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Psych Levels, Pivots, and Trendlines - Resurrected

  • #81
  • Aug 13, 2008 8:22pm Aug 13, 2008 8:22pm
http://paronamio/photos/thumbnail/1008304
Quoting SpecialEd
Hello EyeVoltage and others,

My name is Ed (the SpecialEd is a sarcastic knickname from an old friend). I've been trading live for about 3 months and literally got hammered by the market events of last Friday. I've been hanging out on the EUR/USD thread, where I met Acumen and began to study his lovely, simple method. Those two events led me to re-group, take a break from trading for a few days and re-apply myself to study. My initial research today led me to this thread.

EV (if I may), you seem to have really taken to Acumen's method. I really appreciate the clarity of your postings and charts. Very understandable and educational.

If no one objects, I would like to subscribe to this thread and become a student. I am semi-retired, and seriously committed to learning Forex trading. I have enjoyed it immensely thus far.

Getting started. Thanks for all that I've read thus far.
Ed in Virginia, USA



Hello all, I want to chime in with Special Ed and say I would love to follow this thread as well...I've been studying forex for 2 years, all over the place. When you realize your studying under amateurs, you keep searching until you find what you've been feeling all along, but couldn't put the pieces together to make a story.
I like simple and common sense. Ps. this is my first post ever here on forex factory(exciting!), hence this is good info. I like the trendlines, candlesticks, well, everything that is being applied here. Please continue with the simple and informative to the point charts and info. It's really excellent and worth all the money I spent on other companies, and got nowhere.
Appreciate your time and help.

  • #82
  • Aug 14, 2008 12:27am Aug 14, 2008 12:27am
@ SpecialEd,

try this website:
www.babypips.com
It helped me a lot at the beginning. There you can more than candlesticks...
Donīt live for working, but work for living.
  • #83
  • Aug 14, 2008 6:34am Aug 14, 2008 6:34am
Quoting MDenise
http://paronamio/photos/thumbnail/1008304




Hello all, I want to chime in with Special Ed and say I would love to follow this thread as well...I've been studying forex for 2 years, all over the place. When you realize your studying under amateurs, you keep searching until you find what you've been feeling all along, but couldn't put the pieces together to make a story.
I like simple and common sense. Ps. this is my first post ever here on forex factory(exciting!), hence this is good info. I like the trendlines, candlesticks, well, everything that is being applied here. Please continue with the simple and informative to the point charts and info. It's really excellent and worth all the money I spent on other companies, and got nowhere.

Appreciate your time and help.

MDenise, welcome to FF posting. I've been on the site about 4 months, on here less than 24 hours. Good luck to you.
Up or down, gimme a ticket
  • #84
  • Aug 14, 2008 6:40am Aug 14, 2008 6:40am
Quoting matsf
@ SpecialEd,

try this website:
www.babypips.com
It helped me a lot at the beginning. There you can more than candlesticks...
I currently have two reading lists: one-time (for education) and daily (recurring). Babypips is on my educational list, along with "Trade Your Way to Financial Freedom", "Trading in the Zone", a couple of recommended candlestick websites (see earlier posts on this thread), and I think I want to go catch up on the James16 thread on FF.

Thanks for the input, and for your continued posting of great charts. Commentary and illustrations from Eyevoltage and yourself really help the rest of us a lot. In time, I promise to give back.

Best to you today!
Ed in Virginia
Up or down, gimme a ticket
  • #85
  • Edited 6:44am Aug 14, 2008 6:44am | Edited 6:44am
Quoting MDenise
http://paronamio/photos/thumbnail/1008304




Hello all, I want to chime in with Special Ed and say I would love to follow this thread as well...I've been studying forex for 2 years, all over the place. When you realize your studying under amateurs, you keep searching until you find what you've been feeling all along, but couldn't put the pieces together to make a story.
I like simple and common sense. Ps. this is my first post ever here on forex factory(exciting!), hence this is good info. I like the trendlines, candlesticks, well, everything that is being applied here. Please continue with the simple and informative to the point charts and info. It's really excellent and worth all the money I spent on other companies, and got nowhere.


