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We all need pivots to win..yes or not? 13 replies

The System (Irony included) 1,175 replies

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The System II (Yes with irony)

  • #1,821
  • May 6, 2009 9:32am May 6, 2009 9:32am
Thanks matte and fxachilles. I've read 1324 before but I re-read it anyways...

I guess there's 2 ways to execute this system with the 20/20 or with trailing stop...I think I might prefer the latter. Time will tell...


Quoting matte
i asked somethig similar.
1-you enter the trade with SL=TP=20 pips! that's all for the first option.
2-you enter the trade with a 15/20 pips trailing stop, and the exit from the trade will come by itself! that's all for the second and last option.
am i been clear?
  • #1,822
  • May 6, 2009 9:35am May 6, 2009 9:35am
Can u post a chart of your "runner" plz fxachilies.... would like to see how you take it.... thx
  • #1,823
  • May 6, 2009 9:36am May 6, 2009 9:36am
I am going to take shot at it on the break, orders are set.
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  • #1,824
  • May 6, 2009 9:41am May 6, 2009 9:41am
Quoting kazaroval
Can u post a chart of your "runner" plz fxachilies.... would like to see how you take it.... thx
on my last chart, last shades is where I took the short, we had a clear 30pip swing shallow pullbacks created the oppourtunity to get on the ride.
  • #1,825
  • May 6, 2009 10:07am May 6, 2009 10:07am
I thought one of the "rules" or guidance if you will was to wait for at least 2 candle pullbacks...and swings of at least 40 pips. I guess you can modify that to 30 pips and 1 candle pullbacks...which will give more trade opportunities hopefully with better results.

Is this what you have done fxachilles?

Quoting fxachilies
on my last chart, last shades is where I took the short, we had a clear 30pip swing shallow pullbacks created the oppourtunity to get on the ride.
  • #1,826
  • May 6, 2009 10:29am May 6, 2009 10:29am
Quoting gorubin
I thought one of the "rules" or guidance if you will was to wait for at least 2 candle pullbacks...and swings of at least 40 pips. I guess you can modify that to 30 pips and 1 candle pullbacks...which will give more trade opportunities hopefully with better results.

Is this what you have done fxachilles?

no thats not what i did there. in this case the whole setup is canceled bcz pullback is way to deep so I wait for better setup which is the one is shaping up now.

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  • #1,827
  • May 6, 2009 10:31am May 6, 2009 10:31am
Quoting gorubin
I thought one of the "rules" or guidance if you will was to wait for at least 2 candle pullbacks...and swings of at least 40 pips. I guess you can modify that to 30 pips and 1 candle pullbacks...which will give more trade opportunities hopefully with better results.

Is this what you have done fxachilles?
you also can trade this as a range breakout. read the postings from FEb about LEVELs and the breakout. Also read FEB tradingjournal here on FF thats all about how to trade the range
  • #1,828
  • May 6, 2009 1:49pm May 6, 2009 1:49pm
hi guys, got a question. see the picture:

the price hit about 1.3320 and then pulled back OVER 50% and also over 61,8% fibonacci level (till zone A), and few minutes ago breaks up the 1.3320 level (zone B), so i could enter long for this trade. but in my opinion, the pullback over the 50% fib level invalidate/nullify the set up, so enter long few minute ago is not allowed, it's an error.
is this right?
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  • #1,829
  • May 6, 2009 2:09pm May 6, 2009 2:09pm
Quoting matte
hi guys, got a question. see the picture:

the price hit about 1.3320 and then pulled back OVER 50% and also over 61,8% fibonacci level (till zone A), and few minutes ago breaks up the 1.3320 level (zone B), so i could enter long for this trade. but in my opinion, the pullback over the 50% fib level invalidate/nullify the set up, so enter long few minute ago is not allowed, it's an error.
is this right?
I am not sure, this is just my humble opinion, and Feb, Fxahilies and other guys can tell me, that I'm wrong... But I think it's better to take set up's where initial swing is more clear. Strong nice move 30-40 pips... And this move (at your chart) is like a noise... I know that we have to take all opportunities, but I think there are more nice initial swings (after them the moves are faster and "more profit"), and swings (initial) that look like noise (for me it's harder to catch profit after them)...

BUT... This is just my opinion...

And I think with more time you'll have hang of 5min chart, then all these things will be clear...

