Few important zones to watch out for GBPUSD …
Jul
9
2010
9
2010
Jul
7
2010
7
2010
Strategy: Where to place Stop Loss
Where to place Stop Loss and then when and how to move it with the trend. I thought the following formula might help you to understand how the concept really works …
Good luck.
Visual Example:
Formula:
Chande Kroll Stop: This indicator a potential stop for a position (short or long). It is displayed as a red and green line overlaid on the price chart. The green line is the stop level for a long position and the red line is the stop level for a short position.
Calculation:
HIGHEST[p](high) – x * Average True Range[p]
First low stop = LOWEST[p](high) + x * Average True Range[p]
Stop short = HIGHEST[q](first high stop)
The parameters which the user can set include: the number of periods for the calculation of the average true range (default:20), the multiplier in the formula (default:3).
Interpretation: This indicator a potential stop for any position (short or long). It is calibrated on the true range and for this reason, it is independent from the security’s volatility. Remember, true range is the highest in absolute value of the 3 following values: (Current bar High-Current bar Low) (Current bar High-Previous bar close) (Current bar Low-Previous bar close). The difference is proportional to the average True Range of P bars. It is possible to place a stop buy upon breakout of the upper band; and a stop sell upon breakout of the lower band.
Jul
3
2010
3
2010
Ichimoku Weekly: SP500 3rd July 2010
As identified in earlier posts, the 1250 Resistance is still alive and now the Index is quite close to its Mean Point at 1000
Depending on how we react at 1000 points, we’ll be able to determine the next Support Areas for SP500
Jun
24
2010
24
2010
ASX Updates: Mining Sector
With today’s dramatic developments of Kevin Rudd being replaced by Julia Gillard as the Prime Minister of Australia, we may have some serious money making opportunities in the coming weeks and months as these political moves may help the Aussie Mining Sector to fly on the upside …
The mining Stocks has had a drop recently because of highly unpopular Mining Tax being introduced by the Rudd Government and there are now hopes that Gillard Govt will work together with the Sector to reduce the Tax if not abolished completely …
Jun
22
2010
22
2010
Ichimoku Weekly: USD Index
Some important Support / Resistance zones for USD Index …
Jun
19
2010
19
2010
Strategy: Day Trading with Camarilla
A friend from Maldives has been talking about Camarilla Pivot Points for quite a long time and explained its relationship with the Fibnoacci Levels. However, I never understood the concept very well until he explained the whole process. The problem is that most of us think that its as easy as Buying and Selling when price touches the L3 or H3 levels … actually its not.
Those who love Fibos must look at how Camarilla can improve their Trading in general …
Camarilla helps you to determine the Upper and Lower channels for a day, you still need to ensure that you enter into trade at the best time. A combination of Camarilla, RSI and Moving Averages is all he uses … Timing and Patience are also quite important as you’ll have to wait for the price to not only reach to the Buy and Sell zones but also wait for the proper signal of price start trending …
Another feature is the ability to help you not to trade certain pairs / markets during a particular period / day. EURUSD chart below is the perfect example of why not to trade that pair on that day …
Hope you’ll find it useful …
Jun
17
2010
17
2010
Strategy: Simple does work
A friend from Belgium has kindly shared a system that works around the SMA 14 line … I thought some of you might find it useful.
Jun
17
2010
17
2010
Strategy: Long Term or Short Term
I just thought I would post a couple of charts I prepared few weeks ago when I was working on a Long Term Trading system for myself. I know that there arent many traders around these days interested in Longer Term Trading strategies but still I thought it might be worth sharing here …
BTW, I’ve yet to understand why people think that you need deep pockets to trade on larger TF … why cant long term trading be done on Mini or even Micro Lots ?
Jun
17
2010
17
2010
Opinion: What drives Share Price ?
I’ve always wondered what actually drives Share Prices of companies … I dont think its anything to do with luck. So for example if Apple’s shares are on fire, its definitely because of their innovative ideas and the kind of things they have done lately.
Here in Australia, there are some stocks which are considered favourites among the Investors. Such as Woolworths (Grocery Stores similar to Walmart in USA) is known as the favourite stock of Mums and Dads. With so much funding, backing from Govt and all the Monopoly that Telstra enjoys in Telecom Sector you would think that this Stock must be on Fire too … but unfortunately thats not the case with Telstra.
