Forex Help Forum Archive for 04/27/2009

GVI Forex john 22:19 GMT April 27, 2009
Subject: fast or slow MA
Al -loved your video. Anybody who hasn't seen it check it out.

I have two questions:

1) Assume I am using a 10 period simple moving average (either way) to trade against, is there a simple rule about where I should put my stop in?

2) Have you ever considered varying the number of periods to find a line that fits a given market more closely? In other words, maybe an 8 period moving average traces this market closely and a 14 day moving averaged worked better in the last one, or is it better always to stick to a 10 period rule?

TIA John

lkwd jj 20:22 GMT April 27, 2009
Subject: trading ideas Reply   
anybody have the link to wikipedia forex trading strategies? i cant find the one that was at the xx85-xx15 levels with a ma cross and i dont remember which period the avg was set for.

Montréal Taro 15:18 GMT April 27, 2009
Subject: timeframe Reply   
tn
"is to conceive a trade in one time frame and then execute it in a different one altogether"

What do you mean exactly by it, using a timeframe for direction and a shorter one for entry would qualify for your comment ?

To use the same timeframe, what would you suggest to determine direction and then entry ?

GL & GT

Toronto tn 13:48 GMT April 27, 2009
Subject: Special Topic: How Do You Figure Out What Type Of Trader You Are
Sorry Jay, I don't mean to sound critical, but I would just make a small point about the term "trader profile," which to my mind may be misleading. Profile insofar as it implies a sort of personality or psychological dimension is imho the incorrect approach.

All the questions you posed are not so much a function of a given person's personality --which may not be what you meant at all in the first place, but it sort of is what the word "profile" implies-- but rather a direct function of the timeframe that one is trading. In other words, those questions you posed are directly answered by reference to the timeframe one executes a given trade in, rather than one's underlying psychological make-up (which is too intangible a concept to really be of any use).

One thing I recall from the book I mentioned in my earlier post here, Farley talks about the primary mistake that inexperienced traders make is to conceive a trade in one time frame and then execute it in a different one altogether. There's a term for this phenomenon but I can't recall it at the moment. Of course he was talking about equities, but in forex because of the structure of the market, this problem of muddling up timeframes is even more acute.

Anyway, just my two cents worth in this interesting discussion.