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CHOROS System

  • #4,961
  • May 11, 2011 8:31am May 11, 2011 8:31am
OK this morning, the EU started back towards the 10 EMA on the M15. The problem was that by the time the price touched the 10 EMA it was on its third white bar in the retrace. In the end it didn't close as a white bar. If I had made the trade, it would have been 50 pips. But I was very skeptical at the time.

Was I right to avoid this one?
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  • #4,962
  • May 11, 2011 9:16am May 11, 2011 9:16am
Quoting cmeade2
OK this morning, the EU started back towards the 10 EMA on the M15. The problem was that by the time the price touched the 10 EMA it was on its third white bar in the retrace. In the end it didn't close as a white bar. If I had made the trade, it would have been 50 pips. But I was very skeptical at the time.

Was I right to avoid this one?
You were right using the 2bar rule.
On the other hand, I was using the M5 and I got short because of a strong M5 rejection which happened exactly on the M15 200SMA. At that point it looked like a certain second M15 10 rejection so I stayed for 32p.
  • #4,963
  • May 11, 2011 9:21am May 11, 2011 9:21am
OK, now I'm really mad because I was also watching the M5. By "strong rejection" do you mean that it backed off from the 35 SMA (thick orange line) at ~ 1.4358?

Quoting kostas1
You were right using the 2bar rule.
On the other hand, I was using the M5 and I got short because of a strong M5 rejection which happened exactly on the M15 200SMA. At that point it looked like a certain second M15 10 rejection so I stayed for 32p.
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  • #4,964
  • May 11, 2011 9:24am May 11, 2011 9:24am
What was your entry price BTW?

Quoting kostas1
You were right using the 2bar rule.
On the other hand, I was using the M5 and I got short because of a strong M5 rejection which happened exactly on the M15 200SMA. At that point it looked like a certain second M15 10 rejection so I stayed for 32p.
  • #4,965
  • May 11, 2011 9:29am May 11, 2011 9:29am
Quoting cmeade2
What was your entry price BTW?
1.4345
  • #4,966
  • May 11, 2011 9:35am May 11, 2011 9:35am
Thanks that's very helpful. So you basically sold at the open of the bar M5 bar at 16:10 after the previous bar (with the long wick) failed to cross the 35 SMA. Right?

Quoting kostas1
1.4345
  • #4,967
  • May 11, 2011 10:06am May 11, 2011 10:06am
Quoting cmeade2
Thanks that's very helpful. So you basically sold at the open of the bar M5 bar at 16:10 after the previous bar (with the long wick) failed to cross the 35 SMA. Right?
The 16:05 bar bounced on the M15 200SMA with the accuracy of 0.8 pips!
  • #4,968
  • May 11, 2011 10:17am May 11, 2011 10:17am
Ahhh! the 200 SMA. I have the 200 EMA on the M15 as a proxy for the 50 EMA on the hourly, but not the SMA.

Is that mentioned in the manual?

Quoting kostas1
The 16:05 bar bounced on the M15 200SMA with the accuracy of 0.8 pips!
  • #4,969
  • May 11, 2011 10:34am May 11, 2011 10:34am
Quoting cmeade2
Ahhh! the 200 SMA. I have the 200 EMA on the M15 as a proxy for the 50 EMA on the hourly, but not the SMA.

Is that mentioned in the manual?
Not in the manual. As I have mentioned before, it is something that I am using as an additional bouncing area. I only have SMA for the 200.
  • #4,970
  • May 11, 2011 10:34am May 11, 2011 10:34am
OK I see that you mention it here on your setup

http://www.forexfactory.com/showpost...postcount=1943

Quoting cmeade2
Ahhh! the 200 SMA. I have the 200 EMA on the M15 as a proxy for the 50 EMA on the hourly, but not the SMA.

Is that mentioned in the manual?
  • #4,971
  • May 11, 2011 10:55am May 11, 2011 10:55am
I took a similar trade (a little more risky) some bars before, sold@ 1.4370 . I had a fear of H1/35 but it was ok for 20 pips..... I was entry when the price
cross the H1 /35 also m5 chart confirms. I think it is
a choros trade.
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  • #4,972
  • May 11, 2011 1:19pm May 11, 2011 1:19pm
Quoting makonen
I took a similar trade (a little more risky) some bars before, sold@ 1.4370 . I had a fear of H1/35 but it was ok for 20 pips..... I was entry when the price
cross the H1 /35 also m5 chart confirms. I think it is
a choros trade.
This was actually the correct by-the-rules 2bar retrace trade to the EMA10
  • #4,973
  • May 11, 2011 2:37pm May 11, 2011 2:37pm
Today there have been 4 touches of the EMA 10 on the M15 for the EU. The first three have been very profitable. Who knows about the last. All are marked with red arrows below.

