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Re: Combination Strategies

Postby Joe Whitehorse » Tue Oct 27, 2009 5:34 pm

whipcrack wrote:I’ve made my first combination trade today & all thanks to your clear, well presented examples. 8)

I took a crack at the Eur-Usd as it fell through 1.4860 this afternoon....
...And I entered off my 15 minute chart when the price fell through another lower high & lower low at 1.4860

I saw the next level of support is down at 1.4760 on my 4 hourly chart, so I calculated my potential profit at approximately 100 pips with my stop loss at 1.4890 = 30 pips.


That’s a fantastic job, well done whipcrack!

I’ve compiled the chart snags based on the explanation in your post.

As long as you’re attempting to place yourself the right side of the momentum, with clear air to next level support or resistance & a correctly calculated risk stop, then you’ll stack the odds in your corner enough times to keep you ahead out there.

You might want to take a little extra care when looking to hide your stops. Price has a habit of kicking back around big figures & round numbers (virtually to the pip at times), seeking out weak hands & loose stops. But your idea was clever.

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Did I get the entry bar correct? or was your entry on the bar 4 more places to the right?

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Re: Combination Strategies

Postby whipcrack » Wed Oct 28, 2009 6:30 am

Navajo Joe wrote: You might want to take a little extra care when looking to hide your stops. Price has a habit of kicking back around big figures & round numbers (virtually to the pip at times), seeking out weak hands & loose stops. But your idea was clever.

Did I get the entry bar correct? or was your entry on the bar 4 more places to the right?


Hi Joe,

Yes, I made a bit of a basic error placing my stop there. It should really have been above that first lower high drop, beyond 1.4900 shouldn't it. I was very lucky not to have gotten stopped out when it pulled back.

Yep, you got drew the entry location right on the nail
I've exited my trade this morning at 1.4790. You can see why by looking at the 1 minute chart.
I'm happy that the trade played out more or less as I planned & although the momentum is still to the downside today, this area of support looks quite sticky.

Having said that, it will probably fall like a stone now :lol:
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Re: Combination Strategies

Postby goldtop » Wed Oct 28, 2009 9:45 am

Navajo Joe wrote:Simple & straightforward always trumps complex & in-depth, especially where money is concerned
If you can take a robust Daily chart set up & combine it with easily identifiable intra-day signals, you can more readily manage your trades & team them up with common time zone volume (activity) uptake.

Linking intra-day trades with the above Daily timeframe strategy, as London gears up for business, can offer excellent low risk opportunities on a very consistent basis.

By executing smaller timeframe trades in the direction of the larger timeframe trend, you stack the odds a little more firmly in your corner.


I too, have been following your posts on this thread combining a simple daily chart signal with a smaller time chart set up.

I very much like this concept, because I prefer to trade off smaller chart frames & this method attempts to keep you on the right side of the larger trend, whilst opening up multi opportunities on the smaller charts.

Although I've read about this principle on other trade forums, the explanations have been patchy & not very well explained. I suppose that reflects the experience & knowledge of the poster? but anyway, your posts are very easy to digest & I enjoy reading about how you construct a set up.

I hope you continue to post on this board. :)
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Re: Combination Strategies

Postby Joe Whitehorse » Thu Oct 29, 2009 5:33 am

whipcrack wrote:Yes, I made a bit of a basic error placing my stop there. It should really have been above that first lower high drop, beyond 1.4900 shouldn't it.


That was the more logical location sure. Like I said, quite often prices will spring back & test out weak hands that take their eye off the ball around these common round number levels. Reason being, lots of traders hide their stop losses & limit orders around those area’s.

You’re never going to be able to fully protect your entries if the market is determined to find the stops, but you also don’t want to unnecessarily expose your protective stops if you can help it.

I've exited my trade this morning at 1.4790. You can see why by looking at the 1 minute chart.
I'm happy that the trade played out more or less as I planned


You did a good job with that trade though, well done to you! You sure tagged the lower support shelf down there around your exit too – nice going.

Having said that, it will probably fall like a stone now


Yes, but you didn’t know that. Important thing to remember is, you planned your trade & you worked your plan. You identified clear, potential reward in an acceptable trade-off for the risk, & you took action based on your judgement call.

It’s all a game of probabilities & you called it as you saw it.
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Re: Combination Strategies

Postby Joe Whitehorse » Thu Oct 29, 2009 5:41 am

goldtop wrote:I very much like this concept, because I prefer to trade off smaller chart frames & this method attempts to keep you on the right side of the larger trend, whilst opening up multi opportunities on the smaller charts.

but anyway, your posts are very easy to digest & I enjoy reading about how you construct a set up.

I hope you continue to post on this board. :)


Hi goldtop,

Glad you're enjoying the content. It's not exactly brain surgery we're working on here. If you set your stall out correctly & you have a basic idea where you're headed, then it comes down to ensuring the risk stacks up against the potential reward.

