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What is your favourite indicator and why ?

  • #141
  • Oct 25, 2006 4:18pm Oct 25, 2006 4:18pm
OK:

Now here is a one minute chart for that one hour candle formation. You can see where the 1 hour candle broke through the 1.2575 area and hit 1.2576 for the high and backed off. This would have resulted in a loss for that position (depending on how you determine when to get out). Note: I'm not questioning you method, this is just an example to help clarify a few things. There is a lot of price action that makes a 1 hour candle as you can see. According to the one hour candle we would have bought when the candle was moving up (green) through the 1.2575 area, plain and simple. I believe you said to use limit orders for your trades. If we're looking to buy when the candle is moving up through a price, how is a buy limit order used when the limit order has to be placed below the current price? A buy stop at 1.2575 should be the correct order, shouldn't it? Also, how does using a 1 hour candle versus watching the candle forming on a 1 minute chart make it easier for 'noobs'? If your looking for only a handful of pips per trade, shouldn't a faster timframe be used? I understand about trading the Asian session, some people stay away from it because of the lack of movement for one reason. But, that fits right in to this strategy if you are only looking for a few high dollar pips.

Hope to hear back from you and thanks for providing this method.
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  • #142
  • Oct 26, 2006 12:47am Oct 26, 2006 12:47am
Palmer,


I'm with you! I see the same problems with this system. You have the same chance going to Vegas and picking red or black!!!

Noobs, do not even waste your time with this system!

Bago
"Skills pay the bill's!"
  • #143
  • Oct 26, 2006 10:20am Oct 26, 2006 10:20am
Agreed with you, guys. I checked it for many days, thinking that maybe I misunderstood something. Doesn't work for me at all.
Then I came to the opinion that there is something childish in this system: as if somebody would be looking at the charts, AFTER the bar is formed and would decide, gee, that was easy... but as Palmer said, there is a lot of movement behind each bar on a smaller time scale, very often the smaller t/f frame cross and recross the same price many times, so how one should know which one cross is in the right direction. Also, if somebody should wait for 2 pips hours and even days, that's ridiculous. Any scalping strategy would do better.
Usually I don't like to critisize other peoples systems, but this time I decided I should speak up, because there are a lot of young inexperienced traders here, so to save them from a dissapointment and waste of money...
Here in the FF are so many much much better things to learn.
  • #144
  • Oct 27, 2006 12:07am Oct 27, 2006 12:07am
For god's sake, here we go again! It's all math and the holy sh%$ grail of a chaotic Gann square of the hulabaloo of the price inverted times 5 plus the exponential 7 moving average of what oil is doing. Make sure to look at the MACD of the number of inches apart my dog poops on the lawn, too...

Divide that by the 18 moving average of EUR/USD + USD/JPY, times the price of Marlboros in Frankfurt, and I can trade 3 to 5% of my account on it using at least 2 to 1 risk reward and make money. This is actually true. So why don't we make that a system? It would only have to be right 33% of the time at 2 to 1 risk/reward.

Why not read the Wall Street Journal from cover to cover every day and use charting as a tool, not the whole method?

P.S. I may be wrong, maybe the 5 exponential moving average of the price of Marlboros in Frankfurt will work better...
"The time to act is when others show signs of tire." --W.D. Gann
  • #145
  • Oct 27, 2006 12:36am Oct 27, 2006 12:36am
Folks, nothing moves without something moving it first, at least that's what Newton said, and he was hundreds of years beyond Fibonacci...
"The time to act is when others show signs of tire." --W.D. Gann
  • #146
  • Oct 28, 2006 9:52am Oct 28, 2006 9:52am
Quoting summitfx
As a full-time trader (8 years), I was trained as a COES Bandit. This invloved sniper trading. We basically traded high flying stocks like AOL in the late ninties and used the futures (Spooz and Nooz) to determine the entry points. Trades would last anywhere form 30 seconds to 15 minutes. It was rapid fire in and out. At the end of the trading day you were totally exhausted and hopefully in the green. Today, I still have the need to "push" the button and make the trade. I also have an account that I trade only daily and 4 hour charts (swing trades) Through various methodologies on the FF, I have settled into a profitable scalp trade routine. My favorite session is pre London session (12pm mtn time) and the London session (1am). It's a very simple trigger of lines crossing lines. I turn off all monitors but 1 and focus soley on the enlarged chart and block out all noise. I don't care about others opinions of where they think the currency is headed etc. Focus and react. If you use 2 lots or $20 pip profits, you only need 5-10 pips to make $100-$200 per trade. It's rapid fire and you only take the trades on the cross. As you get better, you can filter out trades and only go with the prevailing trend etc.. On a decent day, I can easily make $500-1000 per day with very little effort. Below is the chart. Candlesticks with an 8p RSI and 8MA in one window. It's self explanatory but it's fun and profitable. Sweep your profits into longer term trades that suits you best. Here it is- feel free to give it a go~
Hi summitfx,

I have been using this system for a while trying to trade the 4h charts with some success however i am trying to find a way of filtering some of the bad crosses on rsi.

