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The perfect trading system

  • #1,081
  • May 19, 2013 11:03am May 19, 2013 11:03am
GBPJPY AND EURJPY........................
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  • #1,082
  • Edited May 22, 2013 3:34am May 21, 2013 4:01am | Edited May 22, 2013 3:34am
@Karelk,

The post was sometimes last year, I can't remember exactly when. I just realise from your post that 1.7000 was a mistake. I meant to write 1.1700 instead of 1.7000. What I wrote in the post was 1000 pips either direction from 1.2650 i.e. 1.3700 and 1.1700. I just checked the chart now I realise that price actually reached the upper target (1.37100) and missed the lower target by about 300 pips (1.2030) as shown in the EURUSD weekly chart as today.

The purpose of my reply is to emphasis the importance of long-term planning and the role of the weekly candles in these process. If you observed the chart, you will realise that price went down to 1.2000 and went up straight to 1.37100 and now going back to where it took off. In this business, you do not stand a chance if you cannot see the bigger picture.

Enjoy your day!





Quoting karelk
{quote} I find your explanations very clear, thank you for your effort! However this time I am puzled (as was Mr Chia). Did you really mean 1.7000 for pending buy or was it meant to be 1.1700?
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  • #1,083
  • May 22, 2013 12:57pm May 22, 2013 12:57pm
I'm sorry if you find this post to be ill placed. I wanted to create a new thread but does not seem possible so I hope you will bare with me a moment. What I am wondering, without getting too deep into consequential factors that apply regardless (broker fee, interest, crossover date, leverage, etc.), can someone please explain what is the basic factor(s) that causes a Forex account to go bust? I know virtually nothing about Forex beyond the basic introduction from "Forex for Dummies".

The one thing I cannot seem to grasp is why if the exchange rate never goes to absolute zero how the account can go bust. My mom plays the stock market (how exactly I don't know) so I know from comments she has made that this is not possible with stocks. If you buy 100 shares at $10/share and the stock falls the next day to $1/share then you have lost *nothing* -- UNLESS you sell. If you wait 3 days until the stock goes up to $15/share and sell then you have made 50% profit on your original investment, regardless of the fact that it fell to 1/10 the original value. What is it about Forex that makes currency exchange any different?

I hope I have been clear and someone can help me understand this one point of confusion. Thanks in advance!!
  • #1,084
  • Edited 11:04am Jun 15, 2013 9:59am | Edited 11:04am
@userName,

It's obvious you don't know a jack about forex. Even if I tell you that leverage is the major reason why "account can go bust" using your own words, you will not understand. What I will advise you if you want satisfactory answer to your question is to search for babypips.com on Google and start reading about forex.

You can come back here if you have other questions after doing this.



Quoting uzerName
I'm sorry if you find this post to be ill placed. I wanted to create a new thread but does not seem possible so I hope you will bare with me a moment. What I am wondering, without getting too deep into consequential factors that apply regardless (broker fee, interest, crossover date, leverage, etc.), can someone please explain what is the basic factor(s) that causes a Forex account to go bust? I know virtually nothing about Forex beyond the basic introduction from "Forex for Dummies". The one thing I cannot seem to grasp is why if the exchange...
  • #1,085
  • Jun 15, 2013 11:03am Jun 15, 2013 11:03am
MONTHLY UPDATE FOR MAJOR PAIRS - JUNE 2013

I have been quite busy on some other projects and was unable to post my regular monthly updates until now. However for some technical reasons I was unable to attach charts to this post. I thereafter decided to share my analysis without charts. For those who are familiar with this thread, you can easily go to your charts and plot these levels. Those who have been here long enough can also post the current monthly and weekly charts for some of the major pairs. I will analysis these charts and share my views here. Here are my analysis for some of the pairs


GBPJPY: This pair was unable to break out convincingly above 156. The bullish run was thus halted around 156. The bears have now taken over this month and have dragged the price so far to 147 (about 1000 pips reversal). The concrete support for the current cycle 150-160 is at 140. Will the price get to 140 or will it reverse from 147? The weekly candles will us, but as usual follow one weekly candle at a time.

USPJPY: This pair was unable to break the Masterchart level at 105. The bullish run was therefore halted around 104. The bears have since taken over this month and have dragged the price to around 94 (about 1000 pips reversal here too). The concrete support for the current cycle 85-105 is at 85. Will the price get to 85 or will it reverse from the current level 95? The weekly candles will us, but as usual follow one weekly candle at a time.

EURJPY: Just like other Yen pairs, this pair was unable to break the Masterchart level at 135 by the weekly candles. The bullish run was therefore halted around 134. The bears have since taken in June and have dragged the price to around 124 (about 1000 pips reversal here too). The concrete support for the current cycle 120-140 is at 120. Will the price get to 120 or will it reverse from the current level? The weekly candles will us, but as usual follow one weekly candle at a time.

