Hi Aad
Thanks, I've read through a few long threads being a newbie but was put off by the size of this thread. They must be doing something good
Ian
Hi Kim, (and Jankone)
Jim's use of the abbreviation PPZ stands for Pivot Point Zone. (Not to be confused with floor trader pivots. Though both can line up by co-incidence ....heh heh heh...confluence! )
They are areas of support-come-resistance (and vice versa) that price respects from both sides. Successive zones can be very close to each other and can be powerful roadmaps to base your trading around.
Check out Jims post on the previous page (NZDUSD weekly chart):
He has two zones roughly marked out. The "sky blue" horizontal lines. Note the use of the word 'zone'. For the most part they are narrow price ranges rather than exactly to the pip.
In Jim's chart...
After the pin formed and closed you enter on a break of the pin's low.
Your'e next place of interest is the first pivot zone (top horizontal "sky blue" line on Jim's chart). This is the perfect example of the type of first target you should aim for. It's the first expected resistance to further progress (well, "support", technically speaking, of course!) and, in this case , it also has reasonable space from the entry point to give you a worth-while target "profit-wise" versus your trades risk.
If the pin was sitting just above the line I wouldn't take it. But, then again, if the pin was sitting just above that line it would more likely be in sideways traffic anyway.( Which we all to avoid on a bar to bar basis! Don't we!? )
When your market reaches this support area, take profit on part of your position ,and move your stop-loss on the remaining.
...You have a free trade AND some profit.
NOW you have to learn how to manage the rest.
How do you do that?? These Price Pivot Zones are the key. Two exit scenarios...
First exit scenario...
You trail your stop just behind the previous PPZ once you have seen a decent move into that next area (be generous with your buffer size) . This "exit type one" is purely a trailing stop. The exit is when the stop loss is hit.
Second exit scenario....
On the same time frame as your entry there is another entry (setup) in the
opposing direction later on. (i.e. Another opposite pin ) ...It should be obvious here what you do.
There are situations where you move your trailing stop other than using PPZs.
If you get a strong PA based formation that creates another protective area. i.e. At some point in your trade there is a pull-back, and then another pin forms at a complimentary swing high/low. (A lot of the time this will coincide or even create/define a new PPZ anyway. ...so you there you go!)
There's more. But, if you enter only A+++ trades (those with great confluence and perfect PA bar formations), using proper position sizing, and then manage your trades based on PPZs as above then you have the tools to grow your account. All that is left is to practice and get your head right.
....heh heh heh
Just wanted to give some credit to Mike. You are a good man. The things you have been doing for me (member of J16) and other struggeling traders is just phenomenal. I wish you all the best the world can offer you. Imagine if the world was packed with people like Mike.... Keep those videos coming!!
T
mike will probably go have a stiff drink after reading this. LOL.
jim
), but we still got some mean looking golf ball hail
Hi JanKone,
I'm here few weeks too and on #450 (page 31) - 800 pages to go which may take 2-3 mths. Just few questions:
a. I don't understand how can you take 160pips profit when you are monitoring the market every 5mins (it should be for scalpers who trade only 10-30pips)? what TF are u on?
b. what is your initial SL and what is your trading size? If you want to catch 300-400pips profit, then the SL must be more than 100pips (reward ratio of more than 3), so unless your account is big, otherwise your trade size will be very small. My size is 100,000 or one standard lot with 30-40pips SL on 4hr to daily TF). If the Sl were to increase to about 100pips, then my trade size can only be 3-4 mini-lot.
Regards,
Kim
