zoopy's trading journal

Quoting zoopy

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I mentioned those pairs because I'm thinking about possibly trading two. However I'm also aware that they all have euro in them but what I'm concerned about is when we run into major news and it affects the euro. I'm wondering what kind of impact that will have.

So far, the eurusd on it's own still seems to be the better choice. If I want, I can always increase the size of my business by increasing the size of the trade.

For the time being though, I mentioned those three more to open up the opportunities to test this wave approach. Right now I guess you can say it's more about practice and forward testing to see how well it works which is why I post a lot of the setups.

Guess we'll see what other traders have to say.

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Quoting MPP

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have you thought about trading none euro or usd pairs, we already know that the eu is stronger than the usd, but both are suffereing from random mood swings as individuals and make other crosses hard to play, so increasing the lot size against the EU is a better idea as we have a good understanding of it. so what about pairs like GBPAUD AUDJPY, both pairs have reasonably clear paths GBPAUD short due to the decrease in UK interest rates (also effecting the GJ) AUDJPY long due to the return to market of japanese investment, money which would have come to the UK will (GJ) will most likely go to Aus (AJ) due to the interest rate difference.

having said all that i would still increase the lot size on EU and use minimal amounts on any other pairs until i have got a handle on them (currently i'm looking at short on GBPCHF and long on AUDJPY + my normal EU positions)

Just a thought

MPP

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Quoting cologg

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Zoopy,
I hope you don't mind me posting another chart in your thread but I'd be interested in your views on the EU at the moment.

Because the retrace is currently below the inital wave high (white line), are you now wary of going long or if it turns around would you look to get long anyway.

I know for shorts you would look at the break of the low wave, but I just wondered if the drop below the initial long trigger line makes you think... hold on a min, are we going back down again?

As ever, thanks in advance.
Colin.

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Quoting zoopy

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Thanks MPP

Yes I have thought about trading non euro pairs. I was thinking about doing eurusd and gbpchf as another option. Right now it's all up in the air so I haven't decided yet, just wanted to get some feedback to see what other traders had to say.

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Quoting zoopy

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Colin

Post away. It'll be good for you, other traders and myself to see exactly what waves can do and how to treat them when certain things happen.

The retracement (as you pointed out, could also be another move down) doesn't really bother me because I know the market moves in waves. Here's the deal though... IF we are headed higher, the low of this current wave won't go below the low of the previous wave. Understanding this is VERY important because it sets your limit as far as risk goes. IF price goes below the low of the previous wave then I was obviously wrong. I probably wouldn't short straight away either but instead wait to see what the market is up to first.

Also, playing the initial break as I have pointed out in previous posts is very aggressive and requires a larger stop. When it comes to calculating the risk on each trade, I'm using waves to gauge my risk based on how far I am from the peaks/valleys when entering.

Hope this helps.

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Quoting cologg

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Hey Zoopy,
What do you make of this?

What do you think. Is this complete nonsense??

Cheers
Colin.

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Quoting MPP

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Hi Colin
i've made some very good trades using Teb's system,
Jason

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Quoting MPP

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i have a pending sell point of 2.0300 on Gchf currently, waiting for the break of the low will look for a break and then a retracement for entry

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Quoting zoopy

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MPP

The chart you posted, you could trade it that way... although I consider that the more risky/aggressive approach. Here's why...

There was a very big wave before and it collapsed. When the first initial wave collapses, we have a choice. We either sell on the break and place our stops way up where the peak is (leaving us open to a huge stop = very big risk) OR we wait for price to pull back towards the peak and when it turns around and gathers speed going down, we short.

I've attached a chart to hopefully explain better. In my chart, I have blocked in a blue area which identifies the "range/area" where I will be watching. The reason for me watching this area is because the wave before collapsed. This also means that after the collapse, if price were to continue there's a high probability that we'll be making waves going down. Therefore... I wait for pullbacks towards the prior wave's peak and keep shorting (when price turns around) until a wave breaks to the upside.

Not sure if the above makes sense?

