School of Pimpology - page 33
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
A few possibles
Here's just 3 trades you could have taken.
GBPUSD - Sadly no pullbacks there so no chance for re-entry. Looks like a 'get in and ride the wave' scenario. 600 pips lower than entry at present.
AUDUSD - Struth Bruce, what's happened to my Sheila ? 3 possible entries for 700 pips total possible.
USDCHF - 5 possible entries here with 400 pips possible.
Going to get drunk now. Have not had a beer all week and think it's about time.
Will be posting more about the 4hr strategy here tomorrow. In the meantime please ask questions, so long as it's not "is the Dollar strong now then Pimp?"
Have a great evening.
FANTASTIC - and chocolate too!
Pimp, Pimp, Pimp
Is there no end to your wonderfullness? Can life as a home-trader get anymore brilliant?
Not just a great strategy to trade (I just love the 15m set-up) but now a 4 hour set-up to tinker with as well, AND we all get to talk about it in the chat room too.
As Tony (ajhill) and others have said in earlier posts, it can be a lonely life trading from home, but what a great community we have in our chat room now. Sharing the strategy, sharing the pips and sharing the pain when it goes a bit pear shaped. We need some more ladies though, there's more than enough guys to go round!
So Pimp, thank you for caring, thank you for sharing and thank you for adding chocolate into your charts.
RS / Scorpion
So how do we get in to these trades ?
Getting into these trades is really quite easy.
More importantly, once in you can forget about them for a few days, go on a booze cruise to Calais, have a romantique slap-up meal in Paris then get stuck in the Eurotunnel with zero ventilation for 48hrs without even worrying.
Yes you might be thirsty, yes you might be hungry, yes you might be knocking on deaths door, but think about the pips !!
In chart 1 I demonstrate the importance of support and resistance trendlines.
Although the smaller ones may seem insignificant on a 4hr chart, even a small support over 6 candles is a lot of candles on a 5m chart.
I know we are not talking 5m strategy here but the point is, that little pattern formations are another little clue to the likely next direction when you get a breakout either side.
It is possible to play these breaks following the daily CCI alone for direction and the 21 for a trigger, but this is not always ideal.
Next, we'll Zoom in for a closer look at some of these potential entry points using the 7CCI and 2/5 ema cross.
Entry 1
This entry is from the break of the support line in the top left of the previous chart down to the little symmetrical triangle pattern. It's not so clear once zoomed in like this so i have broken it into 2. The initial break and the second bite, or 1-2-3 like on the shorter timescale. We can see that part 1 all 3 CCI's have crossed together, The moving averages are all above us, the support has been broken the 2ema has crossed the 5ema, therefore, a valid entry.
The second is a lot safer and much clearer on the zoomed-in chart.
There is a new unnoticed before support line forming (red), the daily CCI is cleary down, the m.a's are in a nice flowing downward movememnt and neatly in correct order, the 2&5 ema are consolidating.
As the 2&5 cross once more NEAR TO THE SUPPORT (very important) the 7CCI gives us the all clear and recrosses along with the breakout with the red Heiken Ashi.
The 2 remained below the 5ema so no need to get frightened out of this. A quick 600+ pips in a few days had you entered on the initial break, held it through the consolodation and exited at the first green Heiken after the big drop.
So we've covered the breakout and the 1-2-3 retracement entry. Last night I covered the continuation entry, so let me post 1 more of each from a different pair to help these sink in then we'll move on to stop losses & exits.
Using the 21 and 126 CCI's like the 5m 7 & 63
The basis of this strategy is really no different to that of the 5m chart.
We can use - in certain conditions - the 4hr and daily CCI's (21&126) on our 4hr chart much the same as the 63 & 7 on our 5m chart. Remember the 63 cross then the 7 retrace?
This is the same. Take a look at the example shown.
The price breaks out from the support, retraces back upto the old support/new resistance with the 21 CCI following suit.
The daily CCI has broken, the m.a's are all above us and we enter on the re-cross of the 21CCI. No need for the zoom in, this is like taking candy from a baby.
A little 2000 pip move in just a couple of weeks.
After having been around the block looking at numerous all singing all dancing systems and e.a's and holy grails I have come to the conclusion that there is not a lot on the market place that hasn't been done a thousand times before.
Most of it is re-branded, a lot of it is repackaged, and most of it is absolute crap.
One of the oldest indicators in the book is the 20 moving average.
This can be simple, exponential, weighted. There are lots of ways to calculate it but I prefer exponential.
