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10-07-2009, 08:07 AM
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First , the usd.chf and the eur.usd are 95% negatively correlated . I would recommend choosing only the one with the best technical setup to trade.
In regard to the setup. Heres how i am drawing fibs on the eur.usd.
We want to use the recent high and recent low for our reference.
The pair is moving down so we use our recent high as point one. Right at 4am we reached our next high point.
Here we can see the third touch at a shade past 6. This has been a great trade as you can see. However, the third touch didnt line up with any critical fib levels . The wicks on the candles are pretty clear.
Personally, Ill wait for a trade that lines up , fibs , wicks and trend. This is where it comes down to placing good trades or the best trades. Id rather take fewer but better signals .
Walker |
10-07-2009, 08:15 AM
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In regards to your charts, you missed the entry on your eur.usd chart. The thing is you had the setup perfect !
See the orange x , Ive drawn in ? This is the third touch and lines up nicely with the fib you have on your chart ! This is where you need to enter . Your trade would have been good for a 50 pip pop.
Heres a look at how the trend line and the three touches matched up !
Walker |
10-07-2009, 08:46 AM
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Thank you
All of that information was extremely helpful in understanding quite a bit Thank you. One last question hopefully.
1. Now that it appears that the Eur/Usd is moving down do I want to take out the up trend line where you marked the orange X and move it to a down trend finding two good tops to connect and wait for a third touch?
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10-07-2009, 08:50 AM
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Quote:
Originally Posted by jroseth
All of that information was extremely helpful in understanding quite a bit Thank you. One last question hopefully.
1. Now that it appears that the Eur/Usd is moving down do I want to take out the up trend line where you marked the orange X and move it to a down trend finding two good tops to connect and wait for a third touch?
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Thats correct, once the trend is invalidated , we dont want to trade off of it any longer. We need to move on and look for the next setup.
Walker |
10-07-2009, 11:16 AM
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5 min. charts
I just wanted to say 'Thanks Big Time" for posting the 5 min. chart on my thread (short eur/usd) a couple days ago.
I was looking at a gbp/usd 5 min. chart and decided to make a trade. I had always thought that the 5 min. was to short of a time frame for me to trade, but now I love it.
Made 6 trades on the 5 min. with only my resist and and tred lines to make my decisions and all have been WINNERS. Lowest was 6 pips and the highest was 22 pips and that is what I was doing on the 30 and 60 min. charts, but now I can do it faster. Also, I don't make or force trades from boredom.... always a trade just a few minutes away now.
Again, thanks
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10-07-2009, 12:19 PM
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Quote:
Originally Posted by Cliff M
I just wanted to say 'Thanks Big Time" for posting the 5 min. chart on my thread (short eur/usd) a couple days ago.
I was looking at a gbp/usd 5 min. chart and decided to make a trade. I had always thought that the 5 min. was to short of a time frame for me to trade, but now I love it.
Made 6 trades on the 5 min. with only my resist and and tred lines to make my decisions and all have been WINNERS. Lowest was 6 pips and the highest was 22 pips and that is what I was doing on the 30 and 60 min. charts, but now I can do it faster. Also, I don't make or force trades from boredom.... always a trade just a few minutes away now.
Again, thanks
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Your most welcome ! Im glad your finding success! Feel free to post some of your 5min charts up and share with the group !
Walker |
10-26-2009, 03:37 PM
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hey walker, from reading your posts i see that your scalping and short term strategy consists of a triple touch on the trend line and buying long/short at that third touch. what is the smallest time frame you see this system working at. if i find a trend in the 5min charts and apply the triple touch or do you think it works better at larger timeframes.
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10-26-2009, 03:55 PM
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i just sold out at a couple of pips profit. i know this is not the greatest example, here is another one of AUD.USD on the 5 min timeframe. i acknowledge this one is better since it seems that on the 1hr chart this pair broke through to the down side of the head and shoulders formation. so momentum is on myside.
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10-27-2009, 07:17 AM
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On your Eur.Usd chart that would have been a good trade. We had a high overnight of 1.4927 and you would have had a chance to be profitable here.
