Simple's Green Room

[Qui-Gon Kagi]

Git! Regarding the book.........I wish someone would write a book on how to bottomfish! I have gained a wealth of knowledge from reading a little over half of the "Attacking Currency Trends" book by Greg Michalowski and I am just now into the meat and potatos of the book which is the early portion of part2 "Tools and Strategies". I am just now reading the section on "Three's A Crowd" with "Trading Between the Goal Posts" on the following couple of pages. Greg spends a fair amount of time discussing fib lines/levels. He discusses in length "Moving Averages" while focusing heavily on the 100 and 200 SMA's. Everything is relative to those two moving averages. He also discusses "Trend Lines and Remembered Lines" which are very relative and very important to see and consider. And he talks about preparing for the trade and executing the trade. There's more to the second half of the book, not to mention the first half and part of the book. For someone who has not traded forex before, it's an excellent introduction to the bigger picture of the forex, for instance as it pertains to institutional and retail involvement in price action, consideration of the many hundreds of indicators out there and then a good "how to" on trading itself. I'd highly recommend reading this book before ever placing a trade. And then I'd recommend trading only paper money in a demo account until one becomes highly familiar with trading around the spread, the mechanics of trading and finding the best way to trade profitably over and over again where risk is in check and fear to a minimum because of reduced risk and increased confidence. Greg talks about this in length btw. And it's no small thing.

Now if someone would write a highly truthful and highly applicable method of bottomfishing so that the smaller moving averages could be used to reap huge harvests from locating absolute mid-term bottoms, I'd be set! The only problem I see with trading off of Gregs method of trading is that there are huge profits to be made before the price ever reaches the 100 or 200 SMA lines based on bounces and pullbacks. Maybe I'm missing something in the book or haven't gotten to the part that answers the question, but I want to find a dependable way to bottomfish. My 1 hour EUR/CHF chart below shows that there was a sweet 70 odd pips to be made trading between the two dotted 100/200 lines, as Greg speaks to, but there was twice that or 140 pips to be made where all my green arrows are from the begining of the trend at bottom of chart to the green 100MA. Because of the "Sixths" indicator and a bottomed macd on my Marketscope 2.o chart, I was able to nail the bottom this time. But the "Sixths" indi paints so I went in light and hoped for the best. Not a great way to trade even though it paid off this morning. I can see where if I'd taken a short as the price moved down through the green 100MA, I'd have potentially made 155 pips before the price moved back up through the blue MA9, but I wasn't looking at the hour chart at that moment in time and missed it.

Despite my gains, unfortunately I foolishly reentered my long position just above the red 50MA thinking that the price would move back up above the 100MA, so now I'm down 20 pips on that trade while hoping for a chance to get out with less loss. Overall I'm up only 38 pips right now despite all the green gainful arrows.

If anyone comes across a good book on bottomfishing, please let me know? LOL