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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 __________________ |
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. |
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. |
2 Attachment(s) A chart with an explanation of how we read a chart, entry, target and exit ! |
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. |
Looking to a chart 2 Attachment(s) 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. |
3 Attachment(s) The same chart with two kind of support/ resistance levels: static& dynamic. |
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. |
2° step 2 Attachment(s) Psychology Planning the trade and waiting the price to give us the confirmations at our levels. |
Levels 2 Attachment(s) Some exemples of how I put and use the first type of support/ resistance levels. |
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? |
very interesting ... thanks |
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 !! |
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)? |
[quote=Ainks;5003590]
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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. |
Well done Excellent thread...looking forward to learning more.. |
Thank you being part of this thread ! |
[quote=andri66;5003744]
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 !
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I am looking forward to your thread and good luck to all |
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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