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How would you trade this setup?

  • Post #1
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  • First Post: Sep 27, 2007 6:04am Sep 27, 2007 6:04am
Narrowing range on cable.. how would you trade this?

I wait for one of the trend lines to be broken convincingly, then wait for for a retracement back to the trend line. Price usually does retrace back. If it doesn't I stay out. This way I dont have to risk too many pips.. Any thoughts?
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Hi peterM,

I tend to wait for price to hit a trend line and then use my indicators to guage if the price is going to break the trend line or reverse its direction at the trend line.

If I was trading in a long market I would wait for price to hit a support line and then look at my indicators for a long entry point and vice versa if I was in a short market I would wait till price hit a resistance line.

So in this case I would wait until price hit a support line and then decide if price was breaking or bouncing of the support line with the indicators that I use.

The system I use is mainly designed for intra day trading, so even though I use the daily in my set up I trade using 15, 3 and 1 minute charts. Some of the guy's I trade with use it to trade in longer time frames but I tend to like to get in and out in a short peroid of time and sleep at night not worrying about what the markets doing.

Cheers Go Getter
Go Getter When Trading Its All About "WHO YOU ARE BEING"
I like that idea of waiting for a retracement back to the trend line for an entry. I assume you will place a limit order at this price? Very neat!
Quoting peterM
Narrowing range on cable.. how would you trade this?

I wait for one of the trend lines to be broken convincingly, then wait for for a retracement back to the trend line. Price usually does retrace back. If it doesn't I stay out. This way I dont have to risk too many pips.. Any thoughts?
follow the trend of higher highs/higher low or lower highs lower lows, stop under or above prev bar.
Quoting peterM
Narrowing range on cable.. how would you trade this?

I wait for one of the trend lines to be broken convincingly, then wait for for a retracement back to the trend line. Price usually does retrace back. If it doesn't I stay out. This way I dont have to risk too many pips.. Any thoughts?
follow the trend of higher highs/higher low or lower highs lower lows, stop under or above prev bar.
i agree with the thread starter. wait for a break, wait for retracement. THen play the c in abcd wave
100% of traders are losers. Just that some win more than they lose!
Quoting Mr demark
i agree with the thread starter. wait for a break, wait for retracement. THen play the c in abcd wave
You talking Wolfe Wave? Many diff names for same thing.
The more confirmation one requires, the more one must pay.
Thanks for your replies guys.. Very interesting to see how other people trade that kind of setup.. Price is currently around my upper trendline. I am also not sure what you mean by abcd wave mrdemark, could you explain I'm interested?

Cheers guys
Hi peterM,

I'm assuming what Mr demark is talking about is the A,B,C,D method in which you find point A then find point B and work out the difference btw A & B and then work out the levels where C may be eg if the distance btw A & B is 136 pips then you workout the 38.2% (which would be 52 pips), 50% (which would be 68 pips) and 61.8% (which would be 84 pips) retracement levels which would allow you to determine point C, then there is a couple of ways you can then go but one of the most common is to then find D by the next formula Target 1 0.618*(point B-point A) + point C
Target 2 point B-point A + point C
Target 3 1.618*(point B-point A)+ point C
Targets 1,2 and 3 will give you point D, then to get the next point you repeat the system where point B becomes point A and point C becomes point B and so on.
I personaly don't use this system as it can take too long for intra day treading.

Cheers Go Getter
Go Getter When Trading Its All About "WHO YOU ARE BEING"
This is the correct answer !!!!!!!!!!!!! This is the man to listen to...

Quoting Mr demark
i agree with the thread starter. wait for a break, wait for retracement. THen play the c in abcd wave
i'd suggest lookign at correlations with the dollar index to give a better heads up
Quoting Go Getter
Hi peterM,

I'm assuming what Mr demark is talking about is the A,B,C,D method in which you find point A then find point B and work out the difference btw A & B and then work out the levels where C may be eg if the distance btw A & B is 136 pips then you workout the 38.2% (which would be 52 pips), 50% (which would be 68 pips) and 61.8% (which would be 84 pips) retracement levels which would allow you to determine point C, then there is a couple of ways you can then go but one of the most common is to then find D by the next formula Target 1 0.618*(point B-point A) + point C
Target 2 point B-point A + point C
Target 3 1.618*(point B-point A)+ point C
Targets 1,2 and 3 will give you point D, then to get the next point you repeat the system where point B becomes point A and point C becomes point B and so on.
I personaly don't use this system as it can take too long for intra day treading.

Cheers Go Getter
Thanks for the reply.. much appreciated :-)
Hi peterM,

no problems

Go Getter
Go Getter When Trading Its All About "WHO YOU ARE BEING"
Now that you see how most would probably play this formation you have a better idea of what setup to look for don't you.....

There are alot of technical traders out there and you need to be taking advantage of their mistakes. Indicators are only as good as your understanding of them within the context of the market. A doctor cannot simply make a diagnosis by a couple of symptoms alone....In the market there are many putting good money behind such frail findings.....you need to spot them quickly...understand what they are looking at and what they are thinking and be ready to profit from their errors as they tend to cluster stops in the same general areas.

Just an Idea
Man who scratches ass should not bite fingernails
  • Post #16
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  • Last Post: Sep 30, 2007 4:05pm Sep 30, 2007 4:05pm
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  • Joined Jun 2007 | Status: Be yourself, everyone else is taken | 2,734 Posts
if in dout stay out, there are planty of pairs to trade that are trending nicely, so why TRY to trade this when you can simply trade another pair.

Personally i follow 4 pairs GU, AU, AJ, EU. if one is not clear try the other, also if you have setup indicators create a template that can be easily added to any pair.

generally i trade the trend but i also, run at least one other system as posted on FF to study, so currently i am also following GJ.

how many pairs you say 5, to much info. no not really, each pair has trend lines for weekly, daily and 4h. if the pairs is moving good within a strong trend i trade. at this time i am out of the GU due to its triangle formation and i am waiting for it to decide where to go.

I am open in AU AJ EU and GJ.

in essence my reply to your question Peter is I wouldn't trade this, i would trade AU as it still has more room to go up whereas EU is closing in on it's top.

Just my view. Happy trading
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