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Re: Combination Strategies

Postby Spongebob23 » Wed Oct 21, 2009 1:37 pm

Hi Navajo

I like the way you using MTF (Multiple Time Frames) for your entry decisions, I have a very similar approach to you.

The first thing that people tell us when starting to trade is, THE TREND IS YOUR FRIEND!

I ALWAYS start with daily, then I like to look for a TF the is bucking the trend. Once I find that TF I then use that to enter on.

This is when one could use a variety of options to enter, inside bar, 1-2-3 setup, indicators ect, have a look at the following charts, at the bottom I have daily, then 4H AND 1H. The hourly chart closed above the rainbow MAs but short lived.

Cheers Lino
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Re: Combination Strategies

Postby Joe Whitehorse » Wed Oct 21, 2009 2:09 pm

Spongebob23 wrote:I ALWAYS start with daily, then I like to look for a TF the is bucking the trend. Once I find that TF I then use that to enter on.

Hi Lino,

Regular checks of the larger timeframes are definitely a good idea if a trader focuses & operates on the faster, intraday timeframes.
They help to balance & anchor the decisions more efficiently if you attempt to stay the right side of a Daily or 240 minute trend. That’s assuming of course, a definitive trend exists in the first place.

This is when one could use a variety of options to enter, inside bar, 1-2-3 setup, indicators ect


I agree. 1-2-3’s + inside & outside candles are very capable & successful entry primers in all market conditions, but especially during trending phases.

To be honest, as long as you recognize & determine the correct market phase or cycle currently unfolding, it doesn’t really matter too much what your entry signal is. If you engage when volumes (& spreads) are adequate & you adhere to sensible risk guidelines, you won’t get yourself into too much trouble.
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Re: Combination Strategies

Postby Joe Whitehorse » Fri Oct 23, 2009 3:11 am

The gbp/usd still offering good opportunities as the week draws to a close.
Not difficult to spot them really is it.

The Daily chart is becoming a little stretched with the RSI lining up on the top end of its axis, which mirrors the previous levels where the pair retraced to let out some steam.
Price is 100 pips away from the last major doji high @ 1.6740 & a further 4 handles from the years high @ 1.7040, and althought these indicators can remain overstretched for prolonged periods when in strong trend mode, it does require careful monitoring in tandem with any obvious neutral or reversal type price candles.

If the positive fundamental output continues to support the price action, then traders will certainly be aiming for a run at that August top.

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The 60 minute chart shows this weeks 1st clear support level where price managed to attract continued demand, & signalled a typical continuation ‘long’ entry yesterday as London volumes got into full gear.

The preliminary GDP figures are being released at 9.30am, & if they confirm the already positive output from similar recent data releases, then it won’t take much to push prices up to & beyond this next potential resistance area @ 1.6740.

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crash bang wallop!

Postby Joe Whitehorse » Fri Oct 23, 2009 5:20 am

Very disappointing prelim GDP numbers certainly kicked the British Pound between the legs this morning.
Traders didn’t like that one little bit.

It's as much to do with forward expectation than the actual dour figures. Traders don't like surprises, & they'll soon let the market know when they take a dislike to certain events :evil:

Pound attracting negative vibes right across the board, thus stopping out today's trade on a small loss.

Will be interesting to see where the daily bar closes into the weeks action & take a look to see how the next round of data gets shuffled into the (forward projection) pack.
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check your seatbelts are working properly!

Postby Joe Whitehorse » Sun Oct 25, 2009 5:24 pm

Cable will start the new week doing battle with the 1.6300 handle after that extremely disappointing forward growth expectation party pooper.

The 240 minute chart highlights a near term swing level @ 1.6250 & an area of support & resistance from September through October, 2 handles further back ahead of 1.6100 that will likely attract interest on any continued downside momentum.

There are 2 items of data printing Monday & Tuesday on the British Pound which will focus traders keen attention, even more so now that the GDP numbers stoked the flames of an economy still flagging badly behind it’s European neighbors.