Why does it work?
Well as the 20 moving average is a standard tool in most chartists toolboxes there are millions of traders worldwide using it.
Whether they be working from a 5m chart, a 60m chart, a daily chart of a monthly.
There are banking systems in place which place orders on the bounce of 20 moving averages.
Most modern day trader use the 20 and almost all of the old school.
Here's where it gets interesting. With this strategy. I incorperate a 20 moving average from 3 time frames on the one chart.
When I have my own screens displaying lets say a 5m chart and a 15m chart, I can see the 20 moving average from 6 timeframes.
This gives me a great indication of the likely direction of the market without referring to daily and weekly charts.
I attach 2 snap-shots.
The first shows a 20 moving average on 4 different charts, each from a different timeframe. There's a 5m a 15m a 60m and a 4hr chart.
See how well the 20 supports or resists the price action in most cases.
Now look at the second shot, showing the same 4 timeframes, but each with 3 additional 20 moving averages from higer timeframes. When these moving averages are bunched together, there is huge potential.
Think about it. If my 5m 20 is sat on my 15m 20 which sat on my 60m 20 which is sat on my 4hr, there are players from accross the globe who specialize in their own particular timeframe all placing orders or all pimping money into the market.
The weight and volume of capital from the 5m boys in town to the position guys who play 4hr only is all pouring in and driving the price. Now that is a weapon !!Hi FX,
How do you do the calculation for all the MA's on one chart so it shows the 5 min. 15min & 60 min ma's all on one chart
Thanks
Paul
M.A Numbers
Hi Paul. Welcome to the thread and thanks for the question.
I should have covered this in the past but don't think I have done it in great detail.
It's actually very easy to calculate the different timeframe moving averages into a shorter term chart.
Lets take the 4hr 60m and 15m settings as an example.
I like to use this example as the timeframes are all divisible by 4.
There are 4 x 15m in 60m and 4 x 60m in 4hrs.
Therefore the calculation for the higher timeframes in this instance is the value of your 15m moving average times 4 gives you the same period 60m m.a on your 15m chart. Take this new number and times that by 4 and you have the same period 4hr m.a on your 15m chart.
Example. I want a 60m and a 4hr 20 moving average on my 15m chart.
20 x 4 = 80, so an 80ema on a 15m chart would be the 60m 20.
80 x 4 =360, so a 360ema on a 15m chart would be the 4hr 20.
If you want a weekly 20 on a 1m chart you must work up the timeframes.
There are 5 x 1m in 5m, 3 x 5m in 15m, 4 x 15m in 60m, 4 x 60m in 4hrs, 6 x 4hrs in 1 day and 5 x 1 day in a week.
My calculation would therefore be 5x3x4x4x6x5 x the m.a in question, lets say a 20.
5x3x4x4x6x5x20 = your 144,000 exponential moving average.
Unless you have 300 years worth of data this wouldn't show up too well, but you get the point.
A 15m 20 on a 5m chart is?.....................yes, a 60 (3 5m's in 15m, 3 x 20)
a daily 50 on a 60m chart?.....................yes, a 1200 (50 x 4 x 6)
This works in reverse too, so a 5 ema on a 4hr chart is a 20 from the 60m chart.
Why? There are 4 x 60m in 4hrs, so your 5 x 4 =20.
A 7 on a 15m chart is your 5m 20 (21 actually)
Does this help ? If not then email me and I will just send you the template
More on Averages
Here's another reason why we use the longer term M.A's on our 4hr Chart.
USDCAD struggled to get past the Weekly 50 for a couple of months, but look what happened once it passed along with the other averages.
It started to find support to the tune of 700 pips !!
Stop-Losses and Money Managememnt are next.
Where's the trend?
Hi Pimp
A question about the trend if I may.
We all know, and if we don't we should do some pretty damn quick research, that the trend is our friend. Trade with the trend, not against it. BUT, how do we identify the trend direction. Not always as easy as you may think.
I think you said about the new 4hr strategy that the trend is identified by the direction of the daily 21CCI. Simply red CCI = down trend and green CCI = up trend. So we look for trades in the direction of the daily 21CCI. Is that right?
On the shorter timeframe strategies though, how do we identify the trend? Are we talking the same basic idea i.e the 21CCI?
If I'm right then I'd be looking at the 4hr 21CCI for the trend (red = down, green = up) and then using the 60min & 15min charts to find trades in that direction, and the 5min chart for an entry point. Am I right?
thanks
Tony H