While almost all the big names (ANZ, Commonwealth Bank, BHP, RIO and etc) in Australia had a great Rally in 2009 Telstra never recovered its losses and has been in Bearish mode since June 2008. I never knew the answer until I myself had to deal with Telstra recently …
A Telecom Company that needs 3 business days to reply to your emails, 8 days to send their Technician to your place and the company that changes their appointments on everyday basis … with this sort of performance, inefficiency and business practices I wonder if it would be possible to set your share prices on fire ?
Jun
15
2010
15
2010
SP500: Locked in a Range
S&P500 Futures is still locked inside a 4H range … perhaps the reason why majority of the FX Pairs are following the same pattern …
Jun
11
2010
11
2010
JPY Crosses: Support Resistance Levels
JPY Index has finally signalled an opportunity to move on upside, however 50.00 is still a great challenge to be broken …
Below 49.03 the Bias for upside will become invalid …
Jun
10
2010
10
2010
No more Forum posts
I just thought I would let everyone know before I stop posting anything on Forums for some time. The reason is quite simple as I’ve realized in the last few months that since I’ve reduced the amount of time I spend on Forums and interacting with others, I’ve actually performed much better.
I’ve had a great pleasure during all these months where I came in touch with some of the great guys. Cody, Melb, Cmellon, Jared, Vincy (he is a star I tell you), Franosh, Vic and many others … these are just few names I could write here. The list is of course much longer.
Special thanks to Luc from Belgium, the communication with him over the recent weeks and months has been such a wonderful educational resource. Thanks for showing me the new way (Options) of Trading Luc …
Another reason why I’ve decided to reduce my appearance on Forums is the Trading Style, I’ve noticed that the number of people chasing smaller timeframes is getting higher and higher while the Traders looking at larger timeframes (like me and Aprendiz) are getting cornered. Many times, I’ve noticed that people dont even look at the charts I post on forums because they are like 4H and Weekly charts and of course they are not going to tell them what to do in next 10 minutes. My analysis might become even more worth-less for those looking at smaller timeframes in future as I’m now planning to move to even more larger timeframes and the minimum I’ll do will be on 4H and preferably on Daily and Weekly timeframes.
You might find me posting more and more analysis (on my CFD Blog) about Individual Stocks listed on FTSE, NASDAQ and ASX as I’m going to be more active on the CFD and Options Markets for one of my clients.
I dont know at this stage about when I’d want to return back to the Forums and Skype Rooms but my higher level analysis will always be available here on my blog whenever I’ve time to post it, most of the times that will be on the weekend.
I’d like to wish all the best to everyone I’ve been in touch with on these forums and I would also like to acknowledge the fact that all these forums and skype rooms have played a great role in this learning journey.
Thanks.
Jun
6
2010
6
2010
Ichimoku Weekly: USDJPY 6th Jun 2010
The Price Action is still inside the Kumo Cloud and 93.75 is still the level that will confirm a new Bullish run. Until that happens we’re better off trading on 1H and 4H timeframes …
May
30
2010
30
2010
Ichimoku Weekly: USD Index 30th May 2010
Some important levels for USD Index …
May
30
2010
30
2010
Ichimoku Weekly: SP500 30th May 2010
Updates to the previously posted chart and Support / Resistance Levels … 1000 still remains the possible Target for S&P500
May
30
2010
30
2010
Ichimoku Weekly: USDJPY 30th May 2010
Some important levels to watch out for …
May
30
2010
30
2010
May
30
2010
30
2010
May
28
2010
28
2010
JPY Crosses: Moving Up
The JPY Crosses have had a nice run on Hourly TF since yesterday as the JPY Index shows in the chart. I’m bit careful to see whether this is a new Bullish move or just a Correction to the Bearish run we’ve had since last few weeks now.
4H chart will confirm which way we’re going to …
May
21
2010
21
2010
Ichimoku Weekly: Crude Oil and 87.50
87.50 as suggested few weeks back has done what it was supposed to do … lets see where the Support comes in next …
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