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Forex Junction

ATR stands for average true range. It is an indicator that measures the volatility of a currency pair or a stock. Most charting software should have this indicator included. Just apply it and you will get the ATR of the pair/stock

elfinchilde      ( Date: 10-Sep-2008 15:12) Posted: sorry, what's ATR? cool, your mtd's very dif from mine! new strat to learn, wheee!

 

sorry, what's ATR?

cool, your mtd's very dif from mine! new strat to learn, wheee!  

 

Being whipped-sawed out is a frustrating experience...

A few times I was right on track and would have made at least 50-70 pips within in an hour, but my too-close stoplosses have kicked me out. Now I place wide stop losses of at least 40 pips with 4 mini-lots.

My profit target then would be 50 pips... and I will get out and prepare to enter the next trade ...

Onece a day is enough... then one can go and "jia go pee" (sip coffee or, eat and go pee) ...

If I can do this a few times a day, it's even better...

 

I tried trailing stops before and they tend to get triggered very quickly because of noise. Lost money using trailing stops...

I use manual stops instead. Because I use the 10 day EMA, my stop is measured at 0.5 the daily ATR below the 10 day EMA line (for uptrending currency pair). I manually trail the stop at the start of every day.

elfinchilde      ( Date: 10-Sep-2008 14:49) Posted: hullo, thanks for the reply, singaporegal. ahaha, yuppers, ipunter got it right. i'm a chicken. :P jokes aside: because what i play are the ranges (rather than trending markets), so i currently function ok with stops of 20-30 pips. i should note that my time frames are short too. most trades don't last past a couple of hours. it's been profitable enough... eg, i just took abt 60 pips on the EJ pair. it does however, require constant watching. So was wondering what stops are needed to play trending markets. And trailing stops? advice from any forex experts would be appreciated. thanks! :)

 

hullo,

thanks for the reply, singaporegal.

ahaha, yuppers, ipunter got it right. i'm a chicken. :P

jokes aside: because what i play are the ranges (rather than trending markets), so i currently function ok with stops of 20-30 pips. i should note that my time frames are short too. most trades don't last past a couple of hours. it's been profitable enough... eg, i just took abt 60 pips on the EJ pair. it does however, require constant watching.

So was wondering what stops are needed to play trending markets. And trailing stops?

advice from any forex experts would be appreciated. thanks! :)

 

Hahaha... If I'm not wrong, I understand Elfin's concern there... :)

If one can't stomache the huge losses (bigger stop-loss), one can easily get stomach-ache! hehehe...

I should think that bigger time frames has can have corrrespondingly bigger 'noise level' too...

 

Check out this website - http://www.fxstreet.com/fundamental/economic-calendar/

I think the NZD rate cut is confirmed and already factored into the NZD's value. The market is just waiting for RBNZ to announce the amount that it is cut. If they announce a cut and give hints that further cuts are along the way, NZD's value will drop even further.

elfinchilde      ( Date: 10-Sep-2008 14:09) Posted: hi singaporegal, if you play trending markets, does this mean your stop losses tend to be larger? apparently the NZ rate cut is cfmed (internal talk). oil too. supporting 100.

 

Hi elf,

The bigger the time frame the bigger the stop losses.

I find that smaller time frames (1 hour or 15 min charts) tend to have lots of noise and the trade often gets stopped out. The daily or even weekly timeframes are more stable because the noise is less evident.

The downside to playing larger time frames are that you have to be able to stomach larger fluctuations in price in the day.

elfinchilde      ( Date: 10-Sep-2008 14:09) Posted: hi singaporegal, if you play trending markets, does this mean your stop losses tend to be larger? apparently the NZ rate cut is cfmed (internal talk). oil too. supporting 100.

 

hi singaporegal,

if you play trending markets, does this mean your stop losses tend to be larger?

apparently the NZ rate cut is cfmed (internal talk).

oil too. supporting 100.

 

Though it is easy to grab chunky profits in Forex, one can easily let one's profit run away too.

This is born out by a statement made by our member Techsys in an earlier posts to the effect thatcurrency play is largely speculative in nature and not an investment, unllike companies.

Some very rich people have also lost greatly in the currency market too...  very pitiable...

 

Hi Baseerahmed,

 I got this one - Forex Patterns & Probabilities: Trading Strategies for Trending & Range-Bound Markets (Wiley Trading)

http://www.amazon.com/s/ref=nb_ss_gw?url=search-alias%3Daps&field-keywords=Ed+Ponsi&x=0&y=0

 

My favorite technique is the trending one. Just use the EMAs and ATR indicators.

Because Forex trends last a long time, trending techniques are very powerful. I don't really like range bound techniques. Too much effort in monitoring required.

baseerahmed      ( Date: 09-Sep-2008 22:52) Posted: Ed Ponsi ... amazon has 2 titles ... which is the one ?

 

It is very easy to make chunky profits in Forex...

 

 

watch out for NZD Reserve Bank of New Zealand Rate Decision tomolo, great likelihood a 25pts cut.

cheerio

 

lentonz :

thank you very much for the hectortrader ...will sink in during free time .. thank you !

 

aarrgh ... missed it ! while searching for ed ponsi on amazon ! ....was waiting for usdjpy to come to 107.77 to take a ride down to 107.57 ....

ok .. back to square one ...hahaha !

 

http://www.hectortrader.com/coursechapter1.php

 

this something similar to this

singaporegal      ( Date: 09-Sep-2008 22:08) Posted: Hi baseerahmed, I only like to trade on the daily chart because I have no time to monitor the minute-to-minute movements. Too much noise and stress for me. Because of that, trend is very important. So I use 4 EMAs actually. The 10 day, 20 day, 50 day and 200 day EMA. If all 4 EMAs are in proper order - meaning that 10 day above the 20 day above the 50 day above the 200 day EMA (for uptrends), then the trend is pretty strong. Plus the candles must be supported by the 10 day EMA line. Go read this book by Ed Ponsi. Its one of the best around about Forex. baseerahmed      ( Date: 09-Sep-2008 22:01) Posted: singaporegal  wow ! very impressive ! just curious : is EMA10 a standard u use for all the charts/timeframe in stocks/forex or do u take the best fit ? thanks for sharing  : )

 

Ed Ponsi ... amazon has 2 titles ... which is the one ?

 

singaporegal :

thank you ! thank you ! thank you !

 

Hi baseerahmed,

I only like to trade on the daily chart because I have no time to monitor the minute-to-minute movements. Too much noise and stress for me.

Because of that, trend is very important. So I use 4 EMAs actually. The 10 day, 20 day, 50 day and 200 day EMA.

If all 4 EMAs are in proper order - meaning that 10 day above the 20 day above the 50 day above the 200 day EMA (for uptrends), then the trend is pretty strong. Plus the candles must be supported by the 10 day EMA line.

Go read this book by Ed Ponsi. Its one of the best around about Forex.

baseerahmed      ( Date: 09-Sep-2008 22:01) Posted: singaporegal  wow ! very impressive ! just curious : is EMA10 a standard u use for all the charts/timeframe in stocks/forex or do u take the best fit ? thanks for sharing  : )