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Question to Soultrader

  • #1
  • First Post: Dec 3, 2007 9:22pm Dec 3, 2007 9:22pm
Hi Soultrader,

I was trying to post on "Soultrader's Clinic", but I am not allowed to do so for I didn't trade those 1000x trades with real money yet. I am demoing for 3 months now and probably this makes me a newbie. But still, I am a good listener and analyzer.

I've red a book on technical analysis and followed your comments and also that of other authors. But still I've got some questions, can I address you with this questions here please?
  • #2
  • Dec 3, 2007 11:48pm Dec 3, 2007 11:48pm
What exactly does the phrase "buy strengths and sell weakness" mean? Anyone any ideas?
  • #3
  • Dec 4, 2007 3:07am Dec 4, 2007 3:07am
You need to PM him to get this posted in his clinic, unlesss he sees this... And to PM you now need 15 posts.

Buy strength simply means buy when you see a pair is on the up, sell weakness, sell it on the way down. Usually strength indicated by higher highs.
  • #4
  • Dec 4, 2007 5:21pm Dec 4, 2007 5:21pm
Quoting Fadetobla
What exactly does the phrase "buy strengths and sell weakness" mean? Anyone any ideas?
Hi, if you read through his clinic thread he does answer your question, but it is a few pages in so will take you a time to find it. It is concerning his own approach of trading trends, namely up-trends are confirmed when you can see the strength so buy, similarly down-trends are confirmed when you can see the weakness so sell. And then ride the trend until it is obvious that it has broken. He also uses very low leverage. Reading the whole thread will be time well-spent.

Cheers
Minesweeper target: 284
  • #5
  • Dec 4, 2007 7:17pm Dec 4, 2007 7:17pm
Buy on strength, means do not try to fish for the bottom. If it drops below a certain point, it's currently weak. Buying on strength means that prices have reversed and looks poised to move upwards. So in other words, that adage means buy and sell the middle of a trend. In a nutshell.
  • #6
  • Dec 5, 2007 8:19pm Dec 5, 2007 8:19pm
Dear fellow traders - triphop, Primate, JodyOng!!!

Thank you very much for your kind help, you guys are great for taking your time to answer my questions.

I must confess though, letting your profits run is easier said than done because the question of "how far" inevitably arises. I have an advantage though, as a newbie, I'll make the right approach habit so I'll be on the right side from the very beginning: I'll let the profits run until it gets clear that the trend has changed.
  • #7
  • Dec 5, 2007 8:22pm Dec 5, 2007 8:22pm
Quoting JodyOng
Buy on strength, means do not try to fish for the bottom. If it drops below a certain point, it's currently weak. Buying on strength means that prices have reversed and looks poised to move upwards. So in other words, that adage means buy and sell the middle of a trend. In a nutshell.
Dear JodyOng,

I was thinking whether I could interpret it with the phrase "trend followers don't predict, they follow" - so thanks to you, I now see that my interpretation was correct. Nutshell: if you see an uptrend then just buy, don't try to predict the next retracement or reversal, if you see a downtrend, just sell.
  • #8
  • Dec 5, 2007 8:44pm Dec 5, 2007 8:44pm
Quoting triphop
You need to PM him to get this posted in his clinic, unlesss he sees this... And to PM you now need 15 posts.

Buy strength simply means buy when you see a pair is on the up, sell weakness, sell it on the way down. Usually strength indicated by higher highs.
triphop,

Excellent post for being easy to understand and concise, however, just a small correction - strength is indicated by higher lows rather higher highs, ok? Cheers my friend.
  • #9
  • Dec 7, 2007 4:03pm Dec 7, 2007 4:03pm
Quoting Fadetobla
.... Nutshell: if you see an uptrend then just buy, don't try to predict the next retracement or reversal, if you see a downtrend, just sell.
Actually, that is a very good way of putting it!
Minesweeper target: 284
  • #10
  • Dec 10, 2007 1:00am Dec 10, 2007 1:00am
Dear fellow traders,

There is one question that bothers me most, it relates to proper drawing of S & R levels. It might provide useful if I just describe how I set my S & R levels and hope that someone will correct me if I am wrong.

For simplicity lets just consider an uptrend on a H1 chart.

What I do is usually to go back in time, as far as I can on a D1 chart and draw a continues line (I use MT4) on highs and lows. Then I gradually go forward in time to check whether some of this lines also go through other highs and lows in the future time. Those lines (S & Rs) which go through not just one but several (2 and more) highs and lows - I consider them as important and leave as they are while delete the rest.

