About Huzefa Hamid
I’m a retail Forex trader and I exclusively use Technical Analysis to trade. I believe that Technical Analysis offers the cleanest way to predict the future direction of price movements. The fundamentals and news create the market sentiment and emotions, and that in turn is reflected in the price chart. Your bet as a trader is not on the fundamentals – it’s on what happens to the price as a result of those fundamentals.
My charts have few indicators. I use Fibonacci retracement levels favoring the 50% and 61.8% levels. I have a systematic method of trading, but it is not automated. I mark my charts manually and my method allows me to have a high win rate combined with a good reward/risk ratio.
I am interested in trading high volume liquid markets. This means I trade the majors, EUR/USD, GBP/USD, USD/CAD, AUD/USD, USD/JPY etc. and some crosses. Technical Analysis works on principles of crowd psychology in that large crowds have more predictable behavior than a collection of fewer individuals. For example, a single institution could not move the S&P500 or even a single large capitalization stock such as Apple. And a single institution could not move the EUR/USD by itself in U.S. Open. However, a single institution could move the price of a low volume stock or thinly traded Forex pair. The latter scenario is where Technical Analysis breaks down.
For charting, I mostly use MetaTrader. It does have its limitations, but it has enough functionality for my style of trading. As my trading is not dependent on proprietary tools or sets of formulae, I can use any platform offered by the brokers I have.
My preferred trading session is the U.S. Open. I like the London Open too but as I now live in Toronto, the London Open is in the middle of the night for me! I trade four days a week, about three hours per session. I trade the 15-minute, 1-hour, 4-hour and Daily charts.
Senior Analyst at DailyForx since 2012
Analyst at Deloitte and PriceWaterhouseCoopers, Member of the Canadian Society of Technical Analysts
Latest 10 Articles
- Role Play, baby.
- 31 August, 2015 GMT
You may have seen the above scenario play out on your charts: you spot a Support and the Support gets broken; the market rises back up and bounces against that previous Support level.
- Strong patterns can fail. Trade those failures.
- 28 July, 2015 GMT
Sometimes you have the perfect setup for your strategy and the market literally moves in exactly the opposite direction. This is called “Pattern Failure”. Those pattern failures can be just as strong as the original move you were expecting.
- The Pin Bar: Textbook Trades Actually Happen
- 14 May, 2015 GMT
The Pin Bar is a pure technical setup. It occurs across all timeframes. And it occurs across all markets – Forex Majors, Forex Crosses, futures, equities. Get the latest Forex education article about Pin Bar trading here.
- Pin Bar Success - Keep it Simple
- 18 November, 2014 GMT
Trading a Pin Bar is simple. The fundamental and political events surrounding the market are complicated and change over time. The technical principles based on human reactions to those events don’t change. Learn more about Pin Bar success here.
- Success With the Pin Bar Setup
- 23 December, 2012 GMT
The Pin Bar is an easy to spot, objective setup that is consistent and produces a high-win rate. Learn how to be successful with the Pin Bar here.
- Getting the Right Turn with a Pin Bar
- 23 September, 2012 GMT
In continuing with learning about trading with Pin Bars, this article looks to the AUD/USD pair for recent trendlines pinned to the right entry.
- Increasing Your Risk/Reward Ratio
- 12 August, 2012 GMT
Learn how to increase your Risk and Reward ratio from this informative article in continuing with the Forex education series on DailyForex.com
- 50 Pips Just Before the News
- 25 July, 2012 GMT
This morning, 9:30 AM UK time there was a big announcement affecting the GBP/USD. See the trade that was entered right before the announcement and what the big move means.
- Getting That Reversal – Part 2
- 22 July, 2012 GMT
In continuing with some Forex education this article discusses part two of the Reversal series by showing a daily chart looking at bearish pin bars and bearish Engulfing setups.
- Getting That Reversal - Part 1
- 15 July, 2012 GMT
While relaxing over the weekend catch up on some Forex education. This article looks at the Pin Bar and Engulfing setup within a trade. Start your Forex Sunday school here.