BUY FXO Forum Shares
1316
Shares in the BANK:
We BuyWe Sell
$1.9202$1.9796
Results 1 to 14 of 14

Thread: 80 Trading stategies for forex

  1. #1
    Bullish
    Join Date
    Jun 2007
    Posts
    99
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default 80 Trading stategies for forex

    80 Trading stategies for forex

    Currency Trading Strategy Number One:

    When you are just starting out, strive to carve out 20 pips per
    session, and thats it. Then, turn it off, and study some more. When
    you get really good at it, you can then graduate to higher returns.
    So, set your goal at 20 pips and stick to it, until you are a grand
    master at this wonderful business called forex trading. I stress the
    word business. This is not a game, especially where your hard-
    earned money is involved.


    ****************************************************
    Currency Trading Strategy Number Two:

    Spend most of your time on the 15-min chart.


    ****************************************************
    Currency Trading Strategy Number Three:

    When you first start out in any particular session, look at the 1 hr
    chart to get an overall perspective on trend from one session to the
    next, and what its likely shaping up to be at the beginning of the
    upcoming new session.

    ****************************************************

    Currency Trading Strategy Number Four:

    Only look at the 5 min chart if you absolutely have to see whats
    behind the current 15 min bar especially where the bar is
    elongated, and may have just penetrated a pivot point; in other
    words, is price reversing course on the 5 min chart, which would
    obviously not yet be reflected on the 15 min chart?

    ****************************************************

    Currency Trading Strategy Number Five:

    Dont dwell on the 5 min chart, as it contains a lot of noise that will
    whipsaw you to death.

    ****************************************************

    Currency Trading Strategy Number Six:

    MACD rules on the 15 min chart. Even if MACD is, say, trending up
    on the 1 hr chart, if it is trending down on the 15 min chart, thats
    what you take your cue from. Thats not to say a shift in price
    direction is not in the works. It just means its coming, but not yet.
    In the meantime, you dont want to miss whats happening in the
    now, which is what is reflected in the 15 min chart.

    ******************************************************

    Currency Trading Strategy Number Seven:

    If MACD is trending down on the 15 min chart, and price is wanting
    to go north, price will sooner than later head south as it perhaps
    bounces off a pivot point, or gets turned around at a juncture caught
    by one of the other three tools you should be using (reading
    bars, MACD divergence, or trendline analysis). Same thing if MACD
    is trending up, and price is trying to head south.

    ******************************************************

    Currency Trading Strategy Number Eight:

    Only use MACD for divergence, not for buy or sell signals. It is a
    lagging indicator, and as such is useless as a trigger. It is too slow
    for that in the forex world.

    *****************************************************

    Currency Trading Strategy Number Nine:

    Again, MACD divergence on the 15 min chart is more significant than
    what you see on the 1 hr chart in the near-term. For those of you
    who dont understand what divergence means, keep looking at my
    own personal forex trading examples on this page on a daily basis for
    examples of divergence. Basically, what it means is where you see
    MACD waves waving in the opposite direction to price action. Thats
    why I connect the top of the waves (in a downtrend) and the bottom
    of the waves (in an uptrend) to illustrate that the waves are waving
    higher in an uptrend and lower in a downtrend in the opposite
    direction to where price is going.

    ********************************************************

    Currency Trading Strategy Number 10:

    Always protect your money by using 20-30 pip stops. Mental stops
    are okay, but not if you are dead serious about using a disciplined
    approach to managing your money. You will lose three out of ten
    trades. The three losses should be kept to 20-30 pips. Your wins will
    by far surpass your small losses, and thats what stop-losses are all
    about. Dont be afraid to lose. Even professional batters strike out six
    out of 10 times. Lions are only successful 20% of the time in their
    chase for the kill. Professional golfers lose 95% of the time.
    Professional poker players lose 50% of the time. So, your chances
    are better at trading the forex, using my system of course, than in
    any other venue. Even businesses have bad inventory. And, life in
    general is not always 100% for sure.

    *******************************************************

  2. #2
    Bullish
    Join Date
    Jun 2007
    Posts
    99
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    Currency Trading Strategy Number 11:

    That all said and done, if you entered a trade close to a pivot point,
    or a particular significant bar pattern (like a double top, for instance,
    or a trendline breakout), place your stop on the other side (but not
    too close to) the event that caused you to take action. This is
    because price has a tendency to snap back to that situation that
    caused it to bolt away from it in the first place. If you follow the 20-
    30 pip stop rule, but a 33 pip stop on the other side of that event
    would safeguard you against such a reaction, then so much the
    better. So, yes the stop rule is 20-30 pips, but within reason of
    course.

    Currency Trading Strategy Number 12:

    Stops (read stop-loss) are for insurance purposes only not
    necessarily for taking profits. However, you can most certainly
    employ trailing stops, whereby you keep moving your stop up (or
    down, whichever the case may be) to protect your profits, as price
    advances, or declines.

    Currency Trading Strategy Number 13:

    Only use reading bars, MACD divergence, pivot points, and
    trendline analysis in your forex trading toolkit. Thats all you need for
    this market. Be a technical bigot. Focus on pure technical analysis,
    and avoid funnymentals. Even news is factored into price action, so
    you dont need to be up on it each and every nanosecond. If you
    don't have my .pdf file on reading bars, please send me an e-mail,
    and I'll forward it to you: (.........) As was pointed
    out to me by a client, "reading bars" includes spotting double, or
    even triple, tops and bottoms.

    Currency Trading Strategy Number 14:

    And now for the tough part. I know my documentation says that the
    forecast low and high for the next trading session can be M1/M3 or
    M2/M4. However, trading is shades of gray. It is not a black and
    white business. If it were, the world would be paved in gold, and
    everybody would be rich. Now, we wouldnt want that would we? The
    forex would be nothing more than a Church at the end of a road
    connected to a river bank at the other end with nothing in between.
    The point I am trying to make is that the actual low and high for
    the next session could very well be any combination of M1, M2, M3,
    and M4. It could be M1/M4, M2/M3, or combinations of the other five
    pivot points. The M1/M3 and M2/M4 calculations are just guideposts,
    but are not poured in concrete. Price is the number one indicator. It
    will determine what the low and high are going to be. And one other
    thing, you should use these forecasts in conjunction with the other
    three tools in your forex trading toolkit reading bars, MACD
    divergence, and trendline analysis. In other words, if price has been
    trending down from the past session into the current one, price is
    trading at, say, M3, and price is still going down, then M3 may very
    well be the high for the new session, regardless of the fact that my
    system may have called for M4 to be the high. So, use the pivot
    points in conjunction with other three possible signals reading
    bars, MACD divergence, and trendline analysis. I have seen it
    happen, as in the example just given, where price was trending down
    from one session to the next right through M3 at the open of the
    next session simultaneous with the formation of a double top bar
    pattern. Well, there you have three indications that price was headed
    south for sure. And, I believe MACD was also trending down in that
    particular case. So, that was another clue that the high for the
    session had probably already been put in.

