Ahhh… After playing with different timeframes. I pretty much got the idea at what timeframe I’m comfortable with. The idea is this, it should match your personality. If you’re a full time forex trader who don’t want to miss every good trade that may come by, be a day trader that trades smaller timeframes (5 minute charts to 1 hr ). If you’re a more long term and just wants to take a time off after placing a trade consider becoming a swing trader (days to weeks).
I say this because I kinda mess up the timing of entry and exit. I hold positions longer even though im in the 5 minute chart, resulting in losses. I tend to close position on a winning trade too early on a longer chart (days) and the result, I don’t earn much money as I have to.
So knowing the right mix would give you the idea how long should you hold trades.
There are lots of ways to trade forex. And I have tried most of the indicators out there. Some of them work, some of them don’t. Some did work, but I’m not particularly comfortable using. And thru the years, I came to settle down with candlesticks and ichimoku.
Ichimoku or short for Ichimoku Kinko Hyo is a japanese indicator that tries to complement where the candlesticks left of. When using candlesticks, it tells us the story what happened during the trading day, but there’s something lacking when you look at the charts as a whole. Where are the support? Where are the resistances? Where is the trend going? Is it going strong or weak? What is the future of the trend? Ichimoku as its name implies, is a “one glance” indicator. When looking at it once, you’ll immediately know where are the important levels are.
In ichimoku, you will know where the resistance and support are. The Japanese who made the indicator believed that support and resistances are not flat lines. They vary wherever the price goes. It can be strong or weak, as indicated by a big or small cloud. And with ichimoku, you’ll also have an idea of the “future” with its future kumo cloud.
If all these things sounds confusing to you at first, bear with me. During the course of the following weeks, I’ll teach you how you could harness the power of this great indicator and hopefully share to you my knowledge on how to use them. You will know why I started to love this indicator.
So without further ado, I welcome you to the “How to Trade Forex with Ichimoku” series.