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The System (Irony included)

  • #41
  • Edited 1:41pm Nov 6, 2007 1:40pm | Edited 1:41pm
Here's where I get tied up in a knot...

This is the AUDUSD 4hr chart for today. I can see the 'obvious' entry points at A, B, C, D & G. But at E & F would I wait for the candle to close? If so, both would've been losers.

If these are not valid entries, what differentiates them from previous candles that took out the highs of the previous candle? Is it that the swing low at Z defines this whole section as a correction to the bigger uptrend — a correction that we should wait to be 'taken out' by a move above some other 'high' like, say, at Y?

Thanks for being able to have this discussion :-)
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  • #42
  • Nov 6, 2007 2:00pm Nov 6, 2007 2:00pm
...and I'm assuming, feb2865, that you get out of trades during each pullback, waiting for the continuation signal to re-enter? If so, what do you use as a definition of a pullback? I mean, at what point do you get out? After one bear candle? Two?
  • #43
  • Nov 6, 2007 2:09pm Nov 6, 2007 2:09pm
I'll be up in a moment.....stay put
Peace
  • #44
  • Nov 6, 2007 2:33pm Nov 6, 2007 2:33pm
Quoting mrjtdude
I have never felt so excited in my life .......i feel like i have won the lottery lol...i want to share it but i do know that if many use one thing then that one thing becomes useless...All i can say is use two time frames one for your trend and the other for entry point....and it's ALL price action...

wishing the best to all
you sound like you have come across something good mate. probably what all the successful traders are doing. give me a clue then i can study it...please
I just wanna have some fun (and maybe make a few green pips along the way).
  • #45
  • Nov 6, 2007 2:40pm Nov 6, 2007 2:40pm
Fiveshorts I'll answer your question in a moment

Guys, there's no need to be in the shambles because of a time frame thingy...I prefer longer time frames. It's me. I find anything lower than 4 hr is noise. You trade whenever you feel comfortable. Just don't get fooled by noise. A crude reality of lower time frames is that you're more exposed to news and noise. But it's up to you. I like my life easy. If you need to be constantly on the lookout for report and stuff, well then trade off lower time frames...whatever fit's your style.

I brought this thread to have a nice place to discuss price action. But you need to be discretionary in your trading. The rules are simple an straightforward. The whole idea is for you guys to have a clear and unbiased view of the market.

Fractals can be deceiving. That's why I need for the market to "confirm" the move for me in order to get in.

Fiveshorts - in my way of trading - a pullback must have a reversal candle for me to get in. I could see 1 2 5 10 "down" candles, to me it doesn't matter. That just keep my heads up. Nobody knows how far the market could go so it's better to stay put. I must see a reversal and then a continuation.

About profit taking, well depending on market conditions and money management rules, I scale in or out at every correction. But I am not going to discuss this in here as I stated on the first post. There's nothing right or wrong it all depends on your risk tolerance and time horizon. As for some unfortunately, they need to be pulling the trigger constantly. As I said in an earlier post, that's a recipe of disaster. Please don't confused this with timeframes. It's more on the psychological side.


Corrections has a lot of meanings for everyone. It could be scared money, it could be profit taking etc...you are trading off the charts so basically you don't care. As long as you have your stops in place, you just go with the flow. Make your life easy.

Fiveshorts, look at the big picture. Not just the pullback, be on the lookout on what happens next.

Also, I am on the lookout for periods of consolidation. Just check on the last chart I posted and tell me what happened today.
Peace
  • #46
  • Nov 6, 2007 3:08pm Nov 6, 2007 3:08pm
Quoting feb2865
Clockwork

About timeframes, I started this thread because I trade off daily charts. O f course you can correlate any time frame you like. Just make sure "noise" won't give you false signals. I personally think anything less that 4 hours is noise, especially in forex. It's something you need to see for yourself.

I don't like to tell people "this doesn't work" I like for the to experience by themselves. Hopefully not in a live account.

Yes trading should be boring. Well, some traders have the necessity to pull the trigger all the time, because subconsciously they MUST be at the market constantly in order to make a living. They end up chasing the market and forgetting about their strategy.That's a recipe for disaster.

If you want to be in profitland, you need to be the predator.....like a cat moving the tail in front of a mouse. Wait for the right moment to jump in. It is sometimes boring to be the predator...very boring...but it works...just try it.

Here's a classic - futures - S&P 500 (E-MINI'S)

I place very strategically resting order with a small limit 2-4 ticks above below pivot points...why??? because the market reacts most of the time when it get to the pivots. There's plenty of stop orders to be hit and ...somebody has to be at the other side don't you think??? and even better, poor souls buying on breakouts...oh boy it becomes a carnage on the pits...

I call this a bread and butter strategy.....not to be confused with any other

That's a truly example of be a predator.
Great post, and yes....anything under 4 hours is noise, as I have proven to myself numerous times.

