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Trade what you see NOT what you expect

  • #201
  • Jan 24, 2009 5:40am Jan 24, 2009 5:40am
Whats up EO

thanx for the thread have read it twice this week end.
have a couple questons for you.
1.) why dont you use any indicators on your charts, EG: RSI,MACD, ETC.
2.) how do you study price action, or where can you red up on it?

thanx for your help!
Keep It Simple Stupid
  • #202
  • Jan 24, 2009 7:58am Jan 24, 2009 7:58am
Sorry, more questions.
i have been studying the 12 basic chinese candle patterns.
is price action the way the price "forms" the 15m candle?
and i have been studying the chart on post 56, the day after thanxgiving 15m chart, am i correct in saying you watch the price action on the candle and when you identify a "long" wick you take the relative action on the opening of the next candle?
Keep It Simple Stupid
  • #203
  • Jan 25, 2009 11:04pm Jan 25, 2009 11:04pm
Quoting Alastair
Whats up EO

thanx for the thread have read it twice this week end.
have a couple questons for you.
1.) why dont you use any indicators on your charts, EG: RSI,MACD, ETC.
2.) how do you study price action, or where can you red up on it?

thanx for your help!
Thank you for the compliment. Hope it's been helpful! The only indicators I use are the ma's. I don't understand the other types that are out there. The ma's to me provide key levels and targets for TP and setting my SL's.

Price action is the candle formations that develop. There are numerous candle formations and I surely don't know them all. I just have key ones that I watch for and take the trade. I understand the James16Thread has some excellent information that should probably be read. I have not taken the time to read the thread.

Hope this helps!
EO
Just digging in the trenches like everyone else!
  • #204
  • Jan 25, 2009 11:09pm Jan 25, 2009 11:09pm
Quoting Alastair
Sorry, more questions.
i have been studying the 12 basic chinese candle patterns.
is price action the way the price "forms" the 15m candle?
and i have been studying the chart on post 56, the day after thanxgiving 15m chart, am i correct in saying you watch the price action on the candle and when you identify a "long" wick you take the relative action on the opening of the next candle?
It's not just on the 15m candle. These patterns apply to all the candles on all the time frames. I like to use the 15m chart to narrow my entry. My 4h/1h to help with larger targets and confirmation of the trade.
Just digging in the trenches like everyone else!
  • #205
  • Jan 28, 2009 4:30pm Jan 28, 2009 4:30pm
EO I am confused a little about the 15m 50 moving average, is it an sma or ema? On one of your original post you list a 50sma but I thought I saw on some other post of yours you talked about a 50ema on the 15m. Could you please clarify that for me, thanks.
Please ask questions and share your experiences with us all!
  • #206
  • Jan 28, 2009 4:42pm Jan 28, 2009 4:42pm
Quoting bkg102665
EO I am confused a little about the 15m 50 moving average, is it an sma or ema? On one of your original post you list a 50sma but I thought I saw on some other post of yours you talked about a 50ema on the 15m. Could you please clarify that for me, thanks.
I use both, if you want to simplify your charts, just use the 50ema.
Just digging in the trenches like everyone else!
  • #207
  • Jan 28, 2009 7:06pm Jan 28, 2009 7:06pm
Quoting eohater
I use both, if you want to simplify your charts, just use the 50ema.
Thanks bro just wanted to start trying the 50ema bounce and wanted to make sure I had all the correct info. Thaks for the help!!
Please ask questions and share your experiences with us all!
  • #208
  • Feb 1, 2009 2:08pm Feb 1, 2009 2:08pm
I have two pdf files I would like to share. I did not create them, but I think everyone will find them resourceful.

Trade well!
EO
Attached File(s)
File Type: pdf CandlePatterns.pdf   471 KB | 3,163 downloads
File Type: pdf 5_PricePatterns_2008.pdf   83 KB | 1,502 downloads
Just digging in the trenches like everyone else!
  • #209
  • Feb 1, 2009 4:01pm Feb 1, 2009 4:01pm
Quoting eohater
I have two pdf files I would like to share. I did not create them, but I think everyone will find them resourceful.

Trade well!
EO
Hello everyone,

Thank you EO for keeping up with this helpful thread. Since the discussion came up regarding candlestick patterns, I would also like to share with you an ebook collection by the man I consider an authority on candlestick patterns, Steve Nison.

http://www.pdf-search-engine.com/steve-nison-pdf.html

Whatever method we use to trade, price action should confirm our entries (and why not, exits) so as to have a high probability trade.Please bear in mind that the location (i.e price range) where these patterns take place is what's important to ensure their credibility as good entries into a trade.

