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  • #261
  • Edited 7:48am Jan 20, 2016 7:37am | Edited 7:48am
Quoting TradingGurus
{quote} That's exactly what I meant, though it would be preferable (IMHO of course!) if FxClown could reveal his (I expect you're right) methodology rather than let the rest of us speculate.
I have yet to master a methodolgy for Forex. I make mistakes like most traders but I am always willing and able to learn. My biggest flaw is that I spot winners, enter the trade but chicken out on drawdown and close early. For example. EURAUD last night. I was long from 1.5760 on 1H with MAs in favour. But, saw PA in smaller TF and closed the trade. My target was previous recent high.
Day befor the same happend with US30. I was long around 10pm and within a couple hours I was short. Once again, I did not follow my plan which would have given me at least 250pips. That is where I come unstuck.
Right now, my plan is to wait for an opportunity to reenter long US30 for a target around 16500.
If you are confused by methodology then above babble should make it clear.
None the wiser!
  • #262
  • Edited 8:10am Jan 20, 2016 7:50am | Edited 8:10am
Just a quick note if I may for everyone who is following this right now, FXClown's trade is an excellent one, and pips are pips, but if you look at my Dow 5 min chart, you can see that he entered when the gap between the ma20 Exponential ( blue/red ) and the dotted 100sma coming down from above, was still quite wide. That's fine, but it leaves your position open to a pullback off of the 100sma, exactly as we saw, which is ok if you're leaving your SL open and are prepared to take a loss if it keeps on going, but moving up to BE, as I would have done, would have seen you taken out. As the gap between the two MAs narrows, the break out to the north becomes imminent, but the price can become very volatile at the apex, and so it can be tricky to get a entry.

Great trade though FXClown. Similar move on the Dax which I missed as I was away from my desk.
  • #263
  • Jan 20, 2016 8:10am Jan 20, 2016 8:10am
Quoting TradingGurus
{quote} That's exactly what I meant, though it would be preferable (IMHO of course!) if FxClown could reveal his (I expect you're right) methodology rather than let the rest of us speculate.
Well, that's up to him. And maybe there is less to reveal than you expect. Maybe he's a discretionary trader, using the Bollinger bands for intuition!?
  • #264
  • Jan 20, 2016 8:16am Jan 20, 2016 8:16am
Quoting TradingGurus
{quote} That's exactly what I meant, though it would be preferable (IMHO of course!) if FxClown could reveal his (I expect you're right) methodology rather than let the rest of us speculate.
I think it's asking too much to expect anyone to reveal their strategy in its entirety on an open forum such as this. I have nothing against people posting screenshots and asking for advice about an entry or whatever, although usually, I have to open up my charts to make head or tail of it as I have great difficulty reading anyone's charts but my own.
  • #265
  • Jan 20, 2016 8:23am Jan 20, 2016 8:23am
Quoting medici
{quote} Well, that's up to him. And maybe there is less to reveal than you expect. Maybe he's a discretionary trader, using the Bollinger bands for intuition!?
I recently started reading your posts, and, I must say, I admire your command of the language.
None the wiser!
  • #266
  • Jan 20, 2016 8:27am Jan 20, 2016 8:27am
Hi guys, just wondering if there is a group I can join like on Skype whatsapp or any social media, if not, how about creating one where we can all enjoy fast conversations and trade ideas of course for serious traders only. Thanks all
  • #267
  • Jan 20, 2016 8:33am Jan 20, 2016 8:33am
Quoting TradingGurus
{quote} That's exactly what I meant, though it would be preferable (IMHO of course!) if FxClown could reveal his (I expect you're right) methodology rather than let the rest of us speculate.
Here is a method that can work.
20/50/200. Buy when 20 turns up to cross 50 and vice versa. 200 usually confuses this methodology for me.
Please note I have hit my target on this trade.
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None the wiser!
  • #268
  • Jan 20, 2016 8:42am Jan 20, 2016 8:42am
Quoting Price-beast
Hi guys, just wondering if there is a group I can join like on Skype whatsapp or any social media, if not, how about creating one where we can all enjoy fast conversations and trade ideas of course for serious traders only. Thanks all
I personally wouldn't be interested, but I'v come across lots of traders who have proposed such a thing, so the demand must be out there. Check to see if there's a thread devoted to it here on ff, if not, why don't you start one and see how many takers you get.
  • #269
  • Jan 20, 2016 9:04am Jan 20, 2016 9:04am
Quoting FxClown
{quote} Here is a method that can work. 20/50/200. Buy when 20 turns up to cross 50 and vice versa. 200 usually confuses this methodology for me. Please note I have hit my target on this trade. {image}
Well by looking at the 3 Moving average's on the chart you've posted it reminds me of a book I have read it not long ago it describes a trend strategy with simple rules and I've been testing it for few weeks now it really works if one can obey to the rules, by simply waiting for MA's to align like the following for a down trend; Price is trading below the 20 MA which is below the 50 below the 200 it self. TREND is obviously down hold shorts as long as the 200 holds the price down, the key here is in spotting a trade setup as an entry level(selling high), and for that we use 2 different timeframes say H4 and M15 along with an indicator such as rsi, stochastic, where the higher timeframe trades below the 50 level and away from the oversold area the lower timeframe is showing an overbought sign, that's your entry, the odds are in your favour, chances are high to outcome with a winner, trend is down a short setup is unfolding manage your risk and dont think twice place your trade.Vice versa for an up trend.Trading with the trend keeps you confident that eventually you'll hit your TP level.What do you think guys?
  • #270
  • Jan 20, 2016 9:13am Jan 20, 2016 9:13am
Quoting cat
{quote} I personally wouldn't be interested, but I'v come across lots of traders who have proposed such a thing, so the demand must be out there. Check to see if there's a thread devoted to it here on ff, if not, why don't you start one and see how many takers you get.
Good idea Cat I think I'll go for it, you see it's always nice to deal with supportive fellows as yourself, I am greatfull to have such free space where one can meetup with serious gentlemem's. Cheers
  • #271
  • Jan 20, 2016 9:25am Jan 20, 2016 9:25am
Quoting Price-beast
{quote} Good idea Cat I think I'll go for it, you see it's always nice to deal with supportive fellows as yourself, I am greatfull to have such free space where one can meetup with serious gentlemem's. Cheers
Oh I am a very supportive fellow, and sometimes even a gentleman. Good luck with your skype thread!
  • #272
  • Edited 12:25pm Jan 20, 2016 10:48am | Edited 12:25pm
Quoting cat
{quote} I think it's asking too much to expect anyone to reveal their strategy in its entirety on an open forum such as this.
Agreed, and, while satisfying some curiosity, it may not necessarily be beneficial to others. One needs to learn to develop one's own methods. How are you otherwise to cope with changing markets, or trading different markets requiring different methods?

