Razors Journal - Basic trading with PA at S/R

I have taken some more off the table on the USD trade. It has hit resistance on the 2nd trendline and price has rejected so far. Now have a small position that can do as it pleases. Good trade in the end.

Chart attached

Good to come home and see a trade that has now broken 4 hourly resistance lines and climbing strongly. The bulls back in full control now on the 4 hourly which is great news for my USD/JPY trade.

From entry it is now up close to 300 pips. Another good week for DIB'ers with some patience.

Heading into the weekend with a nice smile. See you all Monday

Presented a nice 4 hourly dib with a risk of less than 50 pips.

Taken the entry which was executed bout 30 mins ago.

Entry 132.18
SL 132.63

Not trading this one with traditional 1:1 as it is against the trend. Looking to take profit somewhere around the 61.8 retrace of the last move.

Chart attached

Stopped out

Well got stopped out for a loss of 45 pips.

There were some signs of the turn some 80 pips up with a bullish engulfing on the hourly followed by strong momentum. Could have handled the trade better in the end, however the plan was to allow it to run its course.

I try to ignore information lower than the TF i have traded. It stops my jumping in and out of trades un-necessarily, with the possible outcome of my trade being stopped out.

Ohwell a minus start to the week down 45 pips.

Not much happening now. Momentum might continue which my leave us with no IB opportunties. Time bed. Tomorrow is another day

Funds got rejected (fancy that) as i typed my account number wrong (dumbass) so I have resubmitted them.

Not going to trade this week. There is big news all week so i will wait till cash is settled then start fresh

Thanks for the invite Razor
Nice thread.
Could you summarize your rules for your higher TF trades?
I'd appreciate it.

So are you officially going live??
Wow That's awesome.
I wish you the best and lots of pips.

Take care and good trading.

Higher TFs guidelines.

Only take the trade in the direction of the close. Bullish trade bullish. This is regardless of trend. I am to catch little counter trends however will trade more aggressively with the trend and against i am more prone to setting profit targets.

I only trade the next bar. If the next bar doesnt get us in im not interested. Reason, i want continued momentum, or momemtum to start at the new bar and run with it.

Daily and weekly I have a predined SL if the range is greater than 150 pips. Note that the market quite often wont come back after getting you in on these TFs.

Profit taking is 1:1 then run. I still dont have a full take profit strategy, i usually use candles to tell me when to look at taking some off the market (ie pin bars on current/higher TFs)

Yes I am going live. I was live with a small account before but had dramas outside of trading that require funds. The account is really small, less than 500 but my goals are to double that account in the nearer future. If I can do that then I will look at my options from there.

Just a note. Since trading this method on 2 accounts, 1 live and 1 demo I have already added over 40% to both accounts. my first live account went from 2000 to close to 2800 and my demo went from 1000 to 1625, it is currently at 1530 which is still over 50%. There are occasions where profit could run, however being a simple man with simple means I believe it is relevant that I trade this way. If the account was 10x the above then the profit taken so far would make me more than happy and that is where I stand.

At the end of the day, I havent been this disciplined with my trading in a long time, and the results show me that had I been in the past I could be telling a different story. I make no fantasies about the difficulty of trading but it is possible to make money in the long run and my first goals are to get my basic account moving. From there the sky is the limit (with over a trillion exchanged per day perhaps the heavans are the true limits)

Great to see you here, as said all comments and questions are welcome. Feel free to post trades or trade ideas as we can all learn from one another.

Take care

Hi Razor,

Any ideas for the occurence/handling of IBs that point in the other direction while in a trade?

As for taking profits try weekly/monthly pivots and S/R derived from open/close/low/high.

regards

tdeu

Hi Razor , good luck on your trading . I am new to pc ,an am also new to j 16 . I enjoy both methods an hope to be successful at both. Really enjoy your posts on f f . One quik note i back tested the EU from jan to end of april on the 1 hour tf , using 2 lots .As many loses as gains , but the gains were much greater . Avg. loss 25 pips , avg gain 67 . Anyway good luck an tks again for starting this thread , Gary

By the occurance of IBs in other directions I am reading that you mean you are in a trade on a pair and then get a signal that is against that direction.

There are a couple of scenrios that I can think of, neither being right or wrong of course. I havent come across the situation and at the moment im not too sure if my new account would have the room to trade too much.

A) you could take the trade, which would effectively give you a small hedge on your current trade. If it is against the trend then I would be looking for a profit target from the outset.

