Took this long trade couple of hours ago. TP is next R level. See how it turns out to..Had quite a bit of losers last night. How strict are you guys with the 50 Ema confirmation.?
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From what I understand, the 50 ema is not used as confirmation...it is used as a level of support /resistance that must be taken into account with entries. If an entry could be taken but then price runs into the 50ema, then maybe the entry should be taken a few pips beyond the 50 ema.
How strict am I? Depends on the time frame. If it is the 1 hour time frame, then a 50 ema within about 10 pips of the potential entry must be respected. If the entry beyond the 50 ema extends the entry more than 20 pips, I probably won't take the trade.
From what I understand, the 50 ema is not used as confirmation...it is used as a level of support /resistance that must be taken into account with entries. If an entry could be taken but then price runs into the 50ema, then maybe the entry should be taken a few pips beyond the 50 ema.
How strict am I? Depends on the time frame. If it is the 1 hour time frame, then a 50 ema within about 10 pips of the potential entry must be respected. If the entry beyond the 50 ema extends the entry more than 20 pips, I probably won't take the trade.
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Isn't this the same thing as: "If price is below 50 Ema and we have a buy signal, ignore and do not enter"?
Thanks frol
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Joined Nov 2007
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Status: Long time member
|765 Posts
7,
Yes it is almost the same, but that's not the whole story.
Imho it should be, If price is below 50 Ema and we have a buy signal, do not enter before price is 3 pips plus spread above 50EMA.
Hopefully Titch or Colostarr can confirm this.
Persistence will get it. Consistency will keep it.
Yes it is almost the same, but that's not the whole story.
Imho it should be, If price is below 50 Ema and we have a buy signal, do not enter before price is 3 pips plus spread above 50EMA.
Hopefully Titch or Colostarr can confirm this.
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Makes sense now, appreciate the answer Chake. I have been following this thread and system for about a week now. Not in the profit zone so far but decided to let my TP run til I have an opposite signal. Any comments on that?
Makes sense now, appreciate the answer Chake. I have been following this thread and system for about a week now. Not in the profit zone so far but decided to let my TP run til I have an opposite signal. Any comments on that?
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It's really up to you, i didn't check if that's a profitable exit.
Maybe you are giving to much pips away if you exit like that.
In my own trading experience i've found that letting profits run is the only way to make a living out of it.
Colostarr said you should manage your trade once it's in the profit, and manually trail your profit (not your loss!).
And i can say from my own experience that that's the best way to go.
Persistence will get it. Consistency will keep it.
Not sure if this has been answered yet or not, but how far away from the balance line is an acceptable entry point for the closing candle on a 4-hour chart?
Nothing at all going on in here. Lets go guys.I have 2 trade still going. Gbp/usd long up 120 pips with 70 locked in and letting it ride. Aud/usd up 75 pips with 40 locked in. I also had a Usd/cad just get stopped out for 100 pips profit. All of these were on hourly time frame. 210 locked in so far. Nice.
Nothing at all going on in here. Lets go guys.I have 2 trade still going. Gbp/usd long up 120 pips with 70 locked in and letting it ride. Aud/usd up 75 pips with 40 locked in. I also had a Usd/cad just get stopped out for 100 pips profit. All of these were on hourly time frame. 210 locked in so far. Nice.
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Good work Jules! I have been trading the 4hr time frame, but lost 2 weeks of profit this past week. I guess this system is better suited to the 1 hr, however I was using the 4hr so that I didn't have to be tied to my computer all day. How often do you trade, Jules? Do you have any advice for someone who can do this only part time but wants to trade the 1hr time frame? Thanks.
Good work Jules! I have been trading the 4hr time frame, but lost 2 weeks of profit this past week. I guess this system is better suited to the 1 hr, however I was using the 4hr so that I didn't have to be tied to my computer all day. How often do you trade, Jules? Do you have any advice for someone who can do this only part time but wants to trade the 1hr time frame? Thanks.
I am not trading full time. It does help to be in front of computer often though. Reason being, once you get up 20 pips or so you can lock in break even then wait to see if it goes your way to start moving stop loss up till you get a profit going. I am trading small lot sizes till i can get more confident and bump it up a little. Trading is hard but this system has given the best shot I have had in my 5 years trading. Still learning and I have tried a lot of different systems. I like the 1 hour the best no doubt but am looking at other time frames like the 15 min. I watcth the trend lines and enter only if 1 and 4 hour are in same direction. Good luck.
Indeed frollollc, same here, also stopped out.
Two trades up and now two down, that makes me BE for the day.
I think tommorow I should even trade less than today.
Maybe Colostarr or Titch or someone else could give a rough estimate on how many trades do you guys generally take in a day using this system?
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Hi Chake
How many trades I take a day with this system depends on the pa, I won't take every signal as a bl signal might no necessarily constitute an actual trade signal. Other things like the pa s/r and 50ema all have to be in favor as well. You can get a lot of balance line signals that I would ignore because the pa is not good or it is too close to a s/r and so on.
I know that is not really answering the question but sometimes it could be 4 or 6 and other days 1 or 2.
I hope this helps
Nothing at all going on in here. Lets go guys.I have 2 trade still going. Gbp/usd long up 120 pips with 70 locked in and letting it ride. Aud/usd up 75 pips with 40 locked in. I also had a Usd/cad just get stopped out for 100 pips profit. All of these were on hourly time frame. 210 locked in so far. Nice.
