CHOROS System

You can wait until Monday (when I get to my trading computer) or check the "attachments" on the original Dance thread.

Here is a trade I took this morning based on the following confluence:
H1-10 with M15 10/50 with M5 10/50 (very rare confluence). In addition, the M15 35/50 were separated and price usually bounces around the two MAs in these cases (which is why we call it ping-pong). So I thought I can capture one bounce from the M15 50 to the M15 35 (11 pips). The only disadvantage with this trade was the fact that the MAs were relatively flat and hence didn't have a particular direction to favor. The trade turned out well and I let it run to the round number 1.4450 for a total of +19.8 pips.

In general, the ping-pong areas are probably OK to try in H1 and M15 timeframes when price is ranging. Just be careful when the price shoots up/down from these areas (which it usually does when it decides where it wants to go). As you see in my trade it decided to go opposite from my short but I was following closely with my stop. I was actually hoping to get to the weekly pivot 10 pips lower from where I closed the trade.

Kostas

P.S. Endroute if you read this and you have some advice for the "ping-pong" areas we would appreciate it if you can talk about it here.

First impression of that one Kostas was it must have been a bit tense holding through the retrace against you. But it worked out well. To my eye I cant see a high probability set up but I am not as experienced as you..nor are my results anywhere near approaching yours. Well done getting anything out of this market on such thin volume.

Definitely not a high probability and not what I would suggest for new Dance traders. I am just experimenting with these areas and I want people to start thinking about this as we try to develop the method further.

Kostas

Took my first proper 'Dance' trade just now, probably not the best day to trade though with UK and US bank holiday, some strange movement going on.

Here is the trade on GU: I went long at the touch on of the 35 EMA on M15 with confluence of 10 EMA touch on H1....

Trade, was as +4 but has just started turning against me...

Does this look OK? (apart from the fact I am about to be stopped out lol)


EDIT: stopped out!

I have watched some ping pongs off the 35/50 be good for 3 quick trades..not that I would trade them just yet but definitely worth seeing if we can get the probabilities in our favour. I am only 2 weeks into simming with mediocre results...but have been noticing the potential for a lot longer than that.

Hi,
I'm a new Forex trader and I am trying to become consistent with the dance method. I posted 2 replies 2 weeks ago about my scripts that didn't work. one posible reason for this was my 4digit broker and for this reason I opened a demo account at a 5 digit broker because I didn't know how to edit my scripts in order to work. the new problem is that my templates have round number lines at every 50 pips and not at 500 pips as would be normal on a 5digit broker. if there is someone who could help me reduce those lines number, I would be grateful.

Leo

1. I wouldn't trade today purely as London is not open and I didn't even know US is close too!

2. How tight was your stop? On my charts price did not move more than 6 pips past the touch?

I think today is a good day for siming!

Lee

Leo,

I can help with both here.

IN relation to the scripts, you just need to 'modify' them and more the extra zeros from the amounts shown:

5 digit broker = TP 350 = 35 pips
4 digit broker = TP 35 = 35 pips

In relation to the round numbers, right click on teh screen > goto indicators in the menu > round numbers > edit > change the number to either 250 or 500, which if I recall gives you 50 pip and 100 pip gaps.

I am sure I answered bfore, but if I did not, apologies.

Lee

Hi Lee,

Yea I guess I am just eager to get started with this strategy, think I will stop trading for today now!

My stop was below the wick of the previous candle, but I made the mistake of moving it up too soon, I thought by placing it just below the moving average I would be OK.

Looking at it now, if I hadn't moved the stop I would be in +10 pips by now.

Leo,
Focus on learning the technique rather than using the scripts. I have never used the scripts (although they are useful...).

Kostas

Thank you, Lee, for helping me with the RN lines. The scripts don't work even if I change the TP values...

Leo

lol...... I know how you feel, however, the MASSIVE downside to being to eager is that you will start trading before you have read and re-read everything and you WILL make mistakes and those mistakes will sit on your shoulder for a long time continualy whispering into your ear.....' you can't do this, you're not good enough, you're not smart enough', then add to this a few more losses and you WILL start to beleive it.

Either be VERY VERY aware that this is/will happen and keep your head up OR re-read everything, pick a better day to trade and then try again.

Bank holidays can have a big effect on the market, for example, today is funny and tomorrow is likely to be too as there will be a large number of traders that have not traded for three days now and they will want to close/open trades.

