Trade what you see NOT what you expect

Good call.. I heard Clevelands are triple-ply!

Then you, my friend, are shittin' in tall cotton!

There might be some good coming out of this if congress gets it collective head out of their ass. Maybe they'll realize that European socialism doesn't work. In other words, cradle to grave entitlements are unsustainable. It doesn't work. It's never worked and it never will.

Maybe San Fran Nan and Harry will wake up and realize that you can't have half the people working and paying the taxes for the other half who don't or won't work.

Nah...on second thought they won't get it!

i wish you were right that they might get it, but they are getting fukin kick backs gallore for wiping out the general public while making the big banks and financiers of the world richer.

they won't get it. they don't care. they just want what they want and they want it now....there was a time that i really thought that the USA was the greatest country to live...that's only true if you're a big banker. i'm starting to not love this place

The 348 point drop looked like somewhat good news yesterday, considering where it was at before it managed to close. The intraday low yesterday of the DOW might be a low of some significance now.

I hope you guys and gals have a nice weekend. The 35+35 made me 280 total this week off of three currencies. Not alot by some standards but enough to make me a very happy boy!!

Sent a PM - if your still around.

Another reason to keep an eye on the HTF charts: Below is the Daily EJ chart with a pinbar followed by a hangman. Notice how the high of the hangman was approximately half way up the wick of the previous pinbar. Price on the 3rd candle in the outlined area went to the previous days high (hangman). Maybe you can guess where my entry was for the short. I know that EO has the previous day high and low price on his worksheet and this is a perfect example why you should keep it in mind. Hopefully this will help everyone make a pip or two in the future.

Hey Perch.

The level 1 & 2 support & resistance the worksheet refers to is just the next (two) areas of potential support (below) & resistance (above) the current price.

I don't know what trading level you're at or how much you know about support & resistance but there's a ton of stuff here on Forex Factory and on the web in general (as Dario mentioned, the Babypips.com site has a great overview of trading basics). If you only have a basic grasp then it's probably best for you to check out the web info rather than me giving you my take.

S/R can be drawn automatically by your charting software but I draw mine manually. It's not difficult to pick out potential areas of S/R but it's something you can fine tune to your own trading style the more you do it (unless you choose the automatic route)

Whatever style you develop to draw and use S/R it can then be applied to all timeframes, though the higher time frame levels tend to hold more importance.

Your example of the 4h pinbar is correct in that it does suggest a bearish signal, however, the "location" of the pinbar can be just as (if not more) important than the candle itself and this is where S/R comes in. You're identifying areas (S/R) of "potential" price reaction so that when/if price does indeed signal a reaction (by producing the pinbar) at this level the chance of the pinbar signal playing out as you would expect is theoretically improved.

As you mention, moving from the 4h to the 15m timeframe may then give you the opportunity to find a better entry up the 4h wick with additional 15m reversal price action for confirmation, whether that be at 50% of the wick or at a previous level of price action. It's really on a case by case basis and part of understanding how price action plays out.

As for your second post yes, I trade the Asia session. I try to be at my screen for the start (a while before actually) of Asia, Europe/London, and NYC.

Plan A and plan B just means having a back up plan. Daily candle closes will suggest a projected play for the following day. You have a daily trend in place and the last daily candle close may suggest a continuation of that trend or an interruption to that trend. Your daily support and resistance levels above and below current price suggest where she may be looking to go to the following day. This is over simplifying it as price obviously doesn't move in a straight line and there are retraces/retests to consider.

Although my daily projection may suggest another day of shorting is possible, and I therefore have my levels/targets of upcoming support identified, I will also look at what might happen if she instead decides to go long (where and why) and what areas of resistance she would then encounter. Just a case of being prepared in advance for any/all outcomes.

(Note: Pippinole mentions in his last post that "EO has the previous day high and low price on his worksheet". An example of the prior daily closed candle suggesting possible retraces/retests (to the hangman open or close) for short entries during the upcoming day)

This isn't contradictory to the title of the thread. I'm not "expecting" to see one thing play out or another. I'm just trying to be best prepared for whatever plays out and then trade what I see as it unfolds.

No problem on the questions. The only thing is that I'm certainly not one of the senior traders on here and I'm not around much at the moment. What I would say, and this is something you are obviously already doing, is that pretty much every aspect of EO's method is covered in the thread in one form or another. I know it's a chunk of material to get through but it tends to add up a lot better if you follow it through from the start. Then I think it's necessary/beneficial to spend a good chunk of screen time just watching things (price action) play out in accordance with what you've learnt.

