Starting today I will upload articles about predictions of currency movements. Each article contains predictions based on technical readings of certain currencies. Each article will be included in the “Feeling Trading” series.
Maybe people will ask a lot, why am I trading based on a feeling? Previously I need to emphasize here that what I say with feeling trading is actually not really doing currency buying/selling transactions based solely on feeling. Instead, I use several technical indicators to analyze and make decisions.
What indicators do I use to analyze currency movements before I trade? The first and foremost is the stochastic oscillator. I am a big fan of the stochastic indicator, the indicator found by Dr. George Lane in the late of 1950s. This indicator, in my opinion, is a very reliable indicator and can be used to determine the limit of price movements in a trend. In fact, with a few proper modifications, this indicator can be used to determine entry and exit positions in both short, medium and long trends.
The second indicator that I use is the Moving Average. Indeed, this indicator should be the first indicator that must be added to my list. This indicator can show us the current trend. For traders who like to follow the trend, this indicator is very useful. However, because it is always late in following price movements, I put this indicator in the second number on my list. I use this indicator solely to see what the trend is happening now. However, as a retail trader with not too large equity, the best for us is not to fight the current trend.
The third indicator that I have never left in each of my trades is Fibonacci Retracement. After the Stochastic Oscillator, this is my number two favorite indicator. I get many benefits when determining which price points I should use as an entry position and profit target. (Note: I never use Stop Loss. Sounds absurd, yes to some traders? But next time I will explain why I don’t like using SL). Fibonacci retracement is known for its effectiveness in determining price support and resistance levels on a trend.
The last indicator I use is the Camarilla Pivot and Support / Resistance. This indicator is a cost indicator that is not a default indicator — which is included with the MetaTrader installation. This indicator is just an additional indicator. I added this indicator after some time using (only) three other indicators that I explained earlier. Camarilla Pivot (I call it so to shorten), I only use it to recognize extreme support and resistance levels which are sometimes difficult to estimate by using a Fibonacci retracement – especially when prices move very wide and exceed the daily range of the currency.
In the end, this is actually not merely trading with feeling like gambling. Conversely, this is technical trading which is also not merely technical as a robot. This is technical trading that uses certain considerations so that any indications that are read on the graph do not necessarily translate raw.
How is the performance? So far so good in my opinion. With an income of no less than 2% every day, it feels enough to support me and my family. Greetings!