Menu
Sister Sites

Options

Bookmark Thread

First Page First Unread Last Page Last Post

Print Thread

Similar Threads

Time action momentum trading 90%+ accuracy 0 replies

Acceptable Accuracy Ratio for Profitable trading 29 replies

Trading with Coinflip Accuracy!! 29 replies

historical data accuracy puzzlement. 1 reply

accuracy problems or stable market 0 replies

Attachments: Trading with Deadly Accuracy
Exit Attachments

Trading with Deadly Accuracy

Quoting shahab8b
I say, the Trend Following setup that you mentioned is classic and practical, but you refere mostly to AUDUSD and Gold, which have been acted like a textbook since March, but you cant see the same nice pattern in EURUSD , I'd say its tradable with this setup but you need to treat it differently than commodity currencies,
S/R levels work on any pairs. But not with aggressive entries at least. I recommend traders to put their entries only with proper price action at those S/R. Combined with PA, this system is deadly. No doubt!
Quoting The Lord
I will try to answer if I am right.

First of all, you are trying to catch a sharp falling knife. As wmd stated, that is an aggressive entry. That was still not a problem. I feel your stop was very small. It should have been below the 1.48202 level.

Next thing I can see is, you haven't drawn your S/R line at the exact tip of bars. If you had entered at the same level later on when price started to come up, there wouldn't have been a problem at all!

Sorry if I am wrong. I am just practicing the wmd method.
Thanks for your answer. I thought SL's were at 10x spread so 20-30 pips?
Cheers
We are all One. Be present. Be the Observer
I am new to this so excuse my ignorance. But does this apply to all currency pairs?
Quoting Iamfx
Thanks for your answer. I thought SL's were at 10x spread so 20-30 pips?
Cheers
I am also confused with 10x spread SL. May be the author of the thread can clarify a bit.
Quoting wmd









Once we are familiar with identifying s/r/bo levels, we can advance to the equally deadly strategy for trading diagonal price movement. That should get the day traders excited.
wmd:

Here's to giving you your wings - I look forward to your strategy for
trading diagonal price movement.

thanks
This is what i see on eu.
Attached Image (click to enlarge)
Click to Enlarge Name: eu1.gif Size: 17 KB
Using this technique we are identifying precise entry points for our trades. Any significant breach of those levels would in effect nullify the validity of the trades.

I used to use a hard stop of 40 pips. However, different instruments exhibit varying degrees of volatility. I have taken the spread as an arbitary measure of that. So 10 times spread is typically more then enough.

EU - 20-25 pips
GU - 30-40 pips
EY - 35-50 pips
GY - 60-80 pips
UC - 40-50 pips
I like your clear charts and explanation.

How far back do you usually look for support/resistance?

Also, do you take into account news announcements and macroeconomic factors at all? Or is it purely chart based technique as we've seen so far?

Thanks for starting the thread.
I zoom out as far as i can to find the price turning points. A 4hr chart displays atleast 4 to 5 months of data which is more then enough.

This method is a technical play based on breakouts where we have untested resistance/support. News tends not to effect the outcome.
Hi
thank you for this intresting method
i just would like to mention that many important levels for EU are not present in your chart .
pls let me know if i am missing something .
thanks

Quoting wmd
This is what i see on eu.
Attached Image (click to enlarge)
Click to Enlarge Name: eu.gif Size: 16 KB
Samer,

For the purpose of this method, i am specifically looking for 'untested' levels ie a resitance which had been breached but was not tested as support; or a support which was breached but not tested as resistance.

I removed other s/r levels for sake of clarity on the charts.

All s/r levels are significant. If it helps, in future i will try to show more levels and colour code the ones i am looking to trade.
wmd

i got it
thanks for ur reply

Quoting wmd
Samer,

For the purpose of this method, i am specifically looking for 'untested' levels ie a resitance which had been breached but was not tested as support; or a support which was breached but not tested as resistance.

I removed other s/r levels for sake of clarity on the charts.

All s/r levels are significant. If it helps, in future i will try to show more levels and colour code the ones i am looking to trade.
Thanks for posting those links...

Quoting Fudomyo
on your chart, this area doesn't suggest going long because the retest of support became resistance. (black circle) Your entry would be short after resistance holds.

imho, it's better to learn drawing your own SR lines. zoom your chart out and observe the candle open, high, low, and closes. the price points which have the highest frequency of OHLC touching them are support or resistance areas. It's best to start on the daily chart scrolling down to 1H, this will show you the highest probability areas. (that's how I drew these) It's very fast...
Quoting wmd
This is what i see on eu.
Excellent thread WMD. This is very similar to the No Brainer thread, which makes it a very good thing IMO.

Regarding this EUR chart, why don't you have the top of that false break marked off as resistance?
The level shown (14330) acted as the orignal resistance. The long pull back from that price demonstrates its significance. The false breakout is recognised by the inability of the price to move higher from that level. It falls back under, taps the level a few times and eventually breaks through.

The ceiling of the false breakout also has significance and is tradeable, but just not for this particular type of setup.
I was watching cable today at this level....

If you look at the 5min chart you can see it does a small song and dance before heading north, which gives us a nice reversal area when it comes back...cool

Quoting wmd
gbp/usd live.
Attached Image (click to enlarge)
Click to Enlarge Name: gu.jpg Size: 76 KB
and this was the 15min as shown by WMD yesterday...

Quoting redart007
I was watching cable today at this level....

If you look at the 5min chart you can see it does a small song and dance before heading north, which gives us a nice reversal area when it comes back...cool
Attached Image (click to enlarge)
Click to Enlarge Name: gu2.jpg Size: 76 KB
Nice thread, keep it going, I'm alway want to learn
Quoting wmd
gbp/usd live.

Missed precise entry by 3 pips so we were not too far out of the zone, bounced 70.

The double top does look menacing though.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: srlev3.gif Size: 17 KB
Click to Enlarge Name: guupdate.gif Size: 14 KB
Quoting wmd
Missed precise entry by 3 pips so we were not too far out of the zone, bounced 70.

The double top does look menacing though.

Great!
0 traders viewing now