    Currency Trading Strategy Number 15:

    When you are first starting out, pick one currency of the four major
    pairs (EUR/USD, USD/JPY, GBP/USD, and USD/CHF) to trade, and
    become a specialist in it. I would personally recommend the Euro,
    especially if you are going to be asking me questions, as that's what
    I focus on with my clients around the world. Get to know its rhythm.
    When you are doing well with it, then move on, and trade the other
    three major pairs, as you see fit. When you are in learning mode,
    you will have your hands full trying to figure out what to look for,
    and how to manage your trades enough so that you don't want to
    be skipping back and forth between currencies.

    Currency Trading Strategy Number 16:

    Keep a log of all your trades both good and bad. Analyze where
    you went right and wrong, and vow not to repeat those situations
    that could have been done better. This is all part of being organized
    as a "professional" trader - with good habits. This is not about gun-
    slinging and winging it with "Hail Mary" passes.

    Currency Trading Strategy Number 17:

    Important point here: If price action opens in the upper end of the
    projected range for the session (all the way up to R2, and beyond)
    in other words, in the sell area (that area above the central pivot
    point) and there are other suggestions that price is too high (such
    as a particular bar reading, MACD divergence, or trendline breakout),
    then price has probably achieved the upper end of its price range for
    the session. The same holds true where price action opens in the
    lower end of the projected range for the session (all the way down to
    S2, and beyond) in other words, in the buy area (that area below
    the central pivot point) and there are other suggestions that price
    is too low (such as a particular bar reading, MACD divergence, or
    trendline breakout), then price has probably achieved the lower end
    of its price range for the session.

    Currency Trading Strategy Number 18:

    If there is nothing to do, then don't do it. Don't just do something
    because your "gut" tells you to. That can get you in a lot of trouble in
    this business. Only react to bona fide signals provided by the four
    indicators talked about above "reading bars," MACD divergence,
    pivot points, and trendline analysis.

    Currency Trading Strategy Number 19:

    Only use an "industrial strength" market maker with the lowest pip
    spread in the industry. If you would like more information on this,
    please send me an e-mail: (..........)

    Currency Trading Strategy Number 20:

    Occasionally, you will see a huge spike up in price, as we did 11 May
    03. This just happened to be on a Sunday, shortly after re-
    commencement of trading, after the weekend respite. Ordinarily, I
    would take the OHLC numbers from Friday, but given the nature of
    the wild swing up that evening on one of the 15 min bars, I would
    then use the OHLC numbers from Sunday night's session close to get
    a better reading on support and resistance levels for the next
    session. This is, of course, if you are using a market maker that
    delineates its break between trading sessions in the late evening -
    anywhere between 20:59:50 and 24:00 (midnight).

    Currency Trading Strategy Number 21:

    I often get asked by fellow traders why my pivot points aren't the
    same as theirs. Good question. The answer is, of course, that you
    may be using a different market maker, where a daily 24-hour
    session is "cut off" at a different time. Some end at 20:59:50. Others
    at five pm. Where you take your OHLC from will have a direct
    bearing on the pivot points that you calculate using my program. The
    results will obviously not be the same. But, that is okay because
    you want to use the pivot point calculations that are reflective of the
    last 24 hours at the market maker you are trading with. That way,
    the resulting numbers will be truly indicative of the support and
    resistance levels you should be working with during the next session.
    If you are trading with a firm that cuts off at 5 pm, and using OHLC
    figures from another source that cuts off at a different time, your
    figures will be "out-of-sync." I hope this all makes sense. If not,
    please send me an e-mail: (..............) Also, in your
    message, you can ask me how to get a copy of my program, if you
    don't already have one. You can also ask me where you should be
    trading i.e., which market maker you should be using. I only
    recommend "select" providers, after considerable research, and
    feedback from my clients.

  3. #3
    Bullish
    Join Date
    Jun 2007
    Posts
    99
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    Currency Trading Strategy Number 22:

    Former stock traders take note: I say former because I don't
    honestly know why you would ever want to go back to stocks after
    having tasted the forex. Don't over-trade the forex. This is not a
    scalping market! If you have to scalp, do it in slow motion.
    Currencies trend well. Don't buy too soon in a downtrend, and don't
    sell too soon in an uptrend. Watch for trendline breakouts to know
    when to make your move.

    Currency Trading Strategy Number 23:

    You cannot succeed at trading the forex unless you are TOTALLY
    committed to trading, and trading it. This is not something to be
    played with. If you are not going to take it seriously, then try
    something else.

    Currency Trading Strategy Number 24:

    Put your emotions in your hip pocket. This is a business, and should
    be treated as such. If you have any bad habits, the forex will fix
    them real quick.

    Currency Trading Strategy Number 25:

    Important point here: If you deem the major trend for the current
    session, based on everything you have learned to this point, to be
    down, then think DOWN. Sell rallies. Don't look to buy, or you might
    get whipsawed to death. Likewise, if you deem the major trend for
    the current session to be up, based on everything you have learned
    to this point, then think UP. Buy the dips. Don't look to sell. Former
    stock traders fall prey to wanting to have it both ways. Maybe, when
    you get real good at this, you can try. But for now, think one way,
    and save yourself the grief.

    Currency Trading Strategy Number 26:

    Another important point here: The major rally for the Euro begins
    after two am New York time. These are the London hours the
    busiest in the forex, bar none. The Euro always session after
    session puts in, on average, 76 pips during the first 12 hours from
    that time forward. Whether you want to believe it or not, the Euro,
    once it makes up its mind what the major trend is going to be during
    those 12 hours, will "drive" to the other end of its range (76 pips)
    within those 12 hours. So catch the trend, and ride it. Now, it won't
    be a straight line, of course. Even an airplane taking off or landing
    encounters some bumps along the way. Same too with the Euro.
    Once it picks its direction, it will meander all the way to the other
    end of its range. This will "fake" the dumb money out. They never
    know what happens to them. To conclude: If the Euro wants to have
    a down trend during those 12 hours, it will achieve its 76 pips south
    of where it started. So, think DOWN. If the Euro wants to have an up
    trend from during those 12 hours, it will achieve its 76 pips north of
    where it started. So, think UP. The Euro either goes up or down
    during those 12 hours not both. Here, I am talking about the major
    trend, of course. Ah yes, there will be rallies or dips along the way,
    depending on the direction of the trend (down or up), but like I said
    earlier, SELL THE RALLIES IN A DOWNTREND, AND BUY THE DIPS IN
    AN UPTREND. That's all there is to it.

