[TheRumpledOne]

I just made a quick 9 pips shorting the GBPUSD to show that this works on any pair.

[sdoma]

Originally Posted by TheRumpledOne »

I just made a quick 9 pips shorting the GBPUSD to show that this works on any pair.

What kind of broker do you use? With a lot of the cash brokers out there, they'd rob you blind going for 9 pips on a scalp.

[TheRumpledOne]

Originally Posted by sdoma »

What kind of broker do you use? With a lot of the cash brokers out there, they'd rob you blind going for 9 pips on a scalp.

I used the fxcm FREE micro account. I have been playing with that platform this week. It's part of the CNBC trading contest.

My usual broker is mb trading.

How could they ROB ME BLIND?

If you use LIMIT ORDERS, you can only get filled at the limit price or better.

If you use MARKET ORDERS and are quick enough, they either accept your deal at the market price or they reject your deal.

[Hlm]

Originally Posted by TheRumpledOne »

There is no reason NOT to take the trades at 25, 50 and 75 if one those is the FIRST HORIZONTAL LINE to be crossed by the candle.

I would not necessarily disagree. However, if nothing changes then there would be no reason whatsoever to take a trade based off the 4H when you can just use the 1H. Because since you don't reenter until a new candle is created ("shipped already sailed"), you would only get one entry on the 4H (with the same Risk/Reward) when you could get multiple entries on the 1H. If nothing changes, the only reason one would want to view the 4H is to maybe stay with the larger trend.

Originally Posted by TheRumpledOne »

I would say "YES" because PRICE IS THE SAME on all time frames and all these methods are price based.

So the answer is literally yes, but realistically there is no reason to look at anything higher unless for finding bias to filter out some trades. I could be wrong, but I believe that the question about higher time frames was about staying in the trade longer than just a scalp. For this to be done, both the risk and reward would have to be increased so the amount of entries would have to be decreased since an ultimate stop is determined by the next line down.

Hopefully I am making sense. Again, I am not necessarily disagreeing...I am just trying to clarify.

[iinself]

In response to post # 101

Yes, I am thinking along HLM's lines. The question arose because I am not a full time trader and don't have time to keep monitoring the chart, so was wondering if I could move to a higher time frame and look for a slightly larger profit target, say 20 pips. I guess my question is what is the rationale behind your strategy of going long when a green candle crosses a 00, 25, 50, 75 line. If it is that it is a psychological # and there is a heavy concentration of trades placed on either side of these numbers and the color of the candle indicates the current trend then I guess higher time frames should behave in the same way as lower time frames. Also they would not be in conflict i.e. red 4 hr candle and green 1 hr candle because you trade only when the direction of the price and the candle color are same.

I hope I am being clear enough. Again to summarize the question is what is the logic behind this method, so that we could understand it the better and adapt it to situation better.

Thanks

[TheRumpledOne]

Originally Posted by iinself »

In response to post # 101

Yes, I am thinking along HLM's lines. The question arose because I am not a full time trader and don't have time to keep monitoring the chart, so was wondering if I could move to a higher time frame and look for a slightly larger profit target, say 20 pips. I guess my question is what is the rationale behind your strategy of going long when a green candle crosses a 00, 25, 50, 75 line. If it is that it is a psychological # and there is a heavy concentration of trades placed on either side of these numbers and the color of the candle indicates the current trend then I guess higher time frames should behave in the same way as lower time frames. Also they would not be in conflict i.e. red 4 hr candle and green 1 hr candle because you trade only when the direction of the price and the candle color are same.

I hope I am being clear enough. Again to summarize the question is what is the logic behind this method, so that we could understand it the better and adapt it to situation better.

Thanks

The logic is the statistics.

Just look at a chart with the HORIZONTAL LINES plotted.

You can SEE that you can almost always make at least 5 - 10 pips from this trade.

For H4, you would have to run the statistics to see how long to stay in.

[TheRumpledOne]

A quick 20+ pips on the RED H1 CANDLE SHORT at 0.6650

[TheRumpledOne]

WHAT A GREAT SHORT AT 0.6650