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Davit Jul 17, 2015 7:18pm | Post# 21

{image} When price is above an open, it is up. Conversely, when price is below an open, it is down. It is a good idea not to short when price is up and not to buy when price is down. Naturally, most traders look for reversals but are impatient and trigger happy thus buying when they should be selling and vice-versa. A sell below the H1 open of the bar immediately following the bar making the highest high would have resulted in profit. In summary, a bar makes a high and closes. Next bar fails to make a higher high and reverses. Sell when price drops...
Hi TS
What is your open
NY close?5pm Which is logical or London open.This is the most important information.
Thank you

TooSlow Jul 17, 2015 7:47pm | Post# 22

{quote} Hi TS What is your open NY close?5pm Which is logical or London open.This is the most important information. Thank you
Daily open is Broker open. The open corresponds to 5PM NY time. What makes that the most important information?

TooSlow Jul 17, 2015 7:51pm | Post# 23

{quote} I see what you mean, and would have to agree. Isn't this then just swing trading on a smaller scale?
Looked it up:

Swing trading is a speculative activity in financial markets where a tradable asset is held for between one to several days in an effort to profit from price changes or 'swings'.

Not sure how to respond.

TooSlow Jul 17, 2015 8:00pm | Post# 24

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GBPUSD fell to a lower low. Clue!! Next bar failed to go lower. Clue!! Entry when price recovered past open. No way of knowing what would happen next. Two clues proved to be enough.

The 1-2-3 (HL-LL-HL) was the pattern. This pattern repeats daily.

Davit Jul 17, 2015 8:04pm | Post# 25

{quote} Daily open is Broker open. The open corresponds to 5PM NY time. What makes that the most important information?
Its most important because your decision of making a trade based on your promise sell or buy depending on Daily open.Not criticizing you just trying to understand what you mean open.
Taking this further Asia session up to London open is full of uncertain moves and often are not ideal making a decision because of lack of liquidity.Line in the sand based on Asia open is weak in my opinion.
Real deal starts from London.
regards

TooSlow Jul 17, 2015 8:08pm | Post# 26

Think of trading as decision making. Asking and answering questions about price: IF X THEN Y ELSE Z. Traders do that all day long, whether they realize it or not. Your system or method is a list of questions. Even indicators and EAs are a list of questions.

My questions are:

1) Did price make a new daily high/daily low last bar?

2) Did price fail to make a new daily high/daily low this bar?

3) Did I answer YES to Q1 and Q2? IF YES THEN ENTER AT H1 OPEN PRICE IN DIRECTION OPPOSITE OF NEW DAILY HIGH/DAILY LOW ELSE WAIT.

What are the questions you ask?

"Successful people ask better questions, and as a result, they get better answers." - Tony Robbins

Socratic method is named after the classical Greek philosopher Socrates. It is a form of inquiry and discussion between individuals, based on asking and answering questions to stimulate critical thinking and to illuminate ideas.

Please understand none of this is original or new and this is presented for EDUCATIONAL PURPOSES ONLY. You may find your results may differ. Please check with an accredited financial specialist before using real money. FOREX trading can be risky. YOU HAVE BEEN WARNED!

TooSlow Jul 17, 2015 8:11pm | Post# 27

{quote} Its most important because your decision of making a trade based on your promise sell or buy depending on Daily open.Not criticizing you just trying to understand what you mean open. Taking this further Asia session up to London open is full of uncertain moves and often are not ideal making a decision because of lack of liquidity.Line in the sand based on Asia open is weak in my opinion. Real deal starts from London. regards
Open in this case is the open price of the H1 bar not the daily open. Please accept my apology for being vague.

Please refer to this post: http://www.forexfactory.com/showthre...58#post8387458 Price had returned to the H1 open which was below the daily open.

jmn5611 Jul 18, 2015 1:23am | Post# 28

{image} How much are you up? How much more is there? Will it continue to go up? Socratic method is named after the classical Greek philosopher Socrates. It is a form of inquiry and discussion between individuals, based on asking and answering questions to stimulate critical thinking and to illuminate ideas.
I like the Socratic method.

My question is, does it matter whether or not we know if it will continue to go up? Is it more important to know what to do whether or not price goes up or down?

