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  • #781
  • Jan 8, 2008 6:45pm Jan 8, 2008 6:45pm
Nope, I entered my trade at 0957 EST.

Good thinking, though.

Thanks!

Quoting PipAV8tor

Also, for Jeff

There was an announcement, US consumer Credit at 3 EST that could have caused your "bump". It was much better than expected so it could have had an effect.
Jeff Singer, K2KV
  • #782
  • Edited Jan 9, 2008 8:41am Jan 8, 2008 6:47pm | Edited Jan 9, 2008 8:41am
The LFB team has a GREAT post on the news side. It explains a lot about indicators and trending vs. channeling markets. It was a great review for me and would be excellent for newbies to expand their knowledge. Check it out if you can.

Link: http://forexfactory.com/news.php?do=news&id=63996

Just saw this in another thread and it rang a bell with me:

"Despite how good a trade setup is and how much time you’ve contributed to it’s technical or fundamental analysis, you should never get caught up in the illusion that the market has sympathy for your efforts. The perfect setup does not guarantee the perfect trade, in fact, it does not guarantee even the most modest of trades.

It is important that we understand this because in this business the only thing we have control off, is how fast we can loose our money, everything else is left to forces too powerful for us to reckon with.

You're always wrong until the market proves you otherwise by blessing you with a profitable trade."
  • #783
  • Edited 8:14am Jan 9, 2008 7:41am | Edited 8:14am
hey pip,

I've been experimenting with using just the 5-3-5 stoch cross (it's a bit smoother than 5-3-3 for M5 timeframe on GBPJPY) for entry on M5 with MACD for confirmation. Three trades this morning, +20,+20,+10 and now I'm done for the day. Since M5 ranges all day, seems like a very active strategy with a ton a trade oppoutunities. Also seems to work well on other volatile pairs. Less volatile pairs might work better with a 5-3-3 stoch setting.

I think this is a very tradeable strategy (I need to write down the rules for entry) and one I'll be using for the next few weeks. Looks like it may be good for harvesting easy pips rather than waiting for good setups on longer time frames and not trading at all (for those that want to be more active). You can trade the range using this and wait patiently for the longer time frame setups to come and avoid jumping on to a longer time frame trade that is not a good setup. If you do catch one that runs based on a longer time frame, you should have a good entry point. That can be identified by simply changing the timeframe once you are up say 20 pips. If there is no clear setup on the longer time frame, exit with you pips and wait for the next move - usually within the hour.

What do you think of MACD for confirmation?

I have 5-13-1 for my macd settings and they are the same as the settings of that very popular 4 Hour Strategy (MACD) thread. By the way, that is an excellent thread.

And MACD has decent pattern recognition on M5. Since MACD is also a moving average osscilator, it seems like they are a good complement for each other without having indicatoritis.

BTW, just entered my forth short. Guess I'm not done for the day yet.

Cheers,
CanuckCT

Quoting PipAV8tor
Hey everyone,

As you know, I am not a big fan of scalping, but I may be having a change of heart. I have been playing with the Slow Stoch on the 5 min GBP/JPY chart. Using the 5,3,3 setup, there are some very predictable and profitable moves that occur in high volatility times. The reason I mention this is because it does fit in with my philosophy of taking 3-5 pips at a time. Most moves seem to cover a 20-30 pip range in 15-30 minutes. I would like some feed back from some of you other stoch folks, are you seeing what I am seeing and can it really be that easy to make 10-20 pips a day off of a 5 min chart? I'm not sure how it would work on other pairs, but with this pair, the volatility is almost always there. Let me know what you think...
Attached Image
  • #784
  • Jan 9, 2008 8:13am Jan 9, 2008 8:13am
Hi Canuck,

Nice work this morning!

I'd be most interested in seeing your rules, once you put them into place.

Are you entering on simple swings, or are you waiting for the 5.3.5 to first go ob/s?

Was a beautiful day here on Long Island yesterday, with temps over 60f. After I returned from lunch I went for a bike ride, which felt great and really cleared my head. Probably won't get to do that again until mid-March!

Thanks!


Quoting CanuckCT
hey pip,

I've been experimenting with using just the 5-3-5 stoch cross (it's a bit smoother than 5-3-3 for M5 timeframe on GBPJPY) for entry on M5 with MACD for confirmation. Three trades this morning, +20,+20,+10 and now I'm done for the day. Since M5 ranges all day, seems like a very active strategy with a ton a trade oppoutunities. Also seems to work well on other volatile pairs. Less volatile pairs might work better with a 5-3-3 stoch setting.

