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Simple Money Making Method

  • #2,541
  • Dec 21, 2012 8:13pm Dec 21, 2012 8:13pm
Quoting kashTrader
You may have already seen this but, I came across an indi on the THV thread. I think its from Miss pips called Rainbow. It uses a lot of emas next to each other to create a visual for a trend. Looks cool. I will go with the version this thread uses because seems successful and then I can move on to customising it like you did

We will discuss soon THanks.
Here is a chart where I show you possible entries using only the "price". We just need to wait for the right moment to enter.
Attached Image (click to enlarge)
Click to Enlarge Name: chart1.png Size: 179 KB
Swing with the tide, Surf with the waves!
  • #2,542
  • Dec 21, 2012 8:26pm Dec 21, 2012 8:26pm
Quoting kashTrader
You may have already seen this but, I came across an indi on the THV thread. I think its from Miss pips called Rainbow. It uses a lot of emas next to each other to create a visual for a trend. Looks cool. I will go with the version this thread uses because seems successful and then I can move on to customising it like you did

We will discuss soon THanks.
Im putting the same chart, one with emas 12-72 and the other with emas 10-30-60-100... As you can see, the emas are just a tool to help ourself to keep away from the wrong timing, but in reality we "don't need it" to trade.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: emas 12-72.png Size: 180 KB
Click to Enlarge Name: emas 10-30-60-100.png Size: 189 KB
Swing with the tide, Surf with the waves!
  • #2,543
  • Dec 21, 2012 8:36pm Dec 21, 2012 8:36pm
Here is the rainbow. Try to check the differences about the entries-exits..
Attached Image (click to enlarge)
Click to Enlarge Name: rainbow.png Size: 57 KB
Swing with the tide, Surf with the waves!
  • #2,544
  • Dec 22, 2012 3:14am Dec 22, 2012 3:14am
Quoting FxRetro
Here is the rainbow. Try to check the differences about the entries-exits..
I see what you mean. But I think the less you have the simpler it makes the chart and since you say that we could be trading without this, we can do with the less ones. Plus yes all the emas tell you similar story but when back testing I have found the 72 and the PAC to yield quiet good results. Maybe it filters out a lot of entries but in my case it filters out a lot of bad ones.
  • #2,545
  • Dec 22, 2012 11:52am Dec 22, 2012 11:52am
Quoting kashTrader
I see what you mean. But I think the less you have the simpler it makes the chart and since you say that we could be trading without this, we can do with the less ones. Plus yes all the emas tell you similar story but when back testing I have found the 72 and the PAC to yield quiet good results. Maybe it filters out a lot of entries but in my case it filters out a lot of bad ones.
Remember you may use what suits your self better :-). The rainbow is good for swing trading too. However most of the entries are given after the trend is developing, and we don't want a late entry. The best moments to enter a trade is when there is Accumulation - Distribution (Supply - Demand) key areas.
For pyramid trades you can use the rainbow if you wish. I stoped using the rainbow also because it diverts my sight away from the price. It is just opinion.
Swing with the tide, Surf with the waves!
  • #2,546
  • Dec 22, 2012 12:02pm Dec 22, 2012 12:02pm
I think there is not "Bad Trades" because there is someone making profits of what we call "Bad Trades". I consider there are "Wrong direction analyze (decisions) or Bad Timing" when we make a non profitable trade. I'm pretty sure that you have guessed lot of time the direction of the trend with accuracy but your trade were wrong at that moment, just to find out a few hours later that you were right. That's why I prefer to say "Bad Timing" instead. That won't low dawn my/our self-estime and aboid self destructive behaviors in the market.
Swing with the tide, Surf with the waves!
  • #2,547
  • Dec 22, 2012 1:09pm Dec 22, 2012 1:09pm
Here some images as illustration. Who took that short trade on the NZD-JPY?? I couldn't put the pic at that moment. If one of you want to trade different pairs, It would be good to take a look by group to take a general idea of the direction of any asset. Im putting here 2 pics of the NZD-JPY, one with candlesticks and the other with the close line only. You will notice there is not difference.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: With candlesticks.png Size: 57 KB
Click to Enlarge Name: with close line.png Size: 56 KB
Click to Enlarge Name: Trade Explorer.jpg Size: 323 KB
Swing with the tide, Surf with the waves!
  • #2,548
  • Dec 22, 2012 1:11pm Dec 22, 2012 1:11pm
JPY Group example
Swing with the tide, Surf with the waves!
  • #2,549
  • Dec 22, 2012 1:12pm Dec 22, 2012 1:12pm
Sorry, I forgot it!
Attached Image (click to enlarge)
Click to Enlarge Name: jpy group.png Size: 88 KB
Swing with the tide, Surf with the waves!
  • #2,550
  • Dec 22, 2012 1:23pm Dec 22, 2012 1:23pm
As I said before, I messed up in the timing with the gbp-jpy, eur-jpy and chf-jpy. I lost a few pips there. Now it is just a matter of wait for the right moment. But the method is very good.
Swing with the tide, Surf with the waves!
  • #2,551
  • Dec 22, 2012 1:27pm Dec 22, 2012 1:27pm
Correction: I wrote "Lower Lows" in the images, but it is "Lower Highs".
Swing with the tide, Surf with the waves!
  • #2,552
  • Dec 22, 2012 2:51pm Dec 22, 2012 2:51pm
Looks like a good place to go long here...
Attached Image
  • #2,553
  • Dec 23, 2012 7:26am Dec 23, 2012 7:26am
Quote
FxRetro

