Technical Templates

[midgely88]

Is this type of background work ideal?

I lay my stall out much the same way as most of the other guys when deciding which specific pairs to focus on from each countries offerings.
I simply copied the template from a post submitted earlier in the thread.

As with that recommendation, all my research pairs are set to a 240 minute default covering at least 6-7 weeks of activity.
That's enough to give me a very quick heads up to which pairs are currently exhibiting the types of high probability background behaviour we consistently look for.

I'll use Yen as an example, but the criteria is the same across all the currencies.


So from the available Yen selection I would filter out nzd/jpy & aud/jpy as my 2 clear candidates from this profile because they're exhibiting strong, established & easily identifiable trending behaviour in comparison to the other 4 pairs in the profile.

I will have each major currency profile set out exactly the same so that when I toggle through on a weekend or during the week I can very quickly identify & determine which pair selections are worthy of transferring across to my day-to-day workstation.

I only pick out the very obvious trending instruments for inclusion on that workstation & then filter them down further to the 4 strongest candidates. I will then wait for the usual sub hourly set ups & triggers to form from those strongest background pairs.
I don't really need any more than that otherwise it becomes too unmanageable.

For what it's worth, i've selected gbp/nzd & eur/nzd from my kiwi list for close monitoring next week.
That process takes me approx 15-20 minutes each weekend & about the same amount of time halfway through the week if something has changed in the fundamental landscape to impact & influence a particular regions currency basket.

[jcpfx]

As with that recommendation, all my research pairs are set to a 240 minute default covering at least 6-7 weeks of activity.
That's enough to give me a very quick heads up to which pairs are currently exhibiting the types of high probability background behaviour we consistently look for.

So from the available Yen selection I would filter out nzd/jpy & aud/jpy as my 2 clear candidates from this profile because they're exhibiting strong, established & easily identifiable trending behaviour in comparison to the other 4 pairs in the profile.

I only pick out the very obvious trending instruments for inclusion on that workstation & then filter them down further to the 4 strongest candidates. I will then wait for the usual sub hourly set ups & triggers to form from those strongest background pairs.
I don't really need any more than that otherwise it becomes too unmanageable.

For what it's worth, i've selected gbp/nzd & eur/nzd from my kiwi list for close monitoring next week.
That process takes me approx 15-20 minutes each weekend & about the same amount of time halfway through the week if something has changed in the fundamental landscape to impact & influence a particular regions currency basket.

Thats a good setup Midgely, nice and simple. I have reverted to the Daily chart as the main time frame for finding the trend, the main sup/res and then the 1H chart for the foreground structure (stair step motion or consolidation are the interesting structures) and sub-hourly only if i need a pullback.

I pay over 5 pips spread on GbpNzd and over 4 pips on NzdJpy. I've been trying to limit the amount of commissions I give my broker, so I am not playing anything over 3.5 pips spread. Over a large number of trades, the commissions add up to quite a number if you're not careful. I do admit that they both look good and still have a little bit of space to go until the next major levels, as do AudJpy and NzdJpy.

Thanks for sharing your thoughts and good luck to you going into the week. Remember that Aussie has a holiday tomorrow so the Aud pairs will probably get their personality back on tuesday.

[round number]

I lay my stall out much the same way as most of the other guys when deciding which specific pairs to focus on from each countries offerings.
I simply copied the template from a post submitted earlier in the thread.

I use that template too for filtering my primary background pairs.
That's what's helped to keep me positioned the correct side of aud/cad, eur/aud, eur/nzd & gbp/aud for the past few weeks.

Those types of near perfect trending behaviour, where the hourly higher high/higher low or lower high/lower low sequence is so well structured, don't present themselves very often, so whenever they do it makes sense to milk the situation for all it's worth.

They remain prominently displayed on my trade blotter again this week & I'll continue to flip between whichever one is offering the best opportunity for as long as they remain in vogue.

[jcpfx]

I lay my stall out much the same way as most of the other guys when deciding which specific pairs to focus on from each countries offerings.
I simply copied the template from a post submitted earlier in the thread.

I use that template too for filtering my primary background pairs.
That's what's helped to keep me positioned the correct side of aud/cad, eur/aud, eur/nzd & gbp/aud for the past few weeks.

Those types of near perfect trending behaviour, where the hourly higher high/higher low or lower high/lower low sequence is so well structured, don't present themselves very often, so whenever they do it makes sense to milk the situation for all it's worth.

They remain prominently displayed on my trade blotter again this week & I'll continue to flip between whichever one is offering the best opportunity for as long as they remain in vogue.

Ok, the bias identification method has been repeated many times...and where I always fell short (and was corrected a little using the daily chart) was the day/level at which the bias changes from long to short or vice versa - and consequently the exact moment that you start looking for a trade in that direction.

It would help me (i think) to see a couple of examples of where you started to look north/south and when you felt it was safe to pull the trigger. After all, we're trying to get into newly established trends as soon as they are strong enough or evident enough, correct?

Thanks guys!

[goldtop]

I'm not so sure you fall short on the identification part as much as abandoning or ignoring an established trend far too early in favor of lower quality stuff.
A recent example being your overstretched comments regarding eur & gbp v/s aud.
While you were choosing to fish elsewhere others were continuing to bet them to higher prices as evidenced by their weekend focus & update commentaries.

