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Attachments: GBP/JPY London Open trades
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GBP/JPY London Open trades

  • #41
  • Edited 6:33am Nov 22, 2008 4:18am | Edited 6:33am
Quoting ccolb77
Here we see that the bears regained control of the market and are continuing to make new lows. If I was trading this one I would have entered in on 139.09 and held for 80 to 100 pips.

http://i35.tinypic.com/1zgar1t.jpg


This is how I trade. If you prefer to take less trades or more trades, you can always use the same strategy but use a different time frame and change your profit target/stop loss.

Good luck
Hi Ciara

It is great to see such clean charts. I am sure this would scare many traders, they might feel almost naked yet the ability to understand action is clearly comprehensive enough from your candles and price movements.
Can I ask in this scenario, when you say you would enter around 1.3909, would this be a sell order on the first candle break of this price or on a retest from below.
I am not so good at reading this type of entry from my past results.

Have a nice wekend.

Rob
  • #42
  • Edited 2:04pm Nov 22, 2008 1:30pm | Edited 2:04pm
Hi Rob,

True, this way of trading does feel naked at first, scary even because there is nothing mechanical telling you to do this or do that. Reading candles is like learning to read another language. I'm not sure that I understand clearly what you are asking but let me take a stab at it. The first time that the price hits 139.09 then bounces away establishes the new low (sell trigger). Then it climbs to the new high (buy trigger) of 142.76 then begins falling again. When the price comes back down to retest the low of 139.09 I would enter in on the break of that level by a few pips. So my actual sell order would be around 139.05. You always want to be sure that the price is actually breaking the previous low and not testing it. Sometimes highs/lows act as temporary s/r levels. I'm not sure of how this way of trading works with EUR/USD.
Discipline will take you where luck can't.
  • #43
  • Nov 23, 2008 10:36am Nov 23, 2008 10:36am
Hey Ciara,


thanks for your insight and help.
It has helped alot, great work by you.

just lucky
  • #44
  • Nov 24, 2008 1:22am Nov 24, 2008 1:22am
Quoting justlucky
Hey Ciara,


thanks for your insight and help.
It has helped alot, great work by you.

just lucky
You are certainly welcome. I'll post more screen captures as I see examples that will help you and others profit.
Discipline will take you where luck can't.
  • #45
  • Edited 10:36am Nov 24, 2008 1:32am | Edited 10:36am
There are a few different reversal patterns. Just glancing at the G/J a few moments ago I spotted this one. Notice the lower high followed by a higher high then another lower high. This is similar to head and shoulders. From experience I'd say that it's turning in the bears direction but of course with G/J anything is possible. If this continues to drop I would look at entering a trade on the break of 141.09.

Results: Triangle/H & S combo, price broke out of down trend and rallied up more than 300 pips.



http://i37.tinypic.com/2ezsnwx.jpg
Discipline will take you where luck can't.
  • #46
  • Nov 24, 2008 8:55am Nov 24, 2008 8:55am
Hi Ciara,

Gained + 37 pips on a long at 144.05, I normally wait until price breaks 00s levels before I enter. This trade took time to develop as momentum was slow and also I had to withstant a 42 pip drawdown. But because ther were triple tops and it broke I knew price had to continue up so I stayed in.
Also there was no news to say otherwise.

Justlucky
  • #47
  • Nov 24, 2008 10:24am Nov 24, 2008 10:24am
50+ U.S.
Discipline will take you where luck can't.
  • #48
  • Nov 24, 2008 10:30am Nov 24, 2008 10:30am
Quoting justlucky
Hi Ciara,

Gained + 37 pips on a long at 144.05, I normally wait until price breaks 00s levels before I enter. This trade took time to develop as momentum was slow and also I had to withstant a 42 pip drawdown. But because ther were triple tops and it broke I knew price had to continue up so I stayed in.
Also there was no news to say otherwise.

Justlucky
That is great that you got some pips. It did start out slow that's why I stayed out so long. Now I'm waiting for the next high/low but G/J is moving and not coming up for air.
Discipline will take you where luck can't.
  • #49
  • Nov 25, 2008 8:14am Nov 25, 2008 8:14am
54+ U.S. (reversal)
Discipline will take you where luck can't.
  • #50
  • Nov 25, 2008 1:45pm Nov 25, 2008 1:45pm
Hi Ciara,

Seems like you have the GBP/JPY pair pretty much under control. I like your tradng style with few indicators. Im trying to figure out this pair myself. I still haven't gone live trading yet, only demo. I just want to make sure I have certain "advantages" before I go live. Let me see if I understand your strategy.

