Struggling newbies... I think I can help put you on the right track to consistent profitable trading. Criticism often times dominates in forums and rarely provides solutions if this has been your experience let's hook up and discuss my "Power of The Relative Strength Index" strategy.
Why do so many struggle in the beginning? Well, that answer depends on who you ask. I will tell you why I think so.
I believe the struggles are linked to rumors, over-trading, lack of technical analysis base and choppy markets.
Are you allowing news to dictate your decisions over technical analysis, are you trading large contracts, are you experiencing 100+ pip counter moves on regular basis? Timing entries is one of the most important aspect of trading... do you know how to buy a dip during bullish trends and how to sell into rallies?
Does any of this sound familiar?
Could you trade a indicator-free chart if you had to? (volume inclusion ok)
Once you gain a deeper understanding of the relative strength index (RSI) your trading success will improve.
READY NEWBIES! (what's about to be shared can be easily verified by simply studying charts)
"THERE'LL BE NO TREND WITHOUT RSI(9) FIRST GOING OVERBOUGHT OR OVERSOLD. REPEAT... THERE'LL BE NO TREND WITHOUT RSI(9) GOING OVERBOUGHT OR OVERSOLD. PRICE MOVEMENT SHOULD ONLY BE CONSIDERED STRONG WHEN THEY GO OVERBOUGHT/OVERSOLD; IT'S DURING THIS TIME YOU WANT TO LOOK TO PARTICIPATE, NOT BEFORE THEN".
Pullbacks follow overbought/ oversold conditions and it's these pullbacks you should make your focus; not breakouts which often times trap aggressive traders. CREATE YOUR SETUP TO COINCIDE WITH THIS CONCEPT.
For those whom want a suggested setup I'll offer one.
EMA20 / EM200 / RSI(9) / SLOW STOCHASTIC(14,3,3 OR 5,3,3 test to see which suits you best) / ADX(13) / PIVOT POINTS (DAILY PIVOTS for intraday traders and WEEKLY OR MONTHLY PIVOT POINTS for the longer term traders
Suggested Studies:
DOW Theory and Elliott Wave Theory. "Learn to trade only what you see and not what you hear"
Contract positioning (money management)
Patterns (very important)
Trend lines
Study your indicators
Closing comment:
Trading for the most part is waiting for the markets to get going and going alone with them. Calm markets are a traders enemy.
RSI will help you follow the markets (prices) via pullbacks and help you fade (counter-trend trade) trend exhaustions but you must first make sure you understand it. It's all gauging the power driving prices... LEARN IT WELL
GOOD TRADING
Why do so many struggle in the beginning? Well, that answer depends on who you ask. I will tell you why I think so.
I believe the struggles are linked to rumors, over-trading, lack of technical analysis base and choppy markets.
Are you allowing news to dictate your decisions over technical analysis, are you trading large contracts, are you experiencing 100+ pip counter moves on regular basis? Timing entries is one of the most important aspect of trading... do you know how to buy a dip during bullish trends and how to sell into rallies?
Does any of this sound familiar?
Could you trade a indicator-free chart if you had to? (volume inclusion ok)
Once you gain a deeper understanding of the relative strength index (RSI) your trading success will improve.
READY NEWBIES! (what's about to be shared can be easily verified by simply studying charts)
"THERE'LL BE NO TREND WITHOUT RSI(9) FIRST GOING OVERBOUGHT OR OVERSOLD. REPEAT... THERE'LL BE NO TREND WITHOUT RSI(9) GOING OVERBOUGHT OR OVERSOLD. PRICE MOVEMENT SHOULD ONLY BE CONSIDERED STRONG WHEN THEY GO OVERBOUGHT/OVERSOLD; IT'S DURING THIS TIME YOU WANT TO LOOK TO PARTICIPATE, NOT BEFORE THEN".
Pullbacks follow overbought/ oversold conditions and it's these pullbacks you should make your focus; not breakouts which often times trap aggressive traders. CREATE YOUR SETUP TO COINCIDE WITH THIS CONCEPT.
For those whom want a suggested setup I'll offer one.
EMA20 / EM200 / RSI(9) / SLOW STOCHASTIC(14,3,3 OR 5,3,3 test to see which suits you best) / ADX(13) / PIVOT POINTS (DAILY PIVOTS for intraday traders and WEEKLY OR MONTHLY PIVOT POINTS for the longer term traders
Suggested Studies:
DOW Theory and Elliott Wave Theory. "Learn to trade only what you see and not what you hear"
Contract positioning (money management)
Patterns (very important)
Trend lines
Study your indicators
Closing comment:
Trading for the most part is waiting for the markets to get going and going alone with them. Calm markets are a traders enemy.
RSI will help you follow the markets (prices) via pullbacks and help you fade (counter-trend trade) trend exhaustions but you must first make sure you understand it. It's all gauging the power driving prices... LEARN IT WELL
GOOD TRADING