Is it possible to catch these consistently? I see them all the time and I’ve been making a point to notice them when they come. I just can’t make the decision to get in when they start and when I realize it is a large movement, I’m usually too scared to jump in late.
I see these moves at least twice a week depending on what pairs I’m looking at and all the ones I analyze in hindsight, I could’ve literally set a 3 pip stop loss and been in good shape. You know the ones where the faster MA stay far away from the slower one and price is way above or below all your ma’s.
Indicators don’t really help to identify these moves. Maybe a MACD if the MACD is hovering around 0 then changes, I can relate a large move to, but that is a rare occurance. And once the move is on, even MACD is useless since it’s bottomed/topped out during the move.
I got in at the beginning of a good move today, but I took my 13 pips and hoped to jump in again after a retrace. Well, no real retrace happened and I watched pip after pip go by all the while contemplating if I should just jump in late. It already moves 80 pips, is there some left? It already moved 120 pips, is there some left?
Just a thought. My goal right now is $10 a day at $.30 a pip and I’m more or less hitting it pretty well, but to grab a couple of big runs a week and learn how to ride them is becoming the next goal.
You want to understand the limitations and expectations of your system as well as other systems. Its ok to try another system with a higher expectation/payout then your current one but you also have to understand its downdraw etc, etc…
While these long pip runs look fantastic, and you can ride them you need to understand a few things: What will you loose riding them? Whats your average risk:reward… At what point would you know that a run like that isnt going to happen, etc etc…
I will say this I occasionly do get to ride them if I’m activly trading when they happen however typically speaking I ride parts of them, I dont always get in right away (Sometimes I do, 10-25 pips from the top when I’m trading before it happens, but usually im not usually inclined to trade based on the fact that its moving – when I start letting emotions/feer/greed trade I do but it dosnt end well, when my ssytem tells me to enter, if I dont do good I know a good one is around the corner )
I’m kinda tired/chart boggled so I may be getting long winded but let me just say this: Just remember the grass may look greener on the other side but that dosnt mean it really is, and you also might want to consider if the system works for you… I cant trade with pivot points, fib retracments, etc… I just cant dosnt work, I know the mechanics, I understand the principals of working systems that use it but I personally cannot use them…
OK…I’ve been studying for over a year and practice trading for over a month now. I’ve wondered the same thing. When I started out, I thought that 15m charts would be a good choice for me…kinda quick, but not hectic. I’ve learned 2 things: 1. Watching each tick on the charts makes me nuts (though some would say I’m already nuts) and 2. There are [I]usually[/I] larger moves on longer time frames. I’m strictly trading on daily charts now.
The whole “when to get in and how far to ride, where to set stops” thing can be very ambiguous a lot of the time. The system I’m testing now (look on the Forex Systems section here…Straddle System) uses the average daily range of the past 10 days to calculate entry/exit and SL/TP points. So far it’s working great. The nice things about it are: 1. I spend about 30 minutes each evening setting up my entries, then I’m basically done…no chart watching, not tied to the computer. 2. The entries and exits being based on average ranges enables you to get in on the majority of a day’s movement yet set your stops to where you won’t lose your shirt if you’re wrong, but won’t get stopped out early before the trade ends up going where it would’ve been profit otherwise.
A great example of the range movement was this morning. I had a buy stop hit for both EUR/USD (3 lots) and GBP/USD (4 lots). The trades had opened overnight while I was asleep (peacefully). When I checked in this morning I was down around 560 pips. My S/L were 110 and 140 pips. This may seem like a lot, but when you consider the average daily range over the past 10 days was 225 and 264 pips, it’s really not that bad. Having tested this system all last week, I wasn’t too worried. Know what? I came home from work to see that both trades closed at my T/P for +330 and +560 pips. FYI, my other trades for the day so far are: +80(USD/CHF), +100(AUD/USD), and +180(USD/CAD). I have 4 more open that are 2+ and 2-, but even if they all close for a loss, I’m only down 390 for a daily net of +860.
Just keep learning and practicing and asking questions.
but I took my 13 pips
You are scalping the market than?
It already moves 80 pips, is there some left? It already moved 120 pips, is there some left?
That depends on the currency, after an 80 pip run, i probably wouldnt place a trade on the EUR/USD, but on the GBP/JPY, thats just a warm up and would jump right in. Different expectations from each currency.
Do you trade a wide range of currencies? or just focus on a few specifically?
