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Razors Journal - Basic trading with PA at S/R

  • #21
  • Apr 23, 2009 8:25am Apr 23, 2009 8:25am
Quoting Razor_trader
Eur up about 70 pips,

GBP not active yet but we havent broken the trendline which could be a sign of things to come, I will give it a little more time, if we break above and stay above the trendline I will remove the trade.

Chart below to explain

Hi razor just thought id pop in and say good luck with the journal!

i do have a small question... how do you deal with ib's that are formed within ib's (as in the above trade?) do you move to the newest ib for entry or stick with the original entry/exit (just a bit of devil advotate)

anyways best of luck
  • #22
  • Apr 23, 2009 8:30am Apr 23, 2009 8:30am
Quoting tdeu
Hi Razor,

this is a daily AUDUSD.

What would you suggest with this one? Two IBs closed in different directions. Broke already long.

For taking partial profits with daily or weekly IBs have a look at weekly/monthly pivots and s/r.

regards

tdeu
I would take neither***. My rules state with Daily and Weekly IBs I take them if they break the next day*** UNLESS the preceeding day is a Pin bar that has traveled past the high or low of the opposite way you are trading.

***SO on your chart say you have the big bearish candle which is complete and has carried quite some momemtum, id want to see either an immediate breakout, or a PIN bar that travels past the LOW and finishes near the open or above. If it breaks doesnt matter (cause if it broke you would be in). This gives me a slow down in momemtum with the IB and a test of lower range before being reject and run up by the bulls. SO in that situation you would have momemtum on your side and the PIN bar would be the LOW forming.

The above situation is a great way to trade and when you look at IB with Pin bars they hold more water than an IB alone (I would personally allow slightly more risk in this situation).

Hope this helps
  • #23
  • Apr 23, 2009 8:37am Apr 23, 2009 8:37am
Quoting icarusfx
Hi razor just thought id pop in and say good luck with the journal!

i do have a small question... how do you deal with ib's that are formed within ib's (as in the above trade?) do you move to the newest ib for entry or stick with the original entry/exit (just a bit of devil advotate)

anyways best of luck
Usually stick with the first one on lower timeframes otherwise the above post tells all. The second IB is a good opportunity to lower your risk, but you also lower the range the market needs to run backwards to knock you out.

MY views on pip risks are they dont bother me as I manage the money side around it. At the end of the day the % allowed per trade is the same, just smaller lots if the pip risk is greater. The greater the pip risk can mean the less return (as opposed to getting in on 30 pips IBs and running to 300) but can also mean more losses.

Its all balance which is why I have no problems with the higher TFs. They cost the same but have less significantly less trades.

I will say this though, I have only been using this method for a couple of months. My results on all TFs have been quite good in terms of returns. The dailys naturally take longer to mature, but I am still working on the best way to approach these. My GBP/JPY weekly worked out well, I took off the table what I felt was comfortable and for a few days it was a great decision with PA returning higher. It has since dropped back down so I could have made more but I was comfortable with my decision.

I am always looking to learn more about myself through trading in a disciplined manner. It is something that I did in the beginning, then detered from and now have really given myself a challenge and goal to stay focused.

Thanks for dropping by

Razor
  • #24
  • Apr 23, 2009 8:40am Apr 23, 2009 8:40am
GBP was knocked out for a 58 loss. The trendline is still in play so price could go either way. I copt a little spike that knocked my SL but hey that happens.

EUR is still in play till tomorrow. Camping weekend with the kids so I will exit it in the morning regardless of Profit or loss.

Next week will be hopefully a full week of trades. My mower is back in business so I have heaps to do but will still have time in the evening to do some trading.

Take care all
  • #25
  • Apr 23, 2009 8:51am Apr 23, 2009 8:51am
Quoting tdeu
Hi Razor,

this is a daily AUDUSD.

What would you suggest with this one? Two IBs closed in different directions. Broke already long.

For taking partial profits with daily or weekly IBs have a look at weekly/monthly pivots and s/r.

regards

tdeu
Just a note on your IB chart. If you have a look at the first IB that has formed (bearish one) you would have been in the next day. However been disciplined and letting the trade work out would have allowed you to be in on the day when it fell through the floor. That is the view of trading Daily IBs. You need to trade them off a daily chart and monitor them off a daily chart.

