Trading using Murray Maths and Price Action

thanks for asking....maybe i was not too clear in what i was trying to say....when u trade against the trend, u either keep small SLs or very large SLs (which i dont prefer).....if u have a SL of say 75 pips when u trade against the trend, if ur SL is hit, u know that the retrace is over and the trend has resumed....so in such cases, when u trade against the trend, always keep an SL at a place, if when hit, confirms that the retrace is complete and the original trend has resumed...

i would not advocate any standard SLs for any trade...always find the nearest support/resistance and keep the SL beyond these, however small or large this SL might be....

hope this is clear...if not, pls feel free to ask...

Yes, that makes it clear. Thank you.

On that gbp-jpy chart the S at 134.38 would you consider buying there? Or you would rather wait for price to go to to 131.25? Just wondering why not try to enter at 134.38.

i would rather try buying at 134.38 itself...with small lots...if and when it reaches there....

tomorrow, i will try and post live trades as and when i can....pls dont take these as trading recommendations though....

Hey karthick on the gbp-jpy the candle broke R at 137.50 pretty solid. You think it could now target 140.63?

Thanks Kartik for more helpfull information and as an first time use of this system trying understand myself ,if wrong correct me please .

Though I am not trading GJ now, place the indicator on for ref. ( by the time it open may have gap & lost ) .

PA friday close 1.3750 below daily 4/8MMM, major support/resistant.
I see the idicator also drawing 4 lines inbetween MM lines exactly 2nMM,4nMM and 6nMM ( nMM1 39 ) and if I consider PA within the range btw 4/8nMM & 5/8 nMM ( 139.06-0.39=138.67) bounched from greatest minor SR of 4/8nMM .It can have get support at 5/8nMM Top of Trading Range at 1.38.67 any nMM level or at nMM2/8 138.28 or any below .

After that it can go up to retest 4/8nMM , if break up to 5/8nMM or up.

It seems levels 2/8 to 6/8 most safest and most frequent move 3/8 to 5/8 with an eye at 4/8 in all major,minor or baby MM and entry be safest after 2/8bMM if any major or minior MM breaks.

Here as per the indicator draws daily SR =2504,MMM1=2504/8=313,nMM1=313/8=39,bMM1=39/8=4.88 approximate .

Perhaps it is not that easy ,more to understand in time if possible .
correct me if wrong or misunderstood.

fontu

[quote=ns_karthik;2620512]Range trading is process of taking out a few pips of every small move in the price of a share or currency. This works best in a ranging directionless market where the price moves up and down without knowing where to go. It is in such a ranging market that the supports and resistances work very well. The idea behind range trading is to buy (or sell) near a support(or a resistance), wait for it to move up(or down) after hitting the support (or resistance) and thus get a few pips out of this move.



Hi Karthik,

Thank you for the thread. Such a wonderful explanation. I am sure both newbies as well as experienced traders will benefit from this thread. Thank you again and keep up he good work.

-myfx-

Assuming EUR/USD tests supports before heading long this is my plan, please critque and fault my thinking if I am going astray.

Last weeks high : 1.3739
Last weeks low after hitting the high : 1.3515

1. I would long half of my normal full position in the low 1.3505-1.3525 region, because this is the 2/8ths reverse region on the 5min chart.
2. I would manual stop loss below 1.3428 if price seems to be going below this level. This is the reversal point shown on 1hr chart.
3. I would add to the long at this level (~1.3428) to make up my normal full position if price action confirms reversal.
4. Disaster physical stop loss at 1.3306 if there is a unexpected spike downward.
5. Ideally take profit target at 1.3672 (confirmed on 1hr and 4hr) but I know I am not disciplined enough to wait that long, so will also look at 5min MM levels and price action for exit.

OR.....

If price heads north and I don't get an entry where stipulated. Then will wait for a reversal and re-evaluate, and always get into the market with the trend. Counter trend although possibly lucrative (look at 5min chart drop from mid 1.36's to low 1.35's) it still scares me.

HTH

http://i44.tinypic.com/14wd4t1.gif

I am not sure which post I got this from.
This is more adjustable one and less crowdy in the chart for the purpose.

You can leave MM TF as "0" to show the current chart TF.
Appreciated if someone can explain better the external funcions.
Regards.

as seen from the chart, GJ broke thru solid resistance at 139.06....long at 139.22....

it could...but as i said, i am a scalper....am not really worried abt the direction...!!

got out at 139.42 for a quick 20 pips....:-))...

20 pips in 15 mins....love the asian session....

well, nice analysis, fontu....but i try to keep things simple....first....i dont trade daily...i trade the 1H as i am a scalper...and so i dont look at the lines in between the major S & R...i just look at the big fat lines only....as shown above, i wait for price to reach or break a specific S or R and then i trade accordingly for a quick 20-30 pips per trade....

as seen below, EJ hit solid resistance...short at 131.25....

doesnt seem to want to go down.....got out at 131.23 for 2 pips...

i am just wondering why my thread is not under 'Interactive Trading' but is under 'Trading Discussion'...any ideas??

Most small traders use what is known as a mini account where 1 lot is of 10K units and each pip is worth 1 unit. These mini accounts can be opened with as little money as $250. At the outset, this looks like a boon to small traders as people can get exposed and also make money with as little as $250. If you get a call right, you can make 10-20% of your investment in a single day. Now where else can you get such returns. This mini account with $250 should surely be a boon, we might think. But…Think Again..

Here is where the concept of leverage is very important. Leverage is the ability to control a large amount of something using a small amount of the same thing. Here in a mini account, you control 10K unit using just $250. Here in this case, the leverage is 10,000/250 = 400:1. That is your leverage. It looks great on paper as long as you only think about the profits that such a leverage can bring in. Assume that you bought 1 lot of EURUSD using this money. Lets assume EURUSD was 1.0000 when you bought it. It goes in your favor and rises by 1% and becomes 1.0100. So you make a cool (10000 x 1.0100) – (10000 x 1.0000) = $100 on your trade. This means that you made 40% of your investment in your trade. That sounds fantastic. Absolutely!!

But now consider this. The same trade goes against you and the price falls by 1%. So you lose the same $100. This wipes off your account by 40% while EURUSD has moved just 1 % !! So you lost 40% of your account in a single trade leaving you with next to nothing for your next trade. If your trading and your account is worth only for one trade, then it will not be a very good trading career that you are going to have.

Now consider this. You have $1000 in your mini account and as above, you buy 1 lot of EURUSD. This time the leverage would be 10000/1000 = 10:1. Now if EURUSD falls by 1%, you will lose $100 again but this time, it will be just 1% of your account. You lose 1% of your account when EURUSD moves by 1% which is fair enough and this gives you a lot of leeway for EURUSD to move even further against you. Even if it moves further against you, you still have money in your account to sustain that move. If you chose to close it, again you are left with $900 using which you still survive in the trading business.

Of course, a rise of 1% would fetch only 1% return but the aim of trading is not to become rich overnight but to remain in the game for as long as possible and to make slow, steady and consistent profits.

Always remember to have as low a leverage as possible. Trading 1 mini lot using a $250 account can be done only in dreams. Don’t even think of it. Try and have a minimum of $1000 for a mini account (many professional traders will say that even this is very less). I am sure that there are few success stories around of people who made a lot with just $250 but remember, we are not here in trading to be exceptions and to be a smart ass. We are here to make money against a lot of odds. So be as much leveraged and have as much margin as possible. If you don’t have enough money, just wait till you get the required money as it would be no point starting off with $250 because you are going to lose it anyway.

EJ broke thru solid resistance at 131.25 and is staying there...long at 131.30...