Maybe with your experience you could give me some advice, I thought about trying to use weekly pivots and only trading the signals that trgger after a bouce of the pivot?

Any help would be great

DD
  • #147
  • Oct 28, 2006 4:51pm Oct 28, 2006 4:51pm
RSI on a 4-hour chart is one of my best indicators. I use it for bounces off top and bottom when the pair is tending to be heavily overbought or oversold, usually a minor or strong reversal occurs next.

Sometimes price consolidates, but that's even profitable.

Another indicator. I like stochastic on daily chart to get the bigger possible retracements. I also like pivots and fibs to decide price reaction to them.

Usually, when price move around pivot and goes to S1..most likely, will go thru S2, S3, etc.. and vice versa.

Hope these help. I know these pretty much basic.
Forex is not easy!
  • #148
  • Nov 14, 2006 4:04pm Nov 14, 2006 4:04pm
Quoting Zach
Thank you for your patience answering these questions. I think I have everything I need to start demotrading this strategy. Only one thing confuses me. You write, "I can make a profit with two pips at my broker." Does that mean you only have a one pip spread? If so, can you recommend a broker that would work well with your system?

Thanks again,

Zach
ive heard of this "trade with the color of the candle" method a few times. it makes sense i guess..but how many times have you seen a hollow candle immediately followed by a solid candle, or vice versa. it happens all the time.
  • #149
  • Nov 14, 2006 4:06pm Nov 14, 2006 4:06pm
what parameters do you use and on what pair(s)

Quoting AhmedFouad
RSI on a 4-hour chart is one of my best indicators. I use it for bounces off top and bottom when the pair is tending to be heavily overbought or oversold, usually a minor or strong reversal occurs next.

Sometimes price consolidates, but that's even profitable.

Another indicator. I like stochastic on daily chart to get the bigger possible retracements. I also like pivots and fibs to decide price reaction to them.

Usually, when price move around pivot and goes to S1..most likely, will go thru S2, S3, etc.. and vice versa.

Hope these help. I know these pretty much basic.
  • #150
  • Nov 16, 2006 11:16am Nov 16, 2006 11:16am
Well, they have to be my mind, my body, the Absolute Fibonacci Framework and then anything else that seems to help - in that order.

The Framework is the only thing that I've found that consistently gives accurate predictions of currency moves. The currencies just seem to stick to it.
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The framework is there; we just have to work on our frame of mind.
  • #151
  • Nov 16, 2006 3:54pm Nov 16, 2006 3:54pm
SummitFX

COES Bandit? Is that a typo because when I daytraded back in the day, it was referred to as SOES bandit for Small Order Execution System.

Sun


P.S. What's the deal with this thread - at least 3 posters who are now banned including the infamous TRO who gets banned everywhere he shows up (including Tradestation although he has a alter ego there). Never lose by just watching the colors and getting 2 pips a trade.
  • #152
  • Nov 17, 2006 9:50pm Nov 17, 2006 9:50pm
Quoting twinchell
Wow, you've never lost a trade based on drawing a random line and candle color? Sounds like a kids coloring book.
Demo or live test this method and discover it is a very simple LOSING method of trading.

If trading like this were so easy everybody would do it and we would all be billionaires.

I lost 4 out of 5 trades last week in one day, only taking a 2 pip profit. This is not a good trade. TRO is a IB for some broker, and has been banned from many forums, and therefore discernment is needed as to what he says.
  • #153
  • Nov 17, 2006 9:59pm Nov 17, 2006 9:59pm
whats the fibonnaci framework?

Quoting niceguy777
Well, they have to be my mind, my body, the Absolute Fibonacci Framework and then anything else that seems to help - in that order.

The Framework is the only thing that I've found that consistently gives accurate predictions of currency moves. The currencies just seem to stick to it.
  • #154
  • Nov 17, 2006 10:00pm Nov 17, 2006 10:00pm
Quoting TheRumpledOne
Take profit when you can!!

Sometimes it is only 2 pips. Sometimes it is 3 or more.

I exit when I see the price action stall... that simple.

