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The Daily Fozzy Method

  • #2,561
  • Oct 2, 2007 2:47am Oct 2, 2007 2:47am
Look .. AUD/USD.
  • #2,562
  • Oct 9, 2007 1:25am Oct 9, 2007 1:25am
G'Day All,

I can't recall if this bridge has been crossed or not, but it is a major dilema imho.

Attached are two charts,one esignal and one meta trader. The problem being for lovers of meta trader is that the Sunday bar distorts the Fozzy Indicator as well as whatever MA's you use.

From the attached charts meta trader gives a false cross26/09/07 and at time of typing the day 20 MA has a 42 pip discrepancy.Also the Bollinger Bands are distorted. This is from looking at feeds from Meta, Esignal and Saxo Bank.

Very curious as to the response as the indicators are critical parts of our analysis.

Regards

RBS
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  • #2,563
  • Oct 9, 2007 7:04am Oct 9, 2007 7:04am
Sorry, last post I refered to Meta and meant Interbank, so my question is there a Broker/feed that uses Meta trader and does not have the Sunday bar?

I'm a bit grey in this area so apologies if it's been covered

Thanks in advance

Regards

RBS
  • #2,564
  • Oct 9, 2007 7:11am Oct 9, 2007 7:11am
Quoting ratherbesailing
is there a Broker/feed that uses Meta trader and does not have the Sunday bar?
Thanks in advance
Regards
RBS
FXDD........
  • #2,565
  • Oct 9, 2007 8:10am Oct 9, 2007 8:10am
Broker-FXDD
Executed on 10/9/07 Bar
AUD/USD Sell -68 (hit 34 pip s/l)
GBP/USD Sell +111 (+40, then +71)
EUR/JPY Sell +90 (+40, then +50)

Profit +133 pips
  • #2,566
  • Oct 9, 2007 10:13pm Oct 9, 2007 10:13pm
Thanks BB,

is that what you use??

Regards

RBS
  • #2,567
  • Oct 9, 2007 10:22pm Oct 9, 2007 10:22pm
Quoting ratherbesailing
Thanks BB,

is that what you use??

Regards

RBS
Yes, primarily because there is no Sunday candle, but also because the 'trading day' begins at 5 PM ET.

But............I do look at other broker charts with different start times for Price Action recognition purposes: Alpari & IBFX
  • #2,568
  • Oct 10, 2007 4:01am Oct 10, 2007 4:01am
Quoting minute
First set RSI as usual, then drag MA from navigator window into the window of the RSI. Then select apply to first indicators data.

Repeat for bollinger bands.
I have tried this but when I drag the MA over the RSI it appears on the main chart. I can't get any other indicator to overlay the RSI.

I have only a Demo account at the moment. Any help would be gratefully accepted.
  • #2,569
  • Oct 10, 2007 7:13am Oct 10, 2007 7:13am
Quoting dj10gan
I have tried this but when I drag the MA over the RSI it appears on the main chart. I can't get any other indicator to overlay the RSI.

I have only a Demo account at the moment. Any help would be gratefully accepted.
as "another newbie" you should read the first 10 pages or so of this thread because your question has been asked several times before and answered. Personally I'm tired of reading questions that are answered in the early part of this thread because it tells me you haven't done your 'homework'.
  • #2,570
  • Oct 10, 2007 11:50am Oct 10, 2007 11:50am
Ahhhh - have not posted much recently. Time for a rant.


Were you expecting to see a list of Fozzy Rules here? Not a chance - the first 10 pages or so have it all.

Got to tell you - The Fozzy RULES! It is an easy way to get a heads up on a trade.

I've been at it for a bit now, (months...) and I am doing well. I combine it with the James16 Price Action stuff and I have a real solid winner. I've looked at it with PA, Trend Following and Anti-Hedging and they are all an excellent way to manage your trading activity with the Foz.

I also, out of curiosity, manually backtested for 18 months the 8 majors and simply looked to see that if I took *every* cross, how would I do? If you use proper money management and a 1 bar trailing stop, you will positively make money on each pair. MM is crucial. Don't leave home without it. Have enough in your account and you will be able to quit your day job and golf all day.

I don't know if this will work forever - and I do know that it is not great for a tightly ranging market (what is??) but I can tell you this - Looking at the charts over several decades you will see that market PA remains the same. I see nothing that will change that - hence Fozzy is a keeper.

Love the Foz. It is simple and combines beautifully with other real trader methods.

But PLEASE - don't take my word for it - test it out and see for yourself. If this method does not sitwith yu well, then positively do not use it. Trading is an intensely persoanl thing and you need a method that fits YOU.

