Quick chart of potential opportunity taking place AUZNZD 4h
Rhythm - Pullback to 21ema, move to round number
Happy Trading
Rhythm - Pullback to 21ema, move to round number
Happy Trading
4 Hour Strategy (MACD)
- #29,943
- Nov 15, 2016 10:31am Nov 15, 2016 10:31am
Audchf current position
Here is a trade I am in now, may still be a chance to get involved again on this pullback
Remember, there's no guarantees in forex, this is just a trade I personally have on which helps to show the rhythm
21ema - move to round number
Happy Trading
Here is a trade I am in now, may still be a chance to get involved again on this pullback
Remember, there's no guarantees in forex, this is just a trade I personally have on which helps to show the rhythm
21ema - move to round number
Happy Trading
{quote} Hey all, Nice to see you keeping the thread going nausting
I know that Phillip has given all here already...I do not really think that there is any new thing here...we are just doing the same thing in our own unique ways...and I think that uniqueness come with good screen time and experience...and it is not that easy to impact that to another trader...so as we share our unique abilities here, one has to really go home and work it out to see how it will work...
Happy trading to everyone.
Regards,
naustingfx
- #29,945
- Nov 16, 2016 2:38am Nov 16, 2016 2:38am
{quote} It is nice you are here again to keep the forum warm...welcome back! I know that Phillip has given all here already...I do not really think that there is any new thing here...we are just doing the same thing in our own unique ways...and I think that uniqueness come with good screen time and experience...and it is not that easy to impact that to another trader...so as we share our unique abilities here, one has to really go home and work it out to see how it will work... Happy trading to everyone. Regards, naustingfx
Potential Opportunity CadCHf 1h
Pullback 21ema, move to round number
Happy Trading
- #29,946
- Edited 6:18am Nov 16, 2016 5:34am | Edited 6:18am
Update -
AudChf and AudNzd were both losses. I had three losses out of all open trades and unfortunately I put up two of the three losses and missed out the good ones.
But I wanted to use this opportunity of a loss to show some of the newer traders how to cut your losses when you understand the market rhythm. As Phil says "Hope is not a strategy".
Below is a chart of the audchf which shows expected market rhythm vs actual market rhythm. If you take the time to learn the market rhythm you will see it will tell you when you are wrong before your stop is even hit. You will see when the actual market rhythm changes and shows you are wrong, long before your stop is hit.
The second chart shows what rhythm is needed to consider a re-entry.
If you get into the market because you see and expect a certain rhythm and then the rhythm changes and gives an opposite signal, there is no reason to be in the trade still.
This is slightly more advanced and there is nothing wrong with having a stop hit. But once the basic concept is understood of the 4hmacd system this can be added to hugely reduce losses and increase overall R:R. When this method is applied an initial trade of risk:reward 1:3 can be transformed into a 1:8 or more.
For example, the initial trade I posted was (about)
26 pips risk vs 68 pips reward - RR - 1:2.6
But using and understanding the market rhythm, this trade was cut at around -8 pips which means the real RR of the trade was - 1:8.5
I.e if you were only right 20% of the time you would still make money. (most pro's will be at around 60-80, 90 is fairly exceptional)
Anyway I hope this helps and can be understood. It shows how to implement "Hope is not a strategy" by cutting your losses early BUT NOT because of emotion, but because the market rhythm is telling you to. If one can understand this principle and truly commits to learning the rhythm, this is one of the keys to being highly profitable compared to just slightly profitable
JP
AudChf and AudNzd were both losses. I had three losses out of all open trades and unfortunately I put up two of the three losses and missed out the good ones.
But I wanted to use this opportunity of a loss to show some of the newer traders how to cut your losses when you understand the market rhythm. As Phil says "Hope is not a strategy".
Below is a chart of the audchf which shows expected market rhythm vs actual market rhythm. If you take the time to learn the market rhythm you will see it will tell you when you are wrong before your stop is even hit. You will see when the actual market rhythm changes and shows you are wrong, long before your stop is hit.
The second chart shows what rhythm is needed to consider a re-entry.
If you get into the market because you see and expect a certain rhythm and then the rhythm changes and gives an opposite signal, there is no reason to be in the trade still.
This is slightly more advanced and there is nothing wrong with having a stop hit. But once the basic concept is understood of the 4hmacd system this can be added to hugely reduce losses and increase overall R:R. When this method is applied an initial trade of risk:reward 1:3 can be transformed into a 1:8 or more.
For example, the initial trade I posted was (about)
26 pips risk vs 68 pips reward - RR - 1:2.6
But using and understanding the market rhythm, this trade was cut at around -8 pips which means the real RR of the trade was - 1:8.5
I.e if you were only right 20% of the time you would still make money. (most pro's will be at around 60-80, 90 is fairly exceptional)
Anyway I hope this helps and can be understood. It shows how to implement "Hope is not a strategy" by cutting your losses early BUT NOT because of emotion, but because the market rhythm is telling you to. If one can understand this principle and truly commits to learning the rhythm, this is one of the keys to being highly profitable compared to just slightly profitable
JP
{quote} I agree, doing the study and work is crucial. You can't just start speaking a different language you have to learn it. Unfortunately this is missed by many new traders, they want to immediately start speaking a different language and get frustrated when they can't. You have to do the study. Potential Opportunity CadCHf 1h Pullback 21ema, move to round number Happy Trading
Thanks
