Attachments: Want to know how to get rich?

Want to know how to get rich?

#481
Apr 27, 2015 2:01pm Apr 27, 2015 2:01pm

fxjesus
| Joined Apr 2015 | Status: Trader | 261 Posts

Quoting yaed

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{quote} OK Jesus then i sort of get what you are about. I think these ideas i have posted here are too general to be thought of as "a system". I havent seen a single person that would make the kind of entry i would so there is no evidence to assume there are a lot of people that makes the same entries as me.

Ignored

Okay, I would say that when talking about highs and lows, everyone sees pretty much the same if talking about the daily ones. If you go to intraday timeframe then the highs / lows may differ due to spreads varying etc. The liquidity at intraday high/lows can be non-existent as they occur due to spread widening and "gaming" reasons. So with some "luck", those using this might hit illiquid place and get slipped big time if they use market orders (stop's are such).

#482
Apr 27, 2015 4:00pm Apr 27, 2015 4:00pm

Petr.K
Joined Nov 2014 | Status: Part-Time Trader | 584 Posts

Quoting yaed

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{quote} I will answer with a chart and then you answer the question yourself based on the chart. This is how i read PA. This way disregards BEAR/BULL thinking, it doesnt matter if the candle ends above or below where it began. This is enough to trade. Losses are unavoidable. {image} This is the most basic and most important knowledge in trading i think.

Ignored

Hi you talking about about candles but Look at my chart .. See the point ? Same signals without to be confusing with Shadows all those kind of stuff , Have you thinked about it ? i find it actually pretty interesting and MEGA SIMPLE

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#483
Apr 27, 2015 4:06pm Apr 27, 2015 4:06pm

Petr.K
Joined Nov 2014 | Status: Part-Time Trader | 584 Posts

Quoting Petr.K

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{quote} Hi you talking about about candles but Look at my chart .. See the point ? Same signals without to be confusing with Shadows all those kind of stuff , Have you thinked about it ? i find it actually pretty interesting and MEGA SIMPLE {image}

Ignored

I have opened today Two trades with Line chart
USd/Cad break a fresh low
EUR/NZD Re-entry
I mean if i look at this im just thinking what for do i need Candlestick for brekout strategy is Close price most important or ? what u think

EMA 50 and EMa 200 for a trend direction

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#484
Apr 27, 2015 6:04pm Apr 27, 2015 6:04pm

dagoods
Joined Nov 2007 | Status: Trader | 3,060 Posts

Quoting Petr.K

Disliked

{quote} I have opened today Two trades with Line chart USd/Cad break a fresh low EUR/NZD Re-entry I mean if i look at this im just thinking what for do i need Candlestick for brekout strategy is Close price most important or ? what u think EMA 50 and EMa 200 for a trend direction {image} {image}

Ignored

nice. now some back testing to see where the best place for stops is and some multi-timeframe analysis..... what do you all say for sure is the best most consistent + profitable place for a stop to be?

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#485
Apr 27, 2015 10:00pm Apr 27, 2015 10:00pm

zxdtrader
| Joined Feb 2013 | Status: Trader | 146 Posts

IMO, close price in a line chart doesn't show how price traversed, i am ok with a line chart of 1m as the shadow/wick is rather insignificant 99% of the time maybe, but for a daily chart, a lot of details are missing in a line chart and you are going to use real big stop loss to trade that.

in fact, small time frame such as 1m holds the details of market intention on the contrary to some system promoters who claim small time frames are noises. ever wonder why some times a pin bar on a daily chart didn't work out? because if people zoom into the pin bar and the bar following it, the intra day price movement did not suggest price reversal at all, those who blindly trade daily time frame would have to cut loss.

so, price reversal happens in the sequence of tick, 1m, 5m, 1h to 1w and 1mo. ever zoom into the tip of a monthly swing high/low and find out what is happening around the tip price?

#486
Apr 27, 2015 10:27pm Apr 27, 2015 10:27pm

dagoods
Joined Nov 2007 | Status: Trader | 3,060 Posts

price reversal happens in the sequence of tick, 1m, 5m, 1h to 1w and 1mo.

yes. indeed. how do you identify + trade it whilst its happening?

