Tag: indicators

 

Finding entry stop-loss points using Guppy.

The Guppy system uses a concept called the Count Back Line (CBL), in order to find a reasonable stop-loss when deciding to enter a trade. A word of caution: the CBL only assists in certain ways below. Selecting a trade under the Guppy system involves SIX tests of which CBL is just one part. Those tests will be outlined In another post. Simply this is about counting back three candles from the apparent break inRead More

Trading with Guppy

When you say ‘Guppy’, most people think of the fish. So, I’ve put up an image of the fish – but this has more to do with ‘fishing’ than with fish. Very strange indeed. I have to admit I saw his system many months ago and at that time when I saw ‘Guppy trading’, I simply thought it was some nonsense about some fish and ignored it. Oh well – that’s bad. I should haveRead More

Stalking NZDUSD

This weekly chart below shows how I’m stalking the NZDUSD pair. I’ve set up alerts on Tradingview to tell me if/when price falls below 20 on the RSI. If that happens I’ll then make an assessment on whether I enter a trade. A lot of people out there have already gone long on this pair. A lot of people often get it wrong. I could see why they might go long – and they couldRead More

Stalking the S&P 500

The most important thing about this instrument below is the blue trendline. Leave off all the rest, if you wish. Looking closer at the more recent index value (in the red circle), it’s easy to see that it’s approaching the trendline again. Of course it may never hit the trendline – and the other possibility is that it could bust through it and head very south! However, the evidence on the chart is that evenRead More

Rethinking indicators

Many an expert trader will say something like ‘I rely mostly on price action, not indicators. Most indicators are useless and confusing.’ – which automatically brings up the question, “Which indicators are useful?”. But there are deeper issues. What is ‘price action’? Investopedia says, “Quite literally, price action is everything that a security’s price does, and just like every other facet of analysis, it is purely subjective.” Expert traders may well disagree by saying thatRead More

Support and Resistance

Support and resistance are absolutely important concepts for all traders. Supporting what – and resisting what  – are the questions that most new traders ask in their own minds. The easiest way to imagine ‘support’ is by reference to physical analogies. Forget about charts and trading for a moment. Have you ever needed a loan from friend or family? If not just imagine it. A loan is a form of support. You don’t want yourRead More

The market sniper-elite–videos

Francis Hunt (aka the ‘the market sniper’) is in a series of excellent video interviews on YouTube. Don’t miss this. This is absolutely golden stuff for all new traders – and even experienced traders. Time spent on this could be worth millions!! The full series is here. He talks about his interests and sports etc.how he spends his time outside of trading. http://youtu.be/jM_fx-JTdpY?t=7m54s Talks about average infantry vs sniper in army http://youtu.be/ZBZUWr7puOg?t=4m36s Proportion of time spent analysingRead More

How Technical Indicators can fail

Most noob traders get over excited about technical analysis. They spend much time working out how they work and trying them out. However, the story is the same for most experienced traders: they tend not to rely heavily on technical indicators; relying more on knowledge, skill and experience. No – that’s not intuition. That’s not guessing based on experience. It’s about gaining deeper insights into market psychology. The psychology of all punters in a shareRead More