Hey all, nice to be back here
After reading most of the post in FF, i think we all missed on one point, its the price itself. there arent any thread discussing the price behaviour. well, ok, price go up and go down but the path are the same, its kind a personality of the pair.
Here are some thought that i have been using repeatedly, there are magic numbers in price especially in GBPUSD or some other currency pairs (never got the time to test it, yet) :
the magic number is lies there in the last two digit of the pair :
2.xx50
2.xx20
2.xx00
2.xx80
2.xx50
2.xx20
2.xx00
yes, it looks like a support and resisstant price but it happends everyday. bounce back and forth. it depends on how you use it: well, here is my way to use it:
1. Downtrend
if price want to go down it have to break xx50 price level if it breaks it will find support on xx.20, if the price breaks again it will find support xx00. but if it fails to break xx50 it will bounce back and find resistant on xx80 if it breaks it will find second resisstant on xx00 level
2. Uptrend
usually if price want to go up first it have to break xx00 level after the break it will find another Resistant on xx20 it this breaks again it will find second resistant on xx50, but if it fails to break xx20 it will bounce back again to xx00 level and again if it breaks xx00 it will find support on xx80 and so on
confused???
now lets put the theory in action :
on last friday, cable starts opens at 2.0636 its beetween xx20 and xx50 so its too early to trade, it starts to rally to xx50 up to 2.0663 (fails to break xx80 , on 15M chart we saw a reversal candlestick, so we put pending order sell stop at 2.0650 ( a little bit risky ) set stop on the highest swing, set take profit to 2.0640 (conservative) or 2.0620 (agressive) or 2.0600 (extreem:surprised)
almost everytime it hits 10 pips profit, 20 pips profit (sometimes) and 50 pips (rarely). so after you got that 10 pips just wait
again the price didnt even touched 2.0600 after we saw reversal candlestick we set buy stop at 2.0620 and tp on 2.0630 or 2.0640 or 2.0650
this time the extreem guy get the biggest profit.
BANG!! the price just passed away and breaks 2.0680. Again it fails to break 2.0700 so we place sell stop at 2.0080 (lil bit risky) or sell stop at 2.0050 and so on.
the magic number can act like stop loss level : sell on 2.xx20 sl at 2.xx50 and so on...so on
and if you like you can use "cut and reverse" strategy, many improvement can be made....
Test it to filter your system
i have my own system to work with this magic numbers and it works well,
great for scalping. but it restricted on GBPUSD pair only
Try it, you'll love it, any comments will be great
see you all on my next post, tomorrow
hope this useful.........
______________
nice to come back
After reading most of the post in FF, i think we all missed on one point, its the price itself. there arent any thread discussing the price behaviour. well, ok, price go up and go down but the path are the same, its kind a personality of the pair.
Here are some thought that i have been using repeatedly, there are magic numbers in price especially in GBPUSD or some other currency pairs (never got the time to test it, yet) :
the magic number is lies there in the last two digit of the pair :
2.xx50
2.xx20
2.xx00
2.xx80
2.xx50
2.xx20
2.xx00
yes, it looks like a support and resisstant price but it happends everyday. bounce back and forth. it depends on how you use it: well, here is my way to use it:
1. Downtrend
if price want to go down it have to break xx50 price level if it breaks it will find support on xx.20, if the price breaks again it will find support xx00. but if it fails to break xx50 it will bounce back and find resistant on xx80 if it breaks it will find second resisstant on xx00 level
2. Uptrend
usually if price want to go up first it have to break xx00 level after the break it will find another Resistant on xx20 it this breaks again it will find second resistant on xx50, but if it fails to break xx20 it will bounce back again to xx00 level and again if it breaks xx00 it will find support on xx80 and so on
confused???
now lets put the theory in action :
on last friday, cable starts opens at 2.0636 its beetween xx20 and xx50 so its too early to trade, it starts to rally to xx50 up to 2.0663 (fails to break xx80 , on 15M chart we saw a reversal candlestick, so we put pending order sell stop at 2.0650 ( a little bit risky ) set stop on the highest swing, set take profit to 2.0640 (conservative) or 2.0620 (agressive) or 2.0600 (extreem:surprised)
almost everytime it hits 10 pips profit, 20 pips profit (sometimes) and 50 pips (rarely). so after you got that 10 pips just wait
again the price didnt even touched 2.0600 after we saw reversal candlestick we set buy stop at 2.0620 and tp on 2.0630 or 2.0640 or 2.0650
this time the extreem guy get the biggest profit.
BANG!! the price just passed away and breaks 2.0680. Again it fails to break 2.0700 so we place sell stop at 2.0080 (lil bit risky) or sell stop at 2.0050 and so on.
the magic number can act like stop loss level : sell on 2.xx20 sl at 2.xx50 and so on...so on
and if you like you can use "cut and reverse" strategy, many improvement can be made....
Test it to filter your system
i have my own system to work with this magic numbers and it works well,
great for scalping. but it restricted on GBPUSD pair only
Try it, you'll love it, any comments will be great
see you all on my next post, tomorrow
hope this useful.........
______________
nice to come back