Appreciate your time and help.

As part of my educational reading, I just finished Acumen's website today. If you have't read it, I strongly recommend it. Acumen is kind of our Godfather on this thread. The method is his, and guys like EV and MATSF are his best disciples. Go to http://www.thefxpivotpoint.com.

Ed in Virginia
Up or down, gimme a ticket
  • #86
  • Aug 14, 2008 7:28am Aug 14, 2008 7:28am
Hi folks.
For the benefit of Ed and maybe others on here, I just thought I'd post this chart from this morning, to show some examples of candlestick movements.

Cable this morning. As you can see, price was ranging through the night, with the odd half-hearted breakout here and there. Then, at 7.15gmt, a harami formed. A harami is a small candle that forms sort of "inside" the range of the previous candle. (Harami is Japanese for "pregnant".....I guess you can see the significance!) A harami is a candle reversal signal, and once it's formed, we have to wait for a confirmation from the next candle. Indeed, the next candle confirmed nicely, and led to a potential 30-odd pip move.
Number 2 pin-points 3 dojis which have come at the bottom of a move. Dojis aren't reversal signals as such, but rather provide you with a "watch closely" notice. Dojis signify indecision, and three of them one after the other tell you that there's a LOT of indecision! There was no indecision with the fourth candle, which rose, with authority, to punch through the .00 psych line. Number 3 just signifies a small consolidation period before price resumes its movement north. Number 4 shows you that price has hit the .50 psych line, and we then have a "dark cloud cover" candle, or a "bearish piercing pattern", with a very bearish upper shadow. This is another significant potential reversal signal, but like all other patterns, needs a confirmation from the next candle. So far, as I type this, price is just moving sideways in another consolidation.
I've just used these as examples. I didn't take any moves upwards, as price is below the Pivot Point, so short trades should be the order of the day.
I hope this info helps in some small way.
Attached Image
  • #87
  • Aug 14, 2008 7:50am Aug 14, 2008 7:50am
Not long after I posted the last chart, price decided to explode upwards, and is now toying with the Main Pivot point. Which all goes to prove that one shouldn't dive in at the first sign of a reversal candle. A little patience can save a LOT of grief!
Attached Image
  • #88
  • Aug 14, 2008 8:12am Aug 14, 2008 8:12am
Good morning EV and others,

On the first day of the rest of my life (now trading Acumen's method), I scored! I am sharing here for two reasons: (1) to ask you to validate my thinking; and (2) to share the logic of a successful trade in hopes that it helps someone.

I did not plan to "trade the news", but I was planning to go short EUR/USD on a bounce off the 1.4950 psych level. In my haste, I actually broke one of Acumen's cardinal rules, I think (I sold when priceline was above the daily pivot), but I figured the psych level occurrence trumped that. Acumen?

At any rate, I sold short at 1.4933, with an SL of 1.4960 and a TP of 1.4910. Can't remember why I picked 1.4910, and I wasn't sure it was going to make it so I closed the trade at 1.4918. I profited 15 PIPs, but left 8 on the table, as the price did eventually go below my TP line.

On the down side, I don't think I will process another trade until maybe a bounce off the 1.4850 psych level, but I might should have taken a longer-term view of the original trade. The price is still running lower, after what I think EV would call an "engulfing bearish candle".

This is all in my demo account, as I have decided to slow down and re-group. If anyone cares to comment on this trade, please do. You will not hurt my feelings if you disagree. It's all about sharing and learning.

Ed in Virginia

P.S. I have never posted a chart before, but in keeping with the habits of the principals on this thread, I will learn and hope to post some in the future.
Up or down, gimme a ticket
  • #89
  • Aug 14, 2008 8:35am Aug 14, 2008 8:35am
Can you post your atr indicator that is on your print screen or
direct me to where i can find it

thank you

Quoting eyevoltage
Not long after I posted the last chart, price decided to explode upwards, and is now toying with the Main Pivot point. Which all goes to prove that one shouldn't dive in at the first sign of a reversal candle. A little patience can save a LOT of grief!
  • #90
  • Edited 8:52am Aug 14, 2008 8:41am | Edited 8:52am
Quoting SpecialEd
Good morning EV and others,

On the first day of the rest of my life (now trading Acumen's method), I scored! I am sharing here for two reasons: (1) to ask you to validate my thinking; and (2) to share the logic of a successful trade in hopes that it helps someone.

