Disliked{quote} Thanks for the reply VEEFX. I think it's good to add on retraces to get a good price and avoid drawdown however I don't want to get into trying to forecast where price is going. One of the most important ideas that I think greame tried to communicate was in the following post. {quote}Ignored
If we agree with Greame about it being impossible to predict the next 30-100 pip move direction then the whole idea of razor sharp low risk entries on the lower timeframes is not really possible. The way forex retraces and whipsaws on the smaller timeframes means stop losses will be hit constantly. Traders might think using lower timeframes entires each day means the are participating but they will not be able to build a big position unless they happen to trade right at the top/bottom of a large move.
If you reduce your lot size so that one unit (say a micro/minilot) weekly candle move against your trade doesn't worry you too much then your entry is low risk. You can use the higher timeframes price action to give you a rough place to enter but you need to expect a drawdown on most trades before it moves in your direction (If you are on the correct side of the trend). Once your in wait until it's in the green and then look to add another trade. If you can do this across 10-20 pairs over a few months until you have positions in each direction you can then use price action to tell you when to diversify still on daily/weekly/monthly. Stop losses are essentially pointless in this situation as long as you are keeping an eye on it.
I think its a shame Greame went on to discuss 5 min entries and the thread moved off from his main compelling idea.
Economists have forecast 9 out of the last 5 recessions