Info
Hope we all caught a few
May next week be bigger and better!
Thats what Im guessing and its getting to late to even think about trading. Eur/JPY is at the bottom of a channel, ready to go North. USD/JPY has formed a Huge Bullish engulfing signal on the 4 hour. The EUR/USD has broke out of and tested the bottom of that channel it has been in for the last 2 weeks. People, the dollar may be turning around for awhile. All happening at the end of the week. Looking forward to next week.
J
- #3,024
- Mar 23, 2007 4:53pm Mar 23, 2007 4:53pm
Very off topic but, great signature Wojo. Your questions are very good and pips has also been very good on answering them. In my opinion (and this doesn't mean much 
) is the the 00 levels seem to be purely psychological. As if you would say, " Oh wow... we're crossing the 1.340 level", but also, it has to do with previous highs and lows at certain times in history which can add to the psych level of the price levels. Basically I always set a tp at just above/below price levels if the havent' been breached yet.
) is the the 00 levels seem to be purely psychological. As if you would say, " Oh wow... we're crossing the 1.340 level", but also, it has to do with previous highs and lows at certain times in history which can add to the psych level of the price levels. Basically I always set a tp at just above/below price levels if the havent' been breached yet.Thanks for answer Pips4uandme
I put my first profit target at least 20p from entry. It also depends on stoploss. If I am unable to put my first profit in that distance I skip the trade. When first target is hit I move my stoploss to break even. I am confused what to do if nothing happened for many hours and I am for example -5 or +5 pips.
If I am BE before fundamentals I let the trade run. If not I close the trade. Please comment
Could you answer my second question connected with 00 levels?
Thanks
DireXiv
Make it happen, no one
else is going to do it for you...
- #3,025
- Edited 7:10pm Mar 23, 2007 7:09pm | Edited 7:10pm
- | Joined Feb 2007 | Status: Trader | 989 Posts
Thanks for answer Pips4uandme
I put my first profit target at least 20p from entry. It also depends on stoploss. If I am unable to put my first profit in that distance I skip the trade. When first target is hit I move my stoploss to break even. I am confused what to do if nothing happened for many hours and I am for example -5 or +5 pips.
If I am BE before fundamentals I let the trade run. If not I close the trade. Please comment
Could you answer my second question connected with 00 levels?
Thanks
Sounds like you are doing a great job figuring out what works for you. I also understand your frustration at not knowing what to do when nothing has happened for many hours and you are only a few pips either way. Remember when I first started trading, how frustrated I was b/c no one would say "this is how you do it." Now, I understand why. Each of us has a unique perspective on the market. I may think it will go up and you may think it will go down. We can both make money at the same time, depending on how we execute and manage our plan. My thoughts are (and unfortunately, I don't always follow it myself...that's what I'm working on), if you have entered a trade and your analysis backs it up, why would you close it before it has a chance to move? (we are trading off of 4 hour charts, why shouldn't it take 4 or more hours for price to move?) If our stops are reasonable and the rationale is the same, why would we close the trade early? We close it because we don't want to lose money. We close it b/c we are scared and question our decision making ability. We want to be right and we fear being wrong. In order to be successful we have to learn that "scarred money" shouldn't be in the market in the first place. We have to learn that we can be "wrong" and it is OK because we didn't bet the farm, and we followed our trading plan.
Now, if your reasons for the trade change dramatically...that's another story for closing early at a smaller loss. Or, if a big fundamental is due (NFP) it might be OK to close so you don't experience large slippage. But, again, the decision must be made by only you...it is your account, your trade decision and your responsibility to figure out what fits your goals/plans. (frustrating!
). (sorry if that sounded pendantic...I'm really focused on psychological aspects of trading right now).Now for quesion #2.... Dire did a great job explaining the zero line. It shows "emotion" in the market. Trades taken before the 0 line are betting on momentum...a nice round top that trends toward zero and breaks through should provide a nice downward move. Does it always? Nope. But, we are taking on the probability that it will depending on our perception of the market. Look back over historical charts. You'll see nice moves or consolidation around the turn from top (extreme levels) and continue through MACD 0. Small back and forth breaks are avoided b/c it is indicative of chop. Market has lost direction. (I think I remembered question wrong...are you talking price action? Dire answered Right on the money!!!).
