The euro has no grid break. It appears to be in a retrace from the northbound direction it had been headed in for the last few days. It appears to be resuming its southbound trend.
The pound was in a heavy southbound trend and took a moderately major reversal ( though it wasn't much when compared to the whole southbound movement). It has now been stagnant in a two grid channel for the last few days.
The Graveyard gbp/jpy is pretty much mirroring the pound
The ej eur/jpy is mirroring the pound and the graveyard
The cheese usd/chf is of course doing the opposite of the euro as any good inverse pair should, except it is pretty stagnant for the last few days remaining rangebound.
And finally the roo aud/usd was on a strong downtrend, reversed sharply and now seems to be resuming its southbound journey again.
I am doing a lot of lower light confirmations, a trick of Johns before I enter any trade on the higher time frames. Successful forex traders adapt to the markets they are given and volatility requires that your forex trading strategy be taken down a bit to the lower lights, at least for confirmation. All of the best forex trading strategies will do this.
Trade safe,
Dr. Bob
Dr. Bobs, Daily FX Analysis. Every Day at a little after p6m Eastern Time, Dr. Bob will give his free Daily FX alert/signals to all. All free forex alerts are based on the Daily Chart of the Alpari MT4 platform. It is perfect for those who do not wish to put in the time with forex analysis to design the own trade system. Please note that all of Dr. Bob's analysis is based on either the Sharak Grid Trade System, The Big Breakfast, The Silver Bullet, or Hanna's Autumn Strategy.
Friday, September 30, 2011
Thursday, September 29, 2011
The Morning Review
The EURO is straddling right now to the down side, but we shall see if it can hold that straddle till the open of the 6 am candle.
The trend seems to be holding strongly to the South, with a retracement in place that seems to be in a position of weakening. I would be more comfortable with a South side trade right now in anticipation of the north side trend renewing.
The GBP/USD looks very much the same as the EURO except that it has broken a very strong trend line and could possibly be reversing to the north side. If this happens, the EURO might follow as the normal correlation of the two pairs normally has the EURO following the Pound. Either direction could be a risk as the strong trend is south, with an equally strong reversal making northbound look not so bad
The Graveyard GBP/JPY is almost identical to the Pound.
The EUR/JPY also looks the same as the Pound. Be aware that in a few of these pairs it looks like some pretty strong Waltzes are forming.
The AUD/USD, the Roo took a big drop in the past few days. It is recovering now. Its trend is strongly to the down side but that is skewed by the recent drops. I am hesitant to call a direction on this one. Call it by ear, or better yet, stand and watch.
The CHF/USD, The Cheese is on a very strong northward climb but seems to have taken a very serious retracement. Be a bit cautious till it determines where it wants to go.
L8tr G8trs,
Dr. Bob
PS Stick to your winning forex strategies, Sharaks Grid Trades, Johns Big Breakfast, and Hanna's Autumn, follow the rules, and you will have more successful forex trades.
The trend seems to be holding strongly to the South, with a retracement in place that seems to be in a position of weakening. I would be more comfortable with a South side trade right now in anticipation of the north side trend renewing.
The GBP/USD looks very much the same as the EURO except that it has broken a very strong trend line and could possibly be reversing to the north side. If this happens, the EURO might follow as the normal correlation of the two pairs normally has the EURO following the Pound. Either direction could be a risk as the strong trend is south, with an equally strong reversal making northbound look not so bad
The Graveyard GBP/JPY is almost identical to the Pound.
The EUR/JPY also looks the same as the Pound. Be aware that in a few of these pairs it looks like some pretty strong Waltzes are forming.
The AUD/USD, the Roo took a big drop in the past few days. It is recovering now. Its trend is strongly to the down side but that is skewed by the recent drops. I am hesitant to call a direction on this one. Call it by ear, or better yet, stand and watch.
The CHF/USD, The Cheese is on a very strong northward climb but seems to have taken a very serious retracement. Be a bit cautious till it determines where it wants to go.
