any one watching DOW chart. this is situation on H4 now {image} look at perfect retracement on fib. almost to the pip. if the current candle or next candle closes below 10 ema channel and both rsi below 50, it will be a good opportunity to go short.
Guppy's Multi-Moving Average (GMMA)
- #583
- Jun 6, 2022 6:18pm Jun 6, 2022 6:18pm
- Joined Feb 2019 | Status: Trader | 1,020 Posts
learning to trade in forex.
two trades yesterday in demo account, same rules and H1 chart
short EU
short AU
two trades yesterday in demo account, same rules and H1 chart
short EU
short AU
- #584
- Jun 6, 2022 8:22pm Jun 6, 2022 8:22pm
- Joined Feb 2019 | Status: Trader | 1,020 Posts
EU RSI below 20. so trailed SL @ previous candle high which got triggred
good trade following all rules of the system
good trade following all rules of the system
- #585
- Jun 7, 2022 2:57am Jun 7, 2022 2:57am
- Joined Feb 2019 | Status: Trader | 1,020 Posts
learning to trade in forex. two trades yesterday in demo account, same rules and H1 chart short EU {image}{image} short AU {image}{image}
- #587
- Jun 7, 2022 6:10am Jun 7, 2022 6:10am
- Joined Feb 2019 | Status: Trader | 1,020 Posts
EU reentry on same rules. T3 acheived but i have set my target slightly lower. EU is in a downtrend .... continuation pattern on D1 
- #588
- Jun 7, 2022 6:44am Jun 7, 2022 6:44am
- Joined Feb 2019 | Status: Trader | 1,020 Posts
sudden reversal in EU. Fortunately my stoploss was @ BE
- #589
- Jun 7, 2022 9:16am Jun 7, 2022 9:16am
- Joined Jan 2013 | Status: Trader | 4,386 Posts
MA provides the market's current direction and strength.
- #590
- Jun 11, 2022 8:56am Jun 11, 2022 8:56am
{image} the importance of fibo targets cannot be overstressed. after hitting T2 to the pip, price retraced well beyond T1 at market close. if i had not booked at T2, my profit would have been significantly less. second important point is to trail SL at previous candle high/low if Rsi 6 goes below 20/80.... so if my T2 would not have triggred, by trailing SL to previous candle high, i would have retained significant part of my profit.
- #591
- Edited 2:21pm Jun 11, 2022 12:45pm | Edited 2:21pm
- Joined Feb 2019 | Status: Trader | 1,020 Posts
{quote} Could you pls share the setting or T1, T2, T3, T4, T5. 132% 161% etc
- #592
- Jun 13, 2022 8:39am Jun 13, 2022 8:39am
- Joined Feb 2019 | Status: Trader | 1,020 Posts
Not good entry. {image} {image}
excellent entries in GJ H1 chart yesterday and today. entry marked in blue one exit marked in red. second trade still running. as per our guppy trading rules.
- #593
- Edited 9:32am Jun 13, 2022 9:19am | Edited 9:32am
- Joined Feb 2019 | Status: Trader | 1,020 Posts
Not good entry. {image} {image}
i very rearly scalp on M1 charts, but whenever i do, these are the rules i follow. the above settings work perfectly for me.
ema 240 is as good as trading H4 in MI
RSI 60 & 90 crosover works best with ema 240 for entry.
most important is that the daily candle has to be bearish if you are going short. so we are trying to identify a significant pullback in the daily trend and enter continuation pattern at the earliest.
edit : forgot to write a very imp rule in the picture, " the ema 240 should be magenta color on entry candle "
- #594
- Jun 13, 2022 9:29am Jun 13, 2022 9:29am
- Joined Feb 2019 | Status: Trader | 1,020 Posts
in fact a possibility to go short on GJ is developing right now
- #595
- Jun 13, 2022 9:44am Jun 13, 2022 9:44am
- Joined Feb 2019 | Status: Trader | 1,020 Posts
in fact a possibility to go short on GJ is developing right now
- #596
- Jun 14, 2022 7:32am Jun 14, 2022 7:32am
- Joined Feb 2019 | Status: Trader | 1,020 Posts
{quote} on H1 price is approaching first fibo resistance. that is what i mean by "significant pullback"{image}
1) the candles closed below the 10 ema channel ( marked by white line). but there was no rsi crossover...... so no valid entry.