I did not plan to "trade the news", but I was planning to go short EUR/USD on a bounce off the 1.4950 psych level. In my haste, I actually broke one of Acumen's cardinal rules, I think (I sold when priceline was above the daily pivot), but I figured the psych level occurrence trumped that. Acumen?

At any rate, I sold short at 1.4933, with an SL of 1.4960 and a TP of 1.4910. Can't remember why I picked 1.4910, and I wasn't sure it was going to make it so I closed the trade at 1.4918. I profited 15 PIPs, but left 8 on the table, as the price did eventually go below my TP line.

On the down side, I don't think I will process another trade until maybe a bounce off the 1.4850 psych level, but I might should have taken a longer-term view of the original trade. The price is still running lower, after what I think EV would call an "engulfing bearish candle".

This is all in my demo account, as I have decided to slow down and re-group. If anyone cares to comment on this trade, please do. You will not hurt my feelings if you disagree. It's all about sharing and learning.

Ed in Virginia

P.S. I have never posted a chart before, but in keeping with the habits of the principals on this thread, I will learn and hope to post some in the future.
Naughty! A short trade ABOVE the Pivot Point? Still, rules are made to be broken, but only sometimes!

I've just had a look at the situation on my chart, Ed, and it's funny you should pick 1.4910 for your TP. That just happens to be the 50.0 Fib point on today's chart (taken from yesterday's high/low readings). How's that for coincidence?

No, it wasn't quite a bearish engulfing candle, Ed, as it opened slightly lower than the previous candle's close, but it certainly was a powerful candle, nevertheless.

I don't know which charts you use, Ed. I use MT4, and here's how to post one: Right click on chart and "save as picture".
Make sure "Active Chart" is bulleted and set your width and height. (You may have to experiment a bit with this.)
When you've finished typing your post, scroll down to "manage attachments" and click it. In the window that comes up, browse to the location of your chart and select, followed by clicking "upload".
Wait for upload to finish then close the window.
It just remains for you to "submit reply", then, Ed.

Hope that helps.
  • #91
  • Aug 14, 2008 8:50am Aug 14, 2008 8:50am
Quoting toddanderson
Can you post your atr indicator that is on your print screen or
direct me to where i can find it

thank you
When you open ATR PIPS, alter the 13 to 14 in the settings. Apparently, it makes for a more accurate reading, from what I've been told!

Just in case you need it, I've included the ATR as well.
Cheers.
Attached File(s)
File Type: ex4 ATR.ex4   3 KB | 598 downloads
File Type: mq4 ATR Pips.mq4   2 KB | 711 downloads
File Type: ex4 ATR Pips.ex4   3 KB | 644 downloads
File Type: mq4 ATR.mq4   2 KB | 685 downloads
  • #92
  • Aug 14, 2008 8:51am Aug 14, 2008 8:51am
Quoting eyevoltage
Hi folks.
For the benefit of Ed and maybe others on here, I just thought I'd post this chart from this morning, to show some examples of candlestick movements.