GBPUSD: This pair seems to have found support at 1.4800 and slow climbing its way 1.5800. What ever directive it will go the weekly candles will us, but as usual follow one weekly candle at a time.

You can see from the analysis for the Yen pairs that there is a pattern in price movement. Concentrate on Masterchart levels, 1000 & 500 pips price movement and the weekly candles and you will achieve more real success as a trader. For the smart traders, there are enough tips in the sentence highlighted in red colour to make their trading life a lot easier.

Enjoy your weekend!
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  • #1,086
  • Jun 17, 2013 5:31pm Jun 17, 2013 5:31pm
Hi Articulate,
I see you keep a very busy schedule so I appreciate you taking a moment of your time to reply.
Quoting Articulate
... Even if I tell you that leverage is the major reason why "account can go bust" using your own words, you will not understand.
Yes I do understand now. "leverage is the (major) reason" and I guess that's where I need to focus my attention for more detailed clarification...
The problem for me here, Google produces over 6 million hits on "forex leverage" alone and over 200 million on "forex".
Quote
... What I will advise if you want satisfactory answer to your question is ... babypips.com.
... but this looks like a *superb* resource to get that clarification. Now I don't need to filter through 6 million pages to find something a true pro would approve, so many thanks to you for that referral!!!
  • #1,087
  • Jun 21, 2013 1:09am Jun 21, 2013 1:09am
Articulate,

Do you still recommend H4 and M15 for Daytraders?

I'm keen to learn daytrading in this context. ESPECIALLY naked trading (with just RSI and perhaps, daily pivots).

Speaking of daily pivots, what do you think of them for H4 and M15 daytraders? It seems price bounces around off them quite well. Do you think we could use these as zones for TP?


Lastly, do you mind If I post my entries/analysis here for you to look over? I want to make sure my price action and reasoning is 100% spot on.
  • #1,088
  • Jun 21, 2013 2:06pm Jun 21, 2013 2:06pm
Any updates on EUR/USD post fed's news? Wonder if the $ is going to be up for the short term?
And on the "account going bust" high leverage, no MM are some of the reasons as to why it will..
  • #1,089
  • Jun 21, 2013 11:34pm Jun 21, 2013 11:34pm
Quoting Articulate
MONTHLY UPDATE FOR MAJOR PAIRS - JUNE 2013 I have been quite busy on some other projects and was unable to post my regular monthly updates until now. However for some technical reasons I was unable to attach charts to this post. I thereafter decided to share my analysis without charts. For those who are familiar with this thread, you can easily go to your charts and plot these levels. Those who have been here long enough can also post the current monthly and weekly charts for some of the major pairs. I will analysis these charts and share my views...

I enjoyed the transparent explanation and with a great deal of important information.

Thank you for posting ....multiple times throughout this threat.

Great effort and it helps everyone.
Master your Mind then Master your Trades
  • #1,090
  • Jun 22, 2013 9:22am Jun 22, 2013 9:22am
I need an opinion. I found this on the net. I do not own robots, but I am curious if it can be working or not. Any clues ?
  • #1,091
  • Jun 22, 2013 10:36am Jun 22, 2013 10:36am
@Tok
H4 and M15 candles are still one of the best guides for day traders provided you trade within the Masterchart levels. Daily pivots are not part of my trading strategy, I trade only the Masterchart Levels, the Monthly, daily and weekly candles PA for long-term and H4 and M15 for short term. For RSI, search for my post titled "My view on RSI" to understand how best to use RSI.

You are free to post your entries/analyis here but you should attach charts to your analysis for better understanding and easier review.

Enjoy your weekend!



Quoting Tok
Articulate, Do you still recommend H4 and M15 for Daytraders? I'm keen to learn daytrading in this context. ESPECIALLY naked trading (with just RSI and perhaps, daily pivots). Speaking of daily pivots, what do you think of them for H4 and M15 daytraders? It seems price bounces around off them quite well. Do you think we could use these as zones for TP? Lastly, do you mind If I post my entries/analysis here for you to look over? I want to make sure my price action and reasoning is 100% spot on.
  • #1,092
  • Jun 23, 2013 2:31am Jun 23, 2013 2:31am
You could kindly publish a chart EUR / USD ? It would be very important to my early experiences and also to others.
thanks
  • #1,093
  • Jun 29, 2013 6:36am Jun 29, 2013 6:36am
@caravan,

Search the thread you will find many EUR/USD Mastercharts. Mastercharts are usually valid for 30 years or more. If you find any of these charts plot the levels on your platform and you will see price movement in another light. In case you have difficulty in finding the charts, this is what you should do:

a) Open a weekly EUR/USD Chart
b) Draw horizontal lines every 500 pips from 1.2000 to 1.6000 i.e:

1.2000
1.2500
1.3000
1.3500
1.4000, etc

If you do the above you will have your Masterchart.

