Buy Sell Zone on FOREX

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4x=0
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Postby 4x=0 » Fri May 18, 2007 7:33 am

alichambers wrote:Here's a problem I'm struggling with: how do you decide when to sell?

If the trade is trending (ie. higher highs, higher lows), it is easier - wait until the trend ends and sell.

However, I often see a 5min candle enter the BuyZone by a pip or two - to trigger a trade - then reverse quickly to hit the SL.

A few of these in a row and the losses mount up.

In this situation, what can be done?


perhaps the the solution is to buy and hold until you make up your initial losses and then some. If the pair ranges enough every day, why not?

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Postby TheRumpledOne » Fri May 18, 2007 8:10 am

I noticed something... use Sunday's buy zone for a WEEKLY BIAS.

If the price is below Sunday's open, look to go short each day.

If the price is above Sunday's open, look to go long each day.

Just look at the charts and you'll see it too!!
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

Please do NOT PM me with trading or coding questions, post them in a thread.

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Postby alichambers » Fri May 18, 2007 8:35 am

Hi 4x=0,

If you're nr London give me a shout - you can PM me here beforehand.

The problem I'm facing with selling is this, and I'll use a screenshot you posted earlier:



Say the LONG BuyZone is at 121.34 and you're taking 5 pips as limit profit. Your long order was triggered at 121.34 just before 21:00, but there was a sharp reversal at around 121.36.

a) Your limit profit was not hit
b) The reversal would take you back down to your SL

It could be said that you would manually sell to exit the position at B after going long, just as the price reversed down through the BuyZone at 121.34 - but I have seen many times the price then go back up into the BuyZone - and you can end up getting whipsawed around the 121.34 level if you buy and sell.

So while the BUY point is easy to see, the sell isn't - and this is where I am losing money (demo money of course).

Alex

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Postby bh4313003 » Fri May 18, 2007 10:15 am

TheRumpledOne wrote:I noticed something... use Sunday's buy zone for a WEEKLY BIAS.

If the price is below Sunday's open, look to go short each day.

If the price is above Sunday's open, look to go long each day.

Just look at the charts and you'll see it too!!


tro do you mean to just go long at the open if above sunday open or take only buyzone trades if above sundays open and sellzone trades if below sunday open

i will go and look as well

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Postby 4x=0 » Fri May 18, 2007 2:34 pm

bh: both of these are true

alichambers: thx maybe next time.





I'm about to reinstall windows and reinstall all my vital software. Then I'll prepare for the coming week and design the excel buy zone log.

I have been using the open time displayed on my levelII but last night it read an open for gbp/usd that was way off than where I actually did plot the zones (2am my time according to forexmarkethours.com.) After I reinstall I'm going to work out all these bugs and set a plan for actually trading the buy zone. a routine that is.

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Postby alichambers » Fri May 18, 2007 2:43 pm

A trading plan sounds good.

And thanks for the annotations - they have helped me a lot. Maybe we should all annotate charts more - entry and exists - as it is a great way to learn.

I am writing a brief backtester to show me BuyZones for different FX - and to see what comes out best - ie. SL and limit profit ratios.

I use Amibroker, so if anyone wants the code I can supply. ES and TS are too expensive. AB is $100 on-off and has a good scripting language.

Cheers, AC

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Postby 4x=0 » Fri May 18, 2007 2:55 pm

alichambers wrote:I am writing a brief backtester to show me BuyZones for different FX - and to see what comes out best - ie. SL and limit profit ratios.



This should be interesting. My bet is that -7 still wins out. The limit profit ratio will be most interesting. :smt074

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Postby alichambers » Fri May 18, 2007 3:03 pm

I will post my results.

Give me a bit of time to sort out...

I reckon that placing OCO orders ahead of time (ie. buy when reached point x, and sell if reaches points y and z) are the way to go for me. I get bored very quickly and get jumpy, so manually sitting by the screen with 1 min candles waiting for prices to reach buyzones, etc... is a bit much!

AC

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Postby 4x=0 » Sun May 20, 2007 1:55 am

my images will now be in 22inch widescreen format.


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Postby TheRumpledOne » Sun May 20, 2007 2:31 am

Intuition tells me 4x=0 might become the first BuyZone millionaire.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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