When Price is UP, buy; when Price is Down, sell short... | Page 26 | Forex Factory

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When Price is UP, buy; when Price is Down, sell short...

  • #501
  • Dec 9, 2015 12:08am Dec 9, 2015 12:08am
Quoting nobacot88
Hello sunshine, Im interested with your trading method, and im applying it to my trade.. Im looking for your guidance, here i provide some screenshots of my trade today. Shorting GBPUSD. See if u can help me to understand your method more.. 1. Monthly chart down trend, last bar is down, then look for short signal in daily chart.. I decided to short when it breaks the LSL ( CMIIW ), Question : Am im doing the right trade according to your method? 2. Please give me advice about my SL, is it true that i put it there? 3. When to quit the trade? Nb...
hello nabocot88,

yes u are doing the right thing
but i will explain more and make clear below, if not clear to u then please ask again, thank you.

Question 1:
Monthly chart down trend, last bar is down,...correct
... then look for short signal in daily chart...correct...
I decided to short when it breaks the LSL...correct, more correct to say...to wait until the monthly closes below the LSL.
...or
u can short as soon as the month finished formed its red candle, no need to wait for the Monthly price to close below its LSL.
...got it ? so a Red or Down Monthly close tells us to go to Daily and look for shorts there...got it ?

Question 2:
Am im doing the right trade according to your method?
Yes, u are doing the right thing.
( what is CMIIW ? )

Question 3.
Please give me advice about my SL, is it true that i put it there?
Yes, correct.
or,
u may place the SL a few pips above the Daily high but i have since scrapped that because in Daily the distance is quite far above so i reason that if price goes all the way right up to its Daily open then the trade is not worth it. so now i recommend to place SL at Dly Open of the 1st red bar.

Question 4:
When to quit the trade? Nb : Please just give me any advice or comment, about my SL or TP or anything, im looking to understand your method more
...our Method is a Trend Following Method that means we let our trades ride to to catch the most pips possible with the most entries, but now i have decided to introduce a regular profit taking or PT into our strategy...that will make us feel good and also it will steadily rise our equity curve.
...this is what i mean:
new PT strategy;

  1. if distance from SL to entry is 50 pips then we enter 50 pips as our PT into our open trades, ok ?
  2. if distance from SL to entry is 100 pips then we enter 100 pips as our PT into our open trades, and so on.
  3. if our PT was 100 pips but price moved only 70 pips in our favour then we move our SL to breakeven plus the spread. so whatever happens now, we are protected against a loss.

​How to enter if we are looking at a M+Dly combination ???

  1. M closed down, go to Dly and enter short after 1st down Dly bar completes, and/or
  2. enter when price violates or breaks the low of 1st Dly down bar. no need to close below it.
  3. we enter our Stop Loss every time at the Daily Open of the Signal bar.\
  4. the same thing we can do when trading off the Wkly+4hr combo.

  • #502
  • Dec 9, 2015 12:11am Dec 9, 2015 12:11am
red news later in the evening for NZD
  • #503
  • Dec 9, 2015 12:33am Dec 9, 2015 12:33am
last night i entered 2 buy Stop orders on the EURUSD in the 4hr tf and 1 in the Dly tf. both entered with SL and PT.
i took a screen shot at that time to illustrate what i mean.

remember 2 or 3 pages back where i quoted Newtons Law of Inertia, i prefer to call it Law of Motion for trading purposes ?
...it just basically means that if price moved up yesterday then we can expect a continuation of that same move today, meaning if yestrday closed up then enter a buy now.
...what i did with the BuyStop was to double the spread plus 1 pip and entered that as the price at which i wish to enter a buy.
the 4hr buystop expired because it was only valid for one 4hr so no entry occurred there. the Daily buystop did trigger.

examples:
...if spread is 1 pip then 1+1 to double it +1 more =3 pips now add this 3 pips to the High price of yesterday and enter it into your Buy Stop order as your entry price.
...is spread is 2.3 then bring to the next higher round number which is 3...now double it...3+3 = 6 now add 1 more pip = 6+1=7 pips
...or, 3.2 or 3.4 or 3.6... round it off to next higher number which in this case will be 4...now do as normal...4+4+1=9 pips. is it understood ?
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD 4hr+Dly BuyStops wit PT wed 09Dec.png Size: 25 KB
  • #504
  • Dec 9, 2015 12:47am Dec 9, 2015 12:47am
Quoting sunnyfarm
just a matter of interest. Are you Guys trading mostly DEMO Accounts or are you LIVE Traders? I noticed that most Accounts are in 0.01 Pips. Furthermore I noticed that a number of Traders are trading a few Pairs? I am only trading one or at best two Pairs. Any comment? Fred
live Fred. that is why that is one reason why the trade size is so small.
if u go a few pages back u will notice that Bendz is alo trading live...u will notice it on his screenshot of the very first charts he posted.
a few post before that u will find where i mention to reduce your lot size to where u can sleep at night even when u know a retracement is happening.
i don't know if nabocot88 is live or demo.

