GBPJPY scalpers

There is a yearly S2 pivot sitting at 198.84. If it breaks that level there isn't much holding it up for a while. New monthly and weekly pivots will show on my screen on Sunday night so I won't comment on those yet. Should be an interesting week.

Please post the pivot numbers on Sunday .. would be awesome to know.

As a team we can take some pips out of the market.

Hetyy Magnum love the skulls and crossbones on the charts.

Where do I get those top secret indicators ? ... my charting package does not have them

I like your idea on taking 20 pips profit on 50% and moving the stop to 20 pips on the other 50%.

The first one I created for myself. It is a mathematical calculation based on fractal formulas ( I will probably give it away later after several months of testing). The one below it with the three lines is one I built for a client that doesn't want it given or sold to anyone (doesn't mean I can't use it, LOL!).

The skull and crossbones is just my weird sense of humor coming out, it gives me a quick visual reference that I don't have to think about.

Should be a fun week, I will post the weekly and monthly pivots when they change on my screen.

Hi Malcolm,
Can you please elaborate a bit on the DJ-30, I read you said it moves 700 points per day. Where do you trade it and is it available in the US?
Thanks
Alexhttp://forexfactory.com/images/icons/icon10.gif

it has moved 700 points . on a typical day it moves 150 - 250 points .It makes the beast GBPJPY look like a pussy cat.

You can trade it with Emini futures in the USA.

The contract for the YM (dj-30 emini) is $500 per $5 per point move (so 1:100 leverage). Find a borker that gives you 1:5 margin as the ocntract is much more expensive if you hold it over night.

Thanks for the fast reply. Who is your broker. I am with MBT and have only a Forex account with them. I use WHC demo to watch the DOW for correlation with the GJ.I guess the DG-30 is the DOW(forgive my ignorance on this matter).I can't find anything on WHC ,do you know if they are legit or just another "Bucket shop"? All of your input has shed a ray of new light on my understanding of the market. The OR, the use of the 50EMA and the rsi 14 are very simple and very effective. I love your trading style and understanding of FOREX.

Alexhttp://forexfactory.com/images/icons/icon14.gif

Thanks

I use CMC Markets ...but they will not open an account for US citizens.

Try using rosenthal clooins group. My buddy swears by them

The beauty of this broker is that you can trade options in forex (way less risk than trading the spot forex).

HOT HOT HOT !!!!!!

[quote=malcolmb14;1867485]I use rsi14 and 10,20 , 50 sma .. that is it. I use fib extnsions and retracements as support / resistance zones.

Hi, are you using RSI 14 at the close?
Thanks.

[quote=currinexfx;1878760] Yes the trigger is not generated till the close of the bar.

Hi Malcolmb,

I have some questions regarding the RSI entry/exit rules:

1. What stop loss do you use with the RSI 14 on different time frames, especially on the 5 and 15 min and do you ever use the technique on the 1min?

2. What pip targets do you aim for for each TF?

3. Do you pay attention to the MAs and the direction of the trend or do you just enter 15 pips above or below the close of the trigger bar?

4. When you have a trigger and the 15 pip confirm. doesn't come right away for how many bars after the trigger bar do you consider it safe to go in?