You set your dotted lines (entry points) in the following manner:

 

  1. Blue line is set at the previous HIGH, so if the price breaks this line by a couple of pips, you open a long position immediately (meaning you dont wait for the next candle to open above the line) and take profits of between 50 and 80 pips.
  2. Red line is set at the previous LOW, ....(and all the bunch of stuff I put for the blu line)
  3. You dont open a trade if the dotted line is set close to the lowest support or the highest resistance you drew from higher period timeframes. (How much would you consider to be too close?)
  4. You only perform a few trades a day, mostly when a trading session begins?

What do you use the other s/r lines (inbetween the extremes)? I'll read up on how to read the candlebars before I post questions about that. Thanks for sharing your knowledge with us, I really appreciate it. And keep up the good trades.

On a journey to consistency.
  • #51
  • Nov 26, 2008 2:38am Nov 26, 2008 2:38am
It is just as important to know when NOT to trade as it is to know when to trade. G/J is setting up for a breakout. Looking at the screen capture below, I wouldn't trade until 1) the price picks a direction 2) a candle forms outside of the triangle 3) momentum picks up 4) a new high/low pattern has been established.

1 hour

http://i37.tinypic.com/10dd46w.jpg

3 hour

http://i38.tinypic.com/afk6mt.jpg
Discipline will take you where luck can't.
  • #52
  • Nov 26, 2008 3:11am Nov 26, 2008 3:11am
Quoting Tataocb
Hi Ciara,

Seems like you have the GBP/JPY pair pretty much under control. I like your tradng style with few indicators. Im trying to figure out this pair myself. I still haven't gone live trading yet, only demo. I just want to make sure I have certain "advantages" before I go live. Let me see if I understand your strategy.

You set your dotted lines (entry points) in the following manner:
[list][*]Blue line is set at the previous HIGH, so if the price breaks this line by a couple of pips, you open a long position immediately (meaning you...
Hi Tataocb,

Yes you have the entries right. The blue and red dashed lines represent the highs/lows of the most previous price swing. However because I use discretion in my trading there are some price swings that I won't trade. Example is when the price spikes up then falls rapidly giving a whipsaw reaction or if the price swing is so small that it's hard to tell what it's doing. You want to see wave like movements going up or down. This method of trading doesn't work on tight ranges unless the price breaks out of the range with strong momentum. In that case you would trade outside of the high/low on either side of the range. 2) When a high/low point falls on a s/r of a higher time frame there are times that I will trade and times that I won't. I'll trade it if the price action is strong and if the price normally gains momentum at those levels in recent history. If it normally bounces or ranges then I stay out. I won't take a trade just based off of a s/r line. Too close ? I've traded them within a few pips of each other. It's discretionary and depends highly on price action, candle patterns and previous reactions in history. When in doubt stay out is my motto so if I'm not confident that I'll make money on it, I won't trade it. 3) Yes, most trades come near open of all sessions. I misnamed my journal and should have called it G/J 1 hour trades. However because of the economic crisis there are more trading opportunities than usual so if the momentum is strong then I will trade anytime of the day. 4) The s/r lines just gives my chart a face so to speak. They tell me what the price might do at certain levels and give me an idea of when to exit and when to stay out. I have very few hard fast rules in trading. Some of it is also intuitive. I hope this helps.

Good luck in your trading
Discipline will take you where luck can't.
  • #53
  • Nov 26, 2008 7:40pm Nov 26, 2008 7:40pm
Thanks for explaining your system a bit more. I've been going over Forex4Noobs stuff so its nice to see a system that incorporates some of those ideas. It seems like the major difference is that you are using 1H charts in addition to 4H charts to make trades, is that the basic difference?

Also in terms of picking the recent swing highs and lows, I was a bit confused by how you moved your red and blue lines in post 37 and 40. In post 37, it seems like you would have had to move the swing high to the current candle once it closed in order to be able to take a break of that line. Can you explain a little bit more about how you define a swing high/low?

