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Maelstrom

Trading the Storm - Methods for the Struggling Trader

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Hi M,

 

Is this strategy or system can be applied to forex?

 

Eager to know as I am the one among other traders who are still struggling.

 

Thank you

 

TLC...it should. I will say that for myself, however, I do not really like forex. The fraction pips that brokers have gone to is really a pain, vast differences in data depending on the source, and you really are up against a lot of heavy hitters - central banks and such.

 

But, with that said, how I trade is just really HH/HL LH/LL formations, and that should work in most markets. 100R (10 true pips) eurusd chart attached with some trades. Trade targets worked out very nicely, and the last trade would still be open. The key is finding a good range period that flows well.... this one actually looks pretty good for EU.

 

M

 

attachment.php?attachmentid=25121&stc=1&d=1309810973

forex.thumb.png.4d10801713aeb8bbe84133026655acc6.png

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Maelstrom,

 

Great thread, thanks for sharing! I really like the simplicity of your methodology. Happy 4th and hope your dog gets better!

 

brave1

 

Thanks! She is doing better, thank you....a 110lb lap dog, and a complete baby, but we love her :)

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TLC...it should. I will say that for myself, however, I do not really like forex. The fraction pips that brokers have gone to is really a pain, vast differences in data depending on the source, and you really are up against a lot of heavy hitters - central banks and such.

 

But, with that said, how I trade is just really HH/HL LH/LL formations, and that should work in most markets. 100R (10 true pips) eurusd chart attached with some trades. Trade targets worked out very nicely, and the last trade would still be open. The key is finding a good range period that flows well.... this one actually looks pretty good for EU.

 

M

 

attachment.php?attachmentid=25121&stc=1&d=1309810973

 

Thank you very much Maelstrom,

 

1. Would you be so kind to decribe more clearly about the rules that you use for entry and exit for that eurusd? I do not comprehend that picture celarly.

2. Or can you show me the thead about HH/HL LH/LL formations to study. I really like simple method like this with price action. Np need to mess up with those indicators.

 

3. Regarding the 100R (10 Pips), do this means every bars has 100 pips range or 10 pips range?

4. How can we get those chart for MT4 platform? Any free software to use for this purpose?

 

Sorry for such many questions from a struggling trader.

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Not in any trade at the moment, but for the purpose of studying price action, the trailing stop on the long entry on YM from several days ago should be moved up to 12490 - bottom of a new upward formation.

 

M

 

attachment.php?attachmentid=25122&stc=1&d=1309825953

YM.thumb.png.27371908a942b7c1b52a6d73feca4068.png

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First of All, Tnx really

Would u pls clarify to which selection is valid when you have a multiple continuous signals

that one of them is indicated sell pos. & another one indicated buy?

I mean , is it right to recognize your method as reversal or continual?

which of these more valid, intrend signals or reversals?(in your method)

i have seen plenty situation that charts give us reversal signal inside continual that gift us little past.

Again, tnx for sharing

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Chop this morning, no indication of any trade....yet.

 

Day after a holiday weekend is NOT a favorite time for me to trade, but I will be doing it anyway mainly for the purpose of this thread. I would not be surprised to have a couple of losses today, but that is a good thing - no holy grails here my friends :)

 

attachment.php?attachmentid=25133&stc=1&d=1309875808

YM.thumb.png.860cfbccb927ab5fe25ae586f22fa86f.png

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Noted in chart . When these targets start overlapping - a newer one forms within the previous - I keep a look out for a touch or breach of a level, with a reversal bar for an exit.

 

Forming within previous levels is an indication to me of weakening momentum in the move.

 

M

 

attachment.php?attachmentid=25134&stc=1&d=1309876692

YM.thumb.png.514675f44617e90f97e2e4737e031ee7.png

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TLC.....

 

 

1. Would you be so kind to decribe more clearly about the rules that you use for entry and exit for that eurusd? I do not comprehend that picture celarly.

 

Please see attached chart

 

2. Or can you show me the thead about HH/HL LH/LL formations to study. I really like simple method like this with price action. Np need to mess up with those indicators.

 

I will try to find some documents and links that will better illustrate this - anyone out there that has a any good pdf's or sources out there, please post

 

3. Regarding the 100R (10 Pips), do this means every bars has 100 pips range or 10 pips range?

 

10 full pips, not fractional - keep in mind, the example I posted with this range may or may not be optimal for this market. 25 pips, or 50 R could be better - I was simply posting a quick example for reference as I do not trade forex (but it should be possible, just more difficult imho)

 

4. How can we get those chart for MT4 platform? Any free software to use for this purpose?

 

I believe someone posted the MT4 indicator in this thread a few pages back - if it is not there, let me know - I think I still have one somewhere

 

attachment.php?attachmentid=25135&stc=1&d=1309877351

forex.thumb.png.78ddbd1d9e0b18c7e6c1ceb443718054.png

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First of All, Tnx really

Would u pls clarify to which selection is valid when you have a multiple continuous signals

that one of them is indicated sell pos. & another one indicated buy?

