[pardy]

Originally Posted by Dan007

Hi Guys

This market is scaring me...

Here is a quick explanation of my 5 min chart.

960 my 4 hour 20ma
600 my 60min 50ma
240 my 60min 20ma
60 my 15min 20ma
20 my 5min 20
CCI 63
CCI 252
CCI 4

My 60min chart...

1200 my Day 50
480 my Day 20
200 my 4HR 50
80 my 4HR 20
50 my 60min 50
20 my 60min 20
CCI 84
CCI 5

This way i can basically look at two charts and get a strong idea of trends and entry points. The 60min shows me the trend and the 5min gets me in early enough for the move. I dont rely too much on the 5min but i make most of my trading decisions on the 60min with the 5 only as an entry. The 60min has been my king chart for years!!!

I look for crossovers on the CCI's and the MA's for support and resistance. As mentioned this has been developed over the years from my standard templates but i have worked with a close friend to get to this template and we do very well from it.

The 252 is key as well and i rarely trade against him unless i really fancy it.

Ok must run... Got a friend flying in from out of town.

D

This is what I'm struggling with. On the 60 min, e.g. CCI 84 could be at say -100. Would u only look for shorts? What if that cci has been coming up from -150? and will maybe continue that way??
So, how do you actually determine the trend?

Or do you strictly trade only crossovers - I suppose that there could be times in the Londo open when these crossovers do not happen!

As you know, unlike some more fortunate people, I haven't had the privilege of your coaching. What I think would be very very helpful would be to lay down the summary of your logic process in reading and acting upon the charts.

Breaking it down into steps, something like, e.g. , !. Look at the 60 min chart. Check the position of the 84 cci. Is it going up/ down / level. This means that trend for the day is............
2. Now go to the 5 min chart. When x happens, and ma's are in following order, take trade etc etc.

I know this may sound like spoonfeeding, but really it isn't. I have been in the boiler room since inception, and still can't figure out how the really successful traders are taking their trades. A lot of trades seem to be taken when ma's are not all stacked in the right order. Hence, my request to try and understand the logic and sequence that you follow.

Also, could you shed some light on your exit strategy, please. Reason is I often tend to close trades too early ( this is psychological I know, see a trade in positive, bank the profit) but in your experience, is there anything I should be looking for that will allow me to set decent tp's.

Please help!!!

Kind regards

Pardy

Do hope all of this makes sense.

[rockdrive]

The Authorities in Spain have been inundated with sitings of a purple phenomena. People are reporting an extrordinary colourful man in garish costume; these sitings were originally reported in the South of the country but there has been a surge in calls from all along the Costa and as far South as Gibraltar.

So far The Purple One, as police have named him, has caused no damage, but there was concern over the potential threat to bar takings, as people keen to see this phenomena take to the streets seekings him out.

One eye witness said "it was amazing, like a rainbow, and suddenly it was raining pips, and then he was gone, leaving an empty bottle of San Miguel". The police are still trying to determine the importance of the 'pips' to their inquiry, but can confirm significant quantities of local beer seem to go missing in areas where The Purple One has been sited.

Following the 'rain of pips' locals are calling for protection and some are now carrying special pip collectors to harvest them. With the pip feast, there have been other sitings of a large Gorilla, and a smaller Monkey who seem to accompany the Purple One, an entourage of otherworldly preportions. One thing is for sure, they have great legal representation and have managed to keep their movements hidden from view; where they will appear next is a mystery only Scooby Doo could solve.

The local mayor has asked for special powers; the purple one is our saviour and he is keen for the pip feast to become a regular festival; attracting so called 'pipster's' from around the world.

One thing is for sure, beer and burger sales are up. For the Purple One is now in his speedos sunbathing.........so are thongs!

[pardy]

Very good, still laughing!!

Pardy

[Dan007]

Originally Posted by rockdrive

The Authorities in Spain have been inundated with sitings of a purple phenomena. People are reporting an extrordinary colourful man in garish costume; these sitings were originally reported in the South of the country but there has been a surge in calls from all along the Costa and as far South as Gibraltar.

So far The Purple One, as police have named him, has caused no damage, but there was concern over the potential threat to bar takings, as people keen to see this phenomena take to the streets seekings him out.

One eye witness said "it was amazing, like a rainbow, and suddenly it was raining pips, and then he was gone, leaving an empty bottle of San Miguel". The police are still trying to determine the importance of the 'pips' to their inquiry, but can confirm significant quantities of local beer seem to go missing in areas where The Purple One has been sited.

Following the 'rain of pips' locals are calling for protection and some are now carrying special pip collectors to harvest them. With the pip feast, there have been other sitings of a large Gorilla, and a smaller Monkey who seem to accompany the Purple One, an entourage of otherworldly preportions. One thing is for sure, they have great legal representation and have managed to keep their movements hidden from view; where they will appear next is a mystery only Scooby Doo could solve.

The local mayor has asked for special powers; the purple one is our saviour and he is keen for the pip feast to become a regular festival; attracting so called 'pipster's' from around the world.

One thing is for sure, beer and burger sales are up. For the Purple One is now in his speedos sunbathing.........so are thongs!

He is a dangerous man!!! Rockdrive, please rescue me!!

D

[Dan007]

Morning

Got asked about my method, stop losses etc and why i use a simple chart system, so thought i would post it here as well...

.................................................. .................................................. ....................
Morning

Like any strategy, it is never perfect and yes it can take you into trades when you shouldn't get in and likewise can keep u out when you could have made a few pips. Thats trading as we know it unfortunately. Everyday is different and with experience you get a feel for a market and are more aware of momentum and volatility in the market place at a particular time.

