When do I take ID trade or not?

Hi All,

I was talking to a fellow Courtney's Forex Trader yesterday and she was saying that she was doubled whammied until she blurred. And of course, I can relate to that feeling.

Though my own experience and discussion with Courtney, I realised that Double Whammies can be prevented by finding reasons NOT to trade. And thank goodness to that I have safely avoided 2 Double Whammies :) One being yesterday GBP/USD Inside Day trade. If I have taken it, I would be sitting on a Double Whammy (DW) today.

So just how to avoid DW? Courtney taught me 3 things but it is NOT a confirmed thing ok? And in a ideal situation, all the 3 indications are to be positive before we take the ID.

1. Look at ADX. There should be a upward trend. Why? When there is a trend, most likely it will not close back where it started.
2. Look at the Average True Range (ATR) 40 indicator. Ideally, there should be an increase of volatility than yesterday and shouldn't be the lowest of the past 40 days of ATR40.
3. Lastly, Look at the opening and closing positions of the bar. Are they forming a near perfect T or t inverted T? if they are, then most likely the next day will form the same thing. This is an indication of a Sideway market where neither the bull or bear are winning. Hence, less likely the next day will close higher or lower.

Ok. There you go. With these tips, I hope that you can really avoid DW as much as possible. :)

Max

The Day that I broke Rules on 2 pairs at one go... So does my Mentor & Ms P!

Hi All,

yesterday night was an exciting night :D I saw the effects of our excellent analysis of charts going into full swing :) Power of Weekly SSD!

Pretty amazing after 5 weeks of Bull Rally for GBP, Weekly SSD once again predicated ahead of time that a major trend change will come :) And Courtney sees that now it's the time to break the rule as Principle always (ALWAYS) wins the rule :) Hence, despite EUR/USD's ADX is trending down, he went in an order of TA! :)

This was then I realised that how powerful and important Weekly SSD is when comes to when to break the rule! :D And of course, I copied his trade though 10pips later :( as I took notice of his TA only at night. But better late than never ^^. Anyway, thanks to Ms P, I was highlighted a Weekly SSD for USD/CAD. Similar situation as EUR/USD, ADX is trending down, but I went in an order of TA since there is a higher high and a higher low.

To round up, I think this week will be a rather exciting week where we are seeing a revival of USD, I will be shorting AUD, EUR/USD, EUR/JPY, GBP and longing CAD :) Let's keep our fingers crossed!

Side Note: Ms P confessed that she broke some rule too... this is what she said,"Today mark the first day i broke rule without Courtney's approval!" haha so funny ;)

Your Friend,
Max

Cashflow Warrior Academy - "Everyone Never Work Again!"

CoFlex Enhancement

Hi All,

Today we are going to talk about CoFlex Risk Management and application of Weekly SSD on CoFlex.

As Ash from KL brought up a very good point in the KL Course, that if CoFlex is a trend following technique, how does ADX Filter applies in this technique? The following is what Courtney said. He said. Basically CoFlex works when the 2 lines crosses. TEMA is on top we go LONG and if Moving Average is on top we go short.

However, using this technique will create lots of paper cut. Hence, he looks at ADX Filter to increase or decrease the number of contracts for Risk Management. If ADX Filter trends down, he will put in a smaller position. If ADX Filter trends up, he will put in a normal position. (ADX measures how strong is the trend)

And regarding about Weekly SSD, when it happens, Courtney is always looking for reasons to go inline with the Weekly SSD direction. CoFlex is always one of the main reason in there to make it happen. Oh he also added he might break the rule of Reversal Bar to go inline with the Weekly SSD direction even if there is no confirmed trend :)

Hope this helps.

Your Friend,
Max