L8tr G8trs,
Dr. Bob
PS Stick to your winning forex strategies, Sharaks Grid Trades, Johns Big Breakfast, and Hanna's Autumn, follow the rules, and you will have more successful forex trades.
Hello Vampires, Sharak is ill.
Hello Vampires,
On Tuesday, Sharak seemed extremely tired. So much so in fact that he ended his show about a half hour early.
Being that he is 96 years old, we do not take anything carelessly and we had him at the doctors on Wednesday.
They say he is in remarkable shape for a man of his age, that he does not seem a day over 70, which made me laugh, but I guess that is a good thing. I would much rather be 70 than 96, lol.
Normally, his trading time is from 1:30 am eastern to 10:00 am, and then, unless the market is going crazy, he goes to sleep. Because of doing the webinars, he is up till at least 1:00 pm, and it is just to much for him.
He has said that he does want to come back to teaching, even if it means his retiring from trading, which is probably a good thing. At his age, he no longer has the reflexes mental or physical to trade, but there is no better teacher in the world than our own Rabbi Sharak Zoor.
He will be resting for no less than two weeks and I will fill in and do his shows. Hanna and I were his disciples, and we helped him to put into words many of the ideosyncracies of the fabulous Sharaks Grid Trade System. So who better to fill in for him as he recovers
We all wish him a speedy recovery, and the best of health for many years to come.
Dr. Bob
On Tuesday, Sharak seemed extremely tired. So much so in fact that he ended his show about a half hour early.
Being that he is 96 years old, we do not take anything carelessly and we had him at the doctors on Wednesday.
They say he is in remarkable shape for a man of his age, that he does not seem a day over 70, which made me laugh, but I guess that is a good thing. I would much rather be 70 than 96, lol.
Normally, his trading time is from 1:30 am eastern to 10:00 am, and then, unless the market is going crazy, he goes to sleep. Because of doing the webinars, he is up till at least 1:00 pm, and it is just to much for him.
He has said that he does want to come back to teaching, even if it means his retiring from trading, which is probably a good thing. At his age, he no longer has the reflexes mental or physical to trade, but there is no better teacher in the world than our own Rabbi Sharak Zoor.
He will be resting for no less than two weeks and I will fill in and do his shows. Hanna and I were his disciples, and we helped him to put into words many of the ideosyncracies of the fabulous Sharaks Grid Trade System. So who better to fill in for him as he recovers
We all wish him a speedy recovery, and the best of health for many years to come.
Dr. Bob
Tuesday, September 27, 2011
Well about 16 hours ago we had a break!
16 hours ago on the Euro we had a grid break that just completed a little bit ago yielding 50 pips for those that took it.
The Roo also had a 16 hour old grid break that also just hit target yielding an additional 60 pips.
Even though it was basically a quiet night, it still gave us 110 pips in total if you had the patience to wait.
This is where the benefit of stoploss and limit orders really come into play.
Once your entry is established, it is very easy to place a stop order and a profit limit order on the trade. You do this so that you will not have to baby sit the darn thing for possibly 16 or 24 hours, yuk!
If you wish to enter with more than one lot so that you have the ability to scale out of the trades rather than exit the entire position at first target, you may enter more than one trade on each position, but don't forget the fifo rule. The trades must be removed in the order in which they were placed.
If you try to remove the trades in any other order your MT4 platform will not let you.
It is a good idea to exit at least half the position at first target. Myself, lately, I have been exiting about 80% of the position at first target. You could at this point enter a trailing stop on the rest of the lottage left in the trade. The trail could start at the number of pips to break even, but I would increase the trail as I gather more pips. Rember, you don't want to choke the trade, only give it enough breathing room so that it can stretch its legs a little bit without getting stopped out.
To Trade Smart is to Trade Safe,
Regards,
Dr. Bob
The Roo also had a 16 hour old grid break that also just hit target yielding an additional 60 pips.
Even though it was basically a quiet night, it still gave us 110 pips in total if you had the patience to wait.
