Peaks and Valleys (Trading Naked) | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Peaks and troughs in an array 4 replies

Peaks and Troffs 90 replies

S&P 500 / ES Futures - Fine tune troughs and peaks 2 replies

Bow's trading journal 2 (almost naked trading on m5) 26 replies

Intraday peaks and troughs 0 replies

Attachments: Peaks and Valleys (Trading Naked)
Exit Attachments

Peaks and Valleys (Trading Naked)

  • Poll

  • Do you trade naked?
  •  
  •  
  •  
  •  
  • #1
  • First Post: Dec 26, 2007 11:05am Dec 26, 2007 11:05am
Peaks and Valleys (Trading Naked) is nothing new… just a way for you to place your trades in the right direction. Try and follow along and if you have questions, ask me.

“The aspects of things that are most important to us are hidden because of their simplicity and familiarity.”

--Prof. Ludwig Wittgenstein

Think about this statement for a bit, before you even read what I’m about to write. Forget about forex and just think how many times you overlook the simplest of things in your life. The wheel for instance, where would you be right now had there never been a wheel?

You get the idea. Same goes with forex. You look at a chart and it is so familiar to you, are you really looking at it? Are you getting the most important aspects of the chart? If nothing else, what I’m about to write about will help you really notice your chart in its simplest form: naked.
Attached File(s)
File Type: pdf Peaks and Valleys.pdf   102 KB | 18,559 downloads
  • #2
  • Edited 11:14am Dec 26, 2007 11:11am | Edited 11:14am
Kevin:

I've always enjoyed your posts and journals. This looks interesting; I'll give a thorough re-read later today. You've probably seen this Pring article, but I'll post it here again, so people reading this thread can access it easily.

Keep up the good work!

Ed
Attached File(s)
File Type: pdf Pring_PeaksAndTrophs.pdf   181 KB | 8,389 downloads
Indicators are to Price as Newspapers are to Bloomberg.
  • #3
  • Dec 26, 2007 11:26am Dec 26, 2007 11:26am
You seem to test systems quite often.

Just curious but do have a staple system you trade?
  • #4
  • Dec 26, 2007 11:38am Dec 26, 2007 11:38am
Good Stuff Kevin.

What are you doing with pending orders that are not triggered? Thanks

Chris
  • #5
  • Dec 26, 2007 11:41am Dec 26, 2007 11:41am
Quoting boiseboy
Kevin:

I've always enjoyed your posts and journals. This looks interesting; I'll give a thorough re-read later today. You've probably seen this Pring article, but I'll post it here again, so people reading this thread can access it easily.

Keep up the good work!

Ed
Hey Ed,

Good to hear from you! Appreciate the positive contribution; had never seen that article before, but am well acquainted with the concepts. Always good to get another person's perspective so please give me some feedback later when you get a free moment.

Thanks,

Kevin

Quote
Do you trade one system in particular?
You seem to test systems quite often.

Just curious but do have a staple system you trade?

Hello acumen,

My systems fit my lifestyle. When I'm busy, I trade longer-term. When I can monitor my forex a lot, then I will trade shorter-term. It is true, I have released many trading methodologies knowing that every trader is different. Some are better than others, but a lot of it is relative to trader characteristics. Personally, I prefer simple systems, so that's what I create.

My staple system? Truthfully, it doesn't matter to me. I can use them all at once or none at all. It's more about knowing your pair and trading it well IMO.

Best of luck,

Kevin
  • #6
  • Dec 26, 2007 11:46am Dec 26, 2007 11:46am
Quoting Cmartin371
Good Stuff Kevin.

What are you doing with pending orders that are not triggered? Thanks

Chris
Hey Chris,

Thanks for stopping by. As higher/lower peaks and valleys appear, I usually just adjust the old orders to the new price locations. Does this make sense?

Basically, New peak/valley = cancel old orders and make new ones.

Let me know if this still doesn't make sense because I'm not sure if it's clear enough.

Thanks,

Kevin
  • #7
  • Dec 26, 2007 11:56am Dec 26, 2007 11:56am
The trade in the PDF is still going. A new valley has formed so I have cancelled old orders and moved stop up to just below the new valley area. I made a new order to be triggered short if my S/L is hit.
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot_4.png Size: 19 KB
  • #8
  • Dec 26, 2007 12:00pm Dec 26, 2007 12:00pm
Quoting kharvell
Hey Chris,

Thanks for stopping by. As higher/lower peaks and valleys appear, I usually just adjust the old orders to the new price locations. Does this make sense?

Basically, New peak/valley = cancel old orders and make new ones.

Let me know if this still doesn't make sense because I'm not sure if it's clear enough.

Thanks,

Kevin
Thanks Kevin....that explanation was crystal!
  • #9
  • Dec 26, 2007 12:04pm Dec 26, 2007 12:04pm
This is as simple as it gets. I like to work from Dailys and 4hr charts because I work full time. I will throw on some line charts when I get home and give it a whirl on those time frames! Thanks kevin!
  • #10
  • Dec 26, 2007 1:11pm Dec 26, 2007 1:11pm
Great and simple system once again Kharvell.
  • #11
  • Dec 26, 2007 1:17pm Dec 26, 2007 1:17pm
Thanks Kevin for the reply.
  • #12
  • Dec 26, 2007 3:11pm Dec 26, 2007 3:11pm
I like what i see Kharvell...

Very easy to spot on the eye. I'll have a look for my longer TF trades.
  • #13
  • Dec 26, 2007 5:56pm Dec 26, 2007 5:56pm
Quoting kharvell
The trade in the PDF is still going. A new valley has formed so I have cancelled old orders and moved stop up to just below the new valley area. I made a new order to be triggered short if my S/L is hit.

