Pimpology Lives On - Intensive Care for Newbies - page 5
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90%
I've read many times that successful trading is 10% method and 90% psychology/management.
Thanks Zak
Zak thank you, for anything and for your time to help us.
What are the dayli ema and sma how many hour do he count for a day ?
best regards
hi zak
thanks for all the info
will be studying hard
What are the daily ema and sma how many hour do they count for a day ? best regards
The daily ema and sma are moving averages, exponential & simple.
These are calculated over the last 20 or 50 periods, which in this case is days.
Since we don't use a daily chart these are calculated differently on a 60m chart.
A daily 20 would be 20 (period) x 24 (hours in a day) = 480ema
A daily 50 would be 50 (period) x 24 (hours in a day) = 1200sma
I hope this helps.
I will be back shortly with a lesson on stop-losses.
Stop-Losses
Stops are an important part of trading. They allow you to minimize your losses on occasion when a trade goes against you and help keep the majority of your bank (and marbles) intact!
Peace of mind, as discussed in the previous lesson, is paramount when trying to make money from these markets and therefore preserving your capital is key.
One major fault many make is putting stops too close and consistently taking 10-20 pip hits, which WILL eventually diminish your account and can be sould destroying to you as a trader, so it's imperative you get them right.
If you can't afford the stop then don't take the trade! It's that easy.
For me personally I like to use the 50sma as my stop level and you would do well to follow this example.
Remember how I spoke about moving averages stacked in correct order?
Well, if you are going long with the 5m entry system then your 1m 20ema should be above your 5m 20ema which should be above your 15m 20ema which, in turn, should be above the 15m 50sma.
For short term trades this is a good place to start.
On a 60m chart you could follow the same example using the 60m 50sma for short/medium term or beyond the big thick 4hr 50sma for longer-term positions.
In that order please take 2 minutes to examine the 3 snapshots demonstrating this.
In the first shot we see the long term traders approach, trailling the stop beyond the 4hr 50sma on a 60m chart.
In the second we see the medium term traders approach, trailling the stop beyond the 60m 50sma. Again on a 60m chart.
In the third we see the short-term approach, trailling the stop beyond the 15m 50sma.
This does not work at all times but it's a good place to start for beginners. Back test this until you are blue in the face. Get your stops wrong and it could cost you your pants!!
question...
i was reading your posts on this and it looks great! i looked at the school of pimpology and you had mentioned that if we wanted a breakdown of the strategy to email you. im new at this forum and dont really know how to navigate it very well so i was wondering if you could email it to me at deadpoet1979@gmail.com??? that would be great!! looking forward to what you have next!
josh
Hey pimp!!
Hi there!
This is my first post in here, and I've chosen this thread to do it...
I want to thank you for every word in this and your other threads, you're great.
But i wanted to ask you a thing... haven't you skip the 4th lesson about the currencies to watch? in the index you've made at the beginning of this thread you had written something about it.
Anyway, thanks for everythink.
See yah!
But i wanted to ask you a thing... haven't you skip the 4th lesson about the currencies to watch? in the index you've made at the beginning of this thread you had written something about it.
Hi,
Welcome to the thread.
I covered the pairs to watch in the correlation lesson instead.
You only need to trade 5 or 6 pairs to make this work.
GBPUSD EURUSD USDJPY GBPJPY EURJPY (EURGBP optional)
GBPUSD & EURUSD you trade alone, as you would USDJPY.
GBPJPY & EURJPY you trade whilst keeping an eye on USDJPY & GBPUSD (for GBPJPY) and whilst keeping an eye on USDJPY & EURUSD (for EURJPY)
EURGBP you can trade whilst keeping an eye on GBPUSD & EURUSD.
I hope this helps
Types of trade we look at will be up next. this is where things get exciting. Just give me an hour to get it typed up. I will need to add approximately 10 snapshots too, so get your brains in gear. We are almost ready!!
I look at a 60m chart for overall direction and a 5m chart for entry for breakouts, reversals, box plays and continuations.
All the moving averages on the charts are 20's and 50's.
20 exponential and 50 simple from different timeframes.
On the 60m chart I have 20/50 from 60m, from 4hrly and from daily.
On the 5m chart I have 20/50 from 15m, 60m and 4hr
I also have a false breakout m.a which runs through the candles and works well most of the time.
On the 60m it's a 5ema and on 5m it's a 4ema.
On the 60m chart this represents the 15m 20ema and on the 5m it represents the 1m 20ema.
We use a 20 and 50 moving average and wait for crossovers and squeezes to guage the possible next direction of a move.
On a 60m chart we also use a 5ema which is our 15m 20ema and when all 3 are stacked in the correct way and in close proximity this indicates a good move could be round the corner.
I wanted to draw all the MAs as mentioned by you in the above quoted two posts...Just confirming whether following are correct
For 60 m chart
5 EMA
20 EMA
80 EMA (4hr 20 ema)
480 EMA(daily 20 ema)
50 SMA
200 SMA(4 hr 50 sma)
1200 SMA(daily 50 sma)
for 5 m chart
4 EMA
20 EMA
60 EMA(15 m 20 ema)
240 EMA(60 m 20 ema)
960 EMA(4 hr 20 ema)
50 SMA
150 SMA (15 m 50 sma)
600 SMA (60 m 50 sma)
2400 SMA (4 hr 50 sma)
Kindly let me know whether this is correct or not so that I can draw the relevant MAs.
Thanks