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MightyOne
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Postby MightyOne » Mon Oct 05, 2009 2:14 pm

FX-JEDI,

The area where you marked "momentum reduced" was not momentum.

If the candle labeled with a white 4 was not momentum then the candle you marked could not be momentum.

This is why you have to compare to recent non-momentum and then compare the possible momentum candle to real momentum of the past.

The dotted white boxes were mirrors of the open to close connections between momentum and hugging candles.

X is used to mark the candle that is being acted upon.

Image

All of the candles in the purple boxes are non-momentum

White hands are momentum bars.

Image

8 hour chart

Not every move has momentum...
Last edited by MightyOne on Mon Oct 05, 2009 2:47 pm, edited 1 time in total.

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prochargedmopar
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Postby prochargedmopar » Mon Oct 05, 2009 2:27 pm

MightyOne wrote:
pablo101 wrote:
MightyOne wrote:
The study of momentum via closed candles lets you know how long it should take price to move your way.

For every hour of momentum you should get two hours of price movement.

When the candle hugging momentum closes into the momentum candle's real body then the momentum is reduced by the close of the hugging candle.
Likewise, when the hugging candle extends further after momentum, the momentum is increased by the close of the hugging candle.

If the momentum is increased by 1 candle then you get 4 hours of price movement.


Whoa, tricky to understand. Any chance of pics? :shock:


Image


Holy skittery jittery Bat Man,
I didn't notice the #'s till I got home.
You've got to be kidding me, right.
#1BODY in direction of profit #2INCREASE lot size Obsessively
My Losses cause me Great Laughter!
Trading Bible here> therumpledone/the-ideas-that-i-trade-by-t3256/page1670

aliassmith
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Postby aliassmith » Mon Oct 05, 2009 3:02 pm

GBP/USD > 1.5938 by 11am

buy at $25 per option
made $1400 on 19 options

Not sure exactlly how it works yet but it looks interesting.
Trade Your Way as Long as It Makes Money!

frang0nve
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Postby frang0nve » Mon Oct 05, 2009 3:38 pm

aliassmith wrote:GBP/USD > 1.5938 by 11am

buy at $25 per option
made $1400 on 19 options

Not sure exactlly how it works yet but it looks interesting.


Hello,

I believe 11am means 11am EST. Is that correct?

Please. Can you tell us when was opened this trade? Which was your broker?

Cheers

Francisco

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MightyOne
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Postby MightyOne » Mon Oct 05, 2009 3:47 pm

aliassmith wrote:GBP/USD > 1.5938 by 11am

buy at $25 per option
made $1400 on 19 options

Not sure exactlly how it works yet but it looks interesting.


If you use the closest strike as a reference then you will always know which action to take when it comes time to enter a trade.

Enter 2 strikes higher: More risk, but profits from smaller moves
Enter 3 strikes higher: Less risk, but profits from larger moves

3: 1.5998 <---Long this strike at <10 (buy low)
2: 1.5978 <---Long this strike at <20 (long on low numbers)
1: 1.5958
--------------3's boundary for longs---1.5948 (2's boundary for shorts)
0: 1.5938 <---Current price between 1.5948 & 1.5928
--------------3's boundary for shorts---1.5928 (2's boundary for longs)
1: 1.5918
2: 1.5898 <---Short this strike at >80 (short on high numbers)
3: 1.5878 <---Short this strike at >90 (sell high)

GBP/USD > 1.5978 by 11am:

If close > 1.5978 by 11am option settles at 100
If close < 1.5978 by 11am option settles at 0

If long the 1.5978 strike at 20 and price settles at 100 then profit = 80.
If short the 1.5898 strike at 80 and price settles at 0 then profit = 80.

When long, the price you pay + commission = risk
When short, 100 - Price you pay + commission = risk

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Postby aliassmith » Mon Oct 05, 2009 4:03 pm

MightyOne wrote:
aliassmith wrote:GBP/USD > 1.5938 by 11am

buy at $25 per option
made $1400 on 19 options

Not sure exactlly how it works yet but it looks interesting.


If you use the closest strike as a reference then you will always know which action to take when it comes time to enter a trade.

Enter 2 strikes higher: More risk, but profits from smaller moves
Enter 3 strikes higher: Less risk, but profits from larger moves

3: 1.5998 <---Long this strike at <10 (buy low)
2: 1.5978 <---Long this strike at <20 (long on low numbers)
1: 1.5958
--------------3's boundary for longs---1.5948 (2's boundary for shorts)
0: 1.5938 <---Current price between 1.5948 & 1.5928
--------------3's boundary for shorts---1.5928 (2's boundary for longs)
1: 1.5918
2: 1.5898 <---Short this strike at >80 (short on high numbers)
3: 1.5878 <---Short this strike at >90 (sell high)

GBP/USD > 1.5978 by 11am:

If close > 1.5978 by 11am option settles at 100
If close < 1.5978 by 11am option settles at 0

If long the 1.5978 strike at 20 and price settles at 100 then profit = 80.
If short the 1.5898 strike at 80 and price settles at 0 then profit = 80.

When long, the price you pay + commission = risk
When short, 100 - Price you pay + commission = risk


MO,

I was looking at it a bit more. You could take strike prices out further
for less risk. You still have the opportunity to exit the trade when you
want.

learning Nadex platform is different than spot.

edit.... almost forgot, spread is about $7/option
11am does mean EST by my platform.
broker is nadex and trade was open around 9:30am
Trade Your Way as Long as It Makes Money!

