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The System II (Yes with irony)

  • #2,881
  • Jul 23, 2009 6:26am Jul 23, 2009 6:26am
Dare and Fxachilies,

I just want to express my personal appreciation for your contribution to this thread. Your perspectives and relentless desire to inform newcomers is commendable. The method is simple.... the application of it takes time and discretion so even though an entry is based on Feb's suggestions/rules, the outcome can differ between traders depending on psychological factors... in other words what lies between your ears.... Personally, I stay in touch with this thread as I continue to work on my consistency regardless of timeframe used. There are times that 5minutes fits my work schedule and/or mindset and there are times that higher timeframes fit the bill. One thing is consistent .... "no clothes while trading"

Keep up the good work
Unus pro omnibus, omnes pro uno
  • #2,882
  • Jul 23, 2009 6:31am Jul 23, 2009 6:31am
OK, this chart should explain the idea ... a limit order has been hit now ...
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  • #2,883
  • Jul 23, 2009 6:42am Jul 23, 2009 6:42am
Quoting jplo
Thanks again Dare, I'm getting a little bit confused at "Fractal reversals"....
How do you play them?....
Do you wait until price touches the previous fractal and goes against the trend?.....
hey jplo, here are just my two cents about fractal reversals.

I think its important to understand why it happens and very often looks like this, cause actually its very often combined with a fake move, where traders are decieved.
When they realise that its a fake - they turn their position,
or at least get stopped out what makes the revearsal move even stronger !
See my plain chart & Chart with explanations....(happend some minutes ago on the GU)
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  • #2,884
  • Jul 23, 2009 6:55am Jul 23, 2009 6:55am
Quoting moneda
Dare and Fxachilies,
I just want to express my personal appreciation for your contribution to this thread...
.... "no clothes while trading"
Keep up the good work
Thank you moneda, but I'm simply giving a little bit back of what have received from Feb and others,
that includes you as well, 'cos your contribution to this and other thread are not forgotten.
I'm glad to see you around.
  • #2,885
  • Jul 23, 2009 7:06am Jul 23, 2009 7:06am
Quoting DareXau
OK, this chart should explain the idea ... a limit order has been hit now ...

Quoting julias
hey jplo, here are just my two cents about fractal reversals.

I think its important to understand why it happens and very often looks like this, cause actually its very often combined with a fake move, where traders are decieved.
When they realise that its a fake - they turn their position,
or at least get stopped out what makes the revearsal move even stronger !
See my plain chart & Chart with explanations....(happend some minutes ago on the GU)
Thank you both of you.....

Ok, so acording strictly to the system II... We would have losen money on the fake.... but trying to recover from the opposite move......

So, when there is a fake.... Don't problem.... Wait for the previous Fractal to break for 2,3 pips, and joining to the new direction move.....

I support "Moneda"'s post above as well...
A really good luck to have people who help so much as possible to newcomers.......

Thank you
  • #2,886
  • Jul 23, 2009 7:18am Jul 23, 2009 7:18am
Quoting jplo
Thank you both of you.....

Ok, so acording strictly to the system II... We would have losen money on the fake.... but trying to recover from the opposite move......

So, when there is a fake.... Don't problem.... Wait for the previous Fractal to break for 2,3 pips, and joining to the new direction move.....



