My LV battle commences!
The System II (Yes with irony)
- #14,742
- Jan 28, 2010 12:02pm Jan 28, 2010 12:02pm
- | Joined Feb 2007 | Status: Trader | 1,477 Posts
I dont think anyone is bending the rules here. While the market is alive and playing it is very hard to see the shapes correctly (FCR or a part of retracement). That is why they call it "the hard right edge".It could of pierce through the LV only to shoot up and make a BAMM long.
i was refering to post#14735........... as in, picking and choosing when to ignore an fcr is being discretionary......... you are bringing hope into the plan ......(ie. hoping you made the right choice.)
hey mate, just my view on it
- #14,743
- Jan 28, 2010 12:09pm Jan 28, 2010 12:09pm
- | Joined Mar 2009 | Status: Rocky da Jazz | 499 Posts
hey corona,
i was refering to post#14735........... as in, picking and choosing when to ignore an fcr is being discretionary......... you are bringing hope into the plan ......(ie. hoping you made the right choice.)
hey mate, just my view on it
The process of defining if its a FCR or just a hiccup has a lot of discretion. Once you have your mind set up, ignoring it is not an option.
You wont survive without preserving!!!
- #14,744
- Jan 28, 2010 12:14pm Jan 28, 2010 12:14pm
- | Joined Feb 2007 | Status: Trader | 1,477 Posts
I second that!
The process of defining if its a FCR or just a hiccup has a lot of discretion. Once you have your mind set up, ignoring it is not an option.
- #14,751
- Edited 2:31pm Jan 28, 2010 1:35pm | Edited 2:31pm
- | Joined Jul 2007 | Status: Learner | 1,363 Posts
thats my point............ if you decide its valid,it must always be used (traded) the same way everytime
As for my first trade, when I shorted from 3999, the momentum/speed of the down candles were very apparent and I could sense a strong down trend. So when that fcr appeared, I made the decision that it was just a normal retracement and not a reversal as the trend was still quite strong and wasn't showing obvious signs of exhaustion. Hence that fcr was ignored. Immediately after that fcr, a potential 123D setup was formed . Now that was a valid one to me because if the HH was breached, it would have meant (to me) the down trend was showing signs of exhaustion.
Now the above short trade was eventually stopped out @ 3969 where I took a BB trade to the long side.
Now with this BB @3969 trade, I was then faced with a fcr which formed within 7 candles after the breakout. On this occasion, I did not ignore the short fcr @ 3967. I took that trade, closing my long trade for -2 at the same time. Reason why I took the fcr was because the strong down trend was quite apparent and doesn't yet appear exhausted to me.
I felt comfortable making all those trade decisions because I felt in tune with the market (well, that was how I felt at that time) I did not feel I wasn't following the plan as it forms the complete basis of how I trade these days. The rules aren't set in stone and there will always be occasions when some "bending" of it will take place. I personally think that we cannot be too rigid in how we interprete the plan. The plan is there for guidance and to give structure to how we trade but it is not a 100% mechanical system which an EA could replicate. So discretion does play a big part in it, maybe you can call it as intuition, which Fxa talks about alot.
I hope I have been able to convey my explanation across in a manner that's easily understood. I look forward to hearing the opinions of others and remain open minded to any criticism and change.
Cheers all, it's been an exhausting but good learning day for me !
B.
- #14,752
- Jan 28, 2010 1:49pm Jan 28, 2010 1:49pm
- | Joined Jul 2007 | Status: Learner | 1,363 Posts
Arrows mark the most recent FCRs Don't they?
The arrow at the top is pointing at a 123D continuation setup.
Hope that helps.
Cheers
,B
- #14,753
- Jan 28, 2010 2:32pm Jan 28, 2010 2:32pm
Arrows mark the most recent FCRs Don't they?
Hi Narberth,
Here is the best chart from FX to illustrate FCR's - they are simple and mark a high or a low - high ones give you an entry level for a potential long trade set up and low ones for a potential short trade set ups. I mark my highs and lows different colours because I need all the help I can get!Post numbers 3420, 3440, 3444, 3448 in my opinion is the best sequence of posts on the FCR
I have marked in the fcr's on your chart as I see them. Although I get what Bakuli is saying, sometimes older fcr's can give you an entry opportunity - so they become useful one at a time as the PA dictates - but if you read back through Fx's guidelines for them it will all make sense.
$urvive, Pre$erve &
RESPECT THE TEACHER 
- #14,759
- Jan 28, 2010 7:48pm Jan 28, 2010 7:48pm
- | Joined Jul 2007 | Status: Learner | 1,363 Posts
hi bakuli,
Are you in ?
I'm short 1.3949
Hope you don't mind me giving you my feedback on your entry point which I think is too late and carries more risk. I have explained it in the chart. That's how I enter mine ie try and get on the early bus. If I am too late, then I stay out rather then enter on just a 123 continuation set-up in the middle of the run. It carries more risk and also becomes a bad habit. Just my humble opinion and it has served me well since I traded System 2. One of the main aim of the strategy is early entry. You always hear Fxa talk about being in driver's seat and that's exactly what it is- get in early and then be in command of the bus fairly quickly when the run takes off in your direction.
Hope it helps,
B
ps..I am really an insomniac (still can't fall asleep but tired though, lol)
