Genesis Matrix Trading

I just want to say thanks to Xaphod for creatinng the stsi indicator and Eval for the Cycler since i got this indictors two weeks ago i have been making atleast 60pips daily here is my chart some minutes ago on EURUSD i made 25pip each on two trades for 50pips

Most in here seem pretty good at trading, there are one or two that don't seem to be able to tell what the immediate trend is or even if there is one, and that will cause more problems than anything else.

I'll see about editing the first post tomorrow when the markets are quiet. I think some people still view forex as a get rich quick scheme, and they see a good system such as Genesis as their shortcut to early retirement.

The facts of the matter are very different, however......as the 95% + that fail at this business can attest to.

Look.....I could go to the best tool store in the country tomorrow and buy the best set of tools available to repair cars. Does that make me an A Grade mechanic? Of course not......I will be competing against tradesmen who have done their 4 year apprenticeship, and have been mentored for many years by skilled mechanics to acheive the level of competency that they now have. Who the hell do I think I am to be able to compete with them???

The same is true for trading forex. We are up against some extremely skilled traders, bankers, hedge fund managers, brokers full of skilled and qualified traders. I mean, come on......does anyone really think that they can download MT4, join the forum and grab a couple of indicators and a template and expect to rake in BIG money consistently?????

For those who are not prepared to learn to trade.......they are doomed to join the 95% of FX losers.

Learn to trade....then.....learn a system. There is no other way.

Today is a tough one, there really isn't a clear trend.

The EU just ran up and hit R1, then turned around. The M15 stoch is overbought, and so is the M5 stoch. Should we see that as a rejection of R1 to go short with a Genesis signal?

That's how I see it at the moment. But very curious as to what the more experienced traders are looking at.

Thanks!

I took the long off the pivot to R1, but my SL was pretty tight. Not going to have a go at a short though.....doesn't look very enticing to me. Perhaps NY will help smooth things out a bit

Okay, makes sense. Thanks very much RJ.

See how the short doesn't really have any power behind it? It looks like a lost soul wandering through the universe...lol! If it takes off down without me.....then that's ok too.....I didn't lose a cent

Several folks have identified, correctly, that the market is "ranging" or "not trending". Or, more colorfully, "a lost soul" (thanks, RJ ).

Why not just accept the wisdom of that recognition, and choose not to trade? Genesis doesn't have a row for that, but choosing when *not* to trade is just as important a trading decision, if not more so, than choosing *when* to trade. And be comfortable and proud of recognizing that and just sit back and watch. Or, better yet, *don't* watch. Go do something else. You've made the decision that "the market's not right for me today", go off and enjoy something else.

Just because the market is open doesn't mean you have to have a trade on the table. Especially this week, as OlivierForex pointed out, with rate statements for the US, BOE, and ECB and NFP on Friday.

Nice short set up on the GU - wish I had stayed in a bit longer.

Well said Cody.....thank you

Nice

There was good short setup before Frankie on the M15.....would have been worth about 45 pips up until now. I didn't take though because I didn't see it....too busy eating!!

I'm not up at that time, but did catch the last leg though

Hello @ all,

i have taken the short after R1 bounce on E/U.

We have seen today ugly market ranging within a 30 pips range. Only screen time, good market knowledge and experience will prevent to jump in trades during such situation.

I think, at the end there is only one answer to solve, running into such situations: learn, practice, learn, practice and get familiar with you're trading instrument.

That's the experience i have made in the past...

chriss

Wow, a lost soul wandering through the universe...
that's beautiful man!

same here i took it but just +13 but pips are pips

Nothing wrong with that.......good job

Point 1: notice how we hit the down trendline to the pip...this tells me that the bears are in charge because there wasn't even any overspill above the trendline and we retraced fast and we made a new lower low at Point 2.
Of course I didn't know at the time if the price would bounce of the trendline or go through it but when the Long signal was generated (1st blue arrow) there was only 8 pips left before we'd reached that trendline and that is not enough for me (to quote RJ, it wasn't a high probability trade and therefore I didn't enter a Long despite the fact that the Stox were in good places).