Thank you
....I´m also a newbie here, (just want to point out that Dare and fx are the ones to mainly listen to
...this pattern is just something I used to trade on H1 Charts, but happens in all timeframes. See how nice it works on the EU in this minute.
  • #2,887
  • Edited 7:58am Jul 23, 2009 7:22am | Edited 7:58am
Quoting julias
hey jplo, here are just my two cents about fractal reversals...
... Yes, julias, ... your explanation is very correct and the chart is clearly showing what's going on with actual trades.
There is one thing, which I forgotten to mention before, that fractal reversal is about entering in much earlier stage, when new swing is just forming
so, naturally it's relatively risker entry in comparison to typical 1-2-3 set-up, but usually it become highly rewarding.
This is a good analogy to equities or indices trading during a bull market;
Wall Street moved up, let say 300 - 400 points, so automatically Aussie'200 jumped 100 - 120 points over-night,
in the morning most of the "mums and dads" traders are buying from market open 'cos afraid of missing a train,
but the stock is reversing and heading down like a rock (on low volume) 'cos Deutsch Bank is selling at high price,
so, this is called "fade move" and was happening with such regularity, that you have to be blind not to see it.
If someone is quick learner, it's a very easy money to earn in no time.
  • #2,888
  • Edited 9:31am Jul 23, 2009 8:57am | Edited 9:31am
... and another fractal reversal entry today ... this pair becomes a little crazy ...
... and the next one ...
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  • #2,889
  • Edited 10:33am Jul 23, 2009 9:42am | Edited 10:33am
... currently a price is stooping at todays top level of the range, but it's only temporary, I hope ...
OK, it's resuming the up-swing, good staff ... I'm happy again
... target achieved, actually finished two trades at the same time
for me that's enough for today, more work tomorrow with some fresh pips.
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  • #2,890
  • Jul 23, 2009 11:09am Jul 23, 2009 11:09am
Hi again Dare,
I really didn't get these two trades...
May you tell me if I'm correct here?
Have you entered off that points I've market (a couple of pips after)?
What about the stoplosses?

I know it is late for you now, but don't worry, of course, I'll be here tomorrow....
If you want you can anwser it tomorrow....

Thanks Dare
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  • #2,891
  • Edited 8:57pm Jul 23, 2009 12:20pm | Edited 8:57pm
hello everyone,
last night all construction work at my house got rapped up and I took off for a 4 day vegas action with my girl.. pretty nice moves and better volitility today.. I would have kicked ass with all this great moves.. I hope you all made mega bucks.. and I am proud of todays great activity and everyone invlovments.. nice job everyone specially my buddy DX.

Moneda,
great to see you around again and thanks for your nice words.. DX deserves a lot of credit these days as he single handedly keeping the thread alive. I am not sure about imagining you without clothes thou.. jk.. lol

jplo,
when I sit to start my day the first thing i see is $$$.. getting my swagger on.. lol.. i am serious. then the only thing i pay attention to is the most recent price action on the one and only 5m timeframe chart.. then i draw my two or three needed horizontal lines to recongnize the last swing, PB or any of our patterns.. thats it.. then I get my cup of coffee the one with the dollar sign on it and enjoy zipping on that till opportunity knocks for entery. keeping it simple my man.. no need to cross my eyes at zillion time frames, moving averages or try to recongnize daily trend or etc.. and definantly try not to make sense out of this willd and crazy market, thats too damn hard.. no no.. I leave that to the analysist and investors.. I am a arrogant short term trader that only trades to make money.
"market is like moving sands and your best chance is to move around with it as your best indicator" a million dollar quote by our great mentor feb.
about fractal you could also review my 2867 post aswell.


see you all monday, I be back to my old rutine trading full force.. if your ready for some live trades displays join me sharp couple of hours before london session.

good trading to all.. kick ass tommorrow.
  • #2,892
  • Jul 23, 2009 4:40pm Jul 23, 2009 4:40pm
Hi All

Just want to say thanks to all of you who are making this thread such a worthwhile one. The posters concerned have already been mentioned by others. It is enlightening to see people giving back.

I will introduce myself and contribute as I can over the coming days, weeks and months.

Maybe I can offer this to start with, I think part of the ability to make this mehtod work is having the mindset to be able to switch direction without emotional attachment. Example, many traders have issues with either taking a SL or TP in one direction and then within a short period having to take a trade in the opposite direction. They start second guessing, pre judging etc etc and then the problems start.

A few of the posters on this thread are displaying the ability to arise above all this and I believe this is just one of the reasons for success.

For newcomers to shorter time frame trading,here is perhaps a useful method, to overcome any difficulties.

Smply imagine that you are playing tennis from both sides of the court. Sounds silly, but in reality it is what is happening here, it`s a mindset excercise which requires you to be able to position yourself in both sides of the court. It may well be that play three balls from the same side of the court = 3x long or 3 x short, but it might also be that you can play long, short, long, short in close succession.

