Review of Strategic Tips on Milking the Major Currency Pairs

[forexgreenland]

1.9539-1.9463=0.0076
1.9528+0.0076=1.9604

You could see that the BUY WINDOW triggered our entry point and gave us the signal to go long. 76 pips,$76 minilots,$760 standard lots.

 

[forexgreenland]

[06:20:29] Stalion : so, we could put a SELL STOP at 1.9685, FIRST TARGET POINT at 1.9655,with a 35 pip stop loss

[06:22:16] Stalion : on GBPUSD

 

[forexgreenland]

30% Buy Windows

Helloo fellow traders,
Yesterday was a classic example of the battle between the fundamentalists and technical analysts.The UK retail sales and Business Investment report came out negative, so it was expected that the GBPUSD would go down.

But that was not the case, for we had a quick reversal at the 30% buy window which shot up during newstime, fueled by dollar weakness due to high oil price.

You see, using the 60 percent retracement for buy and sell windows is an excellent technique for most markets. However, when the trend in the market is extremely strong, the market will usually not retrace even close to the 60 percent level.

Instead, the market will begin to make small and quick corrections that usually last for a short period of time.

The stronger the market, the shorter the correction time period. These strongly trending markets will normally see the market retrace to around 30 percent of the original move. This level still offers some very good reversal signals.
So, lets do some illustrations, shall we;
The total price range of the original move of GBPUSD from this current A to B is 1.9758-1.9612=0.0146
Now multiply the range by 30% BUY WINDOW
0.0146*0.3 (30% buy window)=0.00438
1.9758-0.00438=1.9723( 30% buy window)

So, at 1.9723, we should have been looking for a reversal to the upward side, due to an extremely prior upward trend, then calculate our price projection from there. So, by applying the 30% buy window concept, most traders would have made money on yesterday's move.

Remember, nothing is 100% perfect in the markets,so we all learn continously to near perfection. That, my friends, is one of the secrets of top trading.

 

[forexgreenland]

Market Flow

Helloo Fellow Traders,
Hope you'all enjoying the weekend. Someone asked me whether the CHART PATTERN RECOGNITION and PRICE PROJECTION SYSTEM can be reduced to a robot or expert advisor where trades can be taken mechanically with little or no input from the trader. Well, I replied that this system is not MECHANICAL based, but DISCRETIONARY based. A discretionary based system is much more flexible in the dynamic markets.
Some seasoned traders might look at the markets as a battle between bulls and bears, some might liken it to plucking money apples from a tree,some might see it as a wild beast out of their control, while some see it as fishing in the river with good nets. The latter is more of my personal mental picture of the markets,where you check the tides and d waves(trends and retracements) before throwing your nets.

Dr Van Tharp,top market pyschology aptly describes it in his article- Flow of the Markets;


Imagine yourself flowing down a river, only you don't know that you are. You do, however, notice that when you move in one direction, with the flow of the river, you move rapidly. When you move in another direction, against the river, you move slowly or not at all. In fact, when you go in that direction, you seem to put out a lot more effort just to stay in place. Your life becomes a struggle. It just seems to push you in another direction. Feeling miserable, you fight against it. But it doesn't help. You still seem to move only in one direction—with the flow of the river.

Most people prefer to struggle against the river. They try everything they can think of to go upstream. All solutions like this—going against the flow—have the same result: frustration. If you were in the river, what could you do to make your life easier? One solution would be to get out of the river. But that would be giving up. There is only one easy solution—to acknowledge or accept that the problem has nothing to do with the river. The river just is. And it moves downstream and nothing you do can change that. When you realize that the problem stems from you, then the solution becomes obvious - just relax and flow with the river.

Buy High, Sell Low?
One of the oldest adages in market psychology is "Don't be afraid to buy high and sell low." Let's analyze what that means. If the market price is high, then the market is moving up. Those who are afraid to buy because the market is too high are fighting the flow of the river. It is possible the river may change direction, but you cannot predict if it will by determining how long it has been flowing in a particular direction. It may continue in the same direction for an unspecified length of time. Then again, if the market price is down, it also indicates the direction of the flow of the river. Those who are afraid to sell, once again, are fighting the flow.

Whether you go with the flow of the market or struggle against it, the market will continue to flow, taking you with it one way or another.

Why do traders resist the flow of the markets? They do so because they play psychological games with the market. The most common game involves not being willing to give up what you perceive to be control, the need to be right, although you have no control over the market flow.

When you are struggling with the market, the struggle becomes all consuming. You don't realize that you are struggling with the market. Instead, you find yourself always looking for some solution to overcome the struggle. The struggle obscures the obvious solution: Letting go.