I think this is a very tradeable strategy (I need to write down the rules for entry) and one I'll be using for the next few weeks. Looks like it may be good for harvesting easy pips rather than waiting for good setups on longer time frames and not trading at all (for those that want to be more active). You can trade the range using this and wait patiently for the longer time frame setups to come and avoid jumping on to a longer time frame trade. If you do catch one that runs based on a longer time frame, you should have a good entry point. That can be identified by simply changing the timeframe once you are up say 20 pips. If there is no clear setup on the longer time frame, exit with you pips and wait for the next move - usually within the hour.

What do you think of MACD for confirmation?

I have 5-13-1 for my macd settings and they are the same as the settings of that very popular 4 Hour Strategy (MACD) thread. By the way, that is an excellent thread.

And MACD has decent pattern recognition on M5. Since MACD is also a moving average osscilator, it seems like they are a good complement for each other without having indicatoritis.

BTW, just entered my forth short. Guess I'm not done for the day yet.

Cheers,
CanuckCT
Jeff Singer, K2KV
  • #785
  • Edited 12:57pm Jan 9, 2008 9:01am | Edited 12:57pm
Canuck,

The default setting for Mac-d on my platform is 12,26,9 and I think that is very good for the 15 and larger time frames. For the 5 min, the 12,20,9 works well, as it reflects more recent history. Other smaller numbers may work, but I try to use mac-d to find divergence, so you want a sampling of many recent candles. The stoch will and should initially be somewhat opposite of mac-d when you first think of entering. The mac-d used in conjunction with the stoch helps to find duration of a move and shows when momentum is with you or changing. The stoch is definitely the lead indicator and can be used all by itself (IMHO) for trading on the 5 min chart. However, if you read the post from The LFB, during trending markets, when the stoch tends to stay ob/s for longer periods of time, it loses some amount of accuracy and that is where the mac-d really becomes valuable for duration. I think trading the 5 min is still risky and the s/l should remain tight, but as you noted and as Spud pointed out, there are literally a hundred opportunities a day. To get 10-20 pips a day seems almost too easy. I plan to keep doing the demo trading with it this week, but I plan to use it in my live account next week, unless I find a flaw.

Update as of 2 pm est.
2 trades today, using the 5 min chart and 5,3,3 stoch. +36 pips and +18 pips. both as sell.
  • #786
  • Jan 9, 2008 1:52pm Jan 9, 2008 1:52pm
Hi guys.

I see a few of you are trading the G/J and I also see your looking for 5 pips..

I have been trading the G/J for many years and I hope I can add something to your trading to help you ,also newbie stay away from this pair......you need several years experince and a large account......Trust me..lol

The G/J retraces from a move it will nearly always go to the 5sma, so follow it back up and set your TP at the 5sma on the 1hr/4hr and daily, the stronger the move the bigger the pull back.
If you have a big move on the 1hr or 4hr candle wait for the next candle look for a pin bar or head and shoulders and the new candle will retrace.
The G/J ( as all JAP pairs do) love fib no's...so look to the fib lines or in my case MM lines.
I never trade this pair off anything below 1hr.....anything below this TF is suicide.
Use the 5sma as your SL.......therefore be prepared to have a 100 pip + SL..
I have a special chart setup just for the G/J....
Remember this pair have historical spent more time long then short.

And as a side note......I would take anywhere from 100-300 pips a day out of the G/J...

I hope this helps, keep up the good work..

Glenn
  • #787
  • Jan 9, 2008 2:03pm Jan 9, 2008 2:03pm
I forgot to add the G/J follows the DOW index.....

Glenn
  • #788
  • Jan 9, 2008 2:32pm Jan 9, 2008 2:32pm
Hi Glenn,

Thanks for your insight.

The 5sma is a great way to see your risk right in front of you. Another contributor some time back had suggested the 4ema +15 for SL and it also seems to hold well for this particular pair. That is, as long as you've got the stomach to watch your price go there!

Good trading!

Quoting glenn5t
Hi guys.

I see a few of you are trading the G/J and I also see your looking for 5 pips..