Not suggesting you're looking for a fast-track but I don't think there is one if you were.

Hope this helps.

Macc

Hi Seniors,

Can anybody pls clarify how you use the Stop loss.
I havse seen in older posts that EO sometimes uses 25 pips beyond the wick of a candle as stop loss, but I have also heard the stop loss should be jus a few pips beyond the wick of the the candle .Like Pipiinole always uses a 20 pip stop loss and Macc never uses more than 35 pips.

When you are trading a 4 hr or 1 hr BAR , and while entering based on 15 min PA do u guys use a stop loss beyond that 4 hr or 1 hr bar or will it be jus above the 15 min PA bar.

HI Macc,Jus a few questions to clarify with you. I heard from EO that you also play the 35+35 pip strategy ,do u use it the same way as Kent (BKG) uses or u have different method ?

Hey Magic.

From the posts Kent has put up it looks as though he has tailored the 35+35 pip a little to suit his own trading/circumstances and uses it as part of a breakout strategy trade. He's included specific elements relative to entry, stop loss, and take profit that allow him to trade it without having to sit in front of the screen all day.

I don't use the 35+35 to trigger a specific trade as such, I use it more as a filter for determining whether price has chosen direction (long or short) or is still undecided.

Assuming we're not already in a trade, if we're above the 35sma then long trades are on BUT ONLY if we're above the 35sma by 35 pips or more beyond the close of the last candle that crossed the 35sma (same for taking short trades when we're below the 35sma). Until we've moved beyond the 35 pips there's still a chance that she can return to the 35sma.

I guess that's why Kent has set up his trade the way he has because he's given himself the winning edge that price has moved beyond the 35 pips so there's an increased chance (though not 100% of course) that it will continue to move in that direction.

Of course, if we haven't yet moved beyond 35 pips then reversals back towards the ma's can be traded when price action tells us a reversal trade is on (reversal PA at s/r or lined up with previous price action). As always, the bigger picture also has to be taken into consideration.

Regarding your question on stop losses, I determine my stop loss based on the time frame my entry is on. Although I take my guidance from the higher time frames for areas/levels of interest and/or price action, my entries are triggered off the 15m so my stop losses are set in a way to allow that 15m trigger to either succeeded or fail. Within reason I try to refine my entries to allow the minimum stop loss, although this has to be balanced against the fact that some trades may take off without you while you're waiting for the "perfect" entry.

Just my take on things.

Macc

Hi Macc
Don't have a question but just wanted to say thanks for the last couple of posts you have made, They have been very helpful. I have taken your advice and am reading this thread from the beginning. I will only get out of it what i put into it. Any way like i said just wanted to say Thanks, your advice is appreciated

That's my thinking too Jay.

When I first started looking at EO's method I thought it was all about the ma's and how they would give me a quick, colour-coded road map to consistent pips. Of course, EO's way of trading incorporates so much more than the ma's but there are plenty of posts that give examples of the additional knowledge that's required e.g, posts on price action or identifying higher time frame levels of interest. You can learn stuff here that's just sound trading knowledge, stuff that can be utilised with whatever trading system you finally decide on.

It's just that this is a meaty thread so you have to wade through it. A small price to pay in my opinion if you can ultimately reach even a fraction of the level that the seniors on here trade at.

Macc

Hi Macc,

nice to hear that you make pips.

You can not trade as much as you'd like because of a day job or because of...women?

I'm pleased with my trading but I noticed that I suffer often losing trades when I try to catch reversal trades and price is trending. I'll try to reduce this kind of reversal trades in the next week.

I Have a general question please. I notice in reading through the thread, and as usually stated by EO, he is short or long at XXXX and has TP at x1, x2 and x3 is there a specific number of lots to start a position with and scale out at different intervals ( i understand amt. per lot is individual based on equity risk management ect... ) or is this also an individual thing based on experience? Any insight is greatly appreciated. FYI Looks like I will average about 100 pages of this thread a week so I should at least be current with my state of confusion by November LOL Thanks Again

Thanks for ur great explanations.. how do you manage ur trades..do u always cover ur trades once it go 20 + pips or do u wait for PA or S/R area to get covered. ?And also how much of ur initial position do u take off after 20 pips..thanks

Hey guys

I have an indicator I use but during my night time hours when I sleep it only alerts one time. I would like to change this to keep alerting until I manually cut it off. I was wondering if someone can help me with that?Thanks in advance for your help!! If you would be willing to help please PM me.

sent pm

I have same inidcator but is not even given me alarm. I wll like to also have the update thanks