DislikedZorroz,
Thanks so much for your reply. I was wondering if you know anyone following this thread who uses this method on the daily charts. I might be able to start a communication with them to help us both.
Regards,
JohnIgnored
No i don't know anyone who trades this method on the dailies i'm sorry, i have pm'd Greg before and he has been kind enough to reply so maybe shoot him a message and get his thoughts. I'm not sure if he is in a position to reply or not but you can only try. I have found him to be forthright, succinct and extremely helpful in everything i have quizzed him about.
You mention in your next post that you find it hard to settle on one method that is proven. In my opinion you have found it but it does take work. I had some help early on which by coincidence matches nicely with Greg's approach. His method has all the ingredients i think you want from a system, to me the following is a logical way to approach it.
1. He looks to get on early when trending momentum kicks in. ( in other words he is patient and sits on his hands until he sees momentum start ). You can do the same but apply it to the daily
2. He then trades with that momentum so effectively is trading with the current trend in relation to the timeframe he trades. You can do the same but just apply it to the daily
3. If he is wrong then he looks to get out as quickly as possible if the trade turns on him, by the same token he gives it room to move and allows the trade to breathe.
4. he looks to just take the easiest part of the move, sometimes that has been 30 pips sometimes 70 or more.
5. he banks his profit and sits and waits again til the next set up.
so all in all he is patient in waitiing then trades with current momentum, gets out as quick as possible when wrong and banks profits after he gets a good move. sounds like the old analogy of patience and discipline, trade with the trend, cut losses quick and ride winners. his idea of a trend and the amount he looks to cash in on might differ to many others who will look at a trend over the course of a week or month etc but you can apply the same to the 4 hr / daily chart. you won't get as many trades and losses and wins will naturally be bigger pip wise but Greg's approach can be copied to any timeframe be it 1min chart to weekly.
Put his indicators on a daily and start taking notice of when and where momentum kicks in, go back over Greg's charts and look at the patterns and forget that it is a 15 min or 1 hr chart and look for those patterns on the daily BUT you will have to be very very patient cos there simply won't be as many.
Personally i use 3 ma's ( not in a crossover way or anything like that either ) and no stochastics etc but it's only because i am used to them and not used to Greg's stochs and other indicators. I was using my approach before i ever found Greg but his thread has really reinforced what i was doing. The thing is is that our interpretation of price action and momentum quite often is the same. I don't even look at Greg's indicators to be honest because it is the momentum of the actual price that is the main common denominator. How we both come to that conclusion doesn't really matter because we are both looking to do the same thing. TRADE WITH TRENDING MOMENTUM, RIDE THE MOVE, GET OUT QUICK IF WRONG, BANK THE PROFIT AND SIT BACK AND BE PATIENT FOR THE NEXT ONE. Look for when price is running out of steam in one direction, goes quiet/sideways/pullsbacks be patient and wait for it to either begin momentum in the new direction or resumes it's current direction.
I heard a great webinar with Mark Minervini from the stock market wizards fame the other day and he mentions just how important it is to have just one strategy and stick to it and not to chop and change. Whether it be a breakout strategy/ trading off pullbacks/support and resistance or anything. Work it out what you are comfortable with, stick to it and only do that strategy. Mark is only right about 50% of the time and look where it has got him. If you look back at Greg's charts you will notice he does the same thing over and over and look how it pays him. I know it's hard to settle on a strategy but if you like Greg's then don't look any further in my opinion. Just work hard and go back over all his old charts and see how they line up on your own platform.
Hope this helps somewhat.
z