By doing this you avoid the temptation to cut short, close to early or any of the other pitfalls that sometimes await.

I hope this helps.

Paul
Survive and Preserve
  • #2,893
  • Jul 23, 2009 10:54pm Jul 23, 2009 10:54pm
Quoting jplo
Hi again Dare,
I really didn't get these two trades...
May you tell me if I'm correct here?
Have you entered off that points I've market (a couple of pips after)?
What about the stoplosses? ...
G'day Jaco,
Yes, you've circled correctly the entries, ... a fractal reversal is basically opposite to 1-2-3 set-up
in a shape of V where left side is in-line with high/low of the previous swing and right side is the current swing with entry point.
I'm saying "high/low" on purpose, because the entry type depends on it: high - conservative / low - aggressive
of course it's a case of current swing to the up-side, otherwise would be vice-versa.
Regarding stop-loss, ... this may vary on the money management and situation, but definitely it's a must.
In my trade it was a mixture of everything possible:
first - bottom of the swing than moved to B/E
second - about 300% ATR (24 bars) than moved to B/E
third - 20/21 rule with no time to do anything 'cos target achieved
PS
... more explanation on the chart
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  • #2,894
  • Edited 1:51am Jul 24, 2009 1:21am | Edited 1:51am
Quoting fxachilies
hello everyone,
...
good trading to all.. kick ass tommorrow.
... hmm ... it's going to be bloody hard to ... kick ass today ... 'cos market completely flat ...
OK, there is some fresh EURO-economic data announcements, maybe that will help ...
... ooo it's not too bad, first trade already successful ... waiting for more ...
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  • #2,895
  • Jul 24, 2009 1:27am Jul 24, 2009 1:27am
Quoting DareXau
... hmm ... it's going to be bloody hard to ... kick ass ... today 'cos market completely flat ...
Agreed, doesn`t appear to be much follow thru on this EUR/USD at the moment.
Survive and Preserve
  • #2,896
  • Jul 24, 2009 2:06am Jul 24, 2009 2:06am
Quoting fxachilies
jplo,
when I sit to start my day the first thing i see is $$$.. getting my swagger on.. lol.. i am serious. then the only thing i pay attention to is the most recent price action on the one and only 5m timeframe chart.. then i draw my two or three needed horizontal lines to recongnize the last swing, PB or any of our patterns.. thats it.. then I get my cup of coffee the one with the dollar sign on it and enjoy zipping on that till opportunity knocks for entery. keeping it simple my man.. no need to cross my eyes at zillion time frames, moving averages...
Thanks for your routine description Fx.... I'm thinking in buying a cup with a $ simbol impressed on it as well...

Quoting DareXau
G'day Jaco,
Yes, you've circled correctly the entries, ... a fractal reversal is basically opposite to 1-2-3 set-up
in a shape of V where left side is in-line with high/low of the previous swing and right side is the current swing with entry point.
I'm saying "high/low" on purpose, because the entry type depends on it: high - conservative / low - aggressive
of course it's a case of current swing to the up-side, otherwise would be vice-versa.
Regarding stop-loss, ... this may vary on the money management...
OK Dare, I think I'm going geting it...
Great graphical explanation....
So, when do you take into a consideration a fractal reversal? is there any kind of rule?
I meant, when a retracement is forming, maybe it can break the previous fractal but after that not having go through the 50% Fibo from its swing, and resuming the 1-2-3 setup.....
Do you look at the PB momentum or something like that?

Thanks again Dare....
  • #2,897
  • Jul 24, 2009 2:59am Jul 24, 2009 2:59am
... after about one hour in red the trade moved eventually to the positive side ...
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  • #2,898
  • Jul 24, 2009 3:12am Jul 24, 2009 3:12am
Quoting DareXau
... after about one hour in red the trade moved eventually to the positive side ...
Have you take this trade just before the news?
  • #2,899
  • Jul 24, 2009 3:37am Jul 24, 2009 3:37am
Darexau have posted his fractal indicator page 170- post 2550
  • #2,900
  • Jul 24, 2009 3:38am Jul 24, 2009 3:38am
thank you kazaroval ... i missed it.
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