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Trading Made Simple

  • #37,941
  • May 30, 2014 7:07am May 30, 2014 7:07am
Well best I can say is, when you're trying out any method, try to stick to it at least a month. The longer the better.
You need your statistics to know for sure if you're making profit. Just hang in there!
Everything you can imagine, is real - Pablo Picasso
  • #37,942
  • May 30, 2014 8:10am May 30, 2014 8:10am
Quoting adikashyap
{quote} Thanks a lot for a lengthy advise. Now ... 1. How to judge momentum in price in higher TF? 2. How to analyse the market sentiment through Candle Sticks? 3. What strategy / Indi to know the Nearest Support and Resistance and Price Action? 4. How to differentiate between Primary and temporary / secondary trends? 5. My broker charges in upwards of 80 points (8 pips) to 140 points (14 pips) spread for pairs like EurCad, AudCad, GC, GCad, etc. Do you think it is still worth to trade them? Thanks again in advance ....

It sounds to me like you're paying way too much on you broker spreads, should be at least half and maybe less than what your paying. I'd change brokers, there are dozens out there. I'm not with them, but quite a few are with FXCM, but there are many others. For example on EUR/CAD my spread is 4.4 but I've seen others paying 3.1. With your broker spreads the trade has got further to go just to break even and if it goes your way then you're just give money away. And if the trade goes against you then those sort of spreads just add to the pain. Show them some consumer resistance, no reason not to change brokers, plenty out there.
  • #37,943
  • May 30, 2014 8:12pm May 30, 2014 8:12pm
Quoting adikashyap
{quote} Thanks a lot for a lengthy advise. Now ... 1. How to judge momentum in price in higher TF? 2. How to analyse the market sentiment through Candle Sticks? 3. What strategy / Indi to know the Nearest Support and Resistance and Price Action? 4. How to differentiate between Primary and temporary / secondary trends? 5. My broker charges in upwards of 80 points (8 pips) to 140 points (14 pips) spread for pairs like EurCad, AudCad, GC, GCad, etc. Do you think it is still worth to trade them? Thanks again in advance ....

Hi adilkashyap,

Here my anwsers to your questions:

Q1. How to judge momentum in price in higher TF?

Use the RSI which is a momentum indicator. The TDI is based on the RSI data and shows three moving averages of different periods – 2,7 and 34. These 3 moving average which we call the Grenn Price Line PL, the Red Trade Signal Line TSL and the Yellow Market Base Line MBL shows you the short term , mid term and long term momentum.

Q2. How to analyse the market sentiment through Candle Sticks?

I learn Candlestick and Chart Patterns these from Thomas Bulkowski and Steve Nison. Look up their books and websites. I also posted some of their materials here in this thread. Look for them. I keep my trading simple, I just learn and master a few of the common candlestick patterns and chart patterns and apply them consistently throughout and in multiple timeframe analysis . There is one pdf “Three Most Powerful FOREX Patterns” which I based many of my trades on. Download this pdf there in Post#20,110.
http://www.forexfactory.com/showthre...77#post6720177

Q3. What strategy / Indi to know the Nearest Support and Resistance and Price Action?

You can learn how to draw support and resistance at the babypips.com school of pipsology website.
http://www.babypips.com/school/eleme...esistance.html
I use that to draw the Monthly and Weekly price swing levels on all my charts and call these swing levels Historical Price Swing levels.
I keep things simple when I am on the H4 and H1 chart timeframes, I use the Daily and Weekly Pivots in combination with the Open High Low Close OHLC price levels of the previous Day and the previous Week. I look confluence of these so-call support and resistance and also Round Numbers 00, 50 price lelvs. I look for Price Action around these confluence areas. Support and Resistance is not one price line but a small region where price reacts.

Q4. How to differentiate between Primary and temporary / secondary trends?

