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  • #4,981
  • Aug 29, 2009 12:01pm Aug 29, 2009 12:01pm
Quoting alter
It looks like hammer on my chart doesn't it?
Absolutely not - back to candle recognition for you!
15 YEARS OF PASR ON FOREX FACTORY!
  • #4,982
  • Aug 29, 2009 12:23pm Aug 29, 2009 12:23pm
Quoting strat
Absolutely not - back to candle recognition for you!
http://www.fxwords.com/b/bullish-ham...ndlestick.html

At this web page is description

1. After an established downtrend - met
2. Hammer candles have a small real body that forms at the upper end of the days trading range - met
3. Lower wick at least twice as long as the real body - met
4. No (or almost no) upper wick - is it 20 pips almost no ...could be.

I would say conditions are met, but even if you dislike some, we can call that bar, Pin bar which has almost the same meaning.
alter
  • #4,983
  • Aug 29, 2009 12:24pm Aug 29, 2009 12:24pm
For those with stars in their eyes:

Quote:
“”Two weeks ago I mentioned that we were entering a time band of one of the most intense geocosmic signatures for this year, August 10-26. Indeed it was remarkable, although more in terms of mundane astrology than financial astrology.””
Unquote

Surprise! Surprise! Who needs stars when we have PRICE!
15 YEARS OF PASR ON FOREX FACTORY!
  • #4,984
  • Aug 29, 2009 12:26pm Aug 29, 2009 12:26pm
Quoting alter
http://www.fxwords.com/b/bullish-ham...ndlestick.html

At this web page is description

1. After an established downtrend - met
2. Hammer candles have a small real body that forms at the upper end of the days trading range - met
3. Lower wick at least twice as long as the real body - met
4. No (or almost no) upper wick - is it 20 pips almost no ...could be.

I would say conditions are met, but even if you dislike some, we can call that bar, Pin bar which has almost the same meaning.
alter
Alter, suggest a visit to the Optometrist might help - does "your" hammer look anything like the example shown in the website link?
15 YEARS OF PASR ON FOREX FACTORY!
  • #4,985
  • Aug 29, 2009 1:07pm Aug 29, 2009 1:07pm
Quoting strat
Alter, suggest a visit to the Optometrist might help - does "your" hammer look anything like the example shown in the website link?
Maybe I'm blind, but absolutely. Long tail, small body, almost no wick, at the bottom of the pullback. Would you say it is not Pin bar neither?
  • #4,986
  • Aug 29, 2009 1:17pm Aug 29, 2009 1:17pm
Quoting alter
http://www.fxwords.com/b/bullish-ham...ndlestick.html

At this web page is description

1. After an established downtrend - met
2. Hammer candles have a small real body that forms at the upper end of the days trading range - met
3. Lower wick at least twice as long as the real body - met
4. No (or almost no) upper wick - is it 20 pips almost no ...could be.

I would say conditions are met, but even if you dislike some, we can call that bar, Pin bar which has almost the same meaning.
alter

Although the candle you pointed out is a hammer in shape it's location is POOR!

See chart
Attached Image (click to enlarge)
Click to Enlarge Name: hammer_example.png Size: 54 KB
  • #4,987
  • Aug 29, 2009 2:18pm Aug 29, 2009 2:18pm
hi strat,
thanks for answering my question about trying to understand ur method.
i did what you said. first post was you, second post was by someone else(ramrob i think), and so on .
do you mean i read all posts , or only your posts?
thanks
  • #4,988
  • Aug 29, 2009 3:47pm Aug 29, 2009 3:47pm
hi,Grimweasel ,
its very nice post.
but i am still learning, what is BEOT and BUOT?


Quoting Grimweasel
I just thought I'd share with you this weekend some of the stuff I have learnt over the past couple of weeks with regard to trend trading and counter trend trading.

