10.4 A Complete System

[nanningbob]

You got it right, Bob. I'm an engineer at heart. Electrical Engineering & software. Gotta understand how something works, at least a little bit, and I tend to pick it apart to see what it's doing.

I can drive a car without knowing all the details of how it works. But I've never had any luck "just getting in and driving" in the trading world. It's like I'm crawling into the cockpit of the Shuttle, and I have no idea which of those buttons mean "go faster," "go slower," and "blow up" !!



So I ask lots of questions.

10.4 is a damn fine blueprint, and I'm hoping I can finally use it to master all those buttons and knobs. Thanks for your generosity and sharing, and for your patience with my questions.

I loved the pic of the shuttle. Can you imagine if a guy hit the wrong button? Would he even know which wrong button he hit?

My 2nd son is a genius who is off the charts. He has a master's degree in Computer engineering. As you know, to even complete that degree in 4 years is a miracle most take 5 or 6 years. He not only completed the degree in 4 years with honors but his junior and senior year in college Lockheed Margin hired him as a junior engineer at 35K a year. Not only did he pass with honors but worked 30-40 hours a week while doing it. Amazing kid. I bought my first house in my late 20's and made payments forever. He had his first house paid for by then. He is a fantastic kid now with 2 children. Both he and his wife are engineers who make 6 figure incomes. When you walk into the house there is nothing that is out of place or doesnt belong. I feel like I am walking into a show room floor. Love the kid even though he about an exact opposite of me. So I got to raise one.

[kwanann]

For the first time I dont see any real fundamental weakness in the system. It just cant predict the news or spikes that happen in the market. I am sure some unforseen market move will happen

I believe there is a clear difference between unable to predict news events and reacting to these events.

I got my first account killed purely on dumb luck, nearly killed my second on news event. And that was because i reacted poorly to them. I know bob is able to handle these events with finesse so he would not be unduly worried about them.

As for predicting news events, that is exactly where CJ thread will come in, or rather that will teach you HOW to react to the news event aka Price Action.

Its been quite a journey, but i believe once you are able to master these 2 techniques (or semi master them), you should be quite safe. Then its entirely up to you HOW you want to use them.

Everyone has their own trading style, there is no need to copy someone else's and you probably shouldnt. Just take all these together, and create your own personal style.

Sure you will take losses, heck everyone will lose once in a while, important is your winnings are more than what you lose

[kwanann]

hey kawanann

I like that you're trading with the trend using NB 10.4 pendings to take you in, but trading the reversal and hedging with CJ... pips in all directions

Well like CJ said, ride with the fox (down with 10.4)

Though i might say, i'm actually trapping the fox (hedging and reversal) since i'm second guessing where i think he will go

[hammondnz]

You got it right, Bob. I'm an engineer at heart. Electrical Engineering & software. Gotta understand how something works, at least a little bit, and I tend to pick it apart to see what it's doing.

I can drive a car without knowing all the details of how it works. But I've never had any luck "just getting in and driving" in the trading world. It's like I'm crawling into the cockpit of the Shuttle, and I have no idea which of those buttons mean "go faster," "go slower," and "blow up" !!

So I ask lots of questions.

10.4 is a damn fine blueprint, and I'm hoping I can finally use it to master all those buttons and knobs. Thanks for your generosity and sharing, and for your patience with my questions.

Hi Gary and Bob

My Gosh!! I think a light has been switched on!
Here I am looking at my results for the last 2 weeks wondering "what the hell am I not getting or seeing here???" I see so many of you making thousands of pips a week, in some cases days, and I struggle to make a few hundred a week - if I'm lucky!!
Bob, I think you've answered it in your reply to Gary. I also am and electrical/software guy and have to look at everything in a logical and orderly fashion and clearly going to have to try and get around that. I don't know how yet but it's a challenge I'm up for.
I don't want this to lead to a cluttering up of the thread so if anybody knows about such things ie the psychological aspects or techniques of looking at things with a different view so to speak, please PM me. The future of my trading career depends on it

Regards to all
Graham

[Jemook]

I'm with Gary on this one! Would just like to know what the indicators are calculating and the differences in their calculations.

Good to know what's going on under the bonnet even if you trust your car with your life.

J

[kwanann]

One thing i really like about the 10.5 system, which helps to bring us closer to CJ type accuracy

CSS.PNG

Notice the CSS shows CHF gaining strength and USD losing strength in the past couple of days

I've also cross annotated the 10.5 USDCHF chart with some CJ PA comments

USDCHF.PNG

Notice the beauty of 10.5 together with CJ PA, the lines are the typical pit stop of the foxes only when they want it to be, and how they put pins right at the lines as well so sucker people in.

PA already foretold the weakening of USD and strengthening of CHF on 17 May, CSS only picked it up a while later. the 240 MA, well its always been the slowest of the lot to figure.

Now as bob mentioned, price typically goes to WR1 or WS1.

So if you were playing pure 10.5 rules, you would have only put in buys for USDCHF till now, and even then i believe some of you guys would still be thinking of putting in buys as per 10.5 rules (crossing of DP, crossing of WP is almost impossible at this point)

or you might be confused with the CSS and not play this pair (since H4 CSS is red, RSI is flatbottom)

For me, here is my map for USDCHF, i'm expecting it to go back to DP (but not doing longs, too high risk), but i will place pending sells at those levels in case it goes there. Trades above the 240 is considered CJ PA style where i'm expecting stop hunts to happen and trap more longs before bringing it down.