Is that ok?
  • #11
  • Dec 11, 2007 3:53am Dec 11, 2007 3:53am
Hey Fadetobla,

Higher highs and higher lows - on the up
Lower highs and lower lows - on the way down.

We're both right...

S&R levels - this explains far better that I could hope to
  • #12
  • Dec 17, 2007 10:07pm Dec 17, 2007 10:07pm
triphop,

Thanks for the feedback. Sry for not being able to respond sooner.

Cheers,


Fade
  • #13
  • Dec 17, 2007 10:12pm Dec 17, 2007 10:12pm
Fellow traders,

When I started learning technical analisys 4 months ago, I've started with the very basics, that means I had covered S&R, some basic patterns and thats it. I was not able to further go into the sections of indicators, fibonacci etc. because I had been reading through Soultrader's clinic. And what he writes made sense to me. Now what I am concentrating on is pure PA and S&R.

Am an ignorant newbie who made a great shortcut? I mean, should I go through all this mess with indicators, mechanical systems, fibonaccies, pitch forks etc.? Or did I learn very fast?

Regards,

Fade
  • #14
  • Dec 20, 2007 1:37pm Dec 20, 2007 1:37pm
Crikey, depends on who you ask... you know what soultrader would say...

One thing I've definitely learned is you have to truly, truly believe what methods you are using to trade with, otherwise the slightest loss will make you doubt the method to your madness!
  • #15
  • Dec 20, 2007 1:42pm Dec 20, 2007 1:42pm
Basic Fibonacci retracements, when used correctly, show their own S/R. It falls in the self fulfilling category. Anything that is fringe is likely hocus pocus. Do yourself a favor and use basic Fibs, minimal patterns, S/R, and that's it.
  • #16
  • Dec 20, 2007 1:48pm Dec 20, 2007 1:48pm
My question to SoulTrader is, "Are you the seller of the Hilda System?"
  • #17
  • Dec 23, 2007 10:31pm Dec 23, 2007 10:31pm
triphop,

Thank you for your reply. I think I get your point, even though my direction might be correct, I still need to acquire the "soft" skills as well:

1) NOT TO quickly give up your system and jump into some other system ('system whore'), but rather have some FAITH in it and stick to it for at least a year.

2) NOT TO overleverage (which requires discipline) etc etc.


JFX81,

Thank you for your reply. I must confess, its not that I just red what Soultrader said. I red through many articles, 1x book on technical analysis, and combination of this knowledge with my own common sense suggested me to check out Fibonacci's as well. So I was thinking classical TA + Fibonacci. At least I have something to study on now, otherwise I almost felt to know everything that is essential about trading.

Cheers and Merry X-Mass to you all. Hey SunTrader, my friend, Merry X-Mass to you as well.

Regards,


Fade
  • #18
  • Last Post: Dec 26, 2007 12:59pm Dec 26, 2007 12:59pm
Quoting Fadetobla
Fellow traders,

When I started learning technical analisys 4 months ago, I've started with the very basics, that means I had covered S&R, some basic patterns and thats it. I was not able to further go into the sections of indicators, fibonacci etc. because I had been reading through Soultrader's clinic. And what he writes made sense to me. Now what I am concentrating on is pure PA and S&R.

Am an ignorant newbie who made a great shortcut? I mean, should I go through all this mess with indicators, mechanical systems, fibonaccies, pitch forks etc.? Or did I learn very fast?

Regards,

Fade
Hiya, and a happy Christmas to you too.

Indicators are useful tools to have under your belt. There are so many that I suggest you read about some of them. If you look carefully at ST's clinic he admits to using them occasionaly for supporting the decision process. You will find around the threads of FF that a few are regularly employed, so it will be useful to know a bit about those indicators when trying to follow a thread.

The reason for looking at only some is that you are not aiming to be a professor of trading techniques, you are aiming to make money (I assume). Also you are learning to trade in a way that suits yourself, so you need to feel comfortable with the indicators you choose. There are a great many to read about here http://www.incrediblecharts.com/tech...indicators.htm and the descriptions are fairly easy to get one's head around. If you want more detail then use Google (or similar) to digger deeper.

The Pitchfork, I discovered this first in the threads of FF. It seems like a useful thing to know about. Whether or not you should use it depends upon whether it provides you with any more insight to the PA than you had before. I have to say that I have noticed myself moving away from indicators as a primary decision leader. I still use my favourites in conjunction with PA to plan my trading, but a big factor is the amount of screen time I have behind me now in understanding where the weaknesses are with the indicators I use.

Anyway, the outlaws have just arrived so I better go....
Minesweeper target: 284
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