The trend is your friend: if you dont miss the boat

Hi!
Early this year, i started to learn forex and did 2-3 month demo trading, and now, i'm full time live trading.
I decided to make a journal to keep track of my record, good or bad, and on the next post, i will explain how i trade.

Hope someone can benefit from it!
Have a nice reading.

Always interested in hearing how others are trading

Lets see it in action!!

Make money as we ride, but give me money for tomorow :-)

The way i trade is to enter in a new trend and stay as long as i can.
But, its important to take quick profit in case the trend is not going the way i predict.
We do small step, then we develop longuer position.

1 - Break out only

 

1. W1, W2 and W2 for example

2 - Follow current trend your in and go out when it end(current trend reverse).

1. If you enter at W1 or W2, then you follow trend #1(Y1)
2. If you enter at W3, then you follow trend #3(Y3)
3. etc.

3 - Volume!

1. Never trade on low volume and negative OBV or AD

4 - Use TD, OBV, A/D as guide line, not rules

1. There are just indicators, they are not medium.

5 - News is your friend, only if it follow your trend.

1. Never trade news, do not initiate trade before news.
2. To go throw news, we must secure our position first.

http://www.robotforex.com/forexfactory/ff1_2.jpg


I'm going to take the BlackFriday, good example on EUR/USD(150pips profit).

As we can see, a candle(W1) breach from strong resitance(~august2006) with volume(R1) rising

So we define a support(B1) below the periode of consolidation that cause the breach.

Since we are not able to predict future, we take profit to cover our position, in this case the other breach(W2) . If you miss (W1) you could have done the same with (W2 vs W3)

As we take profit on the second breach(W2) to secure our position, we begin to move our Stoploss position,
we can do few things here:

1. Move StopLoss to nearest support
2. Move StopLoss to Entry price
3. Take enought profit to cover position in case the trend reverse

So recap: Enter (W1),Support(B1), first profit (W2)

As we move to the third breach(W3), we begin to move our TP.

As the trend will develop, we will define support(TakeProfit) as they come. The goal is to average our profit. For exemple , lets says we bought 10 lots, we take our firts profit 5 lots to cover our position at (W2), then later you can put 2 lots at (B3) , 2 at (B2) and 1 at (B1).

This way, if the trend retrace between (W2) and (W3) and rise beyond (W3) then we can make more money without risking nothing.

Also as we take our first profit, we can put this money on other currency and begin a new trend.

Always have maximum risk of ~2-3% for the account at all time. So you enter in one currency and as the trend develop and you are able to secure your position, then and only then you can look for other currency to trade.

Never add to the position. Adding make stoploss average higher and higher every time. If the trend reverse, the average stop loss will trigger faster.
If we do add, its because we define a inner trend and we must treat each trend separately.


Your position end, when the trend reverse.

On the next post, trend reversal.

Ok, here it goes.

http://www.robotforex.com/ForexFactory/ff2.jpg


This is a actual position on EURCHF...
How do i manage trend reversal?

1 - Identify Current trend (Downtrend Red )
2 - Look for a break out from the current downtrend
3 - Wait for a break out from the last resistance of the current downtrend(#1)

 

1. And use last support #4 for Stoploss

4 - Take profit at #2 to protect your position

1. Move StopLoss to nearest support
2. Or move StopLoss to Entry price
3. Or leave support until you have more support to split your lots

5 - Ride the new trend, if your right :-) , until it reverse.
6 - As the trend develop, split you lots into multiple lots, base on support

Why we wait for rule #3?
If we buy, we must try to not get stuck in a ranging period.
Until the trend breach the last resistance, the downtrend will continue.

Of course, this is not 100% rules, but it works!

Hello Zuezere,

I appreciate your posts. Very instructive. If it is not a major inconvinience, could you make your background color lighter? I think it will help with the clarity of the image. Just a thought.



Thank You

One thing that amazes me about news traders is that the moment they either see the data release or see the spike, they trade, even against the trend

Update on current position before news:
http://www.robotforex.com/ForexFactory/ff3.jpg

Now there more than one support so i will split 50/50:
1/2 poisition when it touch support 1 and close at support 2(Entry Price).
Off course, if it goes the other way.

