The Dance

Thanks Kostas...... I shall keep reading indeed. It's frustrating, much like everything else I wish to trade whilst reading, but there are lots of little questions I want to know RIGHT NOW but I know, given the quality of the questions having been asked already, that they will of course be answered further in.

May I ask you a question? Upto the point where I am in the thread, you were doing very well, your daily target was 30 pips and you were hitting that fairly regularly and then 'calling it a day', how are things going now (no need to disclose information you do not wish too) and are you still stopping at 30 pips?

Regards

Lee

I would consirer this place on a chart as an entry point.

Lee,
Yes on all questions. Most times 30-40 pips at 3% risk. At 44 trading days I am still following the money management plan I had in mind. If my account grows to the point that I can trade 30-40 pips with 2-3 lots I will stay there with a daily target of 1000 Euros.

Kostas

Well Done that man!!

if this SHS pattern is valid, then exactly at the touch of ma's should be strong bounce downwards till 1.47. I see good short entry between 1.4890 -1.4900. SL at 1.4925. I think that exactly at asian open, price will be at entry.
I have few confirmations for that, long constrainment on 15M,SHS, bear flag on H1. I'll try to catch it.

No worries,,, take your time and you will get better. Be patient with yourself as you do this. Frustration never gets you anywhere.

God bless.

Happens to all of us from time to time. In sales, every "master" salesman "goes back to the basics" at least once per year to stay grounded in what really works. Same should be true of traders.

Piotr1, depending on which time frame you look at, the trend is both long and short ALL the time. If the overall trend is Long on D1, there will be times when on every other lower time frame it will be short.

If we are using M5, which is acceptable "by the rules" then often the "trend of the moment" on M5 will contradict M15, H1 and all the others. If we dropped to M1, the trend would change so often it would be very hard to catch a good solid move of any kind.

The reason we use M15 is BECAUSE TREND CHANGES so often. When it does, it gives us good signals we can take advantage of in what others often call "noise."

In addition, we can VERY OFTEN, with experience and learning to use good discretion catch a move almost exactly at that point of change. Often in the area where the 35/50 lines have separated a lot, there are really good moves and signals that can be taken for solid gains.

The trade in question is one of those types of trades. The trend is in the process of changing back SHORT and the entry noted is at a "confluence" of Price Action bars that indicate a short, as well as the S/R of a Round Number and the 35 SMA. In short, almost everything possible "by the rules" is present for a perfect short. THE ONLY thing missing is that the 10 has not yet crossed the 35 or the 50.

The reason for the rule of taking longs or shorts only when p/a and the 10 are above/below the 35/50 lines is to keep newbies out of bad trades, not to keep experienced traders out of potentially great trades. It takes some time to develop that level of experience and discretion.

I have talked at length here in the thread about the "ping pong" area between the 35/50 lines. The more separated they are, the more likely there will be an area of consolidation where a touch of one often means a trade that runs to the other and so on. But, this too is only to be traded with discretion and by those who have more experience with this strategy.

If you look at the chart I have attached you will see some of what I am talking about.

This "ping pong" area is pretty powerful on higher time frames and in the future we'll be talking about it more, but not right now. There are other past of this strategy that can be used to great advantage as well. Long wicks on the Daily charts for example are GREAT areas to use as entries and exits based on S/R at those points.

Not sure if this helps, as it can seem confusing which is why I try to keep the thread focused on the basics only for now, but there is no use at this point to keep those who are growing from posting "more advanced" type of trades. There are already tons of images in the prior 400+ pages from which anyone can learn and grasp the basics.

If there is something you don't understand, I, or someone else here will do our best to explain it.

It seems there is a language disconnect a bit as well. Your last post "seemed" angry. If I am misunderstanding that, I apologize, forums don't always come across correctly.

If it was anger, get over it quick and move on to learning. Anger will never get you what you are looking for, neither will frustration. Learn to put those in the past of who you are or you will be doomed to a never ending cycle of that stuff.

God bless, hope this all helped and good trading to you.
Clay

Hi sopel,

We don't use head and shoulder's patterns on this thread. They're ok, but not any stronger than any other signal and as you say, if price runs up to the line, it means a strong short more than likely. But price could just as easily just be "constrained" by the 10 it's following right now and then waiting for that run up would lose you a good trade.

Using the lines really is stronger. The other patterns people use are OK to know and to use in processing your own decisions to trade, but don't talk about them a lot here as it just confuses this strategy with others and causes more confusion for beginners.

Looks like you're starting to get the concepts though.

God bless

all prices patters are, are support and resistance trades be it a head and shoulders or tea cup etc.

Hi Piotr1,

Took the liberty of using your image and marking it up. FIRST, GET RID of that s/r indicator. As I say in the comments on the chart, I have it, I have used it a lot and it has NEVER added anything of value to this strategy. If you want to use it in YOUR trading, that's fine, but don't post another chart with it here please. No need to create anymore confusion than already exists in trading.

So, let me say this one more time. THE ONLY INDICATORS WE USE ARE THE LINES, period.

If someone, anyone wants to use any other indicator, feel free, but do NOT post a chart here with them on it.

