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Post by traderAllen on Sept 13, 2014 19:21:02 GMT -5
I'll be busy tomorrow which is Sunday that's normally when I try to do videos and such so I tried to throw together a video today. This video if I was able to get the point across is about how to determine your trade direction quick and simple.It doesn't matter whether you're using FXA or FPAS or any other method of scalping trading in the direction of the long-term and intermediate terms will give you the best probability of writing those trades to profit. This doesn't mean you can't occasionally take a countertrend trade. This trade those with more caution and smaller position size.
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Post by caseyar on Sept 14, 2014 17:41:18 GMT -5
I'm still not quite sure how you use the different time frames to come to a conclusion about market direction.
I understand that when all three long-term (daily, weekly, monthly) charts are not in alignment, that you use a smaller position size.
If the three long-term charts aren't in alignment, but 2 of the three are, do you go with the direction of the 2 that are in alignment to determine your bias?
What about sideways markets on the long term charts?
Where do the intermediate term charts come in during bias selection?
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Post by traderAllen on Sept 19, 2014 21:53:12 GMT -5
Your trade direction is always the daily chart. That is the direction you want trade. You're only going to place those trades when intermediate-term charts are aligned with the daily.The weekly and the monthly charts are for confirmation in the daily trend and for position sizing.If you're going to try this method correctly your stops are going to be wider than what would be considered normal. Therefore your position sizing is very important. If the monthly and weekly do not line up with the daily. Your trade risk and account risk are To 25 to 50%. If you have the weekly increase your position by 25% and if you have the monthly as well then you're going to train 100% of your trade risk and account risk.
The long-term charts should be scrunched up to show as much data as what your provider allows. Therefore you seldom if ever was see a sideways market.
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