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The Basics

  • #21
  • Nov 2, 2019 1:51pm Nov 2, 2019 1:51pm
Quoting MichaelSch
{quote} This is not a good advice and many problems will start exactly here. Sorry i can not walk away without pick up this point.
Agreed. Price tells you everything you need. Once price action is understood indicators are rendered useless.

1:1 is a losing R:R. It would require a minimum 60% win rate which few if any are able to achieve or sustain over the long term. Even 2:1 is difficult. 3:1 or greater is more desirable and can lead to profit with a 40% win rate. Much less stressful.

The thread starter's advice is quite conventional and practiced by many who are not surprisingly not profitable.
Freedom is not free
  • #22
  • Nov 2, 2019 1:53pm Nov 2, 2019 1:53pm
Quoting Bk55
{quote} you wont see much without them your chart would be blank
You see more if you ignore this. A chart is not about two, three ... candles.
Get me not wrong, it CAN make sense to use the tools you named, but in combination with "Basics" in the rookie talk corner i think it is not suitable. Back i wish i have the chance to get the hint to ignore first MAs, Fibs and so on ...
Perfection is the enemy of good enough!
  • #23
  • Nov 2, 2019 1:57pm Nov 2, 2019 1:57pm
Quoting Abe16
{quote} Agreed. Price tells you everything you need. Once price action is understood indicators are rendered useless. 1:1 is a losing R:R. It would require a minimum 60% win rate which few if any are able to achieve or sustain over the long term. Even 2:1 is difficult. 3:1 or greater is more desirable and can lead to profit with a 40% win rate. Much less stressful. The thread starter's advice is quite conventional and practiced by many who are not surprisingly not profitable.
over risking blows accounts fact the brokers and there paid bloggers will tell you otherwise I think most genuine people will agree
Oh yeah lets not study anything just sit and look at chart
Turn your wounds into wisdom
  • #24
  • Nov 2, 2019 1:58pm Nov 2, 2019 1:58pm
Quoting MichaelSch
{quote} You see more if you ignore this. A chart is not about two, three ... candles.
the more you know there more you see
Turn your wounds into wisdom
  • #25
  • Nov 2, 2019 2:01pm Nov 2, 2019 2:01pm
Quoting Bk55
{quote} the more you know there more you see
You see more your own if you have no clue what other see. You can trade only the own view of the market, otherwise you are going in trouble for long long time.

Edit:

I am out here, give my opinion to first post. Good luck for this thread becoming no further showcase room for latest indicators avaible.
Perfection is the enemy of good enough!
  • #26
  • Nov 2, 2019 2:04pm Nov 2, 2019 2:04pm
Quoting MichaelSch
{quote} You see more your own if you have no clue what other see. You can trade only the own view of the market, otherwise you are going in trouble for long long time.
if you know how to read a chart you wont care what others say dont be a sheep be the shepherded
Turn your wounds into wisdom
  • #27
  • Nov 2, 2019 2:13pm Nov 2, 2019 2:13pm
Guys feel free to show any proof of being profitable like a myfxbook account thats proof but many traders freak out and come up with excuses when you ask for prof if you guys are profitable then i will update the thread with your great advise on risk and study
Turn your wounds into wisdom
  • #28
  • Nov 2, 2019 2:21pm Nov 2, 2019 2:21pm
Quoting Bk55
Guys feel free to show any proof of being profitable like a myfxbook account thats proof but many traders freak out and come up with excuses when you ask for prof if you guys are profitable then i will update the thread with your great advise on risk and study
You're the one with all the sage advice so perhaps you should be the one posting proof of profit.
Freedom is not free
  • #29
  • Nov 2, 2019 2:41pm Nov 2, 2019 2:41pm
I trade mostly futures now days. Here's CL on a 777 tick chart. Price action is price action. I'll try to explain how I read without any use for indicators.

The green line is NY market open. Price was trending up just before the open. We get a bearish engulfing shown by the yellow arrow signifying a possible turn. Given the strength of the bearish engulfing and it's location at the top of an uptrend it's entirely possible to consider a trade when price retraces back into it (first green down arrow). Also the location gives a cheap stop with an excellent R:R of 3:1 or greater. However it is a riskier trade but the risk is offset by the cheap stop.

