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Attachments: 1 hr HAMA, 6 ema
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1 hr HAMA, 6 ema

  • #1
  • First Post: Edited Dec 9, 2009 1:26pm Jul 3, 2009 2:20am | Edited Dec 9, 2009 1:26pm
I often get good entries on 5 min charts from lower highs and higher lows. A big failing is exiting trades too early. To try and rectify this I'm going to see if I can trade as follows.

  1. 1 hr chart with HAMA or a 21 ema (whichever looks better for you they're the same thing) and 6 ema
  2. Only buy above 1 hr HAMA/21 ema, only sell below
  3. Entries, from 5 min higher lows lower highs
  4. Exits, partial exits at weekly/monthly pivots/obvious supp/res areas and balance at 1 hr close above/below 6 ema
  5. Stops, move as trade progresses to key levels round numbers and weekly/monthly pivots.

If you trade like this or similar feel free to share charts and set ups.

As we use our 5 min higher lows and lower highs for entry we use stops around 15 pips. For exits we have come around to the rule of thumb that in a move GU will run around 125-150 pips (yes some days more some less obviously) each day. We try to look at how many days GU has moved in a direction and where there are obvious key supp/res areas near that 125 pip area.

So on this method it would be fair to say that typical trades will be 50-100 pips using stops of 15. One thing I can assure anyone that pops in here THERE WILL BE NO trades with 50-100 pip stops used.

Basically trading above/below the ema with a 21 or similar is just the same as trading above/below rsi 50 level.

See the attached charts as an example. 1hr in downtrend. 5 min entry the lower high close around 6256.

Some of my fave threads:

Psych levels pivots and trend lines http://www.forexfactory.com/showthread.php?t=98028 a look at my charts and exit points should highlight the significance I place on this. Thanks Islander and Eyevoltage.
Higher low, lower high thread http://www.forexfactory.com/showthread.php?t=108544 the basis of the entry for most trades that I place.
Trade Using VSA http://www.forexfactory.com/showthread.php?t=157629 I use on 15 min charts and I find it a great help even with my limited knowledge. Thanks Shamus and Malcolm.
GJ GU UJ Trading Thread http://www.forexfactory.com/showthread.php?t=199926 this is a new one to me but looks like there are some very good traders there, PS if Islander recommends it then thats fine by me.

Attached Image (click to enlarge)
Click to Enlarge Name: ScreenHunter_05 Dec. 09 10.47.gif Size: 28 KB
Attached File(s)
File Type: ex4 HAMA.ex4   3 KB | 1,194 downloads
File Type: mq4 Pivot Points Multitimeframe.mq4   45 KB | 863 downloads
File Type: ex4 DeMark lines.ex4   25 KB | 654 downloads | Uploaded Dec 9, 2009 2:44am
  • #2
  • Jul 3, 2009 2:34am Jul 3, 2009 2:34am
Quoting Vantage
I often get good entries on 5 min charts from lower highs and higher lows. A big failing is exiting trades too early. To try and rectify this I'm going to see if I can trade as follows.

  1. 1 hr chart with HAMA (a 21 ema) and 6 ema
  2. Only buy above 1 hr HAMA, only sell below
  3. Entries, from 5 min higher lows lower highs
  4. Exits, partial exits at weekly/monthly pivots and balance at 1 hr close above/below 6 ema
  5. Stops, move as trade progresses to key levels round numbers and weekly/monthly pivots.

This is new to me so please...

Yeeks V - another thread to watch - and as I know about exiting early too http://www.forexfactory.com/images/icons/icon11.gif - I'll watch with interest...

Good luck

Issy
Trading Levels with WRBs
  • #3
  • Jul 3, 2009 2:51am Jul 3, 2009 2:51am
V - will watch with interest and contribute when I can.

Hate to disapoint you but I am the current world champion for exiting too early.

I am short cable on a L/H Mrs. V entry right now.

Edit - out +37 at the 50 level.
  • #4
  • Jul 3, 2009 2:57am Jul 3, 2009 2:57am
Quoting orientos
V - will watch with interest and contribute when I can.

Hate to disapoint you but I am the current world champion for exiting too early.

I am short cable on a L/H Mrs. V entry right now.

Edit - out +37 at the 50 level.
Yep I see exactly, monthly pivot just below at 1.6335. I missed this one, doing a bit of home care Mrs V has the flu. As we speak I'm off to make tea!!

Great trade though.

The brown ema is a 252 and approximates the 21 on hourly.
Attached Image (click to enlarge)
Click to Enlarge Name: gu 5 min.gif Size: 23 KB
  • #5
  • Jul 3, 2009 2:58am Jul 3, 2009 2:58am
Quoting Islander
Yeeks V - another thread to watch - and as I know about exiting early too http://www.forexfactory.com/images/icons/icon11.gif - I'll watch with interest...