Short time ago Fxahilies did tell me - with more screen time and patience you will be succesful...

... when I don't understand something, I ask my friends here, and re-read this great thread more and more time... it helps me...

Good luck!
  • #1,830
  • May 6, 2009 2:14pm May 6, 2009 2:14pm
Matte!

For me set up has to be like on my chart... :
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  • #1,831
  • May 6, 2009 3:34pm May 6, 2009 3:34pm
Quoting matte
hi guys, got a question. see the picture:

the price hit about 1.3320 and then pulled back OVER 50% and also over 61,8% fibonacci level (till zone A), and few minutes ago breaks up the 1.3320 level (zone B), so i could enter long for this trade. but in my opinion, the pullback over the 50% fib level invalidate/nullify the set up, so enter long few minute ago is not allowed, it's an error.
is this right?

matte,
You are doing this totaly wrong. I highly suggest you read the whole thread specially the early pages .
your job is to identify the most recent swing, not overall picture of the day or half day or sometimes not even last 2hrs. Identify a minimum of 30-40pips swing which has been created most recently. we do not care what has happend in the past. anytime you see a 30-40 pips swing anywhere in the chart, identify it, then draw your horizontal lines, then wait for the pullback, then set your order 2-3 ticks passed the horizontal line. that's it.

I got a live example for you in the making. refer to the chart (blue shades)
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  • #1,832
  • May 6, 2009 4:43pm May 6, 2009 4:43pm
Quoting fxachilies
matte,

your job is to identify the most recent swing, not overall picture of the day or half day or sometimes not even last 2hrs. Identify a minimum of 30-40pips swing which has been created most recently. we do not care what has happend in the past. anytime you see a 30-40 pips swing anywhere in the chart, identify it, then draw your horizontal lines, then wait for the pullback, then set your order 2-3 ticks passed the horizontal line. that's it.
Just my 2c here.

As we are trading on M5, we need to be quick in acting. Any hesitation, we would be left behind. If I'm not wrong, I read in the first few pages, where feb tells he'd like to be one of the early passengers in the bus.

The biggest obstacle to that is analysis paralysis. Looking back a day, 8 hours, 4 hours. I still use it but I've found that this method of trading doesn't need that all. That is what makes this method so simple and easy to pull the trigger with. Once we get into the analysis of "is this the stronger swing or is that the stronger swing", we'll miss out on some nice moves.

The set of steps that fxachiles suggested in the previous post is the antidote to all paralysis attacks. Trust me, I've been there. I still do that sometimes, but since I started looking at this simple method, I am feeling as if a big rock fell off of my shoulders.
  • #1,833
  • May 6, 2009 5:31pm May 6, 2009 5:31pm
fxachilies: ok, all clear but two things:
-i've made all that sign on the graph during the day, not at the end of the day.
-in your example (blue shadows) the pullback is over the 50% fibonacci, so why do you want to take this trade? if the pullback goes over the 50% fibonacci the trade is to avoid! those things makes confusion in my head.
could you please clarify, once for all, this fact? fibonacci, yes or not? do i have to trade EVERY 30-40 PIPS SWING OR JUST THE ONES WICH PULLBACK DOESN'T COME BACK OVER THE 50% FIB?
  • #1,834
  • May 6, 2009 8:46pm May 6, 2009 8:46pm
Quoting matte
fxachilies: ok, all clear but two things:
-i've made all that sign on the graph during the day, not at the end of the day.
-in your example (blue shadows) the pullback is over the 50% fibonacci, so why do you want to take this trade? if the pullback goes over the 50% fibonacci the trade is to avoid! those things makes confusion in my head.
could you please clarify, once for all, this fact? fibonacci, yes or not? do i have to trade EVERY 30-40 PIPS SWING OR JUST THE ONES WICH PULLBACK DOESN'T COME BACK OVER THE 50% FIB?
From feb (post #42)
if the pullback goes deeper pass the middle of the swing high/low, there's a possibility of a weak comeback or either a change of direction.

This is where some discretion might come into play. Or may be the amount of time one spent watching M5 charts during live trading.

If you're not comfortable, then let those trades where pullbacks have gone beyond the 50% level or reduce your lot size/take profits quickly on such trades.

Hope this helps.
  • #1,835
  • May 6, 2009 10:52pm May 6, 2009 10:52pm
Quoting denverdude
From feb (post #42)
if the pullback goes deeper pass the middle of the swing high/low, there's a possibility of a weak comeback or either a change of direction.