I have been trading the G/J for many years and I hope I can add something to your trading to help you ,also newbie stay away from this pair......you need several years experince and a large account......Trust me..lol

The G/J retraces from a move it will nearly always go to the 5sma, so follow it back up and set your TP at the 5sma on the 1hr/4hr and daily, the stronger the move the bigger the pull back.
If you have a big move on the 1hr or 4hr candle wait for the next candle look for a pin bar or head and shoulders and the new candle will retrace.
The G/J ( as all JAP pairs do) love fib no's...so look to the fib lines or in my case MM lines.
I never trade this pair off anything below 1hr.....anything below this TF is suicide.
Use the 5sma as your SL.......therefore be prepared to have a 100 pip + SL..
I have a special chart setup just for the G/J....
Remember this pair have historical spent more time long then short.

And as a side note......I would take anywhere from 100-300 pips a day out of the G/J...

I hope this helps, keep up the good work..

Glenn
Jeff Singer, K2KV
  • #789
  • Jan 9, 2008 3:00pm Jan 9, 2008 3:00pm
This is a trade I have right now just to show the setup working...

I will up date this trade later..

Glenn
Attached Image (click to enlarge)
Click to Enlarge Name: gj2.gif Size: 35 KB
  • #790
  • Jan 9, 2008 3:05pm Jan 9, 2008 3:05pm
Closed the trade on the 3/8 line as the momentum shows a fall back...profit of 70 pips.....

Glenn
Attached Image (click to enlarge)
Click to Enlarge Name: gj3.gif Size: 25 KB
  • #791
  • Jan 9, 2008 3:19pm Jan 9, 2008 3:19pm
To add why I exited the trade when my indicators showed a possible strong move long....

the time is between NEW YORK close and TOKYO open therefore low volume and its against the present trend...

I will wait till TOKYO stock market opens then see if the move will contiune..
  • #792
  • Jan 9, 2008 3:20pm Jan 9, 2008 3:20pm
Nice trading, Glenn,

Thanks for sharing your setup; very clear, very helpful.

Do your fib lines redraw automatically once per day?


Quoting glenn5t
Closed the trade on the 3/8 line as the momentum shows a fall back...profit of 70 pips.....

Glenn
Jeff Singer, K2KV
  • #793
  • Jan 9, 2008 3:24pm Jan 9, 2008 3:24pm
Quote
k2kvNice trading, Glenn,

Thanks for sharing your setup; very clear, very helpful.

Do your fib lines redraw automatically once per day?
Thankyou....after 7 years you would think I have learned something...lol

Yes the Murry Math lines draw automatically.....working of the Gann octaves...

Glenn
  • #794
  • Jan 9, 2008 3:24pm Jan 9, 2008 3:24pm
The market seems more active than usual for this time of day. Nevertheless, I also prefer not to trade when volume is down, since the market tends to drift off in all directions.

Tnanks...

Quoting glenn5t
To add why I exited the trade when my indicators showed a possible strong move long....

the time is between NEW YORK close and TOKYO open therefore low volume and its against the present trend...

I will wait till TOKYO stock market opens then see if the move will contiune..
Jeff Singer, K2KV
  • #795
  • Jan 9, 2008 3:28pm Jan 9, 2008 3:28pm
Your time in the game sure does make a big difference. Experience is something we just can't buy!

Thanks for the Murray Math info!


Quoting glenn5t
Thankyou....after 7 years you would think I have learned something...lol

Yes the Murry Math lines draw automatically.....working of the Gann octaves...

Glenn
Jeff Singer, K2KV
  • #796
  • Jan 9, 2008 3:29pm Jan 9, 2008 3:29pm
Should also add the following pic..

I hope this helps..
Attached Image (click to enlarge)
Click to Enlarge Name: gj3.gif Size: 29 KB
  • #797
  • Jan 9, 2008 3:48pm Jan 9, 2008 3:48pm
Hi Glen, I would love to know more about your strategy. What are the settingd for the indicators and how you use them. Are you consistently getting that many pips a day from the geppy...if so great?? What is the indicator on the screen and how are you using it...the one dividing things into 1/8, 2/8 etc? Thank you...I am intrigued...Joe

Quoting glenn5t
Hi guys.

I see a few of you are trading the G/J and I also see your looking for 5 pips..

