Phillip,
Can you tell us what prompted you to have the stop loss at 1.0555?
Thanks.
-Chandra.
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I would have set it to below the opening of the candle. Only by experience I know that the price very seldom on a morning star comes below the opening of that candle. You could have set it below that candle which would have been around 1.9550. On a morning star you can even set it a bit higher than usual.
I would have set it to below the opening of the candle. Only by experience I know that the price very seldom on a morning star comes below the opening of that candle. You could have set it below that candle which would have been around 1.9550. On a morning star you can even set it a bit higher than usual.
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Great, Phillip!
I have a nice, small, ready recogner for Candle stick patterns. I will brush it up. It seems Candle stick pattern study helps here.
Two more things to share with all:
(i) Psychological price numbers (at xx.20; xx.50; xx.80 and finally xx.00) are important levels for both entry and exit. If these price values are close to your entry, then place your long entry a bit above and your short entry a bit below these important psychological numbers.
(ii) Trend lines are as important as the five moving average given by Phillip. We can incorporate in the template the five MAs given to us, but we have to draw manually the trend lines and, as Pillip said, DRAW THEM THICK! In IBFX, there is an indicator "IBFX-GPS" written by Parerick that draws trendlines and a few other patterns automatically. Go to Interbankfx.com and search for the indicator IBFX-GPS and install it into your indicator folder. It is a bit confusing, but worth it if you are using IBFX platform.
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Joined Jan 2007
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Status: Holy Pips Batman!
|486 Posts
I had basically that setup, but changed because of a couple things I did wrong with my trading platform, and just plain messed up. Nothing to do about it now but look for another one like that.
If I would have stayed with original setup I would have been sitting nicely.
Where were your entry and stops on the Gbp. Entry was on 1.9600 after confirmation of a turnaround at 0.000 Gmt and stoploss at 1.9555 with first profit target 1.9675. Our power were off otherwise that would have been the deal. Hope someone took it. It did not start as a double bottom but 0.0000 Gmt after the close of that candle showed the up move. There was a nice morning star that formed at the bottom.
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DireXiv
Make it happen, no one
else is going to do it for you...
Thanks for sharing your method. i came across the forex factory forum 2 days ago and just started reading this forum yesterday. it's alot to absorb but i think i'm getting the hang of it.
I have a quick question. Is the gbp setting up for a short after this candle closes. It's not a rounded top, but the MACD came up, peaked, and is now in the process of having a lower high. i'm using InterbankFx charts. so if this is correct, assuming i have a good RRR, i would enter on the open of the next candle.
Remember I said first profit. It does not mean that when the price is moving up that you have to take partial profits at the first target. When it went passed the first one the 89SMA was the next target. I sold 0.5 lots at 1.2960 and the rest is breakeven + 10. We have a touch of the 21EMA as well. Next up target 1.2980-1.3000 at 365EMA to 1.3000 pricelevel.
Sorry I did not answer all your questions.
Stoploss was below trendline support.
Risk:reward was calculated to what I expect this trade will go and not my first partial profit as that target was not the dominant one. Price levels, 89SMA and 200SMA are the big ones.
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Thanks for always being so helpful! Good trading to you!
Thanks for sharing your method. i came across the forex factory forum 2 days ago and just started reading this forum yesterday. it's alot to absorb but i think i'm getting the hang of it.
I have a quick question. Is the gbp setting up for a short after this candle closes. It's not a rounded top, but the MACD came up, peaked, and is now in the process of having a lower high. i'm using InterbankFx charts. so if this is correct, assuming i have a good RRR, i would enter on the open of the next candle.
Thanks again for sharing this method
K
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The setup starts to look promising. We are however just above the 89SMA which can turn out to be support. I will rahter wait for the continuation pattern for a long to occur or another down candle will confirm the downmove. There are plenty of chances. Be patience.
Hi phil,thanks for sharing your system! can i also check with u whats the worst drawdown with this system(in pips) and do u have a filter for the drawdown? thanks!
Just finished reading your commentaries. (post 143)
Very impressed at how thoroughly you examine each trade and look carefully at the risk reward before placing trade
Your use of the MAs and trendlines would make this tricky to program to back test, but manual testing does not take too long
I tested your strategy on GBP USD for 3 months Oct to Dec 05 and it was certainly profitable
I guess my only comment is that I don't see how you maximise profit where there is a trend; do you use a trailing stop once price has broken out from trend lines/MAs?
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Joined Jan 2007
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Status: Holy Pips Batman!
|486 Posts
Phillip,
Take a look at the EUR/YEN from last evening, just a few candle ago. Am I right or was that a perfect retracement and continuation? I got in, and pulled a few pips out before going to bed and closing the trade (still not that comfortable), but it ended up racing up afterwards.
I have never been able to recognize and work with a retracement that well, but that worked great.
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DireXiv
Make it happen, no one
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