    Currency Trading Strategy Number 27:

    Something to think about: If you get the above strategy - number
    26, then you're going to love this one. It will test your nerve. If you
    buy into the idea of the major trend unfolding during those 12 hours
    (check it out here every day, and you'll see living proof), then why
    not try to get in when it starts to unfold, and "ride it." That will take
    nerves of steel, because the Euro will go against you from time to
    time but not enough so to take out your initial stop. From a
    risk/reward ratio point of view, you are risking 20 pips to gain 76.
    Not a bad ratio. What I am trying to say here is why not just put
    your trade on, set the stop, and go clean the swimming pool while
    the Euro meanders its way to the end of its range. What spooks a lot
    of people out is when they stare at price action after they have
    engaged their trade, and they over-react every time the Euro
    hiccups. Just leave it alone. So, what's the worst that can happen?
    You can get stopped out right? Chances are you won't. If you catch
    the major trend, chances are very much in your favor that you will
    be richer by at least US$760 per lot. If you trade the action all the
    way through the trend, you may get beat up real bad, and lose
    anyway. Let the Euro lead you, not the other way around.

  4. #4
    Bullish
    Join Date
    Jun 2007
    Posts
    99
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    Currency Trading Strategy Number 28:

    Every once in a while, I would encourage you to step back from the
    daily intraday action, and have a look at it from 30,000 feet.
    Sometimes, we can get too close to it, and not see the trees in the
    forest. On the daily chart, if you plot trendlines and look for
    divergences, you will learn a lot about where price is going to go
    "next." Of course, that's what we all want to know, right? Not only do
    trendline breakouts and MACD divergences tell a "big" story, but
    where a daily bar closes will offer up a clue as to where price will
    likely go in the next session. Study the chart, and you'll see what I
    mean.For those of you who don't know what this is all about, the little line
    pointing off to the right of a price bar is the "close" for the daily
    session. The little line pointing off to the left is the "open" for that
    session. In the forex world, the close of one session automatically
    becomes the open for the next session, as this is a very liquid
    market, and there are no gaps in trading.


    I just thought it wise to pause and reflect at a higher level from time
    to time. Looking at things top-down is sometimes healthy, and a
    wise thing to do. We can sometimes get caught up in the minutiae of
    the daily flurry of price movements, and lose perspective of the
    bigger picture unfolding above us.

    Currency Trading Strategy Number 29:

    To reiterate, there are just a "few" things you have to watch out for,
    and be "patient" for set-ups to occur. Don't just pull the trigger
    because you "think" it's time to do so. Wait for bona fide "signals."
    There are only "four" clues you have to look for: "reading bars,"
    MACD divergence, pivot point breakthroughs/tests/violations, and
    trendline breakouts. That's it folks. That's all it takes to succeed in
    this wonderful business called forex trading. No other bells and
    whistles or toys are required, contrary to what you may have learned
    before. The hardest part for you will be to "unlearn" everything you
    knew about trading before. Just give your head a shake, and it will
    go away.

    Currency Trading Strategy Number 30:

    Although I have said that there are only four clues that you have to
    look at for price direction "bar reading," MACD divergence, pivot
    points, and trendlines there is actually a fifth. It's called "price."
    Price is the number one indicator in the sky. It will tell you where it
    wants to go. Let it point the way. It's like playing cards. Wait for it to
    reveal its "hand." You just have to be patient and wait. It's called
    "following the leader."

    Currency Trading Strategy Number 31:

    I was asked recently about multiple lots in other words, buying or
    selling more than one lot at a time. You can either "load up the boat"
    at your entry point, or you can go at it one at a time adding
    additional lot(s), as price moves through each successive pivot point,
    as it "reaches" for the end of its range. If you are confident that you
    are "with the trend," and are using good money management
    techniques, then there is nothing wrong with taking more position(s)
    along the way. Or, you can do both load up to begin with, and
    buy/sell more, as price progresses through pivot points in its tear to
    the finish line. Don't bail too soon. Remember, currencies trend well
    (especially the major trend), and price knows where it wants to go.
    Let it take you there. Use the "five" indicators "reading bars,"
    MACD divergence, pivot points, "price," and trendlines to make
    your trading decisions.

    Currency Trading Strategy Number 32:

    Be careful about taking trades in between pivot points. This is NO
    MAN'S LAND, and dangerous territory. Better trades are made in and
    around pivot points.

    Currency Trading Strategy Number 33:

    Make sure to take the time to draw pivot points on your 15 min
    chart, which should be your main focus. This is like the radar screen
    in the cockpit of an airplane. It is difficult to trade (fly) without points
    of reference to look at. You don't need to draw them all. They
    probably won't all fit anyway. At least have those that are close to
    price action plotted on the chart. You can also plot lines on the 1 hr
    and 5 min, but you shouldn't be spending much time there, so it may
    be a waste of time. But, can't hurt. You should also draw trendlines.
    Where price breaks a trend at a juncture with a pivot point, this is
    very powerful evidence that price is going the other way. Plot your
    MACD divergences. The more you see on the screen, the better your
    trades will be. Draw a line down the screen (on the chart of course)
    delineating start of session, and where you got your OHLC from to
    calculate the pivot points for the current session. I think you get the
    "point," pardon the _expression.

    Currency Trading Strategy Number 34:

    Just to re-hash and beat an old drum, the 5 min chart is like the trim
    tab on a sailboat, for you sailors out there. It is small and
    insignificant, seemingly, but very powerful as it assists in "steadying"
    the course. Same too with trading, looking at the 5 min every once
    in a while will give you some insight into what is happening
    "underneath" the current 15 min bar that is forming. This is
    important, especially at the end of a run, where price might be trying
    to do an "end run" or "sneak attack" in the opposite direction to what
    you're thinking, while you're not watching, of course. But, like I say,
    don't dwell in "5 min land" as ex-stock traders are wont to do. They
    are scalpers by nature, but will very quickly get scalped by the forex,
    as one of my new customers has recently found out the hard way.
    He now puts a trade on (with stop in place for sure), and goes to the
    airport to pick up company, or goes outside to clean the swimming
    pool only to come back, and see how much money he has made by
    not obsessing over every little movement. I'm not saying don't pay
    attention, but what I am saying is too close is too close. Once you
    catch the trend, and enter a trade because you saw something in
    "reading bars," MACD divergence, pivot points, trendlines, or price
    action, let price steer the course, and "wait patiently" for the next
    event that will cause you to take action. Of course, that action will be
    taken again because you saw something in "reading bars," MACD
    divergence, pivot points, trendlines, or price action. If you don't see
    anything significant, then DON'T DO ANYTHING. Sit on your hands.
    Don't press enter whatever you do! Oh, and before I leave this point,
    with a market maker I recommend, you don't have to leave the 15
    minute chart to "peek" at the 5 min chart to see what's going on at
    that lower level, because they show the tick-by-tick action right on
    the 15 min chart, as the next 15 min bar is waiting to form.