Happy Trading.
  • #210
  • Feb 2, 2009 12:48pm Feb 2, 2009 12:48pm
EO, I will definitely add these pdfs to my arsenal to review. I've read a lot over the last several months(not nearly as much as I'd like) and to me, PA has been the most realistic and most effective strategy for entries and exits. I found that being ignorant of candlesticks, left me with no good reason to enter or exit a trade and subsequently bad entries and losses or early exits and missed profits. Either way, I was screwed and haven't been able to maintain my profits. I was basically just taking shots with a 'gut feel' and having very mixed results. BTW, my 'gut feel' seems to be a good part of the successes I've had, but without PA, I've noticed huge problems. Anyways, don't want to hijack your forum again. I just wanted to thank you for teaching some of us to fish. I think I remember seeing you post somewhere that you were from the Midwest. When my plans work out, someday soon I'll be able afford a trip home to the great state of Ohio to see some family. If I'm in your area I'd love to buy you a beer.

Vourvoul, I second your recommendation of Nison's book. I downloaded it from somewhere and started to delve into it and it's excellent so far. I need to concentrate on some trading psychology stuff first, and plan to finish reading 'Trading in the Zone' first, otherwise I'll continue my little trading meltdowns and won't have anything left to be successful with trading PA. Good luck(errr skill too) all!
therealisttruest (FF wouldn't let me put my full ID because of length)
  • #211
  • Feb 3, 2009 3:02am Feb 3, 2009 3:02am
therealist
I have found that staying out of the forums has helped me greatly in my trading, I will be back to them to comment once I have made sure i can ignore most of the calls and use what I see. I have been doing fairly well so far and am a lot less confused by other opinions. The price action will be very good for you to learn so keep up the process.

eo
keep up the good work, I am dipping into your thread occasionally to see whats been going on.

Cheers
please DON'T copy my trades I am still learning
  • #212
  • Feb 3, 2009 11:39am Feb 3, 2009 11:39am
ez, I agree with you on avoiding the forums. I have found it is best to avoid most analysis that isn't my own. It is not that I am a good analyst, quite the contrary. It is just better for me to learn and not form a bias, which can easily happen if you read these forums sometimes. I'm trying to stick to teaching forums, like EO's and a couple others I have found. I do read the GU forum a lot, but until I can add something of value, trying to keep posting to a minimum. I am still at the point where I get confused often and wish I could ask which direction a trade is going, but I realize it's silly to ask and nobody truly knows for sure anyways. I HATE when I see newbies, like myself, asking which direction. They are just trying to avoid learning and doing the work. Anways, said enough.... thanks for the feedback.
therealisttruest (FF wouldn't let me put my full ID because of length)
  • #213
  • Edited 3:17pm Feb 3, 2009 2:33pm | Edited 3:17pm
Good post, EZ and Therealist........Starting this year, I have also stayed out of forums while trading and decided to study while waiting for the market to make a decision.

I always heard of the good traders staying out and now I can see why.

EO, Infinity and Steelhead are the only ones "I" know that have eliminated the distractions of the thread and trade with great results. Way to go guys!!!!!

HOLLA
  • #214
  • Feb 3, 2009 3:35pm Feb 3, 2009 3:35pm
Quoting Turtle
Good post, EZ and Therealist........Starting this year, I have also stayed out of forums while trading and decided to study while waiting for the market to make a decision.

I always heard of the good traders staying out and now I can see why.

EO, Infinity and Steelhead are the only ones "I" know that have eliminated the distractions of the thread and trade with great results. Way to go guys!!!!!

HOLLA
Turtle
You are on your way to even more success NOW.......
dont follow the herd.....they dont know where they are going.
take care

baz
  • #215
  • Feb 3, 2009 4:36pm Feb 3, 2009 4:36pm
Thanks for the pdf's Eo.

They add weight to the theory and also helps me understand what the hell some of the guys on the forums are on about.

Ive also got to agree with Turtle, avoiding the forum sometimes makes it a lot easier to make a good call, and not get confused with the trading style of others. Although it is always intresting to see others setups and to find out if your in the same trade as the likes of infinity and yourself Eo.

I've printed that much off recently my printer needs topping up.

Keep up the good work my friend.
  • #216
  • Feb 4, 2009 10:56pm Feb 4, 2009 10:56pm
Trading and the forum.

