Hi MP
Any chance of getting an explanation on overlays. Benefits of use, which currency overlays which, what you look for… I keep reading about them and I’m trying to make sense of them but i feel like I’m putting a round peg in a square hole. (after posting this i feel i need to explain myself a little more…The “overlays” I’m talking about is currency over currency.)
Also and maybe this is the reason for using overlays but what currencies should I not trade against. Example, if I go long on E/U and go short on U/J I feel like I’m contradicting my trades (they go in the opposite direction of each other) …can that be so?
I don’t have a clue about Forex, but I stumbled across this thread … and thought for the fun of it, I’d just do exactly as you recommended:
Downloaded MT4 (not knowing what the heck it was)
Played with it for a few hours, figuring out some of the features.
Followed your noobie directions:
[I]i ask that you simply demo an idea of mine — take an H4 or DAILY chart with nothing but a 14EMA on it, ENTER in the direction of the ema direction, make sure youre following proper money management rules (ok, thats one i will accept if one does not have the luxury of a VERY large account) and DONT set a stop loss !
EXIT when the currency crosses the ema in the WRONG direction (guess that could be called a sell signal) and see if youve made a profit or not[/I].
I’ve been floating around the Forex community over the last 24 hours and I’ve determined that simple heuristics when dealing with incomplete information appear to be more effective than complex strategies …in fact, when dealing with an area you are utterly clueless about, the simplest strategy is often the most effective. Any bit of excess will likely be misinterpreted, over analyzed, and misapplied.
Last night, while observing the USDJPY, I drew a simply LRC, and overlaid a Shi_Channel_true, saw a trend developing, bought, and went to sleep.
Woke up with a 30% return on my account.
I’m now an international banker. Can I get those business cards made up, a double breasted suit, and a pair of wing tips … or is this a bit premature?
Best,
Overcast
(ps While writing this post my returns are now near 50% … lol.)
i use the word “overlays” to differentiate between what goes on a main chart and what goes into the “indicator” panels.
while i have the ability to superimpose the DOW onto a currency, or a few currencies onto another, i never found the need, as i tend to trade just one currency at a time, but trade the living daylights out of it !
by “overlays” i refer to “barrys support and resistance” custom indicator, the LRC/SHI channel, price channels, bollinger bands, STARC bands for an interesting new method im developing for scalping [B](but NOT for longer term trading — we have the bols, so why re-invent the wheel ?) [/B]and any significant moving averages, either for x-over or s+r points.
by using the “overlays” you can simply watch your price as it approaches a significant point, and take profit or make another decision (i feel its NEVER wrong to take profit ---- [B]DONT FADE THE TRADE, JUST TAKE THE MONEY, HONEY !)[/B] and go on with another trade if you like whats happening.
what you speak of below is a NORMAL hedge situation which ( i present this information ONLY for education — to actually work this way requires a bit more experience than i read in your post !) will keep your margin in BALANCE — other words, while one goes down and the other goes up, the margin REMAINS the same because each one cancels the other out. Its actually a well used trade and had the hedge funds stuck with it, instead of moving into the real estate market, they could have been decently profitable, as they always were ---- here at Elfinore, it is a technique in constant useage !
the first would be at least find a decent tailor and let him get your sizes and the second is that i want to know where you got that danged RABBITS FOOT, and how much was it ?
i did better, so ya ya ya to you – 170 pips on GJ, but THINK what i could do with that rabbits foot ?
CONGRATULATIONS — if it was anything i said, let the dogs of war go forth and bark at my enemies and spread the truth of forex throughout the land !
glad to have ya around and glad to see that it works, and there aint much more to say after that !
my golly gosh — he gonna be wearing that suit soon
It’s the skill, RP, it’s all about the skill. I propose a new technique for Forex traders. Based on my vast experience gleaned over the last day, and my devastating record of success, I suggest a “Kill Bill” approach to Forex:
“Revenge is a dish best served cold.”
Wait, that makes no sense … no matter, the world will be mine.
Sorry for the late response, work seems to be much busier today than normal.
While the overnight trade was not taken, there were more pips last night in the “slow” part of the session than I make on many full days. The stuff that MP can see is amazing…I was going up, down and sideways.