Nationwide House Prices & CBI sales will be eyed very intently next week to either confirm & compound the already depressing picture, or offer a small ray of hope to traders that the Pound isn’t about to fall off the cliff.

If you’re looking to trade this pair specifically, there’s also a slew of top tier U.S data printing all through the week, including Conf Board Consumer Confidence/Durable Goods/Advanced GDP & Jobless Claims numbers.

Again, traders both sides of the pond will be adjusting positions accordingly to absorb this ongoing fundamental data into forward trade benchmark ratio’s.

An interesting week awaits, particularly on the Cable, now the cat has exited the pigeon coop!!

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Re: check your seatbelts are working properly!

Postby Joe Whitehorse » Mon Oct 26, 2009 4:18 am

Navajo Joe wrote:The 240 minute chart highlights a near term swing level @ 1.6250 & an area of support & resistance from September through October, 2 handles further back ahead of 1.6100 that will likely attract interest on any continued downside momentum.


Price has attracted support down at the 1st level earmarked yesterday during the early Asian session action.
Bracketing that early week high-low boundary for each way breaks looks the most appropriate option for today.

I'm not sure I'd have too much appetite to take any "long" trades on into Monday's price action, preferring to wait until some kind of confirmative upside momentum establishes itself via a determined higher high-higher low pattern.
There are 2 potential hurdles not far away from current levels where Cable could encounter problems.

Trading the short side (selling into weak rallies toward the top of the bracket) especially on a breakdown below 1.6250 would appear the more sensible alternative given the short term trend momentum.

Anyway, I guess everyone will play it as they see it.

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great thread

Postby whipcrack » Mon Oct 26, 2009 12:45 pm

hey Joe
I'm really enjoying your posts on this thread. thanks for putting up such clear, simple explanations of the price action.

there is so much confusing & conflicting information on many od the trading sites that it's real nice to see someone explain things without heaps of indicators all over their charts.

i've been searching all over for something like this, so I plan to be a regular viewer of this stuff. it's quite obvious you know what you're doing out there.

keep up the fantastic work man :wink:

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Re: Combination Strategies

Postby whipcrack » Mon Oct 26, 2009 2:29 pm

forgot to ask on the previous post, but what screen capture software are you using to post the charts with please?
thanks,

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Re: Combination Strategies

Postby Joe Whitehorse » Mon Oct 26, 2009 4:21 pm

Hello whipcrack
Glad you find the material useful.
Simple works just fine. No need to go overboard on the indicators, which is why I used a couple of the plain strategy examples from the front page.

If you can plot a basic trend step ladder (higher highs & higher lows going up, lower highs & lower lows going down) & match that very simple concept up with a dual timeframe workstation, then you've got most of what you need right there.

Add one or two common set ups that usually present themselves on & around regular price level area's & you can play all day long providing you bolt on a robust trade & risk management vehicle to run alongside it.

Price action is simply the result of psychological warfare between buyers & sellers. Find a previous area where one side clearly gained control over the other & watch it next time price rotates up or down to meet it again. Chances are, it'll react with enough momentum to allow you to get in & out with reasonable comfort.

I use an impressive piece of kit called SnagIt for my chart captures.
http://www.techsmith.com/screen-capture.asp

It does a whole host of various things, & I can control the sizings & visuals of whatever it is I choose to post or save.
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Re: Combination Strategies

Postby whipcrack » Tue Oct 27, 2009 4:02 pm

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

I downloaded the snagit software (thanks again by the way), but haven’t got to grips with getting it all working properly. I’ll have a go at posting charts next time hopefully.

I took a crack at the Eur-Usd as it fell through 1.4860 this afternoon. Daily chart was below the 5 moving average & the rsi was down past the 50 line.
The 60 minute chart had made a lower high & fallen through another round number figure (1.49)
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.

A possible 1:3 risk to reward trade.

I wouldn’t have even considered this type of multi combination analysis if I hadn’t seen this thread, so thank you again Joe.

Ps, my stakes were small. Only risking .75% of my account as I’m only testing things out to see how it suits my style etc.
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