CHOROS System

Nice trade Sagramore. Also thanks for the info.

Yes Sam you re right.. Ga and Gu are great .. The year is very long ... I m sure I ll do the same this year .Guido

I am curious what other dancers thinks about the top 3 dancing pairs?

Ej and Cable still works best IMO..

I may have a problem with overanalysing HTFs. Do you think it is safe enough to keep it simple just to make sure there are no H1, H4, Daily MAs in the way nor any long wicks on those HTF that would indicate S/R on the way to TP before shooting it from M15?

I think I have seen one of the more experienced dancers to post some time ago, that he doesn't pay that much attention to HTFs.

You can answer.the question by your own .. Are you profitable trading the simulator ?There s only one timeframe .. Do your work and try.. My answer is clearly yes ... I use only one Chart .. and scroll op and down from time to tume for a kind if my own analyses when I trade... thats how I do .. Guido

Could someone explain to me how you actually make your entries. I've shaded 3 possible trades on the chart below, but in each instance i'm not sure how you'd handle the timing. the first one is the little red candle next to the green one. assuming that's the one that touches the MA, do you then buy on the next bar and, if so, are you buying on the open or are you moving to a lower TF chart or what? the second trade, same question, but in this case, it looks to me like if you hesitate, you'd enter too late to have a good stop loss spot. third one the same. anyone?

Hello,

First of all you should change your view. It is too flat so it makes it more difficult to spot the right setups and MA steepness (see my attachment). And I also highly recommend to change the layout colours to the ones that are used in the manual - most traders here use it and as a beginner it will be way easier to get a proper eye for the setups.

Some traders here would probably trade your first trade too. I probably wouldn't. The 35/50 MAs are flat at that point, too far away and 10MA is in between - stay out. Additionally there is a major round number just 12 pips below. In this case it just blew straight through it but very often those spots act like a support/resistance and make the price bounce back. I would trade the third candle (pinbar) after that though - looks good with the same round number above it and enough space to the next one.

Second trade was legit. Although it was not really a touch trade - it only looks if it was after the candle closed. However it was a proper price action entry on double top. I would enter myself after that red candle closed - MAs steep although still a bit too far away for my taste. The round number is also close, but it's 16 pips that would allow the trade to develop and tighten your stop loss or put it BE+1 and the round number is small (.000 major RN, .500 small RN) therefore not as strong.

Your third trade I probably wouldn't take - again it only looks as a touch after the candle dropped significantly. While trading real time the price would be 2-3 pips away from the 10MA. Again, its an individual thing - some traders here might take it, but I am a bit conservative and go by the manual - no touch, no trade. Even if it looks like there was a touch after the close - no worries, you will soon get another chance. Like on the 6th candle after that - the green one that retraced to the 10MA, which in confluence with RN gave an excellent 10MA touch entry - with 35/50 very steep and close together and coming closer.

Also, read the dance manual at least a couple of times. Good Luck!

Same here...

Hi guys.
Is the method still profitable?
I remember I was doing great with it and could do 30-60% a month, and then something wrong happened. I've read manual second time, understood what mistakes I was doing with entries (even if they were winners, weren't by proper rules) and then I started losing and I never got back on track again.

Thanks

Speaking of which...

Could have also entered after the 5M pinbar but was still hoping for that 15M 10MA touch. But the price did not touch 10MA (only after the candle closed which doesn't count for me). Was looking for a PA entry afterwards, but the pin bar formed was too long for my SL (usually 15-16, max. 17 incl. spread). Didn't like the DR1 above, but took my chances and jumped in after the price has slightly fallen on the next bar, so the entry was good enough for my SL just below the previous M15 pinbar. Aimed for 27 pips just below the next RN, but got out @23 on hesitation.

Jkdt: thank you vvvvery much for your thoughts. I use think or swim for my charts, so it's going to be difficult to exactly duplicate what you show, though i can change the colors. I do have MT4, I just don't like it as much. But, maybe I should change, just to get on the same page with everyone else. One thing I know I need to do is get the strategy tester up and running so i can see how candles play out in real time.
I still have a question about entering, which I didn't see exactly spelled out in my first reading of the manual. Do you enter *on* the touch, which I kind of doubt, or after the original move continues and, if that, when, exactly?
It seems to me you can't enter on the touch because right then you don't know whether PA is going to keep reversing through the 10ma back up to the other two and/or through all of them. But then you wouldn't enter on the opening of the second bar, because you still don't know how it's going to play out. So then when? Or is this where the art of it all comes into play?
I dunno. This aspect confuses me. Can you shed a little light?
thanks again!

You never know how it's gonna turn out ;-) There are mainly two methods that I use for entries: You either enter exactly at the touch (only LEGIT TOUCH trades per manual) OR you enter based upon price action (primarily pin bars, dojis & double tops/bottoms, sometimes internal bars, personally I avoid engulfing as explained in manual and don't rely on price action itself - still trade of an MA and preferably MA in confluence with pivots or/and RN), WAIT for the price action bar to close and enter immediately ON THE OPENING OF THE NEXT CANDLE.

Sometimes you may mix up: you see the touch, but you are still unsure (higher timeframes not by your taste or 35/50 steep but a bit too far away) so you wait for a confirmation from price action (at the same or lower timeframe - that's tweaking your entry).