Quote
I think this way of trading is very simple. With the help of support and resistance it is very easy and simple to find the reversals and good entry points in all the pairs. I'm posting different pics with possible entries in the last weeks (not the GBP, I went back for the pic). I'm not using candlesticks to show simple price action only with the "close", how easy is to find support-resistance, range zones too. I think trading is very simple but we want to make it difficult just to pretend that we are genius. With some patient, discipline to wait,...

I saw all your posts, I like them and I carefully want to ask where or how you put your SL and TP ?
Thanks
Moshe
  • #2,554
  • Edited 10:56am Dec 23, 2012 8:09am | Edited 10:56am
Thank you FX-Pro for sharing with us this simple and effective trading method. I also want to thank the other traders for their input: Davit, burnzmeister, fx-light, duffy and others.
I just finished reading the thread ( took me a week ) and I will be joining you guys next year. I will mainly focus on EU and GU, since I leave in Europe, but I will also keep an eye on AU and EJ (very good volatility).

Till then take care and happy holidays.
  • #2,555
  • Dec 23, 2012 11:21am Dec 23, 2012 11:21am
Quoting amikab9
I saw all your posts, I like them and I carefully want to ask where or how you put your SL and TP ?
Thanks
Moshe
I usually put an Stop of 50 pips and 50 pips Take Profit for 1H or 4H. I think 50 pips SL give enough space to move. But before I put a trade I like to measure the risk (distance in pips) from the entry to the last Sup-Res. If it's to close to 50 pips, I wait a little bit to see if the pullback goes further. Usually I like when the risk is less than 40 pips. About the TP I like to get 50 pips but many times I let the trade run. If the conditions is only giving me 10 pips, then I close the trade and wait for another chance or look a better opportunity in other pair. I check every pair, looking for the best chance.

Also, for the TP I could use the last support or resistance, the round numbers too (0.0050, 0.0100, 0.1050).. You have to give attention to these numbers: 0.0000, 0.0025, 0.0050, 0.0075. Tray to make a backtesting and you will notice those are the numbers (or near of them) where the rebound of the price are made.
Swing with the tide, Surf with the waves!
  • #2,556
  • Dec 23, 2012 11:57am Dec 23, 2012 11:57am
Quoting amikab9
I saw all your posts, I like them and I carefully want to ask where or how you put your SL and TP ?
Thanks
Moshe
Another thing I forgot to tell you. I may do this also for TP: I always put 2 lots; 1) I may put the same TP for both; or 2) I may close 1 lot when rach 50 pips and let the other run moving the ST to the next SUP-RES that it is make. If the time is passing and is not reaching 50 pips, then I close the trade with what I get. The most important is to close the trade with +1 pip at least. If the timing was bad and the trade is negative, then close it with that lost and wait for another chance.
Swing with the tide, Surf with the waves!
  • #2,557
  • Dec 23, 2012 12:00pm Dec 23, 2012 12:00pm
I do that when I have the time to monitor the trades. If I can't monitor the trades then I let the ST and TP to work.
Swing with the tide, Surf with the waves!
  • #2,558
  • Dec 23, 2012 12:21pm Dec 23, 2012 12:21pm
a pic
Attached Image (click to enlarge)
Click to Enlarge Name: example.png Size: 43 KB
Swing with the tide, Surf with the waves!
  • #2,559
  • Dec 23, 2012 8:31pm Dec 23, 2012 8:31pm
Guys,

ARE WE MISSING TOO MANY TRADES BY BEING SO STRICT ON THE CROSS?

Is it my imagination or what. Ive been going over these 2 moving averages on daily charts for 2 weeks now,backtesting a lot of pairs. It seems to me that this is really a nice system. But it also looks to me that we are losing a lot of good trades(maybe not as great as the one we were given where the 12 has to kiss the 72 and price bars going thru both) because I see many.many profitable trades just from getting in when price kisses the 12 as long as both 12 and 72 are in same direction. I even see many great trades when price dips down and almost touches the 12 and takes off again and as long as the 12 isnt too far away from the 72, to me that shows it is not too extended or overbought, and you can still get in.

I also find that another way to do it is let price break thru the 12 and 72,and as long as the 2 moving averages are close together, thats enough to take the trade. Its been very profitable! I feel we waste too much time waiting for that perfect cross that may not come for many weeks at a time. Why miss the trend if the 12 is lighting the way?

Anyone agree with me here?
  • #2,560
  • Dec 23, 2012 9:11pm Dec 23, 2012 9:11pm
The system is also when the price touch ema 72 and go back closing beyond 12 ema.
Swing with the tide, Surf with the waves!
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