Cable Update (GBPUSD)

Everyone is different and we all have different trading strategies and plans, so this is mine. The key is to stick to your plan.

My goal is not the number of pips I make in a day, but the number of trades I make a day. My lack of discipline meant I was overtrading and spending far too much time pip watching!

In my day trading plan I have no pip targets, but I will now limit myself to 2 trades per day. This means I am forced to wait for the right setup. If I lose on both trades, I will shutdown my computer and I will walk away and I will not trade until the following day. This is going to be hard, but I will have to force myself. This is where discipline will come in and this is what I will have to learn.

On the other hand, if I have 2 winning trades, I will consider myself to be in tune with the market on that day and I will allow myself another trade. If that loses, I stop with 2 winners and 1 loser. If it is a winner, I will have another trade to the maximum of 5, so that on my best day of trading I will have a maximum of 5 winners, no more!

My other rule in day trading is that I can only trade if the Risk/Reward ratio is 1:3 otherwise I am not entering this trade and I will wait for another setup. This also means that in one week, I can have 7 losing trades and 3 winning trades and I will still be in the green for the week.

My final rule is that I am only allowed to day trade two currency pairs, EU and GU. These are MY rules and they are in MY trading plan.

What I am trying to show you is that pip targets are not always the best targets, exactly for those reasons that you mentioned in your post.

I wish you every success with your trading and whatever your rules are in your trading plan, stick to them!

Hi Guys,

I was make Important Posted in :

1. About INDI's in Post #229964 Jun 4, 2010 11:02pm

2. About Trade STRATEGIES in Post #228095 May 22, 2010 10:41am

3. About Trade RULES in Post #200310 Feb 18, 2010 7:45am

ALL this, I Reply again for REMEMBER...
Especially for NEWBIE / JUNIOR. My advice to Learn (again) in TRADE :nerd:

Hopefully useful for ALL

as I said Magix talks in riddles ..... lol

Have a good weekend Mag ...

Excellent stuff

Digger, thanks for the correction. Still learning here.

Now I'm not sure from which chart I got the QL3??
It must have been from a lower tf other than the daily.

When I pull up a daily with the quarterly templates it
matches yours exactly. From that quarterly chart I
see that QH2 (1.5487), QL4 (1.4259) and QL3 (1.4719)
have stopped each of these recent major moves.

How were the other numbers? Daily? Weekly?

Dr. D.

Hi 1BB,

Nice to see you again, Bro

Let's WE are together (with kill56) do NOT Boring always WARN for NEWBIE / JUNIOR for SERIOUS Trade
Maybe... This is Our DESTINY ??

Happy Weekend for you...

Teachers rather than traders

Nice to see you back here bro. Have good one!

I know there are plenty of people in this thread that understand what I was talking about. Any GOOD trader knows that the only way to trade against the trend is by scaling in. Now, I post about a guy that I used to work with who places a trade on Sunday night, then on Friday he exits out +4 pips, but ends up making over $100,000 on this trade. He has taken a bad entry and turned it into a monster trade. Sorry Magix, but that is what is called trading. Now, I have been a long term trader for a long time and I am just learning how to scalp in between the longer term trades and I have a lot to learn about scalping. And to me, 100 pips is scalping. And thanks to a few in here I am learning because I believe I can make even more by scalping in between my Daily positions. But $28,000 is ok if you can deal with that small amount each week and if you can actually do that once a week, then good for you. And time will tell as I have seen people like you who are very nasty when they post, come and go in thepast 6 years I have been in here. Time will tell, so you better cool your jets.

I appolgize to all the polite people in this thread and I will not touch this matter again.

Jim

I have just started trading in the last 6 months and for the last week have been reading the posts here and trying to learn. Probably this is not the right place to ask but i need to start somewhere ...
I have been trying to understand how to calculate the Support and Resistance and the pivot points. Can you please help ...
any guidance or even if some once can point in the right direction is much appreciated ...