Stop loss? STOPS ARE FOR SISSIES!

I do NOT suggest that YOU trade without stops.

I can make a profit with 2 pips at my broker. So I usually don't think about losing.

If I am on the wrong side of the trade, I ride it out for days, weeks, months if I have to. I don't care because they pay me interest everyday rather than me paying them interest. I only trade in the direction that pays me interest. Simple.

But when I trade in the direction of the 60 minute candle, rarely do I have to wait long to take profit.

All you have to do is look at a 60 minute chart of your favorite pair and it will hit you right between the eyes once you SEE IT!!

I notice the rsi(8) and ema(8) method seems to agree with the candle color of the 15 minute candles... once again SIMPLE!
Notice how important the "broker" is in TRO's "simple system?"

"I want to make money off of you, so I will develop a very simple system where you go long anytime you want on a green bar and short on a red. I make several pips every time you trade. Simple!"
  • #155
  • Nov 17, 2006 10:14pm Nov 17, 2006 10:14pm
The Japanese candle techniques mixed with other indicators works best. These candle techniques will increase your winning trade ratio over any other indicator. But the best indicator is the price it self. Watch where its going by watching where its been. because trading against the overall trend will bury you.
A. Finesse Williams Making Millions One Pip At A Time!
  • #156
  • Nov 18, 2006 1:52am Nov 18, 2006 1:52am
I came across this thread today and realised I have been using a slightly different version of SummitFx's RSI.
This gives the user various options on reading price movement in the time frame it is used. It needs to be studied for a while in order to see what it's trying to tell you.It consists of a 7period and 10 period RSI, an 8Ema and all of this is wrapped in a standard 20.2 Bollinger bands.

The first thing you see is that if the 7RSI is below the 10RSI The market is bearish for this time period. In this case a 1Hr of Eur/Usd from friday. The last few hours on friday the 7 crosses above the ten showing the mood has changed to bullish. When this cross happens it's identical to a Vegas Tunnel 18/28 MA Crossover. The same goes for a bounce. The Bollinger bands usually contain the price action and show you when the 7Rsi moves outside the range it will pull back inside . Of course the main part is the 7RSI/8MA cross as disscussed earlier. Stay in the long trade while 7 RSI is above 8MA and basically be in a short trade if below. Do not rely on one indicator alone for any trade, always look for confirmation.

30XTCi
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Polishing my crystal ball
  • #157
  • Nov 18, 2006 4:43am Nov 18, 2006 4:43am
My favorite indicator is quotes themselves in bars.
I call it Primary Indicator & use with success.
Sometimes I use other indicators. It depends on market character.
Prof Herman
  • #158
  • Nov 19, 2006 9:01pm Nov 19, 2006 9:01pm
Quoting clam61
whats the fibonnaci framework?
It a method and proprietary indicator described in NiceGuy777's book "Left Brain Trading". The book incidentally is quite good in it's dealings with the psychology of trading. The framework is somewhat like the Murrey Math lines, but it seems more accurate. I use both together. Buy the book and you get the indicator for free.
  • #159
  • Nov 28, 2006 2:35pm Nov 28, 2006 2:35pm
first of all, i always love TRO.

he always comes in on any forum, yells some incoherent unclear directions and then says "simple"!

remember when TRO says he never closes a losing trade but just waits for it to come back?

now imagine, if you didnt have a stop on GBPUSD a few days ago..or waht if you didnt have a stop in march and you just watied for price to come back.

unless you trade $1 at a time, you really have that much margin to cover your @$$ or will price even ever come back to that price? there is no guarantee.

Quoting mikejody
Notice how important the "broker" is in TRO's "simple system?"

"I want to make money off of you, so I will develop a very simple system where you go long anytime you want on a green bar and short on a red. I make several pips every time you trade. Simple!"
  • #160
  • Nov 28, 2006 3:25pm Nov 28, 2006 3:25pm
Quoting clam61
first of all, i always love TRO.

he always comes in on any forum, yells some incoherent unclear directions and then says "simple"!

remember when TRO says he never closes a losing trade but just waits for it to come back?

now imagine, if you didnt have a stop on GBPUSD a few days ago..or waht if you didnt have a stop in march and you just watied for price to come back.

unless you trade $1 at a time, you really have that much margin to cover your @$$ or will price even ever come back to that price? there is no guarantee.
A lot of traders seem to 'wait for it to come back'. The beauty of the Absolute Fibonacci Framework is that you don't have to waste those extra pips by stopping out on a retracement. It will give you accurate targets that the currencies just go to and then retrace.
The framework is there; we just have to work on our frame of mind.
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