Fajarini

Picture can tell thousand words. Watch carefully chart 1

while price pattern was forming on Apr 30, 2010.

It seemed likely to be ideal triangle ABCDE with one long

wave of A and wave E didn't exceed end of wave C.

Along with this wave notation, short entry would be made

on the break of wave D.

[see chart 1, before proceeding]

But unfortunately, it turned out to be wrong wave labeling

on chart 1, as you can see it again on chart 2 after the price

moved further on May 14, 2010. Despite wrong reading on

chart 1, the short trade decision didn't collide against the new development of chart 2.

This is the rare moment while you still make profit despite

wrong reading of Elliot Wave on chart.

[see chart 2]

Q: By showing this example, you mean that Elliot Wave

trading method is easier to squeeze for profit?

A: No. It is very difficult to trade profitably by applying

Elliot Wave Method at beginning stage.

Q: What is the secret to trade profitably with Elliot Wave

Method?

A: There is no secret within every single trading method.

You need to know your own personality and find trading

methods out there that fit with your personality.

Q: Why you make things more complicated by first knowing

personality, that is nothing to do with profit?

A: You need to be in comfort zone when making trade decision.

Q: Is there any method that can lead me to my comfort zone?

A: You should acquire confidence on your trading method.

Q: How can I enhance my confidence toward my trading method?

A: This statement explains everything "Practice Makes Perfect".

Your long experience is the only way that leads to enhance

your confidence toward your trading method.

http://i720.photobucket.com/albums/ww202/Fajarini/Indo-Investasi/20100516-GBPUSD-H4.jpg

http://i720.photobucket.com/albums/ww202/Fajarini/Indo-Investasi/20100516-GBPUSD-H4-Full.jpg

http://i720.photobucket.com/albums/ww202/Fajarini/Indo-Investasi/20100516-GBPUSD-D.jpg

Try to make prediction by applying Wave Principle from Elliot Wave.

Please apologize if it will have gone wrong.

http://i720.photobucket.com/albums/ww202/Fajarini/Indo-Investasi/20100426-EURUSD-H4.jpg

http://i720.photobucket.com/albums/ww202/Fajarini/Indo-Investasi/20100426-EURUSD-D.jpg

As a novice trader, I guarantee you will certainly get frustrated when applying wave analysis in trading forex. The main reason is that analyzing wave pattern in live trading needs sufficient knowledge of waves because while in forming, it will reshape over and over again. So you need to have appropriate knowledge about alternative wave pattern. Our perception can be easily led to the changing situation between wave degree, such as Intermediate to Minor or straight to Minute degree in live trading.

Depend purely on Elliott Wave Analysis will put you into devastation, even though you practise strict money management.

But any way I like Elliot wave analysis because it fits into my personality. I don't need to baby-sit the computer and monitoring the trade.

I just put in the limit order along with SL and target price and leave it. So there is why my analyzing time frame begin from monthly chart going to weekly chart and then to daily chart, then to H4 and finally H1. Sometimes I ignore H1.

Rate of accuracy of predicting the market from Elliot Wave can be enhanced if you teamed it up along with your favourite indicator. Don't use too much indicator (max 2) as it will clog you in the middle of confusion before you get lost. Knowledge of candlestick formation is also useful to raise your predicting accuracy rate.

Re: Why Not to Trade MA Crossovers..

Clarence Chee from T3B Forex introduces modified MA in his

trading system especially PIPS Intraday Trading System.

He calls it HMA (Hull Moving Average). It is designed to be

used with other trend identification indicator and to be applied

on H1 time frame. It seems quite succesful.

Just around the other corner, I prefer to study Price Action

rather than depending on indicators. Price action gives you first hand

info about what is happening in the market before to be translated

into indicators.

Since I don't like to baby sitting the computer's monitor, I practise

swing trading and go in depth with studying price action. Indicator

plays a very minimal role in my trading decision. I just use indicator

to gauge the short term and long term trend. My entry and exit points

are never based on indicators.

It's just personal preference. Nothing to do with right or wrong.

Trading is a probability game.

Re: Scalping...is this a waste of time or can you....

scalping needs very high level of skill, if you know HOW, you will get what you want! After god will.

 

Best,

I think you are absolutely right. It needs very high level of skill.

For me, scalping doesn't meet my personality. I prefer to trade based

on swing trading. It means risk a lot more pips than scalping. That is why

risk to reward ratio is very important to me every time I consider placing

trades.

Re: Fibonacci Stategy

Which are the most common indicators used in conjunction with the Fobonacci Strategy?

In my opinion, Fibonacci Strategy is well suitable with pattern analysis and wave analysis.