Roadmap - A Way To Read Markets | Page 216 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Software tools for LauraT's Roadmap 169 replies

Forex Brokerage Roadmap 4 replies

Best way to read all of someone's posts? 3 replies

Simple way to read chart 11 replies

Attachments: Roadmap - A Way To Read Markets
Exit Attachments

Roadmap - A Way To Read Markets

  • #4,301
  • Feb 22, 2021 6:28am Feb 22, 2021 6:28am
Quoting 2muchbutter
{image} Was there anything particularly wrong with the trade? Looking left didn't catch anything useful. EUR seems to be strong today. Was it just 'one of those' trades?
Nothing particularly wrong with the trade.

One thing to be aware of though - Friday's Low was in the vicinity. Although price had already broken the level earlier in the Asian session, I generally prefer to avoid selling under it or around it.
  • #4,302
  • Feb 22, 2021 3:23pm Feb 22, 2021 3:23pm
A aggressive entry on EU, not 100% inline with the rules but road map got me pointed in the right direction. Entry on M5 but trade was based off H1

Attached Image (click to enlarge)
Click to Enlarge Name: EU.png Size: 325 KB
  • #4,303
  • Feb 22, 2021 11:23pm Feb 22, 2021 11:23pm
entered gbp/usd trade after the ma band crossover. RSI is still positive, but the short term down movement looks good, sl few pips above the bullish candle that crossed 200 ma.

Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSDM5.png Size: 45 KB
  • #4,304
  • Feb 23, 2021 2:03am Feb 23, 2021 2:03am
Hey Laura, really appreciate what you’ve done here! I’ve been following this thread for a while now and seen some great changes in my trading, all thanks to you!

I was just wondering if you or anyone else could give me feedback from WTI long that I took today. Is there something that would have made you not enter a long position where I did?
Attached Image (click to enlarge)
Click to Enlarge Name: a8f346ffe19540f43c8b092c0c76992b.png Size: 165 KB
  • #4,305
  • Feb 23, 2021 2:41am Feb 23, 2021 2:41am
Don't get too many of this type of trend every day.
Attached Image (click to enlarge)
Click to Enlarge Name: DaxAM1021.png Size: 351 KB
every Saint has a past. Every Sinner has a Future
  • #4,306
  • Feb 23, 2021 2:42am Feb 23, 2021 2:42am
Quoting needtolearn
entered gbp/usd trade after the ma band crossover. RSI is still positive, but the short term down movement looks good, sl few pips above the bullish candle that crossed 200 ma. {image}
What exactly did persuade you to take the trade? From what I've gathered going short at that point is not a good move. RSI is above 40, daily open line been tested and acted as support, momentum is not on your side.
  • #4,307
  • Edited 3:45am Feb 23, 2021 3:16am | Edited 3:45am
Quoting lemppari
Hey Laura, really appreciate what you’ve done here! I’ve been following this thread for a while now and seen some great changes in my trading, all thanks to you! I was just wondering if you or anyone else could give me feedback from WTI long that I took today. Is there something that would have made you not enter a long position where I did? {image}
I am in the UK so your chart confuses me a little. But your trade could simply be one of those things ( a loser despite the analysis) - they often happen and will continue to do so - managing your losses is key here. Always mark your exit before you get in.
But where are your 'Look left' lines? Your 0752am high would create a horizontal line going forward plus the 0856am line ( I am guessing these are before 8am UK time?) Using the one minute to trade often means you have to be quick to garner profit, so SPEED lines help here. And note the 200ma is a little flat also.
As an aside - some people trading one minute time frames expect long runs of 20 or so pips. probability is against you. One often ( in my case) snatches a series of 5 or so pips a trade involving several entries between my allotted two hour trading period. So my stop is always trying to lock in five.
Prior to your long there was a higher low around 62495 ( yes- it is below the 200) which might have given you an earlier entry. ( Laura has mentioned this approach in her Journal thread)
I have just posted a dax trade ( apologies for such an egotistical lapse in self control) which is a runaway success. But even so, it consisted of a series of shorts rather than one short at the top. In other words I was in and out as the price moved around the ema and my stops.
every Saint has a past. Every Sinner has a Future
  • #4,308
  • Feb 23, 2021 3:17am Feb 23, 2021 3:17am
Quoting 2muchbutter
{quote} What exactly did persuade you to take the trade? From what I've gathered going short at that point is not a good move. RSI is above 40, daily open line been tested and acted as support, momentum is not on your side.
I thought he wrote that he went LONG at that point?
every Saint has a past. Every Sinner has a Future
  • #4,309
  • Feb 23, 2021 3:39am Feb 23, 2021 3:39am
Quoting lemppari
Hey Laura, really appreciate what you’ve done here! I’ve been following this thread for a while now and seen some great changes in my trading, all thanks to you! I was just wondering if you or anyone else could give me feedback from WTI long that I took today. Is there something that would have made you not enter a long position where I did? {image}
Hi - glad you're making progress.

