Never Lose Again

[TheRumpledOne]

DO YOUR HOMEWORK

Do Your Homework:
Start a T.A. Routine

March 2009
By Brian Dolan


Whenever I speak at Traders' Expos, or more frequently during my weekly Market Call webinar at Forex.com, I'm asked about very basic technical analysis questions. Queries such as "What chart timeframe is the best to watch?" and "What moving averages work best?" are fairly typical. These questions come from both experienced traders and relative newcomers, so it strikes me that a bigger issue exists here than meets the eye.

If I had to pin it down, I suggest that many traders are pursuing an unstructured approach to technical analysis - looking at certain indicators some of the time, searching for the "right" moving averages or seeking the best momentum study - to improve trading outcomes. But that sounds like the perennial search for a technical "silver bullet" that does not exist. It also reeks of putting the cart (trade strategy) before the horse (technicals), as in "I'm going to trade the euro/U.S. dollar, what do the technicals say?"

Instead, I propose that a dedicated, systematic routine of technical analysis is a better approach to both identifying potential trade opportunities, or setups, and successfully managing open positions. Though the routine I outline here is centered on foreign exchange trading, the utility of a routine applies to all markets.

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Do you do your homework?

[deeforex]

TRO,

Do you have a template of the "big picture" of that you can post. There's so many indicators, I don't even know where to begin to create the chart you have above.

Thanks!
dee

[MightyOne]

Here is the picture I posted 2 bars before the chart started breaking sideways.

Take note of the channel that was drawn before a channel could even be drawn



Here is the result of the channel:



Simply by measuring time, price, and momentum based on numbers.

Here is the same channel moving the top to the high after it started breaking sideways:

[dragon33]

Here is the picture I posted 2 bars before the chart started breaking sideways.

Take note of the channel that was drawn before a channel could even be drawn



Here is the result of the channel:



Simply by measuring time, price, and momentum based on numbers.

Here is the same channel moving the top to the high after it started breaking sideways:

lol you are god

Your zero concept is just amazing. Today i hit my first 5 zeros after the decimal ever.

I feel i am rich

[reganbw]

Is there a template that generates the blue numbers under the candles?

[MightyOne]

I really don't know how I am going to explain this...

Price is never trending, it is always oscillating around a degree relative to the time frame.

Super long term charts will oscillate around a 5-10 degree angle where as super short term charts may peak out at 75 degrees, but usually travel along something around 50-60 degrees.

Have you noticed that long term trend lines slope close to horizontal where as short term trend lines are near vertical?

Are you aware that you do not have to wait to draw a trend line?

Are you aware that a chart repeats the same speeds over and over again
as the same forces that had an impact on price before have an impact on the chart again?

When you see a violent move up you should be aware that that is not current speed of the market, but a short term oscillation swinging around longer term oscillation.

Maybe I am not making any sense...

Instead of thinking of a long term chart in terms of time frame think of long term charts in terms of degrees.

Remembering that a small time frame trends around 50-60 degrees you might say to your self:

"I am trading 55 degrees from the lows and highs"


Keeping in mind the speeds that are short term vs long term and the speeds you are interested in trading you will arrive at a chart with only 2 speeds:

[MightyOne]

Simple guesstimation made easy using TRO LR AUTO:

[stationmichal]

Several persons have try to explain the "zero lines", but none get an "A" (including TRO.... LOL) from teacher "MO". He seems to be a good trader, but may not know how to teach. (':idea:') With the new "speed of channel" , I may be able to put a "lot of zeros" into my account (assume that the teacher tell me his secret.)(':D')

[TheRumpledOne]

Is there a template that generates the blue numbers under the candles?

TRO_MO_NUMBERS is the DONATIONAL indicator that plots those numbers.

See the quote in my profiles for details.

[deeforex]

I think that MO might be so smart that it's hard for him to grasp how us mere mortals think. MO can't possibly understand what we do not know or cannot see. LOL (If TRO can't see it, how can I?)

MO, I tried to replicate your channels (before the trend) and I'm not sure what you were snapping the lines off of. Was it off the most recent highest momentum candle? If yes, what other point did you use to get the proper angle? Are you just saying "make your channel 50-60 degrees"?

[edit: looking at your other chart about TRO's LR channels, is the other channel just double the degrees of the LR channel?]

I noticed in your previous charts that your trades followed your channel grids beautifully!