TooSlow Jul 18, 2015 1:44am | Post# 29

{quote} I like the Socratic method. My question is, does it matter whether or not we know if it will continue to go up? Is it more important to know what to do whether or not price goes up or down?
Price moves up or down, right?What to do? Enter, exit or wait are the choices so we know what to do. When to do what is the question ;-)

jmn5611 Jul 18, 2015 2:24am | Post# 30

{quote} Price moves up or down, right?What to do? Enter, exit or wait are the choices so we know what to do. When to do what is the question ;-)
So my next questions are, if price is with you, when do you ensure that there is no loss? If price is against you, when do you ensure that the loss is manageable? If price is the same for the time period you are looking at, do you wait until the bulls and bears have had their battle, or do you step into the unknown and pick a side?

TooSlow Jul 18, 2015 12:20pm | Post# 31

{quote} So my next questions are, if price is with you, when do you ensure that there is no loss? If price is against you, when do you ensure that the loss is manageable? If price is the same for the time period you are looking at, do you wait until the bulls and bears have had their battle, or do you step into the unknown and pick a side?
when do you ensure that there is no loss? Set your stop loss at breakeven +/- spread.

If price is against you, when do you ensure that the loss is manageable? Before entering the trade, calculate position size based on $ risk and pips to stop.

If price is the same for the time period you are looking at, do you wait until the bulls and bears have had their battle, or do you step into the unknown and pick a side? Wait for an entry signal.

Davit Jul 18, 2015 1:56pm | Post# 32

{quote} Open in this case is the open price of the H1 bar not the daily open. Please accept my apology for being vague. Please refer to this post: http://www.forexfactory.com/showthre...58#post8387458 Price had returned to the H1 open which was below the daily open.
Thanks for explanation.I looked at this and has great potential.

TooSlow Jul 18, 2015 8:29pm | Post# 33

Do you read the "simple" trading threads here on FF and other places? One thing most have in common is after 100 posts or so things start to get complicated. Something as simple as a horizontal line cross trade chart has a gazillion indicators and dashboards. This is only an observation. No grudges or ill will is held for what others choose to do with their charts, trades, portfolios, etc... This observation shows how vigilant a trader must be to guard against the lure of shiny, new things. Rest assure you will not find my charts adorned with indicator du jour.

Trading is a simple as 1-2-3. Knowing 3 things, open, high and low, is sufficient. Current open, high, low tells me what price has done and where the current price is relative to those 3 points. Before computers and the internet, this was the only information available. Many a fortune was made.

I hope you are enjoying a day off from trading.

jmn5611 Jul 19, 2015 3:31am | Post# 34

{quote} when do you ensure that there is no loss? Set your stop loss at breakeven +/- spread. If price is against you, when do you ensure that the loss is manageable? Before entering the trade, calculate position size based on $ risk and pips to stop. If price is the same for the time period you are looking at, do you wait until the bulls and bears have had their battle, or do you step into the unknown and pick a side? Wait for an entry signal.
Congrats TooSlow, you might actually have a clue

MikeCo Jul 19, 2015 4:30am | Post# 35

You're absolutely right, we often try to make trading with the use of charts far more complicated than it needs to be, in a way we wouldn't do if we were trading anything else - no doubt because we have access to real time charts and lots of indicators to play with, instead of just price.

I remember watching a video of TheRumpledOne a long time ago, and he was seemingly ranting as he often seemed to do, and he said something I didn't quite get at the time but makes more sense as time goes by, and becomes one of those little nuggets we should keep and bear in mind.

He was advising to just draw a line, then saying something like if price goes above - price is up, if price goes below - price is down. As I get older that statement gets clearer and clearer and becomes more obvious. If I were to open a chart and draw a line where price is, right now - any time price moves above means the market is buying, and conversely of course, when price moves below it - the market is selling.

We can complicate that immediately of course by introducing opens and closes on different timeframes, time of day and overlay with lines here, there and everywhere to make the patterns we love to see, with the aim of ultimately attempting to tame the market and extract other peoples money by our guile and expertise.

How often do we treat those highs and lows as bastions of last defence of the bulls or bears, watching out keenly for reversal entries or places to take profit, for days or hours on end, then watch in exasperation as price sails through as if those lines actually meant nothing at all, or they were never there.....

My belief is that trading should be treated in the same vein as driving a car, fighting an opponent or playing a round of golf for example. A formula one driver doesn't do exactly the same things lap after lap, they adapt every second to what is in front of them. The golfer doesn't do exactly the same thing swing after swing or the fighter repeat the same actions with someone who is moving in front of them, whether it's the same course or the same opponents.