Clockwork
  • #47
  • Nov 6, 2007 3:08pm Nov 6, 2007 3:08pm
Quoting feb2865
in my way of trading - a pullback must have a reversal candle for me to get in. I could see 1 2 5 10 "down" candles, to me it doesn't matter. That just keep my heads up. Nobody knows how far the market could go so it's better to stay put. I must see a reversal and then a continuation.
I understand that, and thanks, but I guess what I'm asking is — if you're already IN a trade (let's say long), how much of a reversal does it take to make you decide to scale out (or close out) to wait for the continuation?
  • #48
  • Nov 6, 2007 3:16pm Nov 6, 2007 3:16pm
For instance...
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  • #49
  • Nov 6, 2007 3:19pm Nov 6, 2007 3:19pm
Feb

Can't we just work through a few examples? Just to get the idea from start to finish. I'm also very excited but it seems I'm still missing a lot and I think other people too. Thanks for your patience and willingness to help.
  • #50
  • Nov 6, 2007 3:25pm Nov 6, 2007 3:25pm
Quoting farimir
Feb

Can't we just work through a few examples? Just to get the idea from start to finish. I'm also very excited but it seems I'm still missing a lot and I think other people too. Thanks for your patience and willingness to help.
I agree, to a pro trader like yourself feb all this probably seems so easy and simple to understand but a few charts and examples would be great.
I just wanna have some fun (and maybe make a few green pips along the way).
  • #51
  • Nov 6, 2007 3:27pm Nov 6, 2007 3:27pm
Some guys get out at your set pips limit, and get back in when price reversed and continued passed your last exit, or when price just passed the last reversal point.
  • #52
  • Nov 6, 2007 3:30pm Nov 6, 2007 3:30pm
Quoting fiveshorts
I understand that, and thanks, but I guess what I'm asking is — if you're already IN a trade (let's say long), how much of a reversal does it take to make you decide to scale out (or close out) to wait for the continuation?
I use the same pattern as if I decide to go in - a reversal/confirmation candle, When that happens, I take some profit and leave some compounding. But you don't have to do that you can close all take some and get in on the next ride. There's room to play.

or I just get stopped out hopefully in profit. I believe as long as you follow the trend you'll be alright.

Go back at the beginning of the thread there's some stop-loss rules. They play an important role in my trading. You can apply them to any timeframe just be aware of the noise.



If you have any doubts just tell me. I am willing to help
Peace
Peace
  • #53
  • Nov 6, 2007 3:32pm Nov 6, 2007 3:32pm
Quoting fiveshorts
For instance...

exactly
Peace
  • #54
  • Nov 6, 2007 3:35pm Nov 6, 2007 3:35pm
Guys -

What we have here is someone who obviously gets it, and is trying to teach others.

The problem I see arising already is that we have random posting, and this is what always kills a thread.

Please, let's stick to the subject at hand. This thread is not to go on and on about time frames, and which one is better. (There are plenty of argument threads out there to post in.) And it is certainly not a thread to talk about other "systems" and how great they are. (Especially when they aren't even divulged.)

I think what he is saying is that he feels more comfortable trading daily candles. And, I agree. Are we right? YES. FOR US.

 But one thing it allows me to do is have a life. TRADE TO LIVE, NOT LIVE TO TRADE. (Best advice I ever received. Before that, I was scalping all day, and therefore wasting most of it in front of a computer.)

I am sure this post is opening me up to some abuse. Which to be honest, is fine. I am just stating the obvious. He has something to teach, it's clean and simple, and wants to share his wisdom. Let's not cloud it up with a bunch of non-sense.

If you found a great system, congrats. I am truly happy for you. If you want to trade the millisecond chart and can do it....cool. But at the end of the day, if we all make some money, that's what it is all about.

Good trades everyone.

Clockwork
  • #55
  • Nov 6, 2007 3:42pm Nov 6, 2007 3:42pm
LIKE THIS
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Peace
  • #56
  • Nov 6, 2007 3:44pm Nov 6, 2007 3:44pm
Thanks a lot for your comments clockwork!!!!
Peace
  • #57
  • Nov 6, 2007 4:20pm Nov 6, 2007 4:20pm
In the spirit of curiosity, not confrontation... :-)
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  • #58
  • Nov 6, 2007 4:26pm Nov 6, 2007 4:26pm
...because reversal candles are only reversal candles when they close, surely?
  • #59
  • Nov 6, 2007 5:15pm Nov 6, 2007 5:15pm
Quoting fiveshorts
...because reversal candles are only reversal candles when they close, surely?
yes absolutely everything must be done at the close
Peace
  • #60
  • Nov 6, 2007 5:29pm Nov 6, 2007 5:29pm
Quoting fiveshorts
In the spirit of curiosity, not confrontation... :-)
I am always happy to help

as a general rule I play consolidations in two ways,

1) If the market keeps going, I add to my position

2) If I see like two lower lows, then I might scale out

I used the word "might" because in that matter is definitely a discretionary call.

If is a shallow pullback you might scale out 1/2 or 1/4 ...it all depends on how much you have in and how much you want to get out.


or just close the entire position of you're micro-trading and go back at the next ride...the beauty of it is that you have the ball at your court.

You need to position yourself as what you want to accomplish in this business. Time horizon, profit targets etc.
Peace
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