The System (Irony included)

Quoting Trader_V

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I noticed there was a little confusin over what Feb is trying to explain. I am not at all trying to steal your thunder Feb just offering my 2 cents on my entry style. I am a bit more conservative with my entries. I do not like to fight the power (the trend) so I go with the flow and enter on the most basic of all formations 1-2-3. Trend continuation. This is what Feb has been advocating here along with using price action. Follow the trend and let the market prove itself and show you entry areas and exit criteria based on price action.

I have marked up the GBP/USD with 1-2-3 points and where my entry and stops had gone. There was 332 pips in between the first enry and the last possible entry. You could have added on to your positins as the market continued to move in your direction.

I did not cherry pick this picture this is the current market condition and this is how I trade part of my system.

If you don't understand these formations and how to use them find a good book like Pring on Price Action or something and study it until you can spot these things in your sleep.

It's not magic folks just look at the charts it's right in front of you.

Hope this helps someone a little.

Nice thread Feb!

Trader_V

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Quoting feb2865

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Great explanation!! exactly what I am talking about

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Quoting RickW00716

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I have been quietly following this thread from the beginning and I want to personally thank you feb2865...It is not often that someone professional will selflessly devote his time to help others become more profitable.

There is a site called "Candlesticker.com" that shows different candle patterns and ranks their reliability...Do you use any specific pattern(reversal or continuation)when you have the pullbacks to confirm them?

thanks again

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Quoting feb2865

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Thanks for posting Rick

Actually I keep my heads up for spinning tops/hammers. I don't trade off them, just I used them as a warning. If I see a hammer on a daily chart I still go lower to check the quality of that pattern. Looks can be deceiving you know.

You'll notice that I don't directly endorse any type of technique AKA candlesticks, trendlines, pivots etc. I do mention them and I think they're useful .... I use some of them in a strangely unconventional way like fibos...

but they're just guides...like a roadmap. You still have to drive the car.

Price is king. I like my charts plain.......I trained my naked eye to see the market as it is. I don't have any bull/bear/pig/sheep bias on the market.


Takes time but it's worth it. It's not difficult, just take a little bit of determination to make your charts clean...don't you agree??


Peace

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Quoting RickW00716

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I most certainly agree!
How do you trade(or not trade) and identify trading ranges?

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Quoting Trader_V

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It's not magic folks just look at the charts it's right in front of you.

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Quoting feb2865

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Naked chart on EUR-USD

Could anybody tell me what's going on????

How difficult is to know what's going on there??

Make a list of what's happening....notice the corrections, size of the candles etc.

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Quoting fiveshorts

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First, I appreciate the bones you're throwing us here... I for one want to be able to see these opportunities as clearly as you guys do. So at the risk of exposing my thick-headedness, could I ask you to clarify whether the idea on the GBPUSD chart you posted was to stay in the trade from E1 to E7+ (and tough-out the retracements), or are you getting out on each retracement (like feb2865) and reentering on the continuations.

The way I read it, feb2865 is reading the price action and getting out on a valid pullback, then waiting for a candle to take out it's predeccessor's high and using that as a re-entry point.

I mean, are your 'E' points as I've marked them (with yellow), or are they at the '2' of your 1, 2, 3s?

Again, I'd rather be called stupid but get it, than just be too stupid to ask...

many thanks.

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Quoting fiveshorts

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could I ask you to clarify whether the idea on the GBPUSD chart you posted was to stay in the trade from E1 to E7+ (and tough-out the retracements), or are you getting out on each retracement (like feb2865) and reentering on the continuations.

Ok my trading style is slightly different than that of Feb's. While he enters the market before I do (on a reversal sign at the end of a retracement) and exits at the sign of a revesal in the other direction.

For instance:

Feb would likely be entering the market point S1 which for me is wher I place my is my point 3. This is a bar that shows a weak downward push and a strong upward close indicated by the long shadow. Just so happens in this case the high of that bar is very near my point 2 but this will not always be the case. After entering he will ride the market up and wait fr a reversal sign in the downward direction Take note of the candle marked near E6. The exact opposite of the candle which decided the entry in to the market.

This my friend is price action. Also notice he bar before was a neutral bar. The open and close are very close to one another and darn near smack dab in the midle of the bar. This is a heads up signal saying "whatch out something may happen" The next bar is a reversal bar. Notice also how the market continues upward. We never really know where the market will actually go that's why this is called SPECULATION.

Oh and one more note. on a 1-2-3 formation the number 3 become the new number 1 in a continuing trend. And when the market reverses the previous 2 becomes the new 1.

The way I would have traded this is to stay in and let the larket stop me out with a trailing stop and entering addiional positions alng the way.

So I enter at E1 place a stop at S1 the market creates another 1-2-3 I have not been stopped out and I place another entry at E2 and one entered I move both of my stops to S2 and so on and so on. This is how I DO IT. This does not mean it's right it does not mean it's wrong it means this is my style adopted from those who have gone before.

FEB if I have mistated anything here please correct me I am only speculating part of your style here.


I hope this is making some sense. I feel the ned for a second cup of coffee...lol

I mean, are your 'E' points as I've marked them (with yellow), or are they at the '2' of your 1, 2, 3s?

My E points equal entry points. Rememer I said in my previous post i am a bit more conservative. Feb may be a bit more aggressive in his trading style which each have our own ways.

I enter at the break of point 2. This give me plenty of time to do the math for how I should size my position based on predetermined entry and stop criteria.

For example:

Only risking 3% of a 10K account gives you $300.00 to risk on he trade.

The distance from E1 to S1 is 110 So I know that my position size can be 2.72 (on a mini account) But I like round numbers so I make it 2.50 Yes $2.50 per pip. I hope you get the idea here. Lt me know if you don't I can try and explain a bit better.

Again, I'd rather be called stupid but get it, than just be too stupid to ask...
many thanks.

Good attidue my friend. Many bull headed individuals who think they know everything will refrain from asking so please continue asking questions. Believe it or not it helps us who do see some of these things a bit clear to help those who don't. It assists us in keeping up the skills and eyeballs

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