CHOROS System

u're right ,i'll be careful about the lows. set my target at 0.9535.. should be safe.. or just aim 10 pips..

Edit: USDCHF Short Target changet to 0.9540

LOL... I looked at those charts and thought "What's he talking about?" as the 35/50 were consistent but fairly low angle... then I realized that you were talking about the H1 and I was looking at the M15!

<FX: Smacks himself up the side of the head>

Now I see it!

$-Looney could bust North soon!

Here is my first succesfull "Dance" trade.

EUR/USD M15. Price tested a resistance level so I entered short. Earned 30 pips but if I was more patient I could have earned 50. Anyway I am happy even with those 30 pips since it is my first succesfull Dance trade. Please have a look and I am waiting for opinions on this trade.

how was it a dance trade? plz explain your thinking in entering that.
all the MAs in all TFs are below the price.
up there there wasnt even a RN.
no touch trade, no constrainment, no confluence of any short. to me it looks like a failed breakout from the triangle range it was trapped before.
so NOT a Dance trade, but a good 30 pips nevertheless.

I believe you guys surely caught this trade...first tap of 35/50 at 15MTF and 10 at HTF in two candles.Great showcase of this method's brilliance.



It is still moving up but I exited early to cover the losses from the BS entries I made earlier. It's so simple; just find steep 35/50s and enter at first taps, but I have a terrible urge and impatience that leads to crappy entries, plus I wasn't in a good mood today. A five-year-old would probably trade better than me

I'm def the last guy qualified to give advice here, but just my two cents to the few like me, the perfect entry is worth waiting for; there are so many pairs out there. I wouldn't have made a single loss these two days if I was careful and been strict about my entries.

Target achieved but looks like you didnt take it? in the original post you say you covered for some loss. Anyway. there was already warning enough and there is always next trade!

Look at USCAD. I could have milked that one real good but cursing myself for choosing wrong pair to target today But in morning things are not as clear as evening

Also: Those who are wondering what made me so careful with USDCHF today- look at 1D charts. If you look at last few candles, you would see another dairy there. Likely to shoot up and give you a chance to sell at high

Good work- You are getting it right natnimrey. I dont know how everyone misses this simple fact initially. Even i had struglled a lot before i got it right- No nice trend means no trading. And nice trend is there when parrallel, close togather and steep 35/50 is there. Else just WAIT. Have faith that perfect setup will come to you and you WILL achieve your target. Ignore all the winning posts by experienced guys here and don't curse yourself for missing it. One day even you will be doing it but for starters its best to not rush it. If you have difficulty waiting buy yourself few novels- its cheaper entertainment than taking wrong trades

You are right . Actually, I thought to catch the reversal but this has nothing to do with the dance rules. Just a newbie... but I am trying hard and I will make it

Thanx for the reply!

i have been stabbed too many times in the past trying to catch a move either up or down. i saw no reasoning behind your decision to catch the move, at least in Dance terms so i thought i better tell you so.
those sudden moves are a big temptation, easy pips like you did today, but they wont always favor you. i almost blew an account that way so be careful.

if there was some reasoning though then its all good, if its just impulse... hmmm...
this is why i wrote that post on Elliot waves, mostly not to try to catch them but get an idea of when a move is exhausted.

anyway, i'm learning the Dance too so stick around and we will eventually become better traders.
αντε και καλα pips

I like this idea, but then I like reading. But it does raise a question: since so much of good trading is waiting, what is it that you all do while you are waiting for a set-up? More important, how do you make sure that you do not miss a set up because you are so distracted by whatever else you are doing?

I've got another question about trading times. I'm in Central time, which means London opens at 2 am, and the NY/London overlap is from 7-11 am. My schedule is pretty flexible. But there is no way I could regularly trade the full session, at least not while maintaining anything like a normal life.

If you had to choose between the following times, which would you prefer, and why? 1) Frankfurt open until three hours after London open. Or: 2) About one hour before NY open, until just after London close. Also, for people in the U.S., I'd be interested to hear how you manage your time and trade the dance. (Unfortunately, moving to Europe is not one of my options.)

This will be much like yesterday's post. Stop me when I get too boring. I see 9 possible Dance set-ups from yesterday. I'm interested in which ones people might take, which they would skip, and why.

1) 50 Bounce Trade. Big Winner. This is a model set-up for a bounce trade. Coming into the trade the 35 and 50 were both very steep, and they had barely started to diverge. Price didn't quite make it to the 50, so the entry point could be better defined. Otherwise a great trade that even I would have seen in real time, if I was at the screen. 40+ pip potential, no drawdown. This was clearly the no brainer trade of the day, and made enough pips for most people to shut down.