I personally would not have taken the trade however. Our chart just made a lower low and broke our last uptrend line . Instead , I would patiently wait for a chance to sell off a bounce of a fib line.
Your Aud.Usd chart also is in a downtrend. It is making lower highs and lower lows, so I would be looking for sell opportunities until this line is broken
Walker |
10-27-2009, 08:11 AM
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Lets take a look at the eur.jpy
here you can see our trend line developed from the highest high down to recent price action .
Our 50% fib projection matches up well with our trend line. When price matches up its our time to strike.
I have my stop currently at 137.20 well outside of the trend line.
Walker |
10-27-2009, 09:08 AM
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And the results are.... SUCCESS !
I have taken one lot off, in the money. I will let the other lot ride and see how far we can go !
Walker |
10-27-2009, 10:04 AM
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Ok I have been gone for a while in the power course and trading the majors. Started trading live this week after four months, off to a bit of a rough start but not too bad. I unfortunately missed the big move on the EUR/USD and got in on the tail of it for a $12.00 loss oops!. So I am trying to develop a simple scalping strategy still utilizing your three touch system. I am looking to utilize the 2H chart for my trend line and third touch, then going to drill down to five minute and a wait for 5M to break its current trend and last swing high or low. What else would you suggest I add to this while still keeping it simple?
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10-27-2009, 10:20 AM
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Quote:
Originally Posted by jroseth
Ok I have been gone for a while in the power course and trading the majors. Started trading live this week after four months, off to a bit of a rough start but not too bad. I unfortunately missed the big move on the EUR/USD and got in on the tail of it for a $12.00 loss oops!. So I am trying to develop a simple scalping strategy still utilizing your three touch system. I am looking to utilize the 2H chart for my trend line and third touch, then going to drill down to five minute and a wait for 5M to break its current trend and last swing high or low. What else would you suggest I add to this while still keeping it simple?
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Good to see you back on the forum ! Im glad you enjoyed your power course also. The instructors always have a wealth of information to share.
In regards to the three touch method, I would certainly employ fib lines with my entries. When fibs and trend lines collide we now have a high probability entry. Thats what were looking for right ? We want to give ourselves the best odds of being profitable as possible.
Take a look at todays example , 60 pips in just about an hour . Ill wait as long as it takes to find a setup like that !
Walker
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10-27-2009, 11:29 AM
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Quote:
Originally Posted by Walker E.
In regards to the three touch method, I would certainly employ fib lines with my entries. When fibs and trend lines collide we now have a high probability entry. Thats what were looking for right ? We want to give ourselves the best odds of being profitable as possible.
Take a look at todays example , 60 pips in just about an hour . Ill wait as long as it takes to find a setup like that !
Walker
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thanks for the tips i really was not sure about the three touch method working in such a small time fram as the 5 minute charts, but you should it could work big time! 2nd question on the EUR/JPY trade you did, the 50% fib line matched up right on the touch on the trend bar. how did you know to short at that moment? is it a posibility that it hit a fib line that it could have turned the other way? or is it the golden rule that i find myself forgeting most of the time.... trade in the direction of the trend.... |
10-27-2009, 12:22 PM
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Quote:
Originally Posted by ealarcon
thanks for the tips i really was not sure about the three touch method working in such a small time fram as the 5 minute charts, but you should it could work big time! 2nd question on the EUR/JPY trade you did, the 50% fib line matched up right on the touch on the trend bar. how did you know to short at that moment? is it a posibility that it hit a fib line that it could have turned the other way? or is it the golden rule that i find myself forgeting most of the time.... trade in the direction of the trend....
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Exactly, this is a trend based strategy , we always want to trade with the trend direction. I am looking for the three confirmations I used in our web event. Trend lines, candle wicks and fib lines. Trend lines identify the direction of our trade. Using fib lines shows us where there may be possible entry points when there are small corrections in the trend . Lastly , wicks help confirm tops and bottoms on our chart. All three put together are a deadly combo !
Just closed out the second lot for 120 pips .
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