Thread: Trend Following - A Complete Guide

96633Enjoying these last articles.

I shoot trades off the daily chart but use the 4 hour chart to input. Following a dip off the daily fashion line I enter on the start of the 4 hour . I set a stop. Losses are avoided by me having this type of stop. In case PA continues to penetrate the daily trend line I wait and appraise.

I set 2 entrances one with a rather compact profit goal and another I allow run with a fracture even stop loss or sometimes a trailing stop loss.

To receive back in the tendency later I use the 1 hour chart with 14,3,3 stochastics to identify a pullback or retrace. In case the daily trend is I enter on the 1 hour chart after stochs have exited the area. My stop is 5 to 10 pips over this pullback's swing high.

I also monitor the 5,10 EMA on the 4 hour chart. If there's a cross against the daily trend I begin thinking about trend trades and actually think about trades in the direction of this trend. In case the 5,10 ema doesn't cross back into the direction of the daily fashion then I'm probably waiting off the daily trend line.

Well I couldn't help share my trend trading egy and look foward to more great articles from Micardo along with others on their egies so that I can improve mine.

96633Hi Brenzaj42,

I expect you will continue to post here about your method of trading that the daily charts. I want some clariion on the parallel and inverse analysis thing. I guess I'm one of those that has to view it illued as charts being compared in order to obtain the big idea. I'm not sure an inverse analysis is required of you're trying to guage the strength of a trend on a pair you're considereing for a transaction. Just clueless. . .sorry. Hope you will be kind enough to edue me.

Additionally please post more charts. I can see why you enjoy the 5/12 EMA cross. I would appreciate knowing what angle of cross what the cause is and one you consider sufficient to bring a commerce. It seems to have something to do with momentum during the cross, that makes the trade worth carrying.

That I would also like to learn how you utilize fibonacci in your trading.

Thanks so much for your willingness to share info here. I like the idea of attempting to keep it easy, and this thread looks to be the spot.

Best regards,

Charles

96633First off, I don't use fibonacci. Whenever you're using parallel and reverse analysis, you are attempting to gauge the strength or weakness of BOTH sides of this pair. Lets say you want to brief GBP/USD. I will use concurrent analysis to ascertain how weak GBP pairs are where GBP is about the left and reverse to analyse GBP where GBP is about the right(basically EUR/GBP). I do the exact same for the USD side. A trend in the forex market is something making higher highs and higher lows but this market is exceptional in the regards that it is also a currency pair that is switching between currency and weak currency or visa versa. I mainly trade off of this daily chart so that I can change between daily charts. It literally takes about 2 seconds.

So far as the crosses proceed, I could post charts daily but try this. Establish every daily chart that you have using 5/12 ema crosses. Now, make the lines or candles (whatever you use) the exact same colour as the background so that you cannot see them. Only the 5/12 ema ought to be observable. Now you tell me that crosses possess the angle and separation to exchange. It will become second nature As soon as you have an eye for this.

Hope that helps.

Originally Posted by ;

Hi Brenzaj42,

I expect that you will continue to post here about your way of trading the daily charts....

96633Great short thread Micardo!

Can't wait for more. .

Happy New Year 2011!!

96633Hi Brenzaj42,

Thank you for the helpful reply about parallel reverse analysis and also the 5/12 EMA angle for commerce entry. I'll do as you advocate.

Can you tell me exactly what your win/loss rate is with this method as well as the risk/reward ratio that you look for each trade?

I need to trade the daily charts, also I'd like to create enough trades/income a week to be able to quit my day job. It looks like you have made it to that point and I would like to ASAP.

Thank you for your willingness to spell out your commerce method. I'm sure queries will appear, so I hope you will continue to post.

Best regards,

C.

96633I would say about triumph% about 85%-90%. The R:R ratio is great because I utilize 100 pip stop and the winners move anywhere from 200 pips to 2000 pips. You can just examine the charts to see that.

Originally Posted by ;

Hello Brenzaj42,

Thank you for the useful reply about parallel inverse analysis and the 5/12 EMA angle for transaction entry....

96633Nice information on the thread concerning pair strength estimating.
Surprising how little you visit, or I suppose that I notice, on
that here on the forums. Kind of crazy to not look at it!

For the reply on the R and the win :R Brenzaj42. Is how you determine a trade's exit. Appearantly it's not a set Rratio. Are you moving the stop loss as price moves favor, maintaining a 100 pip space?

Thanks again,
C.

96633I concur, It has always baffled me on here as well why people do not talk about it. This is the MAIN advantage to trading the Foreign Exchange in my own opinion. You can't really do so with shares, gold, or anything that transactions as a single unit. I guess with shares, you could look at sectors and things but this makes the Foreign Exchange a lot easier on the eyes.

Originally Posted by ;

Nice info on the thread regarding pair strength gauging.
Surprising how little you see, or I figure that I notice, on
that here on the forums. Kind of crazy not to look at it!

96633I exit the transaction when the tendency is over and for me that's when there is a fresh cross in the opposite direction.

Originally Posted by ;

Thanks for the reply about the triumph and the RBrenzaj42. The next thing I'd love to understand is how you determine a trade's departure. It's not a set Rratio. Are you moving the stop loss as price goes prefer, maintaining a 100 pip space?

Thanks again,
C.