How to Trade 10.x Like a Boss

[Jemook]

usdjpyh1.gif

Hey CM,

Technically there was no short there because price wasn't near the WP. I mean you can take it but it's more risky. Also, I don't understand why you'd want to go long when RSI2xTMA is pinned to the top, that's when I'm looking for short.

Anyway, experiment away!

J

[Ingot54]

As an example here is a H1 chart for the UsdJpy. For this pair, like all the other yen pairs, people have been noting the incredibly strong 10.4 set up for a short. On that basis I jumped in for a short on the red bars last night. But that didn't work out.

As an alternative I note that it would have beneficial to go long every time it turned green given that the H4 RSI(2) is totally pinned at the top.

comments?

cmeade2

Take a look at the attached chart. The comments may or may not assist.

That strong bear candle that led to the red bars on CSS was the culprit in destabilising the CSS readings.

But my real point here, is the need to refresh tpl.

The number of greens, reds and yellows on my chart changed significantly on refresh ... in fact the reds and greens totally reversed on on chart.

Could it happen on yours too?

[cmeade2]

Jem

The price on UsdJpy was totally below the WP. Massive short by many scores. But it didn't work out. No Big Deal.

The reason to go long when the RSI(2) is pinned at the top, or vice versa, is that it's part of a trend. There are plenty of 10.4 trends you get in on in the early stages and they go to multiple levels. All the while the RSI(2) is pinned. It's that simple.

cmeade2

usdjpyh1.gif

Hey CM,

Technically there was no short there because price wasn't near the WP. I mean you can take it but it's more risky. Also, I don't understand why you'd want to go long when RSI2xTMA is pinned to the top, that's when I'm looking for short.

Anyway, experiment away!

J

[Ingot54]

usdjpyh1.gif

Hey CM,

Technically there was no short there because price wasn't near the WP. I mean you can take it but it's more risky. Also, I don't understand why you'd want to go long when RSI2xTMA is pinned to the top, that's when I'm looking for short.

Anyway, experiment away!

J

Jem ... I think at the point CM shorted, the RSI2 was pinned to the bottom.

Also I thought the strategy didn't rely on pivots for entry ... just exits?

Correct me if wrong ... happy to wear egg-on-face ... but please scramble it first - I have not had breakfast yet

[cmeade2]

On the UsdJpy, according to Jem's framework, it was pinned on the top, which was the reason for the short.

usdjpyh1.gif

Hey CM,

Technically there was no short there because price wasn't near the WP. I mean you can take it but it's more risky. Also, I don't understand why you'd want to go long when RSI2xTMA is pinned to the top, that's when I'm looking for short.

Anyway, experiment away!

J

Jem ... I think at the point CM shorted, the RSI2 was pinned to the bottom.

Also I thought the strategy didn't rely on pivots for entry ... just exits?

Correct me if wrong ... happy to wear egg-on-face ... but please scramble it first - I have not had breakfast yet

[Jemook]

On the UsdJpy, according to Jem's framework, it was pinned on the top, which was the reason for the short.

According to my rules it's best if price retraces to a pivot/support/resistance before shorting. You can take anything else but it's not an A grade setup.

" Rule 1. Wait for a decent retracement. Best setup is when price has retraced to a pivot or support (WP, WS1, WS2, MS1, MS2)"

Now's the time to look for a short on USDJPY:

UDSJPY.png

[cmeade2]

Jem

We will see. It is true that it is a huge 10.4 setup. But the bars recently flipped green and there has been some profit. Pulling back now.

Who knows

cmeade2

Now's the time to look for a short on USDJPY:

UDSJPY.png

[Ingot54]

On the UsdJpy, according to Jem's framework, it was pinned on the top, which was the reason for the short.

According to my rules it's best if price retraces to a pivot/support/resistance before shorting. You can take anything else but it's not an A grade setup.

" Rule 1. Wait for a decent retracement. Best setup is when price has retraced to a pivot or support (WP, WS1, WS2, MS1, MS2)"

Now's the time to look for a short on USDJPY:

UDSJPY.png

Jem - have you updated the RAR rcently?

This is where I have my wires crossed this morning.

Your RSI2 is totally different from mine

Mine says V 1.0
Yours says V 2

[mobthehop]

cmeade / Jem,

I am also looking at a similar application of RSI TMA (I do not trade 10.x.......)...

We know that the standard RSI can can stay in OB / OS area for long periods of time in strongly trending currencies..... Same applies by extension to the RSI applied to TMA

See attached Eur /AUD H4 with only RSI TMA, 200MA and (for comparison) RSI (14) / (21) applied (RSI periods randomly chosen!) - by common understanding any RSI reading over 50/55 indicates long only.... It goes without saying that this does not apply in ranging pairs!

This application has absolutely nothing to do with 10.x - however, I have been using RSI-TMA OB as secondary buy signal in my system for about 2 weeks now and booked some nice pips...

Food for thought.... Just my 2 pips...

Cheers / Mop

[bluedog23]

On days like today when there no 10.4 options, you definitely start looking for new options.

Along these lines, I think this is a productive extension of Jem's framework.

Jem's approach is based on an established 10.4 setup and then you look for color changes in the direction from the H1 CSS.

As an extension, it might be useful to look at color changes for the 10.4 trades that are already underway. That is if the pair is above the 240 and the H4 RSI(2) is pinned very high. In this case you may have a bullish trend that will continue on, but there may be retraces that will provide opportunities for entry.

As an example here is a H1 chart for the EurAud. In this case, the 10.4 long is underway as the H4 RSI(2) is very high and it is above the 240. But there has clearly been some retrace as there were red and golden rod bars on the H1 yesterday. But then it when green (again) at 9 am EST.

That would have been a great entry to go long that would still be going strong.

comments?

cmeade2

cmeade2

Interesting post; it seems like in a strong run the RSI2 H4 could (and does as you have noted) stay pined as the price moves and retraces. The CSS H1 bars would change color as the RSI H4 stays pined. I understand that Jem's plan focuses around the WP with TP at WS/WR so I'm not trying to post off topic but I think this has legs as a continuation of his basic plan. Thanks for posting; I will post some additional examples after I play with the idea a bit. Jem if I get too off topic just let me know. I like the focus of this thread and don't want to negatively impact that.

Thanks