#487
Apr 27, 2015 11:04pm Apr 27, 2015 11:04pm

zxdtrader
| Joined Feb 2013 | Status: Trader | 146 Posts

firstly, you need to be there to catch it, do you agree? I despised scalping for a long time until I re-evaluate my thinking and be a little bit more open-minded, then I discovered that it doesn't matter the time frame, price action happens in any time frame. given a candlestick chart without telling the viewer what time frame it is, it is not easy if not impossible to tell the time frame. so, when effective price action happens, traders need to be there to catch it. if you look at a daily price range, the biggest move intraday usually only last a few hours max. so scalping doesn't mean lifeless 24h in front of monitor.

secondly, I want to redirect to a post on another thread I wrote previously as I don't want to retype it.
http://www.forexfactory.com/showthre...88#post8220788

these 2 are the very basic things in the right direction. there are other things that will affect the profitability such as how to manage positions, psychology etc, I think only the trader itself has to go through all these and find something suitable. no other way.

what I am saying here has been repeated (in other forms of course) countless times on this very forum so I am just a repeater, not inventor or any sort of.

I would say, try to understand the market intention, love the market, sleep with her, know her temper, do as she says, and she will reward you as much as she could. same thing about wife I guess, LOL.

#488
Edited 2:15am Apr 28, 2015 1:51am | Edited 2:15am

fxjesus
| Joined Apr 2015 | Status: Trader | 261 Posts

Quoting dagoods

Disliked

{quote} nice. now some back testing to see where the best place for stops is and some multi-timeframe analysis..... what do you all say for sure is the best most consistent + profitable place for a stop to be? {image}

Ignored

I'd say forget the stops and close the trade while it's still in profit (this is intraday system right?). If it went straight to loss after open, take note of the time of day and other things going on just before you open it. Maybe once that happens often enough there will be some clue you can figure out before opening the trade.

If I understand the method correctly, it's breakout of high or low. So you can calculate your position size based on those to be such that if your trade goes to loss immediately, if your size was small enough, you can wait to see if it penetrate the opposite end or bounce back (for break even close). So what if after you open trade then just sits there at small loss and then goes slowly ... or what if it goes faster than usual to loss? I think observing what happens after you open the trade (live of course, demo doesn't count) is essential for these scalp dealings. You may be able over time figure out whether it's best to close immediately or maybe add to the position and whether to exit at b/e or what. If it went to profit and you used leverage, then maybe close all the leverage while it's still in profit and leave a partial position open in that currency. If that partial is still profitable next day, that pair could be trending.

#489
Edited 2:51am Apr 28, 2015 2:30am | Edited 2:51am

fxjesus
| Joined Apr 2015 | Status: Trader | 261 Posts

Quoting yaed

Disliked

Errh... i think i know why brokers dont want you to place a buy limit above price and a sell limit below price. Because you need to do that to be profitable.

Ignored

Yeah you need a real broker or code your own execution stuff like the hft/hedge funds. Those who can't bother either find no liquidity or get slippage. Those who use stop order may find they buy breakout at 100 but price wound up 200 (gap) and their stop is executed as 200 while they had stop entry at 100. If such big jump happens on no news or trend then it's possible the price come back down and the losers who didn't bother writing they own algos are holding the bag. If enough "stop order losers" did this or some big fund, that could be the start of a new trend that goes on all the way until those bag holders exit at loss. Seen this few times...

summary: the better the entry, the less liquidity. And that's why no profitable traders share detailed stuff in public. On my first post in this thread I made a note that this strategy is very specific about entries. And it will stop working if it is working now - once enough get on board to compete for the same liquidity at the same location. pro-tip: Losers use stop loss and take profit. Winners use(d) orders in a ways to help price go their way instead of the wrong way (take profit is saying "hey price! don't come here!"). However one such winner just got 300 years and US seeking extradition, I personally focus on non-intraday strategies to avoid all these issues.

#490
Apr 28, 2015 2:50am Apr 28, 2015 2:50am

yaed
Joined Jul 2010 | Status: Determined | 5,346 Posts

Quoting chonchy

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{quote} .....Nice charts...

Ignored

Hi Carlos! hope all is well with you and the family.

My signature is: "Classified".