This is where the benefit of stoploss and limit orders really come into play.
Once your entry is established, it is very easy to place a stop order and a profit limit order on the trade. You do this so that you will not have to baby sit the darn thing for possibly 16 or 24 hours, yuk!
If you wish to enter with more than one lot so that you have the ability to scale out of the trades rather than exit the entire position at first target, you may enter more than one trade on each position, but don't forget the fifo rule. The trades must be removed in the order in which they were placed.
If you try to remove the trades in any other order your MT4 platform will not let you.
It is a good idea to exit at least half the position at first target. Myself, lately, I have been exiting about 80% of the position at first target. You could at this point enter a trailing stop on the rest of the lottage left in the trade. The trail could start at the number of pips to break even, but I would increase the trail as I gather more pips. Rember, you don't want to choke the trade, only give it enough breathing room so that it can stretch its legs a little bit without getting stopped out.
To Trade Smart is to Trade Safe,
Regards,
Dr. Bob
Monday, September 26, 2011
Online Forex Trading Strategies, Which is Best?
In my mind when I ponder which is the greatest online forex tyrading strategies, two pop right into my head. One of them is of course the Vampire Trading Networks ground breaking strategy, the Big Breakfast. This is undoubtedly the best of the technical trade systems that I have found. If you are a trader that likes forex technical indicators, then without a doubt, this is for you. You get to use everything from Bollinger Bands to Parabolic Sars. You even get to use some of the Vampire Trading Networks own original indicators such as the Crystal Trend Indicator, The Forsight, and the Trend weight. It is a Forex indicator traders dream.
If you are more price action motivated, then without a doubt, Sharaks Grid Trade Strategy is probably the most accurate and consistent of the price action trade strategies that I have ever seen. It is also incredibly easy to learn, and can be mastered in a month if you put your mind to it. (This and the Classic are my favorites).
There is of course Hanna's Autumn, and Waltz strategies which are also bulls eye winners.
I have even seen Guido and Mitch fooling with the Itchi Moku Cloud, (but when I look at it all I can see is the Kaki Laki Mess), but what the hek, they seem to do well with it.
Later Gators,
Regards from,
Dr. Bob
If you are more price action motivated, then without a doubt, Sharaks Grid Trade Strategy is probably the most accurate and consistent of the price action trade strategies that I have ever seen. It is also incredibly easy to learn, and can be mastered in a month if you put your mind to it. (This and the Classic are my favorites).
There is of course Hanna's Autumn, and Waltz strategies which are also bulls eye winners.
I have even seen Guido and Mitch fooling with the Itchi Moku Cloud, (but when I look at it all I can see is the Kaki Laki Mess), but what the hek, they seem to do well with it.
Later Gators,
Regards from,
Dr. Bob
Tuesday, September 20, 2011
Christine's Original Letter on RSI
Hiya Vampires,
This is the letter that Christine originally wrote about the RSI, that I answered in the previous post.
Vamps, keep the questions and comments coming as that is what makes for a lively interesting and informative Blog.
Dr. Bob
her it is:
This is the letter that Christine originally wrote about the RSI, that I answered in the previous post.
Vamps, keep the questions and comments coming as that is what makes for a lively interesting and informative Blog.
Dr. Bob
her it is:
Hi Ya Doc!!
For some reason I can't log in to the blog to leave a comment.
So I'm emailing my question about the RSI. I set the RSI period to 2. What would you suggest I set my upper and lower horizontal lines to?? The level settings.
Thank You for sharing your insight with us
Christine
PS Try setting the period to 4. Some people like that Better.
Dr. Bob
Hello Chrissy, just got your E mail
Hello Chris,
I am going to copy and past your email onto the blog here so others can see the answer. Great question by the way Chris. I should have listed the upper and lower RSI parameters in the first post. RSI is a very popular Forex indicator, and even a few Vampire Forex Strategies use it as a base.
