14/10/2011 some questions need to clear up

Beginner Questions
1
  1. who can clear the gbp/usd trend ?
  2. where to find the fastest fundamental information which affects currency rates?
    3.nzd/usd will rise within one month accounting to 3m chart, any comments?
  3. why ads <20 is invalid signal?
    5.Is rsi and ads best indicator for short period trading? what about ema?
  4. Does everyweek have a dominant trend?
  5. Anyone knows the meaning of "move stop loss to break even "?
  6. Is trailing stop going to be hit if price suddenly drop over it, for example: the trailing stop is 80.70, if the price sudennly dropped to 80.60, the trailing stop is going to be hit or not? i think no?
2

…with some questions still not clear, i decided to use this system from art-of-automation’s pick
a mechanized version in the Amazing Crossover System:

Indicators:

EMA (5) - blue
EMA (10) - Red
RSI (10) - Applied to Median Price

Time Frame:

1-hour

Currency Pair:
Since this pair seems consistently correlated to me, so i decide to use
EUR/JPY
Entry Strategies:

1.BUY at the crossover candle if the 5 EMA crosses the 10 EMA from the bottom AND RSI crosses the 50 mark from the bottom.
2.SELL at the crossover candle if the 5 EMA crosses the 10 EMA from the top AND RSI crosses the 50 mark from the top.
3.For backtesting purposes, I will risk 1% of account balance per trade
Exit Strategies:
the following is not clear
1Set profit target 100 pips away from entry level.
2.Initially set stop loss 100 pips away from entry level, but immediately move stop loss to break even once the pair moves in your favor by 20 pips.
3.If price goes your way, move your stop to break even after 20 pips and then trail it every succeeding 20 pips. For example, your stop loss should be locked in with a 20-pip profit once you’re ahead by 40 pips and locked in a 40-pip profit if you’re ahead by 60 pips.

3

Let me try answer a few :stuck_out_tongue:

  1. GBP/USD will probably move up a bit more and then come back down again.

  2. Freshpips.com

  3. In my opinion, no, it won’t. The current month’s upwards shift is not in line with the overall downwards trend, which can go as far down as 0.6802.

  4. Moving your stop loss to break-even means that once a trade has moved in your favour by a number of pips, you then move the stop loss to a new figure which ensures that if the trade closes out, you will close out at 0 pips profit.

For example:
You buy EUR/USD at 1.35, and set you stop loss at 1.34. The pair moves up to 1.36, so you alter your stop loss to now be 1.35. So if the pair comes back down to hit the stop loss, you will have lost 1.35 - 1.35 = 0 pips, i.e break-even.

  1. Yes. If the price shoots right past your stop loss, it will definitely close, perhaps even at a worse figure if the price action is very volatile :confused:
4

An example:

You decide to trade EUR/USD.

You SELL at [B]1.3850[/B], so you are expecting the price to drop.

  1. So, according to the first rule above, you will set your take profit at 1.3750 ([B]1.3850[/B] - 100 pips).
  2. According to rule 2 above, you will set a stop loss at 1.3950 ([B]1.3850[/B] + 100 pips).
    What the rule implies, is that if the price moves down to 1.3830 (20 pips in your favour), you will then change the stop loss from 1.3950 to 1.3850 (break-even at which no loss will be made).
  3. As the price continues to move downwards in your favour, you need to keep moving the stop loss to within 20 pips of the current price, so if price moves down further to say 1.3800, you will then move the stop loss to 1.3820 (1.3800 + 20 pips).

Hope that explains it bro :smiley:

5

am just not satisfied with answer 3.:28:

another question:
what’s the volume meaning from 0.01 to 8

6

Essentially, the NZD/USD is in the same position as all the other USD pairs - they have corrected after a long downtrend, probably due to a renewed risk appetite because of some good news coming from the Euro region. However, until that original downwards move is completely reversed, there is likely to be continued downtrend.

From this chart you can see that the pair is now at the 61.8 resistance level using Fibonnaci retracement. It’s anyone’s guess whether it can break through that level, but should the slightest bit of bad news come from Europe, the risk appetite will die down instantly and people will start snapping up dollars as the ultimate risk-free currency. The price will bounce off this level and come downwards again. That is my opinion at least :smiley:

7

does anyone know what’s volume meaning from 0.01 to 8 when you place an order? thanks:7:

9

but how do you know how much money you left and how much volume can be traded with the money left? thanks:51:

11

20/10/2011 question
anyone knows how to calculate the pips from eurjpy? divided or multiply 100? thanks

12

24/10/2011
so how come can it be explained as" the smaller the position size the easier the stop loss get triggered"?