Against Conventional Wisdom

Great post boss. You really are clear in your explanations of when and why. I really enjoy this thread you created. God Bless you.
Oh, and one thing. Your post about BE? I thought it only protected one from loss. How does gain relate to it if not allow for gain?

When you set BE and it gets hit you lose nothing, but you also don't make anything. But it is still considered a winning trade because you have lost no money.

Yes, I see now the example of what you said. Thank you.
What happens though as far as your broker goes when it comes to his commission?
Aren't you obligated to them for the initial entry? The three or four pip spread? This still confuses me.

I assume there is a difference depending on what broker you use but as an example what about FXSOLUTIONS? How do they handle a trade like that with using that BE?

If I am asking dumb questions or you would rather I not post things like this here please tell me.

Another Example

This one came during the beginning of the London session. In a way I envy all of you who trade that session because the movements are so good.
I've tried. but can't make the adjustment. I prefer my sleep at night.

(1) The M30ST chart. Just off this chart was a beautiful entry. You had a close-open inside the Bands right on top of resistance. Can't get any better than that. This entry gave up your 40 pips without any problems. If you had stayed with it all the way, it would have been worth about 70 pips.

(2) This is the H1 showing the hit off two resistances together. This hit corresponds with (1).

(3) Here is the H2 showing the hit to the pip on the Parabolic, which in this scenario was resistance. This hit also corresponds with (1) and (2).

Daily 9-24

As I mentioned last night, it looks like the Daily wants to turn down. And it's making a good show of it.

On the Daily-1 chart:

(1) We have the open below the red indicator, which I will call EMA from now on. The reason is - it's an EMA. The yellow is sitting right on top of it and they are ready to cross.

(2) The Parabolic is in the Down position and locked in. It flipped to this position last night and this being the second bar it is locked until everything decides to go back up.

I've also mentioned that the yellow is like the heartbeat. Price and the yellow prefer to be connected. But being this close further down movement will pull the yellow along. With this being said, if price decides to retrace to pick up the yellow I won't be overly surprised. I will let the lower trading charts tell me if this may happen.

Daily-2:

(3) These are the Bollinger Bands. If you go back and look at yesterdays Daily you will see the bands moving in. Today we have the bands basically flat. For more down movement this is a good sign.

Daily-3:

This shows the pivot points. The Daily opened below the Daily Pivot Point (DPP) which is another good sign of down movement. I will discuss the time of the new Daily and the Pivots soon.

Now does this mean we are in a new Down? Not completely, but things are very definitely looking like there may be more movement in that direction.
As you all know, with this pair it doesn't take much from some jokers mouth to turn things the other way.

The Daily and Pivots

The time chosen for the new Daily is very important. I know many will say it doesn't matter and just go by your brokers time. Or you will hear the argument that this is a 24 hour market and a set time for the Daily doesn't really matter. If this is the case, why do so many who claim that also make reference to the Daily?

To have the Pivots set at the proper levels the time for the new Daily is of utmost importance. Forex has this thing called the swap, which is essentially the interest you pay or receive to use the currency you are trading. This swap occurs at 1700 ET (New York) every day. This is the time used for the end of the previous day and the beginning of the new day. The pivots are calculated at this time. This system uses the classic (High+Low+Close) / 3 method to get the DPP. The main Pivots used are the DPP, M1 (the mid-point of S1 and S2), M4 (the mid-point of R1 and R2), S3 and R3. You may also use the M2 and M3, but they are not essential.

If you set your Pivots up like this, you will notice that the majority of down moves end in the area of M1 and the majority of up moves end in the area of M4. There are times when the move goes past these points. When this happens price rarely moves past the S3 and R3.

I am confused. I am very impressed by your results and knowledge. I am just confused because your thread starts out stating that you disagree with fundamental analysis, however it seems that this is the focus. Don't get me wrong. It is still impressive and I would want to learn to understand like you do. I am wondering if I am missing something.

The system uses Technical Analysis. Fundamental Analysis is the news and speeches and rumors. I don't use any FA, per se, but I am aware of certain events that occur. An example would be Draghi's speech tomorrow.

I had obviously forgot there is a difference.

Have been busy helping someone and answering correspondence. Missed the better entry at 1.2950. Went sort at 1.2934 BE is set TP 40 pips at 1.2894. Will see how it goes.

TY for your this thread,very much to learn,I wish to learn as I keep failing in forex.

Wish you could also sent me info on how to learn this.Very thankful.

Send me a PM and we can discuss it.

Not sure if this one will work out. Outer Band on the 30 was penetrated and that a lot of times indicates the end of a move or retrace. Also the Bands on the H1 are not fanning out. Oh well. I'm going to let it run and get some sleep.

God Bless everyone.

Just so you all know I don't BS.

Recap 9-24

As I said I missed the first, best entry. It was off resistance. Shown here on the H1 (1) and H2 (2). Even though both these charts looked as if they were up at the time, the hits at resistance was enough to go short. With this knowledge I just waited on the entry off the 30ST (3).

Trading requires discipline and FOCUS. I was very busy last night and my FOCUS was not completely there as my entry shows (4). If I had not been so distracted, I would have gotten a very good entry and not been concerned with some of the factors I mentioned in previous posts.

Your entry is at 4? Why was that a bad entry?

I just read other post. So your entry was a little late.

Hi;

I had read thru all the threads,but could you help to show what lines combines to be resistance or support area to buy or sell,plus the closed/open of bar is it the trigger and must be at the red and purple,like a overbought/oversold.

Consolidation off the Longer Term Time Frames

Some of you may be asking, why is this not crashing down if the Daily is in a Down. This can be easily answered by looking at the Weekly. The Weekly is still very definitely in the Up. And this most recent move down this morning has just tested a strong support (1). And as I mentioned yesterday I would not be surprised if this moves up to balance the Daily. It has done just that reaching resistance from the Daily (2). Also, not shown here, is price hitting against resistance on the H2. Any time you have the Daily and Weekly not in sync you are in consolidation. So until that support on the weekly is broken this market could easily turn back up.

This does not mean price won't move either up or down, but does mean until certain S/R areas are broken it will be contained. The truth is that currencies spend the majority of their time in consolidation. Now if you look at a Monthly chart you would say that the trends are sometimes well defined. And I would say you are correct, but how many people do you know who can trade monthly charts. The fact is that within those Monthly trends you have many numerous retraces. I don't believe there are any traders here on FF who have anywhere near the resources to plop there money down in currencies for months at a time. And if they claim they can and do, I would truly question their honesty. Now there are traders here who buy/sell and hold. I would say they are doing a dis-service to most of the traders here by promoting that type of trading. The vast majority of retail traders do not have the capital resources to trade in that manner.

A major problem with that type of strategy is you tie up your capital. And as you have seen all too often, this market can turn on a dime. So if you enjoy watching your account go up 300 pips only to give back 200 or more in a day or two, go for it. This system allows you to make 200 or more pips most every week and keep it.