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Price action trading - Trade like the pros!

  • #741
  • Sep 25, 2017 2:07pm Sep 25, 2017 2:07pm
Set it and forget it type of trade, with a 30 pip TP as I was out all day, capitalizing on the post-german elections euro decline.
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSDM15.png Size: 44 KB
  • #742
  • Sep 26, 2017 7:09am Sep 26, 2017 7:09am
Quoting shay14
Trying to understand something here so i draw my levels on the daily chart, now i'll wait for price to reach those areas, can i not trade off that same daily chart? when i go to lower time frames, it just gets confusing as i keep saying different patters/trends/candle sticks on lower tfs
Of course you can, but you will have to use a much bigger stop. Smaller timeframes help frame your entry point much better. I would refer you to the "zone within the zone" concept that you can find a link to in the first post.
  • #743
  • Sep 26, 2017 7:14am Sep 26, 2017 7:14am
Quoting Manel9530
Hi W! What is your thoughts about the Stop Loss? How do you use it? Its been very hard for me to use a more wide stop loss (psycological effects) but at the end and after lookin to my journal I see that some losses could be winners
I usually use a 20 pip stop, with a 2-2,5% risk parameter. Sometimes I will use a tighter, 10 pip or less if I am really sure the trade will shoot in my direction straight away.

Placing a stop is not easy, because in order to have a reasonable stop size, you will have to time your entry pretty well. A few tricks I use to determine how tight my stop may be is, if I'm trading off a fib level, I will place the trade at the 61.8% or midlevel, and I will account for price eventually moving as low as the 78.6%.

If I'm trading off a resistance (or support) level, I will account for an eventual stop-swipe move and use a generally larger stop.

No matter where the stop is, I will always risk up to 2.5% of my equity. So if I am forced to use a much smaller than usual lot on a trade that requires me to have a very wide stop, I would rather pass on the trade than be stuck waiting for momentum to swing price in the right direction.
  • #744
  • Sep 26, 2017 7:21am Sep 26, 2017 7:21am
I've been getting questions on fibonacci and how to use it, I will try to dedicate a post to fibs one of these days.
  • #745
  • Sep 26, 2017 7:27am Sep 26, 2017 7:27am
Great posts Wdays. Thanks a lot.
  • #746
  • Sep 26, 2017 3:35pm Sep 26, 2017 3:35pm
Hi WDays,
Thanks heaps for the work you've put into this thread, really appreciate it.
Just wondering if you're able to comment on how you would've triggered a short in the early euro session on the EU on both the 25th and 26th September.
25th looks to have hit the 50% fib of the asian range before retreating and on the 26th it retreated almost to the 100%.
I'm also interested on how high above the daily high you would set your stop too, so that you avoid any stop hunting.

I've been entering during the asian session of late and after coming across thread, do agree that it's a bad idea. I seem to be unnecessarily sitting in trades before they start moving (yesterday I went long/short/long on the UJ, instead of sticking to my guns. if I traded in the early euro session, I would have stuck to my long bias, especially after the 111.50 area failed to break 6 times on the M15) Also, if the euro session is going to show I got the bias wrong, I have a much better chance of avoiding the trade if I wait until the early euro hours.

Also, with price targets, do you try and figure out the daily range? I mean it seems that trying to shoot for the max can be good, but most of the time it probably won't work out. I actually had my target on the EU at 17760 on the 26th, but closed at 17768 as soon as I woke up and saw that it bounced a little off 11764. This type of day when the range works out perfectly from the previous H4 swings, are probably rare right? So I'm thinking a 45-50 pip fixed TP might do me better in the long run.

I apologize if you've already answered these questions on this thread, I'm still reading through the materials. I hope to be a regular on this thread, as of late I've been trying to trade in a very similar manner (i.e. pick a bias on the D1/H4 and look for an entry on the M15/M1). There's so many more ideas on here that I'll benefit from greatly. Thanks heaps.

Cheers,
Jason
  • #747
  • Sep 27, 2017 1:30am Sep 27, 2017 1:30am
Quoting WDays
{quote} I usually use a 20 pip stop, with a 2-2,5% risk parameter. Sometimes I will use a tighter, 10 pip or less if I am really sure the trade will shoot in my direction straight away. Placing a stop is not easy, because in order to have a reasonable stop size, you will have to time your entry pretty well. A few tricks I use to determine how tight my stop may be is, if I'm trading off a fib level, I will place the trade at the 61.8% or midlevel, and I will account for price eventually moving as low as the 78.6%. If I'm trading off a resistance...
Actually I'm using a SL of 20 pips as you, my problem is with the fibonacci and the support/resistance levels. I will try to incorporate your ideia as my trading is similar to yours.

My 2 cents about the fib and how to use that. I think people always try to know 'how to use' and then they use them in every swing, and of course the levels will fails and they will say that fibs sucks, they dont realize that what is important to understant is 'when to use'.
  • #748
  • Edited 12:21pm Sep 27, 2017 9:49am | Edited 12:21pm
Quoting WDays
Second, other KSR - psychological levels (00, 20, 50, 80) - those are pretty self explanatory.
Can you please elaborate further on this? I don't understand what you mean by psychological levels.


