School of Pimpology - page 55
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big hello to my fellow traders
Hello there,
I trust you are all keeping well and taking some great trades. Some of you may know me from previous forums & websites. I have just returned from my 4 week holiday in Kenya, which was really nice. A big thank you to all the guys who have emailed me and sent their regards via various means. I will respond to each email as soon as I can.
For those that don't know me, I have been trading for around two years following the strategy that is executed in the boiler room. I specifically follow gold, EURUSD and cable and intend to become a specialist in these three.
I'd like to take the opportunity to thank FXpimp, for his continued hard work and commitment in setting up this thread and for helping people understand the strategy that we follow. You have clearly been busy whilst I was playing with the monkeys lol.
I look forward to working with you all over the coming weeks and months.
Regards
Hemal
Good to hear from you Hemal.
Welcome to the mad house.
Welcome Back Hemal
Hi Hemal
Great to see you back and posting on the thread. Gold, EURUSD and GBPUSD are my favourite pairs to trade too so I will be watching out for your posts.
Hope you had fun with those monkeys!
Scorpion
Entering into the Pimpology World
Hi there Traders,
I'm a fresh new leaner of the Pimpology Madness, and I hope we all make a team of sucessful traders...
I have some questions about it...
1)What parameter makes the sound alert plays? as it has played like an hour ago (GBPUSD) but i cant see any clear sign of entering the market...
2) The M5 Madness doesnt take into account the Oil-Gold price behavior?, i mean, all i need to operate is found within the 5M Chart (CCI's, EMA's, Pivots) or do i have to check anything else??
3)Always is required or advisable to operate after a trendline is broken, or i can operate within the trend with the Pimpology, as i have seen the previous posts that the PIMP most of time drawn trendlines broken ...
Thanks Pimp for sharing your knowlegde.
My best regards.
GBY.
Which is best?
Which is the best to operate? Within the trend or after breaking the trend?
This is the GBPUSD from just now
GBPUSD.
The 252 is your guide for this strategy. If you go against it you will get some nice little trades but alos a lot of losing ones.
However, the 0.0 line on the 252 is approximate to the 69m 20ema so a break of that will also more-or-less see a break of the 252CCI.
Personally, I'd prefer a break of that area then a retrace, then for it to sit on top of the 60m 20 and find support.
You'd still be against the 4hr trend by this stage but it's a possible play.
In these situations when feel it necessary to go against the 60m trend then just make sure the 1m 20 is on top of the 5m and the 5m should be also above the 15m, then at least you have 3 layered protection
Dow Jones
Here is a possible scenario for you indices traders.
Dow Jones Is getting wedged in here, and fundamentally with Crude still falling this should be making a move to the north, but its not.
I fancy a little bit of a mess about over the next few days, for Crude to bottom-out somewhere and for this to fall.
Is is in between the weekly pivot above and the monthly below, so on that score with the weekly above the monthly the sentiment should be up but I don't buy it and my sell irder is below the monthly pivot at 11285 on the futures.
Obviously IF crude continues down and this does break-up then I will re-assess.
Hi,
I gave a look on the 4h strategy and I would like to know which signal you are taking for exit.
Thanks again for this very great thread!
Daniel
Before we get going on entries it's been brought to my attention that many novice traders are having some problems with keeping up with all the charts that I cover and are finding it even more difficult actually following the trades.
It's all well & good when you have 3,4 or 5 screens, but as some of you are working from a single laptop I'm going to make a little suggestion that will pretty much ensure that you never miss another trade again.
Why do we miss trades? We're looking at something else.
Why were we looking at something else? Because we are looking at too much.
Why are we looking at too much? Because we don't want to miss a trade !!
The neverending circle of viciousnessnessnessnessness........ ..
Well most markets move at the same time so unless you have an unlimited account, the chances are you are going to take on one trade anyway. The problem is finding the best one.
How do you identify the best one?
You need to spend some months studying correlation and ascertain the strongest and weakest currency pair at any given moment.
This lesson is going to be a good foundation from which to begin your quest on the correlation highway and I hope it helps you make more successful trades and helps cut down on your mistakes.
Once you've mastered this you may want to look further afield, or you may wish to stick with this.
This is how it works.