#491
Apr 28, 2015 2:52am Apr 28, 2015 2:52am

yaed
Joined Jul 2010 | Status: Determined | 5,346 Posts

Quoting Petr.K

Disliked

{quote} Hi you talking about about candles but Look at my chart .. See the point ? Same signals without to be confusing with Shadows all those kind of stuff , Have you thinked about it ? i find it actually pretty interesting and MEGA SIMPLE {image}

Ignored

Those are based on closing price. I need to see where it has been at during the time, cause some of my TPs can be 10 second, but might be looking at M15.

My signature is: "Classified".

#492
Apr 28, 2015 2:57am Apr 28, 2015 2:57am

yaed
Joined Jul 2010 | Status: Determined | 5,346 Posts

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My signature is: "Classified".

#493
Edited 3:53am Apr 28, 2015 3:36am | Edited 3:53am

fxjesus
| Joined Apr 2015 | Status: Trader | 261 Posts

Looking at that image I'm tempted to say the "edge" of this idea is that there's bunch of unexecuted orders (limits, stops etc) behind the lows/highs that the MM's want to execute. I'd say the more size is onboard this idea the more volatile/illiquid the movement is after entry. Anyone using any stops will get those hit. The price will likely return to equilibrium by close (false breakout) and you'd have difficulty taking profits and then as retail mt4 put in limits to get out of a loser at b/e, those limits would actually act as resistance. (this goes into why most lose money in trading, the one with most size and knowledge of how to place limits and stops and be active with them has control - non-active-traders setting tp&sl and leaving them sitting duck create a self-fulfilling prophecy of higher probability of price not hitting their profit target)

My suggestion: do not try trade this except in direction of prevailing weekly trend - there will be that unavoidable big loss when the trend ends and the price gaps in your face, so factor that in when using leverage.

Also to avoid the "prophecy" issue, it might be worth analyzing over time (if you could control everyones orders ... fat chance now as this is public) the effect of various order types and various levels on the probability of getting to profit if it went against after entry and whether or not the best idea is to actually remove the pending orders from the book at session close if still at loss. I think that might affect chances of price getting to the b/e atleast.

#494
Apr 28, 2015 4:52am Apr 28, 2015 4:52am

yaed
Joined Jul 2010 | Status: Determined | 5,346 Posts

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Thats what im looking at now. I dont need to mark anything, i dont need any lines or anything. I just need to interpret what im looking at. I dont need a TP or a SL. I can see those things at places anyhow.

My signature is: "Classified".

#495
Apr 28, 2015 4:52am Apr 28, 2015 4:52am

zxdtrader
| Joined Feb 2013 | Status: Trader | 146 Posts

this chart is E/G 30m chart.

the new low was achieved around New York session open, after that, selling pressure was lost and reversal sign appeared, this pair basically is lifeless after London close throughout Asian session, so what is seen on the image of the new lows at lvl2 was highly due to low liquidity. when Europe and London opened again, you can say buyer and seller from Asian session should be taken out. perfect scenario, happened all the time, that's why Asian session is best to be avoided for European currencies. nothing wrong at all.

sellers in this case were trying to push the price even lower throughout Asian session, although successful, the margin is very small showing the weakness of sellers, continue after Europe open and London open, the downside margin is still small at this point, sellers lost interests and buyers won big time. price revisited previous low but failed to concretely closed lower and create momentum, weak sign for sellers, buyers came in and pushed price higher, sellers cut loss in a chain reaction.

this big move is somewhat expected, first there is a sign of reversal, 1h chart showed a bullish engulfing at the beginning of New York open, meaning serious sellers already had their fun and exiting. this big sell move started when a long consolidation zone was broken, naturally price would revisit the consolidation zone as there are some trapped buyers/sellers.

this image doesn't show a lot of information, and the decision to buy/sell is not based on this 30m chart, it's based on smaller time frame I believe.

#496
Apr 28, 2015 6:18am Apr 28, 2015 6:18am

yaed
Joined Jul 2010 | Status: Determined | 5,346 Posts

Quoting zxdtrader

Disliked

this chart is E/G 30m chart. the new low was achieved around New York session open, after that, selling pressure was lost and reversal sign appeared, this pair basically is lifeless after London close throughout Asian session, so what is seen on the image of the new lows at lvl2 was highly due to low liquidity. when Europe and London opened again, you can say buyer and seller from Asian session should be taken out. perfect scenario, happened all the time, that's why Asian session is best to be avoided for European currencies. nothing wrong at all....

Ignored

Thats pretty interesting.

My signature is: "Classified".