(How To Trade) Diamond Pattern or ABCD Pattern
Yes, possible 4 obvious trades on hourly chart of GBPNZD on Thursday (two sells and two buys), you need to ask yourself HOW could you have entered these trades with right risk management related to- lot size, entry price, stop loss and target? Diamond Pattern is a harmonic pattern.
What do you always need to be aware of is bigger picture, like the following: You should use support and resistance and Fib ret. tool in trading.
- What is GBPNZD doing on higher time frames, earlier this week, etc...
- What is GBPNZD current ADR?
- What pair are you trading?
- Any news events that have or will be happening? Noted: on chart two new events that actually were part of revering short term trends.
- What is current price? any psychological numbers around current price? triple 000 or 500 numbers on charts?
- What are sessions currently open? With GBPNZD on left part of chart is when Sydney is open, so AUD and NZD are being traded - what is price action doing?
- What is time in session? you would need to know exact time where currency is being traded: Convert Sydney time to your time, Convert Tokyo time to your time, Convert London time to your time and Convert New York time to your time.
Trading Forex is really not difficult, but you need to always with with big banks and not trade against them. You need to be able to understand candlestick language and what each one is telling you in the bigger context of price action. This is all about probabilities and if you employ a certain strategy or edge- how many times out of 100 trades would you win? not gambling!!!
Really, look at hourly charts and higher ones of any pair- put in the homework, take notes and be one with Forex- then you will succeed.
What do you always need to be aware of is bigger picture, like the following: You should use support and resistance and Fib ret. tool in trading.
- What is GBPNZD doing on higher time frames, earlier this week, etc...
- What is GBPNZD current ADR?
- What pair are you trading?
- Any news events that have or will be happening? Noted: on chart two new events that actually were part of revering short term trends.
- What is current price? any psychological numbers around current price? triple 000 or 500 numbers on charts?
- What are sessions currently open? With GBPNZD on left part of chart is when Sydney is open, so AUD and NZD are being traded - what is price action doing?
- What is time in session? you would need to know exact time where currency is being traded: Convert Sydney time to your time, Convert Tokyo time to your time, Convert London time to your time and Convert New York time to your time.
Trading Forex is really not difficult, but you need to always with with big banks and not trade against them. You need to be able to understand candlestick language and what each one is telling you in the bigger context of price action. This is all about probabilities and if you employ a certain strategy or edge- how many times out of 100 trades would you win? not gambling!!!
Really, look at hourly charts and higher ones of any pair- put in the homework, take notes and be one with Forex- then you will succeed.