Good luck

Issy
Cheers looking forward to any of your contributions.
  • #6
  • Jul 3, 2009 3:01am Jul 3, 2009 3:01am
For the record my entry was a few pips above the HAMA (which was blue.) on the 60 min chart. So not quite by these rules, but just one of those marginal situations. Pass on my thanks to Mrs.V, and I trust she is now well.
  • #7
  • Jul 3, 2009 3:04am Jul 3, 2009 3:04am
Quoting orientos
For the record my entry was a few pips above the HAMA (which was blue.) on the 60 min chart. So not quite by these rules, but just one of those marginal situations. Pass on my thanks to Mrs.V, and I trust she is now well.
Will do thanks.

I'll still be trading higher lows/lower highs the wrong side of HAMA and will exit quicker. Its just that the trades on the right side of the HAMA I'll be looking to stay in longer.
  • #8
  • Jul 3, 2009 3:13am Jul 3, 2009 3:13am
Sold ej.
Attached Image (click to enlarge)
Click to Enlarge Name: ej 1.gif Size: 16 KB
  • #9
  • Jul 3, 2009 3:26am Jul 3, 2009 3:26am
Stop to BE, target I hope y's low at 133.57.
  • #10
  • Jul 3, 2009 3:33am Jul 3, 2009 3:33am
Nice trade - I was not watching E/J. Me - I would have exited at the round number 00 level in the normal course of events. But let's see what happens.
  • #11
  • Jul 3, 2009 3:47am Jul 3, 2009 3:47am
Quoting orientos
Nice trade - I was not watching E/J. Me - I would have exited at the round number 00 level in the normal course of events. But let's see what happens.
Mrs V rose from her sick bed for a mo and has already poked me with a sharp stick on that, out at BE, looking for re-entry.
  • #12
  • Jul 3, 2009 3:57am Jul 3, 2009 3:57am
I have a wife like that too! You might get a re-entry, with a bounce off Islanders 30 ema. Dinner time here - good trading.
  • #13
  • Jul 3, 2009 4:04am Jul 3, 2009 4:04am
Quoting orientos
I have a wife like that too! You might get a re-entry, with a bounce off Islanders 30 ema. Dinner time here - good trading.
Yep got in again at 134.28, big hammer on 1 hr so this one is on a tight leash.
Attached Image (click to enlarge)
Click to Enlarge Name: ej 2.gif Size: 17 KB
  • #14
  • Jul 3, 2009 4:13am Jul 3, 2009 4:13am
Out again at BE, the failure to go 2nd time means we're on a hl and that 1 hr hammer looks like up for ej from here.
  • #15
  • Jul 3, 2009 4:18am Jul 3, 2009 4:18am
Probably chop with US holiday coming up. I think I'll take up the battle Monday, cheers.
  • #16
  • Jul 3, 2009 5:06am Jul 3, 2009 5:06am
Thats what I see...

Cheers.
Attached Image (click to enlarge)
Click to Enlarge Name: ej 2_divs.GIF Size: 19 KB
  • #17
  • Jul 3, 2009 5:25am Jul 3, 2009 5:25am
Quoting suspect
Thats what I see...

Cheers.
Normally I'm on the look for divergence, didn't register these but running around playing nurse to the Mrs doesn't help.

The traditional divergence on the left with a hammer at the pivot would normally be a trade I'd want to take, but not mention on this thread which is for above/below 1 hr 21 hama/ema only.

I'm not so good at spotting the 'hidden' divergence you've shown on the right.

Very nice spotting those, please post more!!

Cheers
  • #18
  • Jul 3, 2009 5:33am Jul 3, 2009 5:33am
Quoting Vantage
Normally I'm on the look for divergence, didn't register these but running around playing nurse to the Mrs doesn't help.

The traditional divergence on the left with a hammer at the pivot would normally be a trade I'd want to take, but not mention on this thread which is for above/below 1 hr 21 hama/ema only.

I'm not so good at spotting the 'hidden' divergence you've shown on the right.

Very nice spotting those, please post more!!

Cheers
Hidden divergences are just the opposite of the regular ones.. example:
Highs(short):
Price: higher high, Indi: lower high = regular
Price: lower high, Indi: higher high = hidden/also called reversed divergence

Lows(long):
Price: lower low, Indi: higher low = regular
Price: higher low, Indi: lower low = reversed

Thats it
  • #19
  • Jul 6, 2009 12:53am Jul 6, 2009 12:53am
The first trade taken with this method ej sell at 134.28 where we got taken out at BE eventually did fall nicely. Anything could have happened I suppose with US holidays.

I'll console myself with the thought that concept worked with a 140 odd pip fall.
Attached Image (click to enlarge)
Click to Enlarge Name: ej 1 hr.gif Size: 18 KB
  • #20
  • Jul 6, 2009 12:54am Jul 6, 2009 12:54am
Quoting suspect
Hidden divergences are just the opposite of the regular ones.. example:
Highs(short):
Price: higher high, Indi: lower high = regular
Price: lower high, Indi: higher high = hidden/also called reversed divergence

Lows(long):
Price: lower low, Indi: higher low = regular
Price: higher low, Indi: lower low = reversed

Thats it
Thanks.
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