I just got a question about using Strignano’s Forex Signals sent to me by email… and I thought the answer could help a bunch of you. Therefore, I decided to post the question and answer here on the blog. Hope this helps!
——————————- The Question
My friend and I are trying Tom’s signals and was wondering if you take “all” of his signals or are you looking at certain points? Another question i have is I got a sell signal for the Eur/Usd
at 7:43cst, at the time the Euro was trading higher at 14590 level or so so if the price is higher than shorting it at 14573 do you take this signal?
Any helpful advice would be appreciated.
————————————– The Answer
No, I don’t take all the signals. While all the signals are “valid”, you need to use the levels (daily range, pivots, support, resistance and trend reactionary numbers), to determine where the signal is given. These levels on your charts are like a map. Use them to first locate where price action is, and then determine if you want to take the signal or wait to see what it does at one of those important levels.
SIDE NOTE: You need to make sure the amount of trades fits your money management as well. The way I trade, I can have 3 trades open at a time. I use an EA called Forex Trading Troll I had created to help me manage the trades (move stop loss up, take off partial profits at important levels) while I’m not looking at the charts. If I see I no longer have risk in a trade (my stop has been moved up to breakeven), then I’m free to open another trade. So, if 7 signals came out at the same time, I would not be able to take them all the way I manage my money.
If you haven’t done so already, go into the Download section and download Carlos’ Rules. He doesn’t take signals when they are within a certain distance of a major level. So, let’s say you get a short signal 5 pips above a Trend Reactionary Number. He would not take that trade and wait to see what price does at the TRN. If it bounces off, you could take it long instead, especially if it is a head fake. (If you haven’t done so already, watch the Head Fake and Trend Reactionary Numbers videos in the Training section I think.)
On the other hand, Tom is more aggressive. He would probably take the signal hoping it would break the TRN and explode downward. But he would be watching it closely, and if it bounced off the TRN he would reverse his position.
I prefer to trade TRN breaks or bounces, so I would probably wait until the the signals was confirmed by a break of the level. Or, if it bounced I would play the bounce. (If you are reading this on Sept 15. and have the TRN’s… check out the nice bounce off the TRN on the GBPUSD. On second thought, here is a snapshot).
See the bounce off the TRN? Then I used the Fibo tool, and it stalled at the 38.2 Fibo Level. This might be a Catapult 80 setup to go long up towards the upper TRN. (I think you can download the Catapult 80 pdf signing up on the Strignano Forex Signals site.) Or price could go back down to test the lower TRN again. But the point is, you need to be flexible and proactive to want price is showing you. The levels are the advantage you need to pay attention at the right times.
Look at it this way. If you are looking to trade from one TRN to the next down, what type of signal would you like to see? Short! If you were trading from one TRN to the next up… you’d like to see a long signal. Zoom out on your charts a little and you’ll see how price tends to go from one TRN to another. Figure out which way it is moving and then give greater weight to signals that get you going in that direction. This should give some perspective to the signals.
Anyway, you need to come up with your rules to follow, or adopt Tom’s or Carlos’ rules. This really is a robust way to trade and you have options. But the good thing is the levels and signals give you an opportunity to make a decision at a point when price is most likely to move. This gives you an advantage over other traders without these levels.
OK… you second question.
I think this was asked on this mornings webinar. (By the way, you should really make time to attend these.) Even though I’ve been in a while, I am always attending the Tuesday morning webinar. I always pick up something.
Anyway, if I understand you correctly, you are asking if you should take the signal if price has retraced from where the signal was given. Well, like I said above… you first want to see where the signal was given in comparison to the levels. If you decide it is a signal you want to get into… then take it at the better price! Tom said today… “If you were selling your car for $1,000 and someone came along and wanted to give you $1,500, you wouldn’t turn him down. You wouldn’t say no, and wait for a buyer at the lower price, would you?” I’m paraphrasing of course.
If the signal is one you want to get in to, and price has retraced to give you a better entry, then consider yourself lucky. (I’ve been in trading rooms where experienced traders get a signal and the actually WAIT until price retraces to get into the trade to at least cover the spread). Nice little tip for you. The point is, just because price retraces back a little does not mean the signal is not valid. Just make sure to watch your levels.
Hope this helps. Keep in mind… I am still learning as well! But I’m having the best time trading Forex that I’ve even had.
By the way, there are some really cool things coming. Just got an email from Tom about the A.I. “robot” that trades the signals for you, a head fake indicator and something special for the traders with the highest package. This is a great time to be involved with this Forex service. (I feel a price increase coming soon).
Any questions? Just leave a comment below…