Hope this helped. (it has helped me, so thank you for asking these very difficult questions.)
pips
I found the indicator and thought I would post it. You can of course, exclude either of the timeframes.
Chau,
Dionysius
:
- #3,027
- Mar 24, 2007 1:53am Mar 24, 2007 1:53am
- | Commercial User | Joined Nov 2006 | 2,223 Posts
Hi Woju2,
Sounds like you are doing a great job figuring out what works for you. I also understand your frustration at not knowing what to do when nothing has happened for many hours and you are only a few pips either way. Remember when I first started trading, how frustrated I was b/c no one would say "this is how you do it." Now, I understand why. Each of us has a unique perspective on the market. I may think it will go up and you may think it will go down. We can both make money at the same time, depending on how we execute and manage our plan. My thoughts are (and unfortunately, I don't always follow it myself...that's what I'm working on), if you have entered a trade and your analysis backs it up, why would you close it before it has a chance to move? (we are trading off of 4 hour charts, why shouldn't it take 4 or more hours for price to move?) If our stops are reasonable and the rationale is the same, why would we close the trade early? We close it because we don't want to lose money. We close it b/c we are scared and question our decision making ability. We want to be right and we fear being wrong. In order to be successful we have to learn that "scarred money" shouldn't be in the market in the first place. We have to learn that we can be "wrong" and it is OK because we didn't bet the farm, and we followed our trading plan.
Now, if your reasons for the trade change dramatically...that's another story for closing early at a smaller loss. Or, if a big fundamental is due (NFP) it might be OK to close so you don't experience large slippage. But, again, the decision must be made by only you...it is your account, your trade decision and your responsibility to figure out what fits your goals/plans. (frustrating!
Now for quesion #2.... Dire did a great job explaining the zero line. It shows "emotion" in the market. Trades taken before the 0 line are betting on momentum...a nice round top that trends toward zero and breaks through should provide a nice downward move. Does it always? Nope. But, we are taking on the probability that it will depending on our perception of the market. Look back over historical charts. You'll see nice moves or consolidation around the turn from top (extreme levels) and continue through MACD 0. Small back and forth breaks are avoided b/c it is indicative of chop. Market has lost direction. (I think I remembered question wrong...are you talking price action? Dire answered Right on the money!!!).
Hope this helped. (it has helped me, so thank you for asking these very difficult questions.)
pips
2. When you decide on your stoploss it means that you are prepared to loose that money 40% of the time to gain the same amount (R:R of 1) and more for 60% of the time because of your system that beats the odds and therefore you will make money. If you prematurely closes your trade out of fear to loose money you might miss out on a winning deal. Only closes when you are sure that the whole situation has change or before news anouncements.
- #3,028
- Mar 24, 2007 4:46am Mar 24, 2007 4:46am
- | Commercial User | Joined Nov 2006 | 2,223 Posts
Hi!
I thought I had a pleasure to write post number 3000 on that great forum but Palmer was first
I’ve got a few problems:
1. After opening a trade
a) How do you manage your trade when price stopped between your stoploss and profit target and doesn’t move for x hours?
b) When you move your sl to break even? Does it depend on a pair?
c) Do you close when nothing happened and fundamental announcement is coming?
d) Do you close when another signal which is counter to your position comes? Why?
What are your rules?
2. Before opening a trade
I noticed that sometimes people open a trade close to 00 level. For example RT on gbp yesterday and TC on jpy today. When do you treat this level as a barrier? When is less important? I noticed that first approach is more important like today on eur (1.3400). What about other situations? Any examples.
I hope I am clear
Thanks
Woju2
- #3,032
- Mar 24, 2007 9:50am Mar 24, 2007 9:50am
Phillip,
What a poweeful presentation (MP3) of a personal conviction of ideas! A forceful presentation that jolted us all! We needed ajolt like this
-Chandra
Adel B.
fall down seven times, get up eight!
- #3,039
- Edited 12:34pm Mar 24, 2007 11:06am | Edited 12:34pm
- | Commercial User | Joined Nov 2006 | 2,223 Posts