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Psych Levels, Pivots, and Trendlines - Resurrected

  • #2,281
  • Mar 23, 2009 2:12pm Mar 23, 2009 2:12pm
Quoting eyevoltage
Nice trade, Dan, but don't worry about it not piercing the xx50 psych-line. In this instance, you merely used the 34ema (I presume?) as support before take-off!! Well done, mate!
Yeah that's it - although I do like the candle to pierce the line normally, at times like this when you have a good formation not far from the line but with a bias in the direction of the trend; the 34ema acts as a good level to trade from.

I just wanted to add – although I have only been using this method for three weeks now I can’t get over how good it is. Although I am getting good results with my longer term method, this strategy, when used properly, is so good that I am considering dropping my longer term method in favour of it. The real beauty of it is the simplicity - when you get confluence of the psych levels, current trend/EMAs and a candlestick formation/trigger the chart just shouts out "TRADE ME"!
  • #2,282
  • Mar 23, 2009 3:20pm Mar 23, 2009 3:20pm
Quoting DanUK
Yeah that's it - although I do like the candle to pierce the line normally, at times like this when you have a good formation not far from the line but with a bias in the direction of the trend; the 34ema acts as a good level to trade from.

[color=black]I just wanted to add – although I have only been using this method for three weeks now I can’t get over how good it is. Although I am getting good results with my longer term method, this strategy, when used properly, is so good that I am considering dropping my...
Yeah, it does tend to grab you like that, doesn't it? I'm absolutely certain that the originator of the thread, acumen, will be delighted that you and so many of us have taken to it in such a positive manner. I'm just glad that he decided to resurrect the thread. He's the man!
  • #2,283
  • Mar 24, 2009 2:00am Mar 24, 2009 2:00am
GM - cable's rally faltered after it broke ite 4700 level in the Asian Session.

Its 6:30 gmt last push up on high volume could only add 8 pips - a clear signal of weakness in an overbought condition - the sell was also clear on the 1 min chart at ~722 - or half way along the 5m candle, which I also use as a trigger point.

I took the ride down to the 75 level and banked my first pips of the day. I post a chart later - too busy right now!
Trading Levels with WRBs
  • #2,284
  • Mar 24, 2009 5:52am Mar 24, 2009 5:52am
Great example of what I meant yesterday about trades that shout out...

EUR/CHF 5m - Shooting star formed piercing the 1.5300 psych level and closed lower, below the 34ema. Sold below at 1.5293 and closed out at 1.5273 (20 pips profit for 10 pips risk).

As the chart shows I could have held on for a 1:3 trade (and maybe more) but I am happy with 1:2!
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  • #2,285
  • Mar 24, 2009 7:55am Mar 24, 2009 7:55am
A nice trade from DanUK earlier.....well done, mate.
This one is from 5m eur/usd; a breakout from a mini-range. The actual entry was just under the xx50 psych-line, which at that point was forming a confluence with the 13ema. A straightforward drop down into the xx25/xx20 psych-zone, and a rapid bail out for yours truly.
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  • #2,286
  • Mar 24, 2009 8:28am Mar 24, 2009 8:28am
A similar one to the eu trade earlier.
Another little mini-range providing a breakout southwards. A slight delay in entering, waiting for price to drop below the xx80/xx75 psych-zone, and then a quick exit as price just went under the xx50 psych-line. These little mini-ranges happen all over the place and often provide a nice quick trade.
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  • #2,287
  • Mar 24, 2009 5:13pm Mar 24, 2009 5:13pm
Quoting eyevoltage
Where is everybody?
Here's a slightly different way of trading from my usual method. ... When price and the 13ema finally met by way of a small doji, there was a break above the 1.4600/small resistance line confluence.
EV, a very interesting trade. Is that the first one of that kind? How/why did you decide that MA will push the price in your direction (just curios where you were coming from - I am using such an approach rather often).

P.S. Thanks for nice contributions to the thread! You, Islander and few others really keep it going!
One Chart is Worth Ten Thousand Words.
  • #2,288
  • Mar 24, 2009 5:14pm Mar 24, 2009 5:14pm
Quoting DanUK
The real beauty of it is the simplicity - when you get confluence of the psych levels, current trend/EMAs and a candlestick formation/trigger the chart just shouts out "TRADE ME"!
I do agree. This is not a Holy Grail (nothing is/could be), but it is as good as it gets.

