Kolachi Method of Trading - page 7
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Excellent method Kolachi! This explains why I was always losing with the moving average cross. It always seems whenever I enter a trade the market immediatly goes the other way. I did not understand your method before, but now its beginning to make sense. It seems to me that this system is for day traders that can sit at their computer all day. I work from 9am to 5pm EST. I would only have 20 mins. in the morning to check for price setups before I go to work. I would of course be able to check the night before if that would be any good. Do you have a method that works on the 4 hour and daily charts? My heart can't take those wild hourly price swings, especially when I'm in a trade during the day and can't do nothing about it (except for stops). Thanks for the help. I commend you for your dedication in helping poor Forex losers like myself!
Hi,
Thanks for interest in KM.
Infact KM works equally well from Minute chart to Monthly chart.I personally have used KM on one minute chart and daily chart.
You can easily use KM on daily chart as I often use daily for my position trades.
If you need any help, I am always here to guide you,
regards,
kolachi
Thanks,
I am a Kolachi Trader now
You are always welcome to ask me for anyhelp in trading.
kolachi
Thanks Kolachi!
Just so that I am clear. I can follow your original method on all time frames with no changes to moving averages and method? If that is correct then you really are a blessing to the forex beginner.
Thanks Kolachi!Just so that I am clear. I can follow your original method on all time frames with no changes to moving averages and method? If that is correct then you really are a blessing to the forex beginner.
Yes Kolachi Method is same for all time frames with same wma and emas.
kolachi
Further questions.1. If I am trading on the 4 hour, should I only initiate entries in the daily trend direction or do I trade both ways?2. What is the best pair for trading during the hours of 6pm to 12pm EST using this method?Thanks again!
If you are trading on 4H then you need to follow daily trend.In Kolachi method , we always look for trend in one or two time frames higher than we are trading.
Usually yen pairs are movers in asian session.So you can use it on USD/JPY if you like it.
Regarding direction of trading, it depends on styule of trader.
I personally play bidirectional but the Kolachi Learneres have given me feed back that they still feel it premature to trader bidirectional so they play unidirectional.
No doubt playing bothways is rewarding and dangerous.
kolachi
Daily Median Lines:I always consult daily and weekly chart to have a sense of direction.
Kolachi Method can be used on any time frame.I do not trade on daily because we lose too many swings which can give us precious pips.
If you want to use median lines on daily, the use following:
305,493.5,798.5.
I am posting a daily chart with thes median lines and you can see how currency repects them.
kolachi
Euro Daily Medain Lines
Entry and Exits:
Kolachi Method and Kolachi Method 2 are complete methods in every respect.Just depends on how a trader takes their spirit.
Kolachi Methods tell us that change of slope is best time to exit.
It depends on you where you want to be out of market depending on your risk,fear,greed and MM.
If you follow strictly Kolachi Methods then you can start on one side of axis and wait till it goes on other side of axis and you can bag more than 300+ pips.
Yes now we can talk about best points to take profit.It all depends on charts of the moment because methods tells you principles but not specific situations.
I give example that law tells to a cop that if anyone violates traffic law challan him but law never knows that when and where will some one break the law?
The higher ema are usuall good points to lock profit.As per Kolachi Method you can and have the capability to go on other side of the axis if you just keep locking the profit.Once you lock one pip profit on a trade that trade is a bonus.Now your margin is free to place another trade.But it is all MM and a variable of trader psychology.
Weekly Analysis:
Daily Chart:
Looking at the weekly we can see that there is enough scope to move up.
The daily chart of euro shows that the cross between ema21 and ema55 is not yet mature.Which gives us scope for another push up to touch the previous highs.The obvious target is 1.2880 but may go up slightly more.
3H Chart:
The 3H chart is almost equivalent of 4H chart of Metatrader.
looking at the chart we see that strong repulsion of wma5 by ema100 and ema21 by ema55 has caused the bias up.There is obvious chance of touching 1.2880 including test of 2900 handle but no more scope for a while.
Conculsion:
The strategy is to go long with tight stops as we are at critical juncture specially when price crosses 1.2850.Any time we can see reversal down.
kolachi
Hi Kolachi,
I find your system really interesting and would be giving some more time to learning it soon..
All the best Kolachi Traders
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