CatFx50 - page 467
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Hi moneyline,
First of all, I'm not a beginner in the financial markets (I've been trading stocks and warrants for years) and my questions were specific to the CatFX50 method. To my knowledge, they haven't been answered in this thread.
Nina says that the BUY signal is triggered when the first candle -crosses- the EMA 50 line, but there are several possible configurations. The white candle can open below the EMA 50 line (as represented in the pic at the beginning of this thread) or open above and in this very case, only the bottom tail of the candle (also called shadow, if you didn't know that term) will cross the line.
My second question is as simple : Nina says the second candle must open above the EMA line, but if it ever closes below, THEN it would make a black candle. That's why I asked whether this signal was still a valid one.
About the indicators, I know they don't come with an intruction manual, but I've been surprised to see that dozens of indicators were posted to this thread without any explanation about how to use them within the frame of the CatFX50 method. I guess it would be pertinent to post a report of all the indicators, their optimal parameters and their performance. Does that make sense ?
Regards,
Mark
Hi Mark, welcome aboard
The first candle can be either of them. What does this mean? --> (the lower shadow may only cross it)
The EMA 50 line can be crossed from above (a bear) or under (a bull)
I don't get it. Is this a question pertaining to CatFX50, or more related to learning the basics of reading the charts? If it is, go to the newbie section and read at will.
BTW, if a candle opens above EMA 50 and closes under it, it is a bear candle. Candles that open low and close high are bulls, candles that open high and close low are bears.
Most of the indicators don't come with instruction manuals. You can gather some information by doing Web searches, or you can search the forum. If you simply install the indicators and examine them VS price action, you should get a good idea of how they work.
Regards,
Mark
moneylineHi Mark,
First of all, I'm not a beginner in the financial markets (I've been trading stocks and warrants for years) and my questions were specific to the CatFX50 method. To my knowledge, they haven't been answered in this thread.
Nina says that the BUY signal is triggered when the first candle -crosses- the EMA 50 line, but there are several possible configurations. The white candle can open below the EMA 50 line (as represented in the pic at the beginning of this thread) or open above and in this very case, only the bottom tail of the candle (also called shadow, if you didn't know that term) will cross the line.
As far as I know the candle wicks are not a consideration for CatFX50.
As to the candle described above, I have never considered trading CatFX50 within that context since it would indicate a very choppy market. So, yes, it could happen, but I wouldn't trade it.
My second question is as simple : Nina says the second candle must open above the EMA line, but if it ever closes below, THEN it would make a black candle. That's why I asked whether this signal was still a valid one.
So what you mean is that one candle crosses up, then another candle crosses the EMA50 in the opposite direction? Again, that type of double entry signal can happen but it also indicates a choppy market.
About the indicators, I know they don't come with an intruction manual, but I've been surprised to see that dozens of indicators were posted to this thread without any explanation about how to use them within the frame of the CatFX50 method. I guess it would be pertinent to post a report of all the indicators, their optimal parameters and their performance. Does that make sense ?
It sure does! Since most of the work performed at this forum is done by folks that volunteer their time to help others, would you like to volunteer to help us organize and arrange this thread? It sure would come in handy and make it easy for all!
moneyline
May I add to the above comments and not discredit them, that a certain amount of descretion is needed when trading with catfx, it is not a purley mechical system as you might well be aware.
So true, so true Dave. Excellent comment!
moneyline
May I add to the above comments and not discredit them, that a certain amount of descretion is needed when trading with catfx, it is not a purley mechical system as you might well be aware.
As with any system -- they need humans that know how to think and judge market conditions for themselves, so the system can work to the best advantage.
Well, as you may have guessed, I asked these questions because I'm implementing an EA version of the CatFX50 based on the (simple) rules described by Nina. So far, I haven't obtained very good results during the backtesting (because of too many false signals). That's why I wanted to know the trading rules more in depth.
Now, if you all consider that CatFX50 is rather a discretionary system and can't be automatized, this thread isn't for me.
In answer to moneyline, I'm especially looking for an indicator that detects choppy markets ! StepMA_stoch is a good one, because it totally filters out weak variations.
The problem of intraday discretionary trading lies in the fact that you can't concile it with a professional activity. I do have a time-consuming job, and it absolutely prevents me from watching a price chart all day long. I don't know how you practice your trading activity, but my own ambition is to build a trading system that does not require (or very little) any human intervention. Of course, I could give up my job and try to live on trading, but it would require quite a big capital, and it would be very risky.
aww. i stayed out of the markets completely today, not even opened up the charts. i was thinking that markets were going to be just as choppy as yesterday. i was wrong.
NINA would you please post a commentary on today's trades? if possible of course. Thank you.
aww. i stayed out of the markets completely today, not even opened up the charts. i was thinking that markets were going to be just as choppy as yesterday. i was wrong. NINA would you please post a commentary on today's trades? if possible of course. Thank you.
Hi!
Today has been a very, very gorgeous day for CatFX50.
It has given more than 356 pips.
Nina
Nina, can you give new levels to look out for? Thank you.
Trade Levels Question
Below I have attached a chart of CHF. Is the first circle (left side) a level 3 trade? It was bullish above 50EMA with green Step-Hist now it has come down through the 50EMA, blue candle opens below 50 but closes just above 50 EMA and Step_Stoch has turned red. Step_Hist stays red for 5 candles then price moves up and Step_Hist turns green
In the second circle (right side) it appears that the same thing is happening as in my first example. The only difference is the candle (first red candle) after the break of the 50 EMA clearly opens and closes below 50 EMA. There are 4 bars with Step_Stoch that are red and when price moves up through 50 EMA Step_Stoch turns blue.
Can someone tell me what level they think each trade is and why they think that way? More frequent crosses of the 50 EMA seem to happen on days when the market is choppy. One of the problems I have is I can't always tell if the market looks choppy or when price breaks the 50 EMA it looks like a clear signal (level1) that will move away from the 50 EMA. It's usually after the days candles have completed that I can see that the market was a choppy and I should have stayed on the sidelines. Hindsight is a wonderful thing in Forex trading, it makes Forex gurus look brillant. The problem is when this is happening on the right hand side of the chart with live candles it's not always easy to determine to stay out of the market. If anyone has any suggestions on how to determine choppy market conditions I would be appreciative to hear your thoughts.
Cheers,
Dave