This is where some discretion might come into play. Or may be the amount of time one spent watching M5 charts during live trading.

If you're not comfortable, then let those trades where pullbacks have gone beyond the 50% level or reduce your lot size/take profits quickly on such trades.

Hope this helps.
Couldn't say better myself. Excellent explanation.

Listen guys, if you read some of my posts, I am very passionate about not worshiping anything on the charts. The 50% fibo line is just a head warning in case the pullback goes beyond. It's up to you to take the trade of not. Might work..who knows?

Manage your trades on the load(s). If the pullback is deep, just reduce your load an shoot! bam!..or let it go.

Just ask yourself, during the course of a month how many setups were available?? ah??...oh yeah, I know...

The only science you will ever have on this game is 1-2-3 BAM! Stops/Targets...that's it.

The rest is an ART....a craft you must develop every day, in case you wanna be a daytrader, or simple whatever time leisure your choose.

The art of trading consists of how well and fast you can spot a setup and act upon without hesitation.. If the setup fails, then you're on the lookout for the next one....and the next one...and the next one...and the next one..over and over until risk/reward permits.

Attitude is one of the best weapons you will ever have. Be arrogant..yeah!! The market is infamous for screwing sissies!


Once you have all the risk in check, your job is to TRADE!!. You need to pull the damm trigger!! This is 5 minutes/144 ticks charts. No time to double -guessing!!! Is FAST and you need to be there when opportunity knocks.

I had a heated argument with a guy around 20 years ago ,actually he's my buddy now, about the market. Here's the deal: He was so anal about the randomness of the market, that the market is a loser's game, that the market is a controlled chaos, etc etc etc...I said "ok, while you're busy trying to make sense out of the market, I am busy milking the cow to the point of bleed"

Stop trying to make sense out of the market!! That will give ya! analysis-paralysis....Don't over-analyze things...it's time to ACT...NOW!!

Here's a little list , easy to follow.

1) Risk assessment on the trade....ok

2) Load/stops and targets identified by your setup....ok

3) Stops and targets placed....ok

#3 is FAST FAST FAST...DON'T MISS THE BUS...EVEN IF YOU HAVE TO GO MARKET!!!!

#2 Do me a favor please...if is not there don't force it. You either have a setup or not. Sitting in your hands trading wise is good. Trust me.

That's pretty much the end of your "technical (anal)ysis"

I am going to talk or maybe refresh, not sure, some stuff about exit(s) in my next post.

Please allow me to catch my breath, not as fast as I was but getting there.

I will be checking this thread every night (late). There's also a very capable breed of excellent traders in this thread. You have no idea how happy you guys make me feel.

Oh I almost forget...stop counting pips/ticks and start counting ca$h... Pips/ticks is just a way to know how loaded you're gonna go on a trade, at least is how I do.
Peace
  • #1,836
  • May 7, 2009 1:31am May 7, 2009 1:31am
Quoting matte
fxachilies: ok, all clear but two things:
-i've made all that sign on the graph during the day, not at the end of the day.
-in your example (blue shadows) the pullback is over the 50% fibonacci, so why do you want to take this trade? if the pullback goes over the 50% fibonacci the trade is to avoid! those things makes confusion in my head.
could you please clarify, once for all, this fact? fibonacci, yes or not? do i have to trade EVERY 30-40 PIPS SWING OR JUST THE ONES WICH PULLBACK DOESN'T COME BACK OVER THE 50% FIB?
matte,
den, did a great job by giving your answer and it is followed by a awsome post from our mentor feb. I hope its all clear for you now, just do it.
  • #1,837
  • May 7, 2009 1:46am May 7, 2009 1:46am
I think I see greate set up on EU before London open...
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  • #1,838
  • May 7, 2009 4:01am May 7, 2009 4:01am
thank you all guys, really kind
  • #1,839
  • May 7, 2009 5:18am May 7, 2009 5:18am
still have problems with the exit.
first trade tp 21, second was 15 pips in profit i closed with 6 pips.
Taking Profit on the 1. trade was not such a good idee, better let it run? who knows?
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  • #1,840
  • May 7, 2009 5:20am May 7, 2009 5:20am
Does anybody use the skype chat forum that was mentioned a few pages ago?

I reckon it's a great way of collaborating and bringing people up to speed with real-time examples.
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