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The real Basics - how to start and how avoid the traps

  • #101
  • Dec 12, 2019 9:22am Dec 12, 2019 9:22am
Quoting jmflukeiii
{quote} The trade is over, here is the chart. Hopefully this makes some sense. Obviously strong momentum up, so instead of looking for any short, I waited for the "first pullback" setup to go long. I do use some candlestick patterns to trigger entries, which are the little markings on the bars, but the candlesticks have little value without understanding the context. {image}
Really good example and so good information pick here up. All my respect and a true gift for any rookie, as all the other great informations here. For sure rookies do good to look more deeper. I like what we have build here and this is only possible if we have nice memebers posting here. I am happy how this is growing.
Perfection is the enemy of good enough!
  • #102
  • Dec 12, 2019 9:23am Dec 12, 2019 9:23am
Now we go over to example eight and have fun do your paintings.

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Perfection is the enemy of good enough!
  • #103
  • Dec 12, 2019 9:50am Dec 12, 2019 9:50am
Quoting MichaelSch
Now we go over to example eight and have fun do your paintings. {image}
My take on this. Trickier bottom formation. You could argue for the trap/failed breakout at the low as a good long, but my plan currently does not allow for failed breakouts, just pullbacks after the trend change. But the trap and reversal would be a good indication to no longer look for shorts and wait for a long setup within my plan.
Attached Image (click to enlarge)
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Small disciplines repeated with consistency lead to great achievements.
  • #104
  • Edited 11:28am Dec 12, 2019 10:56am | Edited 11:28am
Same chart and another view.

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... and another idea how to see a chart ...

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Pair of LL and LH only be respect for drawing trendline if we have a move in new area first. Price reach trendline, break it and go again in trend again. Search for entry and SL.
Perfection is the enemy of good enough!
  • #105
  • Dec 12, 2019 11:37am Dec 12, 2019 11:37am
Quoting MichaelSch
Same chart and another view. {image} ... and another idea how to see a chart ... {image} Pair of LL and LH only be respect for drawing trendline if we have a move in new area first. Price reach trendline, break it and go again in trend again. Search for entry and SL.
I think the trendline drawing is important. The trendlines will continue to flatten until new trendlines across the bottom can be drawn. The point being that rarely does a trend reverse immediately into an opposite direction, and most usually the trend flattens until it becomes a trading range. Once in trading range, a breakout will eventually occur.
Small disciplines repeated with consistency lead to great achievements.
  • #106
  • Dec 12, 2019 7:56pm Dec 12, 2019 7:56pm
Quoting MichaelSch
Same chart and another view. {image} ... and another idea how to see a chart ... {image} Pair of LL and LH only be respect for drawing trendline if we have a move in new area first. Price reach trendline, break it and go again in trend again. Search for entry and SL.
Hi MichaelSch... I love your simple pattern, it,s look like we could easy found all over the chart...
But let me ask you.. how about "this last pattern" how we avoid from this situation..
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Thanks...
  • #107
  • Dec 12, 2019 9:14pm Dec 12, 2019 9:14pm
Quoting amrih
{quote} Hi MichaelSch... I love your simple pattern, it,s look like we could easy found all over the chart... But let me ask you.. how about "this last pattern" how we avoid from this situation.. {image} Thanks...
We do not know if a setup is going positiv or not. If you think about you must add more and more filter and this lead to more situations that all the filters work against eachother.
So you must build a good risk management after you have build your setup. If you able to see your setup many times and many times you will have choice the right direction, why you will you change it, if it sometimes not work? Do not change a system that fast or want improve it for situations that can you not control.

I oversee this setup that you show in your picture, but i noticed a small range, so this will reduce my risk distance much more.

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Perfection is the enemy of good enough!
  • #108
  • Dec 12, 2019 9:49pm Dec 12, 2019 9:49pm
Quoting MichaelSch
{quote} We do not know if a setup is going positiv or not. If you think about you must add more and more filter and this lead to more situations that all the filters work against eachother. So you must build a good risk management after you have build your setup. If you able to see your setup many times and many times you will have choice the right direction, why you will you change it, if it sometimes not work? Do not change a system that fast or want improve it for situations that can you not control. I oversee this setup that you show in your...
This took me so long to figure out and will always be a work in progress, but is so important and led to years more of struggle than was necessary:

You won’t win every time; it’s one thing to conceptually understand that, and another thing to really accept it. You can’t win without placing a trade; and you can’t place a trade without losing some of the time. So therefore: winning requires losing.

I still focus on improving, i.e. reducing risk, increasing reward, or increasing probability, but accepting loss is as important as anything, I think, in this business.
Small disciplines repeated with consistency lead to great achievements.
  • #109
  • Dec 12, 2019 10:14pm Dec 12, 2019 10:14pm
Quoting jmflukeiii
{quote} This took me so long to figure out and will always be a work in progress, but is so important and led to years more of struggle than was necessary: You won’t win every time; it’s one thing to conceptually understand that, and another thing to really accept it. You can’t win without placing a trade; and you can’t place a trade without losing some of the time. So therefore: winning requires losing. I still focus on improving, i.e. reducing risk, increasing reward, or increasing probability, but accepting loss is as important as anything, I...
Yup... even for me, accepting lost is "The Most Important" part of trading...
  • #110
  • Dec 15, 2019 2:47pm Dec 15, 2019 2:47pm
Hello,

nice partizipation this time. I see that Michaelīs setup needs trained eyes and experience.
I tried to apply this setup to two areas in the picture.--> I and II

I -->
After going down (1) , pushing back (2) and pennding area I maybe would expect to go further down. But itīs goiing up again.
This is depending on the levels you set.

