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notouch

Market Wizard
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Posts posted by notouch

  2. Posted

    Interesting article. I think there has been a lot of political intervention to get the central banks to intervene. Only a few months ago the Bank of England was saying it's not their job to bail out banks that had made bad bets but now that's exactly what they're doing. It's just creating more problems for the future.

  13. Posted

    I frequently hold overnight positions. I agree with Dalton when he says you're putting yourself at an immediate disadvantage if you must exit the trade at the end of each day. There are some circumstances where it is so highly probable that a continuation will occur in the overnight session that you're just throwing away money if you don't leave the position open. I would regard today as one such day where if you have a short position open and you decide to close it for no other reason than that it happens to be 1615 then you're just throwing away profits.

  14. Posted

    The problem with targeting the 1.5 level is that if EUR/USD = 1.5 then USD/EUR = .666! It's not surprising price backed away from that level. Who knows if it will ever get there. You're entering the trend very late.

  16. Posted

    Hey, nice to see you back at the forum!

     

    Thanks. I've been focussing on forex trading with some nice set-ups on the 5 minute charts and a few fundamental trades here and there (long EUR/JPY since yesterday in anticipation of the Fed cut) so haven't posted here in a while. I came back to check if there's been much discussion on the rainbow indicator because I find that useful for getting into established trends. I post over at forexfactory more regularly.

  17. Posted

    IB hasn't got cheaper comissions than MB FX as far as I can tell.

    They charge normal retail traders 1 basis point * trade value in comissions ( e.g. 100k USD * 0.0001 = 10USD ).

     

    If you trade a lot you can get it down to a tenth of that, but that'd require a bunch of money. Besides their reviews are worse than the others, mostly because of their support.

     

    IB are much cheaper than MB. I don't know where you're getting your figures from.

  19. Posted

    Would you call that countertrend? I thought that because the black line was below the green line, it was an example of one of your "Trend Trades" or is it only a "Trend Trade" when the black line is below the magenta line? Do you consider it significant when the black line crosses the green line on the 5 minute chart or is that for exit only?

  20. Posted

    Have you considered ditching the 1 minute chart and using 5 minute candles instead? You have me hooked now so I was looking at the price action on AUD/USD during the Sydney session. I noticed the black line crossed the green line, then there was an "icon" pullback which culminated in a shooting star candle. That would have been my entry for a short scalp. The shooting star I'm referring to has a down arrow above it.

     

    attachment.php?attachmentid=2838&stc=1&d=1189640037

    rainbowshootingstar.gif.82528b73be1c24631646373807e338c5.gif

  21. Posted

    You mean the horizontal black line? This is definitely one of the strengths of the method because it should keep you out of choppy markets. The only problem is that you will often miss the start of a new trend. Also sometimes choppy markets give great trading opportunities (like today's GBP/USD). But as an indicator to distinguish between choppy and trending markets it's one of the best I've seen.

  23. Posted

    Thanks for that walter. It's starting to make sense now. It's a great thread but your explanations are a little long-winded if you don't mind me saying so it's taking me a while to work out what this method is all about. Here I'll try to explain it as succinctly as possible:

     

    1) Identify the trend using a 5 minute chart. If the black line is above the magenta line = up trend. If the black line is below the magenta line = down trend. Black line should be sloping, not horizontal.

    2) Expanding rainbow = strengthening trend. Contracting rainbow = weakening trend.

    3) Black line pauses after it crosses magenta line. If there is subsequent continuation = good trade may follow.

    4) Complete rainbow above magenta line = very strong up trend. Complete rainbow below magenta line = very strong down trend.

    5) If all the above are met and it looks perfect = possible trend exhaustion.

     

    6) Time entry using a 1 minute chart. Wait for pullback ("icon") then when black line crosses green line = enter trade. (Not sure what the relevance of the rainbow is here).

     

    7) Scalper exit when bar gets inside the rainbow crossing the black line or trader exit when black line crosses green line.

     

    Is that a fair summary?

  24. Posted

    Here's a chart of this technique applied to today's GBP/USD action. If you wait for the candle to close after the crossover, you would have got into these trades very late and probably would have taken a loss or breakeven at best on all of them. I used arrows for the "best case scenario" trades. These are 3 trades that I would actually have taken because the signals occurred at a time of day when forex is tradeable. I might even have been chopped out a couple of times in between trades 2 and 3. Have I misinterpreted this technique or does it not work very well on GBP/USD or was it just because today's action was very choppy?

     

    attachment.php?attachmentid=2832&stc=1&d=1189621521

    rainbowa.gif.3dfff012692875a2c4fc94792b35482c.gif

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