Price does move down and takes out a bullish tail shown by the blue arrow. This area represents a degree of support also and as I said before it gets taken out to the downside. Price comes back to test the support area and as seen it becomes resistance when a strong bearish engulfing bar occurs as shown by the bright pink arrow. Price retraces this bar and provides another opportunity to sell (the next green down arrow). The stop is perfect and R:R is still excellent.

Being able to read price action is crucial to trading. No combination of indicators will ever substitute for this. Just sayin...


Attached Image (click to enlarge)
Click to Enlarge Name: Screen Shot 2019-11-02 at 1.20.14 PM.png Size: 185 KB
Freedom is not free
  • #30
  • Nov 2, 2019 2:51pm Nov 2, 2019 2:51pm
Quoting Abe16
{quote} You're the one with all the sage advice so perhaps you should be the one posting proof of profit.
excuse number 1
Turn your wounds into wisdom
  • #31
  • Edited Nov 3, 2019 1:18am Nov 2, 2019 2:52pm | Edited Nov 3, 2019 1:18am
This is a 777 tick chart of Nasdaq micros. It's relatively cheap to trade.

Right after market opens price attempts to move higher but as can be seen by all the tails it finally moves down hard. It takes out a bullish tail which is highlighted by the two bright pink horizontal lines. Price retraces back into this area and provides a sell opportunity. The stop and R:R is excellent.

Good luck with your indies.
Attached Image (click to enlarge)
Click to Enlarge Name: Screen Shot 2019-11-02 at 1.47.57 PM.png Size: 188 KB
Freedom is not free
  • #32
  • Nov 2, 2019 2:53pm Nov 2, 2019 2:53pm
Quoting Abe16
I trade mostly futures now days. Here's CL on a 777 tick chart. Price action is price action. I'll try to explain how I read without any use for indicators. The green line is NY market open. Price was trending up just before the open. We get a bearish engulfing shown by the yellow arrow signifying a possible turn. Given the strength of the bearish engulfing and it's location at the top of an uptrend it's entirely possible to consider a trade when price retraces back into it (first green down arrow). Also the location gives a cheap stop with an excellent...
ha anyone can point out spots historically show us what it will do next who cares what it did in the past thats what every bogus trader does
Turn your wounds into wisdom
  • #33
  • Nov 2, 2019 2:54pm Nov 2, 2019 2:54pm
i pointed out a future a trade
Turn your wounds into wisdom
  • #34
  • Nov 2, 2019 2:56pm Nov 2, 2019 2:56pm
Quoting Abe16
This is a 777 tick chart of Nasdaq micros. It's relatively cheap to trade. Right after market opens price attempts to move higher but as can be seen by all the tails it finally moves down hard. It takes out a bullish tail which is highlighted by the two bright pink horizontal lines. Price retraces back into this area and provides a sell opportunity. The stop and R:R is excellent. Anyway that's my last contribution here. I wish you luck with your indies. {image}
bar charts show exactly the same info as candlesticks if you know how to read them
Turn your wounds into wisdom
  • #35
  • Nov 2, 2019 2:57pm Nov 2, 2019 2:57pm
Quoting Abe16
This is a 777 tick chart of Nasdaq micros. It's relatively cheap to trade. Right after market opens price attempts to move higher but as can be seen by all the tails it finally moves down hard. It takes out a bullish tail which is highlighted by the two bright pink horizontal lines. Price retraces back into this area and provides a sell opportunity. The stop and R:R is excellent. Anyway that's my last contribution here. I wish you luck with your indies. {image}

show a future trade that has potentual with a stop entry and target and you might get some respect
Turn your wounds into wisdom
  • #36
  • Nov 2, 2019 3:06pm Nov 2, 2019 3:06pm
Quoting MichaelSch
Tell a new trader that a market is speeding up and going to brake. Tell him to find the connection of both and you will gave him more as your list of indicators. After a trader managed to trade the own view of a naked chart, no one can tell him again about indicators.
I agree to a point. I can only relate what I have experienced, not judging how others trade but this is what do know:

