Cable Update (GBPUSD)

i am in long @ 5972 and turned SL to TP ,, SL tight but lets see what will happen.

The why happens due to selling or buying , that is the only thing tht will make a mkt move a simple fact tht gets overlooked a lot , you need to have more of one than the other or the mkt doesent move . Your compression charts point out areas to sell into strength, buy into weakness etc , the when happens when the tipping point is finally reached one way or the other

He means your smoking to much weed if you think you can buy GBP/USD at 1.4203... nevermind your TP1/TP2... LOL

Moving average cross overs are typically laggy signals and depending on the time frame that you look at, can get you into a trade just as the trade is coming to a point of reversal.

The compression lines that Dr. D uses, have a little more significance. They indicate consolidation and like he states, can help to pin point explosive movements. The longer time frame trends will most likely prevail, but these compressions as has been stated are times to look out for.

There are several trading styles on multiple MA patterns, call them ribbon, rainbow, or clouds....this is just one tool that Dr. D has offered to FF, and we have as time permits been working on validation of direction based on compression in the different time frames.

With his offerings, it should more welcome suggestions on possible directional plays then should be used as a sole indicator or as a point of issue amongst other traders.

A lot of known candlestick and play patterns can be head fakes, from as simple as the basic indies to the custom, charge per month pays.

Take what Dr. D has to say, see if you can apply your logic...See where this can help make you and others profitable.

Commendable efforts D..

Example of rainbow/ribbon charts....

They are pretty, but really offer me little.

do you feel that when losing only? or losing & wining?

Jemmy,

It depends on the point of view...since I'm doing minimal screen-time at the moment I'm concentrating only on the very top layer of the moves and ignoring anything below 24-72 hours cycle...

However, if I wanted to monitor the market more closely I would fine-tune and try to also capture the swings which currently I am not interested in doing....

Dr. D has given you the tools to use for the when and I have given you the tools for the where and how much. Put the two together and what do you get?

1 +1 = ????? hmmmm lets see 6.

And these head fakes you talk about can be uncovered using multiple timeframe fibonacci's and specific timing concepts with regards to time left to close of the candle.

Exceptions to all rules and time dependent on specific trading sessions as well...volume and such.

Most bottoms and tops I can see off of the specific moving averages, so, following direction of the smaller trends inside of the larger can help out with these as well...and of course having a safe exit based on support and resistance can be important too...especially in a choppy market.

I am not a full time trader.

More of a hack really...but I do have a fair sense of movement and grandly agree on watching the multi-time frames, so when I have the time available for trading and I can usually pick a point of entry and exit and can come out ahead.

Playing pivots, supports, resistance and direction of the majors...meh...it's just a hobby, and pays more then surfin pr0n...I figure a way to profit from that I leave the forex markets.

I use the fibs, they are on all time frames as well as work together with them and select moving averages for support and resistance ranges.

Chart example below.

Hi Ctic,
I've been reading your posts with interest and am slowly getting my head around your usage of multiple time-frame fibs. I've a couple of questions which I'm wondering if you could answer for me please?

1. As a session progresses, do you add additional fib indicators to your charts to reflect the movements over the newer time-frames?

2. At what stage would you remove your old fibs and add new ones? I'm assuming there are always historic fib levels that will play an important part at some stage in the future. But what would you recommend is the best way to keep these levels in view without clogging up charts? Is it as simple as a notepad?

Apologies if these questions are relatively basic but appreciate the assistance you are providing in your posts.

In fact, I really appreciate all the posts by other traders who are regularly providing useful tips and explanations. Many thanks to you all.

Cheers
Fatgeeza

Your trading style is very similar to mine although we do have a few differences. The main key to my trading style is using the smaller trends to decode the bigger ones like you pointed out. I have spent years looking over the charts and decoding correlations between them. For example, in the forex maret most candles at some point retrace back into the previous candle (there are exceptions). Thus the daily retrace is the 4H high or low. The 4H is the 1H ect. so down the line. Thus the fib lines 138.2, 161.8 target zones for the smaller tf's will be the turnarounds for the larger. I simply use the MA's a a point of direction and the compressions for the when. Once the large timeframe hits my target point then it is time for a large reversal and a total change of trend. Fortunately using this method has allowed me to quit working and be able to trade full time.