RamkSanj

hi crackheads

u cant stay away from the pipe

every day in this lovely room we have ppl helping teaching all of us they do care thanks gos to all of them ,
some of us jump in when we see any thing will affect the newbies it might offend some which it should not nothing personal we do respect all the ppl here and its for all of us a learning process daily
lets work together keep in mind a lot of the new comers do copy our trades ,and most of them have small acc's and they cant afford big drow it will kill them ,

Well Dr D , think of the numbers as a comparison to multiple timeframes , use the dailys to to trade the weeklys back and forth and the weeklys to trade the quarterlys back and forth. Price had got above the weekly H4 and just coulnt hold that level as it was up against the QL3 and last quarters low . Appears to be a bear flag on the daily chart so take your fib tool you got set up and put it on that range, will give you some targets below . the 1.272 and the 1.618 extensions are the ones I use. I am no ew expert but something I am watching for a little longer term. If it decides to go the other way you then have the 1.272 and 1.618 levels on the topside as targets with the 1.618 being near the quarterly open. At any rate there will be tradeable moves either way it decides to go. I am still leaning to the down side overall but it really dont matter as long as it moves.

Here you go Dr D , the previous range we had and how it played out with the fib extensions , made a good run towards the 1.272 to the up side but was stopped cold by the quarterly pivot, once the quarterly open gave way both the 1.272 and 1.618 levels were taken out below. Anyhow doc just remember these are on a daily chart it wont play out in 5 minutes , your daily cam levels and how price is using them and magix s averages will help keep you stepping in the rite direction as it unfolds

This person has a nice sheet with a lot of good stuff for a beginner, You may want to talk to him.

Jim

http://www.babypips.com/school/

And this

http://www.traderslog.com/support-re...FQ_yDAodpBD6Vg

We could find ourselves retesting this UTL break early next week.

Jim

here is a calculater and i will post some info later

click on the voodoo below and a lot of info inside

bbaker thanks for sharing. I should probably put a limit on the number of trades each day. If I do my limit will be 2 and it should be absolute. If the first trade is a loss, no second trade that day. I will have the same problem with it as you do but I think it is a key factor for me.

I will decide tomorrow how I'll do and let you know how it works out.

I see some similarities. GU, EU but i also trade USD/CHF (but not for the momemet to much intervention) and USD/CAD.

Best of luck.

read with me

Fibonacci Made Easy


I don’t know why, maybe because those “forex coaches” like to make money off newbie traders, but for some reason with most things in forex the simplest of things are turned into insurmountably complex ideas and theories that leave people frustrated and confused instead of educated and empowered. And never has this been more true than in the case of Fibonacci Lines. More literature and debate has gone into this area than most of the other 1,001 indicators, and more “expert” use them to baffle and confuse traders than any other indicator . But it only shows that these lines are hugely popular and important to trading success. And I am about to give you a very simple lesson on how to use them.
Why are Fibonacci Lines so important?

Just as support/resistance and pivot point lines work so well because big banks and thousands of successful traders use them in their trading strategy each and everyday, the same goes for fib lines. It becomes a self-fulfilling prophecy when so many people see the same things and interpret them in similar ways. They work on any timeframe and with any commodity (oil, gold, stocks, futures, etc.).
Traders use these lines for two crucial reasons: 1) They are great at predicting where a retracement will likely end and 2) they are great at predicting where the price action will continue towards once the retracement period had ended. So in other words fib. lines tell you where you can jump back into a major trend when a currency pair starts retracing and where to take profits on that same trade once the pair resumes in the direction of the main trend.
How do fib lines do this?