Cable this morning. As you can see, price was ranging through the night, with the odd half-hearted breakout here and there. Then, at 7.15gmt, a harami formed. A harami is a small candle that forms sort of "inside" the range of the previous candle. (Harami is Japanese for "pregnant".....I guess you can see the significance!) A harami is a candle reversal signal, and once it's formed, we have to wait for a confirmation from the next candle. Indeed, the next candle confirmed nicely, and led to a potential 30-odd pip move.
Number 2 pin-points 3 dojis which have come at the bottom of a move. Dojis aren't reversal signals as such, but rather provide you with a "watch closely" notice. Dojis signify indecision, and three of them one after the other tell you that there's a LOT of indecision! There was no indecision with the fourth candle, which rose, with authority, to punch through the .00 psych line. Number 3 just signifies a small consolidation period before price resumes its movement north. Number 4 shows you that price has hit the .50 psych line, and we then have a "dark cloud cover" candle, or a "bearish piercing pattern", with a very bearish upper shadow. This is another significant potential reversal signal, but like all other patterns, needs a confirmation from the next candle. So far, as I type this, price is just moving sideways in another consolidation.
I've just used these as examples. I didn't take any moves upwards, as price is below the Pivot Point, so short trades should be the order of the day.
I hope this info helps in some small way.
Thanks for taking the time to lay this out, EV. Easy to understand, and the picture is certainly worth a thousand words.
Up or down, gimme a ticket
  • #93
  • Aug 14, 2008 8:55am Aug 14, 2008 8:55am
Quoting SpecialEd
Thanks for taking the time to lay this out, EV. Easy to understand, and the picture is certainly worth a thousand words.
Entirely my pleasure, old chap!
  • #94
  • Aug 14, 2008 8:58am Aug 14, 2008 8:58am
Hi There Acumen, good to have u back I can't tell u how much I have missed your thread. Keep doing the good work some folks arereally paying attention to your thread.
Cheers
He that is from above is above all.
  • #95
  • Aug 14, 2008 8:58am Aug 14, 2008 8:58am
Quoting eyevoltage
I don't know which charts you use, Ed. I use MT4, and here's how to post one: Right click on chart and "save as picture".
Make sure "Active Chart" is bulleted and set your width and height. (You may have to experiment a bit with this.)
When you've finished typing your post, scroll down to "manage attachments" and click it. In the window that comes up, browse to the location of your chart and select, followed by clicking "upload".
Wait for upload to finish then close the window.
It just remains for you to "submit reply", then, Ed.

Hope that helps.
I also use MT4. Helps a lot.
Up or down, gimme a ticket
  • #96
  • Aug 14, 2008 9:19am Aug 14, 2008 9:19am
A follow on to the chart I was using earlier as a candle demo.....

I took this trade after the dark cloud cover candle. The next candle opened right underneath the .50 psych line and had no trouble dropping to the next psych line at .00.

I wish they were all as easy as this!
Attached Image
  • #97
  • Aug 14, 2008 10:31am Aug 14, 2008 10:31am
Quoting eyevoltage
This is the eur/usd at around the same time........

This time, a bearish engulfing candle straddling the R1/0.0 fib confluence, then price goes into free-fall all the way down to the 38.2 fib line (and, at the same time, reaching down a little and touching the .00 psych-line, which isn't shown on this chart).

I just love this method. Clean and simple.


This is a good demonstration of a trade! I will try to apply this. Do you ever use a bigger time frame with the same strategy, for instance the 1 hr? Thank You
  • #98
  • Aug 14, 2008 10:39am Aug 14, 2008 10:39am
Quoting MDenise
This is a great example, thank you for sharing. Just wondering if you have applied your trading strategies to a 1 hr chart? I am going to set up my charts to trade this way. Thank you
No, I pretty much stick to 15m charts, mate. On occasion, I'll drop down to 5m, but the only time I check 1h or 4h out, is to check the trends, really.

Cheers
  • #99
  • Aug 14, 2008 10:43am Aug 14, 2008 10:43am
Quoting SpecialEd
MDenise, welcome to FF posting. I've been on the site about 4 months, on here less than 24 hours. Good luck to you.

Special Ed Thank you, I've read threads here and there at FF but with the knowledge I have now I am ready to begin to try this method. I have some really good fx books I can skype you for free. Just contact me through email and I will give you my skype.
  • #100
  • Aug 14, 2008 10:45am Aug 14, 2008 10:45am
cant you just post the ebooks or rapid share them


Quoting MDenise
Special Ed Thank you, I've read threads here and there at FF but with the knowledge I have now I am ready to begin to try this method. I have some really good fx books I can skype you for free. Just contact me through email and I will give you my skype.
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