Mr. Charts' Forex Trades

Mr. Charts

Mr. Charts

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I've earned my living for the last ten years day trading US shares, but since the US isn't open during the UK morning I have most mornings free so just occasionally I have a look at the major pairs. Sometimes a nice easy set up of the dozen I use on US shares crops up - in which case there's no point leaving money lying around feeling unwanted and unloved :cheesy:
I'm not on my main computer at the moment so will post the first chart tomorrow, FWIW.
Richard
 
Mr. Charts said:
I've earned my living for the last ten years day trading US shares, but since the US isn't open during the UK morning I have most mornings free so just occasionally I have a look at the major pairs. Sometimes a nice easy set up of the dozen I use on US shares crops up - in which case there's no point leaving money lying around feeling unwanted and unloved :cheesy:
I'm not on my main computer at the moment so will post the first chart tomorrow, FWIW.
Richard
Click to expand...

sounds great Richard,you will of course be more than welcome to post your charts and trades on the live forex call and set up thread.
 
Long point A
Exit point B
+54 pips

Long point C
Exit point D
+52 pips

First entry on new trend confirmation. Possible chart resistance at entry because of bottom of consolidation zone so very tight stop.
Exit when candle took out low of previous (just as in the method on the US equities thread).
Second entry on break to high after minor pullback and exit for same reason.

Times are Eastern Daylight, five hours behind UK.

I only trade FX occasionally and then only with high probability set ups, as my living is day trading US shares.

I've seen this situation quite a few times and it's profitable a lot of the time. Even when it's not, a tight stop keeps the losers small.

Basically it's a simple reversal which I stay with till I'm knocked out.
Richard
 

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Mr. Charts said:
Long point A
Exit point B
+54 pips

Long point C
Exit point D
+52 pips

First entry on new trend confirmation. Possible chart resistance at entry because of bottom of consolidation zone so very tight stop.
Exit when candle took out low of previous (just as in the method on the US equities thread).
Second entry on break to high after minor pullback and exit for same reason.

Times are Eastern Daylight, five hours behind UK.

I only trade FX occasionally and then only with high probability set ups, as my living is day trading US shares.

I've seen this situation quite a few times and it's profitable a lot of the time. Even when it's not, a tight stop keeps the losers small.

Basically it's a simple reversal which I stay with till I'm knocked out.
Richard
Click to expand...

Looks great,54 pips a day is more than enough for anyone.As I said though Richard could you kindly post your trades in advance,so we can have a better understanding of how it works in real time.Thanks
 
I don't do 106 pips a day. Those were two trades off a set up I really like - as simple as that.
As I said, I only trade FX very occasionally when a very good set up crops up and no doubt there are loads I don't see as I don't even look once a day.
I'm merely posting to suggest that if someone sees a similar set up it might be worth watching as they are often profitable.
 
interesting, I think occasionally trading markets outside of your speciality can be a good thing, have you got enough of a sample size to know this stuff works?
 
Being diversified in the markets you trade is a good thing. Keeps the mind sharp and the boredom to a minimum.
Nice to see you posting some forex trades, Mr Charts!

Peter
 
Aw, damn it Richard. I've never looked at a forex chart 'cept by accident. Now you've gone and tempted me.

jon
 
arabian,
A reasonable sample of 113 over 17 months using different methods based on the ones I've been using on US stocks for ten years.
So yes, statistically significant results but not the sort of sample size of 500 I'd like.
If I had concentrated on FX there would have been very many more than that.
Richard
 
:clap: Mr Charts, I followed your US stocks with great interest and it really helped to motivate me to concentrate on reading about trading more and gradually creeping in to it.. making some steady gains after a few pit falls and coincides nicely with you posting on forex. I hope you post more as I enjoy reading your posts.

Thanks:smart:
 
Looking forward to following this thread. How to make money trading the markets was a great read.
 
Mr. Charts said:
I've earned my living for the last ten years day trading US shares, but since the US isn't open during the UK morning I have most mornings free so just occasionally I have a look at the major pairs. Sometimes a nice easy set up of the dozen I use on US shares crops up - in which case there's no point leaving money lying around feeling unwanted and unloved :cheesy:
I'm not on my main computer at the moment so will post the first chart tomorrow, FWIW.
Richard
Click to expand...

Belated thanks for starting this thread Richard. Sorry, I didn't spot it when it started.