we enter multiple trades on some of the most volatile pairs...usually from one to 4 pairs at a time.
i advise for new traders and wounded and fearful old traders to focus on one pair at a time and just trade that 1 pair by stacking and pyramiding.
...now we also going to use a profit target (PT) in most of our trades.

and you Fred ? u trading live too ?

i have several small accounts with different brokers to spread my risk a but.
  • #505
  • Dec 9, 2015 1:02am Dec 9, 2015 1:02am
Hello again Sunshine, and thanks for your fast response..
Question 1:
u can short as soon as the month finished formed its red candle, no need to wait for the Monthly price to close below its LSL.
...got it ? so a Red or Down Monthly close tells us to go to Daily and look for shorts there...got it ?
Okay seems like i got it, haha.. But if we wait for monthly bar to closes its candle, will we be abit late ? And for your information, im not really fluent using MT4, and i cant determine when the daily/weekly/monthly bar starts from my local time, do you have any indicator that makes my local time = server time ? If u got one please share
Question 2:
( what is CMIIW ? )
It means Correct Me If Im Wrong..
I am newbie, my cup is empty, feel free to pour any drinks. hahhaa

And big thanks for your explanation about SL and TP, im still learning it, I will ask again if there is i dont understand..
Waiting for your next instruction , Sunshine

Regards..
  • #506
  • Dec 9, 2015 1:03am Dec 9, 2015 1:03am
Hi Sunshine,

yes, I am a Live Trader. I trade mainly AUD/USD and EUR/USD. My Trades are large and only a few Pips. Usually 5-10 Pips. Keep my trading very simple. I do not use any Indicators. I am a Scalper and have concentrated over the years trading the 8/8th Harmonic and using as you have seen Angles. Took me years to work this out successfully. I spend probably 4 Hours a Day on the computer. Trading mostly London and New York. In some cases Asian Markets.
Best to all,

Fred
  • #507
  • Dec 9, 2015 1:21am Dec 9, 2015 1:21am
My trade is live also guys..
  • #508
  • Dec 9, 2015 1:51am Dec 9, 2015 1:51am
Quoting sunshine
{quote} hi Bendz, u're doing just fine if u are more comfortable taking sells only then leave the buy trades. we don't need more stress in our lives. ok. now is a good time to introduce a Profit Target (PT) into some of our trades, i will address the PT and SL in my post to trader nabocot88 since he asked about it. again, well done !...if u feel like taking profits on some of your trades then by all means do so, they're yours and it makes one feel good.
Hi sunshine,

Thanks. I'm easy with sell trades. I can take 1 or 2 trades in buy for learning purpose. I'm learning here and want to learn SL & TP also

Bendz
  • #509
  • Dec 9, 2015 1:57am Dec 9, 2015 1:57am
just a reminder for all of you, especially for NEWBY. Tomorrow Thursday the 10th, FOMC (Yellan) will let us know what the Board will do in relation to Interest. Up or not up? My understanding of these moments are that I prefer not to be in involved trading. Usually large Spreads and if the Market gets completely mad, your Margin suddenly jumps up. Also, if you do not know what you are doing, you might catch a nasty SPIKE. Some people are real smart. Place a BUY and Sell Order OCO. Now that is something you should avoid in any case.

Good Luck

Fred
  • #510
  • Dec 9, 2015 2:02am Dec 9, 2015 2:02am
sorry Guys, wrong Dates, the Date is the 17th not the 10th. However, advise is still valid.

