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CHOROS System

  • #941
  • Jul 6, 2010 12:41am Jul 6, 2010 12:41am
Hi all,

Sorry I have been abscent. My trading is not going well, nor is my learning, so I didn't want to burden anyone with that!

I did take a good trade this morning, which is seems many of you spotted and some of you took.

I have posted my chart below. I only posted one as I closed out the trade whilst creating it.

One thing to note: I was overconfident with the trade and moved my TP WAY out. However, I should have taken profit at the FIRST touch of the RN. But I took it at the second.

The reason I mention this is twofold.

1. I am trading live now and am at the smallest lot size I can get 0.1, so I can not close half off, so I really 'should' be taking profit when I can.

2. As I didnt close off, I had a very, VERY nervous 30 minutes or so where I was moving to break even, then moving back to my original SL, then moving part way to get a few pips, then moving back again........ WHY? Well, I'll tell ya...... I got greedy!!!

2 cups of coffee, a curry last night and THAT trade....... I am off to find some rennies!!!
Attached Image (click to enlarge)
Click to Enlarge Name: tradepicentry.jpg Size: 197 KB
  • #942
  • Jul 6, 2010 12:47am Jul 6, 2010 12:47am
Quoting caj1986
Another set up on GU this time that's similar to the first EJ trade I posted.

The market comes down very fast but doesn't touch the line on the long red candle, but when the next candle gaps down slightly and opens its right on the line, is it suggested to take these trades with this method, or is it better to only take touches when its "mid-bar"?

Attachment
Hi Caj,

i think it would be good trade according to touch trade rules

my observations:

1) EMA 10 angle more than 45 degrees ( 62.97 degrees i measured )

2) also i spot that the touch of 10 EMA as also testing daily R1 line made by the pivot indicator

For all benefit here are the rules from manual pdf again below:


Here are the criteria for strong “touch” trades.
10 EMA “Touch Trades” on M15 Charts:

1. Must be at a “very steep” angle of about 45 degrees, or more. Less of an angle weakens the
trade.
2. NO MORE than two bars to “get there.”
3. Stop loss is NO MORE than 11 pips EVER.
4. Confluence of an H1 MA strengthens the signal.
  • #943
  • Jul 6, 2010 12:48am Jul 6, 2010 12:48am
Quoting caj1986
Another set up on GU this time that's similar to the first EJ trade I posted.

The market comes down very fast but doesn't touch the line on the long red candle, but when the next candle gaps down slightly and opens its right on the line, is it suggested to take these trades with this method, or is it better to only take touches when its "mid-bar"?

Attachment
The Price would have been nowhere near the 10ema on that trade.

If you wanted that trade, then I think the only thing that would have gotten you in would be a 1minute or 5 minute entry. Chances are it probably bounce off the 5minute 10ema. BUT that is not part of the original rule set for THE DANCE.

It's something Kostas may have taken, as he is very profficient with the 5minute charts, but personaly I wouldn't have touched it.

In relation to taking the trade 'mid bar' as you put it. With TOUCH trades, you never know where the end of the bar is. Lower time frames might help you may an educated guess, but that is all it will be ..... a guess.

I just checked, that reversal was a comfluence of the 5minute 10ema AND the MR2 pivot. AGAIN - not part of the rules, but certainly something for the future.

One thing that has really had an impact on me over the last week or so, as I am trading live now, is that chasing trades = losing money. You must must must be able to let trades go past you that are not perfect. There WILL be more............ I promise!


Lee
  • #944
  • Jul 6, 2010 12:50am Jul 6, 2010 12:50am
Quoting willkohsg
Hi Caj,

i think it would be good trade according to touch trade rules

my observations:

1) EMA 10 angle more than 45 degrees ( 62.97 degrees i measured )

2) also i spot that the touch of 10 EMA as also testing daily R1 line made by...
Will,

That trade would NOT have touched that 10ema during that bar. It looks perfect now because the close of the bar massively dragged the angle with it.

I promise you, it would have been nowhere near.

See my above post for an explanation on it.

Lee

ps.... great work on the quote..... it means you got it in your head, which is what you need.
  • #945
  • Jul 6, 2010 12:57am Jul 6, 2010 12:57am
Thanks for the replies everyone, very helpful.

I have seen that Kostas in particular uses the 5min chart to refine his entries, but personally I don't like to trade the 5min chart any more. It was all I traded for my first year of trading but now that I have moved up to the 15m/1h charts I have greatly improved my consistency and confidence in taking trades (with my other strategies, still a n00b with this one), so I feel like I would be taking a backwards step going back to 5min (that's not a criticism though in any way, people should do whatever works well for them).

With regards to your comment about getting greedy with your TP, its definitely something most people have done at one time or another. It might encourage you to know that I know a few very successful traders who take just 5 pips per trade, so never feel bad about taking a small profit if that's what is on offer!
  • #946
  • Jul 6, 2010 12:58am Jul 6, 2010 12:58am
It's worth mentioning here, that looking back through the days charts can make you doubt yourself sometimes.

I am not suggesting by any means that you do not do this as it is a great exersize to do, but the entries are NOT always as obvious as they seem after the move.

The post a few back demonstrates this but the only way to test it and see would mean going into the simulator, and if you are interested, it's something I would suggest you do.

For the new guys out there, and Yes!!! I am still new too. When price is approaching an MA, especially the lower ones on a big move, just watch carefully and you will see how much that MA moves. The platform gives you, in my opinion, a 'If price were to close now' view on where the MA is. (EDIT) Just thought I might explain this a little better. When the bar closes the MA will move more, so its not quite a 'if it were to close now' thing, but I'm just trying to highlight a point and I took it to the extreame.

