Forex Trading With Simple Setup - page 26
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Ramds... thank you again for all your work... I have witnessed it on my charts... already many times... your creativity at work... its just perfect... I guess we just need to adapt to the changing interrelation of the price-SMAs on the charts... sometimes everything is being drawn perfectly... sometimes above SMA50... or below... but the pattern is holding... it may also be showing differently with different pairs... and time-frames... like the referral SMA could be SMA150... am I right, seeing the pattern and its relation/position to SMAs, being the most important element of your system...? Also, in my travels I came across Spudfyre's StochsTS... here... I belive it could be interesting to see the TWO systems working in tandem... check it out... let us know what you think... -thanks again, will PM you
Hi EnkiJr,
I read thread you mention, Spudfyre has explain in very nice way. first few post are very nice regarding how he trade,
Regarding his system which is based on Stochastic, i have used it before, Stochastic don't tell at what price you buy or sell, so i don't use. But one can always refer it for direction.
Best Regards
Ramdas
nice system
Hi Ramdas,
couple of days ago I have been pointed to your thread about price action vs SMAs. It's interesting concept, I do use some MAs in my system, but what I found quite interesting is that you represent price itself (bars) with that shortest SMA which filters out a lot of noise around.
I think there is a lot of "guts" feeling in your method involved, do you agree ?
If you don't mind would you post few interesting examples from last two days (bad and good) in order to get idea how would you deal with things in this tough market conditions ?
Thanks a lot,
Regards,
Endy
Hi Ramdas,
couple of days ago I have been pointed to your thread about price action vs SMAs. It's interesting concept, I do use some MAs in my system, but what I found quite interesting is that you represent price itself (bars) with that shortest SMA which filters out a lot of noise around.
I think there is a lot of "guts" feeling in your method involved, do you agree ?
If you don't mind would you post few interesting examples from last two days (bad and good) in order to get idea how would you deal with things in this tough market conditions ?
Thanks a lot,
Regards,
EndyHi, Endy
Here is latest example of jpy pair, look at movement of three pair, how they are moving with giving respect to SMA. when one reaches res, other wait,
Best Regards
Ramdas
Hi Ramdas,
to be honest, yesterday, I was watching exactly those funky yen pairs, how they ride hand in hand.
To be more precise, the carry trade story behind those pairs seems to be the major influence. When there is an unwinding of positions (like the one started at April 17th) it is interesting to watch when the pairs stop falling.
For this case, EURJPY and GBPJPY, hand in hand bounced of 300 SMA on 1H.
So from this point of view, it is quite amazing.
I will study now the price with more interest.
Not only 5Min chart but also 15M and 1H are very interesting.
So far my understanding is, that red SMA should be the immediate "indicator" as to which direction the price is moving. Should the price be under 50SMA, I should look for getting short, ideally when the price gets back to the 50SMA and bounces off and vice versa.
As to the other SMAs, I should watch the interaction of the price when it gets there and see what happens.
Regarding this, did you experience any other "special" function of SMAs concerning the period of the SMAs ?
Appart from the one, that the bigger period the bigger the ressistance/support should it serve as ?
And finally one more question, do you consider "confluence" of more SMAs to serve as a sort of "fortified" barrier (see the example I attached)?
Thanks for your time,
Best regards,
Endy
Hi, Endy
Here is latest example of jpy pair, look at movement of three pair, how they are moving with giving respect to SMA. when one reaches res, other wait,
Best Regards
RamdasHi Ramdas,
to be honest, yesterday, I was watching exactly those funky yen pairs, how they ride hand in hand.
To be more precise, the carry trade story behind those pairs seems to be the major influence. When there is an unwinding of positions (like the one started at April 17th) it is interesting to watch when the pairs stop falling.
For this case, EURJPY and GBPJPY, hand in hand bounced of 300 SMA on 1H.
So from this point of view, it is quite amazing.
I will study now the price with more interest.
Not only 5Min chart but also 15M and 1H are very interesting.
So far my understanding is, that red SMA should be the immediate "indicator" as to which direction the price is moving. Should the price be under 50SMA, I should look for getting short, ideally when the price gets back to the 50SMA and bounces off and vice versa.
As to the other SMAs, I should watch the interaction of the price when it gets there and see what happens.
Regarding this, did you experience any other "special" function of SMAs concerning the period of the SMAs ?
Appart from the one, that the bigger period the bigger the ressistance/support should it serve as ?
And finally one more question, do you consider "confluence" of more SMAs to serve as a sort of "fortified" barrier (see the example I attached)?
Thanks for your time,
Best regards,
EndyHi Endy,
As i explain in thread, setup is simply base on SMA50 of each time frame, 5min, 15min, 30min,1Hr and 4Hr, On 5min chart, each SMA represent respective sma of respective time frame, SMA600 represent SMA50 of 1Hr chart, sma2400 represent SMA50 of 4Hr chart. so setup is made in such a way that you are watching timeframe up to 4Hr timeframe on 5min chart.
since on chart most of the time we see price react to these sma, mwhen market is trading on technical it works,,when market is under strong enfulance of other factor you may find price goes beyond and all technicales are scatter, also during daily supply/demand for real money.. market goes beyond these sma. but after some time market comes back on track of technicales.
if you are observing daily timeframe, best is use sma50, sma100,sma200 and sma300, on daily chart. major actions are taken at these sma. and we can observe price pattern on 5min setup.
