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Where to start?

Posted: Wed Nov 26, 2008 6:48 am
by doogie888
I've read some of the thread on babypips, but also mixed in with crap from other posters. And I see a ton of indicators, which don't really have an explanation for many of them.

Is there a starter thread besides babypips? Or anything?

Posted: Wed Nov 26, 2008 6:15 pm
by eudamonia
doogie,

Assuming you know your Forex (or other market) basics I would read the following threads at Kreslik:

Never Lose Again

Yes, Avery has provided many indicators for several different platforms. Many of them do the same thing but show it a different way. My suggestion to you is pick a platform if you haven't already and check out the following indicator:

1) TRO_SR2 (May be named slightly different depending on platform). This indicator is blue dots below price candles and red dots above price candles.

Open a chart (candles not bars) with the TRO_SR2 on the 60 min timeframe.

When you observe 3 candles of the same 60 min bar color then wait to see if the next bar is of the opposite color (if it isn't then keep waiting). When you see the next bar of the opposite color then wait to see a 20-30% (nothing magical about this number just a rough number) retrace of the last 60 min bar in the original direction. Trade in the direction of the current 60 min bar. The TRO_SR2 can help you spot the bounce (just a visual aid).

Trade this with a 2:1 risk to reward ratio and base risk on the high (for a short)/low (for a long) of the bounce. Hence if on the GBP/JPY risk is 20 pips then your target should be 40 pips. Worried about surrendering pips back to the market? Move your stop to BE when you are 20 pips in the good. This method has a better than 50/50 win ratio and a 2:1 risk to reward ratio - easy money. All you gotta do is have the patience to follow it. As Avery says - don't let this be any more complicated than it has to be.

Still not sure what this is all about - check out the thread I posted above. It's long (and goes into other indicators/methods - ignore those) but worth the read.

Best of luck.

Edward

Posted: Wed Nov 26, 2008 6:51 pm
by doogie888
Thank you so much. Just one question, not sure if you didn't say or I just didn't understand, but what do you set your T/P and T/L at?

Posted: Wed Nov 26, 2008 7:23 pm
by eudamonia
doogie,

Re-read the 2nd the last paragraph. You want your stops and targets to be dynamic. In other words - pay attention to what the market is telling you. You don't set a 5 pip stop loss when volatility is showing that the average bar is 100 pips wide.

Also you want your reward to be commensurate with your risk. So if you risk 20 pips you want to make at least 2X that amount (i.e. 40 pips).

Edward

Posted: Wed Nov 26, 2008 7:25 pm
by doogie888
Okay, thank you very much.

Posted: Wed Nov 26, 2008 8:14 pm
by doogie888
I'm using metatrader and I'm not too sure what indicator it is? I can't find it.
Thank you.

Posted: Wed Nov 26, 2008 11:02 pm
by eudamonia
doogie,

http://kreslik.com/forums/viewtopic.php ... c&start=30

Eighth post down. You may need to turn off the fib plots if they confuse you.

Edward

Posted: Wed Nov 26, 2008 11:06 pm
by doogie888
Oh okay, it shows S/R lines, I wasn't sure. I thought maybe it notified you if there were 3 candles in a row.