Forex Trading With Simple Setup - page 21

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ramdas:
Hi Cigarguy,

I have mention regarding SL in earlier post.

If you understood system then you will notice that no need to keep SL more than 10 to 15 pips. system is based on Price pattern and perfect entry point, if price pattern is disturb, then we have to exit with minimum loss which can be at breakeven, or spread loss, or maximum 15pips.

for example.. we can refer current GBP/USD chart.

entry point is at sma50 and sma600 spot. which comes as about 9603

here you can clearly see if price falls below 10 pips from sma50 touch then Pattern is disturb. and we have to look for exit.

Another important thing is.

above mention SL is to be used with 5min chart. for one hour chart we have to keep SL more than 15Pips since on higher time frame, entry point can very from 10 to 20 pips.

Best Regards

Ramdas

Thanks for the immediate reply. Another questions if I may. I notice you use SMA's instead of EMA's. What are your thoughts about the difference and how did you determine to use the specific time periods for the MA's that you use? Also, thanks for the thread http://www.investopedia.com/articles...eexplosion.asp great moving average information. After reading that thread just became curious why you picked the time periods you recommend.

Thanks Again,

Cigarguy

 
Cigarguy:
Thanks for the immediate reply. Another questions if I may. I notice you use SMA's instead of EMA's. What are your thoughts about the difference and how did you determine to use the specific time periods for the MA's that you use? Also, thanks for the thread http://www.investopedia.com/articles...eexplosion.asp great moving average information. After reading that thread just became curious why you picked the time periods you recommend.

Thanks Again,

Cigarguy

Hello Cigarguy,

I use Moving average in it's simplest form which is SMA.

Post 58 explain what are those specific parameter.

In my initial stage i tried many stratergy and many indicator. It was time when my chart was full of indicator..But nothing was working properly.

Then i realize i have ignored basic indicator which is price. and one midnight i calculated those parameter and put setup on my chart..and i was shock...Price action which was looking choopy or unexpected..... started looking very logical.

and good fall spoted with specific price pattern. it was like price map ahead in form of SMA.

Best Regards

Ramdas

 
ramdas:
Hello Cigarguy,

I use Moving average in it's simplest form which is SMA.

Post 58 explain what are those specific parameter.

In my initial stage i tried many stratergy and many indicator. It was time when my chart was full of indicator..But nothing was working properly.

Then i realize i have ignored basic indicator which is price. and one midnight i calculated those parameter and put setup on my chart..and i was shock...Price action which was looking choopy or unexpected..... started looking very logical.

and good fall spoted with specific price pattern. it was like price map ahead in form of SMA.

Best Regards

Ramdas

Thanks, appreciate your immediate reply and I understand your concept of keeping your method simple yet effective. When I started trading I thought the more indicators on my charts the better. They were cluttered with MA's , Histograms, Stochcastic Indicators and many others. They were beautiful with colors but very confusing, "Information Overload". I appreciate your concept of simple but effective. I have deleted all of my indicators but the ones you suggest and find "they tell a story that is simple to read".

Thanks again for your posts.

Cigarguy

 

Valid setup?

Hey I have been reviewing your system and wondering if this is a valid set up for a down trend to you. I realise the 600ma is below but it is 30 pips away and I am going to take profit on half and move my stop to break even at that point.

Thanks

Shawn

Files:
6ma_1-31-07.gif  15 kb
 
sswilli99:
Hey I have been reviewing your system and wondering if this is a valid set up for a down trend to you. I realise the 600ma is below but it is 30 pips away and I am going to take profit on half and move my stop to break even at that point.

Thanks

Shawn

Hi, sswilli99

Setup is valid...But with less potential ..be carefull....due to yesterday's Trap formation.

Just switch timeframe to 15min you will get more clear picture.

Best Regards

Ramdas

 
ramdas:
Hi, sswilli99

Setup is valid...But with less potential ..be carefull....due to yesterday's Trap formation.

Just switch timeframe to 15min you will get more clear picture.

Best Regards

Ramdas

Thanks you are right, we see later on. I closed with 5 pips profit.

What did you mean by trap formation? I have also attached my chart with yesterdays signals and it gave two very good ones on gbpusd.

Thanks again,

Shawn

Files:
6ma_1-31-07_all.gif  23 kb
 
sswilli99:
Thanks you are right, we see later on. I closed with 5 pips profit.

What did you mean by trap formation? I have also attached my chart with yesterdays signals and it gave two very good ones on gbpusd.

Thanks again,

Shawn

Hi, Shawn,

Attached chart shows bear trap...it can happens in important event's like NFP rate decission.

Best Regards

Ramdas

Files:
gbp_bear_trap.gif  16 kb
 
ramdas:
Hi, Shawn,

Attached chart shows bear trap...it can happens in important event's like NFP rate decission.

Best Regards

Ramdas

How can you spot that that is going to happen, from the chart?

 
increase:
How can you spot that that is going to happen, from the chart?

Hi, increase,

We can not predict it.... since such things are dependent on data release and market sentiment..... weak Chicago PMI data has cause reverse action.. and JPY comments add it further.

But on chart...it apeared as..GBP/USD .price touch Daily S3.. rebound....and touch Resistance spot SMA600 on 15min chart.

Another thing to note is...when G/U was at bottom U/J was setting at TOP that is sma600 Res (5min chart) which was last resistance spot on chart... and sentiment toward U/J was towards correction. (Ahead of G7 meet)

So either data OR comments was waiting for U/J correction trigger.

Best Regards,

Ramdas

 

sma 1750

Hi Ramdas,

I've found a strong resistance for last 2 days on G/U when it reaches the sma.1750 level, does this level has any special meaning or its just a particular case?? Tnx

Files:
sma_1750.gif  16 kb
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