Now, on to your chart my friend. And I hope you don't take the last few sentences personal. It's just that it seems to be a never ending battle to keep that "indicator envy" crap out of here.

Ok,, so I marked up the chart and what I see most is that you are overanalyzing a bit and that probably also comes from trying to use S/R levels that are placed on the chart by another indicator. If you use only the lines, it really DOES become easier as time goes on.

Here is the chart.

god bless,
clay

Thank you, Clay for your answers. I really appreciate the time that you spend on writing.
For me it may be takes 1 -2 hours to write it. That is, probably why, my post looks inappropriately short. And it is why it sounds rude. (Sorry for that).

No more static S/R lines. As I see now your system doesn’t need them, and after analyzing this chart I completely agree with that. Yesterday was my first try of this system on demo during the London session. My first trade become loss and I still thinking, how I should trade at that moment. That is probably why instead of concentrating on the system I started bring up my past experience. Perhaps, I should reread manual againJ.
I agree that it is great idea to post charts at the real time, but I also see a great benefits for everybody if you can post (if you have time ) one chart at the end of the day with your analysis and comments. Reason for that is because, I fill much more confident with this system after learning from you last post. (Still don’t know how you may enter on a trade that is located above number four.)

Good trading to all!
Piotr

Hi Piotr
Eclayf spend his time everyday to post every trade that he placed to help everyone to understand more clearly "The Dance " , you can check it out in past page
Regards
Tuan

Hi Piotr1,

I really do enjoy analyzing charts for those who post them. It helps keep me focuses on the strategy as well and on the basics that make it so strong.

As for posting a single chart. I'm not sure that would help anywhere near as much as doing all the charts that are posted, as much as I humanly can. In addition, as I have explained, I am stretched pertty thin at the moment and wouldn't be able to do a project like that justice.

Keep watching the thread and there will be more of those trades that start in the "ping pong" area. As you see them happen, it will start to make sense to you.

Here are links to some pages where I talk of those types of trades. They are NOT specificly in the rules, but they ARE "by the rules" as for entries based on P/A, confluence, constrainment and so on.

Here is that list. #67 (http://www.forexfactory.com/showpost.php?p=3548107&postcount=67) , #176 (http://www.forexfactory.com/showpost.php?p=3562415&postcount=176) (the dotted lines on the charts are the H1 "equivalent" MAs that represent H1 35/50 lines and the area of "ping pong" on H1 which I used to base the trade on.), #284 (http://www.forexfactory.com/showpost.php?p=3574636&postcount=284) , #289 (http://www.forexfactory.com/showpost.php?p=3576441&postcount=289) . #638 (http://www.forexfactory.com/showpost.php?p=3650578&postcount=638) , #787 (http://www.forexfactory.com/showpost.php?p=3688205&postcount=787) (be sure to use the link back to LeeMonks image so it makes sense.

Hope that helps. Keep in mind that in the next revision of the manual I will take this on in more depth, but not for right now.

God bless and good trading Piotr and I understand the language thing. I speak very fluent Spanish, but it wasn't always that way and the learning process was riddled with challenges, lots and lots of embarrasment and struggle. So, we'll be patient with you here.

Clay

Good morning all (I know its different for everyone, but its morning here )

This is a trade I have just entered.

I was trying to be a little more judicious with my entries this morning, balanced with wanting to get in a trade before a big move..... I am still working on this flaw!

Anyhows, please see chart for entry and comments.

*EDIT*

Walking away from the screen for 10 mins or so. This is a big move and it's hard to sit infront of it

Clay, I hope this many charts on one trade is okay?

I got stopped out for 25pips almost immediatley after posting the last chart. I got greedy! I know I did. I should have taken the 50 or so pips at the close of the inverted hammer/star and if price was going to continue I could have gotten another entry. I see that.

I am thinking about another entry as the 15min 10 is on the RN

Looks good so far Lee. Good entry, good trade management. Use as many charts as you need.

No worries my friend.

God bless,
Clay

Thanks Clay!

I got 25 from it in the end, but got greedy and missed out on another 25....... OR and I am sure this is a question you will like!

Am I greedy to think I was greedy by missing out on the 25 I didnt get?

Can you please comment on the post below for me when you get a chance. It's something that catches me out or causes indecision so many times for me. Even if the answer is to simply stay out of it.

ok no more patterns. i waited till 4 am local time to touch that line (dance trade ). It worked well, but target missed and catched only 40 pips . Retrace killed my trade. Trend is changing at the moment and im out. i'll wait for some clarification.

Just turned on my computer, saw a 35 touch on GU and took it almost at the top. It went well to the bottom, moved my SL at BE+some, but suddenly it went backwards and i got +9 pips on SL

I guess, that mistake was that London hasn't been opened yet and this move backwards was precisely on open. Didn't pay attention to this. I've noticed, that often some unpredictable moves happen on session opening.

Just place a trade that I think it's based on VAILD signal , maybe it's not solid enough , but collected some pips anyway
Thanks Clay for good explanations !
Good trading
P/S : please tell me if size of images is too big
Regards!