2) 50 Bounce trade. Winner. This set-up is not as good as the last. It's the second touch, which would invalidate the trade for many, if not most, of the people here. And the 35 and 50 have diverged more, and are about 9 pips apart. My guess is that most people would pass on this trade. I think I would be tempted, largely because of the proximity of the RN and an S/R line I had drawn. This one rocketed down in one bar for 30 pips. 2 pip drawdown

3) Almost 10 EMA Touch. Winner. Here there was a great confluence of the 10 EMA with the Daily Pivot. The 10 is very steep. I set a limit order at the Daily Pivot, which also would have been a touch on the 10. It never got there. Before, I would have jumped on this trade early, and then gotten stopped out. Here, I missed the trade instead. Which is better? Probably missing the trade. With target at the RN and Weekly R1, this was good for 30 pips. No drawdown. (But then again, it was a no trade for me.)

4) Not Strictly Dance, Bounce off M15 100, and H1 50SMA. I've got both these MAs on my screen because I've been trying to figure out some of EOHaters thread, and he uses them. Here there was an almost perfect confluence of these two MAs, and it bounced up again to the RN for a quick
27 pips. No Drawdown. But again, I think this is probably a no trade, and is not strictly a dance trade.

5) 35 Bounce. Probably Break Even. The 35 and 50 are steep and converging. The bounce is right near the daily pivot. It's the first touch. I would think this a pretty decent set-up. If you got in at the 50 or the Daily Pivot, you would almost certainly get a break even on this trade. It didn't quite touch the 35, but if you got in when it was really close, you might eek out 15 pips on this.

6) 35/50 Bounce. 10 EMA Touch. This is a reprise of trade (7) from yesterday's post. Price has blown through the 35 and 50. The 10 EMA is steep. Price comes back for a re-test of the MAs. It crosses the 35, and almost hits the Daily Pivot, the 10, and the 50, which are all exactly on top of each other. This one could have gone for 35, 65, or even 100+ pips, depending on how you exit. No drawdown. As per yesterday's discussion, some people say this is not a trade because there is no trend. I'm not so sure yet, which is why I'm pointing it out. Even if I decided to take it, I probably would have waited for a touch of the 10/Daily Pivot, which again didn't happen, and thus have missed the trade.

7) 10 EMA Touch. This is the other no brainer trade of the day. The MAs are steep, price comes back for the first real touch of the 10 in one bar. The only question for me on this one is whether I would be able to identify the entry point since the snake head on the 10 would have moved so far up as the price came to meet it. Again, lots of pips to be had on this trade. If you waited for the 10 to turn, there were 90+ pips in the trade. No drawdown.

8) 35/50 Bounce. This one came up while I was at lunch, and is an off hours trade, but still worth noticing. It's the first touch of the 35, which is very, very steep. The 50 is less so, and they have just started to diverge. There's a RN and the Daily S1 in the way, and NY is about to close, so I would think that the profit target on this would be fairly small. This one was good for 15-20 pips. Here again, the problem is at the entry. I would have been tempted to wait for the bounce off the 50. It never reached there, and so I would probably either have entered late or not at all. Neither of those are very good options. AND:

9) H4 50 Bounce. I'm just throwing this one in, even though I strongly doubt that I would have the nerve to trade it. The bottom of the steep run last night came exactly at the touch of the H4 50. It's also just 12 pips below the Daily S2 and a RN, (and just 10 pips above a strong S/R line I have on my charts). I don't know how I would trade this sort of thing, but I think its always worth noticing that the Dance works really well on higher time frames. (Right now it looks like we are moving into a ping pong session on the H4 between the 35 and the 50)

Again, I'm very interested in any thoughts or comments.

hey Survivor thanks for asking i took that one USDCHF Short for 17plus pips profit( more than 1 position) , i am still negative for the day yesterday cos i was down -34 plus pips earlier from my 3 trades earlier on EU GU and AU.

I was out of USDCHF at 0.9543( closed it earlier cos price was stalling before it moved lower )

I just switch on the PC and looked at AUDUSD.

Want to cry now cos after i killed off that trade it went down 100 pips and didnt even threaten my stop 0.9975 at all

Closed off that trade cos it wasnt moving anywhere for like 1 hour plus and called it a day before u pointed out that USDCHF and USDCAD constrainments.

