Alternative Technical Templates.

[Tess]

Thread started to post up & discuss set-ups & technical behaviour outside of the main "system" theads.

[tonymand]

Well this is exciting to be involved in a new thread. Couldnt resist getting in early. If you understand supply and demand issues then what you are really trying to do is to get in as early as possible onto a new trend and get out the door before everyone else. This can be done using price alone (thats right guys not an oscillator in sight!). I have taken the trade from this afternoon that Tess talked about in the 40-100 pip thread. On the higher timeframe 4H we note an uptrend as defined by the trendline (these and SR are all that is used, ignore SMA just happens to be on the chart). This area as it approaches the trendline is an area of supply further back in the chart denoted by the blue line. This is the set up since there is a high probability of a turn at this point. We now switch to a lower timeframe and for this example I have used the 5 minute. We get in as soon as we have a trend change here. You could use a candlestick pattern or perhaps peak/trough (if the trend is so strong there are no PT then drop down to 1 minute). In this example a break of the downtrendline provides an excellent opportunity. Any trail method to manage the trade would be appropriate but as always look for the stall and turn in areas of supply or round numbers which occur post news at 2.0100 in this example. Management of news is an item for another post

[Tess]

I guess I would describe myself as a strictly discretionary player. I’ve never subscribed to the fact markets can be pigeon-holed or boxed into neat little mechanical robots.

I’m not saying algorithmic sets & shuts can’t return long term profits to a well oiled corporate or mid sized fund etc, but in my experience, you require very deep pockets and a large desk full of extremely sharp minds to set about sullying your hands in that environment.

I much prefer to bend & sway to the rhythm of the market, whichever cycle or wave it decides to sweep me along on.

You’ve already seen a few of my chart examples on here, & to be honest, there won’t be too many variables to any future chart posts. I like to stick pretty close to a general template & merely tweak my parameters according to which direction the wind blows.

Markets (especially currency pairs) tend to move in aggressive waves & nervous retracements. They’re one big pile of psychological warfare, all jostling for position & a decent chunk of profit. When they’re done flailing around, they’ll sink into a dozy, lazy state of flux until the next tide comes along to whip up the surf. Recognizing each of these cycles will stand you in very good stead when attempting to execute your specific template for that particular market cycle. Or more importantly....standing aside until the market behaviour fits your template.

Remember: inactivity is also regarded as a "position" in the markets


Get your table set out according to your action plan, ensure you got sufficient funding & protective measures for your aims & expectations & you can begin planning your preferred mode of execution.

I can’t (unfortunately) divulge all my little tricks & party pieces, as some of them are proprietry tools. But my generic research & observation exposure across the pairs I trade are always consistant in their preparation.

I like horizontal lines of potential engagement. I like them a whole lot!!

Over time they’ve consistently returned good odds to the methods I choose to strike under. I’m a great believer in working smart not hard, LOL.

If I can fire enough bullets at a similar target, on a similar battle field at a similar enemy without getting shot too many times in return, that’ll do for me!

In other words: find your favored set-ups…get your discipline sorted….keep well within your financial boundaries & always be prepared to bow to Mr Flexible…achieve a good chunk of that & you’ll be better prepared than 90% of your fellow combatants.

Here’s a couple examples of what I mean. Feel free to discuss, disagree, confer or ask questions. Look forward to reading & contributing stuff as it arises & time permits!

[tonymand]

Love the way you put things Tess. Pity I am too far away to buy you a beer or six and get those proprietary things out of you! However believe me you have already made a huge contribution to my knowledge and confidence - keep em coming

[shandy]

Originally Posted by tonymand

Love the way you put things Tess. Pity I am too far away to buy you a beer or six and get those proprietary things out of you! However believe me you have already made a huge contribution to my knowledge and confidence - keep em coming

This site just gets better and better - hope to contribute some more stuff myself as we go on. Interesting that you mention the 60, 20 and 10 MA's on the 40 - 100 thread Tony as I use them myself on the charts. I also got the 60ma from Sir Jimmy who I've also been with for around a year - small world! The 10 and 20 MA's I got from Andrew Spanton of "GFX Radio" fame, another guy who knows his stuff and is worth listening to. The 20MA is good for managing news trades off the 1min charts i.e. if deviation is sufficient to cause a move stay in the trade till price close above / below the 20MA. Take a look and see what you think.

[Tess]

Hey there shandy,

A real coincidence you two fella's are bedded into Jimmy & Ross' camp at the same time huh!

I haven't come across any of their stuff (at FXTE) for quite some time, one of our sisters picks up the odd snippet or two occasionally via the 'coaching tours' but last time we crossed paths with those guy's they were continuing to advocate "stepping in tune to the current market swing" - which is what it's all about anyway! Play the strategy according to the market rhythm!!!

He still use his "60 bands" in ranging market cycles??

Look forward to seeing some of the results of their coaching in your trade examples maybe??

Good trading to you!

[Tess]

Not too much in the Data cupboard today to worry the currency market.