  5. #5
    Bullish
    Join Date
    Jun 2007
    Posts
    99
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    Currency Trading Strategy Number 35:

    I was recently asked how many signals he should wait for before
    pulling the trigger. As you recall, I earlier said that you should only
    take direction from "reading bars," MACD divergence, pivot points,
    trendlines and price itself. Now, how many of these should fire
    before you engage your trade? Well, certainly, one is enough to set
    the tone but all the more convincing where you have a couple or
    more all lining up and saying the same thing. For example, recently
    the Euro was in a downtrend from the session just ending, entering
    the new session still in a downtrend, when price did a double top at
    the nearest pivot point as the new session started. Well, there you
    have three things telling you what to do go short, of course. We
    had the downtrend, the double top, and the double top banging its
    head up against the pivot point. Lots of evidence that price was
    southward bound. I think you get the point. An analogy here: If
    you're sitting in your car at home waiting to go to work in the
    morning, and you are waiting for all the street lights to turn green on
    the way to work before you start the car, you will never get to work.
    So, the more green lights the better, but one is enough to get you
    going.

    Currency Trading Strategy Number 36:

    And now for some psychology. For you newbies out there, your self-
    esteem will grow the more trades you make. You will not always be
    right. You will make mistakes. That's only normal when you are first
    starting out, and even after you have been at it for a while. Don't
    beat up on yourself when you fail. Just say to yourself, "Next!" You
    must move on. If you are using wise money management
    techniques, like 20-30 pip stops, you will survive to see another
    trade. This is all about preserving staying power. Don't second-guess
    your indicators (remember, "reading bars," MACD divergence, pivot
    points, trendlines, and price). You wouldn't dispute the dials and
    gauges in a plane, or you'd crash and burn. So, why doubt what your
    indicators are telling you. You must believe in them, and take
    "action" when they tell you to do so, BUT ONLY WHEN THEY TELL
    YOU TO DO SO! Have the courage to do so. And, now for the big
    one. NEVER LISTEN TO ANYBODY ELSE. TAKE YOUR OWN COUNSEL.
    CLOSE YOUR EARS WHEN YOU ARE TRADING. IT'S YOU AND YOUR
    CURRENCY. YOU HAVE NOBODY ELSE TO TURN TO. SO, DO IT. AND,
    STAY AWAY FROM NEGATIVE PEOPLE. DON'T TALK TO ANYBODY
    ABOUT THIS BUSINESS, UNLESS THEY ARE AS DEAD SERIOUS
    ABOUT IT AS YOU ARE. OTHERWISE, THEY WILL DRAG YOU DOWN.
    AND, BE HUMBLE. SAVE YOUR BRAGGING RIGHTS FOR LATER. THE
    FOREX WILL TAKE YOU DOWN, IF YOU TRY TO BECOME LARGER
    THAN LIFE. And, finally, focus on success. Be careful what you think
    about. Your thoughts will mould your actions and outcomes. If you
    are committed to the end result being successful, then you will get
    there. If you are always fearful, that affect your psyche. When you
    stumble and fail, just pick yourself up, dust yourself off, and get on
    with it. Don't be intimidated by a mistake, or a wrong decision. You
    will get better at this, especially if you keep a journal of all your
    trades, and study it to death. Be a professional. Be prepared.

    Currency Trading Strategy Number 37:

    I recently had a customer ask me what to do when price had headed
    north through all the pivot points for quite a run and lots of money in
    the bank, stalled at R2, and then continued its journey north.
    Answer: R2 is normally resistance. When price penetrated R2 headed
    north, and couldn't fall back through R2, R2 became support. It was
    a buy signal when price decided to continue its trek north.
    Remember, price is King. It will go where it wants to go. You must
    follow its lead, even if it already has put in quite a tear in one
    direction even beyond its average daily range. It will keep going in
    that direction if it wants to. Remember, currencies trend well. Don't
    buy too soon, don't sell too soon. Wait for convincing evidence that it
    has made up its mind. In this case, price played with R2, but never
    punched down through it with any sort of notion that it wanted to
    reverse course. Once it made up its mind to continue the journey
    north, all you had to do was follow suit. Don't fall prey to oxygen
    starvation at high altitudes like R2. Trust your indicators. Do what
    they tell you. This isn't about falling for your gut feel that price has
    gone "too far" up. It could go even further a lot further, in this case
    if it wants to.

    Currency Trading Strategy Number 38:

    "The more I practice, the luckier I get." (Wayne Gretzky)

    Currency Trading Strategy Number 39:

    You should not execute trades, as a general rule, in between pivot
    points. That area is NO MAN'S LAND. Wait for price to make up its
    mind on direction at a support or resistance level, supplemented by
    other indications of price direction "reading bars," MACD
    divergence, reaction to pivot point, trendline breakouts.

    Currency Trading Strategy Number 40:

    Don't use MACD for anything other than divergence. Recently, MACD
    on the 15 was trending up, leading unsuspecting traders to believe
    that price was headed north. However, price did a u-e at the main
    pivot point, and headed south to find the other end of its range at
    S1. You wouldn't see this sudden shift in MACD, because it is a
    lagging indicator. So, to summarize, just use MACD for divergence
    and nothing else.

    Currency Trading Strategy Number 41:

    You should only take trades in and around pivot points not in
    between, as stated previously. When price action centers around a
    pivot point, then take a look at the five minute to see what's going
    on behind the scenes. Because, you should have been focused on
    only the 15 min up to the point of price interaction with the pivot
    point. Now, you want to pay attention to what price has up its
    sleeve. In the above example (40), price faked out unsuspecting
    trades when it trended up through the main pivot point, only to tank
    as it did a price rejection bar on the 15 min chart. Of course, you
    wouldn't have seen this coming if you were only looking at the 15
    min. You would have seen the price reversal on the 5 min, and been
    ready to head south with price.

    Currency Trading Strategy Number 42:

    The absence of divergence between MACD and price simply suggests
    that MACD is confirming that the price trend is intact. But, don't be
    fooled by this synergy. Please review strategy number 40 to see
    what I mean.

    Currency Trading Strategy Number 43:

    Resistance levels (M3, R1, M4, and R2) are levels (or sell zones)
    where sellers can be expected to outnumber buyers, and push price
    lower. Correspondingly, support levels (S2, M1, S1, and M2) are
    levels (or buy zones) where buyers can be expected to outnumber
    sellers, and push price higher. These expectations are based on my
    program's interpretation of buyer/seller interaction in the last
    session. I think you will agree, after close inspection of the results of
    my pivot point calculations, that price hesitates, pauses, and decides
    on its course of action in and around pivot points. That's why you
    should never enter trades in between pivot points, while price is in
    transit, and in a state of transition.

    Currency Trading Strategy Number 44:

    Don't let anybody scare you off the forex by saying it is too risky. It
    is actually less risky than trading any other market, that is
    exchange-based. The forex cannot be "engineered," as stocks and
    commodities can be. Also, being a true seamless 24-hour market,
    there is less of a chance of your stops not kicking in. That's because
    the forex is highly liquid, trading ~US$1.5 trillion each and every
    day. It is the most liquid financial market in the world, bar none.
    And, you get good fills, with fast execution times.

