The System III (Oh no!)

Nice view!

Than higher TF - less noise

Unfortunately - this time it was losing trade. Let's wait for another opportunity.

Hello traders!

Took this trade this morning. (For me it is morning now in Ukraine).

Bail out this trade.

First of all i want to thank feb2865 for giving a true insight of the market. Thanks him im profitable, now i see markets as an ATM 24/5 LOL ; what he says on this thread is pure gold so listen really carefull. Just by trading price checking support and resistance and a mentality of not getting anxious to enter a trade or to cut a winning trade fast will change your way of playing this game. Just dont move your SL Or TP that you planned and everything will be fine ;D. Being said that ill show some trades i took today -- Sry for my bad english ;(

Hello traders!

Would like to post here my current short EUR/USD trade.

This trade is based on pullback off 1.3680 resistance area.

Initially SL was at 91. Then as trade was developing I moved it a little tighter to entry point as the market was going in my favor. Still it is not at BE so I still could loose at this trade, but the risk is reduced already.

EDIT: BE

Hello Feb!

It is nice to see you here again!

Thanks for new interesting chart!

If I get it right - here is how we should entry based on this picture.

The one where you write NO TRADE is because the pullback is too close to the possible target. In other words there is no room for trade.
Or because of the FOMC Meeting Minutes I think.

The last trade off resistance (possible short) is not good because of late time of the day. Low volatility.

And if I am not wrong the levels are coming from previous days.

Here is the chart (30 min).

If my view is right I could add to my previous posts something.

Your yellow arrows (or checks - I am not sure what right word is) I did mark with numbers.

So...

1 - lower low.
2 - higher high after double low.
3 - lower low.
4 - no breaking of previous little low 1.3638.

The "No Trade" area - I avoid this long -ass candles. Risk/reward is out of my reach, most of the time. Whenever you see a move like this, it's what we used to call on the floor "dumping money" institutional money for whatever the reason getting rid of dollars, like this case (long). In my case, let's say you have a bar of 40 pips long - you place your cover 2-5 pips short at the low of the bar - Shooting for 80-100 pips target, although is possible, is a long shot and your trade could get stranded due exhaustion. In other words, market could move 40 pips (1:1 RR) or even less, and reverse, who knows - the so called "overbought" "oversold" concept, something ambiguous but yes, there's market exhaustion sometimes. The time of the day it's another factor. You need the measure how long volatility will take your trade to profitland, or lose.

RR: is not only about how much your're risking but what are the chances of your trade to develop under normal market conditions.

About the last trade, I personally took it and as we speak, I close it in profit. This requires another mindset, to be honest - normally I'll do it with light load and another set of rules.

There's two situations that, you will always find on any markets, at any timeframe- Areas of support and resistance and fractals - V Formations - Fractals are more risky, as you don't have validation of the market for the reversal, like support and resistance. Therefore, what I do is to wait a bit more to see a push up/down or maybe a pullback.

That's pretty much the charts in a nutshell - all in trading should be mechanical - you pull the charts, check the market - you're trade is there? take it...is not?, then don't Trading is boring, it's just a job you do.

I prefer, sitting on my couch, a glass of merlot, some fine cheese and ham, and watch the worldcup ....ahhh those damm germans!!! heheheheehehe...

Good day, Feb!

Thank you for explanations!

So - if I get it right - fractals (V) without support and resistance - are more risky.
Fractals (V) in combination with support and resistance - are more likely (at least with validation of the market).

And what a trader should do is just to work out some set of mechanical rules and just wait for these setups. Like for instance - "I would short the market only if I see the up move which stops in area of resistance and then first push down, and after the first pullback I'll goshort".... Right?

Thank you in advance!

May be we would have another V formation at support are here (the last arrow)

Exactly Dim!

In kindergarden words - for the newbies - market is pushing up but returning from several common areas in the charts - the "experts" call that "Resistance".....again children how is that call?" ..."RESISTANCE" market is pushing down but returning from several common areas in the charts - the "experts" call that? "Support".....again children how is that call?" "SUPPORT" -

Validation consist on many times the market has reached a point and fail to continue...

Fractals - normally reversals consisting of 1-2 bars turning the other side - kinda big normally there's a third bar involved and looks like a V formation....again children how is that call?..."FRACTALS"

You place your stop-loss at the other side of the move - away from last market price to minimize a fakeout.... I dunno maybe 5 -10 pips would be reasonable.....if you choose for 10 pips. profit target must be 22 pips - remember we need to pay the landlord (1-2 pips)..that is 2:1 RR for every dollar you put at risk you get 2 in return...

A hint of experience coming from an old fuck like me - yes, let the market show the hands - wait - see a path of resistance/support,a fractal.... wait for a push on that direction - maybe 1 bar going...maybe a pullback ...then you trade....maybe a bit late but risk are greatly minimized....


Trading takes.....creativity....you see me using words as "maybe" a lot...because it is like that....

There you go......for you my dear friend DIMM...and for everyone else....you don't need to be so complicated. stop buying shit like"The secret formula of trading" ...or "Forex for newbies" "how to be rich in trading"or any stuff like that.......here you go, have it for free, copy and paste, have it printed in your desk somewhere, READ IT EVERYTIME YOU TRADE" and go ahead and make a living.....

Am I too late for learning with you, Feb, and the others around here?

I started a month or so ago in Forex, and read some of your System II and Journal, but ended up here...

Trying to read everything I can!!

great stuff Feb