For example, suppose you have a tendency to be in a perpetual market bear, always expecting the market to go down. For you, every little turn in the market is evidence that the market is turning. As a result, you always go short and consequently, take a beating. You repeat the process, over and over, until the market actually turns down. With each transaction the struggle against the flow of the market intensifies for you.

Even worse is the trader who refuses to accept the inevitability of eventual loss. The market moves against each position the trader takes, but he refuses to go with the flow and refuses to accept the loss, no matter how small. It is an affront to the trader's ego. As a result, he refuses to accept it and the loss becomes larger. The bigger loss is even harder to take and the trader again refuses to accept it. The struggle continues until the loss becomes so overwhelmingly large that the trader has no choice but to take the loss.

The solution to the problem of resisting market flow is to realize that the problem has nothing to do with the market. The problem stems from you, the trader. The market is not going against you personally. The market is simply moving. Whether you go with the flow of the market or struggle against it, the market will continue to flow, taking you with it one way or another. Market flow is bigger than any individual trader. The question is whether you realize how you are creating your struggle against the market. When you push against the market, the market seems to push back. But the market is not the problem.

The trader's struggle with the market is the problem.

 

[forexgreenland]

[11:34:20] Stalion : BUY STOP ON GBPUSD @ 1.9556,STOP LOSS @ 1.9520,TARGET POINT @1.9645

 

[Stuart14]

Foxgreenland, I take it this hasn't been hit yet?

 

[forexgreenland]

89 pips,$89 minilot,$890 standard lot on GBPUSD

[11:34:20] Stalion : BUY STOP ON GBPUSD @ 1.9556,STOP LOSS @ 1.9520,TARGET POINT @1.9645

Hi folks, been a while since I've been on and its all good. Today, we had a buy signal on the GBPUSD which netted us approximately 89 pips,thats $89 on a minilot and $890 on a standard lot in less than 3 hours on a Wednesday morning. Hope you'all grabbed those pips,fellas.

Foxgreenland, I take it this hasn't been hit yet?

Hi,Stuart,in intraday trading, timing is of the utmost importance.It has already been hit in the chatroom as it was posted onto other forums, including this one. Sorry though, but due to time constraints in writing it out,it might not be on-the-spot.But if perchance you see it early enough, you can use it as long as your risk to reward ratio is favourable to the trade.
In this instance, the risk to reward ratio is approximately 2:1...that is, you are risking 36 pips to make 89 pips.
Feel free to ask any questions or make comments.

 

[forexgreenland]

[09:30:58] Stalion : BUY GBPUSD @1.9478, STOP LOSS @ 1.9443, IST TARGET POINT @ 1.9520...2ND TARGET POINT @ 1.9548

 

[Stuart14]

Thanks foreexgreenland, this looks much more acheivable than the last. Will watch closely.

 

[masif1]

Hi forexgreenland,

did you use the 60 percent retracement for the above as well?

 

[forexgreenland]

1.9668-1.9428=0.024
0.3 * 0.024=0.0072
1.9428+0.0072=1.9500(sell window)

Hi forexgreenland,

did you use the 60 percent retracement for the above as well?

Helloo masif,well I was tempted to use the 60% sell window or retracement as you called it but looking at price action going on that friday, looked to me that the 30% sell window would have been much more realistic, even addind 20 pips more to it. Maybe traders were overly cautious of the notorious Black Friday the 13th or whatever mumbo jumbo its called. Even at that, we noticed price depressed down below the low(B) at London news session, tearing off stops before going upwards to the 30% sell window of 1.9500.

Though it eventually hit the 1st target point of 1.9520 this Monday, it was just too close for comfort. Too bad we ran into the begining of a 1-2-3 bottom before price took off.So we should be looking for the 2nd target to be hit if you are already on that pair.

I will like to know how you do choose your points in your diagrams. that is your point A and B. can i just choose it randomly

Well, onwukarisa,I must say that the random walk theory does not usually come into play in the markets neither are there randomness in price action. The points(A and B) that you see on the chart diagram is taken from the highest high to the lowest low of price movement.from there, you can apply your buy and sell windows.
Please understand the buy and sell are synonymous to the fibonacci retracement levels which tend to work amazingly if you know how to use it dynamically as price moves along. Due to the fact that different traders have different levels of skills and know how, that is why it is simplified as BUY and SELL windows

 

[forexgreenland]

Hi folks, what happened yesterday Monday...well, price on the GBPUSD went past the 30% window of 1.9500 and rocketed up to the 60% window of 1.9644 which yielded at least 144 pips on the table. If our sell window projection is correct, we should see price retracing back to 1.9555 level. News on the UK CPI would make a significant impact on fueling that downward drive, or if greater than expectations,continuing its previous upward trend. European time would tell us what to expect.So we keep our fingers crossed, shall we..

