Normally, out of all thsoe pairs, I would have picked one or two of them to trade. I felt challenged by a comment someone made so I wanted to prove the comment wrong. The comment was made to the effect that the ichimoku cloud only looks behind. I thought, "Fine! I'll put the smallest of margins on every LT--MT currency pair, and I'll run the pips up like I have never done before. It just shows the forward looking virtue of the ichimoku cloud. BTW, I still maintain it is nothing personal against the indiviidual that set that. I just like to prove it with my actions.
There is never an event that determines my trading decisions. It is only has I peer at things through the eyes of my methodology, which consists of its backbone--the ichimoku cloud and my S&R's. Where the pairs are headed made the determination for me to enter those positions. As an example, even though it may seem off the wall, the EUR/AUD is headed to 1.7525, which is going to net me +3,167 pips, and the GBP/AUD is headed to 2.1654, which is going to net +3,918 pips. Having said that, you got to love counting pips, because the margin is so microscopic, that it's embarassing to tell.
Some determinations that were made concerning these pairs were the extreme OB conditions on the monthly charts for the cable and euro crosses with the aussie. The AUD/USD and the NZD/USD entered through the top of the weekly cloud, which means they are going to hit the bottom of the cloud.
In essence, the comment that was made could not have been made at a more opportune time for these positions.
Usually, when I refer to MT--LT trades, I am looking at implications on the weekly and monthly charts.
The answer is "yes", I did forsee the moves that were going to happen, because most of the moves had already begun the day before when I entered.
My favorite 2 pairs to trade are the GBP/USD and the GBP/JPY. I naturally gravitate towards thsoe 2. If there is no setup, then I go shopping. I just look at all the other 26 pairs and start making decisions. As far as TF's are concerned, the tenure of the trade will be based on the obviations of whatever TF the setup was on.
As an example, I took the GBP/CAD position out at around 1.6097, knowing from that point we were going to get a correction. I also entered a short trade (with full margin, btw) at that point. This is because of OB conditions on the daily and a loss of momentum. Based on that, it tells me, according to ichimoku that price is headed to 1.5865, the tenken, and in all likelihood, the kijun at 1.5601. The bounce we saw on the pair came as a result of meeting up with my WS1 at 1.5958. I might take the trade out at 1.5881, just because that is my MP. I have to be careful, because the weekly and monthly are still showing signs of plenty of upward gravitivity.
As a general rule, I don't like the EUR/CHF or the EUR/GBP, and other slower moving pairs. You, as an accountant and one that has a strong inclination towards numbers can probably tell me why they con't move as fast, as well as why the GBP/JPY does not move as fast as it used to. There are mathematical interrelationships, which makes those statements a fact. I'm just picking your brain to see if you know why.
(I don't know why, but I got a request to fill out the URL for this post, which is why it is showing below.)
http://www.trade2win.com/boards/newreply.php?do=newreply&p=1176702
Hi Paul
thanks for answering my questions
when you sent out your forecast on post 143 on 30 June, was there some event that triggered your forecast - or was this something you do at the end of each month, quarter
Also, MT, LT - is this days, weeks months, and did you foresee the sudden moves that occurred the following day - or was that fortuitous
Finally, how do you select which of these pairs to trade - I know that you put on small positions on all of them and ran up 3000 + pips, but in practice how do you determine which pairs to trade
thanks
