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Nomoretoxic's breakout

  • #141
  • Sep 18, 2008 9:44am Sep 18, 2008 9:44am
Quoting zznbrm
Yeah, how is the 13:20 GMT candle on EUR/USD considered a pullback when it's low is lower than the breakout candle (13:15 GMT) low?
the close...everything must be measured at the close. That candle closed higher than the breakout candle hence the pullback


the pullback candle closed @1.4436. The breakout candle closed @1.4418

admiral markets reading
  • #142
  • Sep 18, 2008 10:11am Sep 18, 2008 10:11am
Could someone please help me regarding when exactly to enter ?
Assuming short
1) mark the low of the box from 7am - 9am EST
2) 5 pips offset to low of the box (low A)
3) Wait for breakout to happen
4) If market continues lower ,mark down the lowest low ( low B)
5) once retrace happens, should I enter 3 pips below low A or wait till price crosses 3 pips below low B ?

Thanks
  • #143
  • Sep 18, 2008 10:26am Sep 18, 2008 10:26am
Quoting cheelu
Could someone please help me regarding when exactly to enter ?
Assuming short
1) mark the low of the box from 7am - 9am EST
2) 5 pips offset to low of the box (low A)
3) Wait for breakout to happen
4) If market continues lower ,mark down the lowest low ( low B)
5) once retrace happens, should I enter 3 pips below low A or wait till price crosses 3 pips below low B ?

Thanks
Hello guys

Here some simple rules - nothing fancy

Here we go

1)Pull up 5 minutes charts in your favorite -flavored pair.

2) observe the market INSIDE THE BOX - screw the trend. You need to pay attention on where the market is heading inside the box. Stay tight to your system.

3) Once the box period is over, check 'n see if there's a breakout

4) if breakout occurs, wait for a pullback. Meanwhile, take a note(or draw an horizontal line as I show on the charts) of the PRICE at the last higher/high - lower low before the breakout - let's say the last high/low happened @ 1.3950 and then the market began to retrace form there, take a note of that and place a limit around 1.3953(if long) or 1.3947(if short)

5). Place a stop-loss at the other side of the breakout candle or at a reasonable distance to let the trade works its way - 20 pips is reasonable in my opinion.

6)Place a Take Profit at least 1:1 risk /reward (assuming 20 pips stop loss/20 pips profit target)

7)sit back and let the market do it's thing

8) wash, rinse and repeat everyday

If you get stopped out, look for the other side of the box and play the market. If nothing happens...I have a secret...come closer...shhhh don't tell anyone but

tomorrow is another day~~~~

I brought the rules back to front...just in case


you place a stop limit order....I assume you're talking about market order...that's a no-no...never use a market order at least for the box.

once you see the pullback, you start to look where to place the stop order

guys I need some rest, but still PM or ask...... be back in a few hours

if you see that I don't reply to your question, just ask again.
  • #144
  • Sep 18, 2008 10:28am Sep 18, 2008 10:28am
Quoting nomoretoxic
cable this morning
Where was your entry on this chart Nomoretoxic's
Thanks
  • #145
  • Sep 18, 2008 10:55am Sep 18, 2008 10:55am
Attached Image (click to enlarge)
Click to Enlarge Name: au-9-18-08.gif Size: 7 KB


in this situation:
the trade will got stop out
will anyone take second trade.
  • #146
  • Sep 18, 2008 10:57am Sep 18, 2008 10:57am
Nomoretoxic,

I thank you for your efforts. Few questions:

1) In post #30, you show a chart for EURUSD on 9/16. You show a stop loss at the top of the breakout candle. The SL would be roughly 1.4182. The low point before the pullback is roughly 1.4139. So entry would be at 1.4136. One of your rules is : "Place a Take Profit at least 1:1 risk /reward". That would make Take Profit of about 1.4090. You indicate on the chart "20 PIPS HERE". I assume this to mean you would take profit there. That is not even close to 1:1 RR ratio. Why the discrepency?

2) In post #53, you gave the following answer:

Q: Nomo, does the 5 minute bar have to close out of the box or is it good enough if the bar just breaks the high/low of the box?
A: The price has to close outside the box. Everything must be done at the close

However, the charts posted in Post #76 and Post #119 show the breakout candle NOT closing outside the box. Which is the proper definition of a breakout?

3) There is also the outstanding question about the GBPUSD in the NY session this morning. Your chart in Post #138 does indicate "20 PIPS". I assume this means that you actually got 20 pips on this trade. Where are the SL, TP, Entry for this trade to get 20 pips?


If your answer to any question is "I use OandA and the price is different between brokers", then maybe you could post the actual charts you use to make your trading decisions.

Thanks!
  • #147
  • Sep 18, 2008 11:15am Sep 18, 2008 11:15am
Quoting acres
Attachment

in this situation:
the trade will got stop out
will anyone take second trade.
according to the rules the first trade would not have been stopped out. You would've entered short under the low of the move that pierced the box to the downside. You would've made some pips.
  • #148
  • Sep 18, 2008 11:18am Sep 18, 2008 11:18am
yes, but the target profit is 20 pips
  • #149
  • Sep 18, 2008 11:19am Sep 18, 2008 11:19am
I have to call a big opps on my part. This morning I used 6am to 8 am est without realizing it. It worked in my favor though.
  • #150
  • Sep 18, 2008 11:22am Sep 18, 2008 11:22am
Quoting acres
yes, but the target profit is 20 pips
that's great because you should've gotten the 20 pips if the entry was around .8030, which would be around the low of the piercing move. It wouldn't be according to the rules if you entered at .7954 as the red line on your chart shows. What price would you have entered at?
  • #151
  • Sep 18, 2008 11:37am Sep 18, 2008 11:37am
Thanks Scott.
  • #152
  • Sep 18, 2008 11:42am Sep 18, 2008 11:42am
Quoting acres
Thanks Scott.
your welcome, glad to help.
  • #153
  • Sep 18, 2008 12:45pm Sep 18, 2008 12:45pm
Nomoretoxic,

Chart below exactly per your rules. IBFX broker so exact price may vary slightly. Based on rules, this would have been an iffy trade for me due to the retrace did NOT close inside of box. Plus, my retrace candle was a doji.

