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Joined May 2009
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Status: Intimidator
|348 Posts
One thing I have found useful during those times when I was still trying to get a hang of all this was not to enter a trade while it is not overbought or oversold. Mostly I would follow this rule on H1 time frame. At other times it would generally be much better to get divergence, somewhat of a double top/bottom combo...
ok Friendo?
This is madness!?!? - THIS, IS, FOREX!!!
All these support levels including 1.4745 support trendline @ aprox 02:14 last night (eastern)
they all average 1.4262, and I think if anyone was to enter a long position in that area should have average entry limit order sitting around 1.4262, and it was HIT.
Now, even though I myself have failed to enter this position, I will paper trade exits and see how it turns out, just to see if my original plan could have perfect exits.
ok Friendo?
This is madness!?!? - THIS, IS, FOREX!!!
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Joined May 2009
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Status: Intimidator
|348 Posts
So,
According to my original idea - and still being biased long.
I will then have 3 take profit targets.
1. Along the top line (60%) (HIT)
2. 1.4407 (20%) (PENDING)
3. 1.4430 (20%) (PENDING)
And I recommend a hard stop at 1.4262 which should have been very close to anyone who has gone long earlier last night.
I'm going to speculate that the top line will be broken before the bottom, at least that's how I want it. Now I'm not saying that it will go up, I'm just saying that by being in a long position with entry @ 1.4262, it's very comfortable to still hold onto 40% of my original position (which again, my entry was too low and it didn't get triggered, so I'm not in this, just controlling what I would do had I taken that position.)
I'll keep updating on what's best in my eyes.
ok Friendo?
This is madness!?!? - THIS, IS, FOREX!!!
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Joined May 2009
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Status: Intimidator
|348 Posts
I was thinking lately about MACD and stoch divergences and have come to a small thought.
Basically, everything in trading in my opinion is being made complicated.
It's not all that hard.
Divergence is in essence a way to point out something obvious, like a double top. Sorry I don't have example handy. But many times, it's either a double top/bottom, or it's multiples. And at that point it becomes very clear when to place limit orders.
If I come across it I'll chart it.
ok Friendo?
This is madness!?!? - THIS, IS, FOREX!!!
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Joined May 2009
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Status: Intimidator
|348 Posts
My original plan had no hard stop loss.
The original plan was to take a loss if H1 bar was to close below bottom trend line. But I don't like to keep it like that.
You see, eventually it pays to be flexible.
Something I have been practicing was to place a hard stop at entry after my first target gets hit, first target being important resistance level usually 60% of my position.
Attached Image (click to enlarge)
ok Friendo?
This is madness!?!? - THIS, IS, FOREX!!!
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Joined May 2009
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Status: Intimidator
|348 Posts
I think I have found the best color scheme for myself on MT4 and I want to share it with you guys.
These are very easy tones to look at for long periods of time. Similar to yellow tunnel lighting, that's designed to be easy on the eyes.
There are no sharp color changes here.
You can copy and paste the settings directly!
Background: 54,54,54
Foreground: MediumAquamarine
Grid: I dont use grid, I hate it.
Bar Up: Aquamarine
Bar Down: OrangeRed
Bull Candle: Aquamarine
Bear Candle: OrangeRed
Attached Image
ok Friendo?
This is madness!?!? - THIS, IS, FOREX!!!