This was a perfect setup for a 10 plus pip trade. The dashed line is a 50 sma for trend. Read and black lines are pivots. When you have time could you review how to use fib retracements as SR to keep me out of bad trades. I'm only having a 50% win rate and need help. Should I just stay with the the eurusd and the gbp/usd?
I wonder the same thing. I do feel that the set up I posted had a much higher chance of success because everything lined up perfectly, a retracement and then a continuation downward. Only going with the trend could be too restrictive.
[...]could you review how to use fib retracements as SR to keep me out of bad trades
PA close to a fib level doesn't mean it will be a bad trade. Point is that this system is intended to scalp, so trading close to critical levels (fibo, but also keep an eye on big/mid figures and daily pivots) can means many things on a very short term that would affect our scalping
Greg Jones, interesting, the SMA's are interesting, but we would need to test it more to ensure it works, but perhaps only taking trades in the direction of the daily trend is not a bad thing. It would mean fewer trades, but you could go for a few more pips per trade and perhaps watch a few additional pairs to compensate for loss of trades.
In the last day i have been testing this system on 4 pairs (EURUSD, GBPUSD, USDJPY and USDCHF). I have had 19 trades, 5 profitable and 4 non-profitable. If i had taken the trades only in the direction of the daily trend, then 3 of those losses would of been trades never executed and the last trade would not of been executed as the pair was sideways at the time of trading.
So i think alot of merit can be just to take trades on the 5 min chart in the direction of the daily trend. Doing something as simple as this may get rid of more false and losing trades and any other indicator or SMA lines.
This is the indicator i use to give me the daily trend.
Thanks for the indicator but I don't seem to have it for fxcm. What I'm doing is a trial of 10 trades going only with the trend when the zz swing gives me an signal on the five minute. This would be entering after a retracement within the trend.
Great work guys. Nothing wrong with adding a SMA or anything thats helps you filter bad trades. My only worry is that were getting away from the simplicity however, we need to increase the accuracy so that may be the way to go.