If you got any specific questions or care to share a comment or three, then throw them right up! :wink:
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Re: Combination Strategies

Postby goldtop » Wed Nov 04, 2009 5:14 pm

I can see the benefits of using this Daily moving average & rsi combo set up in helping to determine directional bias for inter day trades.

When the daily bars are ranging, like they are currently on the last 7 or 8 days of GBP/USD, would you leave it alone until the pair establish a clearer directional pattern again, or do you think it would be safe to take a trade as the price crosses the moving average in the direction of the rsi?

Most of the pairs are currently exhibiting this indecisive behavior. It’s very frustrating if you’re trying to follow just one type of method. I suppose it would be best to have a back up plan when prices go into this sort of mode?
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Re: Combination Strategies

Postby Joe Whitehorse » Wed Nov 04, 2009 5:44 pm

goldtop wrote:When the daily bars are ranging, like they are currently on the last 7 or 8 days of GBP/USD, would you leave it alone until the pair establish a clearer directional pattern again, or do you think it would be safe to take a trade as the price crosses the moving average in the direction of the rsi?


According to the objectives of this specific method, yes I would.

Remember, you’re attempting to align yourself with a very particular bias based around a clear set of simple rules.
If the circumstances dictate that no trigger exists on the pairs you’re observing, then you have to sit it out & wait patiently until conditions slot back into place.

Obviously, that can take time if prices are ratcheting back & forth on low impact fundamentals or strained psychology.

If you’re looking for a little more action, you’re going to need to drop down a timeframe or two & adopt a slightly different stance.

A simple momentum trigger geared around smaller timeframe combination trackers will offer you a similar proposition to the combo shown currently here.

You say you prefer to work off smaller timeframes, what do you currently use to get you in & out of trades?
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Re: Combination Strategies

Postby goldtop » Thu Nov 05, 2009 7:18 am

I hear you. Lack of patience has cost me a lot of unnecessary losses in the past. It’s so easy to allow the discipline to slip & chase after trades that look great at the time, but on hindsight were nothing more than mirages.

So, what you’re saying is that if nothing is setting up on the Daily strategy you’ve highlighted here, look to another set up via a different set of criteria?

Could you explain more about the momentum triggers you mentioned please? Are you referring to specific time related or price related momentum moves?

I usually trade early morning breakouts on GBP/USD & EUR/USD or the Pound & Euro Yen cross pairs if they’re setting up ok.
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Re: Combination Strategies

Postby Joe Whitehorse » Fri Nov 06, 2009 8:59 am

goldtop wrote:So, what you’re saying is that if nothing is setting up on the Daily strategy you’ve highlighted here, look to another set up via a different set of criteria?


That’s about it, yes. Let the market come to you. Never try to curve or ‘best fit’ the market into what you’d prefer it to look like, & never chase a market.

Could you explain more about the momentum triggers you mentioned please? Are you referring to specific time related or price related momentum moves?


It’s nothing more exciting than simply using a combination or multi-timeframe set up to take on bursts of each-way momentum, ideally in tune with the trend on your higher or primary timeframe.

As an example, if you’re timing your trend or bias off a 60 minute chart, then you can drop down to a 5, a 1 minute or even a tick chart to fire your bullets.

Essentially, what you’re looking for is a clear, definitive burst of momentum or aggressive push out of a consolidation range to engage into.

You can either bracket the range/consolidation & leg into it via a small tester stake & then engage your full stake on the next pullback & continuation break of the 1st & corresponding momentum high (or low if it’s moving down) when it fully takes off.

That’s it.

I'll give you a visual example from this current weeks activity on the Cable. Scroll through one or two alternative pairs & see where you could have set up similar probabilities.

60 minute chart highlighting a couple playable set ups headed through prior momentum highs via pullbacks.

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Use the momentum high markers on the 60 minute chart as trigger entry levels for your smaller timeframe triggers. You can often locate pretty decent risk area's on the smaller timeframes to get a little better traction as price tests the momentum flows.

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Re: Combination Strategies

Postby whipcrack » Sun Nov 08, 2009 2:13 pm

Clever. :D

You certainly like simplicity, I’ll give you that!

I’ve spent a good few hours this weekend testing this multi-play set up on the 4 majors going back 6 months on a 60 minute/1 minute dual timeframe & I must say the opportunities are plentiful, & that’s just trading with a clearly identifiable 60 minute trend where one exists, as explained in your prior posts comments.

I like the generics of it because it reacts to, & reflects, the current volatility of the market. You’re essentially looking to piggy back a determined momentum shift & ride it for as long as it lasts by tracking it closely on the faster moving chart timeframe.

Am I correct in thinking that you’re only looking for very aggressive momentum shifts? You wouldn’t for instance take a trade on that moves gradually from A to B, pulled back & then followed through meekly at the previous momentum high?
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