You need to look at the wave pic below which I posted many times. You must decide which chart timframe you want to trade with. When I trade the 4H using H4 chart timframe, I look for TMS trade setups on my H4 charts. The Trend chart is one timeframe higher , therefore I look a the Day chart and also the Weekly chart as my Primary Trend. I will enter the market on the retracement of the Primary Trend using the H4 chart which is the Intermediate Trend.
When I want to fine tune my entry, I switch to H1 and try get an entry so that I can get a good Entry Price where I will find a smaller initial Stop Loss SLso that I can do my position sizing for my trades. I follow the R and R-Multiple concept therefore position sizing is very important. My inistal SL is my R of the trade.

Q5. My broker charges in upwards of 80 points (8 pips) to 140 points (14 pips) spread for pairs like EurCad, AudCad, GC, GCad, etc. Do you think it is still worth to trade them?

These currency pairs you mentioned have much wider average weekly trading ranges than the majors. GBPCAD weekly average range is 260 to 310 pips and EURAUD weekly average range is 290 to 310 pips, therefore when you can target 60% of that for 4H swing trading, the spread matters less. Any when you use s scaling in strategy you can make more pips when trading within that range. Go and find a broker who offers better spread to your comfort level.


Attached Image
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #37,944
  • May 30, 2014 8:55pm May 30, 2014 8:55pm
Quoting emmanuel7788
NZDUSD Week22 H4 30May GMT2345 ... 15 min before Tokyo opens. {image}
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Did anyone traded this pair yesterday?

Did is what I saw as risks.

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I took that trade and reduce risk to 1% instead of the full 2%. Used a quick BE move set using ATR of 20pips.

Attached Image (click to enlarge)
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Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #37,945
  • May 30, 2014 9:03pm May 30, 2014 9:03pm
Quoting Tanglewood
{quote} It sounds to me like you're paying way too much on you broker spreads, should be at least half and maybe less than what your paying. I'd change brokers, there are dozens out there. I'm not with them, but quite a few are with FXCM, but there are many others. For example on EUR/CAD my spread is 4.4 but I've seen others paying 3.1. With your broker spreads the trade has got further to go just to break even and if it goes your way then you're just give money away. And if the trade goes against you then those sort of spreads just add to the pain....
Thanks for your advice. But unfortunately, FX trading is illegal for Resident Indians and our prime bank RBI has tightened its policies for international fund transfers ... all routes of international fund transfers ... So do not have much liberty of choosing ANY broker ....
Have to stick to best of the available ....
  • #37,946
  • May 30, 2014 9:11pm May 30, 2014 9:11pm
Quoting emmanuel7788
{quote} {image} Did anyone traded this pair yesterday? Did is what I saw as risks. {image} I took that trade and reduce risk to 1% instead of the full 2%. Used a quick BE move set using ATR of 20pips. {image}
You are God Send ... For FX Traders and learners ...
This ONE post had educated me so very much ....
I remember your post about R and R multiple trading, with a video tutorial and also about position sizing. Unfortunately this thread moves jet like and tough to keep up the pace.
Can you please re-post your post on R and R Multiple trading and Position trading?
Thanks in advance
  • #37,947
  • May 30, 2014 9:17pm May 30, 2014 9:17pm
Quoting adikashyap
{quote} You are God Send ... For FX Traders and learners ... This ONE post had educated me so very much .... I remember your post about R and R multiple trading, with a video tutorial and also about position sizing. Unfortunately this thread moves jet like and tough to keep up the pace. Can you please re-post your post on R and R Multiple trading and Position trading? Thanks in advance

I know at least one member made compilation into pdf files of all my posts. Hope he/she will respond to you request. If not, then I will do some work for you later.

But first let me do my weekend homework after the Month candles all closed for May and I need update all my Big Picture Plans and to make my June trading plan.

Have a Good Weekend Folks!
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #37,948
  • May 31, 2014 1:36am May 31, 2014 1:36am
Quoting MrAussieFX
{image} Regards
Dear MrAussieFX & Emmanuel,

Pls advise me when you use the pac for H4 & D1 time frame can't you wait till it closed out side the PAC.
MrAussieFX took this trade before it closed out side the PAC & Tdi Green line before crossed the MBL & 50 line.
Is this a Valid setup?

And other thing is when we use Synergy pro APB it is include PAC on that indicator.But when we use 5SMA high & low as a PAC there is a different with Synergy pros APB PAC & 5SMA high & low PAC .What is the most Accurate PAC ?

