The Trend Is Really Your Friend
Everyone who has really traded has heard the dictum 'the trend is your friend'.
You have always been advised to trade with the trend and it is sound advice.
In this blog,I have shown how you can make money with an overextended market. When you look at it, this is what the 144 MA technique is.
You really have to be careful when you trade against the trend. If the trade stalls, get out and re-assess the market.
The last trade posted here was such a trade. I cut my losses after seeing that what should have happened had not in a healthy time frame.
So how do you trade with the trend? You need an indicator that shows you that. You also need a timing indicator to get in at the right time.
If you have been reading this blog, you would have seen that I am partial to the 30 minute chart. I trade the 30 minute chart because I feel that it is a long enough time frame to weed out market twitches.
When I see a trade setup in this time frame, I can fell that I will not be whipsawed.
This leads to confidence and I can stay with the trade when it is in a lull or my profit target has not been met.
So again,how do you determine the trend? As has been said, you need an indicator that can reliably show you the trend. This in my opinion should be a moving average.
You also need a timing indicator, which in this case should be an oscillator.
To then make the trend your friend, you need to determing what settings will work for both the moving average and the oscillator.
If you have bought the my ebook, you will know these settings. I will begin to post trades here that follow the trend.
Stay tuned..........
To learn these powerful settings, go to HERE
Friday, December 28, 2007
Update On Another 144 Trade
Clunker
This is an update on the last trade. This trade failed to make money. Welcome to the realities of trading. I lost 40 pips on this trade. I cut my losses after seeing that a downtrend had established itself.
Good thing I cut my losses quickly because the market went into a tailspin after that with the dollar strenghtening very considerably. I have since made the 40 pips back on other trades.
Stay tuned for other trades and trade ideas.
This is an update on the last trade. This trade failed to make money. Welcome to the realities of trading. I lost 40 pips on this trade. I cut my losses after seeing that a downtrend had established itself.
Good thing I cut my losses quickly because the market went into a tailspin after that with the dollar strenghtening very considerably. I have since made the 40 pips back on other trades.
Stay tuned for other trades and trade ideas.
Friday, December 14, 2007
Another 144 Trade
New Trade
Below is a new trade I found today in the EUR/USd pair. The chart is as it is developing. The criteria for entry are marked on the chart. If you are not familiar with this set up or criteria, go to the older posts.
T1 is the profit target. Right now, it is 140 pips away. Let's see how many of those pips we eventually capture. We will exit with more than 50 pips or when price touches the 144 MA.
I will post an update later.
If you want to learn about my trading techniques, please visit
http://learnforexoption.com
Below is a new trade I found today in the EUR/USd pair. The chart is as it is developing. The criteria for entry are marked on the chart. If you are not familiar with this set up or criteria, go to the older posts.
T1 is the profit target. Right now, it is 140 pips away. Let's see how many of those pips we eventually capture. We will exit with more than 50 pips or when price touches the 144 MA.
I will post an update later.
If you want to learn about my trading techniques, please visit
http://learnforexoption.com
Monday, December 10, 2007
Thursday, December 6, 2007
MA 144 BUY SET UP IN THE EURO
Another MA trade
Hello Successful Forex Traders. we are sstill waiting for the previous trade to pan out. However, I found another trade in the euro that has reached T1-Target 1 or 1st profit target. Here is the picture:
The chart is self explanatory.
The set up we are looking for is, price must be at least 110 pips away from the 144. Stochastics, MACD and RSI must be in the buy zone.
Also, look for price to may be stay down towards the end of the trading day because the retracement will surely come the next trading day.
Here is the aftermath of this trade, good for 64 pips to T1.
This trade still has some life left. This is where trade management comes in . If you were in for 10 lots, you might want to take 8 off and trail profits on 2.
For me 10 lots x 64 pips = $640 for the day. I'm out and will wait for the next trade set up.
If you are patient, you can get at least 3 trades like this per week.
I am going to write about using market internals soon, especially, how to find out what a market's strength is based on price.