    Currency Trading Strategy Number 45:

    On May 23, we have had a rather unusual day, in that price
    "reached" beyond its average range to put in 135 pips in two hours,
    just above R2, after starting its climb at the main Pivot Point. The
    Euro reversed course at the double top, and broke down through R2,
    to mark the end of its run to achieve its average daily range, or
    better in this case, within 12 hours of the start of trading for the
    current session. You would have noticed, of course, that the double
    top formation was also a "railway tracks" bar formation (if you just
    happened to have been looking at bars, instead of candles). Those
    two patterns occurring at the same time are a pretty powerful
    indication that price has run its course. So, keep your eyes peeled for
    price patterns per se, but also for combinations of patterns occurring
    at the same time.

  6. #6
    Bullish
    Join Date
    Jun 2007
    Posts
    99
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    Currency Trading Strategy Number 46:

    May 23 was supposed to be an M2/M4 day, given the up-close for
    the last session. But, the actual range came in at Pivot Point/R2.
    Trading is "shades of gray" ladies and gentleman. Pivot points are
    not cast in stone. But, they are usually pretty close.

    That day, the combination of Pivot Point and R2 achieved better than
    the average daily range for the Euro, well within the confines of logic
    behind my pivot point definitions. The central Pivot Point becomes a
    buy point (read, support), when it is breached to the upside
    convincingly, and so it became a reasonable starting point for price
    to commence its "range-finding mission" for the session. Likewise,
    R2 is a sell point (read, resistance), and so it was a viable target for
    selling pressure, as the Euro exhausted its "search" for the end of its
    range for the session.

    The main point in all of this is that the full range for the Euro was
    achieved within the parameters of the pivot point logic and rules,
    which is the most important point to get out of all of this. By that I
    mean that the four pivot points below the middle pivot point are all
    "buy" candidates, and the four pivot points above the middle pivot
    point (including R2) are all "sell" possibilities. Achieving the full
    range, or more than that as was the case May 23, is what it's all
    about, more so than strictly adhering to the M1/M3 or M2/M4
    windows of "buying" and "selling" opportunity.

    I hope you are beginning to see the power of pivot points in action.
    You only buy and sell in and around them – not in between, which is
    what we call "NO MAN'S LAND." Not the place to enter trades. The
    only caveat here is where price forms patterns like we saw that day
    above R2 with the double-top/railway tracks combination. Such a
    reversal phenomenon, especially with two distinct formations
    occurring at the same time, cannot be ignored.

    But, what is significant here is the fact that this "double whammy"
    took place after price had penetrated R2 to the upside, which to me
    looked like an exhaustion area – considering the fact that the last
    point of resistance had been broken. Then, you look for convincing
    evidence that price is going to continue its trek north, or do a u-e, as
    it did in this case, and head south.

    There are important lessons to be learned in all of the charts I post
    at this site. So, please study them carefully. There are parallels, as I
    am sure you can see, between one session’s price action and that of
    the previous one. In fact, given the nature of currencies trending
    well, every day pretty much looks the same, except for different
    actual ranges and different low and high points (read, iterations of
    the nine possible pivot point lows and highs).

    Price will always determine which set of pivot points it is going to
    work with, and that is why you always follow price's lead. That's also
    why I call price the "fifth indicator," and perhaps the most important
    one of the five I work with. By now, you will have learned more
    about the other four indicators, as you studied the previous currency
    trading strategy tips.

    Please study the charts I post at this site on a daily basis, as they
    offer important clues that occur each and every day! If you
    understand what you see in those charts, you can't help but prosper
    with your trading on a consistent basis.

    Currency Trading Strategy Number 47:

    Don’t be greedy. I heard it said recently by one of my clients that he
    walked away from a session with only 150 pips in his pocket, and left
    a lot on the table. Boy, for somebody coming from the stock world,
    as he did, he should been thankful for his catch of the day. The point
    is, if you start out as a newbie looking to carve out only 20 pips per
    session, then anything beyond that is gravy, and it will surely come
    over time.

    But, don’t forget the old adage, “Nobody can argue over profits in
    the bank.” If you see a profit, and want to take it, then do so, and be
    happy. You’ll live to see another day, and take some more profits.
    Just don’t always grab for the brass ring. This isn't about always
    hitting home runs. This is about having staying power, and taking
    one base at a time. When you have good reason to exit a trade,
    make your move, and be done with it.

    Currency Trading Strategy Number 48:

    Former Cleveland Brown's coach, the legendary Paul Brown, taught
    his football players a systematical/methodical procedure of
    understanding tasks to attain successful results in face of
    unforeseen, variable difficulties.

    So too with foreign exchange trading. Forex trading requires
    adherence to a set of currency trading strategy rules, which I have
    set out at this site.

    A wide body of research in behavioral finance shows that traders
    consider the loss of $1 twice as painful as the pleasure received from
    a gain of $1. That's why they take more risks to avoid losses than to
    realize gains. They end up buying high and selling low, contrary to
    conventional wisdom. Follow my currency trading strategy rules, and
    you'll avoid getting a closely cropped haircut when the forex tanks on
    you, as it did May 28.

    Currency Trading Strategy Number 49:

    I had somebody ask me why I waited until 03:00:00am New York
    time to make my move, in the mean time missing potential in
    advance of that timeframe. The answer is quite simple. That is when
    London trading kicks in, and that is generally the busiest session on
    the forex. You will notice that is when the Euro usually starts its
    major trend to find its average daily range of 76 pips. Those pips are
    usually put in within the first 12 hours of trading. Check it out for
    yourself. It happens each and every day, over and over again.

    Currency Trading Strategy Number 50:

    "Ascending Triangle": Price forms higher lows, and looks like
    somewhat of a horizontal line on top and a rising lower trend line.
    This formation is normally bullish. You take its height at its highest
    point, and measure that distance from the upper line to obtain the
    upside target. If you want to see an example of this type of triangle,
    please send me a note: (....................) and reference
    May 26/03.
    Last edited by linuxshell; 08-02-2007 at 04:44 PM.

  7. #7
    Bullish
    Join Date
    Jun 2007
    Posts
    99
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    Currency Trading Strategy Number 51:

    By combining "pivot point readings" with other signals like
    divergence, multi-tops, trendline breakouts, triangular patterns, etc.
    you can pretty much tell where price is going next. Normally, I
    would say that you should only enter trades in and around pivot
    points. But, given the large distances that can sometimes happen
    between pivot point areas, you then have to be on the lookout for
    other evidence of future price direction.

    Like I keep saying, trading is "shades of gray." Nothing is always
    black and white in this business. Trading is as much an art as it is a
    science. That all said and done, when price does encounter a pivot
    point, you can see that that point has a powerful influence over
    price. So, always be on the alert for that next point of interaction
    with the next pivot point, as it will have a distinct bearing on what
    happens next.

    Currency Trading Strategy Number 52:

    If you are trying to catch the major trend that unfolds during the
    London hours, but are afraid of getting your entry point figured out
    correctly, wait to catch the next entry point, as the Euro "reaches"
    for its average daily range of 76 pips. The next entry point will occur
    in and around the next pivot point that price passes through. Or, you
    may catch price as it tries to retest the pivot point it just went
    through. That way, you won't run the risk of getting in too early,
    when the trend tries to unfold in early trading. Sometimes, price
    fakes you out, and goes in one direction for a while, and then
    reverses course, before finally picking its direction. My favorite
    saying is, "He/she who procrastinates wins." What you are giving up,
    of course, are those initial pips of the trend, which may amount to,
    say 30 give or take, but you are more sure of capturing the
    remaining 46, as the major trend of the session matures.

