I felt it was time that i shared my trading method with everyone here. To be honest, A video would be much better than a post for this, so maybe i'll put one up sometime. But for now this will have to do. I apologize if this method has already been developed by someone else, but i came up with this on my own and without any help. With all that said, lets start with an explanation of why i trade the way i do.
What is a trend?
A trend is when a single currency goes up or down over an extended period of time. I see alot of people on forums trading based on what a single pair does such as AudUsd or what have you. So for instance, if the AudUsd was in an upward trend....is the Aussie Going up?....or is the Dollar going down?.... Do you see what im trying to say? If you have All of the Aussie's Pairs on one profile and all of the Dollar's Pairs on another profile and compare the two sets of charts you would easily be able to see which currency is causing the trend on AudUsd. In this particular case...its the Aussie!
I found a trend!
"Well thats great.... but why should i care which currency is causing the trend?"
Well.... so you can know when to get out of the trade! Getting into a profitable trade is easy....but knowing when to get out is the hard part. Too many traders hold onto their trades for far too long in hopes of more profit.... this is not a good way to trade. If you could see with your own eyes, the deterioration of the trend you are currently in... you should have no problem whatsoever closing the trade with your profit in hand!
"Well alright then... Sounds great but...what should i look for in order to know when a trend has ended?."
Divergence!! If a trend on the AudUsd is happening because all of Aud's pairs are going in the same direction.... the end of the trend should be when those same pairs are going in different directions ( up down and sideways ). This signifies that Aud no longer has control over the trend ( since the pairs are going in different directions now ) Aud is no longer strong enough to keep the trend going...at least for now.
Time to get outa this trade! 30 pips profit, yay!
I only use 1 indicator for all my charts "Heiken-Ashi" This is the colored candles you see on the chart, its a better way of charting candles ( at least i think so ). Google it and give it a try.
" Okay Mr.Trading Guru... Since your method is soo awesome like you say... you must be a billionaire right?..."
Hehe... no im not. I havent made any money from trading this method yet.
"Well why not?...dosnt your method work?..." Yes...Every time!...I can detect all kinds of trends with this method.... long profitable trends...AND short non-proftiable ones as well!! This method is a trend detector for sure!... Its those short non-Profitable trends that are keeping me from trading this method with real money. Im still trying to find a way of filtering them out. "well okay... the trade you posted here in this post was pure Luck!...Bet you can't find another trade like that again!..."
Oh?...Well, shortly after i closed that Aud trade i found this....
What do you think will happen to this trade?... Will it be a long and profitable one? or a short and unprofitable one?... (in case any of you were wondering, it was a short /unproftiable trend)
I just wanted to say to everyone, thanks for taking the time to read this post. I know i dont frequent ircForex but i LOVE this site! ^_^ I really do. Ive been a trader in progress for the past 2 and a half years ...full time!.. so that has to count for something right? Anyway, i just wanted to share my progress with you all and hope to have lots of feedback. See you all in the chat room!
I found a trend!
Time to get outa this trade! 30 pips profit, yay!
