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fxgroup Sep 28, 2011 12:37pm | Post# 1

Beyond the Candles
 
Beyond the Candles

Presentation:

I'm a technical trader and this is not my method, it is a market's method. It is based on what we hear every day long:
-trade with the trade
-trade the retracements of the main trend.
This is long-live proved method and what I will explain here it is only what is works for me and the way it does !


The method.

a-Identify if the price is trendy market(up/down) on monthly and weekly charts, wait for a retracement with price action confirmation and entry on daily chart (buy at resistance and sell at support level).
b-Identify if the price is consolidating on monthly and weekly charts, wait the price to reach the top (down trend) and the bottom (up trend) and trade the consolidation in the main trend direction on daily chart.


The trading process has few rules/steps:

The market study
-the process of identifying what the price is doing: trend or range market.
-the process of identifying the support/resistance levels.

Psychology
-plan the trade-one of the most important in trading process is the trade plan, understanding what the price is doing, who is in the market control, waiting for the price to reach our levels and the emotion control.
We accept and we are taking all the responsibility for our actions as trades, entries, exits, etc.

Trading decision
-the fase when we have the confirmation by who is in the market control. we have a trading decision only if the price does what we are expecting, for all the rest of market situation…we stay out.

Entry
-only with price action confirmation to the choosen levels
-only with pending orders
-only above/bellow the first daily support/resistance level

Stop loss
-above/bellow the current swing
-above/bellow the first daily support/resistance level

Money management
-could be very different in base of our market analyse: trend/range market
-money management in trendy market: a-stop loss moved behind the last daily swing; b-stop loss moved behind the last weekly candle; c-stop loss moved behind the choosen levels (with daily entries, we are looking for monthly and weekly levels+ confluences); d-partial taking profit.
-money management in range market: a-the stop loss at break even as soon as possible: b-quickly partial profits of the most important levels from the inside of consolidation.

Risk
-all of the trades don’t have to exceed 2-3% of account’s size.
-capital preservation.

Exit
-to the support/resistance levels
-to the reverse candle/patterns
Trade’s analyse
-after every trade, we analyse it in order to learn from our own experience the positive and negative aspects of our trades.

Tools
-price action candles
-support/resistance levels
-patterns
-confluences
-trend lines
-channels
-Big Round Numbers and Round Numbers
-Fibbonacci levels.

Thread rules
-respect
-friendly environment
-no time frame lower than daily
-I lost pips and precious time with “dreams”…so no EA, lagging lines, indicators, etc.
Just a simple, clean chart with proper attitude is the best way to start being profitable !

Disclaimer
-the purpose of this thread is trading education/ experience to high quality level
-every trader is responsible for his own actions.

Thank you
fxgroup.


Abbreviations used:


P-PRICE
WPD-WHAT THE PRICE IS DOING
WPG-WHERE THE PRICE IS GOING
BUOB-BULLISH OUTSIDE BAR
BEOB-BEARISH OUTSIDE BAR
PB-PIN BAR
DBLHC-DOUBLE BAR LOW HIGHER CLOSE
DBHLC-DOUBLE BAR HIGH LOWER CLOSE
IB-INSIDE BAR
S-SUPPORT
R-RESISTANCE
SW-SWING
C-CLOSE
O-OPEN
PA-PRICE ACTION
RN-ROUND NUMBER
TL-TREND LINE
RET-RETRACEMENT
CT-COUNTER TREND
SL-STOP LOSS
TP-TAKING PROFIT
BE-BREAK EVEN
RT-RETEST
H-HAMMER
SS-SHINING STAR
IH-INVERTED HAMMER
HM-HANGING MAN
IPB-INVERTED PIN BAR
MM-MONEY MANAGEMENT
RM-RANGE MARKET
DT-DOUBLE TOP
DB-DOUBLE BOTTOM
LL-LOWER LOW
LH-LOWER HIGH
HH-HIGHER HIGH
HL-HIGHER LOW
TF-TIME FRAME
M-MONTHLY
W-WEEKLY
D-DAILY
NCA-NO CLOSE ABOVE
NCB-NO CLOSE BELLOW
PTT&TTP-PLAN THE TRADE&TRADE THE PLAN
__________________

fxgroup Sep 28, 2011 2:47pm | Post# 2

1° chart
 
2 Attachment(s)
Let's see some simple charts !

The price breakouts of the range market in up trend,at that point we start to look on daily chart how the old resistance of the range market becomes support for the next price evolution.
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fxgroup Sep 28, 2011 3:05pm | Post# 3

2° chart
 
2 Attachment(s)
The overall trend is down, the price closes bellow the range market support and becomes resistance.
With the price action confirmation, the price continues its way to monthly+ weekly support.
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fxgroup Sep 28, 2011 5:33pm | Post# 4

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A chart with an explanation of how we read a chart, entry, target and exit !
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fxgroup Sep 29, 2011 4:32am | Post# 5