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Quoting ianf0ster

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Hi Zoopy,
I have a problem relating a 4hr Line chart to realtime price - the difference between the hig/low and the close on a 4hr chart can be quite large i.e >50 pips. For example the 12:00 GMT bar on 2nd May O=1.5459 H=1.5481 L=1.5360 C= 1.5429. So all your open on breaks or Slclose on break can be out by a factor of more than half your 100pip Target and SL. This seems crazy to me, unless you are going to be at your computer all the time.

So dont you mean :
IF we are headed higher, the lowest Close of this current wave won't go below the low of the previous wave.
and
IF a 4hr price bar close goes below the low of the previous wave then I was obviously wrong.


Ian

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Quoting MPP

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so looking at your chart would you sell at the break of the bottom of the blue box 2.0250 or be waiting for price to drop through, retrace a little and then sell as it passes through again, the chart makes sense, but the entry is a little confusing.

i see it as sell at2.0250 SL at 2.05xx ???

EDIT: patience, i'm looking and seeing were i want it to go and not waiting as long as you for confirmation, wow, i can sit around for days/weeks with jacko's method - but this just occured to me.

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Quoting cologg

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Hey Zoopy,
What do you make of this?
In the first chart I've got the EJ on the with a break of a top of a wave, a retracement and now it's moving up again - time to go long at the end of the next 4H period maybe???

In the second chart it's the EJ on the 4H again but this time looking at it from the perspective of TEB and his 200 EMA method. I.e. you'd already be in the trade with your first target as the 200% fib line, roughly 162.23.

The target from TEB's method of 162.23 is just below the next major wave top of the line chart.

To me this all looks positive in taking a long trade and if I've read it correctly the long term trend is also up.

What do you think. Is this complete nonsense??

Cheers
Colin.

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Quoting MPP

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? do we consider longer term waves as shown here on AJ, the top line is still holding and has been rejected again (almost), the bottom line broke through and then turned (good example of not trading the break, but waiting for a little retracement)

?or are we mainly focused on the grey box wave which would lead me to thinking we have a long trade pending - long wave up, small drop wait for the break of the high!!

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Quoting zoopy

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lol. You weren't the one that wrote that email in his blog about eating/drinking everything lying around the house were you?

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Quoting MPP

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no but i did find that funny also.

so were not buying/selling on the breaks TEB's method, were using the retracements into a zone for a better price after the wave has been broken

1. locate waves
2. identify top and bottom of wave
3. look for breaks to indicate either a bull or bear move (each wave is making new highs or lows)
4. watch for a retracement into the mid wave area
5. after the turn back into the driection of the break we trade

in this chart we would buy around .7895 sl around .7820, am i somewhere near the idea, i have been looking to buy the break of the wave after the retracement which would have put me in around .7920

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Quoting zoopy

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MPP

What you have laid out there and described on your chart is EXACTLY what I am doing.

1. Locate the waves
2. Look for breaks
3. Trade the pullbacks in the direction of the break

You could also trade the break but it's best to trade the pullback instead. I say this because it helps to teach one how to identify those "dips" so if you're able to identify one on a simple line chart, you'll probably be able to see it on a candle/bar chart too.

Now that you have that basic idea of trading the pullbacks, bring up any chart (doesn't matter what market) and see if you can spot the same thing happening over and over again. Or... how about this, turn it back to bars/candles and add a 50.0% fib retracement. You'll see where all of this ties in and why I decided to do this exercise

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Quoting MPP

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i picked
usdchf, audjpy, gbpusd, eurusd and on all i could see the patterns, now to sit and wait, also to decide which pairs to trade?
usdchf - direct correlation to Eu so why bother
gbpusd - to volatile
so i'm down to Aj GChf and EU - made some out of GJ today also, but i won't do that to often.

i really like the line charts not sure i'd put the candles/bars back on, if i do i know i'd be adding MA's to hunt the best price on a retracement and then i'd add the fib's and so on, i think i'll stick to this for a while it feels good.

so whats your plan, back to candles and bars or shall we gather a few traders select a few pairs and put this to the test

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