Slowkeys Intraday Setup Using Slope Strength and Diff

[slowkey]

I have been doing some reading this weekend. Dr Alexander Elder who is a psychiatrist and trader in New York city talks about how long it takes to become a good trader. He says it is about 4 years and cost you the equivalent of a university degree. The reason so many fail is that they are unwilling to put the work in to trading. It is hard work. You not only have to master basics of trading and a system but you have to master the psychology of trading, the latter being the most difficult. Trading goes counter to our human instincts. The other thing you need to master is proper money management. So all three are necessary. So many new traders are caught up searching for the Holy Grail. The perfect system. However in reality there are a lot of good mechanical systems that a trader could be successful trading if he mastered the psychology of trading and good money management. So I said all this to get to a point. Most new traders spend most of their time looking for a perfect system and do not take the time to master the psychology of trading or money management. One of the reasons this happens is the perpetual idea that trading is easy if you just learn my system. There is nothing easy about trading and it is not for the want of a good system that people fail and that is 95 percent of would be traders. Trading is a lot of hard work. The hardest work is mastering your mind.

[slowkey]

I have updated post 1 to reflect where the thread is going. I uploaded my current template along with every indicator that I have used in this thread in case you have a template you are fond of and need an indicator.

[slowkey]

So the EURUSD started off risk off with a drop down to 1.2800. There is very strong support at 2800. So I decided to take a 92 pip profit on this trade I started last Monday but actually a 102 pip profit if I was to count the initial the BE stop out. I will reevaluate a reentry off of a rally. I would have liked to make this a longer trade but I see profit taking at this moment a time stop. This trade has been of about a week long and
I think more would be gained off of a reentry on a rally. I would expect a good swing trade to clear a weekly pivot but that did not happen. The initial rapid move down to 1.2800 from 1.2850 was to good to pass up. It will be interesting to see if we see a little rally back to 1.2900. Sundays are slow days and I do not always trade sundays but it was encouraging to get a nice move down to 2800 right off the start of the AUD session.

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[slowkey]

Looking to take an intraday trade around 1.2880 . There are reported to be offers in this range and the daily pivot will act as resistance probably. There has been decent movement today in the EUR/USD for a Monday morning. 30 minute chart below. We are presently slowed down some by the weekly pivot and some offers reported to be in the 1.2860 area and buy stops also reported there. So hope to be able to short the rally.

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Just an edit to the above.
Of course I would have to see confirmation from MACD on the 30 minute period and a resetting of MACD on the hourly before I would enter a trade off of this rally.

[slowkey]

Interesting that we are seeing risk on trading after the Asian session started risk off. Heading to bed. Doubt a trade will emerge before the New York session on EUR/USD with it close to 2900 with good momentum. May see some consolidation. Interesting that GBP is holding its strength against negative news. Another sign that risk on trading seems to be dominating the London session. Again you can see on the indicator below by the POW(H4) sort that AUD, EUR, NZD, GBP, and CHF are making gains against JPY and USD. Just look at the color and move over to the symbol to see what currency it represents, Base Green and Quote Red. I do not want to be trading against this indicator. Since about 0800 london time we have been clearly risk on. This can change rather quickly though later this am for instance when the US stock market opens or any negative news out of the EUR zone.

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[slowkey]

Woke up long enough to see that EUR/USD is still pushing higher on strong risk=on trading. Really nice move for a Monday with daily range pushing 119 top to bottom. Generally we have not been seeing this kind of movement especially early in the week. MACD has good momentum still. Over all it would have made a nice counter trade against the 1 hour SDC if I had stayed up but one I was not going to sleep on. The move has covered from the lower 1.618 to the upper 1.618. It will be interesting to see if the joy continues or if we now start to see some consolidation and around R1 and later a possible trade setup for a move with the SDC trend. Will see how the US stock market opens and how strong equities are this AM. At the start of October we find the pivots clustered together and the majority of pairs having a ranging slope on both the 4 hour and daily.

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[fire580]

Thanks for the update.

[slowkey]

Some divergence is seen to start the rally on the MACD. Now we are starting to see what might be divergence on MACD to indicate a possible change in momentum. This kind of move would give conviction to a cross down of the MACD line over the signal line if we see it.

This is the 15 minute time period. If you look at the histogram between the first two skyblue lines you will see it red than green than a red with the second red zone smaller than the first red zone and of course price continuing lower. This is how Dr Elder confirms divergence by just looking at the histogram. If he does not see this he does not consider it divergence. He must see that green histo form as price continues down and than a smaller red one. Of course that would be vise versa on a move up. I have always looked at both the MACD line and signal line as well as the histo for divergence. So this is interesting. I am curious to see what happens between the last two pink lines I have placed because we do have the same pattern similarly emerging.

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[slowkey]

ISM Manufacturing PMI comes in better than expected and the risk on crowd seems to initially like that with EUR/USD moving higher back to 1.2930. Certainly will not hurt the dollar in long run but we have been risk on and this certainly did not spoil the party lol. There was an expectation that this number would not be good so give it 10 minutes and will see if start heading down again. Good time to go back to bed. Good to see PMI improving some. Did not expect that.

[slowkey]

After looking at Bobs update Oct 10.2a at the following thread

http://www.stevehopwoodforex.com/phpBB3 ... f=38&t=861

I updated the hour, four hour, and daily time periods on the template. Go download his system. He has got it down to 1 template and 2 indicators. Throw the indicators in the indicator directory. I was not happy with the accuracy of the Baluda indicator on the 4 hour and the daily. I am only using it now on the hourly. I have changed the hourly slope line to a 30 minute line. I think after further study it is more representative of intraday slope.

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The four hour and daily get the 10.2 TMA slope true NT indicator. So that I can be consistent with Bobs tools on the higher time periods. I have the TMA levels set to match his template settings.

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