Pimpology Lives On - Intensive Care for Newbies - page 20
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Hi Guys,
Iam new here and one thing i don't understand is the MA and the ema's. Please can someone give me a clear picture when to take a trade. Possible mark the indicators on the chart and also give step by step rules as to when to enter a trade. I know some of you guys get it but guys like us struggle to understand. Can you also please give us Zak's template with all the indicators.
....Ripple,
For explanation of the MAs and EMAs, you have to go to post #8 on this thread and post #3 from the old school. For the latest Pimpology template, you have to email Zak at thefxpimp@hotmail.com.
Hi guys, I have a question regarding the bouncing off the 20 MA(5M, 15M 60M).
Say that it's a downtrend, in 5M time frame, the price then moves up close to 20 ma, does it have to cross the 20 ma, or just touch the 20 ma? Or may be just when it gets close enough to 20 ma, then bounce back down?
If it has to cross ma, does the 4 ma also have to cross the 20 ma?
....Teddy,
It's not about price bouncing of the MAs but rather the lower & faster EMAs bouncing of the higher & slower MAs. So on M5 it's the 4EMA bouncing of the M5 20EMA, 80 EMA (M15 20EMA), or the 240 EMA (H1 20EMA).
Guys, please wait a while for the chart as I have to wait for trade to run its course.
Salat
MA Bounces - part 1
OK guys, as promised here's my explanation on MA/EMA bounces as I understand it. I'm putting example of todays trade on USDCAD. I have similar trade entries on USDCHF also and a reverse entry on EURUSD. Remember Currency-Correlation.
Anyway, here's my explanation. I will start at the beginning of todays trade.
On the H4 TF, I see that the H4 20EMA is below its 50MA. This tells me that the overall trend is down. Then I zoomed in to get a closer look and see that D-R1 is providing a good price resistance. Also the green candle wick is longer than it's body (ignore the last two red candles, they weren't there yet at the London session opening). From these information alone, I could have entered sell and would have been right. However, that would NOT be a save trade entry.
Next, I changed to H1 time frame. Here I see that price is indeed going down. The candle is almost all wick with very small body (vertical blue line). Then I draw my trend line on the H1 21CCI and I see that the 21CCI high is lower than previous high whereas the price on that candle is making higher high. This tells me that there's a divergence coming. I cheated and made my first entry there because I saw that H1 5EMA bounced of its 80EMA and my fast CCI (the bottom CCI) crossed the 0.0 line. My stop loss is just above DS1 at 1.1266. A 40 pips stop loss. Again, if you're still learning, this is NOT a safe entry.
So where/when is it safe to enter? Moving to M5 chart you'll see plenty of save entry points on today's USDCAD trade. On the chart below, up to that point in time, I saw 4 safe entry points (green vertical lines) with one other possible entry point (right most green vertical line) IF the fast M5 4EMA bounces of its 60EMA (M15 20EMA). I made 20 + pips scalp entries on the first 3 of them with stop loss just above the previous green candle and with final target at D-S1 for the remaining free trade lots (Trade/Money Management). All of the safe entries had less than 30 or even less than 20 pips initial stop loss. I missed the fourth entry because I got too busy collecting these snap shots
. No problem though, writing this is more fun and less stressful than trading.
Continue to MA Bounces - part 2
Salat
Salat
nice effort but a little bit complex and for me it is easier to use Zak's genuine system without any modification ..........I use 1H chart with the help of 5m and I use daily to get the real trend and exit to where I shall offload my trade............For long time hold it is nice to use 4H chart .............
thanx.
MA Bounces - part 2
Continued from MA Bounces - part 1
OK, as the title says. It's about MA Bounces and NOT price bouncing of MAs. The next picture shows you why it is safer to trade the MA/EMA bounces rather than price bouncing of MAs/EMAs.
On Part 1, on the last picture you see that I had 5 green vertical lines saying that the fifth one is a possible safe entry IF the fast M5 4EMA bounces of its 60EMA (M15 20EMA). Well the 4EMA did not bounce at that point (I changed the vertical line to red). Even a couple of candles after that when the fast CCI (lowest CCI) crossed 0.0 line, there was NO trade because the 4EMA DID NOT BOUNCE of the M5 60EMA (M15 20EMA). However, the next bounce is a valid safe entry again with stop loss less than 30 pips.
Take notice on the safe entries, the fast CCI all crossed below 0.0 line.
I'm attaching the M15 version so you can see the difference in entry points and stop loss position on different time frame. For initial stop loss, on a sell I always use the previous green candle high + spread + 2 pips and vice versa on a buy.
Remember, what I'm writing here is only about entries using MA bounces with the fast CCI crossing the 0.0 line. There are other things you have to learn such as the MA breaks, 1-2-3, and trailing stops.
One final note. Use trend lines on your 21 CCIs also. It's a great way to find normal and hidden divergences.
Also, it's good to read or re-read the older Pimpology thread. I had to read it 3 time before it all sink in.
Well, I hope all this helps you guys. I'm off, it's way past my bed time.
Salat
Salat ,
after ZAK we are grateful to you in pimpology thread for your nice innovative posts and I am really grateful to you..........
regards man.........
Thank you OmSalat for the clear explaination, it got rid of my confusion. So the bounce of the fast MA doesn't have to cross the 20 MAs. Great, now I continue to work again.
TL.
thanks OmSalat , more example please.
Thank you...
