Science of Getting Rich with Forex

Trading Discussion
22

please to understand that while the MACD is not the be all and end all of indicators, its not exactly sourkraut either.

but what you are ignoring is the TIME of day youre entering the trade — you may get signes from EVERY indicator in the world of a positive trade, only to find a specific time period has come, the currency now reverses its direction for the next 1.5 hours or 4 hours (depending on the time of day) and that further on down the road, the price actually returns.

but in the overall scheme of things, the macd is a nice LONG TERM indicator, used because of its extremely strong history of “correctiveness” for investment type trading.

che

23

I don’t know about that.

MP6140 once try to set some kind of pattern of the price movement with day time.

The result were not very convincing.

The world economy is so complex, at my opinion, the price can’t follow partern depending of the time and the day. I could be wrong! But, if it’s the case, I just don’t see it.

ForexPhantom, had, or have, this very interesting strategy:

http://forums.babypips.com/free-forex-trading-systems/19721-amazing-crossover-system-100-pips-per-day-7.html

I have 3 questions for you, but please, just be honest. There’s no reason to lie in here.

  1. When you did start following that system, what was the amount in your account?

  2. How long have you doing this so far?

and 3, How much do you have in you “virtual” account right now?

Thanks! :slight_smile:

24

Greetings,

Thanks for checking out that thread. I believe it’s a very solid system overall with good money management.

I have been testing the system for only about 2 days. I never lie on any of my statistics.

I had a total of 8 trades, 2 of which I lost.

Both trades that I lost happened on Friday. I don’t think I’ll be trading on Friday anymore.

Whatever numbers are on that thread are accurate. I am on a different machine right now, but my virtual account has around 1,106 in it I believe.

I started with 1,000 even.

I was all the way up to nearly 200 bucks profit, but then I lost those 2 trades.

I think I’m up around 107 pips or something like that. Again, check the thread because it’s accurate.

And I totally agree with you, no reason to lie about anything!

If the strategy totally stinks and after testing it I come to that conclusion, I will be sure to be honest and tell everyone that I don’t believe in the strategy.

-ForexPhantom-

25

Hello again,

You’re very helpful so far. Thanks.

I plugged this onto my daily chart. I see two sets of linear tracks sloping downward. I just used the default settings.

I’ve noticed that the daily candlesticks seem to oscillate back and forth between the upper and lower bands. This would indicate that one should buy when it’s touching the lower band and sell when it’s touching the higher band.

Is that the basis of your strategy?

Seems to be a good indicator at first glance.

Do you use it?

Do you trade daily charts?

I’m liking the idea of trading daily charts more and more.

Thanks,

-ForexPhantom-

26

Yes forex is complex and world economy is complex.

I know MP thing about the reversals. and they are mostly true. Not always but usually enough for a good profit. I dont use them but I undesrant the pretext behind those.

See for example at 730 EST whne it is close to US FOrex market opening, if the trend has been up all night, there is a section of traders that think it is too good to be true or something like that so they start selling. Also there is people who have been up all night and now want to sleep when USA wakes, so they decide to sell and take the profit.

When they sell, that is what makes this reversal happen? See no rocket science behind this…BUt you have to use some brains. If the momentum is very strong then the greed takes hold and the price does not reverse

Tex

27

melisky,

u missed the point of mp teaching there

there are very observable retraces that occur at very normal times during the day — whether or not these retraces are of significance is dependent on what has proceeded, such as news for instance.

if a price is moving STRONGLY, the retraces are always small, but if the price is meandering, the retraces can be anywhere from the 23 fib to the 61, depending on where support and resistance lay.

for proof of the pudding, watch what happens at 10AM, EDST after news has been released — you will see one heck of a reversal, heading in the direction the news SHOULD have sent it in the first place, and this reversal may very well set the tone for the rest of the day.

im sorry you missed how time affects the TRADERS market (NOT the economy, obviously !) but pull up a five minute chart and take a real look, and surprise, surprise, surprise ---- there it is !

che

QUOTE=melisky;93860]I don’t know about that.

MP6140 once try to set some kind of pattern of the price movement with day time.

The result were not very convincing.

The world economy is so complex, at my opinion, the price can’t follow partern depending of the time and the day. I could be wrong! But, if it’s the case, I just don’t see it.

28

actually, im one of the most helpful people here and i like to share !

while it may sound funny, I HAVE NO STRATEGY !

i trade by trend, support and resistance, time of day and present direction.

for instance, if one is trading the H4 or H1 chart, they must REMENBER that chart will REVERSE once every 12 hours approximately, and knowing that, i do NOT trade the trend of the chart until the afternoon sessions.

what i DO is trade the “counter move” of the H1 until its major reversal time, at which time i trade it for its overnite qualities.

you can easily observe this on an H1 chart, watching which way it moves in the morning, and then which way it moves in the afternoon.

now, the LRC is used as a standalone trading system on its own, although what mp teaches is to use it as a PICTURE of what the price is doing, where it is, where its heading and how long it should take to get there ---- in that manner it is one amazing helper !

mp has his own thread, even though he was banned and most everything is explained on there as its not possible to go thru it again on a short post.

his knowledge of indicators, how they foresee movement and points to take profit are becoming rather accepted, as he tends to be correct WAY MORE than not and he hates losses !

che

QUOTE=ForexPhantom;93905]Hello again,

You’re very helpful so far. Thanks.

I plugged this onto my daily chart. I see two sets of linear tracks sloping downward. I just used the default settings.

I’ve noticed that the daily candlesticks seem to oscillate back and forth between the upper and lower bands. This would indicate that one should buy when it’s touching the lower band and sell when it’s touching the higher band.

Is that the basis of your strategy?

Seems to be a good indicator at first glance.

Do you use it?

Do you trade daily charts?

I’m liking the idea of trading daily charts more and more.

Thanks,

-ForexPhantom-[/QUOTE]

29

Tanks! :slight_smile:

I am going to start to test it too myself.

I’ll keep you inform as well.

Hope to hear from you soon!