sorry, Fxhermit, had no chance to review the posts yesterday. Trading this pattern suits my style and it works for me. It is really an individual call if anyone wants to incorporate the pattern into their arsenal of setups. Someone can trade H&S - I do not, there are Gartley butterflies and crabs that may prove profitable for great traders but there is less chance for me, I know that. All because I am in the constant search of what should work for me. Like the market which tries to live its own life and creates new patterns, a trader can follow them and build her/his system upon them. I am sure over time we shall find something else exciting (profitable I mean, he-he..). I thank you for your kind words - I am no wiser than your market observations such as the elephant and the flee, they are part of my trader's vocabulary! I might repeat Pips' pieces of wisdom that I am learning from all of you.
P.S. btw, still short eur/chf and usd/chf. We had new reversal candles which bounced off the inside top and it confirmed to keep my shorts. Eur/chf is definitely the best which is my developing story and it will have a happy ending.
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. Happy pipping!
Terriffic observation, Palmer. I would like to add that, if you'll notice, on your chart the 100 fib line if extended to the left coincides with previous tops and that is probably why it acted as resistance as your Fib has marked it. I would also like to say that when price is "trapped between the Fib's as you have shown, we are apt want to know when and in which direction that we may expect the breakout. Well, this is where the moving averages often work their magic. Your chart has a beautiful example of the price becoming trapped between two moving averages while at the same time as it is trapped between your Fib's. I often pay attention when the MA's trap price during a trading range, it is often the heads up to the breakout and I have on occassion even entered a trade early on that setup alone.
....Dollar-yen also had a nice price rejection from the inside top this morning and I took the chance. Looks like yen crosses are going home today to bears (maybe, to Jasper Friendly Bear's, too?). Eh-he-he, I was wrong by exactly a week about the yen bottom thinking it would be on May 17th. The yen index probably touched it today. Your call, folks, if I am to be ostracized from this thread...My piggy is also angry with me...
My avatar shows my mood, too.
No bullish pinbars on yen crosses today, allright? What does it say?
I am using this 4 Hour strategy only for the last month as I have papertraded for 2 years trying everything and or system I could find. (I am trading equities for almost 10 years)I have decided that I will only go live(after some losses-not to serious) after I have studied the field of forex and are satisfied that I have a system that works. I do believe that we are trying to make it to impressive and difficult. This system is simple and easy to understand. I have backtested and forward tested it over more than 200 trades and it gives 300+ pips per month. I never had more than two consecutive losses. I never use a stoploss bigger than 50. There are enough chances to ignore the ones bigger than 50.
I am using this strategy only on the EurUsd and the GbpUsd. Have not tested it on other.
I hope that you will find some use for it and that it put you on the road to financial independence.
EDIT: For a summary of the 4 hour system go to page 289 Post 4335.
