)....... keep your approach limited.. too much knowledge will confuse you, too much analysis will allow you to analyze...... and it will also destroy your trading....
Again. one setup........ they appear on all time frames......
Good luck...!!