Day Trading 101
November 2, 2015 at 2:20 pm #56987
Hi Sebastian – for Kiwi, I believe I entered late on that one and price was already below the ribbon….so I just put my S/L a little lower for breathing room.
For Gbp – it was a good set-up, but the candle was too long and too far below ribbon – long candles usually re-trace….either you widen your stop, or wait for next entry which happened 4 candles later – this is what I have found works.
I’ve attached nasdaq chart to show how to re-enter.
Hope this helps.
Cheers.November 2, 2015 at 3:17 pm #56992
do you use this technique for the nasdaq or other indexes a lot?November 2, 2015 at 3:39 pm #56993
Hi Sebastian – I often use it for nasdaq, I haven’t tried it on other indexes.
Cheers.November 2, 2015 at 4:18 pm #56998
Thanks very much Raj.
The nasdaq just broke all-time highs. Just see how they’re kidding us around 🙂 Maybe they provoked this small “crash” on purpose to earn twice haha But Draghi helped a lot I think 🙂
I’m getting enticed by a long-term position in this index, what’s your view?November 2, 2015 at 4:27 pm #56999
I’d like to ask about the usd/jpy chart just a few minutes ago:
The moving averages are crossing each other, but it’s a big candle. I drew the fibs just around the big candle – is that correct? It retraced 50%. By the time the moving averages move apart from each other (two candles further), we break the previous bearish candle high. Is this a good setup or would you avoid it and why?November 2, 2015 at 4:44 pm #57001
Great setup! Entry would be at the start of the candle after the red candle because that’s when you get your averages separating.
First I was racking my brain thinking my chart didn’t look anything like yours, because you said usd/jpy, then I realized you were talking about usd/chf
Cheers.November 2, 2015 at 9:38 pm #57005
Hi Folks, just a few trades I took during Asian Session. Entries and re-entry examples using this system.
Cheers.November 3, 2015 at 2:34 am #57009
Just wanted to tease you so I said usd/jpy haha 🙂
Thanks for your help.
Do you always re-enter when candles go back to or below/above the ribbon like in your nzd/jpy examle? So even after a long time of the moving averages crossing each other.November 3, 2015 at 7:11 am #57011
Hi Sebastien I do it once or twice, but you are right you have to be cautious because at some point the smaller TF may have bigger retrace and stop you out.
So when looking for set-ups, since I trade 5 and 15min charts, I scan my 30 and 60 min charts to see which direction to trade in.
If 60min chart is below ribbon, I look for sells on the 15min chart and same for 5min chart if the 30 is under the ribbon.
Cheers.November 3, 2015 at 8:07 am #57012
Thanks Raj that makes a big difference. So far stopped out 3 for 3!November 3, 2015 at 8:12 am #57013
Ouch….Barbara, if you like, post them and we can see what went wrong.
Cheers.November 3, 2015 at 8:23 am #57014
I will once I figure out how to do that😮November 3, 2015 at 8:28 am #57015
I will once I figure out how to do that😮November 3, 2015 at 9:51 am #57020
Raj I went short on EUR/JPY at the red candle as the ribbons separated. Stopped out by next candle. Example attached I think!November 3, 2015 at 10:46 am #57029
Hi Barbara, I know that the Daily is in a down trend, but just have a quick peek at the 30 or 60 min chart before entering on the 15 chart. You may not have entered based on what was happening on that time frame.
This is my only beef with that trade.
Hope this helps.
Cheers.November 3, 2015 at 2:17 pm #57045
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first attempt 3:1 after some back testing.
I think it will go much more if I apply fibo swings system, but playing save for now.November 3, 2015 at 2:52 pm #57046
Hi Moaied, careful with this one – its sideways and messy for the last 5 days.
Cheers.November 3, 2015 at 3:02 pm #57047
Hi Raj, just to let you know, so far, so good. I have started on demo today. By following all rules you explained, big candle, 50% retracement, higher TF trend etc. I have some good results. No questions for now. Watch me out later. 🙂 Thanks again man.November 3, 2015 at 3:32 pm #57048
I like that point Raj.
I noticed that it’s better you leave those charts alone when the candles have lots of shadows to either direction. So they’re just messing around and the SL could get hit easily.
I’ll post my results after 100 trades, so I have a large sample size and I know whether I’m successful. I’m trading 0.01 lots on a live account. The reason is because it’s the perfect opportunity to see how the broker deals with slippage, SL hunting etc. These small lots do not cost anything, one trade for 50 cents or so if it goes wrong. So I like that better than trying it on demo.November 3, 2015 at 3:53 pm #57049
Sebastian, Do you think that brokers can hunt for micro lots?
PLease let us know your results.
Good luck!November 3, 2015 at 4:03 pm #57050
Maybe the broker gets envious if I earn 50 cents 🙂November 3, 2015 at 4:20 pm #57051
TJ, sounds great.
Sebastian – thank you for being a beta tester, I’ll love to see your findings, thanks.
And of course, my trades for NA session attached.
Cheers.November 3, 2015 at 4:30 pm #57054
thanks for the examples.
