The Question to be made is: "What does a Trader need, to be Successful?". It looks like a complex Question, right from the start. Your thoughts fly away to Trading Plans, Strategies, Systems, Methods, but You have to keep into attention the >>> Timing Factor <<<. The Entry and the Exit (Stop Loss or Take Profit) of the Trade, are the Components that make it Succesful or not. Of course that you need a complete Analysis, both Fundamental, and Technical to get the Best Entry and Exit for the trade. You might have a great analysis, very accurate, very precise, regarding the Direction of the Market Price, but if you enter too early You might trigger our Stop Loss before the Trade goes the way You have Predicted. On the other hand if You enter too Late, you might lose the Market Move and wake up in the Middle of a high risk trade. I have written about the Timing issue in my "12 Steps to Make a Trade, 12 Solutions to Discipline Yourself" article from December. The >>>TIMING<<< issue involves a Time Factor - the best Moment to Enter/Exit the Market. How can You find the Best Moment in a Time Based Chart?... You have to take "another View of the Market", one that is beyond the Time Factor. So, We have a Timing Problem, and the Best Solution can be found by Detaching Yourself from the Time Factor. The next step to take is to concentrate on the >>>Price Movement<<<, on the Volatility of the Market, beyond the Time by using the Range Bars/Candles Charts. You can read about the Range Bars in my first Two articles from my January Articles Series:- Constant Range Bars Charts introduction,- Range Bars Charts Analogy with Time Based Charts. >> It is amazing how You can use Trading Instruments from the time Based charts, in the Constant Range Bars/Candles Charts analysis, and combine them with specific Tools from the Price Movement Charts (R.B.C. - Range Bars Charts). >> For example, You can use Pivots (Daily, Weekly and Monthly - Time Based) combined with Moving Averages from the Range Bars Charts, other than those from the related Time Based Charts, and also Trendlines and Channels based only on Price Movement. >> However, the real Help comes from the Volumes indicator, and the Volume Spread Analysis conducted in the range Bars Charts, because We have a different number of Bars/Candles, and the Volume is distributed different from the time Based Charts. >> Another Important Difference, the Bars/Candle Formations, show Different Signals, sometimes earlier then the Time Based Chart, correlated with Volume and the Technical and Fundamental Analysis in both types of Charts. >> >>>IMPORTANT<<< Volume doesn't Always follow the Fundamental Anaysis and News. They are sometimes higher during the OPEN/CLOSE of the Asian (Tokyo), London or New York. >>>SOLUTION - Use the Time Factors, Fundamentals and Market Opening and Closing to Spot the Best Entry and Exit Signals by using the Constant Range Bars Charts (Price Movement and Volatility Charts), with the Specific Tools: Volumes, Volume Spread Analysis, combines with Candle/Bars Formations and Technical Analysis. Just Follow the "Smart Money" (Professional Traders) Real Movement.
I will post some Chart examples to Better understand the Theory.
First, let's see an example of the signals provided by the Volumes
combined with Candle Formations in both Types of Charts (Time Based and Range
Bars Charts - 10 Pips).
In analogy with the Time-Based Chart - 15 Minutes Time Frame:
Next You can see two examples of How you can combine different instruments in
Constant Range Bars Charts.
Thank you for reading my article. I hope you can use the Information to build a
Better trading Plan and Strategies.
Remember to take a Look at my Constant Range Bars Charts Technical Analysis (35
Pips Bars/Candles) in Analogy with 4 hours Time Based Charts for This Week, for
the Major Pairs (Eur/Usd, Gbp/Usd, Aud/Usd, Usd/Chf, Usd/Jpy, Usd/Cad and
Nzd/Usd). So far, my Analysis has had 85 % Success, because it is based on
Price Action. In the First Analysis in February I will also Post the Monthly
View through the Daily Charts.
You can see examples for my Analysis in My Article Series from December and
Disclaimer: Please Assume Responsability for You Own Trading Decisions.
To Your success,
Tiberiu - Doctortyby