|
MP -- it goes uphill, downhill and gets 28mpg
Back when the real VW bug was in its heyday, the above was one advertising slogan, and while Im driving a 73 Bug for shopping and fun, I really was thinking more of the ziggies.
Ive attached a chart (minus my usual spaghetti) that shows a full value (magenta) and a half value (white) Ziggy.
This kinda fun points out two things, one of which is very useful for the manual trader, and both for the equity in your account.
Notice the magenta lines --- these represent the FULL move of the ziggy for that swing (cycle, movement -- whatever !) and as the ziggy moves to complete its full cycle (use the center downside one for instance) you will note the price fell (one arrow), consolidated at support (two arrows) moved up on a viagra rush reaching resistance and finally fell, to join the end point of the MAIN downside ziggy (The MINOR ziggy moves are shown by the skinny white ziggy line.
When manual trading, following the WHITE ziggy will maximize profits while reducing drawdowns and is what I tend to do when charged up and wanting to prove to my ferret that I am indeed a great trader and a master of the time/space continuam, while the purple main ziggy will be used when my ferret is asleep and cant see what im doing and how lazy Im being.
Now, when using the FULL (purple, magenta, dusky rose -- whatever !) ziggy, PLEASE NOTICE THE DRAWDOWNS you got as the currency, once it reached that middle area, reversed back to the upside on the viagra rush --- If you had "bet the farm" at the beginning of the downside move, your brokers would probably now be using your equity to buy chicken salad sandwiches for everyone, and you would be seriously considering if you might get away with robbing a bank, simply because that which allowed you to "bet the farm" was margin, and you just wiped it out in a rush of flaming glory ! ("flaming glory" is one of those really old expresions, started in WW1 and applied to the -pilots of those stick and fabric "kites" called aereoplanes that the military flew around. Going down in "flaming glory" was obviously not a good thing if you happened to be in the center of it ---- same goes for your margin !
using the MAIN ziggy sets you up for (sometimes) a really big drawdown, and if you havent been following the rules, Barclays Bank has just inaugurated a new holiday ---- Retail Traders Chicken Salad Day !
so be aware there be two ways of trading this sucker and allow your nether regions to be well covered because there WILL come a time when the currency laughs and snickers, and then moves STRONG in the opposite direction.
Now I state it for me, and for those traders who have reached at least an "intermediate" stage in their capitalistic and greedy careers, but if one had a normal stoploss in place, GONE would be the word used concerning your equity because with almost a 2/3rds retracement back up, pretty much any logical stoploss would have been hit and your trade would be a "loss" instead of a "gain", while you would be the one yelling "stop" !
As Im so fond of saying, the ziggies work as long as you understand they aint magic --- they depend on price movement criteria to move, and sometimes that criteria will change, but if you take a trade in the direction the ziggy is telling you, you may enter early (hours early in some cases) but you HAVE entered in the right direction ! If you are using the H4 or H1, OFTEN the reversal pointed out by the ziggies and its dots WILL NOT REVERSE until midnite, EST, even if you got the dot at 8AM, EST --- before it can move, it has to go thru all the shennagins of the lower timeframes, which takes all day, BUT IT WILL MOVE IN THE DIRECTION IT SAYS ! (just dont sit there watching all day, unless you have absolutely NOTHING else to do !
Just PLEASE PLEASE PLEASE, WATCH YOUR MARGIN and dont try for the moon with a small account (dont try with a BIG one either, or you end up in the newspapers as the supreme example of what not to do, or having words like "rogue trader" attached to your resume which seriously shortens the face time you get with the ladies !)
Phooey -- i forgot the arrows, but youll get the idea.
enjoy and trade well
mp
__________________
Within the great hall at Elfinore stands a wondrous coffer, precisely four cubits square and securely latched against the outside world. Inside that repository, shut away from impertinent eyes, abides many an intriquing trading secret garnered from around the world and over the ages !
As a child, i used to watch from the darkness as the secrets were debated and annotated by the elders. No one there held a single thought of my presence -- BUT I KNOW WHERE THEY HID THE KEY !!
Last edited by mp6140; 03-02-2008 at 02:01 PM.
|