Price Action System 1min charts

I'm thinking about trading futures. The EUR, GBP, JPY, CHF and the SP e-minis. I will still trade spot Forex but would also like to expand into futures. Has anyone done this?

Yesterday was a dull day with a couple of bad trades. This is one from the EUR/USD.

I entered short around 1.36828, the S/R Line. I sent my target a few pips below the low of the day. My stop 1.36900. It bounced around a little for like 45 minutes. I was falling a sleep at the wheel. There were two dojis the first no big deal. Some green bars closed higher but then started to sell off to 1.36504. The last doji has green bars after it, followed by two red bars, then a couple of green bars. Maybe I am overly analyzing it but I think that doji was a sign to get out of my short and go long. On the chart I noted where I was stopped out and where a long could be. However there was so little movement in the EUR yesterday it wouldn't have worked.

Something to be on the lookout for next time. Dojis and the bars that follow them. Dojis themselves are not important. It is the bars around them that are important.

Frustrated. Last week wasn’t the best week. This week is starting off good, caught a good move in the GBP/USD. I missed a good move in the USD/JPY. My EUR/USD trades over the last couple of days have either been stopped out or only made a few pips. The source of my frustration is the news. I keep reading the news and reading about Greece and how they hide their losses. And as I read more news about the “collapse of the euro” I wonder why the EUR/USD is up and made a high of 1.36827 (at the time of writing).

Yeah, you guessed it. I am short the EUR at a bad spot and it is going against me. . . .

hi Daniel... the areas you've circled on the chart seem to me as good entry points - for a short span of time only... I been doing some tests as to when you move your SL higher... and of course i haven't found a reasonable area as to when to move the SL - though it would be good when you're say 10 pips up to move the SL up to BE, that way you won't loose out...

I have been trying after price moves 5 pips in my direction to move my SL To BE but then its pretty much just stopping out every single trade - which i have to say i'm glad i'm not loosing on those particular trades but its like going round in circles..

anyhow, it was just an idea you may be able to utilize to help yourself out... many thanks

jaylovin, thanks for the post.

Different subject, What does this mean?

Dealers comment on the recent 'surge' in the ECB overnight loan facility
- Dealers seemed to focus on the ECB overnight lending facility and the recent spike up in borrowings. The take-up in the o/n facility has been large but markets have assumed that Thursday's report should paint a different picture as the one-week week auction should bind the gap. However, dealers do caution that IF the large overnight borrowings remain in the system then perhaps the European peripheral situation is a larger problem then the recent soothing rhetoric from the Eurogroup and Ecofin admits. Some speculation that the recent surge was a failed Greek repo trade which has now been bridged.

***Reminder: the WSJ also discussed this issue overnight.

That is from Trade The News.com. A GREAT resource. A little pricy though but I wouldn't trade without it.

I'm not sure what bridged means here. I have degrees in Literature not economics. Sounds like the EU lent money to someone

The week ended on a very good note. This year so far has been really good.

In case anyone is confused about how I am trading, it's kinda simple. I am just looking for S/R points on a 1minute chart. My stops, I am being more strict about this with myself, are between 6-10 pips. My targets are 30 pips but it depends on the price action. I also look at the 5min charts to see if there is any S/R points as well. I only trade for about 3 1/2 hours a day. Then I go to my regular job which doesn't pay enough. I can make more in 3 1/2 hours of trading than I can in 3 1/2 weeks at my full time job.

I print my charts every day and review what I have done or what I have missed. This has helped me see patterns in the pairs I trade. It takes a lot of ink and paper but that cost is like 1/100 of what I make.

I am going to expand into futures trading.

I can't wait to start doing this full time.

Lastly, On Friday after the CPI data was out the markets went up and down and couldn't find direction. I did the best thing I think I have ever done. . . I walked away from the computer. I came back a few minutes later and got into some trades which worked out very good. Best thing ever.

Well, this week sucked!! This is my first losing week in a long time. And what caused that. . . ME. I was reading too much news. And because of that, I was ignoring supports and was searching for resistance points.

Oh well, I needed this losing week to refocus. With whatever free time I can find this weekend, I am going to go back and look at my winning trades. Then I will look at my losing trades this week.

I noticed there are 3,000 views on this thread. 100 of those are mine but who else reads this?

I'm slowly getting back on track.

Today in the EUR/USD was a good example of the battle between support and resistance. Resistance formed after it made a high after 6am or after midnight my time. Around 3:00 a low is formed and a non new low pattern forms with the three points. Enter on the 3rd point. Moved fails just below the high and changes direction. It comes back into the resistance zone and then falls below 1.3590. My entries are shown on the EC (Euro Futures) chart. I loser when I thought it was going lower because of the resistance. A small gain on the non new low play, I trailed my stop which helped, and finally a big gain for 100 pips on the meeting resistance play.

Most important, I am NOT reading the news. I rewrote my trading plan as well.

I'm so sick of this Greece stuff. It's almost every day. Greece is going to get aid, no aid, aid, no aid, aid but something, no aid but something . . . . IMF, Germany . . France. . . whatever!! Solve the problem already!!!


The Greek PM or somebody just said something about aid, so the EUR spiked and hit my SL. I thought I was in a good resistance play. . . .

