Daily Forex Trading

[achooblessyou]

As we've discussed privately, this is a good combo-trade for the time around Frankie Open.

Another that I would suggest is worth looking at for Buy Zone, is GN.

I also looked at combining CZ / BZ with a Central Line trade set-up (Surfing The Alien) as GN is generally as mad as a box of frogs and when it moves, it moves!!!

Ahh this is what I was thinking! when price sets up around the daily open, it is battling for position long or short and as the markets open the range gets wider with more volume and eventually moves away. sort of like what happened today. that central line gets a lot of action. I guess this is what tramlines are huh?

Wink.jpg

Im looking over GN now and, I have to say it is a complete monster. Stops would have to be big and positions small... I like the look of it!

[LeMercenaire]

Ahh this is what I was thinking! when price sets up around the daily open, it is battling for position long or short and as the markets open the range gets wider with more volume and eventually moves away. sort of like what happened today. that central line gets a lot of action. I guess this is what tramlines are huh?

Wink.jpg

Im looking over GN now and, I have to say it is a complete monster. Stops would have to be big and positions small... I like the look of it!

No, I think you'll find you want to keep stops tight. Re-enter if it goes again. The whole point with GN, is that it picks a direction and then GOES. If you get it wrong, close early and as I say, either re-enter, or jump on board the new opposite direction.

It's picking your entry method that counts. Hence my idea of trading a center line (and I actually added a line half-way above and another half-way below that center line just for stacking). As you're trading the cross of a line, you don't need the big stops.

Another way that works with GN (either on its own or as a c/w), is a simple moving 7-bar box.

Adding S+D to GN is a major component in either technique.

[LeMercenaire]

Didn't trade this this morning as busy with the DAX (or not busy as it turned out, lol) but it gives you a small inkling of how you can Surf The Alien with GN.


I've just used the Buy Zone indi as a ''for instance'', as it gives the Open and a border zone. However, my original concept was to run a zone from the early CZ and have mid-line and border from that.

GBPNZDM5asuberdetailSurfingTheAlien18thDec17.png (47.25 KiB) Viewed 5846 times

GBPNZDM15asSurfingTheAlienDetail18thDec17.png (40.61 KiB) Viewed 5846 times

As you can see from the H1, price was trapped in a narrow range between a couple of S+D zones and so I wouldn't have expected any big moves necessarily, however don't be in too much of a hurry to dismiss this kind of set-up, as it can in fact be very profitable, as price bounces and rebounds back-and-forward across our trigger line(s).

GBPNZDH1asSurfingTheAlienEG18thDec17.png (36.54 KiB) Viewed 5846 times

[achooblessyou]

Hey Lem, Thanks for the Info on GN! I was a bit confused when you were taking about buyzone trades on GN, but come to find out my broker starts its day 2 hours earlier than you (and the chart looks much different!) I understand now what you mean... I won't necessarily be placing a line at the open, but just using a CZ as I should lol.

[LeMercenaire]

Hey Lem, Thanks for the Info on GN! I was a bit confused when you were taking about buyzone trades on GN, but come to find out my broker starts its day 2 hours earlier than you (and the chart looks much different!) I understand now what you mean... I won't necessarily be placing a line at the open, but just using a CZ as I should lol.

Ha ha - yeah, as I said, I just threw that on. The original concept was the mid-line (and half-way points of each side of that mid-way line) through the CZ.

That stuff above was just to give a quick visual representation of how GN moves back and forward across a line at any given time.

[achooblessyou]

Hey Lem, Thanks for the Info on GN! I was a bit confused when you were taking about buyzone trades on GN, but come to find out my broker starts its day 2 hours earlier than you (and the chart looks much different!) I understand now what you mean... I won't necessarily be placing a line at the open, but just using a CZ as I should lol.

Ha ha - yeah, as I said, I just threw that on. The original concept was the mid-line (and half-way points of each side of that mid-way line) through the CZ.

That stuff above was just to give a quick visual representation of how GN moves back and forward across a line at any given time.

The spreads are absolutely killer. I don't have much experience trading with spreads as large as 5 pips, but it does move sooooooo much! a risky gold mine.... lol

[MightyOne]

The spreads are absolutely killer. I don't have much experience trading with spreads as large as 5 pips, but it does move sooooooo much! a risky gold mine.... lol

Consider the spread as a percentage of average movement eg the spread is 5 and the hourly ATR is 26 so the spread is 5/26 or 19.2%

Which is better?
a. 1 pip spread and 5 pip ATR (20% spread)
b. 40 pip spread and 200 pip ATR (20% spread)

a. 5 pips = $100, spread = 100(1/5) or $20
b. 200 pips = $100, spread = 100(40/200) or $20

It is tradable as long as the spread is equal to or less than 24%

[achooblessyou]

The spreads are absolutely killer. I don't have much experience trading with spreads as large as 5 pips, but it does move sooooooo much! a risky gold mine.... lol

Consider the spread as a percentage of average movement eg the spread is 5 and the hourly ATR is 26 so the spread is 5/26 or 19.2%

Which is better?
a. 1 pip spread and 5 pip ATR (20% spread)
b. 40 pip spread and 200 pip ATR (20% spread)

a. 5 pips = $100, spread = 100(1/5) or $20
b. 200 pips = $100, spread = 100(40/200) or $20

It is tradable as long as the spread is equal to or less than 24%

Of course! That makes total sense. All I am saying is I’m used to putting my stop relatively close on other pairs such as EU and GU as their ADRs are close to 1/2 of GN.

[Mira]

The spreads are absolutely killer. I don't have much experience trading with spreads as large as 5 pips, but it does move sooooooo much! a risky gold mine.... lol

Consider the spread as a percentage of average movement eg the spread is 5 and the hourly ATR is 26 so the spread is 5/26 or 19.2%

Which is better?
a. 1 pip spread and 5 pip ATR (20% spread)
b. 40 pip spread and 200 pip ATR (20% spread)

a. 5 pips = $100, spread = 100(1/5) or $20
b. 200 pips = $100, spread = 100(40/200) or $20

It is tradable as long as the spread is equal to or less than 24%

Of course! That makes total sense. All I am saying is I’m used to putting my stop relatively close on other pairs such as EU and GU as their ADRs are close to 1/2 of GN.

Yep and this is why your stop loss should be based on the ATR too (i.e. 2 lines).

[achooblessyou]

I didn’t have time to trade it (busy elsewhere and on mobile) but I just took a gander at GN. It absolutely exploded out of its CZ!