Many thanks,

Alexhttp://forexfactory.com/images/icons/icon7.gif

1) Stop is typically 50 pips. I do use this technique on the 2 min , but the entry is a little different and has to be used with support and resistance lines. For example plot the bear flag that formed on Friday on the 5 min chart and then switch into a 2 min time frame chart. The trades were off the top and bottom of the flag. (second chart) ... 50 pips stop either way.
2) That is a hard one.... could be if you got a long trigger stay in the trade till you get a short trigger , could be a test of a fib level and a failure of that fib level. The exit of a trade is something I constantly struggle with. Sometime you get in the trade , the trigger is filled and then the price reverses on you and the mximum pips you could get is 20. This is not really a great response , but the exit is THE HARDEST part of a trade. As long as you make money who really cares if you leave 60 pips behind because you got out to early. Good exits come with experience so I have been told. I have been trading for 4 years , and although seemed to have grasped this trading thing i have a lot to learn and really am a novice still.
3) If you look back in this forum I noted ' do NOT' go long in this strong down trend ... so yes I do take notice of the trend. In a downward trend and a bear flag forms i will take longs ( like Friday). Also yes take notice of the moving average....If you only took the trades with the trend you would be managing your risk very well. For trading off a 5 min chart work out the trend on a 15 min chart .
4) once you get a short trigger , wait as long is it take to get a fill. Or for example lets say you get a long trigger , but it does not get fille , and the pair keeps going down , wait for the next long trigger . The second trigger overrides the 1st trigger.

Here is new thing I learnt today ... volume pivots.

Simply put they are areas of support and resistance at high volume bars.

Here is the chart. There is something I am going to buy for esignal that puts the pivots on the charts automatically.

These could be used to trade the breakouts / breakdowns .. just another tool. Watch this space for more information as I may play with them a bit next week.



Second chart with a 2 sd linear regression channel. The middle of the channel can be used as a support and resistance zone. I like using these the best for trend direction on all time frames. Breakouts of these channels can be played also , as all they form is support and resistance.



Here is the 1 min chart expansion of the 5 min chart above .. the trick on a 1 min is to take the trade 2-4 bars into the zone where you get the long or short trigger. As long as it is on or close to the linear regression channel top , middle or bottom. This is a bit more of a higher risk , advanced traders technique. Close and reverse is AS SOON as you get a trigger / trade in the oppsosite dorection. This technique is used best in flags and sideways channels during consolidation phases. ( not to be used in strong trends as the massive downtrend we had this week). As soon as the channel is broken to the downside or upside and restesed , but the rested does not go back into the channel stop this trading technique IMMEDIATELY ... it means the channel is being broken...as happened 10:30 am on the chart below on the intersection of the linear regression channels.

Trading off a 1 min chart is not recommended unless you are a master scalper.

Malcomb,

Can you post another chart clearly showing the RSI - 50MA - trigger.
I was profitable with this system last week and want to make sure I am reading the chart correctly.

Hi Malcolmb,

Thanks for your detailed explanation on the RSI question. I forgot to ask what sort of risk management do you apply on your trades in terms of % per trade in relation to your account size?

Thanks

Alexhttp://forexfactory.com/images/icons/icon10.gif

It is suppoed to be 2% risk..... so that will dtermine the size of your trade.

I started with 10k. I traded 1 k lots.... did not manage the rsik very well , but had a good trading style that seems to be 85% accurate.

I ran the account up very quickly.

I do not use one system , I use several different things.

Tonight i am playing a linear regression channel on the 2 min .... 40 pip band 204.3 to 204.8 zone. Scored 90 pips so far and missed some moves also .

Looks like channel is fading out and we may pop to test 205. Price now is 204.7

Price is in a slow drift down. The earlier drop placed it right at the Weekly M2, then a slow creeping drop since. Next level is 203.46 which is a monthly S1 level. The level that intrigues me most is 202.07 which is both a weekly and monthly level below that is another combined weekly and monthly pivot at 200.69.

A break above the Weekly M2 at 204.89 could take us up to 206.05 there are no pivots above it until the weekly central pivot at 207.75 and a monthly central pivot at 208.65.

Should be a great week, lots of news to move prices.

Hi
I wanted to tank you malcolmb for trying to hlp us.
But i don't understand why you take in consideration the dj, dow johns?, when analyzing the gbp/gpy. You watch the nikkie which the reason is more clear. But I dont really know the relation either. Can you help me here? I will beguin trading this week with real capital.

Did anyone else take the G/J short off the 5 Min RSI strategy today? I'm in at 204.91. Hope to bank some pips

Short @ 205 and watching very close with a tight SL.
SL @ 205.18 and then long looking for TP205.80-90