Good work Jules! I have been trading the 4hr time frame, but lost 2 weeks of profit this past week. I guess this system is better suited to the 1 hr, however I was using the 4hr so that I didn't have to be tied to my computer all day. How often do you trade, Jules? Do you have any advice for someone who can do this only part time but wants to trade the 1hr time frame? Thanks.
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Hi Wendavol
You can use this on the 4 hr tf and it works well. The only thing is your stop is a lot higher constituting a bigger risk on your equity. I prefer trading the longer time frames but you need to be looking for clear trade signals because of the bigger sl. Look at what pa has been doing as well as what is happening on the daily and weekly and the next s/r. Then if you get a good trade signal it is worth the trade.
Both Colo and I have used this on the 4hr and daily and it has worked well.
I hope this helps
Yes it is almost the same, but that's not the whole story.
Imho it should be, If price is below 50 Ema and we have a buy signal, do not enter before price is 3 pips plus spread above 50EMA.
Hopefully Titch or Colostarr can confirm this.
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Hi Chake, great answer generally we would set the pending order above the 50ema as you have stated, as you are correct pa can hit the 50 and return. If you have placed your pending order above the 50 and it does bounce you don't end up being triggered. Also don't forget other things have to taken in to consideration. I have strict trading rules that I stick to and will not accept just 1 signal ie the balance line. I want to see the right pa and also see the right distance from the s/r lines, as well as what is happening on the higher time frames and also what pa has been doing for the last few days. If I can then tick all the rules on my trade plan I will enter.
You can use this on the 4 hr tf and it works well. The only thing is your stop is a lot higher constituting a bigger risk on your equity. I prefer trading the longer time frames but you need to be looking for clear trade signals because of the bigger sl. Look at what pa has been doing as well as what is happening on the daily and weekly and the next s/r. Then if you get a good trade signal it is worth the trade.
Both Colo and I have used this on the 4hr and daily and it has worked well.
I hope this helps
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Titch,
Thanks for answering. Could you help me find where I can get some education on trend lines, price action, etc. I need the extra tools to be able to do the job correctly. I have just been "eyeballing" the chart to see if a trade set up looked good (i.e. had a good angle to the balance line, price was not hanging on balance line, etc). I am not looking for someone to hold my hand, but I would appreciate if you could tell me where I can learn what you use with this balance line method. Thanks again!
Wendavol
This is my results for week ending 24-07-2011. Please refer below. I had mixed results. Out of 11 trades 3 hit S/L 8 went to BE + few pips. At this stage i am happy with the result even though i didn't made any big pips, as my loosing trade are only 3 out of 11. I had few BE's, all my BE went to make 100+ pips sadly i missed it.
Buy GBP/CHF = -60
Sell GBP/CHF = BE +5
Sell EUR/AUD = -28
Sell USD/CHF = BE+5
Sell EUR/JPY = -63
Buy GBP/CAD = BE +40
Buy Aud/USD = BE +7
Buy AUD/JPY = BE +10
Sell GBP/AUD = BE +2
BUY NZD/USD = BE +20
Buy GBP/CAD = BE +20
Total = -42 pips.
I attached my charts for the 3 loosing trades...Any comments will help me for next week pips.
This is my results for week ending 24-07-2011. Please refer below. I had mixed results. Out of 11 trades 3 hit S/L 8 went to BE + few pips. At this stage i am happy with the result even though i didn't made any big pips, as my loosing trade are only 3 out of 11. I had few BE's, all my BE went to make 100+ pips sadly i missed it.
Buy GBP/CHF = -60
Sell GBP/CHF = BE +5
Sell EUR/AUD = -28
Sell USD/CHF = BE+5
Sell EUR/JPY = -63
Buy GBP/CAD = BE +40
Buy Aud/USD = BE +7
Buy AUD/JPY = BE +10
Sell GBP/AUD = BE +2
BUY NZD/USD...
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Hi netwatchpips
I have marked up your charts as to the way I trade which may make things a bit clearer, you need to be adding S/R lines to your charts as these are one of your most valuable tools as a trader. Although the balance line gives entry signals you need to be looking at other things as well such as S/R levels. A balance line signal may not necessarily constitute a perfect trade signal. Hence why you need to be looking at other things as well.
Titch,
Thanks for answering. Could you help me find where I can get some education on trend lines, price action, etc. I need the extra tools to be able to do the job correctly. I have just been "eyeballing" the chart to see if a trade set up looked good (i.e. had a good angle to the balance line, price was not hanging on balance line, etc). I am not looking for someone to hold my hand, but I would appreciate if you could tell me where I can learn what you use with this balance line method. Thanks again!
Wendavol
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Hi Wendavol
I will PM you in the next few days with some suggestions.
You can use this on the 4 hr tf and it works well. The only thing is your stop is a lot higher constituting a bigger risk on your equity. I prefer trading the longer time frames but you need to be looking for clear trade signals because of the bigger sl. Look at what pa has been doing as well as what is happening on the daily and weekly and the next s/r. Then if you get a good trade signal it is worth the trade.
Both Colo and I have used this on the 4hr and daily and it has worked well.
I hope this helps
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Several pages back you were successfully scalping the 15M TF. Have you stopped trading that way and trade only longer TFs now? Thanks, p.
