Hello all. I trade the Mini Dow during the day and need something to trade after hours. Forex looks pretty intriguing. Would anyone mind giving me a sample good chart setup for trading the EURUSD? Like daily support/resistance lines, MA's, time frames. That would help a ton! Also, any advice would be appreciated as well. Thanks in advance. Michael
Hi Michael, I'd offer several things to consider when adding currency pairs to your Dow trading. You'll see in many threads here on ET discussing that support and resistance seems to be well-behaved and respected by many of the currency pairs. (Trade up to resistance, bounce, repeat, fail or succeed, break through, trace back, bounce off of now support, etc.) You'll get the best feel for it just by watching it for a while. The best part is that nearly all feeds are free and in real time. The EURUSD is most active during European market hours and US markets. It really quiets down after the 4pm ET close, but starts back up again around 10pm or 11pm (Eastern time, for reference). If you trade longer moves, this may not be an issue for you. If you trade shorter term, you might look at premarket trading, rather than aftermarket. You'll see much heated debate about ECNs versus dealing desks. If you are used to trading the Dow in a centralized marketplace, you might find a dealing desk like OandA's to be preferable, more comfortable, and more like your daytime trades. ECNs have the potential to trade locally but will route into the interbank space if the quotes cross yours in the book. Both have advantages and would be worth demo'ing to get a feel for. My choices are OandA, IB, and MB Trading; however, that's a personal decision for each trader to make. Do be careful in choosing your dealing desk broker, as you can read many horror stories. I know that some use unfair tactics, but based on some of the rants and stories you'll read, it's apparent that it can come from trader inexperience as well. Spreads will change based on time of day as well. That'll be true on the ECNs as well as the dealing desks. This will be no surprise to you, as it'll look just like what you see now in the futures.
forex will ruin your trading for index futures because it doesn't trade in a like fashion. it will ruin your futures trading acumen.. stay away
forex traders must be unimaginative dullards... the key is simply 'go with the trend'.. yawn dont try to fade or game it! bitches!
mhepworth, I made the tranistion to fx from the ym and other mini indicies. Its actully easier to trade forex in my opinion than eminis, and both are not by any means easier. Although kill the sunshine seems like an idiot he is right in one respect, watch the trend and trade with it and well fading is harder it can be done. Just ask Davidmaria he does it on the euraud sometimes. I have noticed while trading once these things pick up steam in a direction they go so just be careful but trade well pick your spots to get in the trend or make sure you can identify if its a ranging market and then trade accordingly. I choose to switch tp fx for something that helped me with my money management which fx did, i can see clearer places to get out of my trade. I dont double down i trade price action and it seems to work out good for me now. Good luck!!
If you want to trade currencies, and not big enough to get access to inter bank, CME currency futures is your best bet. Also, Asian session is one of the worst to trade, almost no volatility.