Thread: Instructor Question and Answer

In this thread, you will find common questions we are asked from clients and our responses. Join us for a live webinar where we answer the questions live and on the air.

DailyFX Plus LIVE Classroom (Live FXCM account username and password is required)

Question:
Hi Jeremy,

I attended your presentation at FXCM, Sydney on Tuesday, the 17th .

Did you tell another attendee that you had the CCI indicator in an email that you could send to us? I use the MT4 platform but it has the basic CCI indicator which only allows me to change the period from the default of 14.

I'm new to this indicator and would like any additional info on how to interpret the signals relative to those horizontal levels.

Thanks once again for the informative presentation and looking forward to reciving his CCI info.

Cheers.

Answer:Thank you for your question.

The CCI (Commodity Channel Index) Indicator that you found in MT4 is the same one as I was describing in the presentation. I use the default setting of 14, so your set up is correct! There are a couple of different settings used and there is not a material difference when using a different setting. The important key is identifying the trades once the CCI triggers.

Here are a couple of different articles that discuss CCI:
How to Trade Commodity Channel Index (CCI) in Forex | DailyFX

Using the CCI in the JW Ranger Strategy
Range Trading Forex: The JW Ranger Strategy | DailyFX

Occasionally, we will do live webinars on the topic of CCI and how to trade with it.

The webinars take place inside DailyFX Plus Live Classroom located here.

Have a great week!

Question:

Hi Jeremy,

Thanks for your presentation last night and appreciated share your knowledge with us.

may I ask how you handle that when CCI and Donchain channel is divergent in the 1 hour chart?

Thanks advance for your help.

best regards

Linda

Answer:

Hi Linda,

Although the CCI and Donchian channel are 2 of my favorite indicators, I don’t use them on the same trade.

I use the CCI for retracement trades…when I’m looking for periods of relative overbought levels to sell or oversold levels to buy.

Regarding the Donchian channels, I use them to enter into breakouts in the direction of the trend.

If you are going to trade breakouts, then stick with the Donchian channels while insisting to trade the strongest trends. When trading with Donchian channels, the key is identifying the pair in a strong trend. If that trend continues, then any divergence witnessed should be temporary.

Here are a couple of recent articles on some of the benefits of trading breakouts:

2 Ways to Trade a 2500 Pip Trend, Part 2: Fear of the Unknown | DailyFX

Breakouts: How to Stay Away from Some Losing Trades | DailyFX

Have a great week!

Question:
Mr Krivo

thanks a lot for today's 'very helpful and informative' training class. i'm a beginner so i'll be requesting additional info from the classes. please send the info on the currency weakness/strength analysis.

thank you again.

Manuel

Answer:
Hello Manuel,

Thank you for your interest! I’m pleased to hear you enjoyed the class today. We do several live classes at the same location each day. Check out the schedule of live events at the DailyFX Plus Live Classroom schedule.

Here is the link that explains how to go about doing a strong/weak analysis...

How to Create a "Trading Edge": Know the Strong and the Weak Currencies | DailyFX

By knowing the strong and the weak currencies, you can match them up so that you are buying the strong currency while simultaneously selling the weak currency.

Regards.

Question:

Hi instructors,

Can you please help on how to find the best pair for trading.
I am using a strategy on MA crossover but sometimes it works best on Eur and some days on Aud and other days on GBP.
How can I notice before on which pairs to use the strategy. Generally the strategy doesn't work when the pair is not moving a lot.

Can you please advice.

Thank you,

Erton

Answer:

Hello Erton,

It sounds like you are using a Moving Average Cross over strategy. A MA crossover strategy works best in trending markets. Therefore, the key to seeing consistent results with this strategy is by finding the strongest trends in the market to trade. Some days, that strongest trend may be the EUR….other days the strongest trend may be on the AUD.

To identify the strongest trends in the market you will need to look at a higher time frame and use multiple time frame analysis. I would suggest using a ‘trend’ time frame that is 4-6 times the size of your ‘trade’ time frame.

For example, if you place trades on a 1 hour chart, then identify the trend on a 4 hour or 6 hour chart. If you place trades on a 4 hr chart, then identify the trend on a daily chart. You can use this chart below to help you identify the proper time frame to locate the trend with.



Once you have identified the time frame of chart to determine the trend, then identify the strongest trend on that time frame. Once you find the strongest trends, you now know which market to trade your strategy.