2) eventually the retracement was exactly upto 50% of fibo ( note 3 candles touching the 50 % mark)...... this is a healthy retracement.
3) the continuation candle closed below the 10 ema channel and there was rsi crossover ( green vertical line)...... perfect entry as per our rules.
about targets :
T1 and T2 easily acheived.
again note a) three candles touching T1 for support. but none closing inside the ema channel .... indicating weak support.
b) once T1 was broken T2 was easy
c) all candles closing outside ema channel ..... strong downtrend
d) rsi 6 below rsi 12 and both below 50...........strong downtrend
- #597
- Edited 9:30am Jun 15, 2022 5:45am | Edited 9:30am
Before I discovered GMMAs I used Nial Fuller's approach based on the 8 and 21 EMAs, horizontal (or fixed) levels and setups using inside bars and pinbars (that's it in a nutshell - doesn't do justice to it). Although it made sense, something about it never 'gelled' for me and I moved on to using just the EMAs as dynamic S/R levels and pullbacks to the EMAs. And that worked very well for me for quite some time. Then I discovered GMMAs and the Walvekar method, which, in combination, provide a complete package of trend identification and trend continuation, plus specific methods for entry and exit. But still, the 8 and 21 EMAs remained my comfort zone.
With the Walvekar influence I started combining the 8 and 21 EMA pullback approach with the long-term GMMAs, and that's where I am now. I use inside bar and two-bar pullbacks to the EMAs and stop orders for entries. This is what it looks like when all put together.
With the Walvekar influence I started combining the 8 and 21 EMA pullback approach with the long-term GMMAs, and that's where I am now. I use inside bar and two-bar pullbacks to the EMAs and stop orders for entries. This is what it looks like when all put together.
Conservative stop placement saves the day
I placed this trade yesterday using a sell stop order as shown, hoping that it would break through that recent support level on the 5th attempt, but price retraced yet again and it almost got stopped out. What saved the trade was using not the nearest high for the stop, but the one next higher, as shown on the chart. While this conservative approach requires me to use a smaller lot size, it saved this trade and has done many times previously. I have adopted this approach as standard practice.
I placed this trade yesterday using a sell stop order as shown, hoping that it would break through that recent support level on the 5th attempt, but price retraced yet again and it almost got stopped out. What saved the trade was using not the nearest high for the stop, but the one next higher, as shown on the chart. While this conservative approach requires me to use a smaller lot size, it saved this trade and has done many times previously. I have adopted this approach as standard practice.
Part 2 of this trade
After most periods of consolidation there is usually a breakout. It happened here too - my second bit of luck! But it does make a case for seeking out such pauses in a downtrend and attempting to catch the breakout when it happens, given that it is somewhat predictable.
I have placed an optimistic target of 200 pips and am using a trailing stop to lock in profit as price makes its way down. If I never get to the target there will still be some reward.
After most periods of consolidation there is usually a breakout. It happened here too - my second bit of luck! But it does make a case for seeking out such pauses in a downtrend and attempting to catch the breakout when it happens, given that it is somewhat predictable.
I have placed an optimistic target of 200 pips and am using a trailing stop to lock in profit as price makes its way down. If I never get to the target there will still be some reward.
After most periods of consolidation there is usually a breakout. It happened here too - my second bit of luck! But it does make a case for seeking out such pauses in a downtrend and attempting to catch the breakout when it happens, given that it is somewhat predictable. {image}
