Pivot Boss in the making~
- #1,744
- Edited Dec 12, 2008 1:03am Dec 11, 2008 10:01pm | Edited Dec 12, 2008 1:03am
Hi, greetings all!! 
I've been reading this thread for 2 weeks and tried the FORCE system ever since. The system is simple and fun.
Now for some noob's questions
:
1. I happened to see a couple of fake signals, samples from yest's chart is provided (if anyone can help it was yest's candles on 9:40 GMT and 10:15 GMT). Candle bounced from upper TL, the force gave the signal to short, everything seems to be perfect,....but it continued the uptrend!!
What happened??
How can we filter those??
2. I've been reading on putting ur stops at certain level that ur sure that if reached, it would mean a reversal. Now sometimes it means of using 20-30pips as a stop loss, which is huge. Can someone elaborate more on how we use stoploss so that we can manage our RR??
I really appreciate anyone's help on this. Tx
ChiQ
I've been reading this thread for 2 weeks and tried the FORCE system ever since. The system is simple and fun.
Now for some noob's questions
:1. I happened to see a couple of fake signals, samples from yest's chart is provided (if anyone can help it was yest's candles on 9:40 GMT and 10:15 GMT). Candle bounced from upper TL, the force gave the signal to short, everything seems to be perfect,....but it continued the uptrend!!
What happened?? How can we filter those??2. I've been reading on putting ur stops at certain level that ur sure that if reached, it would mean a reversal. Now sometimes it means of using 20-30pips as a stop loss, which is huge. Can someone elaborate more on how we use stoploss so that we can manage our RR??
I really appreciate anyone's help on this. Tx
ChiQ
- #1,746
- Dec 12, 2008 3:38am Dec 12, 2008 3:38am
- Joined Mar 2007 | Status: Trader | 7,195 Posts
Hi, greetings all!!
I've been reading this thread for 2 weeks and tried the FORCE system ever since. The system is simple and fun.
Now for some noob's questions
1. I happened to see a couple of fake signals, samples from yest's chart is provided (if anyone can help it was yest's candles on 9:40 GMT and 10:15 GMT). Candle bounced from upper TL, the force gave the signal to short, everything seems to be perfect,....but it continued the uptrend!!
2. I've been reading on putting...
The 2nd failed trade was also a valid signal but the cycle of lower highs and lower lows had been broken. As soon as the first trade failed it made a higher low with the close of the candle following the failed entry candle you have highlighted. Price then had a higher high. Once the higher high was achieved the focus should have been on buys. Your short term trend line would have been from the low at 1.3080.
- #1,747
- Dec 12, 2008 4:14am Dec 12, 2008 4:14am
Your first failed signal was valid but price stopped at 1.31 and its always going to be tricky selling right on a round number.
The 2nd failed trade was also a valid signal but the cycle of lower highs and lower lows had been broken. As soon as the first trade failed it made a higher low with the close of the candle following the failed entry candle you have highlighted. Price then had a higher high. Once the higher high was achieved the focus should have been on buys. Your short term trend line would have been from the low at 1.3080.
Hi Vantage, thx for the reply!
If i understand it right, you're referring on the trend change or reversal, right? So we better be cautious on the first signal on reversal as to see if it's a reversal or just a retracement. As soon as the trend is established then the focus should be on the way of the trend. Am I making any sense?
Does the divergence thing will help us better on this trend change? I don't still quite grasp that divergence thingy though
- #1,748
- Dec 12, 2008 5:23am Dec 12, 2008 5:23am
Hi, greetings all!!
2. I've been reading on putting ur stops at certain level that ur sure that if reached, it would mean a reversal. Now sometimes it means of using 20-30pips as a stop loss, which is huge. Can someone elaborate more on how we use stoploss so that we can manage our RR??
I really appreciate anyone's help on this. Tx
ChiQ
- #1,752
- Dec 12, 2008 6:17am Dec 12, 2008 6:17am
- Joined Mar 2007 | Status: Trader | 7,195 Posts
Hi Vantage, thx for the reply!
If i understand it right, you're referring on the trend change or reversal, right? So we better be cautious on the first signal on reversal as to see if it's a reversal or just a retracement. As soon as the trend is established then the focus should be on the way of the trend. Am I making any sense?
Does the divergence thing will help us better on this trend change? I don't still quite grasp that divergence thingy though
Divergence: the indicators jedi uses are meant to follow price. If price is higher the indicators should be too. If price is lower the indicators should be too. I've shown 1 example, google divergence, try babypips.com, theres loads of info out there. Divergence can take some time to kick in.
How could you have avoided that trade following the system without any other indicators. Only trade in the face of an even number if you are 100% convinced of the trend and even then be prepared for added volatility. If in doubt don't take it. If you had left it there was a perfect buy set up a few candles later. If you left that trade and it did break below the even number you've got a very, very good chance that it'll retrace back up to the even number and give you a pretty safe sell below.
- #1,754
- Dec 12, 2008 6:52am Dec 12, 2008 6:52am
The bigger picture for the last 4 days or so was up. The selling opportunities were against the trend. So the first trade you show that failed just above 1.31 was a failure against the trend. When that trade did fail the higher lows that followed were the resumption of the trend. I'm sure a lot of followers of this system were looking at signals to buy off trendlines but also important supp/res areas, in this case the even number. The 2nd failed trade you show that had a higher low and a higher high before it was a perfect set up for a buy.
Divergence:...
Thanx V for elaborating further. I guess that my knowledge and experience is still lacking. Need to learn more and harder though
- #1,755
- Dec 12, 2008 6:54am Dec 12, 2008 6:54am
I see no one has answered this bit yet. Size of stop is all relative depending on what kind of trader you are. If 20-30 pips is too large, you need to reduce your position size so that, if the trade gives you a loss, you are comfortable with the amount you lose. That is a long winded way of saying that you need to reduce your size. If you cannot do that with your current broker, get yourself a new broker. You need to be able to stay in the game long enough to learn. If you lose all your money, you won't have enough time to learn.
Thanx Roy, that would make sense though it means reducing my profit too
