DislikedI only stay out completely on interest and NFP news. If the rhythm and MACD gives a signal like today with that tail it tells me they were prepared to take it down and then something happened(news might have leaked out) that turned it around to the upside like that engulfing candle. I allways will trade the turnaround after a false breakout if it is confirmed by candle emotion.
I also entered on a retracement strategy as dicussed several times on the thread. If one has to stay out when the rhythm and MACD confirms direction just because there is news coming out then trading oppertunities will be few. My backtesting for 2 years up to Jan2007 showed +300pips per month without taking news in account. The MACD movement and signal supports the news more then not.Ignored
I have learned a lot from you and my AHA moment was coming from this thread if I have.
But I find that I can learn new thing from your posts continually. Now I know on what news I should stand out, on what news I can enter. your explanation is very helpful.
Now I have another 3 questions, could you help to answer? Thanks.
1, Now which currency pairs do you trade by 4h strategy? I remembered that you traded eurusd and gbpusd firstly, then you added usdchf and eurjpy to your watch list. But in recent mp3, I found that you usually mentioned usdjpy, usdcad, audusd but not eurjpy in my memory. Do you also trade usdjpy, usdcad and audusd? Do you not trade eurjpy any longer?
2, In your 5m stragety description, you mentioned that trader should take maximum 3 deals per day to avoid the bad overtrade emotion. Do you have similar rule to the 4h strategy?
3, I am not sure whether you missed the little question on post #12363 last week. Could you help answer it here?
In present I only trade on the eurusd, gpbusd and usdchf pairs. Because I have done all 7 years' historical H4 charts homework for this 3 pairs and now I am familiar with them.
I only take maximum 1 deal per day by 4h strategy because I only have several hours to do the trade on evening. Somtimes there is no chance to do the trade on the 3 pairs. So I also think whether I should add usdjpy and audusd pairs to my watch list for increasing some trade chances?
Could you give me some suggestion?
You always give me surprise.
Cheers
Aihua
Rhythm, Motion, Emotion and Risk Reward.