A couple Fed Chiefs rambling on about monetry policy at the Bundesbank gig in Frankfurt & Tricky Trichet jawboning later on in Lausanne. Shouldn't really upset the apple cart unless they drop their guard!

So, prices will play out to the tune of the technicals into the weeks end.

Those players who managed to hang onto some of their stakes from y'days pop off the 9975 supports will now have the opportunity of dragging remaining stops up underneath this mini resting zone from the late NY profit taking.

Prices are gradually poking their head above the parapet & attempting to make a run for the weekly highs up here at the light 2.0180 ceiling.

For the Fibonacci fans amongst you, (particularly Jimmy's students ) you'll notice prices held steady at one of the favored kickbacks (62%) of the weekly extremes on Wednesday & Thursday. You also might want to keep your eyes peeled for the (regular) 78.6% touches, as they're a pretty regular occurance on these volatile instruments

Anyhow, this little step up here under 2.0090 is a good a place as any to tuck your stops away for safety. If this thing decides to trot further, you still got decent value....if it gets hoofed back into late London/early NY traffic, you're positioned at the value end of the move for final exit!

Given we're still in the middle of a range on the hourlies, it's not such a bad place to be positioned towards the end of this week, specially with Euro putting up a good fight

[Tess]

Decisions decisions, LOL. Prices are now pulling back from the assault on the week's highs.

If you've still got your remaining stops tucked back at c2.0090 then you've got nothing to worry bout yet.

If you moved them up too soon above the mornings b/o pitch at c2.0125, then you're now toast

When I'm trailing a move, I try keep my positions sufficiently covered to allow a reasonable "test" of the potential move.

It doesn't always play our successfully, & occasionally prices will pull back & snatch the best intentioned stop camp before lurching away in the general direction.....but the priority when seeking larger potential runs up & down the ladder is to do just that - allow price to test & re-test a level first.

What is actually occuring in these instances is a collective confirmation exercise.

Traders are seeking confirmation that the b/o is genuine & that the money flows are still in the Cable Bull camp.

If this assault on the weeks highs is a fake-out, then these guy's definitely don't want to be positioned. They'll fold their hands & pack up for the w/end.

But essentially, they want to allow enough elbow room to properly "test" the waters.

So, the very short-term players will get their stops snatched (on this current wiggle back to c2.0125) by trailing too close, whilst the players seeking a more concerted "test & run" will sit back & adjudge what happens when & if prices make another run on 2.0175-80.

No doubt that will be an area where they'll trim out a little more profit & depending on how the NY boy's step up to the plate, they'll decide how they want to play their remaining stakes as we ebb into the London closing prints.

On every move, every day of every session there are one or two differing agenda's unfolding on these pairs.

You need to determine exactly which camp you belong to. This will then offer you a precise & confident approach when dealing with your carefully planned trade templates!

[tonymand]

I first learnt this approach from Jimmy Young although I am aware that there are many different versions. Clearly I am not going to reveal Jimmys tehnique as this is proprietary information. However I have adapted it sufficiently for my own use to feel comfortable that I am revealing what I do and not what Jimmy does. Indeed I introduced to Jimmys group the idea of using the 60SMA Jimmy is so fond of as the stop for the trade. I will outline the rules and the 2 winning trades for today. I trade GU and GY
At the europe open mark the high and low for the day. Trade the breakout with the stop 1 pip below the 60sma for GU and 50 pips for GY. The trade is closed out at a 1R profit level. If the stop on the GU is less than 20 pips then look for another reasonable place for the stop in the region of 20-30 pips. If it is more than 40 with spread included do not take the trade
This simple technique has had a net 6 winning trades this week and net 10 since the start of September. I have traded it since October last year (with various changes along the way) and have not had a losing month. The worst monthly return based on a 2% risk per trade was 3% and best was 32%

[Tess]

I'm glad you're getting a little something out of all this stuff fella's.

dd: don't let me freak you too much LOL it aint all that scary, believe me!

Tony: Nice management on your strat there.

I'm sure the regular info you're receiving from his camp will cement a lot of what you'll uncover as you continue to hop thru the loop He's definitely one of the "good guy's" out there!


Well guy's, they managed to shove it back there a way's huh? If you take a snook at the 4hrly frame (attached) you'll see we're butting yet another 62% Fib camp.

This time it's the current month's H-L marker. Prices are now at a bit of a crossroads.

We got another higher low-higher high step off the 9890 floor & these tentative Cable Bulls would really like to witness a little consolidation of this push up here to calm the nerves.

2.0070 zone (the 60sma on the hourly) would be a cool marker on any rejection back from these weekly highs.

Holding there & above would represent a solid building block to attack the months highs up there at one of my horizontal s&r camps (2.0390)

2.0270 is definitely the next interim target for the Bulls

I guess as London ambles into the close & prices hold steady up here, you can begin to consider juggling any remaining stops up around the 2.0100-20 zone.

There'll be plenty of opportunity to "add" or compound into the move next week if it's still genuine. Would be silly to give back too much profit now it's struggled thru a couple sticky s&r zones!