1..Naked charts are fine for determining overall trend, but you need a top down approach. If your trading only a 5 min chart without recognizing the weekly, daily, and hourly charts, you are trading blind. I’m certain you would agree. Yes, you may get lucky just looking at price action on your 5 min chart, but I assure you “ luck” will not be there in the long run.
2...Candle formations Can trick us time and time again because a market that trades over 5 trillion per day as opposed to exchange traded markets (only 20% of that) pays little attention to what a candle tells them. Open any chart and circle the perfect hammer, doji, or the one we all love, the pin bar and see how many of them fail to follow through....you will be amazed.
Yes a few work, but who can rely on a “few” as a reason to enter a trade.
3...A market as huge as Forex does pay attention to historical tops and bottoms though and should be noted by every forex trader before he pulls a trigger. ( Btw...indicators work perfect on your 5 or 15 minute chart WHEN YOUR AT A HISTORICAL TOP OR BOTTOM). History repeats itself in the forex market and these key areas need to always be part of our trading toolbox.
4...Know your currency! Every currency has its own footprint and nuances. Eg. just try trading USDCAD using traditional trading tools. Candles mean nothin, indicators mean nothing, tops and bottoms are nebulous, keltners, bolinger bands, nothing works consistently. But if you consider the price of oil, the everall trend, average trading range and expected reactions around weekly pivot levels you suddenly have a pretty good idea where the brakes will be applied. Time of day and the state of the US dollar index also play on USDCAD.
5...Risk Management....you can be wrong 70 % of the time and still make huge gains in the forex market by using blind stops on your trades. I have an ea that lets me set tight stops and take profits that are blind to the broker. We have all entered trades at key levels only to have it go against us, having our 20 pip stop hit and then reverses for a 75 pip gain. If you think brokers are our friends you need to rethink that equation. I have been able to enter and renter after a couple of 3-4 pip stop outs until I finally get the entry right and ride the trade as necessary.

Anyway, trading is so much more than wasting your time pulling triggers as Bk says.....there is no one way, no real method that works every time, but all methods work if there is dedication and discipline behind the trade. Hope I didn’t bore readers too much......keep green everyone.
  • #37
  • Nov 2, 2019 3:09pm Nov 2, 2019 3:09pm
Quoting MichaelSch
{quote} You see more if you ignore this. A chart is not about two, three ... candles. Get me not wrong, it CAN make sense to use the tools you named, but in combination with "Basics" in the rookie talk corner i think it is not suitable. Back i wish i have the chance to get the hint to ignore first MAs, Fibs and so on ...
hey a 200sma is most chrts and fibs are widely used just becouse you dont know how to use them and gave up on first hurdle your talking like yours is the only system that works if it does work
Turn your wounds into wisdom
  • #38
  • Nov 2, 2019 3:17pm Nov 2, 2019 3:17pm
Quoting Swede
{quote} I agree to a point. I can only relate what I have experienced, not judging how others trade but this is what do know: 1..Naked charts are fine for determining overall trend, but you need a top down approach. If your trading only a 5 min chart without recognizing the weekly, daily, and hourly charts, you are trading blind. I’m certain you would agree. Yes, you may get lucky just looking at price action on your 5 min chart, but I assure you “ luck” will not be there in the long run. 2...Candle formations Can trick us time and time again because...

lets touch base on the risk point you raised first not one of these huge risk traders will still have there account after 5 years... they are gamblers ask yourself why the best traders in the world have gains of about 20% a year its becouse they dont want to risk half the account on one trade....

I do my analysis on on the primary trend first being the monthly i wouldn't recommend scalping to new traders lol
Turn your wounds into wisdom
  • #39
  • Nov 2, 2019 3:23pm Nov 2, 2019 3:23pm
Quoting Swede
{quote} I agree to a point. I can only relate what I have experienced, not judging how others trade but this is what do know: 1..Naked charts are fine for determining overall trend, but you need a top down approach. If your trading only a 5 min chart without recognizing the weekly, daily, and hourly charts, you are trading blind. I’m certain you would agree. Yes, you may get lucky just looking at price action on your 5 min chart, but I assure you “ luck” will not be there in the long run. 2...Candle formations Can trick us time and time again because...
I disagree that you need to analyze higher time frame charts to be able to trade a lower time frame. This is widely stated and accepted as gospel on forex factory but it's bunk iMHO (no disrespect intended). As I said previously I trade mostly futures with tick charts and use only one tick chart frame without a thought for a lower or higher tick chart frame. For example if I'm on a 777 tick chart I don't look at a 10000 tick chart to determine anything. The tick charts I trade move much faster than 5 minute charts. The price action tells me all I need. I always trade with a good stop and no less than 3:1 R:R. By the way my win rate is well under 50%.
Freedom is not free
  • #40
  • Nov 2, 2019 3:23pm Nov 2, 2019 3:23pm
I hope anyone new reading this threed does there homework on risk management and dont listen these guys
Turn your wounds into wisdom
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