Forex trading with only one candlestick, sounds funny right? However, after reading this article, you will find it very reasonable.
The first thing, I have to say right away, I have met a lot of traders who only trade with 1 candlestick, and among them there are also people who are very successful with this strategy.
The One candlestick mentioned here is not just analyzing 1 candle enough to have a trading decision, but here is talking about: JUST DEFINED EXACTLY 1 NEXT CANDLESTICK - YOU ARE ENOUGH TO WIN FOREX MARKET.
IT'S TRUE !
I explain in detail as follows:
- With one candlestick of the M1 timeframe, the average price volatility is only about 1-2 pips, if you win 1 M1 candle, minus the spread, you only have a draw or a loss.
- With one M5 candlestick, the price fluctuates on average 2 - 4 pips, you can hardly gain an advantage, maybe you will draw if you correctly predict one M5 candlestick.
- ......
- With one D1 candlestick, the average price fluctuates about 50 - 80 pips.
- .....
- But with 1 candlestick of the MN frame, the average price fluctuates 400 - 700 pips, if you correctly predict 1 MN candlestick, at least you will earn a few hundred pips. So 1 month earn 1 candle with a profit of a few hundred pips, so have you become a successful trader? Let's try to find out how many traders earn a few hundred pips a month regularly.
A trader's job is to try to simplify things. Instead of trying to find a long wave, look for a candlestick on a larger timeframe. For example, instead of looking for a bullish wave to buy on on the M15 timeframe, it's easier to find a white candlestick on the D1 timeframe. First guess if the candlestick will be white (up) or black (down), then look for entry zones on smaller timeframes to optimize profits.
SO WHAT IS THE WORK OF A NEW TRADER:
- First, understand the structure of candlesticks (there are many on google with just 1 click).
- Then learn about popular candlestick patterns, and highly reliable ones.
- Choose a few favorite models, which you find the most reliable, with the highest accuracy.
- Apply to predicting, and start FINDING THE NEXT ONE CANDLESTICK, the time frame depends on how many pips the profit target wants to earn for 1 trade to choose the right one (I see short-term trading should choose from H1 and above)
- When analyzing and predicting a candle of a large timeframe, it is necessary to combine analysis on a smaller timeframe to detect problems such as trend, resistance, support, volume... to have a reasonable entry and exit point, and at the same time, you must refer to a larger timeframe to filter noise for the signal.
- Test - test - and test continuously... by analyzing the losing order to find the wrong point to avoid, analyzing the winning order to find the right point to promote.
- After completing the testing process, represented by a growing account and stable profit, then start thinking about opening a real account at reputable Forex Brokers to start picking sweet fruits.
Best regards,
No comments:
Post a Comment