Oh well there'll be more next time

No need to stop you at all mate. You're on fire with these!

As for me, had a real shocker yesterday.

 

1. The trade that didn't go on the Euro (back a page or two),
2. and then a failed RN bounce on the pound when it failed to continue on it's original bull run (probably hadn't gone far enough past the RN to take a bounce, but the price action looked OK, started to go my way, then blew through for a loser)

Then the market started going sideways for a while so I stayed out until NY opened, waited until after the US Unemployment news then.

 

1. when the Euro turned and was recovering so went for a bounce off the H1 35 snd M15 35 and 50, which also started to go OK, but I wasn't watching the time (I thought I had a an hour up my sleeve) and got smashed with the next bunch of news and my trade ended up looking like an evening star!

Other than that, very frustrating as a few of the trades you pointed out, I missed the entry on, waiting for it to hit this or that with everything set and the finger poised over the mouse button, and it falling just short and leaving without me!

As I said, quite frustrating and I had to fight that frustration to not allow it to make it even worse than it was.

I can hear the Eagles singing in my head "One of those nights..." but that's better than Barry Gibb singing "It's just emotion that's taking me over...."

Thanks survivor...I'm starting to see constrainments too, but need much more practice. IMO unlike touch trades they are more straightforward(no need to measure two candles etc) and you can take your time to find great entries. No wonder you love them so much

Get yourself another screen/ PC. I have one screen exclusively for metatrader. Every morning i scan all currencies all time frames to see if i like something. I look for constrainments particularly. I also check out which currency might be the best bet for the day- How i do it is by looking at ALL time frames of a currency. When all time frames are shouting same side of trade i get very intrested. When 1D says buy but 4H says sell i remind myself to be extra careful.Once am done scanning, i keep the chart i like open in my spare screen. Thats is never disturbed no matter what i do. Because in dance you can miss great trades in a second.

Next about timing of trading- i think you should yourself try both times for few days and see what you like. It should be a personal choice depending on curriencies you like and type of trades you take. I like constrainments so i have to there just before london open else i might miss trade of the day. For you it might be something else.

EDIT: forgot to add that i have installed an alarm that chimes every hour so that i dont miss those critical 1H and 4H closes. So every hour every chart needs a quick glance. Then back to 15M.

I have done that myself so many times. Closing good positions after bad one!!

And one thing we need to really learn is extreme patient if we can ever be sucessfull with constrainments especially in slow movers. Because of this frustraion to wait for breakout i have started this technique to milk the constrainment itself rather than wait for breakout. But that still needs enormous patient.

Thats why i always suggest beginners to concentrate on constrainments though seems like nobody likes them

Just think for yourself- constrainments are easy to see. have much higher sucess rate. need much smaller sl.. develop slowly so you can do complete analysis and dont have to be fast. Best of all is that even if you miss an entry you will get many more opportunieties to enter.

I really find it funny that beginners will fight real hard to master only touches. Anyway everyone has his own tastes.

I don't think that nobody likes them... more like they don't recognize them when they are there. Same with a lot of things, I guess.

When you are concentrating on something and cannot see what you are looking for, and then someone looks over your shoulder, points and says, "There it is!" and you're left wondering why the hell you couldn't see it before when it is as plain as day!

21st Jan 2011 Trade Report

Hello good day guys.

Its Deja Vu on EURUSD again.

1st Trade of the day- Long EURUSD at 1.34838 and 1.34692

We have a picture-perfect 2 bar retrace to the 10EMA on Hourly.
With clusters of support it seems like history repeat itself on a pre-london trade.
I told myself to add another position at 1.3450 or just below Daily Pivot.

Reasons for Entry

1) 2 Bar Retrace on H1 chart
2) M15 35/50 as support
3) H1 10 EMA as support
4) H4 10 EMA as support
5) H1 35 SMA as support
6) Daily Pivot at 1.3460
7) Final Barrier Rn 1.3450
8) Additional: 200 SMA as support wedged between Daily Pivot and RN 1.3450

Entry and Exit

went Long when price touched H1 10 EMA at 1.34838.
Price proceeded to test said support levels before bounced back off 200 SMA
and H1 35 SMA.

Added another lot at 1.34692. Stops below RN 1.34500 at 1.34350

Exited both positions at RN 1.35000

2nd Trade of the day.
touch on EURUSD M15 10 EMA.
Long at 1.3496 out at 1.3504 + 8 pips

could have gotten more but gotta run off
for other stuff and come back for Londen Open later..

update this trade in more detail later...