Mouteki/ Demark Trading

[Sweet Pip]

Hi all,

I've been looking at this method ..(well the Demark part, not so much the Mouteki part)...for awhile now and have had pretty good demo success with it.

Here's a live trade I took which is pretty much a text book setup even for the 5min chart. According to Demark this would be the second TD breakout qualifier (Validation of the trendline breakout – the second TD breakout qualifier. Forex with Alpari)

Took the short at 121.49...exited at 121.29 for 20 pips

[forexdarling]

Originally Posted by Sweet Pip

Hi all,

I've been looking at this method ..(well the Demark part, not so much the Mouteki part)...for awhile now and have had pretty good demo success with it.

Here's a live trade I took which is pretty much a text book setup even for the 5min chart. According to Demark this would be the second TD breakout qualifier (Validation of the trendline breakout – the second TD breakout qualifier. Forex with Alpari)

Took the short at 121.49...exited at 121.29 for 20 pips

the system says higher time frame gives more accurate information than the smaller time frame, why do you use 5min?

[takingthepip]

Originally Posted by forexdarling

the system says higher time frame gives more accurate information than the smaller time frame, why do you use 5min?

Also, the first TD point on your chart does not have 2 wicks to it's left higher than itself, only one. That would have prevented me from drawing a line there, even though the trend is obvious.

I really need to read more of Demark though.

[takingthepip]

Here's a live trade, (in demo account), of a GBP/JPY breakout that would have been profitable IF I had been awake at the time the first candle opened below the line.

I got in far too late and it retraced, naturally. Notice my huge stop loss compared to a 50 pip T/P. This is NOT how to do this....but, hey, it's just pretend money and valuable lesson learned. It may hit T/P yet.

:-)

[Sweet Pip]

Originally Posted by forexdarling

the system says higher time frame gives more accurate information than the smaller time frame, why do you use 5min?

I use the 5 min because I work full time and to wait for the hourly or 4Hr setups to occur usually doesn't allow me to take benefit of them. I try to find the mini trends within the bigger trends and instead of going for big pip movements, I go for smaller ones to get 5-20 pips at a time.

[forexdarling]

Originally Posted by Sweet Pip

I use the 5 min because I work full time and to wait for the hourly or 4Hr setups to occur usually doesn't allow me to take benefit of them. I try to find the mini trends within the bigger trends and instead of going for big pip movements, I go for smaller ones to get 5-20 pips at a time.

i understand your plight, but you have to obey the system just to save your money, but it can be a good system if you can be around when it breaks the trend line. the stop loss might be much considering the speed compared to the take profits.

[LadyPip]

Actually, according to his book, DeMark states that you can use his setups on any timeframe. It is just important to remember the rules for drawing trendlines and the qualifiers for entering trades. He himself mainly used daily charts.

I am interested in how the 5 min chart is working for you Sweet Pip. Do you find that you get many fakeouts on a smaller timeframe or do the qualifiers do a decent job of keeping you out of those trades?

[LadyPip]

Here are a couple of trades that I am watching.

[forexdarling]

Originally Posted by LadyPip

Actually, according to his book, DeMark states that you can use his setups on any timeframe. It is just important to remember the rules for drawing trendlines and the qualifiers for entering trades. He himself mainly used daily charts.

I am interested in how the 5 min chart is working for you Sweet Pip. Do you find that you get many fakeouts on a smaller timeframe or do the qualifiers do a decent job of keeping you out of those trades?

but you have to understand that there are more noise on the lower time frame, and the stop loss will be relatively small compare to the higher time frame, which will on most cases trigger your stop loss. now if that is the case don't you think trading off the higher time frame is important?