So much for the Dow Jones and UJ correlation ......
I hope that explains it for you and others here on this USD/JPY thread.
Bruce
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This seems to be a interesting period of time lately when USD/JPY drops before it again gets stronger overnight. No guarantee pattern will repeat however be aware if it does. Look at charts of last 10 days around this time period. It might be starting early as it is dropping below 104.00 and EUR/JPY is testing it's low for the session.
Bruce
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But...I have been trying to evaluate the proper way to trade.
Bruce, you mentioned that you only trade with the trend and buy dips and sell peaks. I of course have heard this before, but even knowing this did not help me very much because I was missing the how......
I only imagine that everyone has there own interpretation of "how", and for me it is placing my trades once per day as I have no desire to sit at my computer all day trading the lower TF charts....to each his own i guess. Others like it, but it is not for me.
So with this in mind, I have found it very hard to learn from most others who can be there at news time or has time to follow this or that or has the desire to sit and watch there chart all day. It seems that the above characteristics define 99% of the traders out there, and so I have not been able to learn much from them in terms of specific trading styles. But for me quiting my job is quiting all jobs and sitting at my computer for more than 2-3 hours at a crack is just another job.
So I have been on a quest for the last week that I have been away to answer some fundamental questions.
How should I determine trend? Well...I realized that since I trade D1, then that is my smallest commone denominator. When I realized this I also realized that I can't use the smallest common denomintor to determine trend. after doing a lot of chart analyzing, I came to the comclusion that you need to be at least 4 time segmanets away from the chart you use to determine trend. However this does not work for H4 using D1 to determine trend. This I now see that I must be using price action of M1 to determine my trend and then when I trade D1, I know that if price action of last month was long, I would trade this month long only and vice versa.
I would image that if you wanted to trade H4, that W1 would be the proper chart to determing the trend.
The next question is how to determine if price is going to take you higher or lower. I won't get into this here, but I am glad to be on the right path here as well.
Entering and exiting were some other questions that I already had some good ideas just by looking at charts and how to stay in the longer D1 trades that last 15-60 days. I have spent much time evaluating this info.....
Anyway, I wanted to share with you all since this also seems to be an educational thread as to some of the conclusions that I have come up with.
I look forward to checking in with you once in a while to see how things are going. Thanks for the education Bruce. Everything you gave me to read and made me step back and realize that I was not yet where I want to be with my trading......
Bruce, you mentioned that you only trade with the trend and buy dips and sell peaks. I of course have heard this before, but even knowing this did not help me very much because I was missing the how......
I only imagine that everyone has there own interpretation of "how", and for me it is placing my trades once per day as I have no desire to sit at my computer all day trading the lower TF charts....to each his own i guess. Others like it, but it is not for me.
So with this in mind, I have found it very hard to learn from most others who can be there at news time or has time to follow this or that or has the desire to sit and watch there chart all day. It seems that the above characteristics define 99% of the traders out there, and so I have not been able to learn much from them in terms of specific trading styles. But for me quiting my job is quiting all jobs and sitting at my computer for more than 2-3 hours at a crack is just another job.
So I have been on a quest for the last week that I have been away to answer some fundamental questions.
How should I determine trend? Well...I realized that since I trade D1, then that is my smallest commone denominator. When I realized this I also realized that I can't use the smallest common denomintor to determine trend. after doing a lot of chart analyzing, I came to the comclusion that you need to be at least 4 time segmanets away from the chart you use to determine trend. However this does not work for H4 using D1 to determine trend. This I now see that I must be using price action of M1 to determine my trend and then when I trade D1, I know that if price action of last month was long, I would trade this month long only and vice versa.
I would image that if you wanted to trade H4, that W1 would be the proper chart to determing the trend.
The next question is how to determine if price is going to take you higher or lower. I won't get into this here, but I am glad to be on the right path here as well.
Entering and exiting were some other questions that I already had some good ideas just by looking at charts and how to stay in the longer D1 trades that last 15-60 days. I have spent much time evaluating this info.....
Anyway, I wanted to share with you all since this also seems to be an educational thread as to some of the conclusions that I have come up with.
I look forward to checking in with you once in a while to see how things are going. Thanks for the education Bruce. Everything you gave me to read and made me step back and realize that I was not yet where I want to be with my trading......
"Keep your eyes on the helpers" - Mr. Rogers
- #7,079
- May 22, 2008 7:28pm May 22, 2008 7:28pm
- | Joined Dec 2007 | Status: Wish I had more capital !! ;-) | 1,050 Posts
But...I have been trying to evaluate the proper way to trade.
Bruce, you mentioned that you only trade with the trend and buy dips and sell peaks. I of course have heard this before, but even knowing this did not help me very much because I was missing the how......
I only imagine that everyone has there own interpretation of "how", and for me it is placing my trades once per day as I have no desire to sit at my computer all day trading the lower TF charts....to each his own i guess. Others like it, but it is not for me.
So with this in mind, I have found it very hard to learn from most others who can be there at news time or has time to follow this or that or has the desire to sit and watch there chart all day. It seems that the above characteristics define 99% of the traders out there, and so I have not been able to learn much from them in terms of specific trading styles. But for me quiting my job is quiting all jobs and sitting at my computer for more than 2-3 hours at a crack is just another job.
So I have been on a quest for the last week that I have been away to answer some fundamental questions.
How should I determine trend? Well...I realized that since I trade D1, then that is my smallest commone denominator. When I realized this I also realized that I can't use the smallest common denomintor to determine trend. after doing a lot of chart analyzing, I came to the comclusion that you need to be at least 4 time segmanets away from the chart you use to determine trend. However this does not work for H4 using D1 to determine trend. This I now see that I must be using price action of M1 to determine my trend and then when I trade D1, I know that if price action of last month was long, I would trade this month long only and vice versa.
I would image that if you wanted to trade H4, that W1 would be the proper chart to determing the trend.
The next question is how to determine if price is going to take you higher or lower. I won't get into this here, but I am glad to be on the right path here as well.
Entering and exiting were some other questions that I already had some good ideas just by looking at charts and how to stay in the longer D1 trades that last 15-60 days. I have spent much time evaluating this info.....
Anyway, I wanted to share with you all since this also seems to be an educational thread as to some of the conclusions that I have come up with.
I look forward to checking in with you once in a while to see how things are going. Thanks for the education Bruce. Everything you gave me to read and made me step back and realize that I was not yet where I want to be with my trading......
I use the Daily for trend.
I use 1/2 positions when going against the trend and full positions going with it.
I use Divergence to exit and enter with great success.
I use the ZL MACD for 4H divergences.
Last night, the 4H candle at 01:00gmt closed at 102.75.
It was a lower low, but higher low on the MACD.
EXIT and go long.......
Right on the money..... it turned around.
Then, use the Gann HiLo for confirmation that trend will continue up/down.
Great way to 'pick' the Top or Bottom of a run.
But, remember, the Fundies can affect the Technicals with this pair.
- #7,080
- May 22, 2008 7:30pm May 22, 2008 7:30pm
- | Joined Dec 2007 | Status: Wish I had more capital !! ;-) | 1,050 Posts