Hi Emmanuel,
Thanks for the reply, indeed you should post this link in your signature!!
http://www.forexfactory.com/showthre...58#post8962658
By the way.. Rip Big E... condolences to his people and friends..
I will continue my reading of his posts thoroughly.
I found a 113 pages pdf containing all the ones from this thread:
Attached File(s)
BigE full.pdf
3.4 MB
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928 downloads
So... I guess maybe I do lack some forex basics making it hard for me to interpret correctly, even if I'd read the whole babypips, I'm not sure I'd know exactly what he meant by the followings. If you don't mind, would you please correct my interpretations / share with us your interpretation of these?
How close am I to the previous high or lo
This one I really don't get.. What to look for and when?
If there was a long down trend and then now a reversal is happening, a TDI cross (up) occurs.
Should I care about previous Lo / Hi in a way of targeting: SL=lo and TP=hi?
Or did he just meant
If in uptrend look for previous high as next support
if in downtrend look for previous low as next resistance?
Am I in an uptrend or downtrend.. short & long term...
Must both short and long term go in the same direction for me to take the trade?
Skip the trade if short term trend is opposite long term trend because that means I'm entering on a retracement of the longer term trend.
Am I in or close to a consolidation area
Being in a consolidation is obvious.
If I'm in a consolidation avoid trading.
Being close to one I'm not sure why would I care?
If I'm close to it means I'm not in it anymore (there was a breakout) which mean I'm in a new starting trend..
Should I avoid that new starting trend and wait for a reversal?
Are the previous candles small...
How many pips is a small candle in H4?
How many pips is a small candle in H1?
If I look at GBPUSD H4 full screen, MT4 resizes to fit everything in the window, making most candles after Brexit look very small!
What I mean is, this can be subjective to view configuration.
Look at the candles on the last reversal... big, little, what
If they were little ones = last reversal not trustable = so then the one I'm trying to enter is not trustable either?
How does the momentum look right now (12-2, 4-6)
This to me is very hard and subjective too.
Many times a 1 or a 5 results in false signal.
So I guess this point is just avoid the flat 3 o'clock ones?
Does Stoch's confirm the TDI signal
If green TDI points in opposite direction of white Stoch, avoid trade.
If Stoch over 80 avoid long
If Stoch over 80 then turned downwards and crossed 80 go short
If Stoch below 20 avoid short
If Stoch below 20 then turned upwards and crossed 20 go long
If Stoch is in the middle going up from near 20 go long
If Stoch is in the middle going down from 80 go short
Thanks so much again for your help!!