Trading Methods, Techniques and Ideas

Edward

This 9ema did the trick it is awesome. I use it with both RSI,stochastcs and auto tren indicator. What do toy like for range markets I can trade only day charts, do to job and living on west coast USA.

Thnaks So Much
Dennis

The answer is here:
http://forums.forex-strategies-revealed.com/seeking-professional-advice-...

Hi Edward,

Great website you have here & the comment posted is very informative and useful to Forex newbies like myself. Somehow, when put into practice the various recommendations and trading tips, I find difficulty to meet up to expectations.

Recently, I went into LIVE trading. Although with more than 6 months of Demo account practise, I find LIVE trading demands a lot more personal attention with increasing mental stress compared with Demo Account

I use 1 minute or 5 minute charts to place Entry Orders, as well as seeking guidance of trend evaluation from daily, 4 hour, 1 hour including 30 minutes charts, however, most of the trades lost money.

I only trade the EUR/USD pair. Sometimes, taking advantage to ride the waves of the changed trend hoping to earn some pips, but left the former Positioned Order opened and anticipating for a reversed trend (greed), unfortunately, the outcome came out otherwise with greater LOSS by chasing the market (whipsaws), rather than waiting for the market comes to me.

These random market price movements are not well defined or predictable, and I find great difficulty earning positive profits through such haphazard trading approach. My perception, having read many Forex trading notes and web pages, the focus on short time frame (1 minute and 5 minute) to Long or Short trades are not suitable for newbies like me to rely on. There is great truth towards the outcomes from my current trading practices.

Now I am at the crossroad seeking for a correct compass direction to move along that improves my Forex trading methodology and skills. I wish you could advise me as to what the next step or action (strategy) be taken in order to progress and advance in Forex trading.

Hi Matt,

Thank you and welcome!
The approach you've described, I call it a breakout strategy. There are plenty of those in Forex. Some classic examples are: the inside bar breakout strategy, the Bollinger bands squeeze breakout strategy, numerous versions of breakout strategies looking to catch and profit from rising volume during the opening of a new Forex trading session etc.

Regards,
Edward

Hi Edward,

First of all, I would like to say thanks for a wonderful and very informative website!

I just recently started looking into Forex and technical analysis, trying to read as much on the subject as possible. I was wondering if it is possible to use options strategies in the currency market. For example, to bet on high volatility (or that a possible breakout will occur but you are unsure of which direction) one could create a "straddle" using stop-losses. I have been unable to find any such strategies online. Is this ever done or am I missing something?

Thanks again from Canada,

Matt

It's one of my favorite setups.
I expect it to work same well with futures.

Regarding stops, if a pullback is so strong that it goes beyond the entry candle, I don't like to be in that trade anymore anyway. Also such pullback will most likely result in a candle closing on the opposite side of 9 EMA, which again suggests exiting.

Regards,
Edward

Sorry about that i posted on the on wrong page. I was asking about the 9ema strategy.

I'm working to trade it with futures. Do you know if the 9ema set up is successful
Thanks

Terry,
For which strategy is it?

Looking into this set up. It's seem to have a great edge. Where would be a good place to enter a stop? I noticed above/below the entry candle could be tight due to a possible early pullback.

thanks,
Terry

ps thanks for the GREAT sight

You're welcome!

Thanks for the method, I'm always entering to early. Thanks again for sharing.

Hey Peter:

A fellow Jamaican here, very impressed by your work, a great mind you have there keep it up. I need a partner just like you.

Best regards from the US
AMW

That's a good suggestion. I'll plan some MM topics for the future.
Thank you, Steve.

Regards,
Edward

Hi Edward
may i suggest you add a money management section.
leverage is a double edged sword
steve b

Hi Peter,

I like the way you approach trading, it'll reward you in the future.

I should point out that analysing Moving averages by looking at history charts is different from doing a forward testing. The problem is: moving averages like to cross and then later "uncross" upon calculating new values as the time goes by.
It should probably happen more in the case with EMAs' crossover, because they put more value on the recent price changes - react faster. But then, they are as well fast to change their statements ("uncross"). SMAs are much smoother and don't alter their parameters too much.

For daily as well as 4 hour and 1 hour trading the preference is given to SMA indicator. They are more likely to react in time. Sometimes they'll be faster, at other times, not. There are no perfect moving averages that would always be sharp right on signals.

You're right about the momentum observed upon Moving averages crossover.
If you look closer, you'll be able to see that after a moving averages cross, 90% of the time a price will retrace before a rally. Entering on that pullback/pause is the best place to be. (Sometimes you'll see a retracement on the same time frame, sometimes you'd need to look at a faster time frame to spot it).

Keep up the good research and tests!

Best regards,
Edward