Point 3: we were still in the downtrend with 0-2 making lower lows and 1-3 making lower highs. Once we retraced from 3, I drew my second down trendline between 1 & 3 (I would not consider a Long until we at least Closed a M5 candle above it).

Point 4: once we got to that point I started being open to a possible Long setup later because:
a) for the last 3 hours the price had been going up and down around the DP and that is showing at least indecision between Long & Short.
b) we now had 5 different candles that had tested 1.2254 and that level had held (was support slowly starting to come in around that level after the earlier bounce at 1.2248? Higher support levels are the first steps in an emerging uptrend).

Point 5: at 12.40 we get a COMPLETE Long M5 Genesis signal with 4 blue dots + Arrow (yippee, I like to have the Arrow on the same candle as Genesis - not a Genesis rule, it's just me) + the next candle 'opens clear' of the yellow MA + (M5 blue / M15 yellow) stox are pointing up from recent OverSold (OS) levels and they are NOT in OverBought (OB) territory yet + the H1 stox (red) is at least flat now + that M5 candle closed at 1.2269 ABOVE the DP at 1.2265.
Last but not least, there was still that trendline I talked about earlier to consider (the one between points 1 & 3). Although it doesn't show it using HA candles, the 12.40 M5 candle also Closed above that trendline (please see yellow circle in the green insert).

With all this in my favour I entered a Long position + I felt that I had a good Risk/Reward scenario in this trade:
1) I could put my SL either below the 1.2254 level (mentioned in Point 4) risking 20+ pips or even below the low at 2 (1.2248) risking 30+ pips.
2) the reason that my R/R was good is that at 1.2269, the R1 area at 1.2305 was 36 pips away giving me a 1 to 1.5 R/R (not the best but acceptable).

Last couple of points:
a) if you look at the green insert again you could have had an extra confirmation if you were even more cautious: the M5 candle that followed the break of the 1-3 trendline (yellow arrow) was technically perfect to add to the Long cause because:
1) it retested the 1-3 trendline, went below it, at which point buyers stepped in as it was potentially the last chance to 'get in' for a Long ride.
2) not only did it again Close above the trendline, it also closed as a bullish candle (the close was higher than the open) and it had that long rejection-of-the-old-trendline tail.

It doesn't alsways work like that: if you had waited, we could have had this candle go straight up and give you a much worse entry and even stop you from entering altogether if it had closed too near the R1 area to still offer you a good R/R ratio.

It has been mentioned before: consider R1 (and the other pivot levels) as areas rather than a straight line so look to take profit a few pips before it especially if you haven't had the best of day so far or if the previous PA has not been too friendly. Yes it might just go straight through and you could miss out on more pips, but you are not the only trader eyeing these levels and if the price retraces, you don't want to be the last one to get out and get the worst price too to close your trade.

Oli

PS: feel free to add anything...there is no such thing as definitive PA/TA analysis as we all see different things in the same chart.

Edit: sorry not quite sure what happened to the picture, it's looking a bit fuzzy and small...I'll try to re-up a better one soon.

Edit2: EurUsd2 should be the picture now showing and it's a bit clearer!

Edit 3, also important...when we got the first Long signal, all the dots on the M15 matrix (below the M5) were red! When we got the Long signal, 2 out of 4 dots on the M15 Matrix had already turned blue (much better than none lol) and the signal was generated at 12.40, meaning that when the M5 candle closed at 12.45, so did the M15 candle (so what you see is what it was then - M5 signals generated on the xx.10 xx.25 xx.40 xx.55 candles have added strength in my view if the M15 matrix is also starting to change colour then).

I was watching the 15 min EU and was hoping that a nice long would show up on the 5 min - finally did - 10 pips out

I'm in that same trade Patti

SL now at BE +15