Opinions welcome, thks.
Attached Image (click to enlarge)
Click to Enlarge Name: eur.gif Size: 21 KB
  • #154
  • Sep 18, 2008 12:50pm Sep 18, 2008 12:50pm
In this post
http://www.forexfactory.com/showpost...&postcount=154

Nomo says
any pullback...ultimately what you're looking for is the last price either high or low before the pullback - 2-3 pips away, that will be your entry.

In this post
http://www.forexfactory.com/showpost...90&postcount=1

4) if breakout occurs, wait for a pullback. Meanwhile, take a note(or draw an horizontal line as I show on the charts) of the PRICE at the last higher/high - lower low before the breakout - let's say the last high/low happened @ 1.3950 and then the market began to retrace form there, take a note of that and place a limit around 1.3953(if long) or 1.3947(if short)

and I see some other folks make entry at the high/low of the breakout candle .

where's the exact entry?
1) 3 pips above/below the original box's high/low after pullback
2) 3 pipe above/below the highest high / lowest low which hapened AFTER the breakout and BEFORE pullback
3) 3 pipe above/below the breakout candle after pullback
  • #155
  • Sep 18, 2008 12:59pm Sep 18, 2008 12:59pm
Attached Image (click to enlarge)
Click to Enlarge Name: gu-box.gif Size: 12 KB
  • #156
  • Edited 1:10pm Sep 18, 2008 1:08pm | Edited 1:10pm
Nomo says
any pullback...ultimately what you're looking for is the last price either high or low before the pullback - 2-3 pips away, that will be your entry.

He states also that he use the CLOSE for all candles. So the retrace candle CLOSED inside the breakout candle but NOT inside the box?


In this post
http://www.forexfactory.com/showpost...90&postcount=1

4) if breakout occurs, wait for a pullback. Meanwhile, take a note(or draw an horizontal line as I show on the charts) of the PRICE at the last higher/high - lower low before the breakout - let's say the last high/low happened @ 1.3950 and then the market began to retrace form there, take a note of that and place a limit around 1.3953(if long) or 1.3947(if short)

My lower low before breakout was #3 @ 1.4435 so then I should place entry 3-5 pips below that @ 1.4430??

My retrace candle was a doji, closed at @1.4433. Above lower low before breakout. Place entry @ 1.4430.

That sound right??

This is so simple but its complicated, Im thinking to much is my problem.


and I see some other folks make entry at the high/low of the breakout candle .

where's the exact entry?
1) 3 pips above/below the original box's high/low after pullback
2) 3 pipe above/below the highest high / lowest low which hapened AFTER the breakout and BEFORE pullback
3) 3 pipe above/below the breakout candle after pullback[/quote]
  • #157
  • Sep 18, 2008 1:11pm Sep 18, 2008 1:11pm
Nomoretoxic,

Have you considered opening a live trading room??
www.tradingrooms.com

Idea, hassle???

Mike
  • #158
  • Sep 18, 2008 1:23pm Sep 18, 2008 1:23pm
Quoting mappollo69
Nomoretoxic,

Have you considered opening a live trading room??
www.tradingrooms.com

Idea, hassle???

Mike
This is so simple of a method. Why would you need a live trading room?
  • #159
  • Sep 18, 2008 1:30pm Sep 18, 2008 1:30pm
Quoting mappollo69
Nomo says
any pullback...ultimately what you're looking for is the last price either high or low before the pullback - 2-3 pips away, that will be your entry.

He states also that he use the CLOSE for all candles. So the retrace candle CLOSED inside the breakout candle but NOT inside the box?


In this post
http://www.forexfactory.com/showpost...90&postcount=1

4) if breakout occurs, wait for a pullback. Meanwhile, take a note(or draw an horizontal line as I show on the charts) of the PRICE at the last higher/high - lower low before the breakout - let's say the last high/low happened @ 1.3950 and then the market began to retrace form there, take a note of that and place a limit around 1.3953(if long) or 1.3947(if short)

My lower low before breakout was #3 @ 1.4435 so then I should place entry 3-5 pips below that @ 1.4430??

My retrace candle was a doji, closed at @1.4433. Above lower low before breakout. Place entry @ 1.4430.

That sound right??

This is so simple but its complicated, Im thinking to much is my problem.


and I see some other folks make entry at the high/low of the breakout candle .

where's the exact entry?
1) 3 pips above/below the original box's high/low after pullback
2) 3 pipe above/below the highest high / lowest low which hapened AFTER the breakout and BEFORE pullback
3) 3 pipe above/below the breakout candle after pullback
[/quote]

imo a retrace really didn't happen until your point #5. The retrace does not have to be back into the box. If you placed your sell stop below point #5 you still would've had a winner. Stop thinking too much.
  • #160
  • Sep 18, 2008 1:42pm Sep 18, 2008 1:42pm
imo a retrace really didn't happen until your point #5. The retrace does not have to be back into the box. If you placed your sell stop below point #5 you still would've had a winner. Stop thinking too much. [/quote]

OK, here goes again. Breakout at #1, price continues down till #5, next 2 candles are the retrace up. My entry should be a few pips below retrace candle, 1.4390 or so.

Ny box(breach of hi/low of box) by breakout candle.
Watch for retrace(general price retracement), place order using retrace hi/low + a few pips.


?


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