Kevin,

Did you set a buy order at the new peak to go along with your sell order on the new valley? Thanks

Chris
  • #14
  • Dec 26, 2007 6:06pm Dec 26, 2007 6:06pm
Quoting Cmartin371
Kevin,

Did you set a buy order at the new peak to go along with your sell order on the new valley? Thanks

Chris
Hey Chris,

You got it. It's not necessary to do it all the time, but if you want more trades then you got them to take. I personally did set a buy order at the peak you mention. My chart is below, good job

Regards,

Kevin

Quote
I like what i see Kharvell...

Very easy to spot on the eye. I'll have a look for my longer TF trades.

Hey melpheos,

Good to see you man! Let me know if you see anything interesting as I'll be very interested in your input.

Thanks,

Kevin
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot_5.png Size: 24 KB
  • #15
  • Dec 26, 2007 7:38pm Dec 26, 2007 7:38pm
Hey Kevin,

Sorry for all the questions. Are you placing your orders above/below the actual peak and valley for avg price? Or using the days high or low? For stop losses as well? Thanks for your time!

Chris
  • #16
  • Dec 26, 2007 8:22pm Dec 26, 2007 8:22pm
I was looking to use this same method for trading a while ago using the line chart. One question though, the line chart only depicts the close right? So what about the high of a candle taking out the peaks high (entering you into the trade), only to retrace and close lower (in which you'd be in the trade), making it look like the peak was never penetrated. I'll post a chart if you don't understand what I'm saying. Great method though.
  • #17
  • Dec 26, 2007 8:58pm Dec 26, 2007 8:58pm
Quoting kharvell
The trade in the PDF is still going. A new valley has formed so I have cancelled old orders and moved stop up to just below the new valley area. I made a new order to be triggered short if my S/L is hit.

kharvell.....so you're using the average price to trade ? is there any particular reason ? how about the min/max price on Oanda ?
  • #18
  • Dec 26, 2007 9:40pm Dec 26, 2007 9:40pm
Quoting Cmartin371
Hey Kevin,

Sorry for all the questions. Are you placing your orders above/below the actual peak and valley for avg price? Or using the days high or low? For stop losses as well? Thanks for your time!

Chris
What's up Chris,

No worries dude. You gotta learn sometime. My orders are around 3-5 pips above each peak and below each valley for average price. I'm going to talk more about my reasoning later for average price.

This should be alright for now.

Good luck,

Kevin

Quote
I was looking to use this same method for trading a while ago using the line chart. One question though, the line chart only depicts the close right? So what about the high of a candle taking out the peaks high (entering you into the trade), only to retrace and close lower (in which you'd be in the trade), making it look like the peak was never penetrated. I'll post a chart if you don't understand what I'm saying. Great method though.

Hey scottymoll,

What's up? Appreciate your comments and questions here! This is a good one... If you lose, you lose. I venture to say that 99% of systems WILL FAIL if they have a S/L. How much they fail is what we all strive to minimize. If you were to get a false breakout, you'd be in that direction until your S/L was hit, which case you would trade in the other direction. The beauty with this system is that when you're wrong, you keep getting chances to enter back in the right way.

Best of luck,

Kevin


Quote
kharvell.....so you're using the average price to trade ? is there any particular reason ? how about the min/max price on Oanda ?

Hey findcount,

Thanks for stopping by and good questions! To be quite honest, it doesn't really matter what you use. It's the concepts that are more important. Higher high's for uptrend, lower low's for downtrend. When you're talking about the 1-hour timeframe graphs won't change THAT much from min/max to average to close. Maybe on the daily or 4-hour charts this would be more of an issue. I'm just putting the ideas out there; feel free to run with them.

Kind regards,

Kevin
  • #19
  • Dec 26, 2007 9:49pm Dec 26, 2007 9:49pm
scottymoll pay attention here

So that EUR/JPY trade I was long in from that example got stopped out today and therefore I was also short for a little bit. It was actually one of those scottymoll mentions where it moved below the valley, but then closed back up. No worries though; made 78 pips earlier, lost 20 pips, and am now back long again currently down 9 pips.


Also, I have entered long GBP/USD and GBP/JPY. It is these two pairs plus EUR/JPY that I intend to test this system on in this thread.

Cheers
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot_6.png Size: 24 KB
  • #20
  • Dec 26, 2007 11:07pm Dec 26, 2007 11:07pm
Quoting scottymoll
I was looking to use this same method for trading a while ago using the line chart. One question though, the line chart only depicts the close right? So what about the high of a candle taking out the peaks high (entering you into the trade), only to retrace and close lower (in which you'd be in the trade), making it look like the peak was never penetrated. I'll post a chart if you don't understand what I'm saying. Great method though.
That's a valid point. Price very often hits the same level twice (or more) only to bounce off. Just look at any decent consolidation. In those situations, we would have a trigger every single time because the high/low is invariably higher/lower (as the case may be) than the average or median. What if we were to approach this with a little more caution?

Eg.. Find your peak/valley. If it's a peak, find the High that corresponds to that peak. Only enter when price exceeds that High by a certain amount of pips. Where it's a valley, find the Low that corresponds to that valley. Enter short if price has gone a certain number of pips below that low. To illustrate it, you can use a standard candle chart (for your highs/lows) and plot an SMA with a period 1 and method "median" to help you find those peaks and valleys. Yes, we'd lose some pips but we woulnd't be getting caught out on every single range.....

Just my 1.5 pips

Lighty

ps. I even have an idea for some names. What if we were to call those Peaks "Resistance" and those Valleys "Support"?
"The market will rally from this or lower levels"
0 traders viewing now