Yes, I suppose I could go with Oanda. I’ve heard great things about them. But I’ve always used Alpari for all my demo testing. Maybe it’s not the best to just switch all the sudden? But I know Oanda is good for small accounts and you can use paypal, right?
Yeah, maybe a 300 pip S/L. That would only be a 30 dollar loss. I don’t know, I might just ride out the storms lol.
Going by the confirmation is playing it too safe in my opinion. You could miss out on lots of pips. But it’s all a game of risk. It’s safer to wait, but you’ll get less pips. On the other hand, you could get a lot more pips by jumping in right at the cross.
“Yes, I suppose I could go with Oanda. I’ve heard great things about them. But I’ve always used Alpari for all my demo testing. Maybe it’s not the best to just switch all the sudden? But I know Oanda is good for small accounts and you can use paypal, right?”
The problem with O., which is who I use, is that you cannot tweak many of the indicator settings ie RSI should be set to Median Price but who knows what O. uses. They told me all of the various MAs are set to close and cannot be changed. If O.'s RSI is different then will that affect this strategy? I don’t know. d
Yeah… I hate when this happens. I have to say you are absolutely out of luck today. Looks like you entered at the very top. Sometimes going long helps finding a swing high, and short helps finding a swing low. Just joking of course
So I made a trade last night on the EUR/USD pair thinking the cross would happen today, and to my surprise it didn’t and down almost 100 pips. For furture trading, and think this is for any indicator is not to expect the trend to start until the signal. For now, I’m going to leave the position open and may in fact open another buy once it crosses. I’m still working on the alert for the indicator until someone else comes up with one.
Hi Test33, I did the same thing with GBPUSD and got stopped out around 100 pips, it took a real dive around 11:45 GMT. The scary thing is it actually started to cross which is why I got in and then the MA lines started interweaving but on a daily chart that is massive pip movement!
Looking at the ADX (which was not on my chart at the time) it is in a clear decline so I’m wondering if this system is too simple and might need a few more indicators. Nothing like jamming up the charts with a bunch of noise!
Yeah, because it’s on the daily timeframe, I think that an entry indicator is needed in the lower time frames such as the 30 min or 1 h. Any ideas? Or is waiting for a new candle enough of an entry point?
I think it is better to wait for a new candle to form, so the cross is final. Don’t let greed take over, just wait until the signal is clear.
Regarding looking at multiple timeframes, M30 is a little too small for confirmation when trading a daily strategy. Look at H4, H1 at most, to time your entry right and don’t enter on a retracement on the lower TF’s. Additionally, it is a good idea to glance at the W1 chart and see what’s the direction of the large trend. I don’t always go with that, but if you want to play it safe, go with the flow and only enter in the direction of the larger timeframe trend.
There’s no need to add other indicators for other timeframes, just switch the TF and do the same analysis you do on your regular TF.
Now something else I am discovering right now… no Forex system is complete without a little support and resistance analysis. Why? Because price always has trouble breaking through S&R areas, and often it bounces from it. You know those times when all your indicators tell you to go in one direction, then suddenly the price goes the other way? Most probably it hit S or R, and didn’t have enough momentum to break through.
S&R areas are pretty easy to spot. Just look for recent swing high’s for Resistance and swing low’s for Support, and draw a horizontal line. If there are several swings in the past at the same level, that is a stronger S or R area.
Another good idea is to use the Pivot Points, in our case (for the daily charts) we should use the weekly pivots. I wrote about that in Phantom’s previous topic (for the hourly strategy). Or just Google “trading forex pivot points”.
So from my experience S&R can be used in several ways. You can place your T/P’s there, assuming that the price won’t go any further. Then, hitting one of those areas and don’t breaking through means the price is going to reverse, so we can look for an entry in the opposite direction. Or, if the price breaks through it’s a confirmation that the trend still have some strength and we can ride it for more pips.