My one day goal....

I have committed to myself to make this a year to go full time, but it too turns into as a time allows. My goal was 10k 3 months in a row to go full time, and with the improvements over the last few months and my plan of sticking to safety ranges and a lot less speculation will hopefully see this goal come to fruition sooner then later.

I use selected times for retrace. Knowing that the price will strike the chart more then once on a 24hr period, I used a modified session trade indicator and plotted the time that seems to hit with the most accuracy. Because of the time, it typically results in a range, I shoot for reversals to the bottom side and wait for entries on top with confirmation. It is usually good for 50 pips per day and gives me somewhat of an idea of where we are heading when plotting them on 30m chart watching the week.

Chart example below...simple7x on my thread, template and indies included.

It's not 100% accurate all of the time, but playing just this, it is easy to add a few more greens to the back hipster to be sure.

Play it like a pivot. I will wait for the drop this evening and buy against the downtrend with bottom side as target, through London trade session.

And you will get it too. At some point today, and for everyone do not trade this as I do not have all my charts updated for the new day yet, the price should rebound to the 1.605 level. That is just playing the piviots, supports and resistances. Target for the drop will be 1.58896 and 1.58469 after that rebound. Breaking those would send us to the 1.5675 area.

Hi TheGabriel,

I don't know your trading history or background but I do agree to some extent that markets are not easy to read I agree however, there are still many ways to comfortably profit from Forex. It is really up to the individual. By the way if it was that easy, everyone would be doing it or atleast everyone would be profiting. This post may not be for you however I hope it can be useful to others. Like I said I don't know your trading background.

You're probably wondering where I'm coming from. I am 30 and recently retired and living off my trading results. My ratio of success is 87% to 13% (rounded) based on over 500 trades just incase you are wondering how accurate that ratio is. My average trading profit is $124 and average trading loss is $42 and average consecutive wins are 9 whereas average consecutive loss is 2... this is over a 4 month live trading period.

Now this post is not to sell a system or brag but to hopefully encourage you and may give someone abit of a helping hand and that there is a light out there in Forex.

I won't be telling you about my strategy as I don't kiss and tell and I have a rule that if I had a golden goose that lays X amount of eggs, I would prefer to keep them for myself. I make my money as a trader and not an educator.

However, here are some hints that may or may not be obvious to you. These have helped me along the way.

1. Know the news via this website and its effect... never trade it during the announcement but trade it after the announcement preferrably atleast an hour after. Be sensitive to your chosen currency ... choose 1 only at the start and work from there. Know when this currency is at its most volatile and when not to trade. If you are intimate with your currency then you will roughly get an idea on the price ranges and where something is a good buy.

2. Never rely on 1 indicator to tell you when or when not to trade but rather think of it as building a house. No one person can build a house in a short timeframe by himself but rather there are bricklayers layering the bricks and carpenters doing the woodwork etc...

3. When choosing an indicator, try to break the indicator.. what I mean by this is know areas that it provides false signals and find another indicator that would detect it... I call this finding noise filters. Personally I have 5 indicators in total on the chart and on separate windows. I use two to pique my interest and then the remaining 3 will either confirm this whilst not conflicting with each other.

4. Remember not any system or strategy can be 100% correct. So expect to lose a portion of a time and if you have tested your indicator correctly per point 3, you should also find an early detection mechanism when a reversal is due...

5. The theories such as Elliot Wave and Fibonacci etc... they do work just not all the time. Read the history of it and understand that if everyone favored one of these theories then it would be self fulfilling and no one would make money.

6. Never pay for education unless you are really poor at being resourceful and digging around the internet. I think I learnt 95% of everything I know in the internet and the other 5% I paid for I could have gotten fromt he internet... it is also useful having a network.

7. Never believe anyone... spend most of your time backtesting a suggested system, strategy or indicator and be comfortable with it. Who else is best to look after your future other than yourself.

8. Demo everything first! then Go live when you have successfully been profitable over 3 month period on one or more strategy. Personally I spend around 3-4 hours of total forex time, I spend no more than 1.5 hours of it trading and the remaining reading posts, news, testing new thing I learnt .. I call this R&D (research & development). After all even McDonalds as big as they are, the continually introduce new items on their menu and some of these they retain as a regular on their menu... you should treat your trading like a business too..

