The System (Irony included)

Quoting feb2865

Disliked

Hello guys

for all of you who has concerns about the current market situation

There's a lot of concern outhere and investors are parking their cash in dollars, gold and bonds. I believe big guns are preceiving this as a "bear market" and the panic is on the house. Whenever this happens, the dollar get stronger hence EUR/USD dives. How long wil it last??nobody knows for sure.

You trade what you see....if the trend is down - so go short

for those who trade futures - gold and 30yr bonds are sweet.

peace

Ignored

Quoting feb2865

Disliked

I haven't forgot about you guys on the options stop-loss strategy

Please stick around. I don't want to confuse a lot of people jumping in and out

I promise I will get into that very soon.

Please notice that on the reversal candle on the last chart I posted. , there's a V shape formation going on I should say most of the time ( a side note: there's not a sure -fire thing in any market ok?)

could that be a change of sentiment??? maybe...

you job is to enter as soon as you see that V formation....and place your stops and trail them accordingly

Don't be a fool and get on board thinking that a correction has ended. Risky business in my opinion. Make sure the trend has resumed. Remember...always look for that V pattern

A word on lower time frames

4 hour charts are some sort of a " looking for a sale(bargain)" window

let me explain

let's say the higher high the day before was broken. Most likely ( you will never hear me say "always" or "definitely") the market is looking to resume the trend. Let's say the high was taken @ 1.4450..well I will get down on 4 hour charts looking for 1.4430 or better to go long...

Do you have to look for that discount all the time??? no

Just that for me (very subjective) I like to buy stuff on sale (or sell stuff for profit)...don't you??

Markets in a pure definition are nothing more than a big auction. Think about it

Consideration involved = price

Consideration = something of value

Most of the time, traders believe that price is cheap/expensive....Although I personally disagree with that concept, unfortunately we need to follow the crowd.

be right back (I wish I could live in a world with no phones....don't they sometimes bug???) LOL

Ignored

Quoting TradeStar

Disliked

hi feb,

Quick question on one of your earlier posts:

You say you go for bargain price on 4 hr. fine.
Do you do this after the daily candle which takes out the high of the reversal candle is closed?
Or as soon as the high of the reversal candle is broken.

Thanks much

TradeStar

Ignored

Quoting supra

Disliked

Hi Feb,

Thank you for your inputs. I would appreciate more clarifications here if you don't mind.

Do you enter the pullback in the 240 the same way you get established on the daily, that is when you get a bar with a higher high signifying that the pullback has ended?

Ignored

Quoting feb2865

Disliked

Everyting at the close of the candle/bar

Ignored

Quoting TradeStar

Disliked

Hi feb,

Thank you.

One more quick question, if don't mind, please

What if the bullish candle does take out the high of the reversal candle however does not close above the high of the reversal candle.

In this case, do we wait for another daily candle to close above the reversal candle's high before we start entering

Secondly, let's say there was a perfect V formation and we missed it on the day of formation. Can we simply enter at the close of the next day or wait for 23 or 32 percent retracement on daily.

Thanks much,
TradeStar

Ignored

Quoting supra

Disliked

Hi letitride,

I also took the same trade based on the daily pin yesterday at 0.7480.

However, in the 240' chart there is a price pivot resistance at 0.7483 and the 38.2% fib resistance from the previous high is also resting somewhere near there. Strong resistance here given the numbers of 240' bars that failed.

I figured I want to see some momentum if price were to break and go up so I drew an uptrend line (see attached chart). If price stalled and closed below this trend line I'd rather be out early.

I think such situation is pretty common where we have a long/short signal in the higher time frame but when we go down to the lower time frame we find an opposing resistance/support. I would really appreciate any comment and inputs, especially from the seniors (Feb, Trader_V, Old_Not_Dead, etc.) on how such situation should be handled.

Thank you all.

Ignored

Quoting feb2865

Disliked

At the moment I get the bar with a higher/high - lower low on the daily charts, I beging to look for the discount - but the daily bar has to close first.

Don't get too focused on a pattern. As I said before, look for actual price.

The daily bar closed @ 1.4500 well try to get 50 point less (in case of long trade)

Listen guys, you don't have to do this. This is completely optional.

The daily bar that closes above/below forming the V-Pattern has a range. If is bullish and the high is 1.45, what you do is zooming into 4 hout charts trying to get a better price (long ) than 1.45. But you have yo keep and eye on the daily charts just in case the market picks up in momentum and breaks the range of the bar.

Peace

Ignored

Quoting letitride

Disliked

Hi Supra


Yes it looks like that strong failure in the 4hr candles was indeed a warning sign I refused to take notice of. In hindsight I now realize I should of closed my position earlier. It now seems I have myself caught in a head 'n' shoulders formation which has a high probability of completion if the neckline gives way . I was out and unable to manage this trade properly.
The only saving grace at the moment is the double zero and the neckline is still in tact.



I still have my stop loss in place at .7370. I will most probably look to close my position on Monday as price breaks below .7400. The only reason for me to keep this trade open is if on Monday price gaps(yes I know what your thinking but I do get gaps on my MT4 and price has respected these in the past) up and then I'll look to get out closer to break even.

cheers


p.s. thanks Feb for still participating in your thread I'm sure everyone here appreciates it.

Ignored

Quoting supra

Disliked

Hi letitride,

I also took the same trade based on the daily pin yesterday at 0.7480.

However, in the 240' chart there is a price pivot resistance at 0.7483 and the 38.2% fib resistance from the previous high is also resting somewhere near there. Strong resistance here given the numbers of 240' bars that failed.

I figured I want to see some momentum if price were to break and go up so I drew an uptrend line (see attached chart). If price stalled and closed below this trend line I'd rather be out early.

I think such situation is pretty common where we have a long/short signal in the higher time frame but when we go down to the lower time frame we find an opposing resistance/support. I would really appreciate any comment and inputs, especially from the seniors (Feb, Trader_V, Old_Not_Dead, etc.) on how such situation should be handled.

Thank you all.

Ignored

Quoting ozziedave

Disliked

Hi Supra,

Just read this post and what you are calling a pin bar really doesn't fit the description of a pin bar. This is more of an indecisive bar. Here is some information on pin bars. Hope it helps.

Ignored

Quoting supra

Disliked

Hi Ozziedave,

Yes, it's not a good pin bar. The nose is a bit short relative to left eye and the right eye is a way off on the higher side. But I wouldn't call this a neutral or indecision bar either as the body is on the upper range of the bar.

But these are the supporting reasons why I took this trade:
+ EUR/GBP is in a strong uptrend
+ Imperfect pin bar resting on a confluence between 38.2% fib support and 240 ppz at around 0.7406
I believe Letitride have the same reasonings.

Anyway, I thank you for sharing the excellent info on the pin bar. It's most appreciated, mate.

Ignored

Quoting Green_David

Disliked

Must be a boy too!

Ignored