There is one shortcut I know of. The short cut to bust.
I'm pretty much done with all this ...
  • #2,571
  • Oct 10, 2007 12:06pm Oct 10, 2007 12:06pm
StoragePro rocks............... And he tells it like it is!
  • #2,572
  • Oct 11, 2007 4:16am Oct 11, 2007 4:16am
I would like to ask you guys how did you deal with fozzy these days, as it gave a lot of fake crosses on both sides for many pairs. For example, for Aud Usd, Fozzy was giving a short signal for 3 days, while the pair was up rallying strong. Chf Jpy kept on making crosses every day for both buy and sell. Same for Eur Jpy. In the end, I started trading 4 H fozzy rather than the Daily, because it proved to be much more reliable.

If BB or other seasoned Fozzy traders can give some ideas for future similar situations, that would be really grate.
We leave no soldier behind.
  • #2,573
  • Oct 11, 2007 4:42am Oct 11, 2007 4:42am
Quoting gagiul
I would like to ask you guys how did you deal with fozzy these days, as it gave a lot of fake crosses on both sides for many pairs. For example, for Aud Usd, Fozzy was giving a short signal for 3 days, while the pair was up rallying strong. Chf Jpy kept on making crosses every day for both buy and sell. Same for Eur Jpy. In the end, I started trading 4 H fozzy rather than the Daily, because it proved to be much more reliable.

If BB or other seasoned Fozzy traders can give some ideas for future similar situations, that would be really grate.
gagiul............

First, I disagree with this statement: "for Aud Usd, Fozzy was giving a short signal for 3 days". The RSI has just been bouncing along under the MA; that's not a 'signal'. If anything, that's a warning flag indicating indecision. A serious CROSS is a signal. One the traders who has posted in this thread recently will only accept a cross that has a 6 point or greater difference in value; great filter IMO.

Second, this statement reflects advanced Fozzy-style trading: "I started trading 4 H fozzy rather than the Daily, because it proved to be much more reliable." Now you are really making the best use of this method; again it's only my opinion.

Lastly, I suggest adding Price Action to your trading; it really improves the quality of your trades. Have you studied this:

http://www.forexfactory.com/showpost...47&postcount=1
  • #2,574
  • Oct 11, 2007 5:07am Oct 11, 2007 5:07am
well, i think I got your idea about the 6 points - i measured it on the aud usd bearish cross (the last cross actually) and it was 8 points... the thing that worried me was that in spite of all the rally on Aud Usd, the Fozzy just wouldnt cross up, so I thought this might be the sign of a future fall. Of cos, I was wrong. Today Fozzy will finally give a bullish cross on the daily.

About the price action, you are right, I started to read it, and actually I made a good trade with Eur Jpy from yesterday - a pinbar on the Oct 9, then yesterday a fozzy cross and price above previous resistance was just a perfect setup for a long.

But from now, PA plus 4H Fozzy looks more prone to success.
We leave no soldier behind.
  • #2,575
  • Oct 11, 2007 5:23am Oct 11, 2007 5:23am
Quoting gagiul
well, i think I got your idea about the 6 points - i measured it on the aud usd bearish cross (the last cross actually) and it was 8 points... the thing that worried me was that in spite of all the rally on Aud Usd, the Fozzy just wouldnt cross up, so I thought this might be the sign of a future fall. Of cos, I was wrong. Today Fozzy will finally give a bullish cross on the daily.

About the price action, you are right, I started to read it, and actually I made a good trade with Eur Jpy from yesterday - a pinbar on the Oct 9, then yesterday a fozzy cross and price above previous resistance was just a perfect setup for a long.

But from now, PA plus 4H Fozzy looks more prone to success.
The previous bearish cross was against a very strong trend line.....not ideal. Also, the PA on the Daily proved to be a double top (the low of the second candle was broken by only 2 pips right up against the TL). That pattern proved to a trend continuation signal; up and out of the triangle that had formed.

The previous bullish cross on this pair was good for 400+ pips right after a BUOB.

PA rules when used with Fozzy crosses!
  • #2,576
  • Oct 11, 2007 6:06am Oct 11, 2007 6:06am
Quoting BeachBum
as "another newbie" you should read the first 10 pages or so of this thread because your question has been asked several times before and answered. Personally I'm tired of reading questions that are answered in the early part of this thread because it tells me you haven't done your 'homework'.
You are absolutely correct I hadn't done my homework thoroughly enough. Many apologies. I followed your suggestion and now understand what tod

Many Thanks.
  • #2,577
  • Oct 12, 2007 7:48am Oct 12, 2007 7:48am
FWIW -

Beach has it correct - Price Action is something you should positvely learn - and that includes paying attention to trendlines.