Fred
  • #511
  • Dec 9, 2015 2:14am Dec 9, 2015 2:14am
Hello Sunshine, im here again to ask a question..
Still related to my previous trade, about SL..
Here i provide screenshot, to make it clear..
Did u mean to put it there ? ( orange line )


Regards..
Attached Image (click to enlarge)
Click to Enlarge Name: Image1.png Size: 115 KB
  • #512
  • Dec 9, 2015 5:14am Dec 9, 2015 5:14am
Quoting sunshine
last night i entered 2 buy Stop orders on the EURUSD in the 4hr tf and 1 in the Dly tf. both entered with SL and PT. i took a screen shot at that time to illustrate what i mean. remember 2 or 3 pages back where i quoted Newtons Law of Inertia, i prefer to call it Law of Motion for trading purposes ? ...it just basically means that if price moved up yesterday then we can expect a continuation of that same move today, meaning if yestrday closed up then enter a buy now. ...what i did with the BuyStop was to double the spread plus 1 pip and entered...
Hi sunshine,

I think it's easy for me But I'm taking minimum orders in buy not so fast like in Sell
Thanks.
  • #513
  • Dec 9, 2015 6:19am Dec 9, 2015 6:19am
Quoting nobacot88
Hello Sunshine, im here again to ask a question.. Still related to my previous trade, about SL.. Here i provide screenshot, to make it clear.. Did u mean to put it there ? ( orange line ) Regards.. {image}
nabocot88

i am answering u first because your question is more urgent.

No, not there... where u placed your original SL is the right place.

if u place your SL at that orange line of yours, u will be stopped out in very quickly.
  • #514
  • Dec 9, 2015 6:27am Dec 9, 2015 6:27am
Quoting sunshine
{quote} nabocot88 i am answering u first because your question is more urgent. No, not there... where u placed your original SL is the right place. if u place your SL at that orange line of yours, u will be stopped out in very quickly.
Okay thanks Sunshine, im getting to understand more here.. keep it up..

Regards....
  • #515
  • Edited 12:26pm Dec 9, 2015 11:39am | Edited 12:26pm
Hello..
Here is a screenshot of XAUUSD daily line chart, Monthly chart = Down trend, daily is down too, and im waiting to short, please tell me if i can make a trade according to your method Sunshine.. Or any suggestion?

Big Big thanks..
Regards...

Edit : i forgot to watch the daily candle chart, i should wait for another daily candle which is down to confirm the short signal, right?
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Image1.jpeg Size: 283 KB
Click to Enlarge Name: Image1.png Size: 64 KB
  • #516
  • Dec 10, 2015 12:08am Dec 10, 2015 12:08am
Quoting Bendz
{quote} Hi nobacot88, One small horizontal line is daily open. The other two are moving averages 5 EMA & 10 EMA. Actually my SL hits a lot of time. Sunshine recommends more space for my trades, because Yet I can't identify the trend and entry properly Please visit this post in this thread, http://www.forexfactory.com/showthre...69#post8266969, sunshine attached this (daily open line) indicator. Regards, Bendz
don't believe him nabocot....he is just being shy and being shy or coy is a trait of modesty.

...one more thing traders, please don't get sidetracked by little lines showing the Daily open of the main markets. i used to have them on my charts then i found that they became a hindrance and obstacle and a distraction in my trading focus, so i removed them all... i recommend u do the same.

the only time when it could be helpful is when one actively trades a Market Open strategy, such as the Asian Open or (LO) London Open or (NYO) New York Open, so if u don't trade a market open strategy then please avoid distractions,
...that includes any mathematical derived indicators that will clutter up your trading chart and reduce your your visibility.
  • #517
  • Dec 10, 2015 12:35am Dec 10, 2015 12:35am
Quoting sunshine
{quote} don't believe him nabocot....he is just being shy and being shy or coy is a trait of modesty. ...one more thing traders, please don't get sidetracked by little lines showing the Daily open of the main markets. i used to have them on my charts then i found that they became a hindrance and obstacle and a distraction in my trading focus, so i removed them all... i recommend u do the same. the only time when...
Yeah Sunshine, he is a kind person, and you too.. Im happy coz besides of making money, we are making friends too.. Just to remind, you skipped my question at post #505, about adjusting my local time wirh server time... Regards..
  • #518
  • Dec 10, 2015 12:38am Dec 10, 2015 12:38am
Quoting sunnyfarm
Hi Sunshine, yes, I am a Live Trader. I trade mainly AUD/USD and EUR/USD. My Trades are large and only a few Pips. Usually 5-10 Pips. Keep my trading very simple. I do not use any Indicators. I am a Scalper and have concentrated over the years trading the 8/8th Harmonic and using as you have seen Angles. Took me years to work this out successfully. I spend probably 4 Hours a Day on the computer. Trading mostly London and New York. In some cases Asian Markets. Best to all, Fred
hi sunnyfarm ,

good going, congratulations !

yes i do the same, i keep trading simple as you can see from my charts.

we also do the same sometimes in trading only 1 or 2 pairs but bcz our trade size is minimum, we load it with entries
...but not just entry for the sake of pyramiding, every entry must be justified by an entry signal, either in Dly or 4hrs from where our main entry signals come OR in the lower intraday tf's once trend is established and confirmed in the 4hrs or Dly.