The lessons learned from the session are still being consumed, but utilized none the less. I am still a little standoffish after my recent trading mishap and in order to play the longer term trades I think I need to accumulate some pips on the smaller time frames. I could falsely inflate my account via wire transfer (etrade is on speeddial), but where is the fun in that
This morning has been good to me as well even though I have not had a whole lot of time to trade. Its amazing that when you really [B]feel[/B] (read: May not know but I think) you know where price is going the stress of the trade is much less. I do have a 1h short I just opened 20 pips ago. I hope its pretty safe since we hit the same Resistance 4 times today and all of the arrows point down to a junction of the H1’s Daily Pivot, bottom of the LRC, Center of the bols, lower trend line, center of the Price channel and now we are past the noon reversal.
considering the absolute seriousness of your trading and communication abilities, although we usually vote on this thread (well, weve been accused of being a cult, and i gotta figure if we do this democratically, then perhaps one or two of the naysayers might just begin to understand) i believe you may have found a home or at least a flop house or crack pad !
your modesty, humility and self effacing direction certainly touches the strings of my heart and my happiness knows no bounds at finding a SIMPLE man with a heart of gold.
[B]WELCOME PILGRIM — your seach is over !
[/B]But, in the true spirit of being an egotist, you are only allowed to be funnier than me for one day — try it on day two, and I know where you live and you may just not like uncle louie 8 fingers !
As the subtlety and depth of my insight knows no limits, I have come to an even deeper and (dare I say?) richer understanding of the mighty Forex.
Dig:
If we buy when the trend’s going up, I guess we sell when it goes down.
Looking at my charts here, I see a wonderful little trend occurring. My Shi_Channel_ true is pointing down. My EMA is pointing down. My LRC is pointing down on the EURUSD.
So I started selling. Seems reasonable.
Too bad all the money is tied up in the USDJPY, however …
so many people just tell you to “do this and do that” and NEVER explain why ---- all i want is for youse all to KNOW WHY cause then you can trade in ANY danged way you want !
use care with shorts today, as they may be short and sweet and therefore dangerous but if you watch and plan and where you be heading sounds like the “sweet spot” (did i ever tell you about when i was 14 . . . . better let THAT one go !) for your trade, or else the parking garage of left over support points !
best
mp
WHY am i suddenly feeling like i got a whole new family ?
Thanks MP, I love the shi channel and the LRC’s. I got MT4 open on one monitor with the shi and then my Oanda charts on the other with some LRC’s drawn in and I’ve never felt so warm and comfortable while trading. Throw in some stochs, zigzag, S&R and a few of TRO’s candle color indicators and things are looking insane but understandable. I think this thread has helped me a great deal. Of course, I always think I’m getting better until something causes me to go off the deep and trade too big and lose more than I should.
Money management: I’m learnin’ some. It’s back on demo for me this month. Are there a lot of people who just can’t follow simple systems? Can a newbie learn to read price action and indicators to be able to trade in a way that’s not, say, “buy when the third green candle crosses the 7.5 EMA at the same time as the slow stochastic is crossing above “80” while the sun is shining and the dishes are all put away”?
Actually, that was a joke but I think that system might have some merit to it…
Well in a way you do! When is the family picnic? I think there are a lot of us who envy husky who was able to see in real time some of the nifty things you have given us. The hardest thing in the world for us right brained types is to learn by reading as opposed to learning by seeing. Now i’m definitely not complaining about being the red headed step child i’m just trying to think if there is a way in this day and age of amazing electronic gizmos that you could help some of the milita in real time without taxing yourself to much.
Hmm don’t have the answer so thats why i’m throwing this out to the fam.
I do know that the few times you have given me a heads up real time has been invaluable and the little bit of blow by blow realtime trading i have done with other brothers of mine in your family has been really productive. So i’m just thinking how it would be possible to harness this powerful teaching method. Hmmm
Welcome to the new brothers and sisters, aunts and unlces to this thread. I know there are more of you out there…you know who you are…who should at least introduce yourself to the rest of the family…
I bought a headset recently to do some live trading in another group. They’re cheap and it’s relatively easy to set up (I think). Just an idea. They also have the paltalk rooms like where TRO’s 2% club meets.
Missed out on some good stuff it seems, just to let the junta know am still alive, just caught amidst a major project, may last 6 more weeks, and the long drive to Denton every day :mad:
Looking to trade the E/U tonight after a week long hiatus, wants to do a long here on the solid support, but all other paraphernalia tells me that it goes down to 1.2490 levels later tonight??
I have recently been invited to join a trading group and am a bit nervous about it. Can’t see how I can benefit from trading in a different group than those I trade with now, but I can see the zone much clearer when I am in a chat room. Plus, it frees me up to view other pairs than other peeps and if 3 or 4 of us are in a chat and monitoring different pairs, we have a tendency to share our info… but am not sure about breaking into a new group. Seems almost arbitrary.
Well, I wouldn’t put any stock in what I say, but I’ve been making a nice haul today shorting the E/U.
And I’m not changing a thing till I see movement in the other direction. In fact, I’ll probably let her run all night. That pair has a long way to go before it reverses its trajectory and crosses the EMA14.
Mind you, I am trading a method suggested, but not recommended, by RP.
