Jacko's Forex House of Pleasure and Pain

that it's the fib level most likely to show the strongest resistance or support...

I think I have read somewhere from Jacko, that the 50% Fibs is what big players like institutional traders look at as a retrace.

Someone at babypips.com mentioned that Jacko's system was covered in a PDF. Does such a document exist?

it's in this thread....

I wasn't turning up results for searching for pdf in the thread but then I remembered the little paper clip next to the thread name that shows all the attachments. It's in there with a lot of other good stuff.

Got it.

Thanks

Hi.
I am new in trading. I need help. I placed a sell order Euro/USD at 1.33151 and I put limit about 6.5 pips. Now the market is closed and will open in a couple of hours. I see that the chart has started to move and going down. If it hit my limit, will it close my position during close trding hours?

TQ

its getting really interesting now.

high price of 1.3457 at my daily trendline......

will it break the trendline and close above it???

or

will it go down from there???

it has been really strong lately, but with all the borrowing the US government is doing, foreigners will have to buy the US$ to place their funds.

I know the euro has been really strong, but I think it will go down, but I might be wrrrrrrrrrrrrong

I`ve placed a sell order @ 1.4455 with a SL of only 10 pips.

Gday Yonnie

Please don't take this as a criticism as you may well turn out to be absolutely spot on but i'm just putting it forward to wait for price action to give you the heads up that price is going south? I read your post and as i said you may be right but 10 pips isn't much to give it to head your direction. It only needs a quick spike and you are done whereas if you wait for price to stall at this trendline then turn down you may well then have a better entry with less risk as momentum and price action is now on your side. Sure you might give up a few pips to get in but hopefully the risk is a lot less.

These are all just personal observations and by no means do i claim to be right but i just thought i'd put them forward.

Happy trading

thanks zorroz, always appreciate other people`s opinion.

how would you play this; can you give me some figures?

Glad you took my comments as intended Yonnie. I'm not game to post sometimes as there is so much tension on these forums that you get shot down no matter what haha.

I might pm you with how i'd approach it beacuse whilst i totally agree and trade "virtually" to Jacko's appraoch i actually use a couple of ma's to help tell me where momentum is and what i can expect. I also believe heavily in bar analysis and how bars form in realtion to how they open and close. My approach therefore isn't 100% Jacko's so i better not deviate from the thread.

Yonnie

I just went to pm you but found out that i can't so while trying to remain in line with how this thread is meant to run i'll just say that at the moment we are

1. hitting up against a long term trendline

2. however short term momentum is still UP but looks to be stalling a little

3. this doesn't mean that we won't muck around for awhile and then push through the t/l

4. what i am wanting to see is continuing to stall and then short term momentum start to turn around and head down.

5. Then i will be looking for a significant bar that has an open and close in opp thirds closing lower

6. now lets say we are looking at this on a smaller tf then i'd hazard a guess and say it could be around the 3420 to 3410 mark before i'm comfortable to go short but i really don't like trying to predict levels. I would be watching pretty closely though because we are still up on the 1 hr and 4 hr too. i'd rather wait and let price tip it's hand and tell me where to get in. I know alot of people here want to choose prices and levels though which is fine if that works for them but it's not normally something that i like to do.

7. all i try and do is ask myself what is the market trying to tell me. I think alot can be gained from looking at the range of the bars and also how a bar closes. when i feel momentum has died and is now turning around then i look to bar analysis to tell me when to get in along with hh hl's or lh and ll's.

I'm not meaning to be ambiguous but if this is to turn around then i bet that at some stage on a 15 min tf we get a strong bar down opening and closing in opp thirds where price virtually doesn't look back and that will go on to form a nice bar on the four hr for price to fall off.

Go to any chart on any tf and you will notice that the strong bars after a period of consolidation mean something alot of the time. Quite often they are telling you that there is momentum in the move and for very little risk you can take a trade and at least get into almost immediate profit. From there on in it's up to you to manage the trade.

Just realised that i have already gone on a bit too much and that i am straying from this thread so i apologise for that.

happy trading

zorroz,

thank you for the head-up and I wouldn`t be surprised if Jacko looks at it from the same angle.
and even if it is a little different, he encourages different points of view

so I`m encouraging you to speak your mind and I`m sure lots of people would be looking at the 1.4415 to break and sell @ 1.4400

btw: still in, having a lot of fun with my little trade already.

haha geez mate don't do that to me about the sell area. i knew i shouldn't have put it down haha. all i would say is that if it sets up right "for me" and that if i did take a sell at that level then i would be watching it closely as we still have upward momentum on the 4 hr so it could head back up again or muck around some more before we fall. as i prev said i try not to predict levels, i'd rather wait and trade the action as it is in the present.