Had you traded the 1 candle you would have seen the result in time and be up more than 2 times your risk. How you handle profits on a daily range is completely up to you. You are not looking for the massive Risk/Reward that you get offered with hourly or 4 hourly charts because your pip range is much larger. However you would have only traded that 1 candle, been up more than 2 times that large risk and had possibly (everyone is different) less stress (if you viewed it as a longer term trade).

Now bearish on the aussie is against the daily and weekly trend so you probably would have taken some luck on your side and exitted after the big drop. The aussie has got resistance at around 7330 which was the last swing high, from there the real next resistance point is at around 7800 which is 600 pips away. If you took the IB (one in the previous post) which has the doji next to it it probably wouldnt be a bad trade. Time would tell but at the moment we are moving up on the aussie, and the idea is to get IBs on the trend that dont get revisited for some time (that the theory behind it lol)

Just more food for thought.
  • #26
  • Apr 23, 2009 7:03pm Apr 23, 2009 7:03pm
Closed the Eur this morning for 180 pips profit.

Good week in all with 300 from Pound/YEN and 180 from Eur. Only loss was the Pound/US with -58 which has since broken the little barrier and gone long.

Gone for the next 4 days on a camping trip.

Have a good weekend
  • #27
  • Apr 24, 2009 4:29am Apr 24, 2009 4:29am
Hi Razor,

misunderstanding.

I mean the trades from the post "My trades so far since starting DIBS.".

regards

tdeu

Quoting Razor_trader
GBP was hourly, was shorting because we are just bouncing continually off the down trendline, got a little spike upwards and knocked me out. Thats trading.

Eur is a daily trade which will be exitted tomorrow morning. Heading down south for the long weekend and not going to have trades run when im out of phone range lol.
  • #28
  • Apr 26, 2009 3:28am Apr 26, 2009 3:28am
Quoting tdeu
Hi Razor,

misunderstanding.

I mean the trades from the post "My trades so far since starting DIBS.".

regards

tdeu
Sorry bud, All the trades for March were Hourly except the Eur/USD which netted the most which was a daily. That trade I held from about the thursday week after I started till the end of march pretty much (i think close to 2 weeks).

The April ones are listed.

Enjoy
  • #29
  • Apr 26, 2009 10:17pm Apr 26, 2009 10:17pm
hi razor... i feel good to be back and see what u are showing
Knock at the sky and feel the thunder
  • #30
  • Apr 27, 2009 8:16am Apr 27, 2009 8:16am
Missed some trades today however will hopefully be back into the swing in a few days. I am setting up a new account with Oanda so I can start trading live again. Unfortunatly the funds with my current broker dont allow much breathing room (damn lawn mower) so the plan is to build through Oanda and then change back, unless I fall in love with Oanda.

Take care
  • #31
  • Apr 29, 2009 6:17am Apr 29, 2009 6:17am
Taken the hourly Short IB on the above pair.

Entry 96.89

SL 97.17.

Screen shot below
Attached Image (click to enlarge)
Click to Enlarge Name: USDJPY Short.gif Size: 14 KB
  • #32
  • Apr 29, 2009 10:11am Apr 29, 2009 10:11am
Closed this trade for a couple of pips gain. There is no momentum to carry this down and price is stalling. I have looked at the daily and there was a hammer yesterday and price has moved above. It could be the bottom of the wave before resuming the daily bull trend. I will take the 4 hourly IB (if it closes that way). Charts below
Attached Image (click to enlarge)
Click to Enlarge Name: USD 4 hourly.gif Size: 22 KB
Attached Image
  • #33
  • Apr 29, 2009 6:49pm Apr 29, 2009 6:49pm
So far the trade plan has worked out. Hit some resistance close to 9800 which I was expecting, however we have broken and closed above the first trendline, just the next one to go and this trade could run nicely.

It is great to have a trade on a 4 hourly with only 40 pips risk. I loaded it up and now at BE regardless with slightly more capital than normal. I will be looking for some more bullish IB's throughout today.