Also pls advise what is the correct TDi indicator to trade using pac(Synergy pro TDI/Synergy Basic TDI/TDI real time/Tdi Red green)

Thanks,
Helanka
Attached Image (click to enlarge)
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Helanka
  • #37,949
  • May 31, 2014 3:27am May 31, 2014 3:27am
Quoting adikashyap
{quote} You are God Send ... For FX Traders and learners ... This ONE post had educated me so very much .... I remember your post about R and R multiple trading, with a video tutorial and also about position sizing. Unfortunately this thread moves jet like and tough to keep up the pace. Can you please re-post your post on R and R Multiple trading and Position trading? Thanks in advance
post #23,748

cheers.
  • #37,950
  • May 31, 2014 4:10am May 31, 2014 4:10am
Quoting pastecopy
{quote} post #23,748 cheers.
Thanks for your in put, but this is not the one I'm looking for ... Emmanuel sir had posted big post on R multiple trading along with a video teaching ...I'm looking for that ...
  • #37,951
  • May 31, 2014 10:56am May 31, 2014 10:56am
Quoting adikashyap
{quote} Thanks for your in put, but this is not the one I'm looking for ... Emmanuel sir had posted big post on R multiple trading along with a video teaching ...I'm looking for that ...
Here's another one. No video though.
http://www.forexfactory.com/showthre...80#post6828580
(Post # 21984)
  • #37,952
  • May 31, 2014 12:46pm May 31, 2014 12:46pm
Quoting emmanuel7788
{quote} Hi adilkashyap, Here my anwsers to your questions: Q1. How to judge momentum in price in higher TF? Use the RSI which is a momentum indicator. The TDI is based on the RSI data and shows three moving averages of different periods – 2,7 and 34. These 3 moving average which we call the Grenn Price Line PL, the Red Trade Signal Line TSL and the Yellow Market Base Line MBL shows you the short term , mid term and long term momentum. Q2. How to analyse the market sentiment through Candle Sticks? I learn Candlestick and Chart Patterns these from...
Haha, my hearts pounding, blood pressure up and lightheaded after reading above. When I cross some posts I just revisit Eefranz initial post on the Trading Made Simple. Works like Nitro under the tongue. Then I start filling out the bank deposit forms again. Glad I don't have to go back for my Masters. Reading this thread could be hazardous to one's health/wealth.
  • #37,953
  • May 31, 2014 2:26pm May 31, 2014 2:26pm
Quoting adikashyap
{quote} Thanks for your in put, but this is not the one I'm looking for ... Emmanuel sir had posted big post on R multiple trading along with a video teaching ...I'm looking for that ...
Here are the vids:

http://www.forexfactory.com/showthre...77#post6842177
http://www.forexfactory.com/showthre...83#post6842183

Posts 22337 and 22338
  • #37,954
  • May 31, 2014 9:15pm May 31, 2014 9:15pm
Quoting dforant1
{quote} Haha, my hearts pounding, blood pressure up and lightheaded after reading above. When I cross some posts I just revisit Eefranz initial post on the Trading Made Simple. Works like Nitro under the tongue. Then I start filling out the bank deposit forms again. Glad I don't have to go back for my Masters. Reading this thread could be hazardous to one's health/wealth.
IMHO ... No questions are stupid .... Answers are / can / might be .... Questions are The Source for all Knowledge ...
If, I know that something is hazardous to my health / wealth ... I keep a distance from them ... Than being with it and complaining ....
  • #37,955
  • Jun 1, 2014 6:37am Jun 1, 2014 6:37am
EURCAD Week23 and June trading:
This pair and GBPCAD both looks very interesting with their Monthly candle close.
Their wide weekly average trading range makes it a candidate for 4H swing trading.
Let's see how we can grab 100pips off this pair next week. Both counter-trend and following the bearish MN candle close are possible.

