Category: Strategy

 

EURUSD Analysis

This is my latest analysis on EURUSD. This is based on combining a number of indicators to find a probability estimate of where the trend may go. In this analysis a trend is identified. No prediction is made. A strategy for entry and following of the trend is worked out.  Probability estimates based on standard indicators: 1. EMA50 2. Aroon 19 (a customised version). 3. BuySellSignal 4. ATR stop-loss by Vervoort. 5. RSI. 6. FibonacciRead More

Watching GBPAUD

A very big part of trading is stalking the markets. Good traders are always tracking the charts days and weeks in advance to see how patterns are developing, waiting for the right moment to strike their ‘prey’. Yes – for sure good opportunities don’t come along very often. But that’s part of the ‘job’. A good trader is spending much time in the background preparing; keeping his powder dry as they say. GBPAUD has someRead More

Weapons hot

The following chart is pretty busy – but don’t go crazy with all the lines. Just follow the numbers. What’s happening here is that I’m looking back in order to look forward. The indicators have been used to better see what happened and how I may approach similar setups in the future. I’ve basically combined various ‘weapons’ from my arsenal to attack the chart. [click chart for much larger view]     DISCLAIMER: The informationRead More

What about Binary Options?

Binary Options (BO) trading is another way of making a few quid. It’s far simpler than spreadbetting in that you don’t need to set stop-losses or work out risk to reward ratios etc. [Please note our SYP.] The basics of one type of BO trading is this: 1. You decide if you’re going to bet if price on whatever instrument will end higher or lower than your entry point. 2. You place your bet. 3. YouRead More

Harmonic trade – practical aspects

The trade in the annotated chart below shows how a Cypher pattern was spotted and trade taken to successful completion. Full credit is given to Alexander Nikitin from Tradingview. Big thanks is given to Alexander for his fine and generous work. This trade was live earlier in the day. I had questioned whether the D point met the Cypher criteria. Alexander explained the situation very clearly – and the relevance of the D point isRead More

Harmonic Pattern Sifting

Harmonic patterns are often referred to as ‘advance patterns’. This article does not go into the historical basis or evidence for the foundations of their use. There have been numerous statistical analyses of how these patterns can predict price action. No evidence is supplied for the latter. It is for traders to direct themselves to find these things. In this post the Harmonic Pattern Sifter is presented (without warranty). This tool is an algorithm thatRead More

Revisiting the Williams Vix Fix

In May 2015 I had briefly visited the Williams Vix Fix (WVF) when I was ‘Rethinking indicators’. On and off since then I had explored various setups on the WVF. Like most things in trading the importance of some aspect doesn’t quite hit you until later on. In the last few weeks I had been backtesting the WVF and came up with some conclusions that it is a workable strategy for delivering overall profits. InRead More

The ABCD harmonic

The ABCD harmonic is one of the simplest, yet most fundamental and profitable patterns to trade (says Scott Carney). Carney’s criteria are freely available on various internet sources and on YouTube. Importantly, finding the pattern and ensuring it is accurate is only the first phase of any potential trade setup. There are several other steps to follow after the pattern is identified for deciding if to enter and pre-programming exit points. This is not aRead More

Introduction to Harmonic Trading

I’ve been studying harmonics now for the last 6 months or so. It’s not been an easy task. This introduction is a summary of what I have learned about how they may be used and some of the difficulties. Harmonic trading is about finding and exploiting certain patterns that are regularly seen in all kinds of trading situations, across almost all time frames. There is overwhelming statistical and experiential evidence for their better than chanceRead More

Fractals – another arrow for your bow.

Fractal indicators are interesting and add to your tool box. When and how they’re used is entirely up to each individual trader. This post is not to say that ‘they’re good or the best’ or anything like that. When you study your ‘prey’ you may decide that you need certain types of ammunition and equipment for the ‘kill’. You are the boss of you, so you decide what you’ll use and how you’ll use yourRead More