I decided to start a news thread with my methodology, will be more simple to me to follow all question.
Part1 : this post
Part 2 : http://www.forexfactory.com/showpost...79&postcount=2
Part 3 : http://www.forexfactory.com/showpost...4&postcount=13
Part 4 : http://www.forexfactory.com/showpost...1&postcount=21
Part 5 : Soon
My Setup is :
SMI (Stochastic Momentum Index) 5/3/3/3, you can use a Full Stoch if you dont have this indicator.
Slow Stochastic, 14/3/3
TimeFrame : 30M/4H
PART 1:
Usualy i trade 10 paire but for all my exemple ill use EUR/USD, one of the most traded. In the screenshot you see all trade i took from the 26 april until now on the 4H timeframe, the 3 Diamond is all trade i didnt took but all 3 was a good trade and the square was not a good one. the First diamond have a wierd shape, when you see a shape like that usualy the trend begin to loose it momentum, but in this one he didnt do that. The Second Diamond was too low for me to go short. For the last Diamond if you look at the momentum before it moved up, its was realy realy weak, so for me usualy ill wait for the Stock to go in the 70~ before taking a trade to see a better momentum. For the square, the stoch didnt reach near 25 so for me its a no trade to go long, too weak momentum to have a strong feeling in it.
For right now i just wanted to show the 4H chart cuz its your primary tool to trade,it show you where the price go and you get a better feeling of the momentum.If you just started to trade with the Stochastic , only trade this timeframe until you have a good confidence in the Stochastic, the Slow Stoch is your trigger, the SMI is your warning, the 80/20 line are your last entry , after that, too late if it was upper than 80 and lower 20 (i dont enter after it broke it by more than 5-6 point, if im in, good, if not , ill wait for the second signal)
The first 3 trade was in a sideway market, going up and down and we got 1 wispaw (The Square), Its why you need spend hour and hour and hour at looking at how react the Stoch in all type of market cuz its easy to follow a hard trend but in weak market you need to understand how it react. For all people who read that and think they only need to sell/buy when the Stoch cross and its done, good , that will make more money in my account, for the rest of you who will take time to study this indicator and learn how the market react with it, im sure you will be happy.
Ill post at the end of each day all signal we got with the Stoch on eur/usd ,and analise with you all how i read it, there alot of thing to learn from that indicator but i didnt have the time right now to write all thing i want to say in one post.But ill take the time after each day.
The last thing, if on the 4H the Stoch look wierd, dont try to see on the 30M if it look better, maybe it will look better but that will not make you a better market to trade
Disclaimer : Take all trade at your own risk.
P.S i invite you to follow the TEB sytstem as well , alot of good information
Best Regards,
EricFX
Part1 : this post
Part 2 : http://www.forexfactory.com/showpost...79&postcount=2
Part 3 : http://www.forexfactory.com/showpost...4&postcount=13
Part 4 : http://www.forexfactory.com/showpost...1&postcount=21
Part 5 : Soon
My Setup is :
SMI (Stochastic Momentum Index) 5/3/3/3, you can use a Full Stoch if you dont have this indicator.
Slow Stochastic, 14/3/3
TimeFrame : 30M/4H
PART 1:
Usualy i trade 10 paire but for all my exemple ill use EUR/USD, one of the most traded. In the screenshot you see all trade i took from the 26 april until now on the 4H timeframe, the 3 Diamond is all trade i didnt took but all 3 was a good trade and the square was not a good one. the First diamond have a wierd shape, when you see a shape like that usualy the trend begin to loose it momentum, but in this one he didnt do that. The Second Diamond was too low for me to go short. For the last Diamond if you look at the momentum before it moved up, its was realy realy weak, so for me usualy ill wait for the Stock to go in the 70~ before taking a trade to see a better momentum. For the square, the stoch didnt reach near 25 so for me its a no trade to go long, too weak momentum to have a strong feeling in it.
For right now i just wanted to show the 4H chart cuz its your primary tool to trade,it show you where the price go and you get a better feeling of the momentum.If you just started to trade with the Stochastic , only trade this timeframe until you have a good confidence in the Stochastic, the Slow Stoch is your trigger, the SMI is your warning, the 80/20 line are your last entry , after that, too late if it was upper than 80 and lower 20 (i dont enter after it broke it by more than 5-6 point, if im in, good, if not , ill wait for the second signal)
The first 3 trade was in a sideway market, going up and down and we got 1 wispaw (The Square), Its why you need spend hour and hour and hour at looking at how react the Stoch in all type of market cuz its easy to follow a hard trend but in weak market you need to understand how it react. For all people who read that and think they only need to sell/buy when the Stoch cross and its done, good , that will make more money in my account, for the rest of you who will take time to study this indicator and learn how the market react with it, im sure you will be happy.
Ill post at the end of each day all signal we got with the Stoch on eur/usd ,and analise with you all how i read it, there alot of thing to learn from that indicator but i didnt have the time right now to write all thing i want to say in one post.But ill take the time after each day.
The last thing, if on the 4H the Stoch look wierd, dont try to see on the 30M if it look better, maybe it will look better but that will not make you a better market to trade
Disclaimer : Take all trade at your own risk.
P.S i invite you to follow the TEB sytstem as well , alot of good information
Best Regards,
EricFX
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