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Announcements

This site is currently inactive as I have decided to move away from exclusively trading Forex in 2010 and as such will not be taking on new coaching clients in this area.

 



I have resumed my focus on coaching as a stock market mentor where I run a success guaranteed stock trading mentorship program

 



Additionally, you can now get access to what I consider to be the best stock options daily trade alert service.

 



Of course, I am biased and with a success rate fluctuating between 68.2% and 72.4% it is hard not to be biased.

 



If you do want to follow along with what I am doing every day you can get access to my daily stock market report 

 

 

You can read the step-by-step Bollinger Band Trading Strategy Guide - this is my main active trading strategy



Until next time


happy trading 


Mr Phil Newton or on LinkedIn Phil Newton trader

Cable Strat.............

Phil Newton's picture
I trade the Cable exclusively on both an intraday & swing basis. It suits both my trading style & more importantly my psycho make up!.....any strategy/method developed to an individuals style will always have a degree of discretion attached to it. My 'take' & reading of a markets positioning will be entirely different to yours & decisions are made according to an individuals experience & trade expectations. However, sometimes another traders basic ingredients can be utilised & tweaked to offer maybe a secondary focus on a particular instrument....and of course, can often be improved upon!! :) anyway, I've included below an outline of a strat I use on a daily basis to trade the Cable....I have used it for some time & it has been re-jigged/pulled apart & re-built & remains a "work in progress" (as any flexible mkt strat should be).....it's very simple & straightforward (like my good self) and if it offers assistance to anyone in helping to put together the bones of their own trading method, then all good & well............. :D INTRADAY STRAT FOR THE CABLE I thought it might be helpful if I outlined my strategy for trading the cable within a ranging market, prior to initiating my swing/positional moves. This strat can be used in two ways. 1) As a stand alone method of clipping pips off the intraday trend moving away from support/resistance or pattern trades (1-2-3’s….2b’s..flags/pennants…consolidation points) 2) As an accompanyment to obtaining an early entry into a possible swing move, by scaling/pyramiding. There will be periods when the currencies simply ‘range’ or trade within tight, directionless channels, specially after a large move up or down the ladder. These natural breathing points can often lead to confusing & ocassional contrary chart set ups. Price oscillates between s/r on the med term frames, and the length of these consolidations are both difficult to predict & sometimes impossible to guage the next swing away. Many of my longer term swing moves evolve from this strat, and once again, by using your preferred T/A can offer a safe, early kick start to a move thru the 00 (century) numbers. I trade off the 1 & 5 minute frames using price as my primary guage on entering/exiting these moves……with MACD as a secondary confirmer (where appropriate) to assist in entry/exit or alternatively, warning of potentail entry traps!.....I trade early morning Asian/Euro s&r pops & range breakouts (when setting up) & the usual moves off s&r - focusing on the key prime & half prime levels (00's - 50's) If you wish, a slow stochastics or macd confirmer can be added (if you use these indicators)…..macd (8/12/8) settings work ok, as do the 15/3/3 slow stoch settings. Pos/neg divergence plays can often assist in cementing a trade off clear s/r clips. I look for clear price signals off the above set ups to highlight potential trades. As with most chart signals, it can result in several possible entries per day…..or just the occasional 1 or 2……it’s entirely dependant on price action & the general rhythm of the market on that particular day…….as I trade off the fast(er) frames, my initial (emergency) stop is placed at 10-12 pip loss clips. The way I personally ‘play’ these moves are by entering with multiple lots & scaling out at pre – defined profit targets. For instance : off an overnight channel break, I look for next level s/r clips & scale out at 10…15….20….etc pips, leaving a couple lots on the table with a b/e (trailing) stop, looking for a swing move away. Next lot will be banked at 2nd level s&r & so on....If price happens to then penetrate a round number & the overall trend/momentum sets up, I’ll simply add back in & trail the move. The benefit of this is that by the time price moves away & approaches one of my favoured round number/decade area’s, I’m already in the move & simply waiting for price to confirm a particular direction before compounding/scaling further…….if cable simply range trades & bounces off s/r, then at least I’ve profited whilst waiting for a swing move to develop. You don’t have to use this method to trade multi lots…….it can be used to play intraday moves up & down the ladder with a simple 1 lot stake, or used as part of a multi strat method to gain a foot on the ladder in preparation for a swing move! Once again, it’s a no fuss, uncomplicated means of either snatching pips off an intraday play, or using as part of the positional strat to hitch an early ride on a (possible) larger move up & down the ladder!…….due to the set ups, it won’t offer multi day entries! On avg it highlights 2 – 3 good, tradeable opps during the morning session on a consistant basis. Cable is extremely rangey/volatile & suits my personality, but this strat will also work on most of the popular majors!! Other indicators in which I observe in my normal daily research include the main Pivot area, the 3 day Swing Bias & prev day’s H/L/C……you’ll often observe price reacting off a solid area of previous congestion ie: prev intraday closes….high’s/lows. The thing to bear in mind with currencies are, they rarely ‘range’ for too long. Such is the high level of liquidity & entry/exit positioning from swing/position traders….key reaction area’s, specially around the century/half century pitch (consistant area’s of prime support & resistance) highlight good, tradeable intraday opportunities!! [/url][/b]