GBPUSD 10-tick chart strategy/idea (in progress)

Hi

attached is a screenshot of spot GBPUSD on a 10-tick chart.

I personally like tick charts as perhaps the candles are smoother than time interval candles.

Also, a 10-tick chart equates to a smaller timeframe than a 1-minuter chart for example on GBPUSD (usually).

The only indicators are a 50SMA, and horizontal lines at 00 25 50 75.

Perhaps in forex, 00/50 are more significant than 25/75?

My question is, with these chart settings, do you think that you could trade GBPUSD profitably? If so, how?






If you choose to trade in the correct direction, It looks relatively simple to profit from crosses over the 50 SMA, which can then extend to 100 pips of available profit - which should make up for any small losses along the way. Or perhaps I am trying to make something that is much more difficult, very simple?
Perhaps you would look for Higher Highs (HH), Higher Lows (HL), Lower Lows (LL), & Lower Highs (LH) in order to time trade entries?.........

With such a short time frame I personally would want to keep stop-losses as small as possible, in the sense that if the trade doesn't immediately go in my favour, I would soon want out.

Do you think you could trade GBPUSD profitably with these exact chart settings only? If so, what would you do?

All ideas welcome,
Many thanks.

Here are some more recent screenshots. All times are UK time.

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Thanks guys.

I know its only a few hours since i posted this thread, so its still early days.

My questions are serious and not trick questions, about whether people feel they could trade GBP/USD profitably with the above chart settings, only using horizontal lines at 00 25 50 75 and a 50 SMA on a 10-tick chart.

However, judging from the 160+ views of this thread, and no responses, the reception of this thread seems at best - luke warm

For all the people who have viewed this thread but not commented, does this mean that you do not feel that you'd be able to trade GBPUSD profitably using these chart settings?

Many thanks
.

Thanks for posting this strategy.
Unfortunately, I am using MT4 which (as far as I know) does not have tick charts you can use like this.

I wish you all the best, however.

hey its amazing, im watching your screenshots and i noticed than you are using PhatBooster... i thought i was the only one in the planet who use that program, its good i think!

Whats PhatBooster?



Thanks.

Know MT4 doesn't have tick chart functionality. I've already looked into this, and have suggested this enhancements for future MT releases to metaquotes.

However, please feel free (but not obliged) to offer your opinion of how you would try to use this 10-tick chart, with 50SMA & horizontal lines at 00 25 50 75 to trade GBP/USD profitably.

All a 10-tick candle does is display 10-ticks (movements) in the bid price, before the next 10-tick candle is begun.

Perhaps you wouldn't use the 00255075 lines at all.....you don't need to use all components.



Thanks.

Any input I give will be useless (even misleading).
I have never yraded based on a tick chart. I use 50EMA to "filter" trades on the 30M TF.

Other than that, I can offer no input whatsoever.
I remember, however, someone determining his entries and exits based on tick charts. Maybe at the "Cable update" or at the "Daily Cable analysis" thread. I'm not sure which one.

The 10-tick charts aspect isn't essential.
1-minute charts are comparable, albeit the bars will be a bit bigger most of the time, as throughtout 0800-1600 UK time, GBP/USD will create more than 10 individual ticks (10 changes in bid price) per minute.

10-tick & 1-minute charts are both small timeframes, and the good thing with small timeframes is you can use smaller stop-losses, thus trading bigger positions while risking the same amount of capital per trade, thus making bigger profits.

My main point is, the charts show big swings above and below the 50SMA, and if the trade is not going in your favour you can exit at a small stop-loss.

There are periods when price will be consolidating at or near the 50SMA.

There would be times when you would get it wrong, by going long or short when price hits the 50SMA line when taking a trade in the opposite direction would have proved better.

But using HH, HL, LL, LH & horizontal lines at 00255075 are methods of chart interpretation/tools that may help us improve our interpretation and decision making on this chart, enabling us to be trading in the right direction, and catching some or all of the big moves.

All feedback wanted!

hello! PhatBooster is the program than you are running it the icon between your internet connection and your AVG AntiVirus, the one with green and red, it is a program than boost your pc and make it faster!

mono

No its Zone Alarm!

The 00 25 50 75 horizontal lines, and 50SMA are on the chart in order to provide us with some definate lines to work with, as we attempt to further our interpretation of price action through the identification of HH's, HL's, LL's, LH's perhaps.


With all these tools & information at our disposal, is there anyone who feels they'd be able to make a profit trading GBPUSD having only these chart settings at their disposal?

Perhaps you wouldn't use the horizontal lines, or 50SMA AT ALL? but would rely solely on price action?

How would you decide when to trade, and in what direction?

Maybe we could think of this as an exercise in evidencing our transferable skills in trading....a bit like if you were asked to play a round of golf with a completely unfamiliar non-customised set of clubs that you've never seen before

Many thanks.

it is exactly the same icon...

Being aware of the psych levels of 00, 25, 50, and 75 is always encouraged. The typical school of thought is to fade these levels. Having said that, I have some friends that know this is "typical", and trade contrarian to the fade. At any rate, we should be aware of these levels.

I like plotting a ma on select time frames and looking for s/r and trend at these levels. A 50sma is a good one to consider, you might consider looking at higher time frame 50's, and plotting them on your smaller time frames (ex - 50sma on 100tick = 500sma on 10tick). Just have to play with the ma and find one or two that gives the cleanest look most of the time. I like to plot 60min values of ma's, bands, etc. on lower level time frames.

It looks like you are wanting to trade breakouts on key levels at a very small time frame. At times, it will look great, and on some days you will get whipped to death. Filtering when these times are is the rub, and not easily defined. You might consider looking at this at high volatility times during news, having a clear risk to reward defined, which is the key for any methodology. Good luck and good trading.