Comment by Max Bongo on January 15, 2012 at 2:35pm

looks great to me, useful details for trading, but I wonder having followed such price action could the lines/indicators other than price bars be imagined-in. they are only a mathematically smoothed version of the price at different fractions anyway so could be understood by looking at the price pattern as a whole in exactly the same way, but i guess we might forget that without some representation?

Another note is to say that, at the time, it is the black ma line that shows the point of reversal.

Can we say the price flows like water, or physics in nature? Not exactly but often similar, so as such we don't need extra representations on the chart, as it is within our ability to project price reactions. It would be interesting to study the effects of each currency in the Dollar basket, as these "3D" effects might account for the price flows not behaving like natural physics completely.

Also this comes down to one's ability to manage or process "mess." A lot of people cannot abide mess or clutter on the chart as in their life. I have been through this myself, but I feel quite indifferent to it at the moment as long as a comfortable medium is found. If one's focus is drawn away from other components that need to be observed then it should be addressed to learn to see the whole picture. There are some indicators that are a bit different from just another representation of price but they can be included if they help you as well, why not? Just so long as you don't start making trading decisions based on one such indicator alone.

Comment by Peter jcp on January 15, 2012 at 3:24pm

Some good points there Choosename, Ideally for me i just want to be able to know when the price will be at least say 5 times higher ( or lower) than what it is at the time l look at it in real time - without out going the opposite direction lower( or higher by once. Example -my stop is 5 pips - then when will it move for say 25 pips above or below my stop depending whether i am targeting a buy or sell. Other key clues are off chart for this decision - the main one being the actual time of the day.

By being able to nearly follow it pip by pip ( waves within waves) - you then wait until the time is correct to enter the trade you require - by choosing the linear regression indicator that meets your criteria.

So if my stop was say 20 pips and i am looking for 100pips - i need to have all my linears the correct side of the price. If my stop is only 5 pips and I am looking for say 25 pips ( wave within a wave) - I only need a certain amount of linears above or below price.

The big advantage is smaller stops and smallers target with RR's over say 3 - ideally 5 + - happen more often - in any type of market - And are safer to take than a 50 pip stop and 250 pip target - as that might have 10 times of more variables that come into the equation to make it less likely to happen. Analogy - weather forecast- most people can be accurate for say 10 minutes - but not so accurate for next day or next week.

I am use to from my previous work environment to perform in very high pressure stress decision making situation- I am in control therefore whether i want to trade every 15 minutes - or only once an hour - I adjust accordingly.

The reason the waves will not follow exactly to nature or maths is because the market is deliberately interfered with by the market makers to make it more random. Forget this being an equal free market - the additional randomness is manufactured and so that is why over 1000 trades I and every trader will never be 100% accurate. The thing is though choosename i want to know when I am wrong ideally in 2-5 minutes - not 2 hrs or 2 days. - good to see you back have a good week

 

Comment by genxtrader on January 15, 2012 at 3:40pm

 hi pete, one of my favorite authors is alan farley,his philosophy is short term swing after identifying market inefficiencies,it seems you have identified with a great deal of success when the market becomes inefficient through the use of linears and have the ability to capitalize on on it, i use  my own momo indi, i rely on it to show me strength and weakness in different time frames,when it lines up, well, it makes me smile. i have to admit though naked price charts are attractive.

Comment by Peter jcp on January 15, 2012 at 3:55pm

Agree Genx- totally naked charts are attractive to the eye and look visually more appealing- as we indentify "clutter" or "messy" as inefficient. As a car enthusiast I love the the beauty of a Ferrari Enzo. However for a everyday work vehicle a classic box shape or "brick" like a Range Rover is far more suitable and can achieve so many things the Ferrari would not be able to do - again "horses for courses". I will check Alan Farley out cheers

Comment by genxtrader on January 15, 2012 at 4:06pm

http://www.hardrightedge.com/tactics/tactics.htm

Comment by Peter jcp on January 15, 2012 at 4:26pm

Thanks Genx - I had never heard of Alan Farley and I have just been doing some research on him and came across this link -http://www.thestreet.com/files/k/dst/pdf/dst_bonrep_30rules.pdf

This guy sees so much the same as I see in Forex- I am going to really look forward to reading more about his methods etc

Comment by genxtrader on January 15, 2012 at 4:50pm

  yeah this guy is very savvy,

Comment by Janos on January 15, 2012 at 9:53pm

such a gem:

Comment by Keith Shaw on January 16, 2012 at 1:09am

Agreed Janos, some classic little gems with in those '30 Rules' , Nice one Genx and Peter

Comment by Peter jcp on January 16, 2012 at 6:39pm

Carrying on with the GU 3 min chart from yesterday for a very slow Monday

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