5 PIPS - Only Five | Page 42 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Demo contest only - 20 pips TP and 20 pips stop - Any TF 54 replies

My Fix Plan: SL 20 pips & TP 5 pips 4 replies

Flappy Pips - How to keep your hard earn PIPS 7 replies

I lose 40 pips and win 6 to 10 pips... 17 replies

spread on GBP/JPY @ alpari is 12 pips intead of 7 pips they claimed to be 6 replies

Attachments: 5 PIPS - Only Five
Exit Attachments

5 PIPS - Only Five

  • #821
  • Edited 4:11pm Nov 14, 2014 3:39pm | Edited 4:11pm
Gotta love this site...

...as I said before...., I don't use the OP's methods and target more than 5 pips a trade but I have followed this thread since the beginning because I know the power of a moving average combined with something solid and like seeing how others are using them. They should never be dismissed.

Anyway the point is, I know about the use of divergence in trading but never employed it with any of my methods. I like to keep the charts as clean as possible and could care less about adding a lagging indicator to pick out divergence. However, you sparked interest in commenting several times in how newbies should and will learn to spot divergence by eye using just price. I'm no newbie and said to myself, what the heck is this person talking about.

So I'm looking and looking, comparing charts posted with the divergence indi and had a "There Ya Go" moment. If it had teeth I'd be in trouble. I get it now. Just goes to show ya, you can....., teach an old dog, an old/new trick. Glad I followed the thread. Might be useful in my method of trading.

Thanks for making that point...


Quoting dee50
{quote} Thanks for posting the DIVERGENCE indicator, should help some of those identify divergence and start training their eyes to recognize it so eventually they will not need an indicator to do the job.
SPC * Swollen PocketZ Crew!
  • #822
  • Nov 14, 2014 3:51pm Nov 14, 2014 3:51pm
Quoting srmiller82
nice trades dee, on the divergence note, rsi,macd, roc, these indicators take out the choppiness of the pair so its slower to react, when the price makes a sharp move in the opposite direction of the trend this will create divergence because the rsi or whatever indicator you use will still be showing the trend. any kind of 1,2,3, v bottoms things like this will show divergence immediately very easy to spot could be possible trend change maybe not but its usually good enough for a few pips, unless of course there is news...
Sorry if I am labouring the point I have already made, but aren't we overcomplicating things bit here? The principle of the thread is Price Action based, with the little and often methodology added in. Price action is very simple, it doesn't need loads of indies. The forex industry is a market, plain and simple, subject to the simple forces of supply and demand. Use PA to identify a short term move take 5 pips-close-move on.
I can't see why so many fellow traders are not getting on board with the simplicity of the OP concept?
Getting there, slowly but surely...
  • #823
  • Nov 14, 2014 4:46pm Nov 14, 2014 4:46pm
Trading isn't a sport my friend. Well, not really. If I were to ever compare it to a sport I suppose it would be hunting. We have to be patient and let the market come to us it always does.
  • #824
  • Nov 14, 2014 10:03pm Nov 14, 2014 10:03pm
I happened to learn the similarity of 5-period EMA with 2-period shift to Adaptive Laguerre Filter with default settings, which was devised under the same philosophy in screening out market noise as what the author of Heikin-Ashi (average candles or feet in Japanese) intended one hundred years ago. If interested, obtain it by googling ALF.mq4. The usage of trend filers is straightforward, i.e., buy if it goes up; sell if it goes down. Thus, you are no longer required to warily monitor RSI nor longer-term moving averages. Simple enough, isn't it?
  • #825
  • Nov 15, 2014 2:26am Nov 15, 2014 2:26am
Regarding divergence and others I'd like share opinion.

Usually, divergence is a stand-alone strategy, means some traders use just this method to trade. I know couple who use divergence only.

It's up to individual taste and personality.

However, I must say in an attempt to simplify trading process at least mentally many indicators (from my own experience I have tried tons of them) overload us. When you utilize multiple indicators you naturally have to follow them, check them and even make sure all of them have agreement. it's cumbersome

as for divergence- I would recommend to those who like to use, check only major divergences (on bigger tf and on on major trends only)..but not all those small ones spotted every one hour or even on M15 timeframe..One literally can go crazy))) Cause on small timeframes no need to spot divergences - their consequence will be indicated by HA anyways. HA takes care of them.
always draw trendlines
  • #826
  • Edited 7:00am Nov 15, 2014 6:45am | Edited 7:00am
Quoting JoeNY
Gotta love this site... ...as I said before...., I don't use the OP's methods and target more than 5 pips a trade but I have followed this thread since the beginning because I know the power of a moving average combined with something solid and like seeing how others are using them. They should never be dismissed. Anyway the point is, I know about the use of divergence in trading but never employed it with any of my methods. I like to keep the charts as clean as possible and could care less about adding a lagging indicator to pick out divergence....
Glad to be of help. BTW. Divergence is a "Leading Indicator" it is actually signalling what is likely to happen next. The other "Leading Indicator" is Price Action. (this was more for the benefit of others as you already know it) Where as Moving Averages have long been known, and have been proven to be, the most Lagging, Least reliable indicator you can use for taking a trade. But in my experience, what actually matters is how you use them.