1.9800-1.9409=0.0391
0.6*0.0391=0.02346
1.9409+0.02346=1.9644(60% sell window).

 

[Stuart14]

Forexgreenland, 2 great calls in a row. Nice work.

 

[forexgreenland]

89 pips,$89 minilot,$890 standard lot on GBPUSD

Hi folks, what happened yesterday Monday...well, price on the GBPUSD went past the 30% window of 1.9500 and rocketed up to the 60% window of 1.9644 which yielded at least 144 pips on the table. If our sell window projection is correct, we should see price retracing back to 1.9555 level.

1.9800-1.9409=0.0391
0.6*0.0391=0.02346
1.9409+0.02346=1.9644(60% sell window).

89 pips,$89 minilot,$890 standard lots made for teusday.

Forexgreenland, 2 great calls in a row. Nice work.

Thanx,Stuart... though nothing is 100% perfect in trading..You win some ..you lose some...but as long as you GET the reasoning behind price movements, you make your money with your honest forex broker.
At forexgreenland..we make nothing but the hits...
Nothing but the hits...
Nothing but the m-u-t-h-a-f-r-e-a-k-i-n-g h-i-t-s ..

 

[Stuart14]

LOL!! As long as you win more than you lose you're doing O.K!!

 

[masif1]

forexgreenland, this system/method is very interesting indeed, is there anywhere or can you recommend how I may learn it?

Just to understand the above diagrams correctly, did you go long on Mon 16th make 144pips, then short today to make 89pips?

Forgive me if i have got this all wrong :$

 

[KB_BigBiker]

Hello to all,

forexgreenland, I’m newbie here and the system/method that are posted here are very interesting, How can I learn this method to under stand me more? If give a help would be a great for me.

 

[forexgreenland]

So what happened early dis morning?
1.9786-1.9719=0.0067
1.9743-0.0067=1.9676

forexgreenland, this system/method is very interesting indeed, is there anywhere or can you recommend how I may learn it?

Just to understand the above diagrams correctly, did you go long on Mon 16th make 144pips, then short today to make 89pips?

Forgive me if i have got this all wrong :$

yes, jus like a Beethoven cantata,,,flowing like a river.

Hello to all,

forexgreenland, I’m newbie here and the system/method that are posted here are very interesting, How can I learn this method to under stand me more? If give a help would be a great for me.

Contact me on my email and we can see how we could arrange a one on one coaching..Its not quite advisable to give out all ur trading edge in which you make money in an open forum.Not jus the crowds, but also the dealing desks brokers could fade it out and render it ineffective.My pal,ozfx got his system ''reincarnated'' into a Dr Frankenstein system,so am not looking to follow dat route.
Thanx.

 

[Stuart14]

"My pal,ozfx got his system ''reincarnated'' into a Dr Frankenstein system,so am not looking to follow dat route.
Thanx."

What does that mean?

 

[Drummer Boy]

Great Thread. V. Interesting

So what happened early dis morning?
1.9786-1.9719=0.0067
1.9743-0.0067=1.9676

yes, jus like a Beethoven cantata,,,flowing like a river.




Contact me on my email and we can see how we could arrange a one on one coaching..Its not quite advisable to give out all ur trading edge in which you make money in an open forum.Not jus the crowds, but also the dealing desks brokers could fade it out and render it ineffective.My pal,ozfx got his system ''reincarnated'' into a Dr Frankenstein system,so am not looking to follow dat route.
Thanx.

Thanks Forexgreenland.

Scanning this thread for the first time. But too brain weary to start concentrating on the TA for now. Clearly some really great stuff about trading psychology and one's ego and mindset.

Wish I'd spent more time looking at this before I started 3 years ago. Would have saved me loads-a-dosh and more importantly - TIME.

Some real gems here and I concur 100%. Looking forward to studying your charts and analysis. Much to be learned.

One thing that I could use some help with is your interesting remarks about big dogs looking at your trading approach and hit rate and then countering your positions in day trading.... Does this this really happen? (Not intended to sound like a sarcy smart arsed question)

Saw an article the other day about the absolutely massive increase in retail trading over recent months/years. It suggested that the big guys are starting to become more than 'aware' of us retail-ees. Any chance that any time soon we little fish might start eating the big dogs? After all, we are no less intelligent than the pros. Just we are playing against an historically stacked deck. Also unlike them, we are not playing with OPM's. We stand to loose our own cash so there is a powerful imperative for us to be better and better. In my opinion threads like yours and others on this site makes a serious contribution towards this.

Power to the little fish and please keep up this great thread.

DB