Continuing along with the above two points, you can think of fib. lines as having two distinct functions: retracement lines and extension lines. One tells you key levels to watch for support/resistance during a retracement, the other tells you where you should set your T/P once the trend resumes its original course. Here’s a pic that shows how I used fib. lines to predict where the EUR/USD was headed after a brief retracement period.
http://forex-nation.com/wp/wp-conten...e2-150x150.jpg
How to draw fib lines

So let’s go over what that pic showed you. First in order to draw your retracement and extension lines you need a swing high and swing low point (points A and B in the picture). Now there’s no science behind picking these two points because everyone interprets their own charts a little differently, so you try to get as close as possible to what everyone else sees. How do you do that? One good method is to look for long wicks on the candle sticks because that usually indicates that a reversal is in the making.
Once you can clearly see that price action is in a true retracement you wait and see at what level does the price action encounteres support (in a up trend) or resistance (in a down trend). Usually that level corresponds to the 38.2, 50, or the 61.8 retracement levels. Aggressive traders will jump into a position right at each one of those levels with their S/L 10 pips above it, then if that didn’t work out and price continues to the next retracement level, they will jump back in again. This explains why price action apears to be in a tug-of-war at certain times. At some point the retracement period will end and then price action will continue back in the direction of the trend and those aggressive traders will make up for lost pips. A conservative trader, like myself, will just wait and see where price action actually did finish retracing, and then jump in a little late but safer and with less stress, still knowing where the trend should meet support/resistance again based on the extension levels. I would rather go for 80% of the safe pips than try and snatch up the 10% to 20% of the pips that I miss out on through waiting. Remember in trading it’s not about how much you make, its how much you make AND can hold onto in the long run.
Rules for success when using fib lines

So what are the rules for where price action will go once we see its finished retracing and back to trending in the original direction again? Again, this is not an exact science here so you don’t want to just place your T/P right on one of these lines, as prices may not quite reach the line, since other traders are interpreting their own fib lines and acting accordingly too. But in general the rules go:
23.6 will continue on to 118 or 127
38.2 will continue on to 138.2
50 will continue on to somewhere in between 138.2 and 161.8 (use other indicators to know where)
61.8 will go to 161.8.
The big ones to always watch for are the 38.2, 50, and 61.8 retracement levels and their corresponding extension levels. I’d say about 75% of the time those levels are the ones that end up being hit.
Setting this up in MT4

So the last thing I need to do is tell you how to draw these lines within your MT4 platform. Sorry for those of you who use other platforms, but you still learned the bulk of the lesson. Now for certain reasons, MT4 designed their platform to have two separate fib tools, one for retracements and one for extensions. But as I just showed you, both of them are used in conjunction with the other, so I just combined them into the retracement tool so that I don’t have to draw the lines separately. Here’s how to do it.
Place a fib retracement on you graph (it’s the 7th button from the lower left row of your chart toolbars in MT4). Then go to Charts, then Objects, and then click on Objects List where you will see the “fibo line” as it’s listed as. Highlight it by clicking on it once, and then click on edit to your right. Once in there you can input levels of your own. Input the levels in this order: 0.0, 23.6, 38.2, 50, 61.8, 78.6, 86, 100, 127, 138.2, 161.8, 261.8, 423.6. And in order to see the price at each fib level, click the Fibo level tab, then type next to the numbers in the description, %$. This will give you the corresponding price for each level you have selected.
Now whenever you go to draw a fib retracement you’ll have both the retracement lines and the extension lines drawn simultaneously!
There’s two more points I have to address here. The first is the “bonus” levels of 261.8 and 423.6. You’ll see these levels reached sometimes when applying fib’s on the lower timeframes and they are bonus rounds you could say for an extension. The rules you follow to know if the bonus round will happen is if you see the 161.8 level broken AND then retested as support/resistance AND it holds up as such. In that case your likely going to see the 261.8 target hit and if that holds up as support/resistance you can expect 423.6 to be reached. Lock in profits behind the 161.8 line just to be safe.
The second rule, and this is a real crucial one, is that fib’s are ALWAYS to be used in conjunction with other indicators. They are not a standalone kind of thing where you can base your decisions exclusively on these lines. You should have moving averages telling you what the main trend is doing, your own support/resistance lines as well as pivot points confirming retracement and extension levels, and whatever other indicators you specifically rely on to make decisions.