When I started out (4yrs ago) I was trading blind just looking for a chart was that going up and buying because it looked good. I won a bit and lost a bit.
Then I came across Trader_Dante's thread Making Money Trading over on T2W which I found to be a revelation. I had never considered Fibs and SR levels or even individual candle patterns and I was amazed that some good soul had taken...
  • #4,989
  • Edited 8:42pm Aug 29, 2009 7:27pm | Edited 8:42pm
I do see the coming week as one of great opportunity, in contrast to the dribble of many markets recently. Many a pair are sitting on major static S/R re-test points. The JPY crosses are a good example, as are the 2 continentals. The USDCHF chart again continues to speak, as does AUDJPY. As always, the serpent continues to mystify, and I am clear of that one except for the EURGBP missile.
  • #4,990
  • Aug 29, 2009 9:30pm Aug 29, 2009 9:30pm
Quoting rockk
hi strat,
thanks for answering my question about trying to understand ur method.
i did what you said. first post was you, second post was by someone else(ramrob i think), and so on .
do you mean i read all posts , or only your posts?
thanks
You have to READ & UNDERSTAND the WHOLE thread so start at Post #1, then when understood, move to Post #2 and keep repeating until you get to Post #4990.
15 YEARS OF PASR ON FOREX FACTORY!
  • #4,991
  • Edited 7:14am Aug 30, 2009 7:03am | Edited 7:14am
Just a few more charts helping you and me to understand the power of the basics. DSRI lines, HLs, LLs, etc.
Top chart is Eurusd and bottom chart is FTSE Fut both worker charts.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Euusd.png Size: 106 KB
Click to Enlarge Name: FTSE.png Size: 115 KB
Trade less and become more profitable!
  • #4,992
  • Edited 7:21am Aug 30, 2009 7:07am | Edited 7:21am
Does History repeat its self or is the current bottom already in?? Look at the charts above and see if anything looks similar? Edwards and Magee first wrote about this stuff back in the 20/30's! And, major players are still using this today - because it still works! Simples!

Now go back over hundreds of charts and you will see the same thing on all the TFs too. On reversals, you MUST wait for:

1. A strong break of a major TL with the first leg showing a lot of momentum and a good reversal bar.
2. You should then wait for a test of the trend's extreme and enter on a succesful test of (a lower high of higher low in a market top or a higher low or a lower low in a market bottom).
3. You must have a strong signal bar that is a strong reversal bar (ie hammer, BEEB, BUOB etc)

If the set up does not have all of these components then pass on the trade - hence why I pulled my NZDUSD short. No TL break for starters!
Attached Image (click to enlarge)
Click to Enlarge Name: Dow_Jones_Last_Crash.png Size: 128 KB
Trade less and become more profitable!
  • #4,993
  • Aug 30, 2009 9:48am Aug 30, 2009 9:48am
Can you hear me, mother?
Attached Image (click to enlarge)
Click to Enlarge Name: audusd boss.gif Size: 22 KB
15 YEARS OF PASR ON FOREX FACTORY!
  • #4,994
  • Aug 30, 2009 10:59am Aug 30, 2009 10:59am
Quoting strat
Can you hear me, mother?
Only learnt this weekend that inverse hammers and hanging men at the extremes of moves are a good indication of short/long covering.

Possible way of showing that people are taking profits - not a signal in itself but the warning a top/bottom may be in. Just like that chart Strat - I'm gonna be conservative and wait for the TL break and test before I get short!

PS - I notice you are using the wicks for Fibs? Is that normal or do you like to use line charts (ie bar closes) for Fibs?

I tend to use them less and less these days as they are nothing more than a finger in the air prediction. SR, TLs and PA tend to show you what may happen without the need for the fibs - as they often 'Fib!!'

BTW Strat - I'm missing the trick with the Cable boss and worker charts you posted??? Can you enlighten?
Trade less and become more profitable!
  • #4,995
  • Aug 30, 2009 11:13am Aug 30, 2009 11:13am
Quoting CrudeCraig
Although the candle you pointed out is a hammer in shape it's location is POOR!

See chart
I agree location is poor but we were talking just about shape.
  • #4,996
  • Aug 30, 2009 11:19am Aug 30, 2009 11:19am
Quoting Grimweasel
Only learnt this weekend that inverse hammers and hanging men at the extremes of moves are a good indication of short/long covering.

Possible way of showing that people are taking profits - not a signal in itself but the warning a top/bottom may be in. Just like that chart Strat...
""Possible way of showing that people are taking profits - not a signal in itself but the warning a top/bottom may be in. Just like that chart Strat - I'm gonna be conservative and wait for the TL break and test before I get short!""