So if we here discuss the general principles of putting a strategy together, with everyone sharing whatever they think might be helpful, then that might be the best help for aspiring traders.
  • #273
  • Jan 20, 2016 10:52am Jan 20, 2016 10:52am
Quoting FxClown
{quote} I recently started reading your posts, and, I must say, I admire your command of the language.
Aw, thank you Compliment appreciated. And thank you for sharing here. M akes for good discussion. And congratualtions on some excellent trades lately

How's it going with the stop entries?
  • #274
  • Jan 20, 2016 11:02am Jan 20, 2016 11:02am
Quoting cat
Here's a great example of the sort of candle I look for to pull the trigger - a perfect shooting Star. This is this morning's Dax 30, London open. The price had already been falling, and all the charts were showing that we were going to go down, an observation I posted prior to this move. What London will normally do is take it back to a level where a good, safe entry can be obtained. This rose sharply at the open to just above my 2 min 200ema, and then left this candle. Blink, and you'd have missed it, and though there were other opportunities...
Hi Cat,

I sent you a message as I'm new to the trading game, but how do you decide where you place your resistance lines when watching the candles. I.e when it's going to bounce back up or plummet down?
RKBR
  • #275
  • Edited 11:17am Jan 20, 2016 11:07am | Edited 11:17am
Quoting FxClown
{quote} Here is a method that can work. 20/50/200. Buy when 20 turns up to cross 50 and vice versa. 200 usually confuses this methodology for me. Please note I have hit my target on this trade. {image}
I like that. Two moving averages should be sufficient for a strategy. Then one may wonder about the exact rules, if only to know when one is breaking them

