Trade the fundamental principals of financial markets- at your own risk!
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Thread: Trade the fundamental principals of financial markets- at your own risk!

  1. #1
    inside this demonion here, I will try to explain everything as completely as possible and all questions will be answered with consideration.

    As with any method that carries positive expectancy beside its title, you require unshakeable discipline to follow simple rules, employ common sense and employ a winning mindset to make it work for you.

    This really is an intraday trading system, that intends to capture significant market motion with an excellent risk/reward whilst restricting the number of signals in a really clear cut way. Seeing the charts all day is extremely dull, particularly if we have no clue what's about to happen. The temptation to trade from boredom is immense, the market is running away, I do not want to miss this train, I just overlooked a $XXXX move, next time it goes like that I'll find a reason to get in! . Those are just a few of the items you'll be telling yourself while watching an intraday chart as well as the signals that you're looking for just aren't there, be warned.

    In order to establish the fact that waiting for the absolutely best sign is of utmost importance and damaging to your success, you may have to really watch these charts, get bored, tell yourself the things mentioned previously, enter transactions recklessly, incur substantial losses to your account simply to learn that waiting was totally in your own best interest.

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    The Charts:

    We will be using one timeframe, the 15M. The only time we'll be studying another timeframe is when we are drawing trendlines and identifying important levels in the market.

    On your chart overlay the following:

    150 EMA
    50 SMA
    CCI 50 14(See attachment)

    The CCI is an indior which many folks do not like for any reason, its principal purpose here is to enhance your confidence and act as a fantastic visual aid to gauge the momentum in the market. Credit is due to Dr Bob whom initially described the use of this 50 CCI in a record available on a different website. For information about the CCI and exactly what it does refer to
    http://stockcharts.com/school/doku.p...nnel_index_cci
    Please don't skip this URL.

    Your Chart ought to look like that:

    Some critical factors:

    * I utilize this egy on Yen crosses like Aud/Jpy, Eur/Jpy and Gbp/Jpy
    These pairs provide fantastic volatility which when coupled with these setups provide possibly very rewarding transactions, risk/reward sensible. It works on any instrument that is volatile.

    EDIT: See post #97 for CCI indior

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    More coming in a flash.

  2. #2
    Now, I am assuming you would read thoroughly through the link provided concerning the CCI indior and have it.

    The 50 CCI zero line infact represents a 34 interval EMA, in a really effective way. If price is above the 34 EMA, the 50CCI will be above the line and when price is under the 34 EMA, the 50CCI is going to be under the zero line.

    To us, the Zero lineup on both CCI's represents minor or major support/resistance areas, do not forget this.

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    Before I start showing how the signs are generated, we must first identify key levels on the market, to prevent mistakes and suprises as much as possible, this is the only time we'll be studying additional timeframes. To get trendlines, I switch into the 4 hour chart and loe the most crucial levels through which I can draw lines, EUR/JPY Example:


    The green lines are crucial support/resistance levels from the weekly and daily chart. Forget to put these lines on your chart in your own risk. Don't hesitate to use long-term fibs too, as in Weekly chart kind of long duration, they are sometimes handy.

  3. #3
    I will begin with the prettiest, most perfect setups and then we will proceed to more difficult circumstances where we must pay attention to what's happening in the market.

    We do not trade with a trend that can't be seen on the 15 minute chart utilizing the standards setforth. It is quite convenient to possess the trend defined in a glance from one chart and that I endorse this egy.

    Setup Description.

    Essentially we have 2 setups which represent different things on the market.
    The very first installment represents a deep pullback in a trend and the next is a breakout from tight channels

    Installation 1 Requirements: (Long) [Exit and cease egy will be clarified in another post]

    (a) Price travels over the 50SMA and the 150EMA. This is our sign for a trend change, the separation between the bulls and bears.

    (b) Both the 14 CCI as well as the 50 CCI are above the Zero line

    (c) The 14 CCI Returns into the Zero line area and also a Zero Line Reject occurs

    (d) This installment includes a variation which occurs many many occasions and is a decent trade: When the 14 CCI continues to travel under zero without realising it, however, the 50 CCI remains over or in the Zero line, we're looking for 14 CCI to turn right back around and cross the online again in the direction of the trend. Again this is just confirmed on pub close and the 50CCI has stayed over the zero line throughout this process

    Zero Line Reject for those of you unfamiliar with CCI simply means that the CCI line rejected the zero place, this represents a pullback. This can ONLY be comfirmed on the close of the bar. When the zero line reject is confirmed, however, the 14 CCI line closes over 100 on the completion of the ZLR, the installation is invalidated. Consider it as'quickly'.

    The kind we're searching for can only happen if the 50CCI does not close below zero, it must stay above zero while the ZLR is occurring on the 14CCI EUR/JPY Example:




    I'll reiterate the text above for a brief simply to make things crystal clear...

    Installation 1 Requirements: (Short)

    (a) Price travels below the 50SMA and the 150EMA. This is our sign for a trend change, the separation between the bulls and bears.