I would suggest to limit the currencies your trading to a few, and then you can begin to get a sense of “this is a real breakout move or not”… You’ll still be wrong alot of course, but you will find you can catch a few of those bigger moves than before.
When I checked in this morning I was down around 560 pips. My S/L were 110 and 140 pips.
So if you are down 560 pips, how is it your trades weren’t stopped out?
So that was not the true pips you were actually down, just the net value between your 7 lots. Seems to me you give yourself a 1:1 risk to reward ratio, so i hope you are right alot more than you are wrong;)
Wide SLs give you a better chance of a being right, provided you can handle the drawdown.
I was down 560 because I had 3 lots of EUR/USD, and 4 lots of GBP/USD open.
Yes, the RR in this system is 1:1, but the increased lots are designed to make up for it (and has performed this function well so far). Check out the thread to find out more about it.
I guess I’m scalping in a discretionary manner, taking 5-10 pips. I’m really using what I’ve learned from about 4 systems here at babypips and I’m reading more. There are many things that are common between systems, then there are lots of different signals and confirmations.
You want to understand the limitations and expectations of your system as well as other systems. Its ok to try another system with a higher expectation/payout then your current one but you also have to understand its downdraw etc, etc…
I’ve already been hit with some drawdown by mistake. Been about 200 pips in the hole.
While these long pip runs look fantastic, and you can ride them you need to understand a few things: What will you loose riding them? Whats your average risk:reward… At what point would you know that a run like that isnt going to happen, etc etc…
I will say this I occasionly do get to ride them if I’m activly trading when they happen however typically speaking I ride parts of them, I dont always get in right away (Sometimes I do, 10-25 pips from the top when I’m trading before it happens, but usually im not usually inclined to trade based on the fact that its moving – when I start letting emotions/feer/greed trade I do but it dosnt end well, when my ssytem tells me to enter, if I dont do good I know a good one is around the corner )
I keep forgetting as well that one most likely won’t be able to ride the whole thing.
I’m kinda tired/chart boggled so I may be getting long winded but let me just say this: Just remember the grass may look greener on the other side but that dosnt mean it really is, and you also might want to consider if the system works for you… I cant trade with pivot points, fib retracments, etc… I just cant dosnt work, I know the mechanics, I understand the principals of working systems that use it but I personally cannot use them…
I agree. I’m using the 5 minute charts, and although I like the action, long term I don’t think I can hang. I usually compare my time spent in front of a computer against an hourly wage. The scalping on the 5 isn’t going well towards a good hourly wage. I would love to get on at least the hourly or 4 hour, then maybe move to the daily. I’d still scalp when I’m in the mood, but not for a long term plan.
If I could figure out how to make a decision late at night or early morning and ride through the days wave, that would be great.
The whole “when to get in and how far to ride, where to set stops” thing can be very ambiguous a lot of the time. The system I’m testing now (look on the Forex Systems section here…Straddle System) uses the average daily range of the past 10 days to calculate entry/exit and SL/TP points. So far it’s working great. The nice things about it are: 1. I spend about 30 minutes each evening setting up my entries, then I’m basically done…no chart watching, not tied to the computer. 2. The entries and exits being based on average ranges enables you to get in on the majority of a day’s movement yet set your stops to where you won’t lose your shirt if you’re wrong, but won’t get stopped out early before the trade ends up going where it would’ve been profit otherwise.
…adds straddle system to list of systems to check out.
A great example of the range movement was this morning. I had a buy stop hit for both EUR/USD (3 lots) and GBP/USD (4 lots). The trades had opened overnight while I was asleep (peacefully). When I checked in this morning I was down around 560 pips. My S/L were 110 and 140 pips. This may seem like a lot, but when you consider the average daily range over the past 10 days was 225 and 264 pips, it’s really not that bad. Having tested this system all last week, I wasn’t too worried. Know what? I came home from work to see that both trades closed at my T/P for +330 and +560 pips. FYI, my other trades for the day so far are: +80(USD/CHF), +100(AUD/USD), and +180(USD/CAD). I have 4 more open that are 2+ and 2-, but even if they all close for a loss, I’m only down 390 for a daily net of +860.
Just keep learning and practicing and asking questions.
Being down 100’s of pips is nerve wracking right now. I guess in time I learn to ignore it!
I find myself on the USD/JPY most often. It hink I’m starting to get comfortable with that pair and learn it’s ways. I watch the EUR/USD, USD/JPY, NZD/USD, USD/CHF & AUD/USD the most, but most trades go into USD/JPY, EUR/USD and USD/CHF.
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