Thanks for creating this thread!
  • #749
  • Sep 27, 2017 1:06pm Sep 27, 2017 1:06pm
Quoting IHeartPips
{quote} Can you please elaborate further on this? I don't understand what you mean by psychological levels. Thanks for creating this thread!
I mean what I said in brackets the 00, 20, 50 and 80 levels. The 1.20, 1.10 levels hold a significance for the euro. The 1.1980, 1.2020 levels are institutional levels. Institutions and traders both like round numbers. And there's a rational explanation - it's just human nature.
  • #750
  • Sep 27, 2017 1:07pm Sep 27, 2017 1:07pm
Quoting Manel9530
{quote} Actually I'm using a SL of 20 pips as you, my problem is with the fibonacci and the support/resistance levels. I will try to incorporate your ideia as my trading is similar to yours. My 2 cents about the fib and how to use that. I think people always try to know 'how to use' and then they use them in every swing, and of course the levels will fails and they will say that fibs sucks, they dont realize that what is important to understant is 'when to use'.
Pretty much, yes. That's what I meant too.
  • #751
  • Sep 27, 2017 1:25pm Sep 27, 2017 1:25pm
Quoting jseparovic
Hi WDays, Thanks heaps for the work you've put into this thread, really appreciate it. Just wondering if you're able to comment on how you would've triggered a short in the early euro session on the EU on both the 25th and 26th September. 25th looks to have hit the 50% fib of the asian range before retreating and on the 26th it retreated almost to the 100%. I'm also interested on how high above the daily high you would set your stop too, so that you avoid any stop hunting. I've been entering during the asian session of late and after coming across...
Well on the 25th, I actually took a short in the morning and I showcased it here:
Quoting WDays
Set it and forget it type of trade, with a 30 pip TP as I was out all day, capitalizing on the post-german elections euro decline. {image}
As for the 26th, I would hate to point to hindsight entry ideas as I did not take a short then. But if I would have to, daily open on the 26th is located at 1.1858. We're working within the premise that euro is declining (German elections, like I said in the previous post). Before that, price went to that same 1.1858 level and reacted to it. So when price went and tested it the next morning, it probably should have been clear that we wouldn't see it go far above the open.

As for your other questions; I don't set my stops above the daily high. That would be an extremely large stop I avoid stop hunting by taking part in stop hunting, lol.

Trying to guess daily range, it's hard. It really depends on the environment I'm working with, what I gotta do during the day, whether I'm expecting HIN and so on. I usually love my standard 30 pip TP on majors and as big as 50 on exotic crosses. Sometimes I will give a trade more time to reach a set level that I deem should be reached, but that usually stresses me out more than I'd like since it means trailing stops and what not.

I hope I've managed to answer you more or less well.
Attached Image (click to enlarge)
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  • #752
  • Sep 27, 2017 5:20pm Sep 27, 2017 5:20pm
Quoting WDays
{quote} Of course you can, but you will have to use a much bigger stop. Smaller timeframes help frame your entry point much better. I would refer you to the "zone within the zone" concept that you can find a link to in the first post.
on page 2 and already learning a lot, really hope by the end of this thread, i'm a lot more proficient at reading a chart.
  • #753
  • Oct 1, 2017 8:27am Oct 1, 2017 8:27am
Quoting WDays
{quote} Accumulation is easy to identify. Every large move (trend) is followed by consolidation (range), which in turn becomes a new accumulation phase. The concept is based on the premise that the market moves from range to expansion to consolidation. Accumulation is essentially price not going anywhere, staying within a range. It then gets unstable and starts breaking up and down (faking). We try to short at the top of the range and long at the bottom, in order to afford tight stops. The direction we enter (buy or sell) is based on higher timeframe...

This may be a dumb question but what does M15 and M5 mean?
  • #754
  • Oct 1, 2017 8:29am Oct 1, 2017 8:29am
Quoting WDays
{quote} I mean what I said in brackets the 00, 20, 50 and 80 levels. The 1.20, 1.10 levels hold a significance for the euro. The 1.1980, 1.2020 levels are institutional levels. Institutions and traders both like round numbers. And there's a rational explanation - it's just human nature.
Okay, got it. I thought so but wasn't sure. Thanks for clarifying.
  • #755
  • Oct 1, 2017 8:31am Oct 1, 2017 8:31am
Quoting IHeartPips
{quote} This may be a dumb question but what does M15 and M5 mean?
Not sure if you are serious, but in case you are M15 = 15 minutes and M5 = 5 minutes.

  • #756
  • Edited 12:30pm Oct 1, 2017 9:51am | Edited 12:30pm
Quoting enochben
{quote} Not sure if you are serious, but in case you are M15 = 15 minutes and M5 = 5 minutes.
Thanks. I am still trying to get used to some of the lingo here. I am familiar with 15 minute and 5 minute charts but I never seen it described as M15 and M5. Sometimes acronyms and such can throw one for a loop.

Humble yourself. Not everyone has been doing this for years.
  • #757
  • Oct 5, 2017 8:50am Oct 5, 2017 8:50am
Inserted Video


The Fibonacci video I promised...
  • #758
  • Oct 5, 2017 9:01am Oct 5, 2017 9:01am
And a long forgotten live trade EU trade

Inserted Video
  • #759
  • Oct 6, 2017 8:25am Oct 6, 2017 8:25am
Hey guys,

Was wondering, is there anyone familiar with video editing? I haven't really done much editing, but whenever I try to lately, I keep getting my picture all scrambled like in the screenshot below.

Any clue as to why? I recorded a live trade during NFP today, I'd like to share it but the file itself is too long for me to bother you with, I need to speed it up.

Hit me up in pms
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot 2017-10-06 18.23.27.png Size: 639 KB
  • #760
  • Edited 10:11am Oct 6, 2017 8:30am | Edited 10:11am
Inserted Video



Here's the final result.
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSDM15.png Size: 65 KB
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