And the MA that doesn't contribute anything but context I don't like either. Better put on a different chart, methinks.
  • #276
  • Jan 20, 2016 11:11am Jan 20, 2016 11:11am
Quoting Price-beast
{quote} Trading with the trend keeps you confident that eventually you'll hit your TP level.What do you think guys?
Agreed. Once in a winning trade it's easy, but if you enter on pullbacks it is equally easy to be whipsawed to bits, so one needs to pick one's entries carefully.
  • #277
  • Edited 12:36pm Jan 20, 2016 12:06pm | Edited 12:36pm
Quoting Rob050395
{quote} Hi Cat, I sent you a message as I'm new to the trading game, but how do you decide where you place your resistance lines when watching the candles. I.e when it's going to bounce back up or plummet down?
That's the 64 million dollar question. Knowing where Support and Resistance are likely to come in is perhaps the most important part of trading. Personally, I use several different what I consider to be key time frames, eg, 1m, 3m, 5m, 10m, 15m, 30m, H1, and I enter trades on even smaller, 10 or 20 seconds. Now admittedly, this would baffle many people who trade off of just one or two screens, but I have become comfortable with this over the years, and it enables me to monitor the full picture all the time. As far as Support and resistance goes ( S&R) I look to see where the main moving averages are on my time frames, where these are in relation to round numbers, fibonacci and trend line levels, and I look to see how the price reacts when it hits these key S&R levels.

The Dax 30 DFB yesterday and today provide very good examples of this. Yesterday morning the price moved up against the trend in the morning session and then stopped on the hourly falling 100SMA, moving sideways until it fell in the afternoon, a classic example of the price moving away from an important moving average to rejoin the trend, easily the safest, highest probability trade you can have in this business. Today was very similar, the price rising in the morning, and falling away again in the pm session, on the Dow from the 5m 200ema which lay just beneath the nice round number of 15,800, and on the Dax from just below the 10m 200ema which had the S1 pivot point right on top of it and a nice round number at 9,500. Of course you can never know for sure where the price is going to find S&R, but if you learn to think with the crowd rather than independently, asking yourself not where you think it;s going to go, but where everybody else in the trade is likely to want to take it, because price seldom does an about turn in the middle of nowhere, it always aims for a key level. Working out where that level is likely to be is vital for trading success, in my opinion at least.

Of course, there's lots more, but like anything else, it does all start to drop into place given time and much hard work, which is not to say it's ever easy, but it becomes manageable.

ps - one more piece of advice concerning moves AGAINST the trend. These are more difficult and result in the greatest number of losses for most people, but they can be traded and should not in my opinion be avoided. How to trade them? Get a moving average, whichever one is up to you, which you back test to show that when it gets beneath or above the price, the price is more than likely to move away from it towards an area of main S&R, because price will always move back towards the big moving averages ( 100,200 ), so you can trade the price up or down against the trend, and then you can switch direction and go with the trend. Simple I know, but fundamentally correct. Goodnight.
  • #278
  • Jan 20, 2016 12:38pm Jan 20, 2016 12:38pm
Quoting Rob050395
{quote} Hi Cat, I sent you a message as I'm new to the trading game, but how do you decide where you place your resistance lines when watching the candles. I.e when it's going to bounce back up or plummet down?
If I may add something to it, there's an old thread with plenty of information on S/R trading. See http://www.forexfactory.com/showthread.php?t=86429

Also, I believe that betting on levels is a tough game, and you need a lot of experience to do it profitably. And even then I find it much easier and more profitable to use moving averages as dynamic S/R levels. Then for reversals around levels, add some measure of momentum, and let momentum turn, then enter as your dynamic S/R no longer holds in the direction of the trend. For example.
  • #279
  • Jan 20, 2016 1:19pm Jan 20, 2016 1:19pm
Quoting Rob050395
{quote} Hi Cat, I sent you a message as I'm new to the trading game, but how do you decide where you place your resistance lines when watching the candles. I.e when it's going to bounce back up or plummet down?
Why not just use some basic (very basic) horizontal lines and confluence them with trend lines?

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  • #280
  • Jan 20, 2016 3:50pm Jan 20, 2016 3:50pm
I'd like to share this with you guys - this song it is from the year when I first started learning about the markets, and the lyrics as I pounded away on my treadmill in the evenings gave me real strength during a difficult time. My business had failed, I had a mortgage and a family to support, very little money and a job driving a van all hours of the day and night. When I wasn't working or sleeping, I was studying the charts - it became my life, my obsession, and friends and family thought that I'd totally lost it, that I would ruin my life by gambling the financial markets, and though I went through some really tough times, I never stopped believing that it was something I could do. Gradually, I began to piece it all together enough to know what I was doing. I'm not there yet, but I have turned the corner, and people who once saw me as a gambler and a dreamer, even those close to me, now understand that what I was doing was worthwhile.

So if you, like I was, are on a journey no one seems to understand except yourself, be strong, believe in yourself, and if trading really is something that you want to do, don't give up and give it the best that you possibly can because the rewards will be there for you.

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