In the mean time, read this book:
Hello Successful Forex Traders. we are sstill waiting for the previous trade to pan out. However, I found another trade in the euro that has reached T1-Target 1 or 1st profit target. Here is the picture:
The chart is self explanatory.
The set up we are looking for is, price must be at least 110 pips away from the 144. Stochastics, MACD and RSI must be in the buy zone.
Also, look for price to may be stay down towards the end of the trading day because the retracement will surely come the next trading day.
Here is the aftermath of this trade, good for 64 pips to T1.
This trade still has some life left. This is where trade management comes in . If you were in for 10 lots, you might want to take 8 off and trail profits on 2.
For me 10 lots x 64 pips = $640 for the day. I'm out and will wait for the next trade set up.
If you are patient, you can get at least 3 trades like this per week.
I am going to write about using market internals soon, especially, how to find out what a market's strength is based on price.
In the mean time, read this book:
Wednesday, December 5, 2007
Buying Opportunity
Buy Set Up On the GBP/USD 30-minute Chart
If you read the last post, I showed you a new very profitable set up to make huge gains in the forex market.
The gist of the technique is to plot the MA 144 on your 30-minute chart and when price is 110 pips or more away from it, you buy or sell.
I will add that the trade's chance of success is greatly enhanced if the market stayed down or up towards the close of the trading day.
What happens is that the next day, price will start to go the other way. Here is a new trade that I found today:
The chart as you can see is well illustrated. The stochastic, the RSI and the MACd are all in the buy set up as discussed in the ebook.
Price is more than 200 pips away from the 144 which is the pink line.
It is now time to buy.
Today is 12/5/07. I will post an update later this week. This trade should make up to 120 pips and above.
Dateline 12/10/07
Hello traders, today I am posting the aftermath of the trade above so that you can see the continuity on one page.
We entered this trade because it filled all our entry criteria - we had the valley in the MACD, stochastic and RSI were in the buy zone and price was more than 110 pips away from the MA 144.
As you can see from the chart, we experienced some adversity. This is where being confident about your system comes in. If you had panicked, you would have taken a loss here. What I did was add to my position at what I considered a better price at b, but my view of the market was still the same- we were due for a good up move.
If you made the trade at b, you would have erased the deficit at c, and then on to more than 250 pips in profit from b, and also tack on the original position's profit too!
I stayed in because the I believed that for the market to go really lower, we had to go up first.
Also, the initial trade from a, was slow to make money because we put it on just before the dreaded non-farm payroll report. Usually the day before it comes out the market does not really do much.
In spite of this we still came up winners.
If you want to learn about the indicator settings taught in this post, go to http://learnforexoption.com
If you read the last post, I showed you a new very profitable set up to make huge gains in the forex market.
The gist of the technique is to plot the MA 144 on your 30-minute chart and when price is 110 pips or more away from it, you buy or sell.
I will add that the trade's chance of success is greatly enhanced if the market stayed down or up towards the close of the trading day.
What happens is that the next day, price will start to go the other way. Here is a new trade that I found today:
The chart as you can see is well illustrated. The stochastic, the RSI and the MACd are all in the buy set up as discussed in the ebook.
Price is more than 200 pips away from the 144 which is the pink line.
It is now time to buy.
Today is 12/5/07. I will post an update later this week. This trade should make up to 120 pips and above.
Dateline 12/10/07
Hello traders, today I am posting the aftermath of the trade above so that you can see the continuity on one page.
We entered this trade because it filled all our entry criteria - we had the valley in the MACD, stochastic and RSI were in the buy zone and price was more than 110 pips away from the MA 144.
As you can see from the chart, we experienced some adversity. This is where being confident about your system comes in. If you had panicked, you would have taken a loss here. What I did was add to my position at what I considered a better price at b, but my view of the market was still the same- we were due for a good up move.
If you made the trade at b, you would have erased the deficit at c, and then on to more than 250 pips in profit from b, and also tack on the original position's profit too!
I stayed in because the I believed that for the market to go really lower, we had to go up first.
