Trend Following System

chillydog · **Posted:** Sun Jul 11, 2010 1:24 pm

Vahid,

Did we not miss a short trade setup on USD/CAD 4 HR chart last week? I actually took this trade. I know candles did not quite reach the upper BB but with the double top and MACD divergence I thought it looked like a valid setup and it did work out for me.

Forexoma · **Joined:** Sat Jul 04, 2009 9:07 pm **Posts:** 1250

Hi Bill,

Yes, we did miss that trade setup. I saw it when it was too late.

chillydog · **Posted:** Tue Jul 13, 2010 2:40 pm

Vahid,

What do you think about the current 1 HR chart for GBP/AUD? That looks like a pretty good setup to me for the trend following system. Curious in what you have to say.

Forexoma · **Joined:** Sat Jul 04, 2009 9:07 pm **Posts:** 1250

chillydog wrote:

Vahid,

What do you think about the current 1 HR chart for GBP/AUD? That looks like a pretty good setup to me for the trend following system. Curious in what you have to say.

Hi Bill, It looks like a trade setup but I don't like it. If you look carefully, you will see that the second wave has not been able to form and it is only two candles. After it formed the first sell signal below the upper band, it formed the buy (continuation) signal but then it failed and went down to retest the middle band once again.

chillydog · **Posted:** Tue Jul 13, 2010 3:09 pm

Vahid wrote:

chillydog wrote:

Vahid,

What do you think about the current 1 HR chart for GBP/AUD? That looks like a pretty good setup to me for the trend following system. Curious in what you have to say.

Hi Bill, It looks like a trade setup but I don't like it. If you look carefully, you will see that the second wave has not been able to form and it is only two candles. After it formed the first sell signal below the upper band, it formed the buy (continuation) signal but then it failed and went down to retest the middle band once again.

Yes, I saw that. I know exactly what you are saying but I did not know that this would make the trade less reliable.

Thanks

Forexoma · **Joined:** Sat Jul 04, 2009 9:07 pm **Posts:** 1250

chillydog wrote:

Vahid wrote:

chillydog wrote:

Vahid,

What do you think about the current 1 HR chart for GBP/AUD? That looks like a pretty good setup to me for the trend following system. Curious in what you have to say.

Hi Bill, It looks like a trade setup but I don't like it. If you look carefully, you will see that the second wave has not been able to form and it is only two candles. After it formed the first sell signal below the upper band, it formed the buy (continuation) signal but then it failed and went down to retest the middle band once again.

Yes, I saw that. I know exactly what you are saying but I did not know that this would make the trade less reliable.

Thanks

While even the best trade setups have a level of risk and no guarantee, we'd better to ignore those that look even riskier.

zocco1980 · **Joined:** Thu Jul 08, 2010 11:59 pm **Posts:** 29

Hey, are we still thinking about going long GBP/CHF if it breaks above the 100 level on the 4-hr chart? It seems to be almost there, MACD looks good.

Thanks,
Dave

Manolo · **Joined:** Fri Apr 30, 2010 6:12 pm **Posts:** 7

What about GBPCAD H4?

zocco1980 · **Joined:** Thu Jul 08, 2010 11:59 pm **Posts:** 29

Anybody thinking about a long setup for EUR/JPY on the 4hr and daily charts? Went from the lower bollinger band to the upper bollinger band, then tested the middle band and the 61.8 level on the fib on the 4hr chart. If breaks above 100 level on the fib looks to be a pretty good trade for the trend following system. MACD on the daily chart looks pretty good. Only problem is it looks like there has already been 3 up waves on the 4hr chart, and has been trending up for a while. Anybody have any thoughts?

Thanks,
Dave

chillydog · **Posted:** Wed Jul 14, 2010 6:40 pm

zocco1980 wrote:

Anybody thinking about a long setup for EUR/JPY on the 4hr and daily charts? Went from the lower bollinger band to the upper bollinger band, then tested the middle band and the 61.8 level on the fib on the 4hr chart. If breaks above 100 level on the fib looks to be a pretty good trade for the trend following system. MACD on the daily chart looks pretty good. Only problem is it looks like there has already been 3 up waves on the 4hr chart, and has been trending up for a while. Anybody have any thoughts?

Thanks,
Dave

I won't take this trade if it forms. As you said there is already a 3 wave up trend and I don't like the MACD, it's showing divergence right now. I like the looks of the GBP/CAD if it forms as the above post mentioned.

zocco1980 · **Joined:** Thu Jul 08, 2010 11:59 pm **Posts:** 29

chillydog wrote:

zocco1980 wrote:

Anybody thinking about a long setup for EUR/JPY on the 4hr and daily charts? Went from the lower bollinger band to the upper bollinger band, then tested the middle band and the 61.8 level on the fib on the 4hr chart. If breaks above 100 level on the fib looks to be a pretty good trade for the trend following system. MACD on the daily chart looks pretty good. Only problem is it looks like there has already been 3 up waves on the 4hr chart, and has been trending up for a while. Anybody have any thoughts?

Thanks,
Dave

I won't take this trade if it forms. As you said there is already a 3 wave up trend and I don't like the MACD, it's showing divergence right now. I like the looks of the GBP/CAD if it forms as the above post mentioned.

Good point with the MACD on the 4hr chart.
Thanks

Trend Following System

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