Forex Tips: Don't ever try to pick absolute tops and bottoms

[Pinalli]

I know of traders that have an addiction with this. They always look to pick the absolute bottom or top and ride the market on the reversal. They succeed one or twice but eventually suffer a big hit. If you can't help it and you want to try and look for those huge turning points in the market at least use some sort of confirmation. Don't just guess "this is the top" or "this is the bottom".

[ChartSecret]

I do not agree.

When a trader has no experience and no knowledge of chart patterns or support and resistance - you are completely right. I would say that this trader should not attempt any trading at all.

However, as you gain knowledge and experience, you will find out that chart patterns give you early signals or reversal, and in many cases you will be able to pin point the exact reversal points for price. Identifying bottoms and tops is possible, it just needs experience.

[Pinalli]

Hi buddy....

Well.... experience is important in all the fields where money is involved. What i meant was to learn to spot opportunities. Try to find the suitable long-term or short term trends, then move up from there to daily charts, and then to time entries.

[Sofia]

But how do we know when the price trend is at absolute top and when its the absolute top?? Any special indicators that can can tell us? I dont know, sorry for the dump question, but i am a newbie in live forex trading...

[Pinalli]

Originally Posted by Sofia

But how do we know when the price trend is at absolute top and when its the absolute top?? Any special indicators that can can tell us? I dont know, sorry for the dump question, but i am a newbie in live forex trading...

You can determine it very well by looking at a high range price trend charts.

[dvwilliams]

Would any historical benchmarks aid in determining a top?

[FiboTrader]

It depends on your definition of catching Bottoms and Tops. You may try to catch them if you have a strong enough pattern (Fibonacci or other Chart-based) that can lead to the reversal. Also, look for some minor confirmation before entry. This is a rule you must follow.

[Pinalli]

Originally Posted by FiboTrader

It depends on your definition of catching Bottoms and Tops. You may try to catch them if you have a strong enough pattern (Fibonacci or other Chart-based) that can lead to the reversal. Also, look for some minor confirmation before entry. This is a rule you must follow.

You are absolutely right, trading is about recognizing long and short opportunities. Many people have the problem of shorting. They have the problem of profiting when the market is going down. They are taught through life that you make money when markets go up. As a currency trader you don't care if the currency market is going up or down, if there is an opportunity to make money you take it, that’s your job.

[forextrading]

however Pinalli is right... I request you all to not trade by seeing the top & bottoms.= of Stochastic Oscillators.

Only 2 things require to get success in Forex Market

1. Discipline
2. Practice

If you have both, you can WIN.

[Pinalli]

Originally Posted by forextrading

however Pinalli is right... I request you all to not trade by seeing the top & bottoms.= of Stochastic Oscillators.

Only 2 things require to get success in Forex Market

1. Discipline
2. Practice

If you have both, you can WIN.

Hey there,

Thanks so much for agreeing. Discipline and practice are the important aspects for success but unfortunately some traders dont follow them.