1° step
 
1 Attachment(s)
1° step of trading process= market study.
-what is price doing= range market.
-identification of the most important levels whithin the consolidation.
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fxgroup Sep 29, 2011 8:55am | Post# 6

Looking to a chart
 
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I see the market as a battle between buyers and sellers.
This is a personally interpretation of what I see when I look to a chart.
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fxgroup Sep 29, 2011 10:49am | Post# 7

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The same chart with two kind of support/ resistance levels: static& dynamic.
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fxgroup Sep 29, 2011 4:30pm | Post# 8

3 Attachment(s)
Waiting for confirmation.

Monthly in range market with sellers and buyers at identyfied levels.
1-buob weekly-the buyers are strong but they can't close above the level, they don't have yet the level's control.
2-buob daily-the buyers finally pushed the price inside of mothly range market and take the control of the level with buob as confirmation.
The first target is the first and the most important level within the range market, meanwhile the final target is the resistance of the monthly range market.
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fxgroup Sep 29, 2011 4:58pm | Post# 9

2° step
 
2 Attachment(s)
Psychology

Planning the trade and waiting the price to give us the confirmations at our levels.
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fxgroup Sep 30, 2011 4:21pm | Post# 10

Levels
 
2 Attachment(s)
Some exemples of how I put and use the first type of support/ resistance levels.
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Ainks Oct 1, 2011 3:04am | Post# 11

lower tf
 
hi fxgroup..

nice thread you got here..

i have one questions.. can we apply this to lower time-frame like H1 or M30?

do we still looking for monthly/weekly trend? or H4/Daily trend is enough for lower time-frame trading?

porfirio Oct 1, 2011 7:37am | Post# 12

very interesting ... thanks

andri66 Oct 1, 2011 7:59am | Post# 13

I think the problem is how to look for clue when the trend is reach bottom or top , will the price reverse or continue the trend after breakour from consolidation zone , when a breakout is weak/false or strong ?
Maybe you can inform us what sort of clue that you use..is it only S/R , Fibo retracement or something else new ?

Many thanks & Good Luck !!

tradpat Oct 1, 2011 10:08am | Post# 14

hi fxgroup

a good thread. i like plain chart trading. u r v good. i am learning such plain chart trading but with 1 or 2 indy and incorporate with RN + PA. pls. continue posting

cheers

p.s. any comment on gold, silver, e-u, g-u?
p.s.2. which MT4 u r using as i saw u have eur-sgd (interesting)?

fxgroup Oct 1, 2011 3:35pm | Post# 15

[quote=Ainks;5003590]
hi fxgroup

nice thread you got here..

i have one questions
hi Ainks, even more ..
can we apply this to lower time-frame like H1 or M30?

do we still looking for monthly/weekly trend? or H4/Daily trend is enough for lower time-frame trading?
Yes, this method is based on price and the price is the price in any time frame and any market....but...in lower time frame the profit/money management levels are very closed and you have to be very fast, the time for analyse,time decision, etc becomes very tight. If you add the volatility ....!
For H1 or M30 you have to monitor the trade every hour or 30 min and personally I belive that the trading should be a positive part of our lives and not to take us away from the families, friends and to stick us to the monitor. Just mine.

Thanks Ainks.

oconnor365 Oct 1, 2011 3:36pm | Post# 16

Well done
 
Excellent thread...looking forward to learning more..

fxgroup Oct 1, 2011 3:44pm | Post# 17

very interesting ... thanks
Hola!
Thank you being part of this thread !

fxgroup Oct 1, 2011 4:02pm | Post# 18

[quote=andri66;5003744]
I think the problem is how to look for clue when the trend is reach bottom or top , will the price reverse or continue the trend after breakour from consolidation zone , when a breakout is weak/false or strong ?
Maybe you can inform us what sort of clue that you use..is it only S/R , Fibo retracement or something else new ?
Hi andri66

The purpose of this thread is to learn how to read the price, buyers& sellers, what the price doing and where the price going, but, in the safetiest way ! Picking tops& bottoms could be very dangerous for our accounts without a good market base.
To recognize the tops& bottoms there are trading advanced stuffs as market psychology or market dynamic...step by step we will get there !

Many thanks & Good Luck !!
Thanks to you sir !

Tatbat Oct 1, 2011 4:10pm | Post# 19

I am looking forward to your thread
and good luck to all

fxgroup Oct 1, 2011 4:36pm | Post# 20

hi fxgroup

a good thread. i like plain chart trading. u r v good. i am learning such plain chart trading but with 1 or 2 indy and incorporate with RN + PA. pls. continue posting

cheers

p.s. any comment on gold, silver, e-u, g-u?
p.s.2. which MT4 u r using as i saw u have eur-sgd (interesting)?
hi tradpat

p.s. gold-the long term buyers start to close their positions and re-bought to a lower price. Still HH+HL and with buyers on weekly(W), I'm looking for a consolidation.
silver-the sellers are looking for the dynamic support(S).
e-u-sellers channel
g-u-sellers till the triangle will start the congestion.

p.s.2 fxpro& others for charts.

Thanks for your partecipation.


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