Hope your not saying that im a news trader :-)
But if news trader help me, i love them....

For the fun i created a Bagovino indicators:

iBagovino_v2:

Base on Bagovino system #1. Inspired by MACD indicators.

 

1. Histogram Positive == FastMA cross over SlowMA.
2. Histogram Negative == FastMA cross Below SlowMA.
3. Green Historigram == Filter is over 50
4. Red Historigram == Filter is below 50
5. Trigger(White Line) == Current RSI setting

You can plot the indicator on any timeframe(Use can use current or higher timeframe for the RSI (TrigerTime/FilterTime setup) )...

 

1. MATime: Choose timeframe for the cross
   1. Any timeframe

2. TriggerTime: Choose the RSI(White line) timeframe

    

   1. Trigger <= FilterTime

3. FilterTime: Choose the RSI(Histogram Green-Red) timeframe

    

   1. FilterTime >= Trigger

Possible value for the MATime,RSI TrigerTime and FilterTime:

 

1. 0 == Current time frame (Default MATime and TrigerTime)
2. 1 == M1
3. 2 == M5
4. 3 == M15
5. 4 == M30
6. 5 == H1
7. 6 == H4 (Default RSI FilterTime)
8. 7 == D1
9. 8 == W1
10. 9 == M1

See Bagovino thread for explanation on is system...
I will not answer any question for this system. Bagovino will do that.
But you can post here your comment or bug on this indicator.

Attach Files:

1. You can see that the 15 minutes chart is the same look and feel as the 1Hour chart.
2. The 15 minutes use MATime(5),TriggerTime(5),FilterTime(6)
3. And the 1Hour is by default

Hope you will like this!

SuperRSI:

You can use as a regular RSI or can you can also view higher timeframe RSI value.

 

1. 2 color
2. its possible to change periodicity for higher timeframe
   1. ex.: Use 15m chart with 1Hour rsi value

Possible value Periodicity :

 

1. 0 == Current time frame (Default)
2. 1 == M1
3. 2 == M5
4. 3 == M15
5. 4 == M30
6. 5 == H1
7. 6 == H4
8. 7 == D1
9. 8 == W1
10. 9 == M1

Enjoy!

AvgCCI:

CCI average indicator... what else to say!
Less choppy, smooth form with some latency(MA as usual)

Enjoy!

Never saw somebody like this... this guy is so...
If your are not able to take critism without crying like a baby do not post...
Read carefully please next time kmrunner... I'm glad you put me in your ignore list...

And i did post this issue to public, because from the begining you misinterpret everything...

I did try to make thing clear, but your keep comming back...

Careful with this guy...
Again kmrunner, hope that Merlin will ban you in the futur for rule #1
And yes i will hunt you in FF on each of your post... ( Dont cry is a joke ;-) )

I have 200+ post with no bad issue and i will not allow anyone to tell me i'm a jerk in public without replying.

Anyone can comment on this issue(its not a fight by the way) ...
I like thing to be clear and with respect...
Unforunatly original post was remove, but i would have post them, see thread #4 and #6.
Question! I'm jerk or not?
I did help people in the past at FF, and i will continue, but people like that make you rethink that sometime it does not worth it....

Please anyone,
when you say something to help people on FF, make sure you are right, or at least think you are right...

Because when someone ask a question, its because they dont know the answer and they want to have it...
People rely on answer made by others...

And when you said something, you must be able to explain it, or it does not have any value.... Its easy to say the sky is blue!But can you explain why?

Anyone can say anything, i'm open to every comment.But i like people to have at least a explanation on what they come up to...

Dont you think?

Just because you tell something, does not mean you are right, many people make false affirmation and they think there right. Its ok to make bad affirmation, but dont be stupid when people reply to your post, and take it easy, everyone wants to help, and thats what i like about FF...
But please dont be stupid, and respect rule #1

At the beging, people were sure at 100% that the earth was not round!!!