Not sure why you’re so confused Rich. This was a great entry.
My only slight worry is that you thought the Daily was in a range, the Daily is in a downtrend, and has recently broken it’s Intra-Day channel to the downside…which could possibly pull it down to the 138 level eventually.
However, to the present and your trade.
Your entry was fine, nothing wrong with that at all, currently as i see it you should be up in region of about 10/15 pips.
Now that your 5M trade has hit it’s opposite B/BAND line you need to be looking to the higher TF’s.
These are looking encouraging. You have Timeshare setups on each TF from 15M all the way up to 1HR, however we have news out today and i would be reticent to be trading so close to a ‘red’ News announcement, perhaps take what profit you have now as the News will often follow the current trend, and the current trend for this pair is down.
We go to an earlier TF in a Trend because the lower TF’s will be the only ones that allow us an Entry according to the sytem rules. If you look, on say, a downtrend, the stochs and cci will rarely be anywhere near where we need them to be to confirm an entry…hence the reason we go to a lower TF to ‘Butt into the trade’, so an EMA Step on a 5M chart to the downside will look like a small retracement on say the 30M or 1Hr charts.
With regards to going UP a trimeframe had you missed an entry on a lower TF, yes this is possible, but why would you want to?..to eliminate fake outs? Possibly.
The disadvantage to going up a TF is that they take time to develop, and the developments can often be many pips, so we get in early to take advantage of those pips, it also usually has positive implications on stop loss level, remeber the higher Tf you use, usually the bigger your stoploss is, and therefore the more you are risking per trade.
Interesting you posting your Oanda charts today, i havent been able to get onto Oanda at ALL today, only my Demo Account!!!..Nor the Babypips chatroom.
Hi Maurizio
Thanks for the reply, when you looked at my trade at 3.00, as you say i was in profit i looked higher and crosses looked promising i considerd closing one third of trade but was waiting for opposite bollinger as entry crossed middle bollinger, went out for half an hour got back and the trade had hit the s/l i should have checked the news as you say
as for the down trend this is where my confusion lies looking on your post i can see the trend but if i zoom in for the last 16 days has been not doing much ive attached a pic so i supose it s a case of i dont know how for to look back i know i cant trade by completly fixed rules but a guide would be useful
as this was a down trend should i have waited for the sell signal ?
No, i don’t think you should have waited for a sell signal.
Admittedly, as we were in an overall downtrend, entering on a short would have produced a longer trade.
When you think about it, if the daily is on a downtrend, making lower highs and lower lows, the short sells are always going to be longer and more potentially lucrative than the long buys.
That said, i thought your entry today was spot-on. You drew your trendlines, you saw the potential movement, you entered correctly and your trade made almost 30 pips profit…unfortunately you were subsequently knocked out by the news.
I used to make that mistake more times than i care to admit.
A week or so ago you entered 3 trades and lost each of them, the other day you came very close but left your stop loss too narrow after missing a support line, today you made profit but got stopped out by news…theres a pattern here isn’t there?
You’re getting better!
Yourself and Dobro are going to make this work, just keep at it.
Hi Maurizio
Thanks for the input, i feel like im getting someware again
Hope your right and i will get this to work
Any coments on my definition of a range compared to a trend , 2 posts back i think. gbp jpy hit a similar level back in november and last couple of weeks ago was the same price as today.
Thanks for taking the time to post your results and continue helping us out.
I have started using the EMA system and am slowly getting to grips with it but just have a couple of questions.
If after the cross candle there is only a gap of about 5 pips or less back to the middle bollinger band does this mean its not a valid entry or is it more likely to break that band?
I am mainly watching the GBP/USD, would you only trade this pair during London hours?
Depends on the TF, don’t get hung up on the 5M TF, this system works equally well with other TF’s. Also, use your Trendlines to guage entry, watch for the break. If you spot a movement on a higher TF, you’ll normally find that the 5M PA will subsequently follow it. I would however advise caution whenever price is around the central B/B MA, if price is going to retrace, 7/10 times it will retrace there. It’s simple, if in doubt-stay out, until you are more certain of the results. Rule No.1 is to Defend your capital, if an entry doesn’t feel right, don’t do it, save your money for another day.
Yes i would only trade this pair during the London open, perhaps slighter earlier depending on what time i get to work. As i live in London i have that as an advantage.
I have put my lines on your chart as i saw it at the time.
I didn’t take the dailt as a range (even though as you correctly state prices were similar) as demonstrated on your chart i saw movement in trend, higher highs, lower lows.
This are what i look for to give me the general bias of the day.
great stuff maurizio77 , i havent read all the posts, i am planning to start trading from monday.
meanwhile i saw GBP/JPY daily chart showing CCI as -241, this indicates a oversold condition, also RSI at 25. i might go long here with stop at friday low. this is not as per this system, sorry if this causes confusion
I got a +1% margin increase this a.m. basically trading 1H & 30M TFs and using the time share idea. Not perfect yet but hopefully getting there. I have a decent Ebay check coming so I think I will fund an Oanda acct as their spreads are great when trading less than 30M TFs - short profits add up. Thanks M. d.
1> When i enter a trade i set my TP at the opposite Bollinger Band on whatever TF i enter on, but i DO monitor my trades as the Bollinger Band level always changes, so i change with it…always looking out for a Timeshare…more often than not i change my TP to that of the next higher TF Bollinger Band.
So yes i monitor it.
I have never been a fan of the ‘set and leave’ approch because the market simply does not behave the way we want it to, unexpected news can cripple you, an earthquake in the wrong place can do the same.
To trade effectively you need to modify your approch to market fluctuation, it doesn’t matter what system or strategy you use, discretion is always the No.1 tool of the effective trader.
It takes patience and discipline to do this
I am not sure i have ever seen this. Can you give examples?