In terms of the WTI long, it was technically okay but a couple of things to bear in mind:

Look at the SMA200 prior to your entry - very sideways. That tells me that there was no clear direction established yet.

What you'll quite often get in this type of price action is for the previous high(s) to be marginally taken out, only for price to then reverse to the downside. As happened in this case.

Try to find entries where the direction of travel is clearer as it makes the decision process much easier.
  • #4,310
  • Feb 23, 2021 3:48am Feb 23, 2021 3:48am
Quoting turnip15
{quote} I thought he wrote that he went LONG at that point?
In that case entry is below SMA, so neither a crossover nor a failure, I suppose he then anticipated a crossover.


I had a question, I notice only 1-2 viable setups each day on average. Maybe my selection process for pairs is too strict? I select pairs which show strength, filter currencies with red news, additionally no correlated currencies (Since they follow the same pattern).
  • #4,311
  • Feb 23, 2021 4:16am Feb 23, 2021 4:16am
Quoting 2muchbutter
{quote} In that case entry is below SMA, so neither a crossover nor a failure, I suppose he then anticipated a crossover. I had a question, I notice only 1-2 viable setups each day on average. Maybe my selection process for pairs is too strict? I select pairs which show strength, filter currencies with red news, additionally no correlated currencies (Since they follow the same pattern).
It can be a problem, especially if you're only trading forex. But definitely should be more than 1 or 2 opportunities a day so perhaps you do need to revisit your selection process.
  • #4,312
  • Feb 23, 2021 4:18am Feb 23, 2021 4:18am
Quoting turnip15
{quote} I am in the UK so your chart confuses me a little. But your trade could simply be one of those things ( a loser despite the analysis) - they often happen and will continue to do so - managing your losses is key here. Always mark your exit before you get in. But where are your 'Look left' lines? Your 0752am high would create a horizontal line going forward plus the 0856am line ( I am guessing these are before 8am UK time?) Using the one minute to trade often means you have to be quick to garner profit, so SPEED lines help here. And note the...
Thanks for your reply!