Pivot Points


We all know big banks move the markets. They have at their disposal access to a tremendous amount of capital so when they act in the market it’s always apparent by the huge spikes in price action or reversals in trends that we see. They are the market makers, the driving force behind price action that all of us retail traders try to hitch a ride on each day. But banks must follow strict regulations and guidelines before taking a position in the market, thus banks can’t trade on a whim like you or I. Their trading systems are methodical and mechanic and pivot points are a big part of their strategies. So therefore you as a retail trader must be aware of how to use them in order to understand what the big players are thinking.
Now you can think of pivot points as being another support/resistance line on your graph. But the difference with pivot points from your own support/resistance lines is that pivot points are predictive lines. To put it another way, the support/resistance lines you draw are based off of swings in price action that have already occurred where the price went up or down to a certain level and then sharply reversed its direction, so based off of that you can assume it will happen again at that same level. With pivot points you see lines drawn at the beginning of the week where price action is more than likely going to meet up with support or resistance, even though it hasn’t happened yet. These lines should not be considered too definate because price action might pass through the actual line or not even quite touch it. Here’s an example…
http://forex-nation.com/wp/wp-conten...t1-150x150.jpg
There are also daily pivots, although I wouldn’t place as much weight on them as weekly ones. That’s because news events and other technical indicators can nullify their importance. While I don’t typically put much importance on them, many other traders will say they use them quite a lot. If you’re using daily pivots there is also median, or mid way point, between the support and resistance lines indicated by a dotted line. I only use daily pivots whenever they line up with either a weekly pivot point or a support resistance line that I draw on my chart, since that adds more significance to that area of the price range as being a point of interest. These are also available to download under Trading Tools.
Now I’m going to skip how you calculate these lines because that gets done automatically by the indicator on your platform. Instead I want to give you the short and sweet rules for applying them to your own trading strategy.
There are 3 support and 3 resistance lines that you will see, referred to as S1, S2, S3, and R1, R2, and R3. But the most important ones are the weekly pivot (pink) S1 (blue) and R1 (red). Again these are not to be considered “lines in the sand” across which the price action shall not pass. Rather, they are very predictive of what regions to expect to see resistance or support begin to form. Look at this example from the EUR/USD.
http://forex-nation.com/wp/wp-conten...t2-150x150.jpg
Another thing to be aware of is the importance of the weekly pivot line. Most traders will agree that if price action begins the week above it then you should expect it to be a bullish week, and the reverse is true if price action starts the week out below it. But that’s VERY basic and not of much use since the fundamental forces in the markets can change all of that in one day. I only use pivot points as more of a suppliment to my other indicators, meaning if they agree with what my other indicators are telling me the I can enter a high probability trade and perhaps trade a larger lot size with a tighter stop loss. For example, if I see that price action has been moving up and is approaching not only R1 but also my envelope band as well, then I would enter a sell order as close as I can get to that level where the two lines intersect. Where you see your envelope bands and pivot points intersect, you can safely bet it’s a reversal coming (intersection of your horizontal pivot line and diagonal envelop line). That’s because two indicators are in agreement that price action is approaching an area of strong resistance. See image below.
http://forex-nation.com/wp/wp-conten...t3-150x150.jpg
Generally whenever a move starts at S1 it will go up to R1, or if it begins at R2 it travels down to S2. The medians are a little different because a move that starts at M1 usually ends at M3, M2 to M4. So with Medians you skip one M1 to M3. Generally start at a pivot, end at a pivot and start at a median, end at a median.

Agreed with you...
Thank's your Vouch for me

And... I give SOUVENIR The Disciplined Trader by Mark Douglas e-book to you, Bro

hi all

need help here

mt4 not save my charts nor templates when i restart mt4 or the pc and i dont have access to the custom indicators.after reinstall mt4 i can access them and the story gos on the same shitt when i restart

i did reinstall winxp samo samo does it have any thing to do with the new update from mt4

any body have this shitt or its my good luck