Well, I’m back from lunch. Yes, sure enough that subject came up again and yes, sure enough I got the familiar “look” from Bill. Well I suppose I can’t help being crazy, you know – you just have to be crazy to seek an occupation that most folks fail at I suppose. But I’m a Thursdays child, and I’ve never taken the “easy” route, nor do I give up easily. As I told him today, “…yes I know that most people wipe out their accounts all the time; however, a lot of people not only make their living off of this thing we call Forex trading, but they make a darn good one!” What we do is based on numbers and probability, not chance. Chance is for the gamblers. Games are for gamblers. This just isn’t gambling, period.
Another thing I find encouraging is that we are not alone in this endeavor. Trading groups (like Slick Trade) are invaluable for the support and opportunities they provide their members. Now I know that for the most part people on the outside will continue “not” to get it, but that’s okay. Don’t let yourself get frustrated, just chin up and think about what your Foltron EA is doing at this very moment. Should be guaranteed to bring a smile to your face.
Now I did want to take a moment to quickly share with you one of my favorite chart analysis tools, which is the Envelopes indicator. This comes standard with MT4 and can be found under Indicators – Trend – Envelopes. On my charts I use the following settings – Period: 20, Shift: 0, MA method: Simple, Apply to: Close, Deviation: 0.10%. See the chart below
Note that the red and blue bands stay approximately 20 pips apart from each other. Now as you follow price movement you’ll see that the market is in a slight uptrend leading to consolidation; when price is hitting the lower band it often is good for a 10 to 20 pip move towards the upper band. The same with downward price action, where price breaks through or touches the upper band it will often come close to, or penetrate the lower band, often good for 10 to 20 pips.
When price is outside the envelope it can bounce off of it instead of going through it, or it could just hover outside of it, eventually heading back toward it. I do find this a useful tool you and used in conjunction with other indicators (like supply demand) for analyzing a trade.
Here the RED S&D zone + the envelope is a strong indicator of resistance at the .7130 price point. The green (bullish) candle touches the blue line near the Supply & Demand zone and reverses direction. 10 pips to go to the red line!
Just something interesting I thought you might like to try out and learn from.
And speaking of learning, I’ve just discovered a bunch of new EA’s and features added in this week’s Slick Trade update. Now I’ve got my work cut out for me for the next few days trying all this stuff out. Those of you new to trading who are reading this might well consider trying out Sapphire membership in Slick Trade. New and plentiful strategies, expert advisors, training materials and more are just waiting for you – give it a try, you’ll be glad you did! I know I am because this group gives you a lot of bang for your buck, which I’ll write more about next time. Until then have a great week and, as always, thanks for reading.
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