9. Here's the only thing I will reveal. If you are comfortable, use a margin level of 1:200 therefore your required margin for a trade is halved and gives you more room for more trades or buffer balance. From a sizing perspective.. based on this margin level you should trade 0.1 size for every $500 in your capital and have no more than 2 trades open preferabbly 1 only when you start trading. This will provide you extra buffer for the just in case you've gone in too early!

10. Markets are not like life, in life if you are walking in a busy area then everyone usually tries to avoid bumping each other out of courtesy etc. However in forex trading, he who loses money gives most of that money to the person winning therefore each trader is really hoping to make money out of you... that my friend is the only way money is exchanged in the markets... one must lose for one to gain... the only ones who wins all the time are the banks and the brokers.

Finally, do not worry about losing money on the Forex so long as it does not affect your livelihood. I lost $4,000 during my early endeavours of trading. Since then, I have learnt much more like money management etc. and my trading has taken off. In fact I have made the loss plus continue to make a living & retire on forex trading... it is a temporary set back.

All the best!
Ronnie

You got me wrong. I did not meant my question towards you as an attack btw. And I don't pay attention to the blabbering idiots who post absolute rubbish here too either.
It's just that you do seem like one of the few people who do try to help out others with your posts, so I thought since you're trying to share, maybe it'll be worth the while if you could point your method out to those who really are here to learn in the manner that I mentioned, which is before the actual move happens. I only thought it's a bit easier to see how those compression really works in real time since you are familiar with the method.
Personally I do not use moving averages & the use of multiple period ma's on your setup means that there are supposed to be fast and slow triggers. What would be the rule to place an order based on the conflicting triggers? Because it's very easy to point out the "release" as you mentioned after the fact, but the use of multiple ma's could also result in whipsaws. Would the rule include candle separation from the ma's? Or does the rule require for the ma's to crossover? ma crossovers lags greatly, by the time they all crossover you'd probably miss a bit part of the initial release.
Just trying to understand your method better as I would suspect some of the guys here would too. No pun intended.
Thanks for taking the time to reply tho. Good luck.

Gabriel

The issue with most traders is that they percieve the markets to be hard to trade . Why ? well because they feel they have to be in the market all the time , rather than wait for the right set up to come along that they like , is on their terms and makes sense to them .

I wonder how many traders that traded right thru xmas , into new years eve actualy make money in the LONG term. I am not talking about for one week they are profitable. I wonder how many of the traders in these forums that have been trading for 1 year or less and day trade are really making money. Day is notorious for being the hardest form of tradiong out there , even with a perfect system it is your mind set that will make you or break , so in relaity you are not trading aginast the market , rather you are trading against your own mind.

I have noticed from a lot of posting in ff that guys are making 10 % a week or more , some doubling accounts in a month etc etc. To be honest if they were really doing this year over year they would be in the top 5% of trader world wide.

FX is a tough thing to make money at. It is all about risk management , part of that risk management is knowing when to trade , when to stay out and what set ups to trade.

Do not get disheartened .... even if you break even you are doing better than 80% out there.

Yeah Malcolm is right...

The only reason I have such a great successful rate is because of selective trading.

Can one continue to double their money year on year.. possible but only to a select few. What Ive found useful is if one focuses on pips captured rather than $ captured. This takes some of the greed and emotions out of a trade.

For example, I know of a trader who only ever captures 10 Pips a day.. but 10Pips a day is not much however he trades 50 sizes at a time. So roughly that would be 5000 per day of successful trading. The reason he chose 10 pips a day is that he gets too caught up when he trades > 10 PIps.. he started with a small capital and over a period of 2 years he built up a large enough capital to trade 50 sizes at a time and live off 10 Pips a day.

Moral of the story: Know yourself your capabilities... know your market and your currency.... TRADE to YOUR CAPABILITIES! Trade with DISCIPLINE!

anyone go long here?

Just closed out 5 lots that were long for 104 pips....

Waiting for next entry....

will gu hit 1.62xx?