...any or all surviving trades tells me loudly and clearly that i got the trend direction correct, so from then on i just stack, keep on adding and bringing SL down to break even plus. if i sense that the trend may be changing in the Wkly then i will close all or most of the trades.

...but i have made a small adjustment to the trend concept in that at least 1 trade taken in Dly and at least 1 trade taken in 4hrs will have a PT entered.
...i find that taking regular profits while leaving other trades to ride the trend brings joy the heart.

sunnyfarm i have no idea what u talking about 8/8th Harmonics and Angles. but it is obviously working for u so i wish u continued success.

EDIT: another trader and contributor here are also trading live or real, he is duderoo.i forgot to mention him in my other post to u.
  • #519
  • Dec 10, 2015 1:15am Dec 10, 2015 1:15am
Quoting sunshine
{quote} don't believe him nabocot....he is just being shy and being shy or coy is a trait of modesty. ...one more thing traders, please don't get sidetracked by little lines showing the Daily open of the main markets. i used to have them on my charts then i found that they became a hindrance and obstacle and a distraction in my trading focus, so i removed them all... i recommend u do the same. the only time when it could be helpful is when one actively trades a Market Open strategy, such as the Asian Open or (LO) London Open or (NYO) New York...
Hi sunshine,

Maximum orders closed with SL and BE hit. The minimum lot size helps me a lot this time.

Current position:
euraud - only one position

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 24 KB


eurusd - multiple positions

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot3.png Size: 25 KB


gbpcad - multiple positions

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot5.png Size: 26 KB


All other positions are closed

Waiting for new entry
Bendz
  • #520
  • Dec 10, 2015 1:57am Dec 10, 2015 1:57am
Quoting nobacot88
Hello again Sunshine, and thanks for your fast response.. Question 1: u can short as soon as the month finished formed its red candle, no need to wait for the Monthly price to close below its LSL. ...got it ? so a Red or Down Monthly close tells us to go to Daily and look for shorts there...got it ? Okay seems like i got it, haha.. But if we wait for monthly bar to closes its candle, will we be abit late ? And for your information, im not really fluent using MT4, and i cant determine when the daily/weekly/monthly bar starts from my local time, do...
hi nabocot
u welcome.

and no, we are never late if we wait for the monthly bar to close.

i see many traders say that the Monthly is too slow... ! they say one cannot trade off of the Mthly, well i don't worry about their believes and opinions because if they believe that then it is actually true for them.
in other words, if someone tells u it cannot be done...then what is he really saying ?
he is really saying that he does not know how to do that ! so don't stress, don't take it personal because it has got nothing to do with u and everything with him.

Me ? i just go ahead and trade the Mthly anyway.

...so how do i do it ? u may ask. (at this point a re-read of the basics of Line charting should be helpful, start at the 1st page)
stay with me and i will make clear, please consider this as your homework and research, humour me and just do...try and prove me wrong...!

lets say the last month of November closed down

  1. u will see that the Dly Line Chart gave us ample and lots of warning long before the month closed down
  2. how does the Dly chart give an early warning signal ? switch to Line format in the Dly now look for a break and a close below the LSH.
  3. that is the early warning signal.
  4. what does it mean and how does one trade that signal ? we trade the Dly only short from then onwards.
  5. this may happen early in the month or later in the month...
  6. please checkout the EURUSD Dly in LINE format...can u see the long +400 pip day closed above its LSH... this means trade the Dly from then onwards long only until such time that we get an opposite reversal signal. t
  7. the 1st buy signal appeared in DLY...see the green X ? that is exactly what i did. for confirmation scroll up and u will see my entry chart and trade.

​Traders i don't know if what i just wrote makes sense, it took me a long time to write this small piece of what i believe is vital important information in understanding the relationship and interaction between the larger timeframes and the smaller timeframes. i do hope it is of value to at least one person, even if it means on how not to trade.
​

Attached Image (click to enlarge)
Click to Enlarge Name: M+D relationship EURUSD thurs 10Dec2015.png Size: 31 KB
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