If you would like to learn more about identifying a strong trend, visit DailyFX Plus On Demand Video Course and watch the 4 videos dedicated to Trend Trading. Simple log into this link with your live FXCM account username and password:

DailyFX Plus On Demand Video Course HERE



Then, press on the Trend Trading link to the left hand side and select Lesson 1.

Best of luck with your trading!

Originally Posted by Jeremy Wagner

Question:
Mr Krivo

thanks a lot for today's 'very helpful and informative' training class. i'm a beginner so i'll be requesting additional info from the classes. please send the info on the currency weakness/strength analysis.

thank you again.

Manuel

Answer:
Hello Manuel,

Thank you for your interest! I’m pleased to hear you enjoyed the class today. We do several live classes at the same location each day. Check out the schedule of live events at the DailyFX Plus Live Classroom schedule.

Here is the link that explains how to go about doing a strong/weak analysis...

How to Create a "Trading Edge": Know the Strong and the Weak Currencies | DailyFX

By knowing the strong and the weak currencies, you can match them up so that you are buying the strong currency while simultaneously selling the weak currency.

Regards.

Hi All,
Regarding the strong/weak analysis, I have been utilizing Richard Krivo's for about a year to good effect. However, I have recently found a website that does it quickly with different time periods (day, week, month etc) and you can update it by hitting refresh throughout the day. I find it useful because I switch to different sessions often (Asia, Europe, USA), and can hit it at the start of whichever session.

Regards
Keith T. Jones
Bangkok Thailand

Can anyone recomend a good candlestick book?

I have a couple of good reviews of Japanese Candlestick Charting Techniques by Steve Nison

Hello Mr Wagner. I am learning how to trade using the Wave Principal and I would like to use this thread to ask you questions if that is ok with you.
here is my eurusd wave count. do you think that the count is about right, base on this my projection is high for the eur to the 38.2% ret from my wave 2 yellow and my final wave 3. 1.2550 mark. however I don't feel that we can get to those levels. any advise

Here is a link to twee pic if you can not see my chart properly
Wave Count for EUR. on Twitpic

Originally Posted by Franco Moreno

Hello Mr Wagner. I am learning how to trade using the Wave Principal and I would like to use this thread to ask you questions if that is ok with you.
here is my eurusd wave count. do you think that the count is about right, base on this my projection is high for the eur to the 38.2% ret from my wave 2 yellow and my final wave 3. 1.2550 mark. however I don't feel that we can get to those levels. any advise

Here is a link to twee pic if you can not see my chart properly
Wave Count for EUR. on Twitpic

Hello Franco,

What is important to keep in mind is that there are 2 type of Elliott Wave technicians.
1) One who simply looks to count the waves
2) One who is looking for trading opportunities based on potential wave counts

As you can imagine, the above 2 technicians are different.

Regarding your chart, the labeling looks good - but that doesn't mean it is the right count. We won't know the right count until after the waves have completed. As a trader, there isn't much we can do after the waves complete.

Therefore, you have to find the higher probability counts and use it as a means to determine potential direction. Based on what you have provided, it appears the EURUSD needs to correct higher.

Does it seem possible today? Well, we are only a couple hundred pips which is no problem in the currency market. Will the EURUSD get to 1.2550? Time will tell.

So you have a plan, let the plan play out and trade accordingly. Let the market do the talking for you and don't worry about trying to predict. If it gets to 1.2550 - great. Otherwise, look for other opportunities.

Hello Mr Wagner, Thank you for your advise. After your response I have spent some time looking one higher degree to see where do we fit in the bigger picture and this is what I have found. if you have a comment or if you have some thing different I will like to hear from you, I have also done a wave count for the GBP but I have some questions which you can see on the chart. these are the monthly charts for the EUR and GBP.
Please use the link bellow to view the charts.

Forex Market Analysis

best regards
Franco

Now I'm reading articles about trading. I think that articles are more useful because the information is more condensed and you can learn much more in this way.

Hi Jeremy sir,
I am new in forex trading & also in this forum....I didn't find where to start new thread...so i just post my question here,regarding placing stop loss order..i am little confuse in placing stop losss order..please help me..In fxcm trading station, we have two diff. chrat of buy side and sell side(bid & ask),when i want to buy a particular currency,i need to place my entry order on buy side chart and for same when i want to place stop loss order,i need to place it by seeing sell side chart or by using same buy side chart or there is any other way?? plz provide the detail information and if possible plz explain it by using pictures..

Thank you,
priyesh