Below 240ma, would be NB style trades, since the lines dont exist there i'm just putting in at H4 level and midlevels, TP at each level, i'm guessing that it will goto WS2 (CJ's H4 L2), probably not today

USDCHF.PNG

[nanningbob]

You got it right, Bob. I'm an engineer at heart. Electrical Engineering & software. Gotta understand how something works, at least a little bit, and I tend to pick it apart to see what it's doing.

I can drive a car without knowing all the details of how it works. But I've never had any luck "just getting in and driving" in the trading world. It's like I'm crawling into the cockpit of the Shuttle, and I have no idea which of those buttons mean "go faster," "go slower," and "blow up" !!

So I ask lots of questions.

10.4 is a damn fine blueprint, and I'm hoping I can finally use it to master all those buttons and knobs. Thanks for your generosity and sharing, and for your patience with my questions.

Hi Gary and Bob

My Gosh!! I think a light has been switched on!
Here I am looking at my results for the last 2 weeks wondering "what the hell am I not getting or seeing here???" I see so many of you making thousands of pips a week, in some cases days, and I struggle to make a few hundred a week - if I'm lucky!!
Bob, I think you've answered it in your reply to Gary. I also am and electrical/software guy and have to look at everything in a logical and orderly fashion and clearly going to have to try and get around that. I don't know how yet but it's a challenge I'm up for.
I don't want this to lead to a cluttering up of the thread so if anybody knows about such things ie the psychological aspects or techniques of looking at things with a different view so to speak, please PM me. The future of my trading career depends on it

Regards to all
Graham

Actually it is a good thing to talk about because it affects your trading. Obviously a guy like me who sold his house, quit his job and moved to China to try to start a school would not be a conservative trader. To me taking risk has always been part of my persona. I am not afraid to lose to win. Others are not like that. Everyone in my family has traveled overseas except my engineer son. One son married a Japanese lady, another married a Chinese lady. My engineer son married an engineer from Tennessee. So I can grasp the differences in personality and how it affects ones life. You can sometimes sense my frustration with people who need rules. I have never been afraid to try something a different way. Oh well interesting subject.

[f451]

Another nuance of 10.4 is the use of the pivots...


A lot of old time traders use pivots, and as Bob has pointed out crosses of the DP or WP are generally considered the switch of bias from short to long or vice-versa. Basically they're using pivots to assess the health of the trend. If price is consistently above the pivot, trading in a range between r1 (or r2, r3) and the pivot and retraces are respecting the pivot, then it's still an uptrend. if price is consistently beneath the pivot, trading between s1 (or s2, s3) and the pivot and retraces are respecting it, then you're in a downtrend. When price breaks that pivot this is most likely the start of a transition to a range or the beginning of a reversal. It's another thing to notice on the 10.4 template and help you decide when you want to set your pendings.

When price is trapped between the pivot and the 240, it's time for conservative traders to pass. Aggressive traders might go counter trend (using RS12 and CSS or price action) after the break of the weekly pivot, but before the break of the 240, targeting the 240 instead of WS1 or WR1.

I've marked up Kwanann's chart to illustrate.

[endikwong]

Another nuance of 10.4 is the use of the pivots...


A lot of old time traders use pivots, and as Bob has pointed out crosses of the DP or WP are generally considered the switch of bias from short to long or vice-versa. Basically they're using pivots to assess the health of the trend. If price is consistently above the pivot, trading in a range between r1 (or r2, r3) and the pivot and retraces are respecting the pivot, then it's still an uptrend. if price is consistently beneath the pivot, trading between s1 (or s2, s3) and the pivot and retraces are respecting it, then you're in a downtrend. When price breaks that pivot this is most likely the start of a transition to a range or the beginning of a reversal. It's another thing to notice on the 10.4 template and help you decide when you want to set your pendings.

When price is trapped between the pivot and the 240, it's time for conservative traders to pass. Aggressive traders might go counter trend (using RS12 and CSS or price action) after the break of the weekly pivot, but before the break of the 240, targeting the 240 instead of WS1 or WR1.

I've marked up Kwanann's chart to illustrate.

Some questions:
In this period, price still manages to cross WP and hits WR1. You mentioned that at WR1 it's a good point for counter trend shorts. How do you know this, since at that point price is between WP and WR1 and it's supposed to be in "long" trade.

I am sorry if this is not related to 10.x. Please feel free to delete my post here.

Thanks

[f451]

Some questions:
In this period, price still manages to cross WP and hits WR1. You mentioned that at WR1 it's a good point for counter trend shorts. How do you know this, since at that point price is between WP and WR1 and it's supposed to be in "long" trade.

I am sorry if this is not related to 10.x. Please feel free to delete my post here.

Thanks

Exactly why it's "counter trend". Price is above 240. Hits resistance at WR1, price prints an M (double top), showing that resistance level is being respected. Additionally in the previous week, price broke the weekly pivot instead of respecting it, showing we might be transitioning to a trading range or starting a reversal to a down trend. Good candidate for a counter trend short, even though price is still above the 240. The previous couple of weeks provide the context.