Also, the initial trade from a, was slow to make money because we put it on just before the dreaded non-farm payroll report. Usually the day before it comes out the market does not really do much.
In spite of this we still came up winners.
If you want to learn about the indicator settings taught in this post, go to http://learnforexoption.com
Sunday, December 2, 2007
How To Predict Profitable Turn-Around Points
RESEARCH UPDATE
This post is to show you a new finding that I made after publishing the ebook.
This will help you to pick the better trades.
Many times, the indicators get maxed out and will give you about 20-30 pips if you get a great entry. You have to recognize the play and jump on it.
Every day or every few days, you get the big one that will give you up to 100 pips. So how do you recognise these plays?
OK, we have already identified the special moving average as taught in the ebook. This matches the range of a full days worth of trading. My favorite chart to trade is the 30-minute chart.
What we now need is a MA that will help us put any current price in perspective.
This will be the MA 144.
Make sure that price is 110 pips or higher away from the MA 144 and fade the move. This means that if the price is 120 pips on top of the 144, sell and hold on for a pretty good gain, at least up to the special moving average.
On the other hand, if price is about 120 pips below the 144, look to buy. At this point, you will find that the MACD, RSI are also lined up.
This is a trade I recently did with this technique. The above is a 30-minute chart of the GBP/USD. Price had made a big move down and having measured the move from the MA144, I found that It was more than 110 pips.
If you look at the picture, you will find that my stochastic was in the buy zone. All the other indicators that I use like the MACD and RSI were also in the buy zone.
I entered a buy order and reached my T1 for a 72 pip gain. That was all I needed on that trade. You can do the math, with 10 mini-lots, that was $720 in less than a day of trading!
The move went on to make 120 pips at the time that I took the picture.
Make sure that you are doing this on a 30-minute chart. Also a caveat: I have found this to work only with the GBP/USD and the EUR/USD.
If you have the ebook, contact me for clarification. To get the ebook, CLICK HERE.
This post is to show you a new finding that I made after publishing the ebook.
This will help you to pick the better trades.
Many times, the indicators get maxed out and will give you about 20-30 pips if you get a great entry. You have to recognize the play and jump on it.
Every day or every few days, you get the big one that will give you up to 100 pips. So how do you recognise these plays?
OK, we have already identified the special moving average as taught in the ebook. This matches the range of a full days worth of trading. My favorite chart to trade is the 30-minute chart.
What we now need is a MA that will help us put any current price in perspective.
This will be the MA 144.
Make sure that price is 110 pips or higher away from the MA 144 and fade the move. This means that if the price is 120 pips on top of the 144, sell and hold on for a pretty good gain, at least up to the special moving average.
On the other hand, if price is about 120 pips below the 144, look to buy. At this point, you will find that the MACD, RSI are also lined up.
This is a trade I recently did with this technique. The above is a 30-minute chart of the GBP/USD. Price had made a big move down and having measured the move from the MA144, I found that It was more than 110 pips.
If you look at the picture, you will find that my stochastic was in the buy zone. All the other indicators that I use like the MACD and RSI were also in the buy zone.
I entered a buy order and reached my T1 for a 72 pip gain. That was all I needed on that trade. You can do the math, with 10 mini-lots, that was $720 in less than a day of trading!
The move went on to make 120 pips at the time that I took the picture.
Make sure that you are doing this on a 30-minute chart. Also a caveat: I have found this to work only with the GBP/USD and the EUR/USD.
If you have the ebook, contact me for clarification. To get the ebook, CLICK HERE.
First Things First
These instructions are for those who have bought The Successful Forex Trader ebook. If you have not, go to http://learnforexoption.com
To practice the techniques taught in the ebook, you need to get a demo account. You can get a free demo account here or here
Select Meta trader platform 4 or Meta trader 4, so that your chart and mine can look the same.
Good luck.
To practice the techniques taught in the ebook, you need to get a demo account. You can get a free demo account here or here
Select Meta trader platform 4 or Meta trader 4, so that your chart and mine can look the same.
Good luck.
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