CICR system (Currency index cross referencing)

man,,GU has already broken the consolidation by over 150 pips..

USD index breaking 4H resistance

nice,,i woke up for a pee and see the fat cat getting fatter..

I know but capito said the gbp index needs to break out for a fall. Does that mean GU will be too late to enter?

it's a relative strenght system, even GBP index was stuck in CZ for for a while, but the US index was going up pretty good, so GU should be in short position for sometimes. look at GU D1 candle, this could go on for few more days....

ok, so I see a nice bearish daily candle and the MACD just starting to cross. The 4 hour looks good too.

What has me worried is the 1 hour has already flew down.

If the GBP index breaks down then the GU will fall as well, but how can we enter on the GU now. That is my question. I am tempted to do amarket order, but I know that is not right? Do we do a 50% fib pullback on the move for entry?

I know capito mentioned the Aussie index being belowe 200 ema on the 1 hour for signaling a potential downside a while back, now price is below the 200 ema on 4hr chart. Does this provide any significance?

I had 13 trades in this two weeks, all with the long term strategy. First week with the USD basket, and now with the AUD. 11 winner and 2 very small losses. Now I waiting for the GBP retrace....

Thanks

Get the heck out while you can )))

Dollar strenght is a TEMP joke. It might go up 1-2 days and then

will drop back even harder.. Funny as it sounds, but

I'm looking to enter EU LONG.. EJ long looking tempting as well.

Good luck.

Halo,

Capito, Lee, McNish - thank you guys for kind words.

At this moment I have nothing to add to all the info on this tread. Not that I don’t want to, but all is well explained and only problem we are facing right now is our own impatience. I could add more toys to my chart, but what for ? Old good S/R lines and some basic PriceAction are way to go (IMHO at least ).

Oh well – since this MTF issue is somehow not leaving my mind, in spare time I’ll try to solve this problem. I also have some idea about displaying addition info using >MTF RSi mod< I’ve posted, but will see…

Besides that little problem all I need is time spend in front of my computer. I must unconsciously be aware of all the elements of this system/method to flawlessly execute trades. Big issue for me are the SL and TP. Since I can trade only on D1 charts SL must be ca. 200pips depending on cross I decide to trade. About TP – this is work in progress J
I took some trades last few days. They are still open and profit right now is ca. 900pip. At some point drowdown from all open positions was ca. 500pip. Of course this is just demo trading so no emotions are involved
Right now I have no clue what Risk/Reward will be.

Some ideas about SL and TP placement :

-S/R levels treated as areas/zones (still learning this one). Not so simple as it seems. Instead of one element (cross we are trading) we have 3 – cross and 2 indexes.
-Variation of Market Profile; see attached picture with marked S/R and profile zones; >SR 1-2< came from price action, >profile< from MP
-Taking into consideration range of current weekly/monthly bar and compare it with last 10 bars. If it already pass the average of that 10 bars what will I do at this moment (?) > close position or hold it and pray for more pips…

So as you see still learning, but I know time spend on this baby will not be wasted


Regards
nht

Hello Hale, just focus on individual indexes and keep it as simple as possible. generally i have noticed that currencies always tend to move in the same direction after the big push they get in the first weeks.

Its more important for you to look for divergence on macd 1 on 4 hr only to get alerted, ofcourse thats not an entry unless ofcourse the di,w1,mn comes together.
just widen you approach and dont get too many technical indicators.
For example, look at the gbp index, its in a uptrend no doubt but now when i go into the mn chart the rsi3 is overbrought on the monthly so thats quite a move.
Draw S/R lines. I keep updating some trade calls on the blog so i will give a explanation with image on the blog

When something is rising... you should already have predicted that trade, when others think its a buy ... you should be closing positions and waiting to sell

Dude, I think one more post and you'll get rid of the Junior tag.

To address your query, I'll give you an input. See what you make of it since I know you are no junior by any standard. Read this post - http://www.forexfactory.com/showthread.php?t=291622 The system mentioned here is second to none. Then you try to merge the basket trading system mentioned on this thread with the above mentioned system (TMS - Trading Made Simple by Big E). Read the first 50 posts of that thread without asking questions. Do it once. After you finish the first reading of the first 50 posts, read those first 50 posts once again and this time, make note of it. When you do this exercise (read once, take notes second time), you'll have all your questions answered without ever asking them. And the answers will not just be for that system but for most of the trading concepts. Go ahead and do your self this big favor and this will earn you your wheel barrow, gold plated, to carry your pips to the bank.

Happy pipping and keep posting, Regards.
McNish.

Edit : Tried to send this as a PM to you but could not. Thus, get rid of the Junior tag fast.

Captain, Guys,

We have 100 votes and a clear winner. Cheers too all !

Will it rain again today ???

Thanks Capito,

That cleared alot of stuff up for me. ONe more question are the lines on the GBP inex chart on your blog S/R levels that seemed obvious to you when you glance at the daily chart?

Expect continuing showers on AUD considering the thunderstorm we had yesterday.

Expect more thunder soon,,,

This is Capito
Pip News (India)

we understand most of you are working full time and find it difficult to trade often and miss valuable trades.
We do this over and over and over and over.

Hence to help you guys and help ourselves in our cause, we are starting a fxsignal service.
Ofcourse our small champion trading group of 4 traders which will soon be growing will be trading on our master accounts and it will be copied in the slave accounts.

The whole game is to open small accounts and then grow it bigger sensibly and steadily.

Sign up to the newsletter to get information directly into your inbox.

"Somebody asked me why are you sharing your knowledge.. I replied it makes me more knowledgeable"

Thanks.

All currencies in extreme zones, or consolidating , stay out and watch...

thanks

Does this mean for those in the AUD trades need to get out ASAP?

Dont take fresh entries now...

if you are holding profitable entries then its fine.