It appears to be challenging for many and it shouldn't. Your system should be the pilot, not the forum. If your system says take this trade, then take it, don't have a hesitation to it, no emotions. If your coming to the forums to find out what your trade should be, then you're coming for the wrong reasons. This is a place to relax, share other view points, methods, and friendship. Trading is truely a lonely and boring occupation if your looking at charts all day long. Most of our spouses don't get it, many of our friends outside of trading don't get, so who else do you have to turn to and share what your going through. Others who are experiencing the same emotions and conflicts that you are.

So, to recap why I started this post, have your plan of action ready before you come online to the forum. When you get up and go to your charts, drink your coffee, review all your timeframes, determine what the market is doing, outline your strategy, then go online knowing what your doing. There are many times I will already be in a trade before I even come onto the forum.

Trade well everyone!
EO
Just digging in the trenches like everyone else!
  • #217
  • Feb 4, 2009 10:58pm Feb 4, 2009 10:58pm
Quoting Si Tr4d3r
Thanks for the pdf's Eo.

They add weight to the theory and also helps me understand what the hell some of the guys on the forums are on about.

Ive also got to agree with Turtle, avoiding the forum sometimes makes it a lot easier to make a good call, and not get confused with the trading style of others. Although it is always intresting to see others setups and to find out if your in the same trade as the likes of infinity and yourself Eo.

I've printed that much off recently my printer needs topping up.

Keep up the good work my friend.
Glad you found them of value!
Just digging in the trenches like everyone else!
  • #218
  • Feb 4, 2009 11:20pm Feb 4, 2009 11:20pm
I put this on the cable thread today, thought I might repost it here as well.

Notice how she was ranging back and forth over the ma's. I have this area blocked off with the black lines. When the ma's are flat like this, it makes for a great opprotunity to scalp her back and forth, watching your PA and not being married to your position. Now, if that's not your style, she did break out of the range. I'm not talking about the breakout of 4500, I'm talking about the range it had formed for the day. Here is where I used my 5/10ema to get into the trade. I missed it from the bottom, but I had the confirmation when the 15m candles wouldn't close under the range top. Once that happened, I set a PO for the price between the 5/10ema. I would normally only go with the price of the 5, but with the long wick on the prior candle, I wanted to reduce my risk. My SL was the price of the 50ema. I knew the break of 4500 was going to be limited because it was a high selling area, but at the same time, when she breaks out of her range, she's usually good for 100 pips or so. The PA showed me it was time to get out and at the same time, I knew I wanted to short her up there, so I closed and reversed my position. My broker is great about this. If I have 5 longs and I want to close and go short. I order 10 shorts at X price and it closes out my longs and sends me marching short with 5.
Attached Image (click to enlarge)
Click to Enlarge Name: chart.jpg Size: 162 KB
Just digging in the trenches like everyone else!
  • #219
  • Feb 5, 2009 9:53am Feb 5, 2009 9:53am
Quoting eohater
Trading and the forum.

It appears to be challenging for many and it shouldn't. Your system should be the pilot, not the forum. If your system says take this trade, then take it, don't have a hesitation to it, no emotions. If your coming to the forums to find out what your trade should be, then you're coming for the wrong reasons. This is a place to relax, share other view points, methods, and friendship. Trading is truely a lonely and boring occupation if your looking at charts all day long. Most of our spouses don't get it, many of our friends...
Great post.......I have been doing this the whole week and trading has been great. Sometimes as a "Turtle" it takes me a little longer, but once I get it, I'm on my way.

HOLLA
  • #220
  • Feb 5, 2009 10:43pm Feb 5, 2009 10:43pm
I heard someone today on the cable thread say they didn't like the pitch of their ma's that they were too steep. Here's my view, when the ma's get a sharp pitch to them, like they are pointing at 2:00, my trades go into a trend trade, looking for longs off the 5/10ema's and looking for my exit with PA. When they look like they are pointing at 5:00, my trades turn into shorts off the 5/10emas. This is easily seen on the 15m chart.

Now, put this with when the ma's have been flat, we've been ranging or ping ponging across the ma's on the 15m. She breaks out, either north or south. The ma's will shift and angle either up or down, the 5 and 10 are the first to shift. Look for confirmation of the breakout by the close of your candles. Once confirmed, it'll usually only take one candle, you can set PO's for a price around the 21ema, 10ema, 5ema and let the market pull you into the trade. SL are usually two ma's lower than my entry price. So, if I get in on a price around the 10/21, my SL will be below the 35/50. I will determine which one I will use based upon how the wicks are on the candles, especially the confirmation candle.

Go back on your charts and you will see what I'm talking about. Remember, when it's live, you need to pay attention to you upper time frame candles.

If you have a question, please don't hesitate to ask.

Trade well!
EO
Just digging in the trenches like everyone else!
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