May I ask why you entered on the 5min gbp/usd example, because it’s a quiet large candle? Waiting for a retrace, would have caused you too miss out. What was the reason for you to enter? I like the lower shadow of the bearish candle before that and the crossing / separation of the MA immediately after the strong bullish candle.
Do you use this system at the end of the NY session or do you find it reliable? I’m asking because I imagine many people to take profit, so we get some counter trend moves, which could hit our SL on the smaller TFs.November 3, 2015 at 4:34 pm #57055
I’d also like to ask about the eur/usd 15 min chart:
I’d skip this setup, because we’re close to the 38.2 resistance (drawn on the 1h chart) and we’re in a bearish market on the bigger timeframes (1h and bigger).
Seems like nobody cared about Draghi’s speech today, because he did not say anything new – was just old stuff repeating again. Looking forward to NFP on Friday 🙂November 3, 2015 at 5:07 pm #57058
I have started a new demo account just to test this out. I will try and keep you updated as to how it is going.November 3, 2015 at 5:20 pm #57061
Maybe the broker gets envious if I earn 50 cents 🙂
Hahahaha, you never know! 🙂
I’m asking because I imagine many people to take profit, so we get some counter trend moves, which could hit our SL on the smaller TFs.
This is a very good question Sebastian. From my part, I would rather trade the beginning of a session, like you said, to avoid chaotic move.November 3, 2015 at 6:17 pm #57062
Sebastian, I try to avoid trading after 1-2pm NYT, sometimes even noon. And euro and Chf usually go sideways until London session, not always but a lot of the time.
About Gbp, a funny thing happened today. One of our fellow traders, Florent, posed a question for me in the fibs thread about daily fib swing, so as I was drawing it out for him, price had just hit a daily trendline, because I always have my daily charts up alongside my lower TF ones. So it happened by chance, I didnt care what size that candle was, I knew there was going to be a move to the north….how much of a move I didn’t know, so I kept entering, and re-entering.
So thank you Florent for your question today!!
Barbara – sounds good keep me posted.
CheersNovember 3, 2015 at 10:46 pm #57075
I had two trades today for the Asian Session. One was stopped out by a few pips before going in my direction…..I wasn’t watching otherwise I might have re-entered, but c’est la vie 🙂
Cheers.November 4, 2015 at 5:39 am #57087
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Many thanks for sharing . I have attached aUSDJPY30m chart . Not sure if this will be a good trade? Just to ensure I understand what you have taught. Many thanks.November 4, 2015 at 7:29 am #57092
Hi Jim, yes there was a great trade there.
CheersNovember 4, 2015 at 8:56 am #57105
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Thanks Raj for confirming to further increase my understanding of your method.November 4, 2015 at 9:21 am #57111
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So thank you Florent for your question today!!
You’re welcome 🙂November 5, 2015 at 2:36 am #57176
you said the London session usually makes a high/low first and the price tends to go towards that point for the rest of the day.
I’d like to ask about the Asian session. I have noticed that we usually get retracements of the price action in the American session later on in the Asian session. This reverses again in the London session. Is that correct or do you think it was just a coincidence I observed that?November 5, 2015 at 7:11 am #57190
Yes to the most extent that is the case. If NA creates A-B, then Asian may create C-D etc.
CheersNovember 5, 2015 at 7:40 pm #57257
Thanks Raj for this Thread. I want to know if it is necessary for price and ribbon to be above the Daily S&R levels before one can iniate long and short positions? Secondly, how do you determine your stop loss? Do you trade this strategy as a stand alone or you intergrate it with the Fib strategy?
Thanks for your time!November 6, 2015 at 12:19 am #57273
Ambrose, if you get a long signal but its just under daily res, dont take it, and same for shorts at daily support.
If you trade say the 5/15min chart, make sure the 30/60min chart is trending.
If we want to take a long on the 5min, make sure price is above the ribbon on the 30min chart.
You don’t need fibs for this strategy, but you can if you like.
S/L goes a little above/below the ribbon.
Hope this all makes sense.
CheersNovember 6, 2015 at 3:56 am #57280
Thanks for your prompt response Raj. Sure your explanation did make sense. I intend to implement this strategy on the 1H TF. Which TF will be the “Parent” to the 1H TF? Is the 4HR TF or Daily TF? Does the rule of Price being under and above the Ribbon apply?
How does this strategy perform in a side way market?
Cheers!November 6, 2015 at 4:44 am #57283
Hey Raj,you have become a Mentor in your capacity. I plotted 55 EMA to help determine the trend and i think it complement this strategy. You can take a look at it and share your opinion.
I took GBPCHF on the 1HR TF. Lets see how it will play out.November 6, 2015 at 5:23 am #57290
Hi Fasih, you can back test if you like, but its better to demo I think.
I don’t like trading the Asian session, but just did a couple just to show examples for you guys. (and to put some pips in my pocket)
U wanted to say you dont like trading the Asian pairs and not Asian session, right?November 6, 2015 at 7:22 am #57294
My first shot at this strategy with GBPCHF on the 1HR TF came out 1:3. Hope to see more of this.
Thanks for your generosity Raj.
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