The Chimp`s "Forex Trades"

[walterw]

Sundowner`s chart got me inspired... so I feel making a video could help to start showing some real live situations here...

I hope this starts to make sense... I dont know if I am being enough clear... please dont hesitate to make any questions, I am also learning together with you guys... cheers Walter.

[walterw]

This is a video on a Lazy Centripetal trade I did this evening with Sundowner`s EUR/JPY... nice pair Sun ¡¡...

On this video you can see what hints we get thru a refresh trend (yellow between green and blue lines ) sugesting a potencial refresh centripetal action back to the axis... cheers Walter.

[sundowner]

Cheers Walter

Thank you for the two new videos. The more of these you post, the clearer trading opportunities become. Great team, you and Pyenner.

I am wondering about the horizon line (axis). PYenner mentioned in a previous post, it was horizontal for a long time. I found the same thing on the EUR/JPY. What are your thoughts about how this affects trading?

Regards

[walterw]

About the blue line HE... I am actually using it as an axis... (only that).. not measuring any "laddering effect" on the blue one, as it is too heavy of a line to measure any direction actually...

Now the green line laddering, yes its very good for confirmations of directions...

I start too look more seriously this pair Eur/Jpy... thanks Sun.. cheers Walter.

[walterw]

As Eur/Jpy is more volatile it should probably need to adjust some inputs on the 1 min lines.... tell you later... cheers Walter.

[PYenner]

	Quote:	unicorn
	Bruce; Will you please explain the concept of the oscillator? Which quantities it involves and the physical meaning of its construction?

Hi Unicorn
Umm it could take a while to explain all that goes on in an ADX which is where it comes from. Now the ADX is a momentum indicator but when you use smoothing it affectively adds in some of the price and the momentum signal gets to look more and more like the price action.
In some ways that can be good, easy to recognize, but in other ways it is confusing if you are wanting to be able to distinquish momentum from price.

Without smoothing, a momentum indicator will tell you if the last tick or ticks went up or down, by crossing the zero line, green or red with every tick and mostly it just alternates either side of zero and only spikes or ladders briefly then drops straight back to zero. So an honest momentum oscillator only tells you the speed of the price movement and that is only a small part of what a trader wants to know. A trader mostly wants to know price movement because his P/L is what its all about.

When you use smoothing, you get that price intrusion whether you want it or not, mostly it is ok but it can make for contradictions if you start asking why did it do that, what is it telling me?

If a momentum oscillator has little smoothing, you would start and end a trade on a zero crossing, trade the "hump" becuse it is telling you the speed and direction of movement. If there is more smoothing, it starts to resemble price and then you sell the peak and buy the dip. Different timing, different thinking.

Both from price peaks and from momentum peaks and from comparing differences between the two you can get overbought or lazy signals. Like everything else, these quarantee nothing but it still helps to forewarn you about which way the price might switch in the near future. Also the amount of smoothing can alter the relative heights of two peaks, it will only ever offer a warning, not a hard rule.

The ADX swings in only one direction, zero to one, some changes had to be made to get it to swing red and green. Removing the final stage (of three) made this possible but also made it "wild". The input is very sensitive and it had been the output stage that helped to reduce sensitivity to small changes under certain circumstances like pullback or reversal. The Bemac vma exploited that circumstantial lack of sensitivity in making HE's.
Both he and Walter were sharp in seeing its benefit.

Without that third stage, the signal swings like a reed in the breeze.
It is still an oridinary momenum signal.
It is still an ADX signal, but its "sensitivity curve" differs from ADX, its a real swinger.

One difficulty I have with mixing price with momentum is say on an up ladder, when there is pullback a momentum signal should immediately swing into red.
With price mixed in, you only see it move down some toward the red and you ask, how seriously should I take that?
Then when it does pullback across zero, what does that mean, is that total disaster or will it recover? Where pullback is concerned, I dont yet know how to read it, what is safe etc. Chart time is the only way to find an answer.

As Walter says, it is best used for confirmation, not as the only tool.
It has given me grief when the blue line is flat and its good swings have me trading a price that goes nowhere, I can be a bit thick at times, single minded. You only get to trade price swings, big fat momentum swings cant be traded sadly.

This might go on forever.

Re Cog icon
Yes I see the cog and I also take it to mean "working" or "thinking".
I see no point in having negative options to begin with.
The only time I tinkered with those icons I ended up giving myself a thumbs up and felt like a twit afterwards so I try to avoid those ones now.

Regards to all
Bruce

[walterw]

If we had to over-simplify the "Setuping" vision on the 5 min chart we could reduce it to this :



here you can see the relationship between the three lines...

the yellow line doesnt need to be perfectly contained by the green one, there can be some error margin there... like this :



Let me show some examples on next post...

[walterw]

That simplification contains all the concetps of :

NET vs REFRESH Trend..

Centrifugal vs Centripetal Action...

All setups : Icon, Continuation, M`s (Lazy, Equal and False Break), Refresh... at the end respond to that morfology...


So lets say you understood how all the concepts work together but you want a simple graph on your mind that will resume all does concepts... well the graph on the previous post would do it...


Let me attach here some examples... they look very nice on Eur/Jpy...

The interpretation of my drawings is :

UP Arrow = Long
Down Arrow = Short

Green Arrow = Centrifugal Setup
Red Arrow = Centripetal Setup

All this chart show this simplified "setupings" on 5 min... cheers Walter.

[walterw]

Ok... now that you understand all the concepts that are behind the chimp`s setups... he will make you the favor of showing you how he simplifies the reading of his setups... this is a way to relax and enjoy the ride... no need to be permanently overthinking the concepts behind the setups, just a simple view of the setups its good enough to be looking for the right trades...

Trading MUST be an enjoyable experience.. and simplification is one way to get there... cheers The Chimp.

[cattus]

Hi Walter and hi all there. Great club here!

Thanks a lot, Walter, great videos. I need to review the videos of today, but I know they are great videos.

I have some questions for you:

What does Refresh mean for you in spanish? Refrescar, Retomar, Reanudar, Restaurar?

Why do you use Refresh to talk about tendency and to talk about an action? Sometimes I confuse with these terms.

Talking about timeframes. On this method (or system), do you see timeframes greater than 5 min? 15 min? 1 hr? Or it is not important for scalping techniques?

I remember that I read that you don't use the 1 min chart, you use a ticks chart, it is correct? why?

The SMA of the chimp2_1 is of 4 bars. Is it important for the method, or can I change for another of 2 bars, for example?

Thanks.

cattus