    (b) Both the 14 CCI as well as the 50 CCI are under the Zero line

    (c) The 14 CCI Returns into the Zero line area and also a Zero Line Reject occurs

    (d) This installment includes a variation which occurs many many occasions and is a decent trade: When the 14 CCI continues to travel over zero without realising it, however, the 50 CCI remains under or in the Zero line, we're looking for 14 CCI to turn right back around and cross the online again in the direction of the trend. Again this is just confirmed on pub close and the 50CCI has remained under the zero line throughout this process

    EUR/JPY Example:

  4. #4
    Heres an example of a large gap between both averages, this gap is around 80-90 pips, plenty of breathing space, so once price went through the 50SMA, it subsequently made a sharp pullback but the gap remained wide and also a workable trade towards the 150EMA looked


  5. #5
    C_jttoaxresy
    Guest
    Hi, can you pls Information on the information below: When do the next market open in GMT:- London Market Japanese Market US Market Australia Market Europe Market Switzerland Market Thank You for the anticipated Answer.

  6. #6
    As soon as we see this condition about the 50 CCI, you can bet your butt that price will be doing just this. . That is NOTHING. . Get ready for a straddle. AUD/JPY illuions:




  7. #7
    In the last few times we had some very nice trades, these dont occur every day nor should we expect the market to move like this. . Expect small but substantial movement but be prepared to take more if it's offered.

    EXITS:

    Here you have several options. . Every trader should find what's best for him/herself.

    1. A CCI departure is when the 14 CCI has long below/above the -100 / 100 Line or over the indior and hooks down the -100 / 100, the crossing rear triggers a stop.
    Many times with this departure if the market did not move substantially you are more vulnerable to losses or very small profits. This however is a very objective exit and may be utilized. On the flip side, a new commerce could be just around the corner!

    If you have a look at the example below, we can observe this market made a severely profitable gap that this method enabled you to ch. In this circumstance, we must be conscious that a very profound pullback is due at some point or another, the CCI exit for this trade are the hooking back in the -200 rather than the -100. Mind you, also through such enormous moves, the CCI may nevertheless not reach -200/ 200 and you will make do with a -100/ 100 Twist back depart.

    We've got an edge when we have both the 50 and the 14 CCI on our chart, if we see this kind of gap however the 14 CCI never left it into the -200 extreme levels, it might be so that the 50CCI really did and will indie a hook back from -200/ 200 sooner than the 14 CCI will reach for the 100 lineup, helping us to lock more profit. Yipee.

    If we see that a very strong trend and your trade is quite deep in the cash, an choice to exit is just when the 50CCI crosses the online , this is not recommended.

    Another alternative for the poisonous trader lt;that is, given the trade you had caught is quite directionalgt; would be to exit on the first pub that closes against the direction of the move, i.e you went short so that you will exit on the first bullish bar. This exit method many times will take you from winning trades far too soon, but is an alternative.

    Stops and Stop Strategy:

    I love to maintain this bit easy, but never mechanical and with respect to amounts in the market. My rule of thumb would be to place the stop below/above the the bar preceeding the signal bar, this can range from 20 pips to 40 pips or more.

    I move my stop to Breakeven at 15 pips, this is really a hard and fast rule for me. If price movement is stagnant I shall manually trail the stop at variable intervals, completely depending on how the market is moving. But I definitely adhere to the breakeven( 1) rule quite rigorously in order to avoid the losing trades. . Which do happen. You can do this but you deem fit. If the market is accelarating very quickly, I am just going to move the stop to 30 and let it ride until I have a CCI exit.


  8. #8
    Quote Originally Posted by ;
    Entertaining and looks simple. I am hoping you will reveal your entry and exit egy, as well as the very best time, market to trade. Since most of your pairs revolve round the yen are you trading the Asian market? Is that the market time?
    Best signals generated during overdue NY session. . However, this isnt a principle. I am watching the market many many hours every day and take the signals as they come. You do not get 20 signals a day. . You get sometimes 1 sometimes none sometimes 4. . These pairs will on a general note produce signals at Precisely the Same time

  9. #9
    axnwS.Nixxir
    Guest
    Quote Originally Posted by ;
    Hi Everybody..

    As I read through the majority of the threads in this section of this forum, all that's left to be mentioned is that a number of the methods presented to people make my stomach churn. There are very few methods on the market forexforum.co.za that deserve merit, however they are out there

    Notable things about the not so worthy methods to be found on the forum:

    1. The individual presenting the system does not really trade the machine

    2. The system has never been traded on a live account

    3. You will find exubarent claims made regarding the potential gains

    4. The system is presented only for the sake of attention seeking by the author

    5. The readers are never expected to Really understand why something works e.g how the indiors work, how They're calculated, what they'll never be able to inform you
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    they should sticky this @ http://www.forex-tsd.com where its infested with attention whores and childish exuberance

  10. #10

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