Attached File(s)
File Type: pdf EURCAD Week23 and June Big Picture Plan.pdf   403 KB | 662 downloads
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #37,956
  • Jun 1, 2014 6:48am Jun 1, 2014 6:48am
Quoting Helanka
{quote} Dear MrAussieFX & Emmanuel, Pls advise me when you use the pac for H4 & D1 time frame can't you wait till it closed out side the PAC. MrAussieFX took this trade before it closed out side the PAC & Tdi Green line before crossed the MBL & 50 line. Is this a Valid setup? And other thing is when we use Synergy pro APB it is include PAC on that indicator.But when we use 5SMA high & low as a PAC there is a different with Synergy pros APB PAC & 5SMA high & low PAC .What is the most Accurate PAC ? Also pls advise what is the correct TDi indicator...

Helenka:

If you want to use the 5SMA PAC and wait for a setup candle to close outside the PAC, that is the Synergy trading model and that entry is conservative.
In TMS 5-Method, we use the 5EMA shift+3, The setup candle is the candle which change colour and closes either above/below the 5EMA for buy/sell.

If you want to use the Synergy_Pro indicators, then I suggest you follow the rules for that system by Dean Malone. The Synergy_Pro PAC is differently coded and do not show the same as a PAC using 5 Smoothed MA set to high and low prices.
You can use the platform' provided moving average indicator to create the PAC and not necessary that we trade with MT4. The TDI can be created using the Fozzy RSI method.
If you are concern about which is the correct TDI indciator to use, then the best way is to create the TDI using the Fozzy RSI method.


here is eelfranz' post on the correct setup candle:

Quoting eelfranz
We look for a candle to cross the 5 ema and then close (set up candle), When the next candle opens being the same color as the set up candle... we enter the trade... check your TDI for confirmation...


regards,

EMMANUEL
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #37,957
  • Jun 1, 2014 7:29am Jun 1, 2014 7:29am
Quoting emmanuel7788
{quote} Helenka: If you want to use the 5SMA PAC and wait for a setup candle to close outside the PAC, that is the Synergy trading model and that entry is conservative. In TMS 5-Method, we use the 5EMA shift+3, The setup candle is the candle which change colour and closes either above/below the 5EMA for buy/sell. If you want to use the Synergy_Pro indicators, then I suggest you follow the rules for that system by Dean Malone. The Synergy_Pro PAC is differently coded and do not show the same as a PAC using 5 Smoothed MA set to high and low prices....
Thanks Sir


Helanka
Helanka
  • #37,958
  • Jun 1, 2014 9:07am Jun 1, 2014 9:07am
Quoting emmanuel7788
{quote} Helenka: If you want to use the 5SMA PAC and wait for a setup candle to close outside the PAC, that is the Synergy trading model and that entry is conservative. In TMS 5-Method, we use the 5EMA shift+3, The setup candle is the candle which change colour and closes either above/below the 5EMA for buy/sell. If you want to use the Synergy_Pro indicators, then I suggest you follow the rules for that system by Dean Malone. The Synergy_Pro PAC is differently coded and do not show the same as a PAC using 5 Smoothed MA set to high and low prices....
hi, Emmanuel: I just started following this thread for a few days. can you double check for me the setting for the MA? Here you said 5EMA shift +3, but it is not the same as in the template? Also what is this MA applied to? THX for your time!

Shuo
  • #37,959
  • Jun 1, 2014 9:50am Jun 1, 2014 9:50am
Quoting emmanuel7788
EURCAD Week23 and June trading: This pair and GBPCAD both looks very interesting with their Monthly candle close. Their wide weekly average trading range makes it a candidate for 4H swing trading. Let's see how we can grab 100pips off this pair next week. Both counter-trend and following the bearish MN candle close are possible. {image}
Hello Emmanuel,
Thank you for your information
I will follow it up closely tomorrow.
By the way, where are you located actually ????
I'm located in Indonesia.
Thankk you.
veryspecial1
  • #37,960
  • Jun 1, 2014 10:15am Jun 1, 2014 10:15am
took this trade on the daily about 45 mins before Friday close. Thursday closed with a hammer and friday was showing a bearish candle. Took this as confirmation of bearish move with SL just some pips above the high. Comments welcome
Attached Image (click to enlarge)
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the cautious seldom err....C
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