The only time to stand aside on a strongly trending instrument is when the technicals begin to confirm an exhaustive and/or reversal type phase, neither of which has been demonstrated on either of those two yet.

As for the initiation or seeds of a fresh trend, the thread is awash with examples jcp.
There are a couple of alternatives regularly shown on here designed to appeal to the individuals trading style & objectives.
You can either use a moving average guide on your preferred primary timeframe chart which has been consistently presented throughout the thread to help with positioning & adjustment, or you can simply adopt the standard price based momentum/sentiment gauge of applying one or more higher high-higher low/lower high-lower low steps, again via whichever timeframe based chart you prefer to plot it from.

There is no magic level or time period that will accurately determine when a trend is done & dusted. Some will flip over in perfect structural form & others will need to trade through a consolidation phase before confirming it's intent.
Besides, you don't need to be in at the very beginning or turn of a trend. What you need to do is recognize when it's in motion & place your bets in tandem with that cycle.

[jcpfx]

I'm not so sure you fall short on the identification part as much as abandoning or ignoring an established trend far too early in favor of lower quality stuff.
A recent example being your overstretched comments regarding eur & gbp v/s aud.
While you were choosing to fish elsewhere others were continuing to bet them to higher prices as evidenced by their weekend focus & update commentaries.

Hello Goldtop and thanks for comming up with this feedback. The words "abandoning/ignoring an established trend too early" do resonate a lot with me. Guilty as charged and I've got work to do here.

As for the initiation or seeds of a fresh trend, the thread is awash with examples jcp.
There are a couple of alternatives regularly shown on here designed to appeal to the individuals trading style & objectives.
You can either use a moving average guide on your preferred primary timeframe chart which has been consistently presented throughout the thread to help with positioning & adjustment, or you can simply adopt the standard price based momentum/sentiment gauge of applying one or more higher high-higher low/lower high-lower low steps, again via whichever timeframe based chart you prefer to plot it from.

What you need to do is recognize when it's in motion & place your bets in tandem with that cycle.

I am going through the procedure of changing my mentality to "continuation" from "interruption". It comes from the first quarter of my trading in 2012, where my focus on levels always had me looking for levels that were strong enough to block the trend. It's just the wrong mentality, and it's gradually changing.

I'm going to put my head down again and see what bad habits I can straighten out before running into the next road block!

Thanks again

[grantyboy]

Wanted to introduce myself to this excellent forum and would like to contribute with musings in the coming days.

After starting to learn about Forex around August last year I did all the usual things, read babypips start to finish, stacked up loads of indicators, read loads of short term strategies and then ditched them after a couple of losses. After a few months I realised that apart from the odd hot streak, my demo trading would go from ok and then gradually start to lose more and more as reactionary guess work became more prevalent.
Eventually I realised that despite all the indicators, when it came to pulling the trigger, I was always looking at the price first. I also recognised that nearly all indicators are derived from the price action and therefore going to the source was where I needed to focus. Gradually the indicators disappeared one by one and then I somehow stumbled across the Technical templates. Firstly the other one on the other website and now this one.

It's become quite clear to me that this is the only way to trade for my personality. I thank all the contributors for your ongoing posts and the application of your principles has me profitable in demo for the last 3 months. To the point where I'm now considering going live on a part time basis.

It's clear that many of the contributors know what you're doing and don't need to share but that you choose to do it anyway. There are also those that are learning but you're teaching me as well.

Thanks to all.

[grantyboy]

Jumped on board this morning on a break below the Sydney / Tokyo open @ 91.677 and then slowly skimmed off profits on the way down with the remainder of the position being closed @90.806. Then got a bit cocky and gave a bit back with some knee jerk trades. It now seems to me that the market is in a bit of a consolidation period with some uncertainty where this pair goes next with strong interest both above and below. Still learning so feedback welcome.

[shona123]

It now seems to me that the market is in a bit of a consolidation period with some uncertainty where this pair goes next with strong interest both above and below. Still learning so feedback welcome.

The simplest & most logical way of confirming upside or downside dominance of an established trend & therefore ensure you are trading in sync with that momentum is to continually check the technical structure remains intact.

In the case of AUDJPY the prior swing high last Monday at 93.80 wasn't threatened by Wednesday's attempted push up, & that lower high underneath 93.0 wasn't violated by Thursday's late rally.
Until that technical swing structure is invalidated the higher probability stance is to sell into those rallies & remain positioned to the short side of that pair.

[grantyboy]

It now seems to me that the market is in a bit of a consolidation period with some uncertainty where this pair goes next with strong interest both above and below. Still learning so feedback welcome.

The simplest & most logical way of confirming upside or downside dominance of an established trend & therefore ensure you are trading in sync with that momentum is to continually check the technical structure remains intact.

In the case of AUDJPY the prior swing high last Monday at 93.80 wasn't threatened by Wednesday's attempted push up, & that lower high underneath 93.0 wasn't violated by Thursday's late rally.
Until that technical swing structure is invalidated the higher probability stance is to sell into those rallies & remain positioned to the short side of that pair.

Thanks Shona. So to summarise, I will let the market tell me that it has turned rather than speculating that it might to be turning. However, I will also remain conscious of that 90-89 support zone when calculating R/R. A break through there though and it seem's there's a lot of clean air.