Hi,TraderDesk wrote:Hi Tommiho,tommiho wrote:
Hi, just gathering some thoughts and forgot to thank you and ask you about ADR. How many days ADR would you use? I use to have it set on 10 days but I saw 3 days and even 20 days. While JPY is going so steep these days wouldn`t the shorter span of days be more telling? Just trying to prepare for the next week.The pivots will be out of place next week as Bob said so the ADR could give me some guidelines how far the move could go.
Thank you
Nothing is in concrete but I like to take the 10 day value when volatility has been on average otherwise on big moves I go with a 60 day average...
What I do after a big move like the last few days is to apply the HA indi I posted awhile back and set it on the 5 minute time frame... When price action crosses the blue average I have a high probability that the current trend has slowed/leveled/reverse so I will close some my positions there...
ADR I use as well for some of positions as it is a good way to normally wring out those pips for the day...On a strong trending day they are not the best to use so I use the above HA...
Price action for me means everything... All the indi's are lagging as well as providing overbought/sell signals that don't work in a strong trend in that timeframe... ADR reflects price action, Heiken Ashi reflects price action, my neocortex understands price action...So what I look for is to learn patterns in the currencies I trade in. No EA or indi will make me a successful trader but understanding visually the currencies I trade and applying strict risk management rules will have me going in the right direction... In this day and age forex is called a zero-sum market. What I understand is that the big players that trade FX do not do it to make money but to sort out imbalances within the asset classes of their domain. I make money by hitching a ride on their so-call corrections to those imbalances and I take care to float within the largest current monetary flow.
In trading you can use different methods that can do the same thing, just visually look different. For example 10.4 uses the 240ma as a daily directional bias for trades. One of my trading methods is to use HA on a daily TF. Price crossover on the HA is the same as the 240ma. I posted a picture below on the GBP/JPY of HA crossover as well as 10.4. Two different pictures but the same result. It is so important to get to know each currency pair that you trade in...
There are many pieces to trading in FX and it takes time to learn it... 10.4 I believe should be used as a framework and you add the other pieces to it... there are no hard and fast rules except when it comes to capital preservation, at least for me.
thank you for the answer.It is always a good read.
You are right, the Forex jungle is a thick one and in the beginning you think you have to use the all sorts of tools they are to get through.The further you go the more apparent it is that simplicity combined with PA is the way to go. Fox is not cutting down the trees to get pass them, it is slinking around fast and unharmed.Couldn`t help, not to say it
.As you said and many before you 10.4 is a great system, if you are a beginner or has been trading for some time.If combined with the visual side of price movement it is becoming a very powerful way of trading.
I know this is just general many times said bla bla stuff, but patience, good MM with clear set of rules when to get in and to get out can get you out of the harms way.Why is it clear now and not while trading, that`s the question, probably can`t see through the dollar signs in my eyes or my head is just not big enough to keep it inside and simple use it when needed.
Enough said about the theory back to the head clearing for Monday.
