Lets dive into the topic right away as seen on the topic !!
Look down !!
WOAH !! , what the heck are these ??
Well, to begin, lets dissect the elements on this Platform..
My Platform is loaded like ammo... uGH !! Sorry !! Its just simple to understand and mostly it is just choosing what currency to trade at the moment that I open MT4, rather than analyzing all the charts one by one..
So , What is Box 1 ??
The first thing and prime thing that we use mostly is the currency meter factor, which analyzes currency correlation with respect to one another currency. This meter checks 8 currency and gives the output value as seen on top. The strongest currency is shown on top and weakest is shown on bottom. The idea is BUY THE STRONGEST and SELL THE WEAKEST.. Thats the concept..We look into it first, the moment we open our platform, check the strongest and weakest currency.
moving to Box 2
So, what is Box 2 ??
The indicator is called Forex Insider , which shows live data from myfxbook community outlook http://www.myfxbook....mmunity/outlook
It shows the buyer to seller ratio - all of them are live data and no demo accounts, live accounts consisting of retail traders of various brokers across the world. So this gives a general idea of how the fxbook community behaves for particular currency pair. We can arrive at a conclusion in two manners by checking into it.
- by traveling alongside with the highest percentage on long or short side with respect to other retail traders
- by traveling opposite to the retail trader like institutions do ( which will be shown later below )
So here for example, as you see, EURUSD 47% (Short Traders) to 52% (Long Traders) | Volume and Number of positions are shown. So we can understand that EURUSD is on BUY mode as majority are on LONG side. ( This contains scalpers, swing traders and long term traders data as well.)
We will choose the methodology as in when it is required So , that's why we open 28 pair charts altogether in our MT4 rather than sticking to what currency usually we trade and like. Moving to Box 3.
Ahaa, we know what Box 3 is for .. don't even teach us that, you dumbo.
Ooops sorry, yea yea, it is just the news indicator, we just casually check for relevant news with respect to the currency if to take the trade or not at users style for news trading.
And Box 4 !!! Yeap, u see that, it is just the clutter of 28 pairs of currency minimized each currency wise with loaded template on it.
Stepping UP , here as follows directly to how to collect the right pair to jump in.
STEP 1 : First look upon the Currency meter Pro.
Identify the strongest and weakest currency upon it. Here we see , AUD being the strongest and (JPY,CHF,USD) being the weakest.
STEP 2 : Look into the market sentiment of those shortlisted pairs. and the ratios are
AUDUSD - 28|71 %
AUDJPY - 39|60 %
AUDCHF - 17|82 %
Well, we can understand AUDCHF got highest LONG traders ( Short term scalpers, Swing traders )
STEP 3 : Looking into News Indi, to check whether any concerned news is upcoming with relation to AUD and CHF , I see none , so next step
STEP 4 : Open the chart.
Wait for a proper entry. Now this part is upon you guys to decide based on your strategy of entry .Here , we aren't discussing the strategy at all, I am just sticking to topic on how to choose what to trade at what time. Everyone can use their own respective strategy of entry as per their liking and comfort zone. Anyways, here, I am using SINGH's Half Trend Indi + Sonic R Template + CCI + Hull Moving Avg
I got an entry with trend line break of CCI to LONG. I bought the pair.
After entering the trade, I checked the sentiment tool to notice that , there are more added buyers for this currency , I added another 0.01 lot to it with my entry style again after a while.
Noticing the 1% increase in buyer ratio : I pull another trade here as follows
I closed the trade here. and that's the very small profit that I took.
Why did I close the trade ??
Well Well, that's like my assumption , u see as seen below , I was under assumption that, market is likely making a double top and it might fall down, so grabbed the pips whatever market gave me and left it alone.
But , what market actually did is
So that's it. In theory and practical , my target was achieved, but I didn't earn it due to my wrong interpretation and lack of discipline for which I could have achieved my target + could have earned more.
Well, a purely disciplined FOREX ENGINEER is gonna follow his/her duties properly and earn those pips !!
LESSONS ACQUIRED UMPTEENTH TIME :
- LACK OF DISCIPLINE
- OVER EXCITEMENT
- FEAR OF LOSING THE GAINED PIPS/PROFITS
- STICK TO RULES ( THOUGH I HAVE READ LIKE 2000 TIMES EVERYWHERE ALREADY , STILL FAIL TO DO)
So pretty much that summarizes on how to choose a pair and trade, well, I ain't the author/inventor here or so for this idea, I tweaked whatever information that I collected here & there and adapted myself on my own comfort level. The above steps are not like strict rules kinda. Anyone can change things and modify if improvement could be factored in for this.
So I hope in general , everyone gets the idea on how to choose the right pair and do the trade thereafter, it really need not be any particular session, choosing the strongest and weakest currency anytime can let u scalp, if increased volatility during London session, more pips might be reaped.
NOTE 1: If you got multiple currency pair with same ratio of buyer/seller to trade on Forex Insider Tool, choose the one with lowest spread for your advantage.
NOTE2 : In Currency Meter Pro Tool , look especially for The highest LIME GREEN on top & DARK RED on Bottom with many little bars on it.
NOTE3 : Forex Insider Tool can be used for NEWS Trading, especially, in which we can analyze the market sentiment even before the news has released. There will be retail traders, who would have early knowledge of the news release and the trade has already been executed prior to NEWS release. A Possible way for mediocre Forex Engineers to know the insider mindset.