    Currency Trading Strategy Number 53:

    I would like to remind you that the pivot points above the central
    "Pivot Point" have a "sell" bias, and the pivot points below the central
    "Pivot Point" have a buy bias. These biases hold true unless price
    action turns a pivot point's bias from sell to buy or buy to sell i.e.,
    from resistance to support or support to resistance.

    On June 6, 2003, you would have observed from price action that M3
    held its bias, but the pivot points below the central pivot points were
    turned from buy, or support, points into sell, or resistance, points. Of
    course, price action determined this.
    The other important point to make is that when the major trend
    reveals itself, as it did on that day (and does every day, within 12
    hours of the start of trading for the session), you should think along
    the lines of the bias. That day's bias in early trading was "short."
    Meaning, you should have forgotten how to spell the word "long."
    Scalpers want it both ways, but that doesn't work in the forex
    unless, of course, you want a short haircut. I say this because
    currencies trend well. Don't second-guess the trend until it reverses
    itself with bona fide signals. In other words, don't sell to soon, and
    don't buy too soon.

    Currency Trading Strategy Number 54:

    Keep those trading journals going! If you always trade the way you
    always traded, you'll always get what you always got.

  8. #8
    Bullish
    Join Date
    Jun 2007
    Posts
    99
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    Currency Trading Strategy Number 55:

    There is nothing that says you have to trade often, or even every
    day. In other markets, most professional traders catch only three to
    four really great trades a week, if that! Not so with the Forex. Here,
    the timeframe is more like a day. However, if you don't see any
    "ironclad" trades, then don't trade. Turn if off and go golfing.

    Slow down, and drive the speed limit. This isn't a race. After all, you
    are in control of the market, not the other way around. Don't feel
    pressured into doing something you feel uncomfortable about. Wait
    for those "perfect set-ups" to make your move. Same goes for those
    "bad-hair days." If you are feeling out of it, sit on your hands, or go
    do something else. Take charge of your trading life, before it takes
    charge of you, and your money.

    Currency Trading Strategy Number 56:

    I often get asked what parameters I use for MACD. I use the
    standard default settings. They work just fine. After all, all you
    should be using MACD for is divergence.

    Currency Trading Strategy Number 57:

    I have said it before that you should only trade in and around pivot
    points. The only exception to that rule is if you see a trendline
    breakout or a bar pattern, like price rejection, that gives a clear
    signal that price is about to reverse course. If price is in between
    pivot points, and you are not sure what to do, don't do anything! If
    there's nothing to do, don't do it. Patience is the hardest thing to
    master in the forex, or any market for that matter.

    Currency Trading Strategy Number 58:

    The major trend for the Euro usually starts revealing itself as the
    London hours kick in. Up to that point, price may "bait and switch"
    you into thinking it is going one way, when in fact it is setting up to
    go the other way. It can easily fake you out, before the London hours
    start to unfold. So, be patient and wait. Look for clues coming out of
    the previous session as to where price might be going ultimately. Did
    you see a "head and shoulders" pattern? Did you see a triangle
    pattern? Do you see price trending in any one direction over a period
    of time. Do you see any divergence in MACD (on the 1 hr and 15 min
    charts)? Do you see any channels, where price is looking to break
    either way? Play Sherlock Holmes. A little bit of detective work will
    go along way before you dive into the new session. Like the Boy
    Scouts say, "Be prepared!" Be in charge of your trading. Put your
    emotions in your hip pocket, and save them for later. Run your
    trading as if you were running a "bricks and mortar" business. Same
    principles and rules apply. No different. This is not about betting and
    gambling. This is serious business. After all, your hard-earned money
    is at stake. Protect it at all costs.

    Currency Trading Strategy Number 59:

    I have people asking me all the time why I don't post my trades in
    real time, or why they can't call me while I am involved in my own
    trading activities. The answer is quite simple. This page is dedicated
    to my belief in the old adage: "Give a man a fish, and feed him for a
    day - teach him how to fish, and feed him for a lifetime!"

    Plus, it would be very stressful and time consuming for me to take
    time away from my own work (and quiet time) to interact with a
    discussion forum. I am sure you will understand my position on this.
    I have customers in over 30 countries, and it would be a nightmare
    for me to react to each and every nuance that came along. A chat
    room is in our business plan, but at this writing, I don't have any
    idea of when that might happen. When it does, I will certainly give
    you lots of advance warning.

    I teach people how to fish. I don't give them the fish. I can
    remember when I first learned how to trade. I had my mentor sitting
    right by my side each and every step of the way. Then one day he
    upped and moved, and changed cities. He actually moved to a
    remote and secluded island to get away from city life. Nice move for
    him, but it left me in a state of panic. How could I possibly survive
    on my own? I can tell you, ladies and gentleman, that I really
    learned how to trade when I had to do it on my own, and those were
    real drops of sweat rolling down from my forehead all over my face.

    This is about you and the market, and you mastering your innermost
    psyche. Anybody can learn to trade the forex my way. But, what will
    get you every time is that little inner voice doubting your every
    move. And, then there's fear and greed that will bite you real hard
    too. It's the psychology of your mind that you must master. You
    must become disciplined and patient to a fault. You must react only
    to bona fide signals, that I teach here. Otherwise, you would be
    better off heading out to your local casino, and taking your chances
    there.

    The forex is not about gambling. It is about running a business,
    where there will be gains and losses. Your every effort and constant
    struggle should be to get a grip on those times when price goes
    against you. You are in charge. You can get the upper hand on price
    by trading "smartly," and using good money management
    techniques, that I also teach here. You won't win every time. But,
    with my system, you should come out ahead seven out of 10 times.
    The trick is to limit your losses to small ones, and let your profits
    soar.

    Getting back to going solo without an instructor at your side during
    each and every step of the way, I recall a friend of mine telling me
    how he learned to fly. After several practice flights with his instructor
    in the cockpit with him, they landed back at the airfield, and the
    instructor turned to Pal and said, "Now, it's your turn to take it up.
    I'm getting out. You're on your own buddy." Talk about anxiety and
    stress. Well, Pal took off and landed all by his little 'ole lonesome.
    But, he was pale and his knees were knocking when he got out of the
    plane back at home base. He has soloed ever since. It's his passion
    now. There's something about being able to do it yourself, without a
    partner holding your hand all the time. It's called "confidence
    boosting." If you can fly or trade by yourself successfully, there
    probably isn't anything else in life you couldn't do equally as well.
    Actually, Navy pilots who land on aircraft carriers make the best
    traders. But, that's another story for another time.