The chart is actually in GMT+2. But really appreciate your answer. That gave me a lot more information that I anticipated getting. I never even realized my problem of anticipating unrealistic profits on every trade. Now I understand the advice better from Laura about closing half of the position on a logical TP and letting the rest to run to see if there is more to it.
Also gotta keep those 'look left' lines on the chart. Those with combination of speed lines could have gotten me out at least on BE.
  • #4,313
  • Feb 23, 2021 4:21am Feb 23, 2021 4:21am
Quoting 2muchbutter
{quote} In that case entry is below SMA, so neither a crossover nor a failure, I suppose he then anticipated a crossover. I had a question, I notice only 1-2 viable setups each day on average. Maybe my selection process for pairs is too strict? I select pairs which show strength, filter currencies with red news, additionally no correlated currencies (Since they follow the same pattern).
It was above
every Saint has a past. Every Sinner has a Future
  • #4,314
  • Feb 23, 2021 4:31am Feb 23, 2021 4:31am
Quoting LauraT
{quote} Hi - glad you're making progress. In terms of the WTI long, it was technically okay but a couple of things to bear in mind: Look at the SMA200 prior to your entry - very sideways. That tells me that there was no clear direction established yet. What you'll quite often get in this type of price action is for the previous high(s) to be marginally taken out, only for price to then reverse to the downside. As happened in this case. Try to find entries where the direction of travel is clearer as it makes the decision process much easier.
Appreciate the reply! It’s funny how something so ’obvious’ goes unnoticed, when trying to find trades just to get into the markets. At least won’t do the same mistake in the future, hopefully.
  • #4,315
  • Feb 23, 2021 7:15am Feb 23, 2021 7:15am
Some one asked why I drew in the Look Left lines on the Dax.
In this UK afternoon ( US open) dax trade, I looked at the 5 minute chart and the one minute and compared look left or consolidation lines.
Isn't always so neat but keeps me focused on areas I think I should focus on and results in less lines.
Doesn't always work which is why we have stops and money management.
Attached Image (click to enlarge)
Click to Enlarge Name: DaxPM1510.png Size: 449 KB
every Saint has a past. Every Sinner has a Future
  • #4,316
  • Feb 23, 2021 7:53am Feb 23, 2021 7:53am
Quoting turnip15
Some one asked why I drew in the Look Left lines on the Dax. In this UK afternoon ( US open) dax trade, I looked at the 5 minute chart and the one minute and compared look left or consolidation lines. Isn't always so neat but keeps me focused on areas I think I should focus on and results in less lines. Doesn't always work which is why we have stops and money management. {image}
And now price has bounced around within those lines and I suffered one small loss for a short but then price left the top line and is hesitating around the 50 level
( beloved by Dax)
Attached Image (click to enlarge)
Click to Enlarge Name: DaxPM1550.png Size: 447 KB
every Saint has a past. Every Sinner has a Future
  • #4,317
  • Feb 24, 2021 7:17am Feb 24, 2021 7:17am
Quoting LauraT
{quote} It can be a problem, especially if you're only trading forex. But definitely should be more than 1 or 2 opportunities a day so perhaps you do need to revisit your selection process.

Hi Laura

Thanks very much for a very illuminating thread. Lots of great ideas here.

Could you say a bit more about how you narrow down your selection of what markets to watch, apart from the obvious news avoidance? Do you look at composite RSI? relationship to open/adr lines? Something else?

Many thanks in advance.
  • #4,318
  • Feb 25, 2021 5:15am Feb 25, 2021 5:15am
Quoting cjm340
{quote} Hi Laura Thanks very much for a very illuminating thread. Lots of great ideas here. Could you say a bit more about how you narrow down your selection of what markets to watch, apart from the obvious news avoidance? Do you look at composite RSI? relationship to open/adr lines? Something else? Many thanks in advance.
Hi,

Apologies - just seen your post.

I mainly trade indices/oil/gold these days so I'm a little out of practice when it comes to finding forex opportunities.

However, you could use Hanover's dashboard to alert you to opportunities or you could just eyeball charts.

Below is an example of the type of price action that is easiest to trade - that of a persistent trend. I've marked the types of areas where I'd look to have entries.

Attached Image (click to enlarge)
Click to Enlarge Name: NZDUSDM5.png Size: 46 KB

The main thing is to find markets where the direction of travel is fairly obvious. If you have to spend too long working out whether you should be long or short a market, it's best avoided.

The actual methodology of which tools you use to select candidates is an individual matter but I'd say a good starting point is to look for instruments where composite RSI is above 60 or below 40. That will assist you in skipping those marginal markets.
  • #4,319
  • Feb 25, 2021 5:57am Feb 25, 2021 5:57am
Thanks for the informative reply, much appreciated.
  • #4,320
  • Feb 26, 2021 11:31am Feb 26, 2021 11:31am
Today was a good day to be a bear.

Over 1700 points banked across various instruments. Selection below.

Attached Image (click to enlarge)
Click to Enlarge Name: GOLD-sbM5.png Size: 28 KB
Attached Image (click to enlarge)
Click to Enlarge Name: UsaIndSb321M1.png Size: 40 KB
2 traders viewing now