My question is whether the "first touch" rule would have eliminated all of these except the first.
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  • #4,974
  • May 11, 2011 4:43pm May 11, 2011 4:43pm
Quoting cmeade2
Today there have been 4 touches of the EMA 10 on the M15 for the EU. The first three have been very profitable. Who knows about the last. All are marked with red arrows below.

My question is whether the "first touch" rule would have eliminated all of these except the first.
Yes, if you adhered to the first touch rule, then only the first trade would follow that rule. Also, note that the second and third touches here also violate the two bar rule.

If I recall correctly, Iero takes these trades using a different standard. As long as the 35 and 50 are both steep and parallel, and I think he has said less than four pips apart, he will take any touch on the 10. By his criteria, I think that means he would take the first three trades you have marked, but not the fourth since the 35 and 50 are already diverging and about 9 pips apart. I haven't used Iero's approach, but it would certainly have worked yesterday.

Sometimes it seems like following a rule sucks. Even so, I still think its better to maintain discipline. I have nothing against someone adopting Iero's rule and following it. The danger comes when people start shifting the rules they are willing to follow simply because they want to get into trades. I tend to fall into that trap fairly easily.
  • #4,975
  • Edited 5:49pm May 11, 2011 5:36pm | Edited 5:49pm
Quoting cmeade2
Today there have been 4 touches of the EMA 10 on the M15 for the EU. The first three have been very profitable. Who knows about the last. All are marked with red arrows below.

My question is whether the "first touch" rule would have eliminated all of these except the first.
I would like to add that the second touch wasn't there at the time of the trade, it was near but not a touch. Have a look at Makonen's post above you can see it forming and it is some pips away from EMA 10.

It is mentioned previously in the thread that after a violent move we could take the touch even if it takes more the two bars to touch EMA 10, I personaly take those trades, but this is a personal approach and not by the book trade.
  • #4,976
  • Edited May 12, 2011 12:58am May 11, 2011 11:49pm | Edited May 12, 2011 12:58am
Because it would go against Survivor's advice and he has a PHD in constraint trades, I wouldn't trade this as there are HTF MAs north, but this is currently constrained below by the M15 10 and 50 (which is turning up), so there is "Northward pressure". It is also a bullish triangle formation.

But above, it is constrained by the H4 10 and a D1 level I added at some time (yellow line) has the H1 50 and 35 just above that.... But H4 and H4 charts look flat if anything.

My guess is that it will break the HTF MAs go north!

Wait and see.....

Would anyone trade this?

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And i couldn't guess more wrong!
  • #4,977
  • May 12, 2011 2:22am May 12, 2011 2:22am
Quoting duffypratt
Yes, if you adhered to the first touch rule, then only the first trade would follow that rule. Also, note that the second and third touches here also violate the two bar rule.
if i remember from the Dance thread, Clay was saying "up to 2 bars" were OK to take.
here in the Choros thread later on we had discussions if the subsequent touches had the same weight after the first touch has happened.
  • #4,978
  • May 12, 2011 5:13am May 12, 2011 5:13am
Hi,

Could anyone share a round number indicator for 4 digit MT4 platform?

Thanks in advance!
Payles
  • #4,979
  • May 12, 2011 9:15am May 12, 2011 9:15am
Quoting Payles
Hi,

Could anyone share a round number indicator for 4 digit MT4 platform?

Thanks in advance!
Payles
This is all my stuff I use. Unzip it and copy all the folders from the "Big tent setup" folder to your metatrader folder and switch to the BT Dance profile. This will load all the indicators scripts etc, as I have them set up.

Change it to suit your tastes.

If you use the trading scripts or trailing EA, make sure you test them on demo first!

If the charts sit on "Waiting for update" or something similar, it is because I am using minis - so EURUSD shows as EURUSDm etc.

To fix that, just open the "Market Watch", click on the "Symbols" tab, and drag the right pairs onto the charts, then it is all go.

Attached File(s)
File Type: zip Big tent setup.zip   109 KB | 507 downloads
  • #4,980
  • May 13, 2011 3:36am May 13, 2011 3:36am
Just to get the discussion going here:

I spotted this 2-bar retrace on EU today. Details on the graph.
Gave an easy +69 (reminds me of something kinky but I can't remember what....)

EDIT: With this strong action I may take a second M15 10 touch, otherwise the 35/50 is next for me.
Attached Image (click to enlarge)
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