Hi Philip, is there any currency pairs that you have found that just don’t play ball. As this is a system well suited to the longer timeframes we don’t really have to worry about spreads so can basically look at all pairs.
Just wondering if in your testing you’d found some pairs that just don’t work out consistently.
I use mainly the fib extension. I use fib retracement only when trading 1 minute time frame but I dont recommend trying that.
In a buy, once price closes above the 127.2 extension, your stop is a close below 100. Once it closes above the 161.8, your stop is a close below 127.2. You keep trailing your stop in that manner until you are out of a trade.
Well Bucketman its not about a currency that doesn’t work, its more about if its trending or not.
This is a trend-following system, so if a currency pair is ranging (not in a trend) you will struggle to find the pattern completing and as a result you will struggle to make a decent profit.
For example in March 2013, pairs like GBPUSD, AUDUSD and even USDJPY were very elusive. I just was never able to make a profit with them. I actually was always dreading when I opened a trade for those three pairs.
But at the start of July things changed and the pairs entered a trend and I made massive profits trading them.
My suggestion is once you see a pair ranging, start trading other pairs or trade it on a lower time frame.
The Snipping Tool in Windows is good too, just remember to enlarge the chart (zoom in) so the selected picture is easily seen.
Hey Philip,
I’ve actually noticed a similar pattern on silver 15M chart on few occasions that I was looking at it closely. And last night ICN time I was looking to short silver, had tick volume indicator on. Tried to make sense of it, ended up with a headache literally (!) nevertheless it did serve as a guide, but as for timing still I wasn’t sure where or when to enter. I’ve been using EMA10, 5 along with RSI (9), occasionally (14) for a similar purpose and have found them to be a decent help.
I’ll set up my chart now with 20ema and 50ema along with stochastics and forward test to see if I can use that combo on silver 15M chart. What you’ve observed on gold did it for me, Philip. Lately there’s been few tradable setups as far as currency pairs go, Im comfortable when daily moves thus far dollar pairs aren’t moving much but as for crosses I should definately check them out later in the evening.
Hey Rookie, thanks for the heads up on the 15 minute silver. It is a valid one and should be completed probably in the next two candles. For me, I’d wait for the 4hr signal since its still developing. And you saw how the weekly chart is powerful with that pair with the gold one previously.
As for the MA system with RSI, I advise against using such a system. It is criminal and completely wrong from a technical point of view. That is a discussion for another topic I’m afraid. But I’ll work on it.
Hey Philip,
Wow. Just look at that. 16.55 to 18.39 is a huge deal for silver !
I happen to have 3 kinds of stochastics, slow/fast and full. I’m guessing you’re using full stochastics as it seems to be the only one with 3 set ups. 14.3.1 the rest have got only 2.
I’ll see how it goes !
And if you’ve got time please do some write ups on RSI and MA combo. I’ve got no idea about that.
Are you still doing volume btw ?
I noticed that my stochastics has got only one line , all of them are the same. Can I still use them ?
No there is something wrong with your Stochastic, try making it 14,1,3.
Here is the GBPAUD trade I did:
The yellow bars are my entry and my exit, I’d like to enter there again once the situation tells me it’s a good oportunity; I also think I exited the trade too soon :24:
EDIT: My SO seems to appear too dark on the pic, but it’s OK, there is a cross inside the indicator.
Yeah I realized that just now. Thx!
Have you tried it on S&P ?
Interesting combo Jalapenofan , I also thought about adding tick volume on top. What do you think about that, Philip ?
Hey Philip,
The NZDCHF pair is indicating a buy signal again. Based on your experience, would you enter this trade?
I prefer to trade the first signal only. But you can trade the second and third signals as a scale in on the original position.
Trade the NZD pairs with caution, they tend to do 1 retracement then quickly after do another larger retracement which catches out a lot of stops.
Looks like USDCAD has given a buy signal. Not sure if I’ve got the stochastic set correctly (set K% to 1 D% to 3 and slowing is at 3) or drew the fib correctly but it looks good…
?? The settings have been clearly presented twice by the thread starter in the first 8 pages of the thread.
Once on page 2, post #12 & again only 1 page back.
I did read all of the posts and when I initially set my stoch to 14, 3, 1 it didn’t coincide with the other charts shown as examples.
My confusion came with post #14.
I’ve gone back and reset them to 14, 3, 1 and it seems correct. Oops!
Thanks for the help.
On my chart it will give a buy signal soon. Two notes on your chart however; 1) the stochastic should be set to 14,3,1. You have it at 1,3,3 for some reason.
We draw the fibs from the lowest low before the EMA crossover to the highest after the crossover. So you have the high right, but the fib should move all the way down to the lowest low we see in the picture. As a result, your stop loss should be below that low and not where you have set it.
I don’t mind it either.
Hi all,
just a short question regarding the stoch. Do we have to enter the trade after the two lines have crossed in oversold/overbought area, or do we have to wait until the lines have left the oversold/overbought area?
Thx.
Thanks. I went back and fixed the stoch after odds on’s reply and now I’ve fixed the Fib… Appreciate the help…