Salat ,
after ZAK we are grateful to you in pimpology thread for your nice innovative posts and I am really grateful to you..........
regards man.........Thank you OmSalat for the clear explaination, it got rid of my confusion. So the bounce of the fast MA doesn't have to cross the 20 MAs. Great, now I continue to work again. TL.
thanks OmSalat , more example please.
Guys , thank you for your appreciation. It gives me more confident in my knowledge. After all, I am still a newbie to this method just like you. In fact, I consider myself a newbie in Forex in general. I guess I catch on quick only because the method fits my trading style.
For more samples/clarifications, actually I'm hoping the guys/girls who graduated from the old Pimpology school would help out here. You know, kind of like giving back to the community sort of thing .
Also, rather than just me posting my trades, maybe you guys can post your charts too. Like Mike for example (I see you use trend lines on your CCIs too, cool
). It does not matter if you win or lose that trade. If you win the trade, others can learn from it. If you lose the trade, others can tell you what you did wrong and help correct it and also learn not to make the same mistake. I prefer if you post charts that have trades in progress and put vertical lines on it so it's easier to study. No need to put up the charts right away, just save it to a file so you can post them at your leisure. We don't want you to mess up your trading because you were buzy posting charts 
.
Anyways, I'd like to point out the importance of MA/EMA and CCIs on this trading method and that the methods here revolves around their movements and positions. When you finally see how MA/EMA and CCIs plays important role in the methods, maybe you can change your chart settings to something like what my good friend Hans did on his chart below.
BTW, Hans is the good man who saved me from trading frustrations and introduced me to the Pimps thread. Hans, if you're reading this, A BIG THANKS YOU, oh and I still remember I owe you a plane ticket to Bali
.
Salat
Have a look at this, I traded last two days without any candles at all!
Worked out very well, keeps you concentrated at the Ma's only.
and the green fat Ma + the CCI are your one and only triggers to trade.!
Works great for me to work with a clean chart .
I just put in the faded candles all the same colour to give you some reference.
But we don't use them in our strategy, so why should we put them on??
Cu in 2009
regards hans..
Playing retracements/reversal in M1 and MM
Today I missed the big move EURUSD had at London opening. So what do I do? I stayed patient and waited to play retracements. So here's an example of playing H1 retracements using M1 as entry point. This is dangerous as it's against the trend. If you want to try it I recommend using demo first. I've added 10EMA on the chart. When the 5EMA, 10EMA, and 20EMA crossed or bounced, that's my entry point. I've got another indicator on (my latest secret weapon), but that's still in testing so I deleted them on the screen capture.
As always, I begin by checking the H4 or H1 chart. Then I move down to M15 to get a closer look. Since I saw a divergence coming on H1 84CCI (H4 21CCI), I saw a double top on both M5 and M15, I moved to M1 chart to look for my entry. My entry is at the red vertical line where my MA cross signal appeared. My stop loss on it was a bit above the double top resistance. Since I'm going against the trend, I'm not going to be greedy.
At every 20 + pips, I banked part of my lots. After I bank my first part of my lots, I moved my stop to entry price minus 5 to 10 pips. This way if I get stopped, I'll still make profit. At 40 + pips, I bank another part of my lots and move my stop to plus 5 or 10 pips. If that stop did not get hit, then I trail my stop to follow M5 60EMA or use MT4 trail stop at 65 points and I leave the room with my PC turned on (MT4 trail stop only works when MT4 is running). This is so that I don't get tempted to make foolish entry and give back the pips I earned.
Every hour or so I'll go back to make the necessary stop adjustment depending on what I see based on H1 and H4 time frame. This is the guys at FX500 called a free trade. I've already got my daily target achieved, so whatever happens to the last portion of my lot, I'll still make profit from it. My target is the next pivot support.
H1 84CCI (H4 21CCI) Divergence with price making higher high and 84CCI making lower high. A sign of H1 retracement coming?
A double top in M5 and M15 time frame. AFAIK, a double top in any time frame signals a price reversal on that particular time frame. The higher the time frame the bigger the move.
Since the double top is on M5 and M15, I'm not expecting a huge move. So I went to look for entry on M1 time frame chart. First entry at red vertical line. Not a safe entry, but I trust my indicators. The green vertical lines are safer entry. Since I'm playing H1 retracement, I bank my profits sooner and place my stops tighter.
WOW! This new indi is awsome! I can get in and out all day!
Anyway, regardless of my latest indicator, I hope this example helps to show you why I think trading is all about MAs and clear up any question regarding MA breaks, trend line break, and 1-2-3 break, and also some trade management.
Have a good day trading.
Salat
PS. I found this great software over the weekend. It's called Forex Tester. Now you can demo trade to improve you trading skills when the market is not moving, even on weekends! Try it out. You can download a free demo that works for 30 minutes. After 30 minutes, you just restart the program and start over. Make sure you download the additional currency pairs data sources too because after a few runs on the same currency pair, you pretty much memorize where it's price is going.
PPS. I'm not affiliated to the Forex Tester, so I'm not trying to sell you anything. Just hover you mouse on the link or copy paste link address to you explorer address bar and you'll see just plain old link to the site with no affiliate/referral link on it ;-)
Help
Hello guys, first of all, thanks everyone for making this thread so great for newbies like me
. Please can you send me the template and the instructions to install it to my email emanuelsmf@hotmail.com ??? thanks for the attention, a nice week to everyone.