Take care
Attached Image (click to enlarge)
Click to Enlarge Name: USD 4 hourly.gif Size: 21 KB
  • #34
  • Apr 30, 2009 5:16am Apr 30, 2009 5:16am
With the daily at the top of a channel and the 4 hourly looking to produce a bearish Inside Bar. Charts below. 4 hourly is still bout 80 mins from close, but if it stays in range, then the daily top of channel may hold and we could stay inside.
Attached Images
  • #35
  • Apr 30, 2009 5:39am Apr 30, 2009 5:39am
Quoting Razor_trader
With the daily at the top of a channel and the 4 hourly looking to produce a bearish Inside Bar. Charts below. 4 hourly is still bout 80 mins from close, but if it stays in range, then the daily top of channel may hold and we could stay inside.
Looks even better if you look at the 4H with an offset (i.e. closed half an hour ago) - strong pin bar:
Attached Image
  • #36
  • Apr 30, 2009 6:15am Apr 30, 2009 6:15am
This is the problem guys. What chart should one trade?

Quoting SlideDog
Looks even better if you look at the 4H with an offset (i.e. closed half an hour ago) - strong pin bar:
  • #37
  • Apr 30, 2009 6:21am Apr 30, 2009 6:21am
Quoting SlideDog
Looks even better if you look at the 4H with an offset (i.e. closed half an hour ago) - strong pin bar:
dropped like an anvil out of the empire state building, could be a good opportunity for shorting later on.

My USD/JPY is travelling nicely too.
  • #38
  • Apr 30, 2009 6:27am Apr 30, 2009 6:27am
Quoting tdeu
This is the problem guys. What chart should one trade?
The Eur/USD has been a real pain in the butt for long term holding over the past 6 months. It has been really up and down with no great long term trend. The smaller trends have been quite good, and there has been money to be taken if you traded them on the breaks and bounces.

Personally if the daily gives me a nice pin I may just take it. A pin would put us under the top channel trendline which is not currently what im trading, but I may just extend a trade to see what the outcome may be.

Take care

As for TFs, if you see something you like then add up the pros and cons and trade it the way you see.

Like last night, i took a trade which seemed good, after sometime of nothing I looked on a higher TF, found a better candle and reversed the trade. That trade is now up 160 pips. My advice, there is always opportunities and information about your trades. Make the decisions that you feel may come off best and be comfortable with it. In the end, you dont know what will happen so just trade as you see.
  • #39
  • Apr 30, 2009 6:33am Apr 30, 2009 6:33am
Quoting tdeu
This is the problem guys. What chart should one trade?
Ultimately, I don't think it matters. A 4h candle on one offset will give an IB, another won't. If two different offsets (just as a higher TF) gives contradictory signals, then perhaps one should take caution (or a lower % position). In this case you've got a pin bar on one offset, which according to candle theory should be confirmed by the next bar as a reversal signal, allied to a bearish IB on a different offset; The hourly showed a bearish engulfing pattern 3 hours ago and is trending the reverse, and we've just bounced off a channel edge.

Of course, this could all be BS and it flies upwards as the next move...
  • #40
  • Apr 30, 2009 9:24am Apr 30, 2009 9:24am
Quoting SlideDog
Ultimately, I don't think it matters. A 4h candle on one offset will give an IB, another won't. If two different offsets (just as a higher TF) gives contradictory signals, then perhaps one should take caution (or a lower % position). In this case you've got a pin bar on one offset, which according to candle theory should be confirmed by the next bar as a reversal signal, allied to a bearish IB on a different offset; The hourly showed a bearish engulfing pattern 3 hours ago and is trending the reverse, and we've just bounced off a channel edge....

exactly. This also adds to the volitility as traders speculate prices. No 2 platforms are the same, and I have witness price fluctuations and different candle structures between platforms. Unfortunatly that is life and why you must trade what you see.

At the end of the day the market is purely there to give a trader information. No 2 traders will view the information in the same light and hence with the fluctuations between what both traders are seeing it is easy to see why 1 trader may buy and the other will sell.

Both outcomes can also result in a win or a loss on both parts depending on how a trader trades. For example trader A who sells is an agressive traders with little regard to SLs, the market may move against him some but ultimately return in his favour. Trader B more conservative has taken a buy and locked in profits before the market turned. The end result is a win for both traders (the opposite could have also taken effect) who took separate trades based on what they saw.

So TFs dont matter, only what you see and understand and how you execute your trades.

Take care
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