INGOT'S RAINBOW ... A Position Trading Strategy

Originally Posted by cosgrove

Do you know if the "report post" buttons work? Otherwise, just ignore the spammer guys.

The "report post" buttons aren't working right now. Pipcrawler said they're working on fixes. He also said to feel free to PM him about improper posts.

[ramrocket]

If D1 stoch is in the OB area but did not cross down the 76.4,

is the current up trend still intack?

will it be safe to be looking for long trades in H4 (cross 23.6)?

seems like in a strong trend, D1 stoch will remain in OS/OB area for days.

[cosgrove]

ramrocket, if you're going to enter trades on the H4, you will want to be checking the daily charts, and it looks like you understand that. But in addition to the stochs on the daily, you also need to look at the moving averages to be sure that they are confirming the direction of trend that you think exists. Don't be affraid of checking an even higher timeframe either.

If the stochs are in an overbought/oversold area, just be aware that they may drop out any day. I think the best time to enter a trade would be when the MA rainbow confirms trend direction, and both the timeframe you're trading and the two timeframes above that are all about to break out of the respective overbought/sold area.

On your GBPJPY chart, yes, the daily is oversold and the MA raindow is down. On the WEEKLY chart, the pair is bullish for the MAs, but we broke a previous weekly low with last week's candle. Also, the stochs are very low. As far as the weekly goes, we could be on the verge of trend reversal, or we could be creating a bottom right now. Does this matter for trading the H4? Maybe.

Try it, record your observations and what happens, and learn from your mistakes. I don't think I feel confident enough to trade the GY with this system in the GY's current condition, and I'm perfectly fine with that, as there are many other pairs.

[Dirk Nowpipski]

Originally Posted by blackdog

Hi Dirk
maybe wait for the rope to cross the 23.6
before entering.Although Its the exits that i am having trouble with.

Oh yea, I was definitely waiting on that. However, there is such a tight rope on the EUR/JPY daily that I cannot resist to go long. In this case I am actually following Spudfyre's method because it's a very nice tight rope. It also looks as if we have seen the bottom of the rope. If it wasn't such a tight rope I would still hold off and wait for the rope to cross above the 23.6 line. This is why I haven't entered the GBP/JPY yet.

[cosgrove]

Originally Posted by Dirk Nowpipski

In this case I am actually following Spudfyre's method because it's a very nice tight rope. And a peak has been formed

Forgive me for adding to your quote, but I think the added bold is an important part of spud's original method

Also, update on GBPJPY weekly, I can't believe I didn't see that HUGE head and shoulders pattern before. Watch out!

[Dirk Nowpipski]

Originally Posted by cosgrove

Forgive me for adding to your quote, but I think the added bold is an important part of spud's original method

Haha...very true! Thanks Cosgrove..

[Dirk Nowpipski]

Originally Posted by cosgrove

Also, update on GBPJPY weekly, I can't believe I didn't see that HUGE head and shoulders pattern before. Watch out!

Good call on that. If you look though, the price has already broken the neckline and stochastics are oversold. I think it's too tricky to call right now. Thanks for pointing that out!

[cgjedi]

++++ Updated ++++

I've updated the multi-timeframe stochastic threads indicators. There was an issue with displaying the Timebar 0 value for the longer term charts.

For original description see:
INGOT'S RAINBOW ... A Position Trading Strategy

[bexabarr]

So, I've read through all the posts and found everything extremely interesting. I pulled MT4 and found that (if I got everything correct) the EUR/JPY is indicating a that a good point to buy may come within the following days (on the daily charts). The HT indicate an ascending chart with resistance at the 166.96 level (~600 pips away). I'm just seeing if I understood correctly all the things I have read on this thread (I'm a newbie). Thanks again to all.

[bizbad]

I have been taking a brain break from my naked chart learning and found this thread. I thought I would load up these on my charting to see how it would look but I cant go below 2 on my d setting for stochiastics. I saw in the original mtf posts that the original poster was using 3 for his settings. Will 3 work? Is there a important reason it has been changed to 1? Thanks