RSI is a momentum indicator that compares the intensity of recent winning trades to losing trades. Its goal is very similar to a stochastic indicator in the fact that it tries to give you insight into when a foreign exchange currency pair is either over bought or over sold. If it is overbought, it is only a matter of time till it goes back down. If it is oversold, the converse is true, and it is only a matter of time before, it comes back up.
By the way for you equity or commodity traders, the RSI Indicator works just fine.
Chris, remember, it can stay overbought or oversold for a long time! The danger of using the RSI Indicator is in the fact that many people will try to jump the gun, and as soon as the indicator gets into the overbought/sold position, they enter a trade in expectation of the reversal.
It is for this reason that we have the horizontal lines. As far as the parameters, there are two that I am experimenting with. I have been using the 20 and the 80, and the 30 and the 70. The 30 and the 70 are a bit more conservative and the 20 and the 80 is slightly more for the aggressive trader.
For those of you interested in day trading forex, I would probably go with the conservative setting and leave the aggressive settings for the longer term trade so it will have time to reach fruition.
Chris, try both of these, and experiment on your own, and let me know how it works out.
FYI, I am sure John will have the comments section fixed soon. I am thinking that I would like to have it as mor of a Forex Forum, where the comments and posts just stream, one after the other.
Dr. Bob
I am going to copy and past your email onto the blog here so others can see the answer. Great question by the way Chris. I should have listed the upper and lower RSI parameters in the first post. RSI is a very popular Forex indicator, and even a few Vampire Forex Strategies use it as a base.
RSI is a momentum indicator that compares the intensity of recent winning trades to losing trades. Its goal is very similar to a stochastic indicator in the fact that it tries to give you insight into when a foreign exchange currency pair is either over bought or over sold. If it is overbought, it is only a matter of time till it goes back down. If it is oversold, the converse is true, and it is only a matter of time before, it comes back up.
By the way for you equity or commodity traders, the RSI Indicator works just fine.
Chris, remember, it can stay overbought or oversold for a long time! The danger of using the RSI Indicator is in the fact that many people will try to jump the gun, and as soon as the indicator gets into the overbought/sold position, they enter a trade in expectation of the reversal.
It is for this reason that we have the horizontal lines. As far as the parameters, there are two that I am experimenting with. I have been using the 20 and the 80, and the 30 and the 70. The 30 and the 70 are a bit more conservative and the 20 and the 80 is slightly more for the aggressive trader.
For those of you interested in day trading forex, I would probably go with the conservative setting and leave the aggressive settings for the longer term trade so it will have time to reach fruition.
Chris, try both of these, and experiment on your own, and let me know how it works out.
FYI, I am sure John will have the comments section fixed soon. I am thinking that I would like to have it as mor of a Forex Forum, where the comments and posts just stream, one after the other.
Dr. Bob
Friday, September 16, 2011
Give a Try to the RSI
Over the years, the RSI Forex Trading Indicator has proven itself to be very useful, especially in the decision as to whether or not to stay in a Forex Trade or to leave the trade.
Personally, I think the standard setting that is used which is a time period of 14 is basically useless. In fact in my first forays with RSI, I put the entire indicator to the side, and no longer used it in any of my Forex Trading Strategies.
Now I don't remember if it was John McgLaughlin or Dave Davis who told me to try experimenting with the settings, but I did. I believe it was John. Dave started us using the Parabolic Sars, if my memory holds true.
Man oh man, the whole world of RSI changed. I used it as a confirmation indicator to the early days of Johns Big Breakfast, and it dramatically changed my results. I had far more winning forex trades. My success rate went way up, and I was well on my way to being a successful forex trader.
The setting I seem to prefer is the 2 instead of the 14.
It is an easy indicator to use, it's pretty much just like a stochastic. If it goes under the top horizontal line, you go short, and if it goes over the bottom horizontal line, you go long.
Play around with it yourselves and let me know how it goes.
dR.B
Thursday, September 15, 2011
New Channels appear to be holding
Good Morning Vampires!
