CHOROS System

Let's say that the M15 MAs gives you a long bounce signal but a little higher (20-30pips) there is an H4 confluence for short signal. In these cases, I either take a quick scalp for 6-10p or don't take a trade at all. Higher TFs are stronger and they should not be ignored. In the EU trade mentioned earlier there was no M5 signal for long at the M15 35/50 area, but even if there was one I would only ride it for 10p max.

something to read over the weekend..

Page 129, the Disciplined Trader by Mark Douglas

If our hypothetical trader wants to develop into an effective and
consistently successful trader, he will need to engage in some selfimprovement.

He will need to understand that the market is always right and
that he can profit from that tightness if he doesn't impose a rigid mental structure on its behavior. He needs to release himself from his fear of being wrong so that he can observe the market's behavior from an objective perspective.

Otherwise,his fear of being wrong will have the effect of making him wrong. He will also need to establish some definite trading rules to guide his own behavior and learn how to adhere to those rules.

If he had been operating out of a definite set of trading rules he would have never let the loss accumulate sufficiently that his pain would take him out of the trade.

If, however, he refuses to acknowledge and accept his current state of development by blaming the market for his losses or trying to convince himself that somehow he wasn't responsible for what he ended up with, then he would be indulging himself in illusion. He would be denying who he is and, in effect, cutting himself off from the information he needs to become who he wants to be.

Hi wilk. Sorry I had missed that one. Just to avoid any confusion, i am an absolute newbie with the system, though i have been doing fine with it especially constrainments. However a winning steak is not same as experience. Anything i post here just shows my stage of learning like any other newbies. In no case anyone should give my comments same weight as masters here like Kostas. Like Clay, my biggest fear is giving wrong advice and making someone lose money.

And a BIG thank you for the disciplined trader ebook. I have just finished half of Trading in the zone. seems to be a necessary compliment to a consistent system like dance. Anyone still struggling even after learning this system ought to take a look at this book instead of looking for another "perfect" system.

Hey Survivor, you're welcome.
I had a discussion with a friend today over trading higher timeframe versus lower timeframe and his view was that lower timeframes have too much noise and the PA candles are not so reliable.

This is totally not Dance related just throwing some thoughts to you guys and asking for an opinion here so I can hear your views and listen to both sides and see if i might have missed out anything

I tried to explain my edge with Dance method but he sounds rather convincing with his views that lower timeframe has too much "noise" and PA candles are not so reliable.

My view on my side was that given the same risk management.

1) 1% risk on 15 pips ( Dance )
versus

2) 1% risk on 50 pips( Higher timeframe trades)

the lower timeframe is more "efficient" cos basically we're both looking at using our edge and I can spend less time to get the same results...

so instead of learning how to trade H1 and H4 or Dailies why not just stick to scalping?

I know it's not for everyone but then looking at

1)time spent to spot the setup and enter and watching the trade
2)time spent to get a results( win/loss) from the trade ( from spotting setup to entry to exit)

i feel scalping saves me more time to do other stuff
but of course you can also argue that Risk:Reward for Higher Timeframe
can be 1:2, 1:3, 1:4 which is way way better than Dance R:R ratio
which is -19pips(SL):15 pips (TP) right now for me.

guys if you are free appreciate if you can share ur views on this, thanks a lot

willkohsg

I believe that past a certain minimal point, forex markets are fractal. By this, I mean that there does not appear to be any meaningful difference between what works on one time frame and what works in other time frames. I have never seen a book that qualified an indicator, or a tool like Fibs or trendlines, by saying that they only work in certain time frames. Even wave theory asserts that there are sub waves within the legs of its greater waves. Thus, it seems to me that the smaller view is substantially similar to larger views.

If people really believe that smaller time frames contain too much "noise", there is an easy way to test this idea. Simply show a bunch of unmarked charts to these people and see if they can distinguish those that came from a noisy time frame as opposed to those which contained more signal. Let them use all the tools they want, so long as they don't know what the underlying data points are. It would be interesting to see if anyone could pass such a test

There are a few main differences between time frames: first, there is the impact of the spread and commission. This factor weighs fairly heavily in favor of longer time frames. Second, there is the size of the stop. This one goes in favor of shorter time frames. Then there is the amount of screen time one needs to devote. This one goes in favor of long time frames. Then there is the psychological burden of having a trade open, vs. the psychological strain of hovering over the mouse waiting to close a scalp. This one, I think, depends on the make-up of the individual. Finally, there is the swap. There are certain long term trades that suffer from having to pay interest (Australian trades right now).

Right now, I'm leaning towards shorter time frames. Why? Because I'm learning. Learning comes from experience. Experience derives from the number of good trades you make, and there is simply more opportunity to get good trades faster on a short time frame. This speeds up the learning process. That advantage, for me at least, outweighs the extra costs that might be involved in trading shorter time frames.

Here's the m15 chart for cable today,
price just tested those Higher TF MAs and come back down.. looks like Cable's short term bias is down but we have London Open and GBP PPI input in 2.5 hours time so anything can happen.

just vote with ur edge and observe the outcome of the market.

Update#1: price rejected 1.5790ish area strongly,
but there's weekly pivot and H4 35SMA and Daily 10 EMA around 1.5770ish area. going to be a "ping pong" area for the those with fast hands..
going to wait till GBP PPI input for a clearer direction..

Update #2:

Confluence of
Weekly Pivot
H4 SMA
D1 10 EMA
RN 1.5750

all looking good for a bounce up once price test the 1.5760-1.5750 area for a Quick Bounce up..
shall wait..

took this long off RN 1.5750 for a quick bounce +11
target 1.5761

waiting for pullback now to go short..

*yawn* slow grind..

Note: looks like i missed an "almost touch" at 1.5749 near RN 1.5750.

quick post.
touch trade off m15 10 ema.
entry 1.5737
target 1.5722
stopped out at -20

hey there will...how do you see the price going?Just tested 10EMA but seems to have problem crossing 1.5750...

there's a rally on Eurusd that's pulling all usd pairs up.
huge bullish engulfing candle on cable just before the current one.
dont enter yet cos price will test all MAs first before going down or finding its direction..

Got it damn eur is gettin whooped by usd...

saw a nice signal here...didn't take it tho...

just like you said will...price crossed all emas and jumped off the building. Awesome

did u take that natnimrey?

with virtual money yes...I'm still demo trading

interesting.
the drop must have something to do with this too..
that's UK QE fyi
so another round of QE from the UK will devalue GBP

http://www.forexlive.com/153253/all/...growth-slowing

cool..thanks for the link man, awesome site. Bookmarked

now cable is down at session lows again.
gotta wait for NY session to begin..

either a touch trade or pullback..

My daily 33pips came just from this one trade. It was perfect bounce to the pip. I am glad you guys didn't miss it.