School of Pimpology - page 69
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If the strategy is difficult to follow it's not because you are stupid, it's because trading is difficult. 98% fail.
They fail because they have either bought a holy grail from one of the many sharks or they have failed to learn about risk managememnt or even the most basic techniques.
What I will attempt to do here is one post and one post only each day on how to get to grips with the KNOWING for yourself aspects.
Don't just read these lessons once. Read them 5 times them put them into paractise by backtesting your favourite pairs.
The first of these lessons involves stripping !!!!!!
Oh yes, the naked traders are back. Scorpion and Rockdrive will be pleased !
What I mean here is actually to take everything off your chart. Strip it until it is bare of candles and just has the smalles two m.a's, the one that runs through the middle of the candles and the pink 20.
Notice what happens when one is on one side of the other, then what happens when it crosses.
Once the 5 move down over the 20 does the 20 keep going up or does it tend to turn more often than not and begin to head down.
These are the questions that will make you a successful trader and by starting from scratch with just a couple of m.a's there is not too much clutter, not too much information to decipher.
Once you have studied that then add back the 50sma and repeat the process, asking "why does this do this and why does that do that"
What happens when the 20 is under the 50 and the 5 is under the 20 and all are pointing down? This type of thing.
Next add back the 20 from the 4hr chart and repeat and soon you will begin to recognize patterns.
Then add back the 4hr 50 and repeat and you'll see why at certain times something that you thought might happen actuall DID happen.
Now you're on the road.
If you want to scroll back then replay the chart, why not take off the autoscroll switch, scroll back then hit f12 for a one step forward increment.
I know this sounds basic but if you have very limited knowledge this is the sort of thing you should begin with.
Importantly. Don't rush
In the next lesson we will add something extra to the chart.hI pimp,
You are the absolute best doing this for us newbies, may the force be with you forever and cant wait for next lesson then next lesson
its brilliant
Thanks
Paul
Trendlines
..........Definate break of support line that EVERYONE should have had on their charts, not just Honest Bill......
Actually FX Pimp,
I'm only just getting used to the trendlines myself. I have played a few breakouts on them before, but looking at your charts here is helping me identify how to set them up better
I do them on the 4hr first thing each morning, but not updating the 5m throughout the day. Well, that has just changed!!
Bill, what I usually do is I take half position out then move to B.E., there is always a chance that you will get stopped out so do cover your bases. Or just take the whole position and enter again at a suitable setup.
Well this baby went +40 by this morning creeping down nicely. I moved my s/l to b/e thinking 40 pips is plenty away. But, then what happens?The whole football thing kicks in again......
Euro put up a good fight against USD, but USD kicks CHF about the pitch.....the result is Euro beats Swissie hands down and I get stopped out at break even.
It might be worth a go again, but the stop loss would have to be above today's Pivot.Pimp, you are such a patient and good teacher.
If the strategy is difficult to follow it's not because you are stupid, it's because trading is difficult. 98% fail.
They fail because they have either bought a holy grail from one of the many sharks or they have failed to learn about risk managememnt or even the most basic techniques.
What I will attempt to do here is one post and one post only each day on how to get to grips with the KNOWING for yourself aspects.
Don't just read these lessons once. Read them 5 times them put them into paractise by backtesting your favourite pairs.
The first of these lessons involves stripping !!!!!!
Oh yes, the naked traders are back. Scorpion and Rockdrive will be pleased !
What I mean here is actually to take everything off your chart. Strip it until it is bare of candles and just has the smalles two m.a's, the one that runs through the middle of the candles and the pink 20.
Notice what happens when one is on one side of the other, then what happens when it crosses.
Once the 5 move down over the 20 does the 20 keep going up or does it tend to turn more often than not and begin to head down.
These are the questions that will make you a successful trader and by starting from scratch with just a couple of m.a's there is not too much clutter, not too much information to decipher.
Once you have studied that then add back the 50sma and repeat the process, asking "why does this do this and why does that do that"
What happens when the 20 is under the 50 and the 5 is under the 20 and all are pointing down? This type of thing.
Next add back the 20 from the 4hr chart and repeat and soon you will begin to recognize patterns.
Then add back the 4hr 50 and repeat and you'll see why at certain times something that you thought might happen actuall DID happen.
Now you're on the road.
If you want to scroll back then replay the chart, why not take off the autoscroll switch, scroll back then hit f12 for a one step forward increment.
I know this sounds basic but if you have very limited knowledge this is the sort of thing you should begin with.
Importantly. Don't rush
In the next lesson we will add something extra to the chart.Like so............
That's what I meant by a small recovery.
Not recommended for novices of the group but as one gains more experiance it's sometimes possible after a big fall to play the 63 and signal CCI upto/downto the 60m 20ema and 252 0.0 line.
Notice here how the 4ema (1m 20) was on top of the 5m 20 which was on top of the 15m 20 offering 3 lines of defence.
Risky proposition playing against 4hr and 1hr trend but it can be done for the odd 20-30 pips here and there when you have the balance and patience to accept just a 50% success rate.
First taget would be 60m 20 but this is not for newbies. There's plenty of trades with the trnd to be had.
Swissie short now is an example. From 1.1105
There's plenty of trades with the trend to be had. Swissie short now is an example. From 1.1105
Not trying to blow my own trumpet here so don't worry. It's been a tough afternoon to be honest and this was a lucky one.
Look on a 15m or a 60m or a 4hr chart and this call was eccentric. Look on a 5m chart and it becomes a bit clearer.
One thing I want to bring to the attention of everyone is NOT the break itself, but the trajectory of the 15m 20ema acting as resistance.
Yes I got the timing a little bit wrong on this but because of the angle of the 15m 20 this was one for the south-side.
Ignore the black trendline. This is just showing the angle, the curvature of that particular 20ema.
Only a 50 pip move but learn how to do that 4 times a day allowing 2 right and 2 wrong with the losers costing 30, say and you have yourself 40 pips profit.
Do that each day x 22 in a month and you're on the road to never ever worrying about another thing in your life.
So when you have studied the exercise from earlier, then now study the shape of the m.a's for a bit.
4hr Strategy - One to watch
NZDUSD could be one to watch on the 4hr strategy. The Daily CCI is a bit oversold. As I type, it is only 34 pips below today's Pivot. So, a pullback would be nice and we might get in with a 5m entry with a nice tight stop loss above the Pivot.
UPDATE:
FX Pimp has kindly pointed out his concern to me on this. If you look at a 60m chart, it has just crossed above the 20MA. So, this is probably one for the shelf for now.
Read the post by FX Pimp underneath this one.
Is this chain of thought correct?
Just wanted to post my chain of thought on a possible short on EURUSD based on the following.
1 Hour Chart: 21 CCI touched +100. 84 CCI Indicating not oversold.
Move down to 15 min chart
15 Min Chart: Allow the break of the 15min 80ma. Wait for retracement. Hopefully by that time the 84 cci would have crossed 0.0 and get in on the way down.
I'm not sure if my chain of thought is correct so we be great to get some feedback.
Pimp, you have a really great thread here. Love what you are doing.
FerruFx
FerruFx....be cautious about shorting eurusd because there is a hammer on daily candle and cci positive divergence appeared on the 4 hr tf. It's possible that the down move on 15 mins. could just be a pullback for an up move. Most of the time bigger TF rules over shorter TF. I don't mean to confuse you, but just my thoughts.