[brownsfan019]

This thread was mainly focused around the ES and other stock indexes, I'd like this thread to be about the same trading premise but on Forex.

Just in case we get someone new to this thread, here's a quick review of the chart setup:

1) 5 Minute Candlestick Charts
2) 20 EMA (exponential moving average)
3) That's it.

And the entry setup:

1) A pullback to the 20 EMA
2) A candlestick pattern*

* candlestick pattern(s) to be used is up for debate. BearBull suggests using hammers and inverted hammers only; whereas I am open to most patterns.

IMPORTANT CONSIDERATION: The idea presented here is a possible ENTRY idea. As discussed in a few threads here on TL, there are many, many different ways to exit a trade.

WHY FOREX?: A few reasons:

1) I know very little about forex, so hopefully this thread could get some experienced forex traders chiming in about the markets and what to expect. I'll do my best to post some charts and we'll see how it looks.

2) It is said the forex can trend more than indexes, so maybe this entry system might work better than on the indexes (just a guess at this point).

3) I'm all about leveraging my time. If I can watch a couple indexes and a few currency pairs and trade where the primo setups are, that has my interest.

[brownsfan019]

Some charts from 9-29-08

All charts are from the FXDD MetaTrader demo software. If I were to pursue this further, I would need to investigate FX brokers as Open ECry does not have an FX division (yet).

I believe these are the main pairs, but could be wrong. If there are other pairs I should watch, please let me know.

[zdo]

BF,

.coming over here from your other invitation post and this is the first thing I noticed...

As far as pairs go you might consider substituting EurJpy for the UsdChf.
EJ has plenty of bang for the buck / action, a reasonable spread, etc while
UsdChf is almost perfectly (negatively) correlated with the EurUsd (so even if a setup occurs in the swissf it will follow what the EurUsd does.)

hth

zdo

[brownsfan019]

Thanks zdo! That's the kind of stuff I need to know.

[am500]

These guys do a similar thing, they seem to love to add indicators though - which is typical of FF.

http://www.forexfactory.com/showthread.php?t=11854

[jameson83]

check out: http://www.forexfactory.com/ for a calender of events. its always good to know when NOT to trade =)

[brownsfan019]

^^^ this better not turn into spam for ffactory. ^^^

[jameson83]

Originally Posted by brownsfan019 »

^^^ this better not turn into spam for ffactory. ^^^

lol... i got plenty more links from there, but in the mean time...

different site; how the forex market works:

http://www.investopedia.com/articles.../interbank.asp