I also stick with the trend (ok - mostly ) as I find that the crosses in agreement with the overall trend tend to be valid, and yield more pips. If these crosses are losers, I tend to lose less - which is a critical component of successful trading.

The occassional times I will not go with the trend on a trade is when we hit a Price Pivot Zone (see the James16 thread about this) and I get confirming Price Action with a cross.

IMHO, trading is a losers game. He who loses the least, wins. Money Management and stops are king. (You can make a boatload of dough with under a 50% success rate - believe it or not!)

One more thing - I do NOT trade the 4hr. Personal preference - and I work a full time job. Personally, I never wish to do that. Dailies are great for me. Others love the 4 hr charts, and more power to them. Their personality lends itself to this timeframe. I learned the hard way that the daily is my best friend. Your journey will be very personal, you will have to find what fits your personal psychology and temperament. Once you do, you'll blossom. The mechanical aspects of trading are pretty simple. Take that to the bank!

Happy trails and success to you!

Ciao!


Quoting gagiul
I would like to ask you guys how did you deal with fozzy these days, as it gave a lot of fake crosses on both sides for many pairs. For example, for Aud Usd, Fozzy was giving a short signal for 3 days, while the pair was up rallying strong. Chf Jpy kept on making crosses every day for both buy and sell. Same for Eur Jpy. In the end, I started trading 4 H fozzy rather than the Daily, because it proved to be much more reliable.

If BB or other seasoned Fozzy traders can give some ideas for future similar situations, that would be really grate.
I'm pretty much done with all this ...
  • #2,578
  • Oct 12, 2007 10:14am Oct 12, 2007 10:14am
Quoting StoragePro
FWIW -

Beach has it correct - Price Action is something you should positvely learn - and that includes paying attention to trendlines.

I also stick with the trend (ok - mostly ) as I find that the crosses in agreement with the overall trend tend to be valid, and yield more pips. If these crosses are losers, I tend to lose less - which is a critical component of successful trading.

The occassional times I will not go with the trend on a trade is when we hit a Price Pivot Zone (see the James16 thread about this) and I get confirming Price Action with a cross.

IMHO, trading is a losers game. He who loses the least, wins. Money Management and stops are king. (You can make a boatload of dough with under a 50% success rate - believe it or not!)

One more thing - I do NOT trade the 4hr. Personal preference - and I work a full time job. Personally, I never wish to do that. Dailies are great for me. Others love the 4 hr charts, and more power to them. Their personality lends itself to this timeframe. I learned the hard way that the daily is my best friend. Your journey will be very personal, you will have to find what fits your personal psychology and temperament. Once you do, you'll blossom. The mechanical aspects of trading are pretty simple. Take that to the bank!

Happy trails and success to you!

Ciao!

You both have it correct SP and BB! I also stick with the dailies for primary entry and trade decisions and use the higher TF's for an overview of market movement. James16 ROCKS!!! I highly suggest anyone looking to trade the Fozzy or any method for that matter go read up on Price Action.

Yes Fozzy gives excellent trade signals but we CANNOT forget the basics; Support & Resistance, Trend lines, Candle/Bar Formations, These basics have been around for decades and work very well. But when you understand them and understand a method like Fozzy you are able to combine them to create your own powerful system.

Now I have a question for someone who has the ability to do a little programming for an indicator.

Is it possible to have the basic Fozzy RSI + MA (without BB) put into a singal indicator but with the added painting of an arrow above/below the candle that meets the 6 point filter? It's not that I can't do the math it's just that I am a visual kind of guy. I like to be able to scan my charts quickly and have them speak to me. This way my 3 year old can say "daddy there's a signal on your screen"
Nothing is impossible, with a willing mind!
  • #2,579
  • Oct 12, 2007 10:20am Oct 12, 2007 10:20am
StoragePro and Trader_V.......

Two excellent posts: it's very nice to have posts from those who have only posted a few times in the past!

TV...........just so you and I are on the same page; 6 point filter?
Do you have the Fozzy indicators created a long time ago by miscon777? (If not, search the attachments on this thread.)
  • #2,580
  • Oct 12, 2007 10:54am Oct 12, 2007 10:54am
Ok got another question for some of you folks. clearly Money Management is the key to sucessful trading combined with a decent system.

As most of you probably do as I do; I like to scale out of my trades. But I am interested to know how do some of you manage your trades after you have entered.

For instance:

Do you move your SL to break even after the market has moved a certain amount of pips in your direction and take partial profit?

Do you Look for your first TP at areas of S/R, take partial profit and move SL to break even?

You get the idea. I am looking to see if we can get a dialog started on how some of you guys manage your trades once you are in.

I started using an EA developed by Stockwet to help manage my trades when I am not there and it seems to perform pretty well so far.
Nothing is impossible, with a willing mind!
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