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"Katana Trading Strategy"

  • #121
  • Dec 20, 2011 2:37pm Dec 20, 2011 2:37pm
Today was even better on Cable, again with 20pip range bars, and 21EMA and 100EMA.
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The dream will never die
  • #122
  • Dec 20, 2011 3:43pm Dec 20, 2011 3:43pm
Price stopped at a 50% retracement of recent move. This is a good sign of a trend.
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  • #123
  • Dec 20, 2011 3:54pm Dec 20, 2011 3:54pm
Quoting dan89
From that chart it looks like your indi's did singnal a continuation. Im asuming the top 3 indi's when they indicate red = short ? Or is the arrow on the chart pointing to the wrong one ?
Sorry dan,

If you look at the chart, you can see the bars which are printing blue, those are the bars used to indicate the pull back against the direction of the move. In an up move they will print brown and in a down move they're printing blue. The bottom histogram indicates the trend continuation, when it prints red that means short and when it prints green it means longs. Providing all other trade conditions are met.

Is that a good enough explanation.

Moving averages pointing in one direction, stochastic filter for trend, stochastic filter for pull backs, stochastic filter for continuation.
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  • #124
  • Dec 20, 2011 4:16pm Dec 20, 2011 4:16pm
Quoting Vantage
And no surprises that my personal pref for ma's 8 and 96 lwma's on 5 min also signalled easy buy trades on both eur and gu.

Just showing that the ma's being the same as another trader is not necessary (as much as we may want to copy).

Get the trend get the retracement away you go.
You are totally correct Vantage, as long as you have something to define the direction of the trade, it really matters little which way you do decide to define trend, since all indicators use price data to determine such things, they are all basically giving you the same information with slight differences.

Defining a pull back or retracement is what is needed, using price levels, fibonacci ratios, previous levels of intraday support or resistance, and previous day lows or highs is a good way to identify potential areas on the chart where price will stop, and then do something else.

It's these areas that we need to concentrate efforts on. For example looking at the price action on EU there's a level it stopped at which is 50% of the move up. There's a previous intraday support level, also high of the day from the 16th Dec.

Does it mean price will continue to the upside from here, quite possibly. Guess we'll soon see.

1.3050 is a good region to see how price reacts. No doubt about it.
  • #125
  • Dec 20, 2011 4:25pm Dec 20, 2011 4:25pm
GU chart, some levels where price reacted.

xx25 and the xx50 levels.

Momentum of price is to the upside at this point.

When market trends that when you make money.
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  • #126
  • Dec 20, 2011 5:16pm Dec 20, 2011 5:16pm
Hello Musashi,

Although my trading style is a bit different from your Katana Strategy, I have found a lot of elements that I agree with and thought I should just drop by to say hello. This is no doubt a 5 start thread and I have voted accordingly.

Since I can only be in front of screen for a couple of hours a day, I scalp around Euro/London open hours with a hard TP of a few pips, where I found Range Bar is a great help in erasing noise. Since it is a small TP scalp, I trade both retrace as well as range break out. The range in my case is 4 pips atm - may want to increase it to 6 or 7.

Keep up the great work Musashi, and thanks for sharing your strategy.

Akira
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  • #127
  • Dec 20, 2011 6:14pm Dec 20, 2011 6:14pm
Quoting RisingSun
Hello Musashi,

Although my trading style is a bit different from your Katana Strategy, I have found a lot of elements that I agree with and thought I should just drop by to say hello. This is no doubt a 5 start thread and I have voted accordingly.

Since I can only be in front of screen for a couple of hours a day, I scalp around Euro/London open hours with a hard TP of a few pips, where I found Range Bar is a great help in erasing noise. Since it is a small TP scalp, I trade both retrace as well as range break out. The range in my case is 4...
Well I certainly hope it's helping others who are involved in this market. Because what I'm showing here following price bars and retracements, looking for key levels of price, previous support resistance levels, whole price numbers basically describes how the market moves, once you understand how the market moves, that's most of the hard work done.

Controlling emotional decision is by far the most difficult thing to do. Which is why having a mechanical approach is of great benefit. I'm not saying it's the only way, just that it's one way.

At the end of the day it's the individual trader who is in control of what he or she does and that's it. Learning about the way price moves and where it's likely to react is 90% of the battle. Trade management is 10%.
  • #128
  • Dec 20, 2011 6:21pm Dec 20, 2011 6:21pm
Price certainly did contine after finding support at that 50% retracement level. Combined with previoius intraday support level.

All in hindsight though right.
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  • #129
  • Dec 20, 2011 7:39pm Dec 20, 2011 7:39pm
Cannot hope for too much of a move in asian session... however bulls are about.. TP 20 Pips and SL 15 Pips.

Trading is full of uncertainty, but it doesn't matter, you don't need to be certain, you just need to be following the direction of the trend and look for a retracement, have a clear exit spot and a clear take profit spot.

Once you have them, there's nothing much more you can do.

1.3150 is possible, overnight highs could be a bit of a problem however.

No risk, no reward as they say.
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  • #130
  • Dec 20, 2011 8:04pm Dec 20, 2011 8:04pm
Price responding to that xx25 level, faily typical, seems a pull back agian is likely.

Low probability entry trading right into resistance, combined with xx25 price levels. That's trading though and nothing is certain, all I know is that prices tend to move from xx00 to xx50 regularly and the next price level is the xx00 level.
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  • #131
  • Dec 20, 2011 8:27pm Dec 20, 2011 8:27pm
Possible H/L formation after the close of that bar, not confirmed as H/L until a fresh daily high is made.


Still bullish though. Moving stop up under that bar is not a bad idea.
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  • #132
  • Dec 20, 2011 8:55pm Dec 20, 2011 8:55pm
This is one method you can use to calculate where price could potentially move to, extend the length of AB and then extend this length from perceived swing low CD, and this will give possible TP region.

AB - CD move is quite common.

Just another tool you can use to assist in trading.

One that is very useful.
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  • #133
  • Dec 20, 2011 11:46pm Dec 20, 2011 11:46pm
Not surprised i got stopped out.
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  • #134
  • Dec 21, 2011 12:22am Dec 21, 2011 12:22am
Difficult to stop price momentum like this... went long as soon as the first bullish bar formed bouncing off of the xx00 level.
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  • #135
  • Dec 21, 2011 2:10am Dec 21, 2011 2:10am
If all goes well 1.3180 could be reached this session.
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  • #136
  • Dec 21, 2011 2:38am Dec 21, 2011 2:38am
Moved stop up beneath the xx25 level under that bullish candle.
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  • #137
  • Dec 21, 2011 2:50am Dec 21, 2011 2:50am
Ok moved stops up again, but this time I've scaled out of the position by half.

This wave up could be almost exhausted
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  • #138
  • Dec 21, 2011 3:03am Dec 21, 2011 3:03am
Decided to close the other half of the trade, some resistance around these levels on the higher time frames.
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  • #139
  • Dec 21, 2011 4:08am Dec 21, 2011 4:08am
There was a couple of chances to trade on GU according to the strategy.

Trading on days like these is when you make money...
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  • #140
  • Dec 21, 2011 4:20am Dec 21, 2011 4:20am
Masashi

Nice method
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