Alternative Technical Templates.

[kagein]

I was wondering how you guys analyse the yen pairs, what do you take into consideration apart from the technicals?

[JimmyMac]

We run through the same generic principles as we would for any pair we're looking to get a position on kagein.

Rate differentials & impending int rate news which might impact the pair.
Specific regional fundamentals affecting each of the opposite pairings (British economic outlook v/s Japanese economic outlook etc)
Equity market flows (risk aversion - particularly relating to EURJPY)

That daily diet of information is readily available via various sources to most folks if they wish to avail themselves.

Although not really necessary for everyone, we also access newswire & squawk facilities which afford us instant & breaking news snippets, rumors & bits & bobs of order flow traffic etc which get bounced around during a typical trading day.

We get a decent feel for what's what out there through our daily contact base too, but again - it's not particularly necessary for the average player in the most part.

[Jocelyn]

Those of you who have picked up the s&r (supply-demand) baton & run with it, require no convincing whatsoever that this type of trading works on a consistant basis. Entries, partial profit taking, adding contracts to a core position, full exits....can all be planned & managed around these common technical traits.

Today, price is once again hustling a previous level of supply on the Eur/Yen from back in late February. It got pumped off the lower channel of demand at 152.0-152.80 during mid March, where previous pockets of demand shunted it north back in mid January.

I've pinched Tess' example from March 26 (page 74 post #740) to clearly highlight the journey & stuck today's snag alongside it to help quantify the process.

If you observe the Cable at current levels, you'll witness similar behaviour too from the upper 2.0100 ceiling to this lower support floor at 1.9775-9710, where price is now consolidating again.

Loading up & trailing your positions accordingly off these regular jaunts on the price map are not only viable, but incredibly cost effective.

Just one or two sensibly planned & managed trades using this type of execution model can put more money back into your accounts than several dozen trips to the intra-day trough. Plus your transaction costs & risk profiles are dramatically reduced.

[Harry Potter]

Hi guys!

May I ask which broker you use and what leverage it provides?

Thank you!

[JimmyMac]

Harry Potter;

We operate primarily through Fimat (Newedge) & MF Global (FXClear).

Jocelyn also utilizes (feeds into) a credit line at a mainline U.S bank which our colleagues use in the States, although the outlet (supplier) is wholly dependant upon the customer account/strategy being implemented at the time.

There are multi-users channeling into each broker, so it's not just us over here in UK utilizing them. Their folks & colleagues also trade through the portals.

[KENNETH LEE]

Just want to say thanks to everyone on this thread for all there contributions to us newbies. I have been trading with
James since the begining of his thread, You all have made the forest visible through the trees.. James and others are always saying look at the bigger picture, As Jocelyn said ("always look Left") and as James says(" Price likes to go where it has been") I have just recentlly found I like trend lines and S/R areas, and hope to graduate to longer postiotn times. So this fits me Just found this thread Friday and am now permantlly cross eyed.. But thanks to all,Tess, Tony, and Jocelyn and everyone else.. I don't post much type to slow and my southern drawl gets in the way.. But Thanks . Ken

[Tess]

Hi Ken,

Thank you for your comments. I'm sure your results will prosper long term by matching James tuition alongside the sensible structure of s&r observation.

From the small amount of time spent looking over his threads, all the ingredients are certainly there to construct a viable method of interacting successfully with the market.

Good luck with your continued market participation & if you got questions or comments, just haul em up. I'm sure folks will do their best to address any points/questions.

[kagein]

When you initiate a trade on your trigger time frame, do you stay on this time frame to manage the trade?

[Jocelyn]

Very good question!

Usually yes, we will manage the position on the timeframe from which it originated.

I say usually, because there will be occasions when we need to be flexible & drop down or scale up a timeframe to locate an appropriate technical level to hide stops or locate a stop order to compound a move.

Obviously, that flexible & discretionary type of activity is always dictated by the market. We don't subscribe to the usual rigid or inefficient methods of pre-determining risk-reward ratios. Markets simply don't operate that way

For instance: we might have executed an order on the 4 hour frame, but need to drop down to the 1 hour reference to slim down an appropriate technical zone to hide a stop. Same when going up the scale from say a 4 hour to the Daily in search of a level to guage a (forward) potential supply-demand zone.

It’s extremely rare however that we’ll wander too far from our template frame to manage a position.

Slightly different for intraday trading, but then that’s a whole other kettle of fish altogether.

[pipvader]

Been going through this thread the past few days now, excellent read.

Slightly different for intraday trading, but then that’s a whole other kettle of fish altogether.

What would you do differently?