This means that at the top of a move, the MA angle will be sharp upwards, as you see a two bar retrace, assuming they are long bars, by the time the price reaches the MA, it could very well now be 5 pips away from where it was at the START of the move.

I will end here 8O) but I know there will be more questions about 'when do you trade it then'?. The reason I am ending is because I do not know!

This is the major difference between 'touch traders' (Clay) and 'Touch PA traders' (Kostas).

Clay will trade on the ACTUAL touch of the line, whereas Kostas will wait for PA confirmation, usualy from the 5 or 1 minute charts.

Lee
  • #947
  • Jul 6, 2010 1:01am Jul 6, 2010 1:01am
Daily 35 touch coming up on E/J - lets see what happens?
  • #948
  • Jul 6, 2010 1:04am Jul 6, 2010 1:04am
Quoting Ultimatus
Daily 35 touch coming up on E/J - lets see what happens?
You know when I said 'I got greedy', well, that is exactly where I had placed my TP!

There is a lot of PA to get through first. Look left on the 1 and 4 hour charts for Resistance levels.
  • #949
  • Jul 6, 2010 1:08am Jul 6, 2010 1:08am
Lee I agree, I think we may get there today though, its like a magnet the draws the price! Good shorting opportunity assuming we get confirmation imo.

I am also waiting for G/U to come right back down to the daily pivot so I can go long.
  • #950
  • Jul 6, 2010 1:11am Jul 6, 2010 1:11am
Quoting leemonk
Hi all,

Sorry I have been abscent. My trading is not going well, nor is my learning, so I didn't want to burden anyone with that!

I did take a good trade this morning, which is seems many of you spotted and some of you took.

I have posted my chart below. I only posted one as I closed out the trade whilst creating it.

One thing to note: I was overconfident with the trade and moved my TP WAY out. However, I should have taken profit at the FIRST touch of the RN. But I took it at the second.

The reason I mention this is twofold.

1. I am trading...
Lee,
I am glad you are back! Most important I am glad that you stayed with the system and didn't give up (most people would not have the patience). I am sure you will slowly start doing better.

In terms of the charts you are correct about M5.

Kostas
  • #951
  • Jul 6, 2010 1:12am Jul 6, 2010 1:12am
GU 15 min touch of 10 EMA. valid entry?
I see the RN 1.52000 as a resistance though
Attached Image
  • #952
  • Jul 6, 2010 1:14am Jul 6, 2010 1:14am
Quoting leemonk
One thing that has really had an impact on me over the last week or so, as I am trading live now, is that chasing trades = losing money. You must must must be able to let trades go past you that are not perfect. There WILL be more............ I promise!

Lee
Another good observation that live trading teaches you.....
  • #953
  • Jul 6, 2010 1:17am Jul 6, 2010 1:17am
Quoting caj1986
Thanks for the replies everyone, very helpful.

I have seen that Kostas in particular uses the 5min chart to refine his entries, but personally I don't like to trade the 5min chart any more.
Caj1986,
Good for you. M15 is better suited if you are taking profits according to the Dance, but M5 is better when you enter/exit trades quickly (as I usually do).
  • #954
  • Jul 6, 2010 1:20am Jul 6, 2010 1:20am
Quoting leemonk
This is the major difference between 'touch traders' (Clay) and 'Touch PA traders' (Kostas).
Clay will trade on the ACTUAL touch of the line, whereas Kostas will wait for PA confirmation, usualy from the 5 or 1 minute charts.
Lee
On touch trades my PA confirmation comes from M1, on rest of Dance trades my PA confirmation is from M5 (sometimes only M15 if it is a "classic" situation).

Kostas
  • #955
  • Jul 6, 2010 1:23am Jul 6, 2010 1:23am
Quoting kostas1
On touch trades my PA confirmation comes from M1, on rest of Dance trades my PA confirmation is from M5 (sometimes only M15 if it is a "classic" situation).

Kostas
Didb't know that..... that's interesting.

Mind if I ask what you look for on the 1 minute charts?

(not that I plan on doing it).
  • #956
  • Jul 6, 2010 1:26am Jul 6, 2010 1:26am
M1 charts are very helpful for seeing price action IMO. I look for dojis, hammers, trendline breaks 1,2,3 formations etc. All adds to the confluence before pulling the trigger.
  • #957
  • Jul 6, 2010 1:35am Jul 6, 2010 1:35am
Quoting leemonk
Didb't know that..... that's interesting.

Mind if I ask what you look for on the 1 minute charts?

(not that I plan on doing it).
Usually two strong signs:
1) pin-bar like or engulfing M1 bars
2) head-fake M1 formations (look earlier in the thread).

Kostas
  • #958
  • Jul 6, 2010 1:47am Jul 6, 2010 1:47am
Quoting willkohsg
GU 15 min touch of 10 EMA. valid entry?
I see the RN 1.52000 as a resistance though

took the same, killed it at +3 a little early, next please
Never whishing, always trading.
  • #959
  • Jul 6, 2010 2:48am Jul 6, 2010 2:48am
Did any take the H1 touch on GU?

There I was waiting for it to come down to the daily pivot and some how completely missed that it touch the H1 10 EMA! Doh!
  • #960
  • Jul 6, 2010 2:53am Jul 6, 2010 2:53am
Quoting Ultimatus
Did any take the H1 touch on GU?

There I was waiting for it to come down to the daily pivot and some how completely missed that it touch the H1 10 EMA! Doh!
it did not touch the 10ema

when you see a big green/red bar and the wick almost exactly touching it, you can assume that it did not touch the 10ema
Never whishing, always trading.
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