Is eveyone on vaccation or something?? What is up with this really dull market? Yesterday and today in 3 hours the EUR moved 40 - 50 pips. Cable moved a lot yesterday but today, a little more than 50 pips. The yen has moved about 30 pips.

I guess everyone is just waiting for Greece to SOLVE its problems or for the fed to raise rates.

Sure enough right after the last post, breakouts began.

Today, I took off the automatic trend lines. I am drawing my own trendlines. It seems a little better. Plus, instead of me just sitting and watching . . I am doing something - drawing tendlines.

Today, again seems a little dull. I guess with such a big move in the Asian and EURO sessions, the NY session would be flat. Of course once this is posted everything will break out.

I just found this. Recording screen software.

I found it on this thread
http://www.forexfactory.com/showthread.php?t=39519

I downloaded
Camstudio - shareware, very basic
ZD Soft - seems ok, trail version and then about $40 for real program
Camtasia - seems to be the photoshop of screen recording and check out the prices $40 to $300

Has anyone done this or do this now?

On Friday, I took part in Richard Regan's virtual trading room (pro traders.com or something like that). He trades FX and Futures live from the CME floor. It was a free one day pass.

It was interesting. He talks about the market and calls out his trades. He took three trades on Friday. One in the EURO, one in the NQ and one in the YM. The YM was a winning trade. His stops were really short about 4 pips or ticks. He talked a lot about the correlation between the EURO and SP minis.

i have been following your trades and is very similar of what i use to trade i am more of scalping type but i use a higher low lower high in wich if the trend fails to make a new low it changes direction and viceversa is a bit hard to enter you must have some screen time to filter the bad trades ubt is been working very well so far anyway i would like to see more of your trades I think you might have something very interesting that you havent seen clearly yet

Thanks for the post. I hope you can see the chart. I saved it as a jpeg right from trade station.

This is the ECM10 euro futures, it is the same as the FX Euro. The price is a few pips different but moves are the same.

Around 3:00 my chart (9:00 EST). That is the blue line
Red line was the open, or high.
The blue ovals are support points.
I entered short 1.3307. It hit the yellow line which was resistance.
My stop was 1.3315, moved it to 1.3309 which I got stopped out on.
My target was 30 pips.
Came down and stopped at the support/resistance line and bounced off.

The irony here is that a few minutes before the trade, I said to myself I will go long when it bounces off the support line. It was going to break that line and I figured it was come back and bounce off. I walked away from the computer. Came back and saw the reistance set up and took it. I should have seen the support set up develop and change my postion. When trading support and reistance you have to be quick because one can become the other quickly.

If I would have taken the support trade. Entry around 1.3300 target 1.3330. 30pips. With stop of 8 pips.

Wow huge sell off just happened.

Hey Daniel, good brave honest thread you have here.
A question for you (appologies if already mentioned), do you use higher TF's for more perspective, as it can be very difficult to gauge even intraday moves and structure from the 1 min TF only.
I have always used the 1 min for refined entry.
Below is the right way to draw classic trendlines, i'm not saying it's the only way, nor am i criticising the way you draw them.
When a new low is made from a higher high (in respect to existing TL ),
then the TL needs to be adjusted, see how the TL used to be, and how it's adjusted.
Vise versa for uptrend.

Thanks for the post.
"good brave honest thread you have here"

I am going to share my winners and my loses. I have nothing to lose but everything to gain. If I made a stupid trade, and I have, I'll share it. Someone else made the same stupid trade. There was a reason why I made that and I need to learn why and why to not take the trade again.

Yes, I do use higher time frames. 5m or 15m. Sometimes I will look at the 4H chart. I loook for S/R spots. Are people looking to buy or sell at certain places. That being said, sometimes I don't let it effect my trading.

Thanks for the advice on TLs. I draw the first connecting highs. Second connecting lows. Then if there is a midtrend trend I will draw that. Like the chart I posted. The middle trend lines are midtrend lines. I have noticed that they act as S/R lines sometimes and help guide when trends change. They work well in GBP/USD. I will have to post those charts. It will make sense when you see the charts.

The chart posted doesn't really reflect the trend line though. I would have drawn it the same as you did.

Maybe it is useful to draw only one trend line. But I like the channel that I draw.

Thanks for the comments. It is helpful. I will post my charts. It takes time though. I trade before work and then rush off to my low paying high stress job.

Here is an example of what I was talking about with midtrend lines. This is from the GBPUSD from March 22.

Those yellow support lines tell me that there is going to be a long entry coming. I just have to wait for three of them or for three hits one one of those lines. I have noticed that this is a powerful move usually around 70 pips. First target is 30 pips though.

Wow this is wild. It's Friday after jobs data and the markets are wild. I got short the EUR/USD around 1.2730 about half an hour after the jobs data. The USD/JPY is on the move but I can't find an entry. I am a little nervous about getting into the market anymore than I am. I saw the DOW move from -40 to -211 and now -146. The EUR/JPY went from 117 to 115 and is still moving lower.

I hope people are cleaning up today.

Hey - I'm taking price action set-ups on the 5m time frame, watching only one market. EUR/JPY. I trade early morning and evening eastern standard time.

I highly recommend you google Al Brooks and take a look at his stuff. In my opinion it is the best price action trading material.

There is a lot of free material including the first 50 pages of his book. If you wanted to get the book from the library you could, but those 50 pages are packed with stuff. Plus there are articles and a few webinars.

What time zone are you?