II-->
Here happens ths same in the other direction. After going up (1) and consolidation I would expect a further going up.
But overall itīs going down.

What I try to say is that for me itīs still a challange to recognice the right trading opportunities. But I hope itīs getting better soon...

Regards
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  • #111
  • Dec 15, 2019 10:34pm Dec 15, 2019 10:34pm
Hey MichaelSch

I just wanted to let you know that this is my first ever post on Forex Factory!

I am so happy to find a post to follow that tells me not to get lost in all the indicators at the begging of learning to trade forex. I am brand new to forex. I am currently just testing the water, reading lots, studying charts, and I hope to gain enough knowledge to start confidently trading full time in April next year.

Thanks again for this interesting and motivating thread, great for a beginner like me!
Emotional Control. Process, not outcome.
  • #112
  • Dec 16, 2019 2:44am Dec 16, 2019 2:44am
Quoting Konichiwhaat
Hey MichaelSch I just wanted to let you know that this is my first ever post on Forex Factory! I am so happy to find a post to follow that tells me not to get lost in all the indicators at the begging of learning to trade forex. I am brand new to forex. I am currently just testing the water, reading lots, studying charts, and I hope to gain enough knowledge to start confidently trading full time in April next year. Thanks again for this interesting and motivating thread, great for a beginner like me!
You are welcome. Pick the examples and practice, make notes. Keep in mind that you can only trade what you will able to see. Go through informations here and look if it help you. No need for indicators, no need to overcomplex things. After build your entry model, make thoughts on risk management. This is the more important part.

Have a good time here.

Greets

Micael
Perfection is the enemy of good enough!
  • #113
  • Dec 16, 2019 11:55am Dec 16, 2019 11:55am
We go over to number 09.
Hope we can get more rookies here who pick the training.

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Perfection is the enemy of good enough!
  • #114
  • Dec 18, 2019 12:02pm Dec 18, 2019 12:02pm
Hello,

here some input from my site:

marked 3 areas according Michaelīs setup --> 1-4 (each)

Also added two trendlines --> T and Tī
Along these trendlines I would enter my trades.(arrows)

Looking forward to hearing other opinions.

Regards
Attached Image (click to enlarge)
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  • #115
  • Dec 18, 2019 12:33pm Dec 18, 2019 12:33pm
Quoting Viator
Hello, here some input from my site: marked 3 areas according Michaelīs setup --> 1-4 (each) Also added two trendlines --> T and Tī Along these trendlines I would enter my trades.(arrows) Looking forward to hearing other opinions. Regards {image}
Good example. Have you now a entry model fixed that you prefer?
Perfection is the enemy of good enough!
  • #116
  • Dec 18, 2019 3:00pm Dec 18, 2019 3:00pm
Quoting MichaelSch
{quote} Good example. Have you now a entry model fixed that you prefer?
That'sa good question. So far I have no favourite setup.
Maybe it takes some time to gain experience (to know about the typical pattern to identify opportunities and average risk and win of each setup) and to build confidence (in the last few days I only enter when I'm quite sure to make provit instead of rushing into stupid losses) into the different setups. Some days I do not trade but only watch the charts.
Regards
  • #117
  • Dec 18, 2019 3:27pm Dec 18, 2019 3:27pm
Good thread

My view:
Blue: SR
Green: Entry
Red: Exit
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  • #118
  • Jan 2, 2020 2:01pm Jan 2, 2020 2:01pm
Quoting PipTracy
Good thread My view: Blue: SR Green: Entry Red: Exit {image}
Is it H1? Whatever, I think, you marked too many levels! Usually I would like to use horizontal lines to drawdown support/resistant levels!
  • #119
  • Jan 2, 2020 2:45pm Jan 2, 2020 2:45pm
Quoting ZikriIrfan
{quote} Is it H1? Whatever, I think, you marked too many levels! Usually I would like to use horizontal lines to drawdown support/resistant levels!
Whatever the timeframe will be, i mixed in the examples many timeframes. Do you need this information? Sure?
Take the timeframe what can you trade (beside work, family or else) and build your entry model around.
I do not get why so many want to know which timeframe is in use. This is total not important, as you can see same things in every avaible timeframe, because market is fractal.
Here i will never give the timeframe for my pictures, so if you want to know, you must search it. Sorry about this.
Perfection is the enemy of good enough!
  • #120
  • Jan 2, 2020 2:54pm Jan 2, 2020 2:54pm
... we start also here with a new example in the new year. Have fun.

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Perfection is the enemy of good enough!
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