    I can tell you my friend learned more about flying in that one solo
    session than he did all the times his instructor went up with him.
    Same with trading. You can do it. Just believe it so. Dedicate yourself
    to becoming a master at it. Analyze, read, study, think. Ask
    questions. There is no such thing as a stupid question. Become
    passionate about your trading. Don't think of it as a get-rich-quick
    scheme. Do it because you love it. Do it as if you would do it
    anyway, even if you weren't making money. There has to be an
    element of fun in it for you. If it's all work, and no play, well you
    know the answer to that one.

    Don't get me wrong. I am here to answer your questions whenever
    you need my help. I am dedicated to your success, and your happy
    times with your family. Nothing would give me greater pleasure than
    to get an e-mail from you telling me how this has turned your life
    around, and that you are now happily making money trading the
    forex my way.

    Currency Trading Strategy Number 60:

    Don't get hung up on reading bars when you think you have caught
    the major trend. Once the trend is unfolding, you then look for a
    place to enter - around a pivot point. You look to reading bars to
    signal a change in the direction of the major trend.

    A double top in a downtrend means nothing. A double bottom does.
    So, a price rejection bar or double bottom in a major downtrend
    would signal a short-term reversal, and that's all. But, once you see
    the major trend unfolding say, on the short side you pretend you
    don't know how to spell the word long. Stick with the overall major
    trend that is unfolding.

    These comments relate specifically to the beginning hours of London
    trading, which is when the major trend reveals itself.

    Currency Trading Strategy Number 61:

    You need to get to the point where, when you look at a chart without
    any visual aids, you see indications as to where price is going. This
    has to become "second nature." At that point, you can trade with
    ease. And, your stress level will go down, because you will be in
    control of the market, not the other way around. This only comes
    with practice, day after day. This takes patience, and staying power.
    You must hang in there until you get it. Winners never quit; quitters
    never win.

    Currency Trading Strategy Number 62:

    At first, if you are fearful, don't trade until you see what you consider
    to be an ironclad set-up that you are familiar with an easy one.
    That may mean waiting out a session or two, but that's okay. There's
    no rush. I find with some people they seem to have to prove
    something to themselves or someone else. Some people think they
    have to scalp all day long for some reason that is beyond me. After
    all, you are in control. Take your time. Relax. Enjoy it. Sooner or
    later, you will see a bona fide set-up that you recognize, and bingo
    you're in. When in doubt, do nothing. When there is no doubt, do
    something, do anything pull the trigger.

  9. #9
    Bullish
    Join Date
    Jun 2007
    Posts
    99
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    Currency Trading Strategy Number 63:

    Unfortunately, you will not always get all the signals you need to pull
    the trigger. After all, this is as much an art as it is a science. You
    cannot always be 100% sure that you are doing the right thing. If
    you wait forever to get all your ducks lined up, you may wait a long
    time. My favorite analogy goes something like this: Pretend you are
    sitting in your garage at home wanting to go to work, but you are
    waiting for all the street lights along the way to turn green before
    you pull out of the driveway. Guess what folks? You'll never get to
    work. Same with trading. Sometimes, you just have to make an
    educated guess (based on the currency trading strategy
    recommendations contained at this site) and go with it. You won't
    always be right, but this isn't about being right. It is about making a
    decision, sticking with it, and reversing course if you have to. Accept
    getting stopped out as God's way of kicking you to a higher level.
    Just one more step to success.

    Currency Trading Strategy Number 64:

    Thanks to Tom for this: There are two choices to be made LONG or
    SHORT when a certain point in the session(M1, S1, R2, Pivot ... etc.)
    is reached. The BASIC rule is BUY (go long) below the pivot in the
    S1, S2, M1, M3 zone and SELL (go short) above the pivot in the Zone
    R1, R2, M2, M4. Obviously it isnt as simple as this and other
    indicators such as MACD divergence, reading bars, trends, and
    patterns all add to the question LONG or SHORT. Bang on Tom! Way
    to go!

    Currency Trading Strategy Number 65:

    I have said previously that you should make your buy/sell decisions
    around pivot points. However, for example, if price is meandering in
    between pivot points and then does a double top, that would lead me
    to believe that price is going down. So, there are times when you
    would want to make your move before waiting for a pivot point to be
    hit. Of course, there's nothing wrong with waiting for price to do so
    and then reacting.

    Currency Trading Strategy Number 66:

    Thanks to Harry for this one: He indicated that I sometimes refer to
    "price rejection." And, what does that mean. It simply means that a
    price reversal bar has formed, causing the bar in the middle to have
    a higher high than the bars on either side of it. The price bar in the
    middle is essentially a key reversal bar. And, what you have is a
    "swing change." That is, price is reversing course, and heading
    south. The same holds true when price is reversing and heading
    north. You then have the bar in the middle of the three-bar pattern
    with a lower low than the two on either side, and the one in the
    middle is the key reversal bar.

    Currency Trading Strategy Number 67:

    Repetition is the key to success in any endeavor in life, including
    trading the forex. The more you practice trade, the more you trade
    real money, the better you get. You just have to keep at it - over and
    over and over again. Persistence is the key. You're bound to get
    better at something if you do in constantly and don't quit. Don't let
    the market psyche you out. When you have a down day, just treat it
    as experience. Lessons learned. But, try to learn from your mistakes.
    Keep those journals going. If it's not written, it doesn't exist.

    Currency Trading Strategy Number 68:

    I get the impression that some of you are not paying enough
    attention to trendlines. They are very powerful. Price WILL change
    direction when it breaks the trend, regardless of what other
    indicators may be telling you. So, draw them, and let them be your
    guide. REMINDER: In an uptrend, as we saw June 25/03, as long as
    the trendline holds, buy the dips. In a downtrend, sell the rallies. In
    an uptrend, don't look to go short EVER! In a downtrend, don't look
    to go long EVER! Plain and simple.

    Currency Trading Strategy Number 69:

    Thanks to Stu G. for this one. I have been harping on using MACD
    only for divergence. But, Stu is right. I do on occasion, as I did June
    26th/03, use MACD to confirm the trend. If the price trend has been
    consistently down over a period of time, then it could very well be
    that when price tries to go counter-trend, it may just be a
    retracement or a temporary move in the opposite direction. I usually
    like to stick with the major trend. In a downtrend, sell the rallies; in
    an uptrend, buy the dips.
    Currency Trading Strategy Number 70:

    I was asked by some of my readership what happened Friday, June
    27, with all the wide-range bars on the 15-min chart. That was a
    tough day to trade, even for seasoned professionals. Lots of whip-
    sawing. Lots of stops got taken out. Trading patterns were
    dominated by end-of-quarter positioning. A good day to stand clear.
    So, be prepared for the next end-of-quarter, and the one after that,
    and the one after that, etc. Mark those dates on your calendar.
    Trading is as much about being organized and prepared, as it is
    about being good at it.

