DislikedIf I am to follow the path of the small daily gain is the best tactic to monitor as many pairs as possible or to focus on one or two pairs and gain a better understanding of their movement.Ignored
felicia, I just came across this threat and the cornflower system. it looks like a pretty good one. I'll check it out and keep you posted. Thanks for sharing. Bob
- #203
- May 26, 2007 9:00pm May 26, 2007 9:00pm
- | Membership Revoked | Joined Dec 2005 | 2,298 Posts
Same Whore .... Different Dress
- #214
- Edited 12:31am May 30, 2007 12:02am | Edited 12:31am
Don't get hung up on the cross. The cross will inevitably lag the price action. We don't trade crosses; we trade price movement.
but i just encircled the cross to give it more emphasis but I waited for the right moment before I placed my buy.
- #215
- Edited 1:52am May 30, 2007 12:58am | Edited 1:52am
hello felicia,
I like to use this system on the eur/usd but I can't find the exact spot on where to enter. As I looked at the charts today, price just penetrated the 72 ema and seems like going back up again. What should I do here guys.
edit: i placed a sell at the gpb/usd today
I like to use this system on the eur/usd but I can't find the exact spot on where to enter. As I looked at the charts today, price just penetrated the 72 ema and seems like going back up again. What should I do here guys.
edit: i placed a sell at the gpb/usd today
- #216
- May 30, 2007 3:34am May 30, 2007 3:34am
hello felicia,
I like to use this system on the eur/usd but I can't find the exact spot on where to enter. As I looked at the charts today, price just penetrated the 72 ema and seems like going back up again. What should I do here guys.
edit: i placed a sell at the gpb/usd today
In the beginning of this thread I posted regarding different kinds of entries. Somehow that post got deleted. So here we go again:
http://img297.imageshack.us/img297/8...examplebd0.jpg
#1: On December 5th, price thrusts down below the 72 EMA and a new downtrend begins. Price pulls back all the way to the 24 EMA, providing an opportunity for a short entry. Price then declines 60 pips, providing ample opportunities for profit-taking. Then on December 6th and 7th, price pulls back to the 12, 24, and 72 EMAs in turn. A new trend is sometimes risky to trade because traders are still deciding whether a new trend exists. So long as this indecisiveness is apparent, the previous trend will try to reassert itself. However, if one were to trade the first 12 EMA pullback, there is still a 30 pip decline before price ascends to touch the 72 EMA.
Notice how the shorter EMAs don’t unravel, even though price retraces all the way up to the 72 EMA. You can assume that a trend is still intact until the shorter EMAs turn around in the other direction. When that does happen, you should switch to a 30M timeframe and wait for an initial signal in the direction of the shorter EMAs. If they had turned around here, you would not want to have entered short. As it happened, price bounced off the 72 EMA and started moving down again. Once the 8 and 12 EMAs dip below the 24 EMA, we know that it is safe to enter short.
#2: December 7th gives up an example of a 12 EMA bounce. There are two opportunities for short entries for at least 20 pips.
#3 December 8th gives an example of why one should be out of the market before non-farm payroll. GBPUSD shoots up over 100 pips on the NFP announcement. Once the announcement hits, however, we have a clear entry to go long and an opportunity for at least a 20 pip profit before a violent retracement takes cable lower again.
#4 December 10th gives a nice example of a 24 EMA entry. But it also gives us an example of volatility. If you had placed an entry order at the 24 EMA, you would have been dismayed to see price going nearly 30 pips against you before turning around. This demonstrates the importance of risk control and money management. Cornflower is not a system that allows you to trade at 200:1 margin on every trade. You must allow you positions time and space to work. This is true of any system that takes its signals from longer term charts. We will discuss entry timing techniques later in this document.
#5 and #6 are examples of a slow uptrend. When price is slowly moving in one direction it pays to wait for a 24 EMA pullback. There are three such pullbakcs here.
#7 shows price finding support after a steep selloff. The 72 EMA represents the average of three days of price activity, and price very often finds support here.
