Finding Triggers

[Trader Question]

Thanks for all of the information below - I will look very closely at all of the Mogs that you mentioned.
At this point, I am feeling that I have a pretty solid understanding of basic P&L, but would like to have a better understanding of the direction that Charlie Drummond is pursuing with these new indicators. With the Mogs done on a daily basis, it seems like the best way to more fully understand his thought processes and to get better insight into how to trade successfully.

R.J.

[pldot]

=== Basically it is an extension of the envelope system to include bands above and below the envelope, and thus a better visual grasp of overbought and oversold conditions on multiple timeframes.

[Trader Question]

I'm happy to hear that bond trading is going well - I stick mainly with the Euro at this point, as it seems to be the market that I am most in sync with. I have been quite amazed by how well the Drummond levels work with the Euro. The other day, for example, price went within one tick of nearby resistance and then bounced off. I am sure that you are used to that kind of precision by now, but it is quite incredible to see that as a new P&Ler.

R.J.

[pldot]

===I've been trading some currencies lately and I like the trending characteristics as well…

[Trader Question]

One of the main questions that I have been having is how to find a trigger on the lower time frame in order to bring myself into the trade. Several times I have bought in nearby daily support, only to have price move to further out daily support. I suppose that being in better touch with the flow would have helped considerably. But I also wonder if there is some type of objective trigger that would be helpful in a situation like that so that you aren't trying to catch a falling dagger, as they say.

R.J.

[pldot]

===yes you must definitely use a LTP trigger because if you just take a position when your focus time period hits resistance or support, no matter how well that is defined, you can never really tell if it will stop there or continue. The trick is to get an early trigger so you don't have to wait until everyone and their aunt sees it. One of the best is to watch the LTP hit an exhaust and then watch price move inside the envelope, with all of the attending elements, nearby's moving sideways, distance between dot and nearby closing, etc. There are a lot of examples in the Mogs of this. Also, monitoring the difference between tick chart and ltp chart can sometimes be helpful.

[Trader Question]

I have been looking at a couple of methods to trigger buys in nearby support or sells in nearby resistance, so that I get in once a minor trend starts on a lower time frame, such as a 5 minute or 15 minute chart.

R.J.

[pldot]

===you don't have top wait that long, until the ltp trend starts. But, it has to stop, and move sideways at least.

[Trader Question]

That way, I am still buying in nearby daily support, but waiting until price has started to move up on a lower time frame. It seems to increase the odds of profitable trades.

R.J.

[pldot]

==Well, if it just starts to move might be OK. Say if it blocks on the LTP