It's almost 3AM and I am checking the charts looking for Price Action motivated movements that will guide us in our never ending quest for forex wealth.
Other than a grid break on the pound about a day ago that just reached first target for a very clean 60 pips, I don't see much. I went over every chart of the six majors that we trade, and no grid breaks yet.
If you want to go down to the lower charts, I am sure you will find something, but in general, it is to hard on the body to check charts every 15 minutes, regardless of profitability. Anyway, we have found time after time, the money seems to be made on the four hours chart.
It doesn't really matter whether your forex trade strategy involves technical indicators, or price action indicators, or even forex fundamentals.
Higher charts filter out the noise that we find on the lower charts and give a more accurate indication on the direction that the foreign currency pair is taking.
The perfect chart for a combination of profitablility and ease on the body (it allows a bit of sleep), seems to be the four hour, which in back and forward testing seems to provide more successful trades than any other.
I guess for the grid trade strategy, we have found the sweet spot.
The perfect chart for a combination of profitablility and ease on the body (it allows a bit of sleep), seems to be the four hour, which in back and forward testing seems to provide more successful trades than any other.
I guess for the grid trade strategy, we have found the sweet spot.
dR.B
Wednesday, September 14, 2011
SHARAKS PRELIMINARY NUMBERS FOR THE WEEK, TO BE REVISED
.88699 and.87966 cheese
1.03726 amd 1.02772 roo
123.220 and 122.005 graveyard 1/2's
105.554 and 104.873 ej
1.58659 and 1.57923 pound
1.36878 and 1.35763 euro 1/2's
9/13/11
These are Sharaks latest numbers. He has said that he will revise them more on wednesday, thursday, and friday. Honing them in for accuracy so he will be ready to trade them, both this week and in full force next week.
dR.B
1.03726 amd 1.02772 roo
123.220 and 122.005 graveyard 1/2's
105.554 and 104.873 ej
1.58659 and 1.57923 pound
1.36878 and 1.35763 euro 1/2's
9/13/11
These are Sharaks latest numbers. He has said that he will revise them more on wednesday, thursday, and friday. Honing them in for accuracy so he will be ready to trade them, both this week and in full force next week.
dR.B
HELLO DR. RON!
I agree, Sharaks Grid Trade Strategy is about the best thing that there is out there as far as overall profit and accuracy of trades.
I absolutely love how it makes use of price action trades, instead of the normal indicator based trades that so many Forex Traders base their Forex Trade systems on.
To Sharak, Hanna, and I, price action is the only indicator for a novice Forex Trader to use. It is the most difficult to learn, but it never gets old, or out of style, or stops working.
Forex Indicators can be a great thing. In fact, my very own favorite trade The Classic, is based on two indicators, the VTN Engine, and the Parabolic sars.
Forex Trading Systems based on price action will teach you how to trade. You can always add indicators later.
dR.B
P.S. Sharak would like you in tommorrows class if you are free at 11. He would like to go over the trade rules you sent him. He is impressed with your ambition.
P.P.S Hanna and I both loved your website on the Alpacas, very well put together. Really nice stuff. If you would like to talk with the Rabbi about it for five minutes, it's ok with me.
Tuesday, September 13, 2011
Online Forex Trading is the Perfect Vehicle for the Grid Trade Strategy During the Summer Months
Those of us who are consistently trading Sharaks Grid Trade Strategy have been rewarded with a nicely profitable August. Scoring Winning Forex Trades in the summer can be a chanllenge to say the least.
Now, I will tell you, I did not make a whole lot this summer as I have cut my lot size down to minimums so the low volumes that are quite normally associated with the summer months did not slaughter me with whipsaw trades.
During the summer all Forex Trade Strategies that I have seen lose a great portion of their accuracy as the volumes of traders and money in the foreign currency market drops. This can cause violent price swings, sometimes with no apparent reason.
It can also cause forex news trades to behave in quite an erratic fashion.
Don't fret, Septembers is here.
Volumes will be back soon.
dR.B
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