  10. #10
    Bullish
    Join Date
    Jun 2007
    Posts
    99
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    Currency Trading Strategy Number 71:

    Marathon runners have only one thing on their mind when they are
    running to cross the finish line. They NEVER look back. Same too
    with trading. You should focus on surviving for the long haul. Sure,
    you will stumble and fall. But, just pick yourself up, just yourself off,
    and carry on. Winners never quit, and quitters never win.

    Currency Trading Strategy Number 72:

    Beware of holiday situations like the long July 4th weekend. Trading
    tends to be thin, and it is difficult to produce meaningful pivot points.
    Best to just go golfing, and forget about it. There's nothing that says
    you have to trade every day. Get a life.

    Currency Trading Strategy Number 73:

    If you are having trouble with your entry points, I suggest you try
    waiting until you see a hammer or a spinning top, and then pull the
    trigger. You may wait a long time, but at least you will be sure of
    getting a good entry point, as these particular candles are powerful
    precursors to a shift in price direction. Have a look at any chart and
    see how many of these candlesticks you can pick out. You might be
    surprised at how many there are. For more information on these bar
    formations, please read my August, 2003 edition of my newsletter:
    Obviously, if you click
    on that link after August 1, 2003 the newsletter will be there. Before
    then, it won't.

    Currency Trading Strategy Number 74:

    I just returned from a meeting with a group of young traders who
    have been at the forex for the past two and a half months. They are
    making steady progress, and I am extremely proud of them. I
    thought I would pass along their observations that may prove helpful
    to your own trading. They have backed off short-term trading, and
    are more into position trading the forex using a longer timeframe
    taking cues from the 1 hour chart. They also believe that signals that
    occur on that chart are more powerful than those on the 15 min. For
    example, a signal on the 1 hour would have more weight than an
    indication on the 15 min. Basically, what they are saying is that you
    should wait on a trade for confirmation on the 1 hour chart before
    pulling the trigger, unless of course you see an ironclad setup on the
    15 min chart. Trading is shades of gray ladies and gentlemen. These
    ideas are working for them. That doesn't mean to say you can't
    experiment on your own. If you do and find something that works for
    you, please let me know, and I'll share it with the rest of the gang.

    Currency Trading Strategy Number 75:

    Clarification re Aug. 22/03 chart, thanks to Bill: Bill quite rightly
    pointed out in the chart for August 22/03 that there were hammers
    at 3:01 and between 5:01 and 6:01 that didn't take. My answer to
    him was that such a candle should be complemented by some other
    indication of a shift in price direction. For example, in the cases he
    cited above, price did not break the down trendlines - so, in effect,
    the hammers' supposed effect was nullified. To conclude, bar
    formations that should signal a change in price direction should be
    accompanied by other signals, including pivot points. In other words,
    what happens to price around a pivot point when you see a hammer?
    Does the pivot point support what the candle is saying? Thanks Bill
    for this.

    Currency Trading Strategy Number 76:

    I was recently asked where one could find volume figures for a
    currency. None of the popular sites carry it. Nor is it necessary as the
    Forex is a very liquid market. Volume is somewhat redundant
    anyway in that regard. You just need to use technical analysis to
    trade the Forex.

    Currency Trading Strategy Number 77:

    Pay attention to that news. I had been calling for an advance in the
    euro and Swiss franc and, sure enough, they both popped on bad
    unemployment news in the U.S. September 5, 2003. News is not
    noise in the Forex.

    Currency Trading Strategy Number 78:

    There are talking bulls and bears and there are real bulls and
    bears. The real ones are reflected in volume and open interest. But,
    these numbers are not available for inter-bank currency trading.
    However, they are reported for futures markets, which represent a
    good proxy for sentiment because they are primarily a vehicle for
    speculation.

    Turning points in currency markets often coincide with extremes in
    open interest levels, which represent extremes in speculation. The
    key here is to watch for extreme levels and extreme changes in both
    open interest and volume to signal a possible change in trend.

    Open interest numbers are of little use intraday. However,
    knowledge of a change in trend or extreme speculation in a particular
    currency based on open interest and volume can be valuable
    information for any trader in any time frame. Thats where an
    understanding of how COT works can improve your chances of
    detecting the underlying bias to a particular FX currency based on its
    futures counterpart, and anticipating its next move.

    As at September 2/03, the commercial traders were extremely long
    with their net futures positions on the euro FX and the Swiss franc
    FX, versus the funds, which were extremely short. When you see
    such extreme divergence between these two camps, you know that
    price will probably follow the commercial traders lead.

    The euro FX and Swiss franc FX represented good position trades to
    the long side at that time. A good buy-and-hold situation for position
    traders. Sure enough on September 5/03 we had bad unemployment
    numbers coming out of the U.S., and both currencies popped. Who
    could have guessed?

    Currency Trading Strategy Number 79:

    I think there is a misconception out there that you have to trade only
    the 15 min chart. You can also trade off the 1 hr and daily charts. It
    just lengthens the cycle. For example, when I called the euro and
    Swiss franc to rise, you could have taken a position on the daily chart
    and rode it up. That's all I'm saying. Likewise, you can wait to take a
    position until you see a valid entry point on the 1 hr chart. Etc.

    Currency Trading Strategy Number 80:

    For newbie traders, it is probably best to steer clear of Mondays, the
    day after a holiday weekend and end-of-quarters where there is a lot
    of position squaring going on.

    Of course, theres more to be learned about currency trading
    strategy in my original book on trading and the two e-books on
    trading the forex available only at currency trading strategy You
    automatically get all three when you order at that link. If you are
    reading this page, you probably already have these books, and are
    reaping the benefits.

  11. #11
    In Profit acidguy's Avatar
    Join Date
    Aug 2007
    Posts
    186
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    wow, thx friend.

    probably the next time you can supply us with a word file of someting like that.
    it took me some time to put it in 1 and print it.

    but anyway, great info there

  12. #12
    Piplet
    Join Date
    Feb 2008
    Posts
    15
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    whew! i got a sore eyes after reading! lol

    I think i will just have to take time to digest them all..

    Well anyway, thanks for the info..

  13. #13
    In Profit great0ne's Avatar
    Join Date
    Feb 2008
    Location
    lembangan maliau - banjaran crocker
    Posts
    115
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    very good info....

    good job bro...thx

  14. #14
    Bullish
    Join Date
    Feb 2008
    Posts
    81
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    good one
    i am gonna keep this printed out and put in my trading desk
    [url=http:Rule 14

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Disclaimer
2005-2017 © FXOpen All rights reserved. Various trademarks held by their respective owners.

Risk Warning:: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgment as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.

FXOpen Markets Limited, a company duly registered in Nevis under the company No. C 42235. FXOpen is a member of The Financial Commission.

FXOpen AU Pty Ltd., a company authorised and regulated by the Australian Securities & Investments Commission (ASIC). AFSL 412871ABN 61 143 678 719.

FXOpen Ltd. a company registered in England and Wales under company number 07273392 and is authorised and regulated by the Financial Conduct Authority (previously, the Financial Services Authority) under FCA firm reference number 579202.

FXOpen does not provide services for United States residents.

Join us