I guess all i like to see are a few things in my favour suggesting that the highly probable outcome is a move in my direction so my risk is limited as much as possible before i take the trade and not just trading at a level because it is a historical trendline etc. Thats purely how i approach it however and i'm definitely not saying it is right as i'm sure there are many traders that trade off the hit of a trendline immediatley and do very well that way. If you turn out to be right then you will be a good 40 pips or so better off than i would be and already be at b/e and thats fantastic.

it's simply what works for each individual and what they are comfortable with and if it's profitable then giddy up. for myself, the more things on my side to increase the probabilities the better and i like to trade in the direction of momentum.

happy trading

zorroz,

I edited my post slightly; I didn`t mean to sell @ 1.4415

I would look for a break of 1.4415 and 1.4400, then a retrace to 1.4400 and when that fails, sell @ 1.4400......

cool yonnie

i was thinking of how i can put my view down to convey it properly but it's a little hard as i won't be entering just at the first hit of those levels and alot my style is pretty discretionary.

i'm looking for reasonably strong bar down soonish then for price to head back up a little to make a lower high and then a strong bar down to possibly trade off so we still have a bit of mucking around to do if i am to take a trade short.

I'm still looking to trade it Jacko's way but trying to time my entry best to minimise risk.

looks like a good strategy to me and you seem a bit more careful than Jacko. have you been doing this long enough to able to compare the results?

if a clear trend is there (not now), I think Jacko wouldn`t muck around and will just hit a round number after a retrace and employ his AH system if the trade turns into a loser.

I know that there have been times that Jacko has made a call and i have waited for price to swing that way and for short term momentum to swing around on lower timeframes rather than just jumping in on his call. I may give up some pips doing that sometimes but it's just a comfort thing for me. I also on occasions won't go into drawdown as much as him but at the end of the day he is the gun trader here and i can see with his method that he is keeping everything as simplistic and regimented as possible to trade his way.

I haven't really kept records as to comparing results as there have been times when i haven't followed his signal because it was conflicting too much with what i saw and on occasions that has proven correct and on others incorrect and he has been able to get 100 pips or so for example where i still hadn't taken the trade. what is comforting though is when i start to see my style setting up and i get a msg from jacko saying the same. those usually work very well. it's the little things i have got from jacko that make a difference. it's like having a teacher there reminding you to be patient and disciplined. we all know that we should be like that but it's his "philosophies" i suppose that help me more than his actual signals.

really those of us that are involved with him know how we should enter and when we should be looking for something to happen, that side of it isn't that difficult to understand but it's the patience, disicpline and then taking action that helps me the most. i just try and line my ducks up as much as possible and as jim rogers says wait until there is money lying over in the corner and all i have to do is go and pick it up. easier said than done though haha.

you made a good point there yonnie that i didn't respond properly to.

when jacko was riding eur/usd up on the big uptrend over the past couple of years or so, notice how even when it came back and hit the trendline that it didn't really just hit it and jump away. price more of less stalled a little bit and then turned back to the upside. all i'm trying to do is get on when it is turning to the upside rather than go through the choppiness that can sometimes happen around those areas. admittedly i might miss a bit but if i have the overall trend on my side confirmed by price action and short term momentum then it has to reverse pretty convincingly to get you.

i know it's always to good to get the best price possible but that i feel is playing with fire a little bit as well. again all this is my personal view

go to a daily chart of the eur/usd and check out the bars of the following days and this might help in explaining what i'm looking for

1.14/3/2006

2. 30/3/2006 (failed one)

3. 4/4 2006

4. 17/4/2006

5. 30/6/2006

6. 26/10/2006

7. 14/2/2007

8. 22/6/2007

9. 29/6/2007

10. 7/9/2007

11. 27/12/2007

12. 26/ 2/2008

13. 20/5/2008

14. 25/6/ 2008

15. then to the short side the 30/9/2008

now my point is, that by waiting for the trendline to be hit and then taking these kinds of trades there isn't often where we would need the AH as most got into profit of some description. the same thing happens on smaller tf's though and thats all i'm trying to do is to narrow it down to the path of least resistance and reduce my risk by looking for similar types of entry bars. sure i won't trade as much and i also stand the risk of missing out on pips but by having that kind of momentum on my side i can feel confident that i have some probability on my side. Once i do get my entry though i can then manage it just how jacko would. i'm simply trying to minimise drawdown and risk and give myself the best opportunity of getting on a move in the direction of the underlying trend.

sorry to all for having gone off course a bit from the thread. i'll shut up if thats what the overall feeling is. apologies to jacko.

kind regards

i just quickly did some eg's to roughly show what i look for and then to trade and manage a la jacko. this eg is off a daily chart. a picture is usually better than my words

Just a quick question. Why place a sell order at 1.4455 when resistance is at about 1.4876. doesn't this turn the odds against you as it is less likely for price to stall at 1.4455 ? I got the resistance from the chart so i may be looking at the chart wrong. just checking to see if i'm misssing something or if your trade has been placed by a predetermined strategy. please share your reasoning as i find that there is nearly always something to learn by listening to somebody elses point of view.