Ivan maybe u can help me here, new to forex but not trading. I have traded most everything recently, trading the dow e minis as well as the euro but the cme futures euro. I basically use chart setups and intra day setupsto trade these and do not go home with a position. I have heard horror stories about fx and what not as I am sure you all have. I utilize retracements and breakouts as my main strategy off the charts. Using that, which to me is basic and simple, but I like the K.I.S.S. Keep it simple stupid! I found that too many indicators clouds the mind so I just mainly look at price and the trend and go from there. I was looking over the chart for the euro/usd. It seems to look like any other chart for any other financial instrument so I figure I can go in and put my normal strategies to the test, it should be alright. I have been trading for about 10 years now. I know risk control and money management thats how I stayed in the game so long. When I do trade the euro- cme future, I usually look to oil and just watch that trade as well as a heads up and obviously the equity markets. In anyones expierence does it seem like it would also move with energy? I prefer intra day trading call it scalping but not like I would do in the futures as much. But looking for a good chart setting, I used a 5 minute or so for longer time frame to see the trend but does anyone reccomend a good shorter time frame? I was using a tick chart set at 35 and 55 ticks but looking for something smoother, thanks again. I know its alot to ask but if you have to them I would appreciate it .
Er...thanks for posting in a new thread, but you didnt make it any clearer. So I'll take a stab at what you're looking for. I think you're asking whether or not EUR/USD tends to move in line with oil, and my response would be that yes, there is definitely a correlation as of late. I think the correlation is more the dollar index to oil, but since the euro is a large part of the dollar index, you see a de facto move in EUR/USD as a result. As for the time frame of your charts, I use 3 hour charts, and occasionally a 1 hour chart. But if you're a scalper, I'm not the one who can help you very much. You'll have to get that help from someone like cabletrader.
Thanks I tried to clean it up a bit, you answered the question on energy and I appreciate that. As for the charts, yes I am a scalper for now but that might change as I see it is tougher in fx. So I will be tinkering with chart settings for a while to see whats best as I hit the sim for the next month or so. I do appreciate the time as I know you are trading, thanks.
Keep in mind that even if you follow the trend you have to watch your stops. The stop gets hit then the trend continues without you.
....or you could do something really controversial and off-the-wall like getting back in on a retracement or trading the trend channel