Thanks!
  • #54
  • Nov 26, 2008 8:52pm Nov 26, 2008 8:52pm
Quoting chartstrader
Thanks for explaining your system a bit more. I've been going over Forex4Noobs stuff so its nice to see a system that incorporates some of those ideas. It seems like the major difference is that you are using 1H charts in addition to 4H charts to make trades, is that the basic difference?

Also in terms of picking the recent swing highs and lows, I was a bit confused by how you moved your red and blue lines in post 37 and 40. In post 37, it seems like you would have...
Forex4Noobs is a great site especially for newbies. The chatroom, ebook and signals are all free and actually make consistent profits. There are a few differences in the way that I trade one being the time frame, the use of trend lines and I don't enter trades based off of s/r breaks. There may be more differences but that's all that I can think of. Post 37 is explaining how I would have traded the bullish reversal which is comprehensive mostly of price action, the candle pattern and recent previous history. I like to see a second candle confirmation on this type of reversal where you have the long wick. The entry line is set for the high of the second blue candle. I don't suggest trading this type of reversal unless you know your pair well. They can be tricky. Post #40 shows a bearish reversal and is a completely different trade.
Swing high/low, you are looking at the high and low of one movement before it stops to retrace. When it retraces then begins to fall or rise again is when you look at entering the trade on the break of the red/blue line. Generally I like to see a retracement of at least 100 pips before marking my entries.
Discipline will take you where luck can't.
  • #55
  • Nov 27, 2008 9:34am Nov 27, 2008 9:34am
Gotcha. Thanks for replying. The discretion part is probably the hardest to explain to someone, I use it as well in the strategy I'm trying out.

So I'm guessing right now (10:00 am EST, 11/27) you're probably staying out since the price is close to 148.00, which seems like a somewhat important resistance line. The price seems to be bouncing off, but at least in my opinion it doesn't seem to have truly made up its mind in which direction to move. There's not much "action" going on, for a lack of a better word.

What kind of price action/movement/direction would motivate you to open a position in the time to come?
On a journey to consistency.
  • #56
  • Nov 27, 2008 11:15am Nov 27, 2008 11:15am
Quoting Tataocb
Gotcha. Thanks for replying. The discretion part is probably the hardest to explain to someone, I use it as well in the strategy I'm trying out.

So I'm guessing right now (10:00 am EST, 11/27) you're probably staying out since the price is close to 148.00, which seems like a somewhat important resistance line. The price seems to be bouncing off, but at least in my opinion it doesn't seem to have truly made up its mind in which direction to move. There's not much "action" going on, for a lack of a better word.

What kind of price action/movement/direction...
You are certainly welcome. I'm staying out today because it's a holiday in the U.S. which I'm going to let it all hang out today at the dinner table Besides, the price action is too indecisive and slow to motivate me to trade. I won't make any decisions as to when to open a position until I see a definite direction and momentum. G/J can stay like this for a day or 2 weeks so I'll use this time as a refresher.
Discipline will take you where luck can't.
  • #57
  • Nov 27, 2008 1:38pm Nov 27, 2008 1:38pm
Cool! Enjoy your national holiday. Maybe tomorrow you'll spend some of your earnings from trading on all those amazing Black Friday deals.

Have a nice one.
On a journey to consistency.
  • #58
  • Nov 27, 2008 8:38pm Nov 27, 2008 8:38pm
Quoting Tataocb
Cool! Enjoy your national holiday. Maybe tomorrow you'll spend some of your earnings from trading on all those amazing Black Friday deals.

Have a nice one.
Love the savings but hate the crowds so I'm passing on Black Friday. I wonder if you still get the same deals if you shop online ?
Discipline will take you where luck can't.
  • #59
  • Nov 28, 2008 9:57pm Nov 28, 2008 9:57pm
Depends on the store, some have the deals online, a lot have deals only if you go in the store. In the past they had unadvertised deals for early shoppers, which I would think would defeat the purpose of having a deal (i.e. to bring in more shoppers who want the deal), but it should be interesting to see how bad/really bad the retail numbers work out this year.
  • #60
  • Edited 4:23am Dec 1, 2008 3:25am | Edited 4:23am
50+ (London)

trade #2 72+ (London)
Discipline will take you where luck can't.
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