10.4 A Complete System

[Dewey McG]

Just got an alert for EUR/AUD.
Long pending set at 1.29849, SL 1.28590, TP 1.31156.

Comments welcome.

I don't get the alert with either template.

[mjws00]

Interesting. Here is the Cowboy IBFX Stoch Template. RSI hasn't switched yet.

Feed differences I guess.

[lhDT]

Interesting. Here is the Cowboy IBFX Stoch Template. RSI hasn't switched yet. Feed differences I guess.

It isn't the feed, it's simply your broker time. Some H4 candles will close at 8:00AM, some other borker at 9:00AM etc etc ...
This makes H4 candles hi/low/open/close price different. It happens only in H4 of course.

[McNish]

I am sure it is not your intention ...

You're right, it's unintentional of course. I'll make sure it doesn't repeat again. Cheers !!!

[Dewey McG]

Price crossed the 240 on the AUDCAD. Before it crossed the 240, RSI 2 was on the bottom, but was moving up by the time it crossed. My question is whether this still makes buy trades valid? Since I am practicing on demo, I went ahead and placed the pending sbuy which was triggered at WR1

Thoughts? is this a valid entry?

[mjws00]

I think the rules line up. I'll admit the flat 240 and pivots all around it concern me. I haven't had much luck in those conditions. I would consider it a ranging pair and likely trade a variation. Too much chance we are banging through the 240 and getting stopped out. I think this is where you'd ideally kick into 10.3 or something.

No reason why you can't pick a different stop point though and trade the signals, imho. Just not sure they are vanilla 10.4. I'm looking forward to seeing how Bob addresses the ranging markets and or when the 240 is straddled. I'm too chicken for this one.

Mike

[mageous]

Is this AUDNZD setup a good one to be in?

[nanningbob]

I went to Monterrey for the day and visited the aquarium and various sights around there. Got wet when I went to stand on a rock and water splashed all over my feet but it was fun. I had to stick to Forex when we got to a restaurant and ordered a Sterling Burger which came with a little British flag stuck at the top. It was enjoyable.

I see we are discussing lot sizes, again simplicity is the rule. The lot size stays the same all through the levels. Trying to calculate each size at each level would be a nightmare and then figuring out the SL would add to the confusion. However, doing such a thing is not a bad idea just makes trading more difficult. So whatever entrance I use I stay with it throughout the trade. I also use a universal size for all my trades based on my account size at this point. For those that have been around me know I like to trade ten cents per thousand of account in past systems so for know that is what I am doing. For most pairs that puts me in a 1-2% per entry range. If the percent is telling me to trade 20 or 30 cents I still stick with the dime trades per thousand. If a trade is telling me more than 2% then I will adjust the lot size down. So keep it simple. makes it easy to set the risk free SL at 1/2 on 2 trades and 2/3 on 3 trades.

We are also seeing a lot of price action around the 240 line which means price is either resting or getting ready to change directions. Range trading is basically 1 or 2 levels and take the profit. Price is not going to run. If price breaks the 240 line wait for a clear signal which means you are waiting for a retrace to see if the new direction holds.

I check my 10.4 info page and we can see the order of strength is changing. JPY is going into range mode. This matches the news now because the Bank of Japan head is not buying into the new govt. program and the new head wont take office until April so I suspect the JPY run is done for now. I would predict it to range for now. I dont expect buyers to buy big because govt. does not plan to go that way and sellers will take a breather until the new head is announced and placed. So we can look for a new currency to take over the weakness spot. My best guess would be the pound but I will stick with the 240 MA and what it is telling me.

Tomorrow going to Lake Tahoe and staying there a couple of days. Will stop in again if I get online.

[nanningbob]

Price crossed the 240 on the AUDCAD. Before it crossed the 240, RSI 2 was on the bottom, but was moving up by the time it crossed. My question is whether this still makes buy trades valid? Since I am practicing on demo, I went ahead and placed the pending sbuy which was triggered at WR1

Thoughts? is this a valid entry?

No entry based on 10.4 You want to see if it continues up and then retraces giving you price above the 240 line and RSI 2 on the bottom. Probably no trade this week.

[nanningbob]

Is this AUDNZD setup a good one to be in?

Yes good trade. Price is below 240 and RSI 2 is on top. Also the Info page shows NZD as the strongest trending currency right now and the AUD still showing weakness. The gives you a good shot at a good trade.
NZD +.62 and AUD showing -.14 on the INFO trade so NZD is strong AUD weak but near balance. Conclusion NZD is stronger than AUD so sell the AUD/NZD.