Check the attachment - both methods are very clear on it: you could have entered either at the touch, which would be the best case here, but you also could have entered on the next bar after the pin. Pay attention to the 35/50 MAs (steep and close together - repeat it constantly everytime you want to enter a touch trade), and luckily 3 resistance levels above. The more a setup you are looking at is resembling the one from attachment, the higher probability it will go your way (short in this example, but of course long for an up side down setup).

I completely agree with Jkdt - with just my 2 cents to add (for what its worth... haha maybe even less than 2 cents)

I personally use MT4 and my brokers trade platform. I get slightly quicker execution on my brokers software, but it doesn't have as many options as MT4. So, what I tend to do is have both platforms open and use MT4 for its valuable charting capabilities and use my brokers platform for order execution. Sounds kinda complicated, but that's what I like - again that's just my opinion and my preference.

YES - the sooner the better. Start practicing daily, or as often as you can. Even if you dont enter and exit trades but just watch price move with the MAs, you can gain weeks of trading experience in minutes!

If you enter on the touch (that is after you decide it is a GOOD touch) then you can have the smallest stop. This is really valuable, because if you can consistently set stops of say 7-10 pips and can pull profits of 14-20 pips off those trades, you can lose a lot of trades and still be profitable. I'll let you do the math. You will get more confidence as you use the simulator and watch the price dance!

Also, if you want more valuable examples, make sure to read the original dance thread ( http://www.forexfactory.com/showthread.php?t=224697 ) its only 57 pages and has valuable examples - it will answer a lot of questions you will have because others have probably asked them too.

have fun and green pips!

Sam

Hey EurUsd

Welcome back!

I have to say I have done the same as you (but not with 30-60% gains wow!)

As I understand it, the method has been profitable since it was introduced in March 2010 in the original thread. If you can trade the method, I think thats the first step. Next step is knowing when to stay on the sidelines and let the market pass you by (Im still learning this one big time).

Stick with it, a lot of people have made a lot of pips and still are with this method!

Sorry about the double post guys

Thanks Sagramor. And you are completely right about simulator. It does miracles in learning curve.

Trading retracements while going with the trend should work as long as trends exist and market participants cash their profits after the larger moves in those trends - creating retracements for us to jump in and, hopefully, continue with the trend. This method simply exploits this characteristic market behavior. Hence - should work as long as the financial markets exists But that's just my 2 cents.

My favourite type below. Although counter trend on daily and H4 - no HTFs MAs in the way. Didn't like the price in between H1 35/50, but they were flat and far away, the 10MA 1hr looked good, just above the entry and steep. It looked beautiful on M15, yummy 35/50 and additionaly RN resistance. 16 SL and I rode it all the way down to my TP @27 (the move was good for even 85pips for now). 54 pips for the day (though 0 for the 10 days of Feb in total so far, mostly due to not following the rules enough - )

PS> I have actually double checked it and it is 44 pips for the month, which I am very happy with. Still need to be more disciplined though.

<p>[quote=Jkdt;8745473]Thanks Sagramor. And you are completely right about simulator. It does miracles in learning curve. Trading retracements while going with the trend should work as long as trends exist and market participants cash their profits after the larger moves in those trends - creating retra/p>

Wonderful example for a nice trade !
Stay green ..
Guido

thanks, sam. i finally got the sim up and running and what an eye opener it is. one second price is touching an MA, the next, it's like it never happened in the first place and such movements by the MA can effect previous candles as well and with that being the case, how can one ever say a touch has really happened until it's at least two candles in the past?

The MA does not affect the previous bars, just the one that hasn't been closed.

It takes some practice but if you analyse historical charts you will know, that if a medium or long candle that closed below or above the MA looks as if it JUST touched it with NO wick trough it - it means it didn't. For a touch to count it had to go at least 2-3 pips (sometimes more for longer candles) through it while looking at it historically.

Other method is less conservative but I have seen people using it - define a 2 pips channel around an MA (option in MT4, MA properties, Level tab) and allow yourself for entries even if the price isn't touching it, but just reaches that channel. Then, if the price takes off it will create that "artificial" MA touch anyway. But it adds more risk to your position, there will be times price will hit your SL, which normally would leave you 2 pips reserve. Same with TP - may reverse 2 pips away from it, where with a proper touch it would hit it - I hope you know what I mean.

In hindsight, 10EMA touch trades seem to actually touch the MA. But in real time, many times, the MAs are not touched but only dragged along after a retrace is complete. I read somewhere on the thread that a simple fix is to use a trendline to draw a projection of the MA using it's slope prior to the current candle and trade off the touch of this trend line. Is this a valid way to trade touches, or should i wait for actual touch of MA in real-time? Attached is the current GU 15min chart, i entered a sell at the touch of the trendline, but price continued to actually touch 10EMA and before continuing back downwards. I was stopped out for 10 pips...if I'd waited for the MA touch in realtime, i'd be at BE now with floating profit of about 12pips. At times, the trendline works, other times it's too early and u get stopped out. So my question is that what is the accepted convention in touch trades - trade off a projected MA or wait for a touch in real time?