The longer term CCI will give me a great insight into where the trend is heading and generally i will try and trade with that. However there are exceptions to every rule in trading, depending on S&R levels, momentum, correlation, trajectory of ma's, figure's, time of day etc etc and that can only come with experience.

Yes price action is very important in trading. For example novice's will trade a 123 setup, with no momentum and cant understand why it hasn't bounced. Thats why it is important to get a feel for what the other markets are doing eg CRUDE and GOLD.

I rarely have a 40-60 pips stop loss on my shorter term book but again this depends on how much i like a particular trade and where the S&R levels are. I don't believe in having a standard 20pt or 30 pt stop on all trades, as every trade is different and i make a judgement call there and then. What do i expect from the trade? Is it with the 4HR trend? What is the rest of the market doing? How is volatility for that day? Am i going to hedge myself in? I am sorry for not being black and white but thats how i see it and have done for years. Successful trading comes with experience and the more you learn and put into practice the better you become.

Gold and Crude are different beasts and i love the Crude movement in the london open. Less volatile but when its found direction you can def pick up a few pips...Again stop losses vary here depending on the ma's and where i get in and what expectation i had for that particular move. Crude is his own man at the moment and is running the show so you do need to be very vigilant with stops. For the longer term charts, the higher the stop losses, so if i worked purely off my 60min and 4Hrly chart, i might decide to have a 100 pt stop for example. If i was working off my 5min, with a tight bounce off my 20ma, i might only need a 25 pt stop.

Lastly you asked why i use a very simple indicator based method. Quite simply for me it works and i make a good amount of pips from it. Its simple, easy to understand and makes me money.

Ok well hope that explains a little...We r all different and as long as we all make pips nothing else matters.

Keep it simple

D

[Dan007]

Hi all

I am knackered today...Couldn't sleep last night so got up and studied longer term charts.

Won't be in on monday as i have a meeting for most of the day.

Will hopefully get online at some stage.

Please keep blogging and keeping this thread going.

Have fun.

D

[rollingstone]

Hi All

I read this over the weekend and thought it might be of interest to some of you. It's about the cycle of success and failure which is relevant to the process of learning to trade.

Death Valley and the Serpent's Tooth

As a youngster do you remember learning a particular skill or ability - one such as learning to swim or ride a bike? Do you remember the pain and frustration that you went through as you struggled to master the basics and then the seemingly endless effort that you had to make to perfect your art? Tough wasn't it? Do you also remember the times when you wanted to give up? The times when the effort seemed pointless and everything that you did went wrong?

However finally, after a lot of perseverance and self-discipline quite suddenly everything that you learnt fell into place. You reached a point when you no longer constantly fell off your bike or when you finally managed to complete a whole length of the swimming pool. That single glorious day was when all of the hard work and effort suddenly seemed to be worthwhile, when the struggle of the early stages were forgotten and you sailed into a blissful land in which all of your actions were effortless and successful.


The Serpent's Tooth Cycle

If you examine each of the various skills that you have learnt throughout life you will discover that the same basic pattern of growth/decay/growth is woven into the development of each one. This cycle is a well accepted theory and can been seen in the growth patterns of many businesses, during the development of any skill, through the life cycle of plants and is observable in every key element to human experience.

Stage 1 - The Rise
At first you start off your chosen task with great enthusiasm. This energy quickly propels you into making rapid progress. Sometimes referred to as beginners luck, in this part of the cycle everything that you do is a success and you learn at a faster pace than at any other time.

Stage 2 - The Peak
However this rapid rise in growth does not continue onwards forever and you reach a zenith in performance. Most of us are only aware of their highest state of achievement after it has been reached.

Stage 3 - The Turn
Then suddenly just as you think you know it all along comes a disaster. You fall from your bike, you fail your exam, you have a run of losing trades etc. Something happens to suddenly bring to your attention the fact that you do not know it all. No matter what you try to do all you experience is continued frustration, failure and defeat.

Stage 4 - The Fall
The rate of decline then appears to accelerate and your enthusiasm for the chosen task falls to its lowest point. It is at this stage that 99% of people give up. However this decline in fortune does have its limit. Suddenly things change and you start to feel a little more positive about things.

Stage 5 - The Growth Gradient
From the turn you slowly begin to piece things back together again. Bit by bit you develop a new aptitude for your chosen task. This then continues unabated until you finally begin to realise that you are starting to surpass your earlier achievement level.


To the Rockdrives of our community who are at Stage 5, congratulations dudes, to the rest of us somewhere in between - keep going, we'll all get there with Dan and Pimp's help and plenty of determination.

[Dan007]

Morning

Have a good day all...

See you this afternoon.

Let me know how u all get on.

D

[rockdrive]

Originally Posted by Dan007

Morning

Have a good day all...

See you this afternoon.

Let me know how u all get on.

D

Morning Mr Dan,

The only way to reign in The Purple One is to become him. I think you need a change of style and to pimp yourself. Enjoy your meetings; regular neurofen and water will help!

Have a great day.

Pimping Rockie

[rockdrive]

Mr Dan and Le Pimp,

A nice couple to start off the week. Grabbed cable on the break at 1.8352 (s/l 1.8336) to 1.8450 (+96). Took a cheeky trade on usd/chf 1.0960 (s/l 1.0983) short to 1.0933 for 27 pips and closed the morning with an elevenses gold bar breaking 876 to 880 (s/l 872) for 38 pips.

Some of the guys also traded e/u on the break and took some lovely pips. So a nice and comfortable start to the week. Should be more to come.

Took a look at indicies but not too comfortable with where the Dow was going so decided to leave alone today.

The weather is fantastic in the UK - the only downside is that my mud pool has dried up and I can't take an afternoon swim!

Mudcaked Rockie