I believe in teaching people how to do things. The things you know will be yours forever.



Quoting caravan
You could kindly publish a chart EUR / USD ? It would be very important to my early experiences and also to others. thanks
  • #1,094
  • Jun 30, 2013 1:51am Jun 30, 2013 1:51am
Now I'm sure, I imagined what you've just written.
I thank you for your kindness and I wish you and all the Forum good work.
  • #1,095
  • Jun 30, 2013 4:23am Jun 30, 2013 4:23am
Caravan it may be an illusion !
  • #1,096
  • Jul 8, 2013 8:55pm Jul 8, 2013 8:55pm
Articulate,

Are there certain posts that focus ONLY on daytrading (using the 15M as main chart), or is it all generalized?

I'm struggling to understand your advice directly in the context of this TF of trading.
  • #1,097
  • Jul 10, 2013 10:58am Jul 10, 2013 10:58am
@Tok

Search for my post on 50 Pips Price Action Analysis (50PPAA) and read it carefully. It is very adequate for day traders. Where you cannot find it, let me explain the strategy here. The principle behind the strategy is simple. Price for most major pairs moves between 150-200 pips per day and 350-500 pips per week. 50PPAA simply means divide the Masterchart levels 500 pips or 1000 pips into 50 pips and watch how H4 and M15 candles react within every 50 pips range. The most important thing is to trade in the direction of H4 using M15 for your entries. Try this with a single pair first before adding other pairs.




Quoting Tok
Articulate, Are there certain posts that focus ONLY on daytrading (using the 15M as main chart), or is it all generalized? I'm struggling to understand your advice directly in the context of this TF of trading.
  • #1,098
  • Jul 11, 2013 11:47am Jul 11, 2013 11:47am
Hi Mr. Articulate,
Many thanks for your idea and share here for all. I think your idea is quite clear. As a newbie I have some questions to you. What is the logic behind the master chart i learn from your past post.The only problem is that some pairs High and low is exact 500 or 1000 level and others are not.
For example E/U is my chart show 0.8222 low and high 1.6025 so i draw lines for master chart at 0.8500 ...0.9000...0.9500...but for GBP/USD my level is 1.3500 low and high 2.1198.Here you suggest draw line from 1.2300 to 1.7300(15 pages post) but I draw my level from 1.3500 to 500 different levels so Am I wrong? Since E/U level starts 0.8222 but you draw 0.8500 so some pips far behind(according your suggest one of the mate's question how E/U master chart can be created).
Therefore 2 pairs two situations.....
May I have some explanation if you do not mind.

Best regards.
  • #1,099
  • Edited 2:24pm Jul 11, 2013 2:13pm | Edited 2:24pm
@Tok

Here is a my gift to you H4 and M15 Charts for 50PPAA for GBPUSD. Replicate these charts and your trading platform, observe your chart for a week and post your findings here.




Quoting Articulate
@Tok Search for my post on 50 Pips Price Action Analysis (50PPAA) and read it carefully. It is very adequate for day traders. Where you cannot find it, let me explain the strategy here. The principle behind the strategy is simple. Price for most major pairs moves between 150-200 pips per day and 350-500 pips per week. 50PPAA simply means divide the Masterchart levels 500 pips or 1000 pips into 50 pips and watch how H4 and M15 candles react within every 50 pips range. The most important thing is to trade in the direction of H4 using M15 for your...
Attached Image(s) (click to enlarge)
Click to Enlarge Name: GBPUSD - 50PPAA.jpg Size: 82 KB
Click to Enlarge Name: GBPUSD - M15 50PPAA.jpg Size: 80 KB
  • #1,100
  • Edited Jul 12, 2013 2:36am Jul 11, 2013 2:22pm | Edited Jul 12, 2013 2:36am
Concentrate on round figures for your Masterchart Levels and ignore false breakouts. Depending on the currency pair, false breakouts could be as much as 100-300 pips. Major decisions are taken by the "Big Players" around round figures.

Study as many weekly charts as you can and observe how the weekly candles behave around these levels. If you are looking for solid support/resistance, the weekly candle is the secret.





Quoting Ariful Mamun
Hi Mr. Articulate, Many thanks for your idea and share here for all. I think your idea is quite clear. As a newbie I have some questions to you. What is the logic behind the master chart i learn from your past post.The only problem is that some pairs High and low is exact 500 or 1000 level and others are not. For example E/U is my chart show 0.8222 low and high 1.6025 so i draw lines for master chart at 0.8500 ...0.9000...0.9500...but for GBP/USD my level is 1.3500 low and high 2.1198.Here you suggest draw line from 1.2300 to 1.7300(15 pages post)...
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