Comments on: Trading Background http://www.forexspirit.com Colin McGinley's journey of forex trading by a thousand cuts Tue, 24 Jan 2012 06:42:32 +0000 hourly 1 http://wordpress.org/?v= By: Colin McGinley http://www.forexspirit.com/trading-background/comment-page-1/#comment-3 Colin McGinley Sat, 23 Sep 2006 15:28:40 +0000 http://www.forexspirit.com/?page_id=53#comment-3 There are generally two types of grid adjustments that make the most sense to use: either a half grid move or a full grid move. The size of your grid should generally be between 400 and 600 pips. My current grid extremes are at 1.25 and 1.29 (for EUR-USD), with the median line at 1.27. This grid has capped movement over the last couple of months rather well. A half grid move would mean moving up or down 200 pips, while a full grid move would result in a 400 pip change. You generally only want to consider changing your grid once price moves outside the extremes of your grid. You also need the underlying fundamentals of the currency pairs to point to continued movement in the direction of the breakout. The strength of the underlying fundamentals/storyline will generally dictate if it is a half grid or full grid adjustment that should be made. Having something else beyond just the breakout itself determining when you more your grid will help you avoid falling prey to false breakouts. At its heart, the grid is just a framework that helps you form opinions abort the current strength and weaknesses of the currencies that make up the forex pair. Use a grid that makes the most sense to you; that helps you make decisions and take trades without being over geared. There are generally two types of grid adjustments that make the most sense to use: either a half grid move or a full grid move. The size of your grid should generally be between 400 and 600 pips. My current grid extremes are at 1.25 and 1.29 (for EUR-USD), with the median line at 1.27. This grid has capped movement over the last couple of months rather well. A half grid move would mean moving up or down 200 pips, while a full grid move would result in a 400 pip change.

You generally only want to consider changing your grid once price moves outside the extremes of your grid. You also need the underlying fundamentals of the currency pairs to point to continued movement in the direction of the breakout. The strength of the underlying fundamentals/storyline will generally dictate if it is a half grid or full grid adjustment that should be made.

Having something else beyond just the breakout itself determining when you more your grid will help you avoid falling prey to false breakouts.

At its heart, the grid is just a framework that helps you form opinions abort the current strength and weaknesses of the currencies that make up the forex pair. Use a grid that makes the most sense to you; that helps you make decisions and take trades without being over geared.

]]> By: Martin http://www.forexspirit.com/trading-background/comment-page-1/#comment-2 Martin Sat, 23 Sep 2006 01:49:10 +0000 http://www.forexspirit.com/?page_id=53#comment-2 Hi, Colin... I have been trading the 4x1 system for about 5 weeks. I have been ok, small profit and trading very carefully... I have a question....the eur/$ had gone below my support line, and come back into my first quarter, now is about at 50% line...My question is...when do you change your support lines... Do you use them until a big break or chang then some ?? I thank you and good trading... I have read every thing here in your website... Martin Hi, Colin…
I have been trading the 4×1 system for about 5 weeks. I have been ok, small profit and trading very carefully…
I have a question….the eur/$ had gone below my support line, and come back into my first quarter, now is about at 50% line…My question is…when do you change your support lines…
Do you use them until a big break or chang then some ??
I thank you and good trading…
I have read every thing here in your website…
Martin

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