Thanks again for the FXViper thingy. I have been exploring the information on "my FX Book" and there are some really good features in there. I am in the process of analysing one of the other FXViper accounts and I will present my findings here, actually on reflection I think I will start a separate thread for it because what it will show is that some of the trading myths are exactly that.
Cut your Losers short and let your Winners run.
  • #827
  • Nov 15, 2014 8:39am Nov 15, 2014 8:39am
why cannt you all traders take what the market is giving you. the market isnot giving you 5 pips.its giving you hundreds of pips.SWING TRADE ad capture all those pips
  • #828
  • Nov 15, 2014 9:35am Nov 15, 2014 9:35am
There should be a 4th caricature but I am no good at drawing.
Attached Image (click to enlarge)
Click to Enlarge Name: the evolution of blind following.jpg Size: 70 KB
Cut your Losers short and let your Winners run.
  • #829
  • Nov 15, 2014 9:38am Nov 15, 2014 9:38am
,
Attached Image
Attached Image
Cut your Losers short and let your Winners run.
  • #830
  • Nov 15, 2014 12:54pm Nov 15, 2014 12:54pm
What would be a good Christmas gift for a retail trader?
  • #831
  • Nov 15, 2014 1:02pm Nov 15, 2014 1:02pm
Quoting Moonie
What would be a good Christmas gift for a retail trader?

a positive account balance?
  • #832
  • Nov 15, 2014 1:52pm Nov 15, 2014 1:52pm
for Christmas they can be all yours..

http://img.ie/images/zqa7o.jpg
always draw trendlines
  • #833
  • Nov 15, 2014 2:16pm Nov 15, 2014 2:16pm
Weekend Fun..

For those who overtrade!!

Inserted Video
always draw trendlines
  • #834
  • Nov 15, 2014 3:15pm Nov 15, 2014 3:15pm
Quoting tk5
for Christmas they can be all yours.. {image}
Mmm, yes please....
  • #835
  • Nov 15, 2014 9:32pm Nov 15, 2014 9:32pm
Quoting tk5
Forex is about making five pips in an hour... We have been abusing ourselves with reading, seeking and doing all that crap to make money from FX. We are all fools. Do you indeed need indicators, algos, malgos, zalgos I don't know codings modings to make 5 damn pips??? You need very basic forex skills...yes, basic skill to earn 5 pips and move out immediately! 5 pips is just simple and shortest movement of a God damned candle my friends. Yes it's. And can't we really locate that movement during an hour?! We all can and we will!. And if you think...
how much drawdown do you have to endure to get 5 pips for every trade
  • #836
  • Nov 16, 2014 5:14am Nov 16, 2014 5:14am
Quoting tk5
Weekend Fun.. For those who overtrade!! http://www.youtube.com/watch?v=t5yQNpgeR8E
Hi tk,

hope you don't mind me posting the enclosed PDF (if you think it does not fit in with your agenda please let me know and I can remove the post, not a problem). I thought it might support your strategy and efforts here.

I knocked this PDF together this morning. There are two parts, although I feel there is more than enough in part one. Originally from a Word document I made a few years ago while I was following a thread based on price action trading. Helped me a lot at the time - hope it can help someone here. I'll not make any further comment about it. It is quite a long read but very solid and has a lot to offer. I felt the basic concept is similar to what tk is trying to project here. Thanks tk.

Have fun.
Attached File(s)
File Type: pdf Day-Trading_2.0[1] JJRVAT.pdf   4.7 MB | 1,708 downloads
  • #837
  • Nov 16, 2014 7:45am Nov 16, 2014 7:45am
Quoting forextarget
{quote} how much drawdown do you have to endure to get 5 pips for every trade
It all depends on the spread of the currency and how close you pick the entry (your skill or luck however you see it). I have fiddled with it and even though I don't have the MA with a shift and Im not using an ecn (spreads on AJ 2-2.5 and GJ 3-3.5 my highest drawdown was 7 pips on a GJ and 6 on an AJ), as long as I don't count the one trade I made using an AJ chart while hitting the button for GJ , GJ hadn't bottomed out and lets just say the entry wasn't even close, never trade blind had to hold that one 3 candles to get out even.
  • #838
  • Nov 16, 2014 2:18pm Nov 16, 2014 2:18pm
I agree about the original idea of the 5 pips. Solid and dependable.
  • #839
  • Nov 16, 2014 8:25pm Nov 16, 2014 8:25pm
Quoting tk5
{quote} Have been in 1:500 since thr beggining. I am still alive:-) :-) thats a myth Ferru beleive me. High leverage is a golden opportunity to use small amount to do biger things. All is aked from you is to use ecn account and open lots reasonably, as per the size of your balance..
I guess I somewhat agree with this statement......
  • #840
  • Nov 16, 2014 8:28pm Nov 16, 2014 8:28pm
Quoting tk5
you guys are being too pessimistic...note that i have been trading quite long time and on real account. this way. If you are too naive to locate 5 pips movememt during an hour (!) then you have no moral right to be a trader. What I offer is rather a mindset, a tactic...and a plan which creates discipline.
I also agree with this statement too...........
1 trader viewing now