Most 'traders' I see on here, seem to attempt the one size fits all, the odds will favour me long term although I cant emotionally cope with the ups and downs as I'm not in control version, leading as you infer, to more comforting indicators and less simple approaches.

Emmpoli Jul 19, 2015 7:37am | Post# 36

{image} Hello. I see about 10 traders are viewing. Please introduce yourself. Don't be shy. Price went up again. Should you wait or exit? Where should you move your stop? How many pips are you up? "Successful people ask better questions, and as a result, they get better answers." - Tony Robbins Socratic method is named after the classical Greek philosopher Socrates. It is a form of inquiry and discussion between individuals, based on asking and answering questions to stimulate critical thinking and to illuminate ideas.
Grinning with my mouth wide open, thought i activated my stealth mood. Well done Too Slow, I am impressed.i have read almost all your post on ff and this thread caught my attention. the edge in this type of method is awesome becasue 95% of the time, price closes above or below the open of that current candle. i have some questions and a suggestion to ask/make

Questions
1) I trade off the 15 minutes charts, don't you think the D1 candle wont really be of help to me? instead the H4 and H1 should do the work?
2) Do you consider other things like strength, previous candle and so on or just the HI,LO,OP etc?

Suggestion
1) I don't know others take on this but personally, I think Candle stick is preferable instead of the bar chart. so please consider using candle stick. thank you.

baidovich Jul 19, 2015 8:34am | Post# 37

"A sell below the H1 open of the bar immediately following the bar making the highest high would have resulted in profit. In summary, a bar makes a high and closes. Next bar fails to make a higher high and reverses. Sell when price drops below the open price of the current bar."

What you mean by reverses ? Start dropping bellow the open ?
Sell when price below the open of the reversal bar , or the previous bar ?

TooSlow Jul 19, 2015 2:21pm | Post# 38

...I remember watching a video of TheRumpledOne a long time ago, and he was seemingly ranting as he often seemed to do, and he said something I didn't quite get at the time but makes more sense as time goes by, and becomes one of those little nuggets we should keep and bear in mind. He was advising to just draw a line, then saying something like if price goes above - price is up, if price goes below - price is down. As I get older that statement gets clearer and clearer and becomes more obvious. ...
Welcome MikeCo.

"All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident." - Arthur Schopenhauer

This is fascinating! Your first opinion or impression is that of ranting. Later you come to a realization. Perchance you were influenced by the rantings of others. Are you familiar with the Pygmalion Effect: http://www.intropsych.com/ch15_social/expectancy.html

TooSlow Jul 19, 2015 2:38pm | Post# 39

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{quote} Grinning with my mouth wide open, thought i activated my stealth mood. Well done Too Slow, I am impressed.i have read almost all your post on ff and this thread caught my attention. the edge in this type of method is awesome becasue 95% of the time, price closes above or below the open of that current candle. i have some questions and a suggestion to ask/make Questions 1) I trade off the 15 minutes charts, don't you think the D1 candle wont really be of help to me? instead the H4 and H1 should do the work? 2) Do you consider other things...
Welcome Emmpoli.

A1) Chart period is immaterial. The brown line is at the open of the M15 bar that happened after the low of the day was established. The M15 bar failed to make a lower low. Price reversed and an entry at the brown line would have resulted in profit.

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A2) Price position is the main consideration. Price relative to daily and weekly open, high and low.

Candlesticks became a distraction to me. Bar charts allow me to stay focused. Each trader has their own preferences.

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All candles the same color.

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Bull and Bear colors.

Colors and patterns are distractions from price.

Thanks for the questions.

TooSlow Jul 19, 2015 2:46pm | Post# 40

"A sell below the H1 open of the bar immediately following the bar making the highest high would have resulted in profit. In summary, a bar makes a high and closes. Next bar fails to make a higher high and reverses. Sell when price drops below the open price of the current bar." What you mean by reverses ? Start dropping bellow the open ? Sell when price below the open of the reversal bar , or the previous bar ?
Welcome baidovich.

What you mean by reverses ?

In this case reverses means the current bar opened below the high of the previous bar, price went up but did not reach the high of the previous bar and then price starting dropping.

Sell when price below the open of the reversal bar , or the previous bar ?

To be clear. Current bar is bar[0] and previous bar is bar[1].

Sell when price drops below the open price of the current bar[0]. The possibility exists that price never retraces past the open and closes between the high of the previous bar[1] and open of the current bar[0]. In this case, you do nothing.

Thank you for your questions that allowed me to clear things up.


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