Thanks, Psych Levels gang, for all your guidance!
One Chart is Worth Ten Thousand Words.
  • #2,289
  • Mar 25, 2009 3:45am Mar 25, 2009 3:45am
An early start for me this morning, this time on 5m eur/usd.
A Harami formed right on the confluence of the 13ema and the xx50 psych-line. Entry just under the low of the Harami. Normally, one would require a confirmation after a Harami, but in this instance, price was just under the psych-line and the ema was looking strong for further movements downwards. Exit after price reached the xx25/xx20 psych-zone.
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  • #2,290
  • Mar 25, 2009 5:54am Mar 25, 2009 5:54am
Another little trade on EU, prompted by the spinning-top (1) and the bullish engulfing candle (2). Entry just above the high of the B.E.C. and exit as price started retreating downwards into the xx25/xx20 psych-zone.
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  • #2,291
  • Mar 27, 2009 8:51am Mar 27, 2009 8:51am
Here's the Sweet Spots indy that a couple of VSA traders asked about
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File Type: ex4 SDX-SweetSpots.ex4   3 KB | 280 downloads
Trading Levels with WRBs
  • #2,292
  • Mar 27, 2009 10:13am Mar 27, 2009 10:13am
The medium term trend was down as price held under the hourly 20 and 50 emas (green) and then nicely got held by the aqua 34ema.

There were numerous opportunites to sell and later in the US session to trade the 275 / 350 channel....I hope others managed plenty of pips too.

Till Monday - a good weekend to all.....
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Trading Levels with WRBs
  • #2,293
  • Mar 30, 2009 7:45am Mar 30, 2009 7:45am
I garnered 10 pips out of the price reversal before it pulled back.
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  • #2,294
  • Edited 7:53am Mar 30, 2009 7:51am | Edited 7:53am
Quoting mdowd
I garnered 10 pips out of the price reversal before it pulled back.
Well done, mate! Nice one.


Edit: I presume you entered just above the 23.6% fib line? Is that right?
  • #2,295
  • Edited 9:38am Mar 30, 2009 9:23am | Edited 9:38am
Hi Acumen and Eye and everyone else.

I have been trading S&R and Fibs for awhile (Sam Seiden and James16). Kissfan suggested your thread and I started following it last week. After 3 successful days on demo last week I went live this morning and the first one out of the chute was +71 on EU.

Also..until your thread I have never heard of Psych levels at 20 and 80. It's amazing how price reacts there.

Thanks for a great, simple, strategy and all the hard work you guys do.

Mike G
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  • #2,296
  • Mar 30, 2009 9:50am Mar 30, 2009 9:50am
Actually I entered below that when the candlestick I entered on was clear as a bullish engulfing move. The problem was the exit because the prices started jiggling up-and-down.
  • #2,297
  • Mar 30, 2009 10:27am Mar 30, 2009 10:27am
Quoting mdowd
Actually I entered below that when the candlestick I entered on was clear as a bullish engulfing move. The problem was the exit because the prices started jiggling up-and-down.
Hmmm...ok. I do not see a Bullish Engulfing pattern on my trade since this was a BEARISH setup and trade direction.

I too was concerned about the up and down movement and moved my SL to BE +1 at +26 after that it was a free trade and I was shooting for my TP2 on the FIB. I had an alert set at TP2 and by the time I got back to my computer to close the trade, it had dropped to 3120 where I got out.


MG
  • #2,298
  • Mar 30, 2009 10:33am Mar 30, 2009 10:33am
Mdowd...thanks for your reply mate, although I can't see a bullish engulfing candle on my chart. Doesn't matter though, you still got a nice trade out of it.

Matrixxdg...welcome to the thread, mate, and congrats on the nice haul of pips. Look forward to some more charts from you as and when.

Cheers
  • #2,299
  • Mar 30, 2009 10:37am Mar 30, 2009 10:37am
Quoting eyevoltage
Mdowd...thanks for your reply mate, although I can't see a bullish engulfing candle on my chart. Doesn't matter though, you still got a nice trade out of it.

Matrixxdg...welcome to the thread, mate, and congrats on the nice haul of pips. Look forward to some more charts from you as and when.

Cheers
Thanks EYE, been trading with Shermenator and the boys on the "No Brainer" thread.... But love this idea to supplement my longer TF trades. Fills the time while waiting for my S&R trades to setup.

Thanks..MG
  • #2,300
  • Mar 30, 2009 11:06am Mar 30, 2009 11:06am
Hi All,

Ok! I just closed the last trade for the day. Do not want to temp the "Market Mother".

The EU was retracing and I waited for the PA to hit the 34 EMA where it also converged with Psych level of 3180. I took a short on the way down after it cleared S1 support level. Thought I was going to get stopped out on the next candle, but it hit the 78.6 FIB and continued on down. Did not want to be greedy and got out at the 38.2 FIB @ 3128 for +34.

Done for the day. Everyone have a Great Evening.

Thanks again for a straight forward strategy. It's quickly becoming my favorite.

MikeG
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