I have been trading the G/J for many years and I hope I can add something to your trading to help you ,also newbie stay away from this pair......you need several years experince and a large account......Trust me..lol

The G/J retraces from a move it will nearly always go to the 5sma, so follow it back up and set your TP at the 5sma on the 1hr/4hr and daily, the stronger the move the bigger the pull back.
If you have a big move on the 1hr or 4hr candle wait for the next candle look for a pin bar or head and shoulders and the new candle will retrace.
The G/J ( as all JAP pairs do) love fib no's...so look to the fib lines or in my case MM lines.
I never trade this pair off anything below 1hr.....anything below this TF is suicide.
Use the 5sma as your SL.......therefore be prepared to have a 100 pip + SL..
I have a special chart setup just for the G/J....
Remember this pair have historical spent more time long then short.

And as a side note......I would take anywhere from 100-300 pips a day out of the G/J...

I hope this helps, keep up the good work..

Glenn
  • #798
  • Jan 9, 2008 4:12pm Jan 9, 2008 4:12pm
Quote
jcarrierWow...looks like a great idea
Hi Glen, I would love to know more about your strategy. What are the settingd for the indicators and how you use them. Are you consistently getting that many pips a day from the geppy...if so great?? What is the indicator on the screen and how are you using it...the one dividing things into 1/8, 2/8 etc? Thank you...I am intrigued...Joe
Hi Joe.
The indicator is a Murry Math indicator, and it works of the Gann octaves of 8-8ths....therefore the move from high to low is broken into 1/8th segments, the idea is if the pair are trading at say 8/8 or +1/8 then it is over bought and you should look for a fall back ( confirmed by the other indicators).
Therefore the idea is to trade the pair from 8/8 back to 4/8 and from 1/8 to 4/8, converting it to fib's that would be 0 to 50% and 100% back to 50%....of course its only a guide and needs to be confirmed by the other indicators, however its uncanny how the pair moves within the segments...

I have posted the indicator I use below..with some doc's that I hope explain it better then I can....

I dont want to get to much into the indicators I use as I do not want to take this thread away from the stoch indicators...

In answer to your question about the pips , I also trade long term using Elliot waves and I trade multi lots, but in short yes 100 + pips from the G/J is correct, you will see I have posted charts that show I have allready take 70 pips this morning ( good start to Thursday)

Glenn
Attached File(s)
File Type: mq4 MM_Short_LINES_v2.mq4   9 KB | 543 downloads
File Type: zip murrey powerpoint+2word doc.zip   1.1 MB | 706 downloads
  • #799
  • Jan 9, 2008 4:27pm Jan 9, 2008 4:27pm
Thanks Glenn, so do you use the rope indicator for entry like Spud says or do you utilize something else for entry on the one hour and up charts?? Thank you in advance...Joe


Quoting glenn5t
Hi Joe.
The indicator is a Murry Math indicator, and it works of the Gann octaves of 8-8ths....therefore the move from high to low is broken into 1/8th segments, the idea is if the pair are trading at say 8/8 or +1/8 then it is over bought and you should look for a fall back ( confirmed by the other indicators).
Therefore the idea is to trade the pair from 8/8 back to 4/8 and from 1/8 to 4/8, converting it to fib's that would be 0 to 50% and 100% back to 50%....of course its only a guide and needs to be confirmed by the other indicators, however its uncanny how the pair moves within the segments...

I have posted the indicator I use below..with some doc's that I hope explain it better then I can....

I dont want to get to much into the indicators I use as I do not want to take this thread away from the stoch indicators...

In answer to your question about the pips , I also trade long term using Elliot waves and I trade multi lots, but in short yes 100 + pips from the G/J is correct, you will see I have posted charts that show I have allready take 70 pips this morning ( good start to Thursday)

Glenn
  • #800
  • Jan 9, 2008 4:40pm Jan 9, 2008 4:40pm
Quote
jcarrierThank you
Thanks Glenn, so do you use the rope indicator for entry like Spud says or do you utilize something else for entry on the one hour and up charts?? Thank you in advance...Joe
Hi Joe.

Yes you will see on my charts the stoch setup, I use it in conjuction with the other indicators, MM lines and candle patterns..
I started using stoch indicators a long time ago when I discovered the rainbow method by Guppy, I converted that method to a method I could use and then when I saw spuds thread I just used some of the ideas, my method is a setup that suites me and is cobbled together from many ideas and method from many other people.

Glenn
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