CHOROS System

Got OWNED by couple of pips... I was going to let this one run for 80+ pips too... would have been a very nice day... funny thing about this trade was that I knew it was going to have draw down before it went into profit... I had a very stong feeling but I stuck to the rules and that's important...

Here's an example of how the difference in chart scale can make a world of difference in the appearance of the price moves. I have my H1 charts set to a fixed scale of 200 pips top to bottom. On my chart, that doesn't look very close to a touch of the H1 10. It's 5 pips off as the bar closed, and was still 3-4 pips off if you extrapolated the MA down.

Also, I can see how it looks like a constrainment on your charts, but it doesn't look like that at all on mine. (By the way, I'm not saying that my chart is better. Here, it clearly would have kept me out of what turned out to be a good trade. Instead, my point is simply how different the same data can look.)

Another thing troubles me about the H1 charts. Three bars after your entry there appears to be a clear touch of the 10. In real time, it didn't look that way at all, and there was no touch at all on the equivalent that I use on the M15. I set three limit orders in this area last night, and price trailed away each time before I got filled. Clearly you are jumping in at a better time, while I'm standing on the dock waving.

I agree with duffypratt. I have 10 pip scale set on all of my charts and it looks exactly like duffypratt on H1... really helps with fake outs..

We came into the day with the H1 in a strong downtrend. The H4 was just about to cross the confluence of its 35 and 50. Daily was in an uptrend. Thus, the signals were mixed. It was reasonable to think that there might be a nice bounce off the H4 MAs. That didn't happen (there was an 8 pip bounce off this confluence.

1) 10 Touch or Constrainment. Price had just crossed through the 35 and 50 . This is the first touch of the 10. It's not perfect because the MA could be steeper, and there's no good confluence, but its definitely by the rules. Then, after this bar, there are three more that hug the 10. The 35 is flat at that point, but the 50 is definitely steep and there isn't much in the way of a decent game. I think either trade is good.

2) 10 Touch. MA is steep. One bar retrace. Confluence with the H4 35 and 50, and with Wednesday's low. This one would depend on trade management. With Clay's nine pip stop, its probably a loser. With a wider stop, it might break even, or you might hold on for some pips. There have already been quite a few touches of the 10, so that might be reason to duck this trade. I think I would have taken it, mostly because the touches before also look like constrainments, and I don't think a constrainment touch counts as heavily as a pure one bar touch and bounce. (Again, I would love to hear if others have an opinion about this.)

3) H1 10 Touch (almost). Twice in 5 bars, there were near touches of the H1 10. I had limit orders on here, and missed getting in each time. Last summer, the common wisdom was that the GU tended to test all the MAs before making its bounce. Now it seems like it's hardly even getting to the first MA (and this is another observation that I would like to hear other's opinions on). I was waiting for a touch of the 35, and was prepared to get in with a market order if there was a pullback from an actual touch on the H1 10. Iero4 got in on this trade. It makes me wonder whether I've been letting the perfect get in the way of the good. I'm really trying to wait for A+++ setups, but the waiting is getting very long now.

4) 10 Touch. By now, there have been a bunch of 10 Touch trades, so this one is probably no trade. On top of that, it takes 5 bars to get to the touch. It either breaks even, or you might get a 10 pip scalp out of it.

5) 35/50 Bounce. MAs are steep and parallel, though just starting to diverge. There's confluence with the Round Number, and thats probably a decent reason for waiting for it, or for the 50 before entering. If you were inclined to take it off the 35, you should at least wait for confirmation on the M5. From the 35 its a loser, from the 50, probably break even.

6) H4 50 Bounce. This comes late in the day, an hour after London close. My 50 line on this chart is not quite accurate, and price actually pierced it by one pip. If you went to the M5 to fine tune this entry, you would find a great three bar pattern to use as an entry. I think this one is a great trade.

Here's an eu 1h35 bounce. I closed at 1.4155 because the 5 minute bar closed below the 5m 10ema. Wasn't exactly what I had envisioned, but I'm happy with 8.

http://i51.tinypic.com/n6liw.png

Pleasure to be able to make this post as it is probably my first "good day" in a couple of weeks of shockers.... I've been like a man with no legs on the dance floor and could have been kicked out for arsing around.

First trade was a constraint on the EU..... 15 pips first position, trailed second for 15.1.



Second was a 10 touch on AU. Only needed 15 pips for my daily target, so when price struggled around 15 pips total (7 to 8 pip mark) I pulled the plug.



All up 44.4 pips, close enough to 45 which is my 3% daily target.

Very nice to get this done so early as my beloved Rabbitohs were playing Whatsamatta Parramatta live on the TV, and they won 32-18, so ain't life grand!

took a 10 touch on the gbp/usd m15.. stopped out

I think is good trade touch ema's 50 and 35

i took this too.. =)

after i was stopped out it seems to go in the right direction

I am far from being an expert with this method, but I think you should only look for trades off the 10 if it is pointing in a 1 or 5 o'clock position. Where you took that trade the 10 was showing a lot of chop.

Also notice where it reversed was at the 21 ema. I know the 21 is not part of this method, but I have found it adds another important area to look at.

Another thing is when the 15M MAs are choppy looking to the 1H TF also helps. The two areas labled A and B were touches off the 21 from the 1H TF.

To the owners of this thread: if using the 21 causes too much confusion or distracts from this method I won't mention it anymore. So if it does my appologies in advance.

Hello!

Are really looking into this method and have a question regarding constrainments trades. Do we always want both the 35 and 50 mas constrained? eg is the attached trade ok or not according to the original rules?

I don't think that is by definition a constrainment trade. But it is an excelent example of using PA in conjunction with the MAs. As you can see you had a pin bar that went into the 50. If you had entered at COB, depending on how you managed the trade, you could have made 10 to 30 pips.

Here is one that just finished worth about 70 or so pips. This was a touch off the 35.

Most experienced dancers will be careful with that trade you took. We like to take "first touches" HEre just before your trade price has already touches 10 EMA multiple time. In such cases it is safer to wait for a touch of 35/50. Else one gets a nice PA at 10 EMA one may go for it. Say a nice rejection pin bar at 10 EMA would make me take that one. Without PA i would not take multiple touches of 10.

Thanks, No didn't catch this one. Too late on a friday I'm not trading now.
Back next week. Will make an effort to post my trades as of next week here.

This trade was not a constrainment. The candles are too large in my opinion. Good constrainments have small candles. But i would have taken this trade as rejection at 35/50. Though thats not part of original dance. Dance means taking touch trades not after confirmation.


No need of both 35/50 constrained. One ma is enough to constrain price. But all mas should be going same direction in my experience. One doesnt get good results when one ma is going up and going down. Here was a constrainment trade live today. Notice very small candles and how all mas pointing north? And see what potential good constrainments have. Its already good for +100 as yet.

I suggest check this post about constrainments http://www.forexfactory.com/showthre...39#post4391839

hope that helps

I have been experimenting with stuff and it looks good to me. i dont get on very well with touch trades and would rather wait for PA confirmation.

Thanks.

I'm really not grasping containment trades yet. Have printed a bunch of charts on paper and spread them on the floor and now i'm just going through them trying to find how it works.

Ok, exactly at what COB would you have jumped in and with what SL.

Close of that long pin bar at middle. Ideal SL was above the high of that bar. But that was too much for me so i just kept it above high of the candle on left.

This is one the tricks i have learnt elsewhere and they are not part of dance so you can ignore them because they have immense potential to confuse people. IMHO if you are starting out you would do well to stick to rules as per manual.