B) You could leave the trade if it is against the trend of the TFs, otherwise it might be wiser to take it against the counter trend IB. So in this situation you would close out the first trade by executing a larger trade in the new direction, taking whatever profit you may have.

Hope this is along the lines of what you are asking. They are the only 2 scenarios that I would take, but if anyone has further thoughts please add to the discussion.

Razor

Yep and the start of the year has not been overwhelmingly trend setting with some major pullbacks after some nice runs.

The big picture is holding some lots for a very long time, unfortunatly there have been very tough times with regards to some long trades which depending on where you took them, you might have faced a major pullback which either scared you into cashing them in, or knocking you out for BE after being up a phenomenal amount.

The later is why (im sure 99% are the same) I look to take most off the table for some profit, and if possible leave a small amount to run. Oanda allows this as you have complete control over your lot sizes, so you can take incremental profits along the way to ensure some capital growth and then leave a small position to run.

While it is nice to be able to say that you are up 500 pips on full lots (I would take most off the table at that point for sure) it is easier to have your account growing at early stages to give you some chances to catch multiple IBs on different currencies/TFs.

J16 thread is very very nice, and with so many active posters it is testament to the success that has been derived from some simple methodology. In time I will add further PA candles like Outside Bars and Pins but for now best to master one than become victim to over trading signals I dont fully comprehend.

Thanks for dropping by.

I get alot, and there are also alot of posts on continued results (such as "hey is anyone getting consistant result' or 'is this method profitable). So for the traders that are looking for the ongoing results I will start posting on each page my results for the month and account growth%.

I will also keep it on the homepage which I will update each week. So far for May I havent traded live as I am still trying to get funds cleared with Oanda (my fault, my paypal was being a pain in the ****). Once everything is go I will add this. Till then I will still post trades taken on my demo account.

Take care

Hi Razor,

What do you think of the EURAUD daily IB. It would be counter trend. But the weekly bounced off the 61.8 fib from July 2007 to Oct. 2008.

Maybe another bear flag in the making and a couple of hundred pips. Risk 180 pips.

regards

Thomas

I havent got an IB on the EUR/AUD with fridays high being higher than thursdays. Also note that I dont trade this pair at all. My reason being that it is not a major pair and the spread represents this on my platform (currently 12 pips).

The only thing that would be taking me long is the hammer pin bar on thursday and a doji on friday. This could represent a change in direction. It is against the deily trend so trading would represent a set Profit target at some point of resistance.

Please note this is not a trade recommendation just information on how I see the setup.

Chart attached. May be an interesting opportunity if in the next 2 hours we get a climb to a more bullish position that closes to give us an inside bar. The low is only 1 pip higher than the previous bar which essential gives us a double bottom and a sign that the market may be returning to its bullish ways.

Scrap that last plan, she just moved lower. New plan is to wait and see what reactions we get at some support levels.

Hi,

There is a bearish IB in GBPUSD daily and 4hr tf.

Supporting diag tl on daily and 4hr around 1.5060. Maybe it breaks "counter IB" then.

tdeu

I was planning on this remaining a bearish daily IB. There is room to the downside before the trendline comes up to meet. I have placed my order to get me in and I have a profit target of slightly greater the 1.5/1. BTW I have to use the 100 pip stoploss to make this trade, which on a daily is going to be a normal approach. Unless the market continues down we may not get in on this trade.

Entry 1.5066
SL 1.5166
TP 1.4900

Chart below

Well much to my dismay this trade was left untouched, it missed my entry by 7 pips before heading upwards again. This can be the blessing at times of using limit entry orders instead of rushing in and taking trades.

My bias is still bearish. There were some large drops today in all areas, however with the EUR and GBP us crosses there is room to move downwards on the dailys and we have been lingering at this top for a little while. Upper resistance on the GBP has held firm whilst there is strong support on the EUR below.

There were also some great trades to be taken at the start of today on the hourlys which would have represented all freerides but I wasnt available to take them.

Time for some sleep now. Will be back looking tomorrow with reasons to head lower.

Remember Bulls climb stairs whilst Bears jump out windows. If the upper resistance holds then the GBP may drop heavily before the end of the week. News from London was crap so this may help with drop over the coming days.

On another note, to do with the GBP/USD, attached is a 4 hourly chart. Look at the number of pin bars that have happened at the swing lows and where they headed. If this 4 hourly closes up and hammer, then we may travel higher. Could be an interesting trade if taken. Not for me though, i need me some bloody sleep.