Am I correct in thinking that it's a similar system to the one you post on T2W about your equity trades, but for (the occasional) Forex? i.e. with similar timeframes, etc?

Sorry, not yet looked properly at the specific trades, but I'll do that now.
Cheers,
Mike
 
BTW, if I understand (or remember) your posted methods correctly, you can't very easily post them in advance can you? (Well, I guess you can post candidate pairs to look at).

With hindsight (since I had not looked at this thread until tonight), this method would have worked brilliantly on cable today. (Not that it is always so "well-behaved").


Could also have worked on EUR/USD, although that was slightly more erratic.


Given that there is an established trend, do you always wait for a pull-back/reversal, or would you sometimes just go for it?
 
Dear Mr. Charts,

Would really appreciate further elucidation behind your entry decision at point A.
How were you so confident for instance, that this was the beginning of a new trend?


Many thanks.



Mr. Charts said:
Long point A
Exit point B
+54 pips

Long point C
Exit point D
+52 pips

First entry on new trend confirmation. Possible chart resistance at entry because of bottom of consolidation zone so very tight stop.
Exit when candle took out low of previous (just as in the method on the US equities thread).
Second entry on break to high after minor pullback and exit for same reason.

Times are Eastern Daylight, five hours behind UK.

I only trade FX occasionally and then only with high probability set ups, as my living is day trading US shares.

I've seen this situation quite a few times and it's profitable a lot of the time. Even when it's not, a tight stop keeps the losers small.

Basically it's a simple reversal which I stay with till I'm knocked out.
Richard
Click to expand...
 
If I understand the method correctly, he didn't need to be all that confident, because he would have used a small stop, so the risk was small.

However, presumably, by the time point A was reached, it seems more likely than not that this is an uptrend, rather than a resumption of the previous downtrend. i.e. that little movement down was just a pullback.


I don't know if there were any fundamental (or fundamental-ish) clues around on the day and time in question, but (again, as I understand it), Mr Charts has seen this pattern a large number of times, and in his judgement, it was a high probability trade.



I've only been paper trading this method so far, as my funds were already pretty well committed by the time I started reading this. However, I believe the same principle could also work over longer time-frames, although I know that Mr C's equity trades of this nature are only over short time-frames and always closed the same day.
I hope to try it out over short and long time-frames (I know that overnight is always a risk, but there we are).
 
Think of the entire initial move down (prior to entry) as a continuous down trend, proceeding with a pullback. After the pullback pivot, the contract tries to resume its downtrend, but fails to make a lower low. So, effectively, we've got the formation of a double-bottom. A break of the high of the pivot signals an entry and then you can use Richard's traditional trailing stop methodology.

The second entry was based on his method on the U.S. equities section. You've got a series bars making higher highs and higher lows (starting to sound familiar?). This is the exact same setup as the U.S. equities setup, which indicates the presence of a strong buying pressure. Thus, after a minor pullback, you can take an entry with a trailing stop as the opposite end of the previous candle.

Not sure if it's possible to read level 2 on forex - I've tried the market depth window for forex, but found it a complete mess, unlike with U.S. stocks.

Amit


spreader_legger said:
Dear Mr. Charts,

Would really appreciate further elucidation behind your entry decision at point A.
How were you so confident for instance, that this was the beginning of a new trend?


Many thanks.
Click to expand...
 
amit1986 said:
Not sure if it's possible to read level 2 on forex - I've tried the market depth window for forex, but found it a complete mess, unlike with U.S. stocks.
Click to expand...
Hi Amit,
Good post - clear explanation!
I know sweet FA about FX, but my guess is that you were looking at the spot market rather than the futures? The latter might be easier. Then again . . .
Tim.
 
Tim,

You are correct - I was indeed looking at the spot market and not the futures. I suppose level 2 on the forex futures market may be a little easier on the eyes as there are active market makers. Too many retail traders on the spot forex market makes it very difficult to see who could be influencing price behavior.

Amit

timsk said:
Hi Amit,
Good post - clear explanation!
I know sweet FA about FX, but my guess is that you were looking at the spot market rather than the futures? The latter might be easier. Then again . . .
Tim.
Click to expand...
 
Picked up 34 pips using exactly this pattern on cable this morning.
I had to exit all the position when the low took out the previous low because I had to go out and didn't have time to take a screenshot either.
Worth a look on the 5 min candles, imho, and then comparing with the image in post #3.
Richard
 
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