Like I said before, it might be a good two days for using the Simulator. I know this is NOT want you want to hear, as its not what I want to say and it certainly wasn't what I wanted to hear from Clay when I was first learning, but the annoying fact is, it's true.

Either that, or as I ssaid previously..... you gota be incredibly headstrong to not be dragged down, even just a little, by a few stacked losses.

Lee

When using this method, how do you judge which moving average to pull the trigger on?

I have spent 3 hours in the simulator but am down about 10%....I find when I take the trade on the touch of the 10EMA price just keeps going and then goes in the direction of the trade a few bars later.

If price bursts through the 10EMA, I wait to take the trade on the 35/50 but everytime I do, the trend changes and stops me out.

I must be doing something wrong, anyone shed any light?

hi


i also experience this too, but i asked clay about it during his thread he said the touch of the 35/50 should be taken if it is at a confluence of MAs, around round numbers, a level of S/R or area of PA. among all i trust the confluence of MAs

Ultimatus,

Typically with any "touch" or "bounce" trade, use the bounce of the shorter MA (10 EMA) just after a cross over... You want to confirm the trend, wait for price to close above longer MA's.

The key is letting the market show you it's hand.

Here's a screenshot from today. Not a good day to trade, but you can still see what's going. Mid day, we get a soupy market, stay out.
http://img203.imageshack.us/img203/6...rusdsample.jpg

The 'touch' trades are best taken when the relevant MA is at a steep angle. The lower the angle the lower the chance of a good bounce.

The angle should be in the same direction as the previous trend, ie if price were moving north it would drag the MA's north with it and they would be pointing somewhere between 1 and 2 on the face of a clock (45 degrees roughly).

So when price retraces south and the touches the relevant MA then you would trade it Long (north) again.

The angles are very important if you are trading a single MA and especially so with the 10ema's. However, that is NOT to say that price does not bounce when they are flat, it's just that 'flat' bounce is NOT part of the rulebook.

The other indication that a 'touch' might be a good trade is when it is in confluence with something else..... confluence meaning that it is sitting on top of, joined with, next to, paired with etc etc.

Though we only have a few indicators in this strategy, there are easily enough to give a fair few confluence trades per day. We have the following (and if you do not have these, then I suggest you get them (and it probably means you have not read the isntructions correctly):

Round Numbers
15minute: 10ema, 35SMA, 50ema
1hr: 10ema, 35SMA, 50ema
Daily: 10ema, 35SMA, 50ema

Additional indicators, which a few of us have added, please only add the pivots if you are new to the strategy. Despite not having many indicators and can see how only a few soon add up when trading many timeframes.

Pivot points
1m: 10ema, 35SMA, 50ema
5m: 10ema, 35SMA, 50ema
1hr: 62ema


Therefore as you can see, at any one time you 'could be' (not for beginers of this strategy) trading with upto 15 ma's (3 per 5 charts) with matching pivots and RN's.

Confluence is the convergance of any of the indicators either within their own timeframe or between the timeframes.

A few examples:

The 15minute 50ema and the 1hr 10ema.
The 15minute 35, the 1hr 50 and a RN
The 1hr 35, the 1hr 50, the daily pivot.

The more confluence something has, the higher the 'probability' it has to react the way you beleive it will.

Now something worth noting, that is in the instructions and if you missed this, then you REALLY REALLY do need to re-read the instructions (I do, once per week), when price moves in a good trend, you will find that the 35sma and the 50ema in their own timeframes start converging to follow the price. When price starts to stabalise then the two MA's drift apart.

Therefore, when you take into account the rules of strong angles on touches of the MA's you can see why, as previously mentioned, confluence between the 35/50 on their own timeframe is a strong trade.

I hope that has made a few things clearer..... if not, please ask again.

Though, please please ensure that you are fully aware of the rulebook. It is KEY to this strategy, especialy so as we slowly start to add to it.

You MUST get the basics down, this is imperative to moving forwards. If you try to do to much to start with, it will really mess with your head and one of two things will happen: 1) you will quit this strategy or 2) It might be the final straw and you quit trading. Neither of which is good!

Lee

It's not part of the strategy, but just be aware that it's a new week and a new month. Be sure to check the relevant charts.

Hi,



Two losses across the two pairs on very similar trades.

See chart below.

I think in hindsight (wonderful thing isnt it!) I should have either been in and out before the London open or have waited for it to open and settle a little.

...... still, thats a lesson for next time!

Nearly entered a trade on NO signals, trying to chase it back.

Gonna sit out for a while..... and meditate.....or have a coffee (more likely)