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MightyOne
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Postby MightyOne » Mon Oct 05, 2009 5:23 pm

aliassmith wrote:
MightyOne wrote:
aliassmith wrote:GBP/USD > 1.5938 by 11am

buy at $25 per option
made $1400 on 19 options

Not sure exactlly how it works yet but it looks interesting.


If you use the closest strike as a reference then you will always know which action to take when it comes time to enter a trade.

Enter 2 strikes higher: More risk, but profits from smaller moves
Enter 3 strikes higher: Less risk, but profits from larger moves

3: 1.5998 <---Long this strike at <10 (buy low)
2: 1.5978 <---Long this strike at <20 (long on low numbers)
1: 1.5958
--------------3's boundary for longs---1.5948 (2's boundary for shorts)
0: 1.5938 <---Current price between 1.5948 & 1.5928
--------------3's boundary for shorts---1.5928 (2's boundary for longs)
1: 1.5918
2: 1.5898 <---Short this strike at >80 (short on high numbers)
3: 1.5878 <---Short this strike at >90 (sell high)

GBP/USD > 1.5978 by 11am:

If close > 1.5978 by 11am option settles at 100
If close < 1.5978 by 11am option settles at 0

If long the 1.5978 strike at 20 and price settles at 100 then profit = 80.
If short the 1.5898 strike at 80 and price settles at 0 then profit = 80.

When long, the price you pay + commission = risk
When short, 100 - Price you pay + commission = risk


MO,

I was looking at it a bit more. You could take strike prices out further
for less risk. You still have the opportunity to exit the trade when you
want.

learning Nadex platform is different than spot.

edit.... almost forgot, spread is about $7/option


I noticed the high spread :shock:

Enter at your price or better.

If the market continues to rise then it will be at the lower end of the next higher strike and the strikes 2 and 3 higher should be available for the price you wish to pay.

If you can get an option 2 strikes higher for <15 then go with that one
or
Just purchase the option 3 strikes higher for <10
or
wait.

6 hour bars or greater + weekly binary = way to go

frang0nve
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Postby frang0nve » Tue Oct 06, 2009 4:04 am

aliassmith wrote:edit.... almost forgot, spread is about $7/option
11am does mean EST by my platform.
broker is nadex and trade was open around 9:30am


Thanks for your help!

If I'm not wrong Nadex only accepts US residents :roll:
Cheers

Francisco

aliassmith
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Postby aliassmith » Tue Oct 06, 2009 12:40 pm

MightyOne wrote:
aliassmith wrote:
MightyOne wrote:
aliassmith wrote:GBP/USD > 1.5938 by 11am

buy at $25 per option
made $1400 on 19 options

Not sure exactlly how it works yet but it looks interesting.


If you use the closest strike as a reference then you will always know which action to take when it comes time to enter a trade.

Enter 2 strikes higher: More risk, but profits from smaller moves
Enter 3 strikes higher: Less risk, but profits from larger moves

3: 1.5998 <---Long this strike at <10 (buy low)
2: 1.5978 <---Long this strike at <20 (long on low numbers)
1: 1.5958
--------------3's boundary for longs---1.5948 (2's boundary for shorts)
0: 1.5938 <---Current price between 1.5948 & 1.5928
--------------3's boundary for shorts---1.5928 (2's boundary for longs)
1: 1.5918
2: 1.5898 <---Short this strike at >80 (short on high numbers)
3: 1.5878 <---Short this strike at >90 (sell high)

GBP/USD > 1.5978 by 11am:

If close > 1.5978 by 11am option settles at 100
If close < 1.5978 by 11am option settles at 0

If long the 1.5978 strike at 20 and price settles at 100 then profit = 80.
If short the 1.5898 strike at 80 and price settles at 0 then profit = 80.

When long, the price you pay + commission = risk
When short, 100 - Price you pay + commission = risk


MO,

I was looking at it a bit more. You could take strike prices out further
for less risk. You still have the opportunity to exit the trade when you
want.

learning Nadex platform is different than spot.

edit.... almost forgot, spread is about $7/option


I noticed the high spread :shock:

Enter at your price or better.

If the market continues to rise then it will be at the lower end of the next higher strike and the strikes 2 and 3 higher should be available for the price you wish to pay.

If you can get an option 2 strikes higher for <15 then go with that one
or
Just purchase the option 3 strikes higher for <10
or
wait.

6 hour bars or greater + weekly binary = way to go


Seems like it would be harder to do your 5 wins in a row each week with
those timeframes.

edit: GBP/USD > 1.5820 by 3pm EST
Sold 11 options at 82

hedge GBP/USD > 1.6000 by 3pm EST
Buy 11 options at 18
Trade Your Way as Long as It Makes Money!

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MightyOne
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Postby MightyOne » Tue Oct 06, 2009 3:19 pm

frang0nve wrote:
aliassmith wrote:edit.... almost forgot, spread is about $7/option
11am does mean EST by my platform.
broker is nadex and trade was open around 9:30am


Thanks for your help!

If I'm not wrong Nadex only accepts US residents :roll:
Cheers

Francisco


You would use IG MARKETS

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