Trading with Deadly Accuracy

Subscribed, Great thread, thx to all for the info.

Would like to know more about the method trying to understand the steps and also how the trade from the trendline??


best regards

could please say the name of the webinar this screenshot is taken from?

Hi Guys. I have read through this thread twice and I am still not sure with WMD's strategy where to enter the market. I understand the support and resistance as well as the hook formation but cant figure out where I must set my entry? Is it when a resistance becomes support and the support is retested (Put order in at the support price) or is it at the tip of the hook when price starts moving away with an untested support. ? Your help will be greatly appreciated. Thanks.

I personally would not consider it as a specific entry / exit rule. This technique can give you a bias when price reaches certain levels. Consider it as a tool and combine it with others. Look for confluence with Fib lines, pivots etc. and most importantly: watch how price reacts at these levels.

Get the brake out zones from higher timeframes. When price gets back to these areas, zoom in on lower time frames and watch for a possible trend reversal. Are you getting higher highs and higher lows for an uptrend? Or vice versa for a downtrend? If your bias is beeing confirmed by price action, look for a specific entry.

See the attached files for a setup in gold. I took this trade and enjoyed the free ride untill last friday. Wish I would have stayed in as NFP didnt send it back down, but well... cant have everything hehe...

Ok, I've seen everyones charts on here and here's what I'm confused about:
wmd had said that you 'zoom out' as far as you can on your chart and you really trends. He also said this works best on higher time frames.
But I see a lot of posts w/ smaller timeframes and zoomed in.

I want to trade this method, so I'm confused. I have a day job (I actually like it, it just doesn't pay enough), so I'm wondering "what timeframe should I use"? Whatever it is, I'm going the "zoom out" method. I had no idea how "obvious" things were at that level.

ps. "Exit half the trade at 1-1 rnr". what's 'rnr'?

ppss. I also see the s/r (support/resistance) lines being highest high and lowes low in x amount of bars/candles (anyone got a good number of bars before you go back too far?).

sorry for the rambling, the more I play w/ this idea, the more I'm liking it. I'd like to EA it (I am a coder).

Hmmm... here is how one could have played the setup in gold that I posted above, but in the daily time frame:

See the attached image.

We know the brake out level of 1071 or thereabouts. Price comes down towards it. Tests it and moves back up. The first day after the test we got an inside bar. I guess a more aggressive entry style would be enterin just on the brake of the inside bar.

If you want further confirmation (allways results in some setups slipping through your fingers, sometimes worse RR in the long run etc.) wait whats happening next.

After the inside bar, we get a move up beyond a descending trendline. I personally dont like entering based on trendlines. They are to subjective in my eyes. But what I consider them to be usefull for is to judge general sentiment of the market. That means, I am re-evaluating the situation *after* the action has happened and it is clear weather or not the trendline was penetrated.

What happens next... a high clearly above the trendline shows, followed by a retest of the recent low, resulting in a beautifull pin bar. That gives further indication for a reversal.

So we have:

- bullish bias arround this level
- a test of the level resulting in an IB, followed by a bullish outbrake
- a penetraded bearish trendline
- a re-test resulting in a pin bar (morning star)

Bottom line: price action indicates the bull is waking up.

Of course this is now all trading in hindsight... but its the only way for us to learn it I guess... besides forward testing.

Risk / Reward ratio.

Thanks Troopercoope, will work on it.

hello guys,

any good setup for today?
I am still learning day over day.. newbie..

thanks

Hi guys,

how to avoid false breaks??

thanks

Don't start a trade in btw s/r, where the price chops back and forth.
I think one has to wait until the price comes to an important s/r level, then see pa and if favorable, then take a trade. This method requires a lot of patience.
Also it is not a countertrend method, so we need a hook to confirm the trend. If the hook didn't form (the price shoots like a rocket), then a lot of orders are waiting there, watch when the price approaches the level later, sometimes much much later.
That's how I understand it.
Lietuve

Hi,
I'd like to thank a lot for sharing this great approach to trading.
I'm new to this method so to understand better I decided to pick all setups I found on 4H chart in January and February 2009. Hope someone more experienced will give me some feedback, what will be highly appreciated.

I decided to focus on unusually long candles in neighbourhood of some top, bottom or flat period.

I did not recognized hooked or arch-shaped or whatsoever pull-back.

After I marked potentials I zoomed to 30M to see PA there.

What you can see are pictures of both 4H and 30M charts with marked levels.

grey box is where I would set my entry order. Additionally when was working with pictures, I made couple of notes:

should break below line 2. cancel line 1.? [I understeand, no]

3 in 30M
entry is just before end of friday, would you enter? what about weekend gap?

From line to top of last green candle is over 120 pips I guess I wouldn't trade it...

6. end of a week again...

7. Yet again 60 pips profit and quite nice short setup soon after

8. Where my method fails. Well you can't have everything
However i marked with blue line arrow minor resistance, that after test [where blue arrow indicates] may turn into entry point, but it's overintelectualized I think...


Thank you for your help.

signed to the thread!

First I want to thank you WMD for this enlightening thread. It sheds extremely valuable light on market structure. Thank you for your work and insights.

My first question concerns your post 66 and the chart with hooks and swooshes. Sorry due to my low post status I cannot suply a picture or a link.

I see there a yellow line - as I expect it is a BO level?

I cerefully studied this chart and I dont have any clue wherefrom comes this level - slightly above it you entered the market several times, so for me it looks as if you anticipated market reversal here.

Or simply you added this level after the market reversed?

I think there exists a valuable variation of your strategy - waiting for a reversal after a strong move, waiting at the level where the move originated (first strong impulse).

Has it at least some sense?



English is not my primary language so please forgive any errors.

Thank you.

Hi all,

Very happy to find this newish thread. In the process of reading through from the start, but excellent excellent stuff.

I've been studying and trading these support / resistance levels for a 1-2 years (with some variations). Man I wish I'd found something around like this when I started - much of what I've learnt and what I now casually read here has taken me countless hours infront of the charts....studying, backtesting, back to the drawing board, repeat. So, to anyone who has stumbled onto this thread like I just have, if you don't already know what you've come across then please please treat this as gold! I've done many searches for support/resistance, but rarely come up with stuff like this - many thanks wmd for starting it I look forward to hanging around and learning + contributing more.

I think if you can understand how to identify these S and R for entries, profit targets etc, then you can pretty much increase your odds of success with whatever system you happen to be using, simply by only taking on trades / signals at these areas.

Cheers,
Ben

wmd,

you may have already answered this somewhere in the thread, but what sort of win % are you achieving on your trades, particularly when placing entry orders at the level (as opposed to waiting at the level for confirming PA)?

I know thats a pretty trader specific question, depending on how you filter your good / bad / average setups, SL placement etc, but interested in getting a feel for the reliability factor.

Thanks

wmd,

Where you been man? When is the next lesson?

Thank you,

Donnie

Possible long setup forming on EUR / JPY H4 timeframe. Might be a little late in the week to take this one, as brokers will close in a few hours...

I'm riding it. But I will trail it tight because of the weekend...

A Gold short trade I took yesterday. Closed it this morning (after this pic was taken) since it was gaining strength... possible double bottom?