Nice lil short trade for me came in, I shoulda stuck to my guns for even better profit. Since I took profit, bottom should fall out now
Good week for a noob though.Speaking of the H1, if this bull run dies out here, then bearish divergence will likely develop within hours. At that point there could be a good opportunity for a substantial retrace.
Study the 4H chart...possible perfect double top in progress...
As always...just my 2 cents...
Earlier in this thread I explained that I use THV indicators to establish a trend on a 1H chart using a pair ...
Great post - I am sure many traders don't even think about the opportunities being missed on other pairs.
I have a couple of questions about trading multiple pairs if it OK
A few comments before the answers: Every trader has their own "style"; what works for one does not work for others. I like THV indicators and chart setup. I'm not comfortable with BB Squeeze, Gartley or BARF; so this method and my adaptation works for my intraday trading. I've been trading for a while and I know my own comfort level which includes Risk Management, MM and personal preferences.
How do you define trend from the 1H chart ? Both TRIX same colour? Fast TRIX only? Divergence? Combination? - and when is the trend played out?
Divergence is useful as a secondary trade indicator; NOT a primary. Same for TRIX; fast and slow. I use them for confimation. I have a NLMA set to 13 with an alert on the 1H charts (actually two of these show in my last posted chart; open and close settings). In that chart the next HA candle is green, suggesting a trend chnge to UP. I'm "comfortable" with HA candles, traded with them for about two years (Dean Malone's Synergy method; Google it). Same chart: fast trix very low, turning and changing color; Trend Indicator is green; SSL indicator is green; and my Sto/RSI indicator is turning up from an oversold position. "EVERYTHING" looks good for an UP trend!!!.......with just one HA candle in the green. If we wait, we may miss the "real" move up because as we know the larger time frames are simply an accumulation of what has "already" happened in lower TFs. Time to go to the 1M or 5M and use the same THV indicators for Bull trade opportunities. When these materialize and begin to accumulate, we have the beginning of the trend we anticipated; now just follow the trend. If there aren't any setups on the 1M and 5M, no new UP trend. The HA candle patterns and formations will signal weakness and a possible end to the trend. (I suggest you learn about their characteristics). Also, we had a bounce off the lower trend line in the AUD/JPY chart; that's a nice signal.
Also if you see two pairs looking good to go how you decide which to trade? I trade only three pairs but often find when I look back I would have been better trading one of the other two - grass is always greener on the other side.
There was a time when Daily ATR was a factor in making this decision; not any more. There is so much volatility, it really doesn't matter. AUD/JPY has a Daily ATR of about 150. If we can't carve 100 pips out of that, something is wrong. As I wrote earlier, I want a pair(s) that will likely NOT be affected by a news announcement; No AUD or JPY news today. This pair was perfect and it's one of my favorites with a spread of only 5.
I mostly trade EURUSD but when I am trading one of the other two (USDJPY USDCHF) I find I miss the 'local knowledge' you build up from only trading one pair. Do you allow for this somehow or is it not an issue.
I trade Fozzy and Inside Bars on 19 pairs and have for almost two years; so yes, I have some "local knowledge", but I don't think it's a real factor. I don't usually trade GBP/CHF intraday, but did yesterday because it was a "no-news-pair".
Also, the spreads get really big on some of the exotics. Do you take this account?
Yes, MM and Risk Management require this. The GBP/CHF has a spread of 8. My trades yesterday had smaller profit targets for that reason. My first trade was a loser on the 1M because the trend change did not begin as soon as I anticipated. 19 pip stop plus 8 spread = 27 pip loss, but the next two trades on the 1M took me to a 100+ net gain. Take a look at what happened to this pair yesterday; you'll see the trades.
Are you using TRIX alarm on 1H or M5 maybe to find a possible pair to trade and lastly do you have multiple positions open or just concentrate on one pair?
Alarm only on the NLMA set to 13. I like to work one pair at a time, but if a pair gets going like today, I will work with another pair and simply move S/L along on the first trade. HTH!
Sorry for all the questions .. hope it also helps others interested
Thank you for answering me ...
As the MacMan, I was also curious about the pairs with high spread, it is a system of Scalping ...
Another doubt, you could post a picture showing how you define a trend?
Thanks
..A few comments before the answers: ....
I don't trade this pair. I just decided to peek in because of what you've said about it lately. Impressive.
Tradewell, I hope you caught this 100 PIP run on divergence.
Happy Birthday Doblece!!
When you have time, come over and blow the candles out on your cake...
http://www.forexfactory.com/showthre...ay#post2600803
Happy Birthday Doblece !!!
I have learnt quite some from your posts, and I cannot thank you enough for all your informative and detailed posts
Karun
