Stormy and the EUR/USD
Hi all!
Well today has been an interesting week, with recent choppy activity broken up by a strong breakout on Monday following the USD weakening badly on poor Wallstreet performance and underlying uncertainty in the market that saw the USD bears trample the bulls.
This I viewed as a fantastic test for the Stormy indicator, with a two week period of mixed market action, so I put it to the test, trading a virtual account based on the Stormy alone, and the results were pleasing to say the least, resulting in just shy of +280 pips from 5 trades on the EURUSD alone (I did not trade it on other pairs). Here is the EUR/USD chart as of the time of writing, and indications where I placed trades:
Well today has been an interesting week, with recent choppy activity broken up by a strong breakout on Monday following the USD weakening badly on poor Wallstreet performance and underlying uncertainty in the market that saw the USD bears trample the bulls.
This I viewed as a fantastic test for the Stormy indicator, with a two week period of mixed market action, so I put it to the test, trading a virtual account based on the Stormy alone, and the results were pleasing to say the least, resulting in just shy of +280 pips from 5 trades on the EURUSD alone (I did not trade it on other pairs). Here is the EUR/USD chart as of the time of writing, and indications where I placed trades:
EUR/USD 1H
You can see, the idea of the clouds is to indicate where prices will be contained, so I sold the top of the clouds through last week while we were in a consolidation pattern with choppy price action, before the clouds darkened (blue area), indicating something is brewing and be ready for a strong move, stoppping me selling the next touch of the top of the cloud, and instead looking for a breakout. You can see the strong move above the cloud, for well over 100 pips before the clouds formed again yesterday and I sold the top again for another good profit.
So encouraging, and much better than my live results this week which have been mixed at best. I am still testing Stormy, it needs to prove to me that I can trust it live, but this was a great step in the right direction.
The latest version can be downloaded here, a basic tutorial is here, and a discussion thread is still open here.
Happy trading!
You can see, the idea of the clouds is to indicate where prices will be contained, so I sold the top of the clouds through last week while we were in a consolidation pattern with choppy price action, before the clouds darkened (blue area), indicating something is brewing and be ready for a strong move, stoppping me selling the next touch of the top of the cloud, and instead looking for a breakout. You can see the strong move above the cloud, for well over 100 pips before the clouds formed again yesterday and I sold the top again for another good profit.
So encouraging, and much better than my live results this week which have been mixed at best. I am still testing Stormy, it needs to prove to me that I can trust it live, but this was a great step in the right direction.
The latest version can be downloaded here, a basic tutorial is here, and a discussion thread is still open here.
Happy trading!
This entry was posted
on Thursday, January 26, 2006 at 9:23:00 AM.
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Posted byThursday, January 26, 2006 12:50:00 PM
Something error on your blog,u posted same article 3 times. :p
Posted by
Thursday, January 26, 2006 1:19:00 PM
Thank phil ... fixed now :)
Posted by
Friday, January 27, 2006 8:56:00 PM
hey just want to tell you, you have a great blog and very helpfull
Keep going
BTW what free book you recomand for trendline trading? Something easy to understand because my primary language is not english:)
Thanks
Posted by
Friday, January 27, 2006 11:37:00 PM
Thanks for the kind words ...
nimic doar tes: That is over the period of 16/11/05 - 25/01/06 ... so a little over two months, you can see the trades in the history of live calls link.
In terms of free e-books, have a look at http://www.savefile.com/projects.php?pid=433483 .. which is phildunn's collection. There is a nice short little e-book on trend trading and the ADX which I have, email me if you want it (akuma_me@yahoo.com).
Posted by
Friday, January 27, 2006 11:41:00 PM
oops looks like that collection is not there any more .. ok try these instead:
http://www.trading-naked.com/Articles_and_Reprints.htm
http://forex-arabia.com/body.aspx?dest=othercat/education.asp&ht=5500
Plenty of reading there.
Posted by
Saturday, January 28, 2006 8:10:00 AM
New link for free download forex ebooks. :)
http://www.savefile.com/projects/438490
Posted by
Saturday, January 28, 2006 11:22:00 AM
Akuma i send you an email
Can you send me e-book on trend trading and the ADX?
Thanks
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