I mean , is it right to recognize your method as reversal or continual?

which of these more valid, intrend signals or reversals?(in your method)

i have seen plenty situation that charts give us reversal signal inside continual that gift us little past.

Again, tnx for sharing

 

Mistake,

 

I advise taking the first signal after a trend. For example, a market has been steadily trending down, the first completed signal up is usually the correct signal to take. Any further signals upward I do not usually take - I just manage the initial entry and try to stay in it as long as possible.

 

I guess I would describe my method as a reversal method with confirmation (if that makes any sense)

 

Not sure if this helps, but review the first few pages with the charts I posted, and hopefully it will be a little clearer.

 

M

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YM 12490 has been holding firm - 3 touches/breaches, but no closes below. If price fails to make it down now, I have a feeling upside targets will be valid. Will post updated targets if the range is breached to the upside.

 

M

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I had posted a chart earlier with extension target levels that were incorrect.... just chart and data problems. Attached is a corrected chart, again, if the market intends to move up from here.

 

Again, levels overlapping within themselves. Would need a strong upward move through these lines to invalidate them and set a higher target.

 

attachment.php?attachmentid=25145&stc=1&d=1309903660

YM.thumb.png.1a455dea7aead6608563b287978edd96.png

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After several days, finally, a possible short formation has appeared. Just straight consolidation/ horizontal box formation since yesterday, but with some news coming out 9am CST, maybe there will be movement in some direction.

 

Obviously, no trades yesterday for me, which is much preferable to what I used to do - forcing trades, and taking too many losses waiting for a move that never comes. Lets see what today brings.

 

M

 

attachment.php?attachmentid=25155&stc=1&d=1309955309

YM.thumb.png.d954dd9d8d40fce03ec84e77523979db.png

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If anyone has recommendations on RELIABLE data providers, please let me know. I find I have to refresh a few times a day and often times, some data was missed. Updated chart below.

 

There is a bar close below formation, now waiting for a pullback and move downward. Entry stop for short currently is 12481. Not feeling great about a short here, but them's my rules :)

 

M

 

attachment.php?attachmentid=25156&stc=1&d=1309957289

YM.thumb.png.382f3ed1fbd8b488b427e6dc3a6af2e5.png

Edited by Maelstrom

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Hi I've been following your thread. Thanks for sharing.

 

I get Zenfire Data through my broker.

 

Just a heads up to you, my chart does NOT show a close below the formation yet.

 

This is a chart from about 7:33 am Eastern

 

attachment.php?attachmentid=25158&stc=1&d=1309959298

5aa7108871284_YM09-11(20Range)06_07_2011.jpg.bbcd074e8c0eb0bd07772c38eb461d3a.jpg

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Attached.

 

As I said, not sure what the follow through on this trade will be, but only two outcomes possible now!

 

Btw, someone PM'ed me that their chart data looked different than mine (and thanks for letting me know) - anyone else getting that too?

 

Thanks

 

M

 

attachment.php?attachmentid=25161&stc=1&d=1309961193

YM.thumb.png.3d664a50508a15a15d495ab426c7017b.png

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Hi I've been following your thread. Thanks for sharing.

 

I get Zenfire Data through my broker.

 

Just a heads up to you, my chart does NOT show a close below the formation yet.

 

This is a chart from about 7:33 am Eastern

 

 

Out of trade at 12498. YMoca, thank you! A refresh of my charts matched yours exactly. I may be offline here for a bit - I am completely done with my crappy data provider, and going to sign up with a new one right now. Absolutely unacceptable.

 

This shouldn't take long. Thanks again YMoca!

 

M

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If you don't use tick or volume charts in your trading, then Interactive Brokers is going to be the cheapest, real-time data fee around (pretty much no charge for most U.S. based markets). Of course, it's snapshot data, not time-stamped, transactional data For minute-based charts and range bars, I'd say that's your most economical approach. And besides, your Ensign charting package supports them.

 

For transactional data, Anyone else is going to wind up costing you $600-$1500 per year. This is total cost, regardless of how they slice or dice the charting / exchange data charges in "the package" they're charting.

 

If you are using IB data already and you think that's the culprit, I would tend to doubt that.

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Hi M, It's really nice of you to share your trades and ideas. I have CQG and their data seems good.

 

Thanks,

 

Ed

 

Thanks Ed....got things up and running, and just watching at the moment. Glad you are enjoying the thread - just wish it was more active right now.

 

M

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