Gold, as many of you know is one of the main driving forces at the moment of the FX pairs. It's a great representation of USD strength or weakness. Yes it's driven by the Chairman of the club, Crude, but if its falling heavily you probablr know WHY without looking at Crude.
So, by assessing in which direction USD pairs are likely to go, we follow Gold.
Gold goes up, USD is weak, Gold goes down, USD is strong. How am I doing?
Now a pair with USD as the prefix, or first three letters of the pair as already discussed - USDJPY, USDCHF etc move up with a strong Dollar and down with a weak Dollar, opposite to Gold.
A pair with USD as the suffix, or last 3 letters of the pair as discussed previously - GBPUSD EURUSD etc move up with a weak Dollar and down with a strong Dollar, the same as Gold.
Take a look yourself at a daily chart for EURUSD and Gold in a previous post. Now take a look at the same Gold daily chart with a USDCHF daily chart tiled horizontally. Almost indentially opposite.
So what we're aiming to do here is take one position at a time on either USDCHF or EURUSD. Easy.
The problem lies in identifying which is the best trade to take when Gold is strong. Is it EURUSD long or USDCHF short?
Introcducing ladies and gentlemenn, flown in tonight espcially, all the way from the Alps, the one and only........ EURCHF.
We can see which is strongest between the Euro and the Swssie by looking at this chart.
When its above ma's and moving up it's Euro that's the strongest. When it's below m.a's and moving down it's Swissie that's strongest.
As an example, let's assume we are looking at a weaker Dollar with Gold moving up. We know this means a weak Dollar and therefor we are looking EURUSD long OR USDCHF short
We also see the EURCHF chart down. This means the Euro is weaker than Swiss so we opt for USDCHF short as the Swiss is likely to be the better mover.
If we see the EURCHF chart moving up, we can safely say that Swiss is weaker so we'd opt for the long EURUSD.
Start by tiling 4 charts. EURCHF in the top left Gold in the bottom left.
EURUSD in the bottom right, USDCHF in the top right as in the attached picture.
Having established the direction of Gold and which is stronger or weaker of the Swiss or the Euro we are ready to look for possible plays.
It's nice and simple, and in this example. with Gold moving up and EURCHF moving down, we know that Swiss was stronger than Euro so USDCHF short was a better option than EURUSD long. It moved 200 pips from the cross of the 84 CCI, opposed to EURUSD's 160. Only 40 pips I hear you say !
Well if I could get an extra 20% or more out of a trade I most certainly wouldn't turn it down.
May this serve you well.Hi FX,
I am finding the above strategy easier to understand at the moment but tell me if i wanted to have 4 charts like the above but showing GB/US - US/JP - Gold and wanted a extra chart to show me what to choose between the 2 above would it be the GB/JP chart ??????
Thanks
Paul
Hi Daniel.
There are various different exit strategies you can use. Each depends on you personal trading philosophy.
Are you a patient guy; are you prepared to hold a trade for 2,3,4,5 weeks?
Do you want to get in and out with say 100 pips or 200 pips.
I have experimented with numerous exits for this strategy and always seem to come back with the same answers. That all have their strong and weak points.
One of my favourites is the break of the 20ema 21CCI then 50sma.
As you can see from this picture, the perfect entry was at 0.7580.
All the way down the dailt pivot was breached briefy but price remained under the 20ema with the 21CCI remaining, all bar once, below the 0.0 level.
It wasn't until these last couple of days that things have started to get a bit messy.
The CCI21 has crossed, the price has broken the 20ema, the daily pivot the 50sma and now the weekly pivot.
In a trending market like this Kiwi has been, one could just set and forget with a stop behind the weekly pivot and just come back each week, but this is not always going to be ideal. However, you will often find that whilst the daily pivot is below the weekly you will mostly be headed down.
So the stop with this method although it's a pretty safe distance away, it can often be 200+ pips away from the price action, which is a lot to give away.
I think to keep it simple you might want to just keep an eye on the 21CCI, then should that cross assess the situation. The little cross on 29.7 should not worry you as you are still nicely below the 20ema with the weekly pivot close too but then in the highlighted area lots of things are not as they should be. The daily pivot is now above the weekly pivot plus all the m.a's have been broken.
Still 500 pips for something you just put on and checked for 5 mins each day.
Not bad.