And finally one more question, do you consider "confluence" of more SMAs to serve as a sort of "fortified" barrier (see the example I attached)? Endy
more SMA combine at one spot, more supprot/resistance at that point,
if SMA50 ,and SMA150 combine more price action is likely to happen.
You will amaze if you observe 1min chart also..it apeares price is very smart
Best Regards
Ramdas
1m charts
Hi Ramdas,
here is a 1 min trade, which caught my attention on Friday.
I actually took small long position on break of that down channel, but the entry was based on other system.
See my comments on chart in regard with MAs.
Would you mind to comment this situation, as per your experience if there is not too much speculation from my side (i realise it is easy to speculate on history charts, but one must not just learn on live emerging situation (as that would take too much time), but also see history, I think).
And one more thought I'd like to say out loud regarding stop loss settings.
I agree with what you mentioned in thread, that SL should be pretty tight if one plays on SMa bounce (if the bounce won't work out, one just takes minimal loss and waits for another opportunity). But SL should not be something one thinks about only at the beginning of the trade, it should be also managed while the trade is running to protect profit already on your side. In this case I would go either for trailing stop (which is highly dependent on specific currency pair volatility), or simply keep the SL under MA (in case I am long).
Could you please try to express your opinion ?
Thanks.
I hope I am not taking too much of your time with my posts.
BR,
Endy
Hi Ramdas,
here is a 1 min trade, which caught my attention on Friday.
I actually took small long position on break of that down channel, but the entry was based on other system.
See my comments on chart in regard with MAs.
Would you mind to comment this situation, as per your experience if there is not too much speculation from my side (i realise it is easy to speculate on history charts, but one must not just learn on live emerging situation (as that would take too much time), but also see history, I think).
And one more thought I'd like to say out loud regarding stop loss settings.
I agree with what you mentioned in thread, that SL should be pretty tight if one plays on SMa bounce (if the bounce won't work out, one just takes minimal loss and waits for another opportunity). But SL should not be something one thinks about only at the beginning of the trade, it should be also managed while the trade is running to protect profit already on your side. In this case I would go either for trailing stop (which is highly dependent on specific currency pair volatility), or simply keep the SL under MA (in case I am long).
Could you please try to express your opinion ?
Thanks.
I hope I am not taking too much of your time with my posts.
BR,
EndyHi Endy,
I agree on all your point's,
We have only History and present in front of us to predict what can be expected ahead.
what situation or price pattern has caused majority traders to go long is important to recognise, and which can be study from history,
Regarding chart. 1Min entry has to be in direction of 5min direction. here if price shows resistance or seling presure at perticular price band, and price develop reversal pattern , then there is no reason to hold trade,
Best Regards
Ramdas
Hi Ramdas,
just to be sure, by 5min direction, you mean price position in regard with 50SMA on 5M TF (we're under 50SMA->short, we're above 50SMA->long), do I get it correctly?
Based on this, the 1min trade on eurjpy i showed should be fine, or it just lucked out?
Thanks and regards,
Endy
Hi Endy,
I agree on all your point's,
We have only History and present in front of us to predict what can be expected ahead.
what situation or price pattern has caused majority traders to go long is important to recognise, and which can be study from history,
Regarding chart. 1Min entry has to be in direction of 5min direction. here if price shows resistance or seling presure at perticular price band, and price develop reversal pattern , then there is no reason to hold trade,
Best Regards
RamdasHi Ramdas,
just to be sure, by 5min direction, you mean price position in regard with 50SMA on 5M TF (we're under 50SMA->short, we're above 50SMA->long), do I get it correctly?
Based on this, the 1min trade on eurjpy i showed should be fine, or it just lucked out?
Thanks and regards,
EndyHi Endy,
Yes you are correct,
You can check USD/JPY, GBP/JPY and EUR/JPY, what these three pair says ? three fall below 5Min 50SMA
1Min eur/jpy trade shown in your previous post. was fine. But why E/J did not rise further ?? , logical reason is very clear. USD/JPY reach 5Min SMA2400 and started correcting, and pulling other jpy pair. if you only look at EUR/JPY on single full screen chart. then movement looks confusing, but as a three pair it looks logical.
Best Regards
Ramdas
You're 100% correct, I am using now already for some time screen configuration, where in upper part I have EURUSD, GBPUSD and USDCHF, and in the lower half of the screen I have all three mentioned yen pairs EURJPY, GBPJPY, USDJPY.
That way, I know, if some pair starts to move, where the move comes from. Then I am more confortable placing a trade, when USD or JPY is cause of the move, because that most likely ensures that move will last longer.
That EURJPY example I provided was made bigger due to screeshot purposes.
Exactly what you mentioned with USDJPY hitting that big ressistance happend also at April 18th (5min tf), when EURJPY stopped other JPY pairs from falling (the support later on gave a way, but for a short trade placed before, that would be wonderful profit target).
And just day before, GBPJPY hit also significant support (600SMA), actually this was strengthen by USDJPY hitting 2400SMA.
For many months now I have been dealing with many TA methods (some very good, some good and some mediocre), but so far, this setup beats everything in its simplicity and potential.
I think it's human nature to look for complex and complicated solution, to make one satisfied that he's made of something a rocket science, so hence it must work, when most of the time it's our own head we need to work with.
Thanks for sharing the method and good luck with your trades.
BR,
Endy