The "BIG" picture (BOSS) gives us our "clue" (direction) and from there we wait for the "detail" (Worker) to confirm and give us our entry.

""PS - I notice you are using the wicks for Fibs? Is that normal or do you like to use line charts (ie bar closes) for Fibs?""

It doesn't matter which you use as the fib value is not "EXACT", in other words, we are only looking at levels or "zones". All we are interested in is where PRICE is relative to fib levels and then when PRICE reaches a fib level or zone (not a specific price), start looking for PASR.

""BTW Strat - I'm missing the trick with the Cable boss and worker charts you posted??? Can you enlighten?[/quote]""

But these are what you are dreaming about every night, Danny boy, - TL breaks and TL tests!
15 YEARS OF PASR ON FOREX FACTORY!
  • #4,997
  • Aug 30, 2009 11:24am Aug 30, 2009 11:24am
Quoting alter
I agree location is poor but we were talking just about shape.
To QUALIFY as a PRICE REVERSAL BAR, you MUST have:

CORRECTLY PROPORTIONED CANDLE
CORRECT CLOSE RELATIVE TO PREVIOUS CANDLE
CORRECT POSITION RELATIVE TO PREVIOUS CANDLES
CORRECT POSITION RELATIVE TO MOMENTUM & IMMEDIATE TREND

Now, go back and look again. Does your "hammer" qualify?
15 YEARS OF PASR ON FOREX FACTORY!
  • #4,998
  • Aug 30, 2009 12:09pm Aug 30, 2009 12:09pm
Quoting strat
""Possible way of showing that people are taking profits - not a signal in itself but the warning a top/bottom may be in. Just like that chart Strat - I'm gonna be conservative and wait for the TL break and test before I get short!""

The "BIG" picture (BOSS) gives us our "clue" (direction) and from there we wait for the "detail" (Worker) to confirm and give us our entry.

""PS - I notice you are using the wicks for Fibs? Is that normal or do you like to use line charts...
""

But these are what you are dreaming about every night, Danny boy, - TL breaks and TL tests![/quote]

Ha ha! Thanks Strat - sorry to keep batting on about TL breaks etc. It's only this week that I've really bothered to study them properly and had a 'light-bulb' moment as to where I had been going wrong picking tops and bottoms all these years!! For some reason I had been paying them little notice, just relying on SR levels and SR then wonderning why I was getting busted out of trades.

The important thing for me is that I just can't stomach the initial retracement that happens in the first moves after a reversal. By trading this way I may miss some big moves but at least I'll be able to sit thru and wait for the various TLs and SR levels to be tested. That way I will really trust my analysis and plan and hopefully have a growing equity curve!
Trade less and become more profitable!
  • #4,999
  • Aug 30, 2009 12:42pm Aug 30, 2009 12:42pm
Quoting strat
To QUALIFY as a PRICE REVERSAL BAR, you MUST have:

CORRECTLY PROPORTIONED CANDLE
CORRECT CLOSE RELATIVE TO PREVIOUS CANDLE
CORRECT POSITION RELATIVE TO PREVIOUS CANDLES
CORRECT POSITION RELATIVE TO MOMENTUM & IMMEDIATE TREND

Now, go back and look again. Does your "hammer" qualify?
I think that what bother you about the bar is upper wick that is 20 pips long so we can qualify it as a PIB bar which is price reversal bar as well.
It also closed within previous candle and it has long tail relative to previous candle.
I agree that position is not good, and I would not take that bar but does that mean it is not price reversal bar?
  • #5,000
  • Aug 30, 2009 1:19pm Aug 30, 2009 1:19pm
Quoting alter
I think that what bother you about the bar is upper wick that is 20 pips long so we can qualify it as a PIB bar which is price reversal bar as well.
It also closed within previous candle and it has long tail relative to previous candle.
I agree that position is not good, and I would not take that bar but does that mean it is not price reversal bar?
I don't like it and would not have even given it 1 second of my analysis because it is NOT a hammer!
15 YEARS OF PASR ON FOREX FACTORY!
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